ENTERPRENEURAL DEVELOPMENT: A PANACEA FOR YOUTH UNEMPLOYEMENT KunleOkeOloruntegbe (Ph D) Science and Technical Education , AdekunleAjasin University, Akungba-Akoko Being a Lecture presented at the School of Basic Studies, AdekunleAjasin University, Akungba-Akoko
Innovative thinking is the key to becoming a successful entrepreneur. Whether you actually invent a new product or process, or you use creativity to find a better way to market existing products or services, you will need to learn how to think like an inventor.
QUESTIONS FOR CREATIVE THINKING • A. What kind of business would you start if your family would lend you N100000 to get it started? • B. What kind of business would you start if you and two classmates had access to a loan for N200,000? • C. What kind of business could you start if you want to do business with another country? • D. What type of business could you start while still going to school? • E. What type of business could you start using the skills you have now?
F. What type of business could you run while also working in a part time job (to provide the security of a salary while the business grows)? • G. How could you start a business and then later make it into your own franchising business for purposes of expansion? • After developing your business plan you will want to discuss your ideas with the class or an advisor to improve your plan and determine what you learned in the process of preparing a business plan. Now that you are thinking like an entrepreneur you may find these same questions pop up about many different business possibilities as you experience new opportunities in life.
Business plan questions • How can you describe the business...in only one paragraph please? • What is your product, or service? • Who will buy it? • Where should you locate the business? • How can you attract customers? • What is your competition? • How much should you charge for the products or service? • What advice do you need and who can provide it?
How will you organize the managers and/or workers of the business? • How will you split the profits? Who is responsible for the losses? • What should you consider to be able to produce the product and get it to the customer? • How much money is needed to get the business started? • How many customers will you have per month and how much will they buy per month? • How much does it cost to make the product or provide the service? • What are your operating costs? (Include your own salary) • How much money will your business earn each month by selling your product or service?
How much investment will you need to keep the business going until you make a profit? • What is your potential profit per year for Year I, Year II, and Year III? • How much money do you need to borrow to start this business? • How will you make the business grow in the future? • There are other questions you might ask depending on the type of business you have in mind. There are many different formats for a business plan based on what you need for the business of your choice. The point is to start asking yourself questions and then looking for the answers.
Lemonade stand Refreshment stand at local games Child care Hot dog stand Yard care Developing a web page for others Youth community center Shopping service for seniors Pet sitting Delivery services House cleaning service Selling used clothes Jewelry making Catalog sales Temporaries agency Computer service business Travel services Musical group Janitorial services for local businesses Add value to an existing product (packaging, new Marketing local crafts design, new customers, different size) Repair services
WHAT IS PROMOTION? • Promotion is one of the major elements of the marketing mix of the business. Promotion is a form of persuasive communication, or getting others to do what you want them to do. Its function is that of informing consumers about a product or service and influencing them to buy that product or service. There are many different promotional tools that are used by businesses to enhance the image of the product, such as mailings, speeches, presentations, contests, packaging, films, catalogs, coupons, posters, and even endorsements by famous people. Promotion is an important part of a business's strategy in surviving today's competitive marketplace.
Elements of promotional mix • To achieve desired sales results, entrepreneurs must consider all forms of promotion and decide which ones should be used and in what proportion. Naturally, the aim of every small business owner is to get the most from every dollar spent for promotion. The combination of different forms of promotion is called the promotional mix. The makeup of the promotional mix varies with the product being promoted, the nature of the potential customers, the general market conditions, and the funds available.
Class market survey • You can start by surveying one class in the school to determine possible school-based business ideas. (Arrange with the teacher the best time for the survey). You may wish to do the survey by show of hands or redesign the questionnaire for each student to fill out separately. After combining responses for one or more classes, discuss your suggestions for products and services that your school "market" could use.
This form can be of help in starting school-based business A. How many in the class are: Male________ Female_______ B. How many in the class are age 15________, 16__________, 17________, 18__________, 19________, 20________, 20+__________? C. Number in immediate family (including self)? 2__________, 3_________, 4___________, 5_________, 6__________, 7_________, 8+___________ D. Do you work? Yes_________ No__________ E. How many (of the class) like to do each of the following in your spare time? Reading_______, Play music_______, Sports_______, Watch TV________, Drive cars_______, Talk on the phone________, Dance_______, Go for walks__________, Fix things_______, Sew_______, Cook_______, Exercise_______, Crafts_______, Paint or draw_______, Babysit_______, Write stories_______ (Many other ideas can be added here) F. What products or services would you like to be able to purchase at school that cannot currently be bought there?
You face risks every day. You cannot cross the street without some danger that you will be hit by a car. Getting out of bed, driving a car, and opening a business all involve SOME risk. Risk is simply the possibility of damage, injury, or loss.
Like individuals, business owners need to protect themselves against the risks they face. It is important for entrepreneurs to recognize potential risks they face and prepare effective strategies to deal with them. It is also useful for entrepreneurs to design "contingency plans", or alternative courses of action. Contingency plans show that the entrepreneur is sensitive to important risks and is prepared to handle risks as they occur.
WHAT METHODS DO ENTREPRENEURS USE TO CONTROL RISK? • Once entrepreneurs have identified the risks they face, they must decide what to do about them. Some risks are easier to control than others and the actions of the owner will vary with the circumstances faced by individual firms. Most owners control risk by-- • RISK AVOIDANCE (eliminating the risk) is abandoning or refusing to undertake an activity in which the risk seems too costly. • RISK REDUCTION (minimizing the risk) consists of using various methods to reduce the probability that a given event will occur. Although some risks cannot be avoided, most can be appreciably reduced. The primary control technique is prevention, including the use of safety and protective techniques. • RISK TRANSFER means shifting the consequences of a risk to persons or organizations outside your business. The best known form of risk transfer is insurance, which is the process by which an insurance company agrees to pay an individual or organization an agreed upon sum of money for a prospective future loss. • RISK ASSUMPTION, also known as risk absorption or risk retention, involves the planned acceptance of the risk of loss. In some instances, reducing certain risks may be too expensive. Generally, the small business owner will assume risks in which losses that occur will not produce significant financial consequences to the business. Determining the amount of loss that is significant is not a precise science.
Entrepreneurs in action FISH FARMING
HAID DRESSING ONSTRUCTION ENTERPRENEURAL COUPLES
Conclusion • Judging from the large number of youth that roam the street daily looking for non-existent jobs, and with sheer helplessness of our government in combating this monster, it behoves on every youth to take his or her destiny in his or her hand and put the thinking caps to chart a living for himself. There are so many untapped opportunities out there, many uncultivated, partially cultivated but never exhausted lands. Just a little thinking, a little innovation and planning a gold mine is near to where you are. Take this discussion seriously it might be all you need to be successful in life.