R. L. Nkumbwa Copperbelt University

Outline Entrepreneurs Entrepreneurs Their Environment Their Environment And

Entrepreneurs – The New Alchemists Enterprise Enterprise – adventure, effort, endeavour, project, undertaking, scheme, venture, daring, energy, initiative, push. Enterprising Enterprising – adventurous, audacious, bold, daring, active, alert, efficient, energetic, prompt, resourceful, smart, spirited, zealous. Entrepreneur Entrepreneur – person in control of commercial undertaking, one who undertakes a business or enterprise, with a chance of profit or loss.

Leap and the net will appear Julia Cameron Innovation = Creativity x Risk Taking

Five is a magic number: wanted four cornerstones

…… and an entrepreneur

“An entrepreneur is someone who perceives an opportunity and creates an organisation to pursue it” Bill Bygrave (The Portable MBA in Entrepreneurship, 1994)

“An entrepreneur is someone who accepts the risk of acquiring and organising resources to seek opportunities for profit.” David Gough, Entrepreneur and Mentor White Rose Bioscience Forum, York, 6 November, 2002

An entrepreneur is someone who habitually creates and innovates to build something of recognised value around perceived opportunities. Bill Bolton & John Thompson Entrepreneurs – Talent, Temperament, Technique

What are the Characteristics of the Entrepreneur? Perseverance and Determination Perseverance and Determination Ability to take RisksAbility to take Risks Need achieve/Make a DifferenceNeed achieve/Make a Difference Initiative and taking ResponsibilityInitiative and taking Responsibility FocusFocus CreativityCreativity Honesty and IntegrityHonesty and Integrity IndependenceIndependence

What do Entrepreneurs do? They make a significant difference They make a significant difference They create and innovate They create and innovate Spot and exploit opportunities Spot and exploit opportunities Find the necessary resources Find the necessary resources Network Network Show determination in the face of adversity Show determination in the face of adversity Manage risk Manage risk Exercise control over the enterprise Exercise control over the enterprise Be customer oriented Be customer oriented Create CapitalCreate Capital

So basically Entrepreneurs….. to Create to Create Innovate and Innovate and Build Build Take Risks in order…. Take Risks in order….

The ‘Entrepreneur’ Process Diagram 1. Motivation to make a Difference 3. Spotting and Exploting opportunities Overcoming Obstacles 8. Controlling the business 9. Putting the customer first 10. Financial, Social, aesthetic capital 2. Creativity and Innovation Recognition Of Value 4. Finding the required resources 5. Using networks extensively 6. Showing determinatio n in the face of adversity 7. Managing risk Bill Bolton & John Thompson Entrepreneurs – Talent, Temperament, Technique

From “Idea” to “Opportunity” Idea Opportunity Knowledge skills and competency From: Bill Bolton & John Thompson Entrepreneurs – Talent, Temperament, Technique The industrial landscape is already littered with remains of once successful companies that could not adapt their strategic vision to altered conditions of competition. Abernathy, Clark & Kantrow Effective Strategic position Factors critical for market success

Creative idea Implemented Leads to Innovation Enterprise Creativity, Innovation and Entrepreneurship Marketed

What sort of people do you need in a Business Start-up Team? EntrepreneurEntrepreneur Technical InnovatorTechnical Innovator A Technical Delivery SpecialistA Technical Delivery Specialist A Sales personA Sales person A Finance/Admin personA Finance/Admin person

TheBusiness Start-up Team The Business Start-up Team Entrepreneur Delivery Specialist Sales Technical Innovator Finance/ admin

What will they do? Entrepreneur: communicates vision, aims, goals Delivery Specialist: ensures that goods/services are delivered to the customer on time and to spec: the second ‘techie’ Sales Person: goes out and gets business for the company, another great communicator Technical Innovator: the ideas person, comes up with new products Finance/ Admin person: watches the cash and sets up systems From: GSC6001 Entrepreneurship and Business Planning

The Entrepreneur’s World: The Market Business has only two basic functions: Business has only two basic functions: Marketing and Innovation. Marketing and Innovation produce results. All the rest are Costs. Peter F Drucker Management Guru What is Marketing?

MARKETING DEFINED: Marketing is Marketing is ”the management process which identifies, anticipates and supplies customer requirements efficiently and profitably.” Chartered Institute of Marketing

NEEDS, WANTS, DEMAND AND EXCHANGE Market Research Needs  Wants  Demand  EXCHANGEEXCHANGEEXCHANGEEXCHANGE Offers for sale  Product From: GSC6001 Entrepreneurship and Business Planning

The Selling Concept (after Kotler et al (1996) Starting point FocusMeansEnds Factory Existing product Selling & promotion Profits through sales volume

The Marketing Concept (after Kotler et al1996) The Marketing Concept (after Kotler et al 1996) Starting point FocusMeansEnds Market Customer needs Integrated marketing mix Profits through customer satisfaction

The Entrepreneurial Marketing Process: the four + four Is (after Stokes, 2000) Incremental Innovation Identification of target markets Interactive marketing methods Information-gathering through networks Influence of word of mouth Image-building Incentives Involvement

CREATING CUSTOMER VALUE CUSTOMERVALUE PERCEIVEDBENEFITS PositiveNegative Product benefitsProduct benefits Service benefitsService benefits Relational benefitsRelational benefits Image benefitsImage benefits Monetary costsMonetary costs Time costsTime costs Energy costsEnergy costs Psychological costsPsychological costs (After Jobber, 2001) PERCEIVEDSACRIFICE

The Marketing Mix (formerly known as the ‘4 Ps’) A classification of marketing decisions made in terms ofA classification of marketing decisions made in terms ofProductPricePromotionPlacePeopleProcesses Physical evidence

Positioning Yourself in the Market Identify characteristics of target marketIdentify characteristics of target market Identify factors of critical importance to target marketIdentify factors of critical importance to target market Focus all elements of the marketing mix on that marketFocus all elements of the marketing mix on that market

Ten Questions you should be able to answer about your Market (1) 1. What is my target market? 2. What is the size and accessibility of my target market? 3. What is the profile of my target customer? 4. Who are my potential major trade customers? 5. How will my products/services solve my customers’ problems

Ten Questions you should be able to answer about your market (2) 6. How does the customer buying process work? 7. What factors will make customers increase or decrease their buying? 8. What is my USP (Unique Selling Point)? 9. Can I get a major share of a niche market, rather than a small share of a large market? 10. What are the current trends in the market?

Five Questions you should be able to answer about your Competitors 1. Who are my major competitors? 2. Where are my major competitors? 3. What are the strengths & weaknesses of competitors? 4. How loyal are customers to current competitors? 5. Who will be my competitors in one year’s time? - Know your Enemy! - Know your Enemy!

Marketing as a Corporate Function “ Marketing is so basic that it cannot be considered to be a separate function. It is the whole business seen from the point of view of its final result; that is the customer’s point of view.”“ Marketing is so basic that it cannot be considered to be a separate function. It is the whole business seen from the point of view of its final result; that is the customer’s point of view.” –Peter Drucker

Developing a Marketing Strategy: Where are we now? ( with our products/services )Where are we now? ( with our products/services ) Where do we want to be? (marketing objectives, targeting, segmentation analysis )Where do we want to be? (marketing objectives, targeting, segmentation analysis ) How do we get there? ( marketing mix strategies, resources available)How do we get there? ( marketing mix strategies, resources available) How do we ensure we get there? ( control & feedback)How do we ensure we get there? ( control & feedback)

Setting Objectives that are SMART S SpecificS - Specific M MeasurableM - Measurable A AchievableA - Achievable R RealisticR - Realistic T To TimeT - To Time

Developing a New Product/ Service: Stages Idea GenerationIdea Generation Idea ScreeningIdea Screening Concept Development & TestingConcept Development & Testing Business AnalysisBusiness Analysis Product Development & TestingProduct Development & Testing Test TarketingTest Tarketing Commercialisation/Mass ProductionCommercialisation/Mass Production

The Product Life Cycle Time Sales ZMK Stage: Introduction GrowthMaturityDecline Customers: Early adopters Early majority MajorityLaggards

Adoption of an Innovation by different market segments: e.g. calculators (after Jobber, 2001) Sales ZMK Time Engineers, scientists Commercial General public Schoolchildren Innovators Early adopters Early majority Laggards Late majority From: GSC6001 Entrepreneurship and Business Planning

Everything is worth what its purchasers will pay for it Syrus Uncovering unmet customer needs and problems Uncovering unmet customer needs and problems Match technological capabilities to solving those problems Match technological capabilities to solving those problems Move projects through enterprise and into the market Move projects through enterprise and into the market The Role of Marketing - Summary