TRAINING OF TRAINERS (TOT) FOR UWEZO FUND MANAGEMENT COMMITTEE ON BUSINESS IDENTIFICATION AND SELECTION MODULE

Session outline 1.Discuss the traits of a good entrepreneur 2.Generate viable business ideas 3.Analyze and select business opportunities

Traits/characteristics of a good entrepreneur An entrepreneur must have soft skills or personal attributes that enhance an entrepreneur's interactions, job performance and success prospects, these traits are interpersonal and broadly applicable. Examples: – Opportunity seeking – Persistence – Commitment to work contract – Demand for quality and efficiency – Risk taking – Goal setting – Systematic planning and monitoring – Information seeking – Persuasion and networking – Self-confidence

How to generate viable business ideas Sources of information on business ideas include: Magazines Newspapers Observations Mass media Shows Seminars/ training From friends and relatives Market research reports

Types of businesses in the MSE sector 1. Examples of sub-sectors in manufacturing: Textile and garment Leather and leather products Food processing and beverage Metal works and Engineering Woodworks including furniture and ornaments service Plastics Chemical and detergents Ceramics and pottery

Types of businesses…(2) 2. Examples of sub-sectors in construction Building materials Mining works Cobble stone 3. Examples of sub-sectors in trade Wholesale of domestic products Retailing Raw material supply

Types of businesses…(3) Examples of sub-sectors in the service industry: Transport service (Bodaboda, Bicycles, motor cycles, matatus) Cafes and restaurants Store service- containers/rooms for CC TVs structured cabling, masonry Tourism/Tour guides Canning/packaging service Project engineering service- Installations e.g. CC TVs structured cabling, masonry Maintenance service Hair and beauty salon Electronics software development Internet café Decoration

Types of businesses…(4) Examples of sub-sectors in agriculture: Modern livestock raring Bee production Poultry Modern forest development Vegetables and fruits Modern irrigation Animal food processing

How to generate business ideas Identify a need in the community: people usually have many unsatisfied needs. Conduct a survey on the location where you want to establish your business and talk to potential customers to reveal any gaps in that market. Market research: Conduct a market survey to identify business opportunities existing in the market. People may need new product/services or existing ones could have several weaknesse These are good opportunities for you.

How to generate business ideas…(2) Brainstorming: Sit in a group and try to think of as many possible businesses as possible using the ‘freewheel ’policy. Take time and digest all the suggested ideas as a basis for making the final decision on the one most suitable for you. Creativity: Look at things in a new way and combine two or more ideas in a new way, such as, one stop shopping spots for customers e.g. a restaurant and a salon combination. Hobbies: generate business ideas from your personal hobbies and discussions with friends Complaints: Listening to complaints of customers so that you improve an existing business.

Process for generating Business Ideas Think of as many ideas as possible Go outside, look and listen. Always analyse ideas carefully before finally selecting which ones to implement. Be simple Start small. “If you want to go somewhere start small”

Analyze and select business opportunities Factors to consider in determining a viable business Profitability Location Financial requirements Skills and expertise Legal requirements Infrastructure Technology Market potential Raw materials

SWOT Analysis A SWOT analysis helps business owners to assess their Strengths and Weaknesses in the context of Opportunities and Threats. A SWOT Analysis aims to match (internal) business resources with the (external) market environment by: Taking advantage of internal Strengths; Adopting actions to eliminate or minimize internal Weaknesses; Leveraging Opportunities in the market; Limiting exposure to outside Threats.

Thank you for participating. Any questions?