FOUNDATIONS OF ENTREPRENEURSHIP CLASS ONE: INTRODUCTION TO CLASS & TO COURSE Elikem Nutifafa Kuenyhia Management Consultant & Corporate Lawyer

Agenda For Class One Introduce one another. Set ground rules & expectations. Elect Class Captain. Introduce Course. Present Semester Schedule including class outlines and speakers. Explain Assignments. Give you opportunity to ask questions

Class Individual Introductions Name. Major. Employment & Role. Entrepreneurial Experience? Which entrepreneur you admire and why. Expectations of class. Best class taken at GIMPA till date

My Background Corporate Lawyer, specialise in venture capital and private equity transactions Management Consultant focused on nurturing and developing fast growing businesses Entrepreneur: Start up team of Standard Trust (now UBA) Bank, Run & manage own business. (Micro) Venture Capital Investor through O & B Investments. Advise entrepreneurs. Academic?? & Textbook Author??? – Kuenyehia & Entrepreneurship (very early draft)

My Background (cont’d) Serve on the boards of MET Insurance, Chase Petroleum& Creativehub. Recipient of ‘2006 Young Professional of the Year Award’ (Newmont /Millenium Excellence Foundation) Clients include International Finance Corporation (IFC), Development Bank of South Africa, Australian High Commission, Johnson & Johnson, MET Life.

My Education MBA (Entrepreneurship, Marketing & Finance), Kellogg School of Management, Northwestern University. USA. MA (Jurisprudence) University of Oxford. England. BA (Jurisprudence), University of Oxford. England. Upper Second Class. A-level: 4 A’s from Achimota School. O-level: Distinction from Achimota School. Common Entrance: 283/400. Ridge Church School.

My Passions Entrepreneurs. Successful ones! African Art. Travel Food. Knowledge – acquisition and dissemination.

The Rest of the Team Kwabena Asiedu Research Assistant, Kuenyehia on Entrepreneurship

Ground Rules & My Expectations ACTIVE participation in Class. ALWAYS read assigned chapters and articles. ATTEND every class. Participate in team work. Mobile Phones on Silent or Off. Punctuality every time. [Counts towards class participation grade] ONLY One conversation a time in class. CHALLENGE my ideas. Respectfully!

Ground Rules & My Expectations (cont’d) Be Polite to Speakers. Ask them insightful questions. Have fun.

Elect Class Captain Get Nominated OR Nominate yourself OR Nominate Someone Vote!

Objectives of Course Introduce the key elements of entrepreneurship. Introduce students to the discipline of entrepreneurship generally in Ghana & globally. Provide budding entrepreneurs with tool kit to launch and sustain entrepreneurial ventures.

My Personal Vision for the Class To be the ‘best’ class that each and everyone of you has ever taken Challenge you to challenge yourself. You contribute to my quest to educate myself in the area of entrepreneurship. You provide me with examples for KOE and also criticise (constructively) KOE.

The Soul of the Course Entrepreneurship involves: Acquiring ideas and identifying high-potential opportunities Gathering resources (talent & capital) Creating a unique brand Planning a well laid out business plan

……etc etc Just a few examples…. Starbucks Travel King Ghana Home Loans Databank Financial Services BusyInternet SOFT Tribe Multi-media Broadcasting Company Limited Farmer George ……etc etc

Resources Scarborough & Zimmerer Kuenyehia On Entrepreneurship (KOE) www.kuenyehia.com [as we progress through the class] Speakers Assigned Readings

Class Two The Entrepreneur & The Entreprenuerial mindset Case: The King of Travel: Pak Wo Shum Proposed Speaker : Pak Wo Shum

Class Three Idea Generation and Opportunity Analysis Build or Buy? Case: Triumphant entry into Ghana: Standard Trust Proposed Speaker: Ken Ofori-Atta

Class Five Legal and Regulatory Consideration Corporate Governance and Ethics Proposed Speaker: Stanley Amartefio

Class Four Seminar 1: Idea Generation and Opportunity Analysis Proposed Speakers: Ellis Atekpe Mr. Kofi Ababio (KAS) Tettee Antio, BSL/Soft Tribe J.E. Allotey-Pappoe, Business Ghana Jasmine Shangari, Farmer George

Class Six Acquiring and Managing Financial Resources Article: The Ghana Venture Capital Trust Act 2004: A good shot in the dark? Kuenyehia, Ghana Business Journal, Nov 2003

Class Seven Attracting and Managing Human Capital Operational Issues Case: Starbucks

Class Eight Seminar 2: Attracting and Managing Human Resource Capital Proposed Panelists: Asuma Banda Ellen Hagan, E’lain Services Ken Ofori-Atta, Databank Kwabena Obeng Ansong

Class Nine Building and Developing a Brand Case: Its all about You: Building a brand from scratch

Class Ten The Business Plan Planning for venture maturity: Expansion, Restructuring, Insolvency, Bankruptcy and Exit Strategies

Class Eleven Seminar 3: Entrepreneurial Finance and The Business Plan Proposed Panelists: Edmund Poku Kekeli Gadzekpo Daniel Asiedu, COO, Zenith Bank

Class Twelve Finale: Bringing it all together

Grading & Assignments Class Participation: 10% Active participation. Attendance. Punctuality. Individual Case Study Assignment: 30% Real Life case study: Write a case on an existing entrepreneur and his/her business. Using concepts developed in class, evaluate the process of development of the venture from idea to profits (or losses). Final Exam: 60% 4 essay type questions.

Introduction to Entrepreneurship History and Development of Entrepreneurship - Entrepreneurship evolved from French word “entreprendre” meaning “to undertake” - Other referrals include middleman, director of resources, tax contractor -Richard Cantillon maintains entrepreneurs as middlemen in his postulation of agents of economy (landowners, entrepreneurs, hirelings - In mid 20th century definition of entrepreneurship were based on economic situations

Some Definitions An entrepreneur is ‘a necessary destabilising force bringing economic growth through the disequilibruim of constant change and innovation’. -Joseph Schumpeter ‘Individual who undertook formation of an organisation for commercial purposes’. - Adam Smith ‘It is possessing the know-how to find, marshal and control resources (often owned by others) - Timmons

My Definition ‘Is the process of risking resources based on an idea (or series of ideas) to develop the idea or ideas into goods and/or services that people perceive as valuable and are willing to pay for, in such a way as to maximise profit for the enterprise risking the resources’

Entrepreneurship as a process Entrepreneurial process begins with an idea which develops into an opportunity or vice-versa Idea and opportunity are intertwined by size of willing patronisers Key resources risked include time, human and capital resources One Cycle Entrepreneurship vs Repeated Cycle

Entrepreneurship as a state of mind or series of attributes Entrepreneurship is also a characterisation of attributes that enable people to exploit opportunities for financial reward. -Motivation factor is the individual’s state of mind Entrepreneurship as a pattern of behaviour Ability to build a vision from nothing- Timmons Complementing one’s skills by building a venture team

Forms of entrepreneurship Social Entrepreneurship Creating social change through an enterprise Enterprises include non-profit organizations and businesses set up with a social purpose Intrapreneurship Formation of new idea within an existing organisation Entrepreneurial concept belongs to the organisation and not the intrapreneur. Financial rewards also go to the company (Intrapreneur’s reward is limited) Examples include Google (3M), MET Insurance (MET2U), etc.

Forms of entrepreneurship (cont’d) Extrapreneurship Break off from existing company New company may carry similar idea from parent company Example is Strategic African Securities (SAS) which broke off from Databank in 1994 Opportunity entrepreneurship vs. Necessity entrepreneurship Opportunity entrepreneur develops an idea to exploit an existing opportunity Necessity entrepreneurs result from lack of alternatives Entrepreneur vs. Businessman All entrepreneurs are businessmen but not all businessmen are entrepreneurs A Business man establishes a business for personal goals while an entrepreneur establishes an enterprise for profit and growth –Beaver and Jenkins

Evolution of entrepreneurship in Ghana Entrepreneurship began in before the arrival of the Europeans Europeans were also entrepreneurs as they risked resources to identify trading opportunities in Ghana. Post independence witnessed the introduction of a mixed economy in Ghana. Nkrumah’s Government encouraged private enterprise The NLC government also supported local entrepreneurs when it published in 1968, ‘The Promotion of Ghanaian Business Enterprise’ Busia’s government was the first to extensively draw up policies and establish bodies to aid entrepreneurs Rawlings Government introduced ERP and SAP Kufour’s government is dedicated to making the private sector the engine of growth in the economy. Policies aimed at encouraging entrepreneurship can be found in ‘KOE’

Role of entrepreneurship in development of a country’s economy Creates jobs Drives economic growth Frees up states resources Fosters competition Fosters innovation Increases productivity Provides a tax base for government

Challenges facing Ghanaian Entrepreneurs Access to finance Low incomes and corresponding low savings culture Little initiative by banks to be creative Inability to properly evaluate and price entrepreneurial credit Unfriendly government machinery Political and economic instability Access to information

Factors favouring entrepreneurship Political stability Macro-economic stability Secure property rights Ease of starting a business Free flow of information The rule of law and mechanism for contract enforcement Access to finance Size of the market in terms of numbers and income levels Regulation of businesses

Institutions that help entrepreneurship to thrive An independent central bank An independent judiciary An independent media and easy access to credible information Neutral and professional army or security forces

Why become an entrepreneur? Most graduate students take regular executive or civil service career paths while Some, after a few years of experience quit to start their own enterprise or buy one. Appeal for joining ‘Corporate Ghana’ or civil service: More security Certainty of income Greater training opportunities Lower levels of stress Smaller personal risk Responsibility Autonomy & desire to control one’s own destiny ....etc

Overview of entrepreneurial cycle: four(4) stages of entrepreneurship Identification of opportunities Acquiring resources Implementing plan to take advantage of opportunity Harvesting the opportunity

Sedina Attionu: Necessity entrepreneur? Case Study Sedina Attionu: Necessity entrepreneur?

The End Questions?

k.asiedu@beekmansolutions.com elikem@kuenyehia.com For further information: k.asiedu@beekmansolutions.com elikem@kuenyehia.com