RIFT VALLEY UNIVERSITY

FACULITY OF HEALTH SCIENCE

INDIVIDUAL ASSIGNMENT

COURSE TITLE: ENTREPRENUERSHIP

COURSE INSTRUCTOR: Asegdew

Notice : This is the first assignment for freshman Health Science students. It will have maximum of 20
mark . Read chapters one and two of the Module which is the focus area of this assignment

1.your handwriting must be legible

2.Make your answer concise

3.you are expected to submit the hardcopy of your assignment for the Department of Business
Management between May 17 and 26/2020 either in person or sent through other person .

4.Don`t forget to attach receipt that shows your second semester tuition status.

Points to be discussed

Name________________________ Department _____________________ Group________ ID_______

1.Define entrepreneurship from the perspectives of Economists ,Psychologists and capitalists

entrepreneurship is the process and entrepreneur

1. Entrepreneurship is the process of identifying opportunities in the market place, arranging the
resources required to pursue these opportunities and investing the resources to exploit the
4 opportunities for long term gains. It involves creating incremental wealth by bringing together
resources in new ways to start and operate an enterprise.

2. Entrepreneurship is the processes through which individuals become aware of business ownership
then develop ideas for, and initiate a business.

3. Entrepreneurship can also be defined as the process of creating something different and better with
value by devoting the necessary time and effort by assuming the accompanying financial, psychic and
social risks and receiving the resulting monetary reward and personal satisfaction. In this case an
individual should come up with something different and better in order to the named as entrepreneur.

4. Entrepreneurship is the art of identifying viable business opportunities and mobilizing resources to
convert those opportunities into a successful enterprise through creativity, innovation, risk taking and
progressive imagination. Entrepreneurship is a practice and a process that results in creativity,
innovation and enterprise development and growth. It refers to an individual’s ability to turn ideas into
action involving and engaging in socially-useful wealth creation through application of innovative
thinking and execution to meet consumer needs, using one’s own labor, time and ideas. Engaging in
entrepreneurship shifts people from being “job seekers” to “job creators”, which is critical in countries
that have high levels of unemployment. It requires a lot of creativity which is the driving force behind
innovation

2.Describe the three form entrepreneurship

1. The individual entrepreneur:

is someone who started; acquired or franchised his/her own independent organization.

2. Intrapreneur: An Intrapreneur is a person who does entrepreneurial work within large organization.
without the blessing of their organizations.
3. The Entrepreneurial Organization: An organization that creates such an internal environment is
defined as entrepreneurial organization.

3.Mention at least five roles of entrepreneurs in the economic development

1) Improvement in per capita Income/Wealth Generation: Entrepreneurs play a vital in the economic
development of a region.

2) Generation of Employment Opportunities: By creating a new business enterprise, entrepreneurs

generate employment opportunities for others.

3) Inspire others Towards Entrepreneurship: The team created by an entrepreneur for his new
undertaking often provides the opportunity for the employees to have a first-hand experience of getting
involved in an entrepreneurial Venture.

4) Balanced Regional Development: Entrepreneurs help to remove regional disparities in economic

development.

5) Enhance the Number of Enterprise: When new firms are created by entrepreneurs, the number of
enterprises based upon new ideas/ concepts/ products in a region increases. also facilitates the entry of
new firms specializing

6) Provide Diversity in Firms:

7) Economic Independence:
8) Combine Economic factors:

9) Provide Market efficiency:

10) Accepting Risk:

1 1) Maximize Investor’s Return:

4.Mention the two broad skills required for entrepreneurs that enable them to change idea into
reality.Give specific example for each .Are this skills inborn(natural) or are they acquired(learned) .argue

I) General Management Skills: These are skills required to organize the physical and financial resources
needed to run the venture. Some of the most important general management business skills are:
 Strategy Skills – An ability to consider the business as a whole, to understand how it fits within its
market place, how it can organize itself to deliver value to its customers, and the ways in which it does
this better than its competitors.

 Planning Skills – An ability to consider what the future might offer, how it will impact on the business
and what needs to be done to prepare for it now.
 Marketing Skills – An ability to see past the firm’s offerings and their features, to be able to see how
they satisfy the customer’s needs and why the customer finds them attractive.

 Financial Skills – An ability to manage money; to be able to keep track of expenditure and to monitor
cash-flow, but also an ability to assess investments in terms of their potential and their risks.

 Project Management Skills – An ability to organize projects, to set specific objectives, to set schedules
and to ensure that the necessary resources are in the right plat of the right time.

 Time Management Skills – An ability to use time productively, to be able to priorities important jobs
and to get things done to schedule.
II) People Management Skills: Businesses are made by people. A business can only be successful if the
peoples who make it up are properly directed and are committed to make an effort on its behalf. An
entrepreneurial venture also needs the support of people from outside the organization such as
customers, suppliers and investors. To be effective, an entrepreneur needs to demonstrative a wide
variety of skills in the way he/she deals with other peoples. Some of the more important skills we might
include under this heading are:
-Communication Skills – An ability to use spoken and written language to express ideas and inform
others.
-Leadership Skills – An ability to inspire people to work in a specific way and to undertake the tasks that
are necessary for the success of the venture.
-Motivation Skills – An ability to enthuse people and get them to give their full commitment to the tasks
in hand. Being able to motivate demands an understanding of what drives people and what they expect
from their jobs.
-Delegation Skills – An ability to allocate tasks to different people. Effective delegation involves more
than instructing. It demands a full understanding of the skills that people possess how they use them and
how they might be developed to fulfill future needs.
-Negotiation Skills – An ability to understand what is wanted from a siturations, what is motivating
others in that situation and recognize the possibilities of maximizing the outcomes for all parties.
5.List the the five main stages of business opportunity identification and evaluation processes

step1: Opportunity or problem Recognition: A person discovers that a new opportunity exists
or a problem needs resolution.
Step2: Immersion: the individual concentrates on the problem and becomes immersed in it.

Step 3: Incubation: the person keeps the assembled information in mind for a while. the information is
simmering it is being arranged into meaningful new patterns.
Step 4: Insight: the problem-conquering solution flashes into the person’s mind at an
unexpected time, such as on the verge of sleep, during a shower, or while running. Insight is also
called the Aha! Experience.
Step 5: Verification and Application: the individual sets out to prove that the creative solution
has merit.

6.What is business plan ? Summarize its main objective.

A business plan is a road map for starting and running a business. It provides information about
the various functional requirements (marketing, finance, operations and human resources) for
running a business.
A business plan is the blueprint of the step-by-step procedure that would be followed to convert a
business idea into a successful business venture. A business plan first of all identifies an
innovative idea, researches the external environment to list the opportunities and threats,
identifies internal strengths and weakness, assesses the feasibility of the idea and then allocates
resources (production/operation, finance, human resources ) in the best possible manner to make
the plan successful:.
The objectives of a business plan are to:
 Give directions to the vision formulated by entrepreneur.
 Objectively evaluate the prospects of business.
 Monitor the progress after implementing the plan.
 Persuade others to join the business.
 Seek loans from financial institutions.
 Visualize the concept in terms of market availability, organizational, operational and
financial feasibility.
 Guide the entrepreneur in the actual implementation of the plan.
 Identify the strengths and weakness of the plan.
 Identify challenges in terms of opportunities and threats
 Clarify ideas and identify gaps in management information about their business,
competitors and the market.
 Identify the resources that would be required to implement the plan.
 Document ownership arrangements, future prospects and projected growths of the
business venture.

7.Mention at least four approaches of business idea generation.

A. A. Learn from successful business owners

b. Draw From Experience
C. Survey Your Local Business Area.
D. Scanning Your Environment
8.Define creativity and describe steps involve in the creativity process

Creativity is defined as the tendency to generate or recognize ideas, alternatives, or possibilities

that may be useful in solving problems, communicating with others, and entertaining ourselves
and others.
Creativity is the ability to come up with new idea and to identify new and different ways of
looking at a problem and opportunities.
It is a process of assembling ideas by recombining elements already known but wrongly assumed
to be unrelated to each other.

Steps in the Creative Process

Step1: Opportunity or problem Recognition: A person discovers that a new opportunity exists
or a problem needs resolution.
Step2: Immersion: the individual concentrates on the problem and becomes immersed in it. He
or she will recall and collect information that seems relevant, dreaming up alternatives without
refining or evaluating them.
Step 3: Incubation: the person keeps the assembled information in mind for a while. He or she
does not appear to be working on the problem actively; however, the subconscious mind is still
engaged. While the information is simmering it is being arranged into meaningful new patterns.
Step 4: Insight: the problem-conquering solution flashes into the person’s mind at an
unexpected time, such as on the verge of sleep, during a shower, or while running. Insight is also
called the Aha! Experience.
Step 5: Verification and Application: the individual sets out to prove that the creative solution
has merit. Verification procedures include gathering supporting evidence, using logical
persuasion, and experimenting with new ideas.

9.Discuss four possible area of innovation

A. New product: A new product can be developed through new or existing technology. The
new product may offer a radically new way of doing something or it may simply be an
improvement on an existing item. The new product must offer the customer an advantage if it
is to be successful.
B. New Services: A service is an act which is offered to undertake a particular task or solve a
particular problem.
C. New Production Techniques: Innovation can be made in the way in which a product is to be
manufactured. A new production technique should allow the end user to obtain the product at
a lower cost, or a product of higher quality or better service in the supply of the product.
D. New Way of Delivering the Product or Service to the Customer: Customer can only use
product/service they can access. A common innovation is to take a more direct routine by
cutting out distributors or middlemen