R. L. Nkumbwa Copperbelt University

1. Enterprise & Entreprenuarship for Innovators R. L. Nkumbwa Copperbelt University

2. Outline • Entrepreneurs And • Their Environment

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

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

5. Five is a magic number: wanted four cornerstones

6. …… and an entrepreneur

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

8. “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

9. 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

10. What are the Characteristics of the Entrepreneur? • Perseverance and Determination • Ability to take Risks • Need achieve/Make a Difference • Initiative and taking Responsibility • Focus • Creativity • Honesty and Integrity • Independence

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

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

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

14. From “Idea” to “Opportunity” Idea From: Bill Bolton & John Thompson Entrepreneurs – Talent, Temperament, Technique Factors critical for market success Knowledge skills and competency Effective Strategic position 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 Opportunity

15. Implemented Creative idea Enterprise Marketed Creativity,Innovationand Entrepreneurship Leads to Innovation

16. What sort of people do you need in a Business Start-up Team? • Entrepreneur • Technical Innovator • A Technical Delivery Specialist • A Sales person • A Finance/Admin person

17. TheBusiness Start-up Team Entrepreneur Finance/ admin Delivery Specialist Technical Innovator Sales

18. From: GSC6001 Entrepreneurship and Business Planning What will they do? Entrepreneur: communicates vision, aims, goals Finance/ Admin person: watches the cash and sets up systems Technical Innovator: the ideas person, comes up with new products 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

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

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

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

22. The Selling Concept(after Kotler et al (1996) Starting point Focus Means Ends Profits through sales volume Existing product Selling & promotion Factory

23. The Marketing Concept(after Kotler et al1996) Starting point Focus Means Ends Profits through customer satisfaction Customer needs Integrated marketing mix Market

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

25. CREATING CUSTOMER VALUE Positive Negative CUSTOMER VALUE PERCEIVED BENEFITS PERCEIVED SACRIFICE • Product benefits • Service benefits • Relational benefits • Image benefits • Monetary costs • Time costs • Energy costs • Psychological costs (After Jobber, 2001)

26. The Marketing Mix(formerly known as the ‘4 Ps’) • A classification of marketing decisions made in terms of • Product • Price • Promotion • Place • People • Processes • Physical evidence

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

28. 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

29. 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?

30. 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!

31. 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.” • Peter Drucker

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

33. Setting Objectives that areSMART • S- Specific • M - Measurable • A- Achievable • R- Realistic • T - To Time

34. Developing a New Product/ Service: Stages • Idea Generation • Idea Screening • Concept Development & Testing • Business Analysis • Product Development & Testing • Test Tarketing • Commercialisation/Mass Production

35. Sales ZMK Time Growth Maturity Decline Stage: Introduction Customers: Early adopters Early majority Majority Laggards The Product Life Cycle

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

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