Ensuring Start-ups Start Green 1

NETFUND GREEN INNOVATIONS AWARDS Ensuring Start-ups Start Green

CATEGORY WINNER’S TRAINING ON ENTREPRENEURSHIP 17TH SEPTEMBER, 2014

Phyllis Engefu OmbonyoDirector, Business Development

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CONTENTS/OUTLINE• Setting the Pace• Definitions – Who/What is an

entrepreneur(ship)?• Examples of Local and International

Entrepreneurs• Why start a business?• Qualities of Entrepreneurs• Factors to Consider when choosing a

business• Sources of Ideas• Getting into action• Examples of Nature-based enterprises• Reasons for Business Failure/Challenges• Inspirational Video – Richard Branson

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SETTING THE PACE• Introductions (Name, institution & brief about your

innovation)• Participants’ Expectations• Ground Rules• Roles and responsibilities

– Timekeeper, – Energizer, – Spiritual leader and – Chairperson (to recap tomorrow)

• Opening Warm-up: https://www.youtube.com/watch?v=cjapPH6wyGA

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PANEL DISCUSSION• What is Entrepreneurship?• Who is an Entrepreneur?

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ENTREPRENEURSHIP• The process of starting a business or an

organization. The entrepreneur develops a business model, acquires the human and other required resources, and is fully responsible for its success or failure.

• Entrepreneurship operates within an entrepreneurship ecosystem; elements outside that are conducive to, or inhibitive of, the choice of a person to become an entrepreneur, or the probabilities of his or her success following launch

• An entrepreneur is an individual who organizes or operates a business or businesses

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ENTREPRENEURSHIP

“Creative Destruction" • To replace in whole or in part inferior

offerings across markets and industries; simultaneously creating new products and new business models.

• Creative destruction therefore leads to economic growth.

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LOCAL AND GLOBAL ENTREPRENEURS

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WHY DO PEOPLE START BUSINESSES? What

motivates Entrepreneurship?

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WHAT MOTIVATES ENTREPRENEURSHIP? Contd.

According to Richard Branson,

"a business is simply coming up with an idea to improve other people’s lives and, hopefully, when you have done that, more money will come in than goes out.”

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What are the Essential Qualities of Entrepreneurs?

Innovator — a generator of new ideas and business processes. Leadership, management ability, and team-building Committed , Informed, Motivated, Good manager, In control, Consistent, Flexible, High need for achievement, Propensity to take risk

What Other Qualities?

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GENERATING BUSINESS IDEAS

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FACTORS TO CONSIDER WHEN CHOOSING A BUSINESS IDEA

• Unique selling point• Market/Customers/Demand• Competition/Identify a Niche• Capital/Total Project Cost (Assets +WC)• Return on Investment/Profit• Raw materials• Skills Required- Are they specialized?• Govt. Policies and regulations• Location: Proximity to resources/inputs, customers etc• Environmental Factors

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SOME SOURCES OF IDEAS• Family & (or) Friends

– Donald Trump, American real estate entrepreneur, mentioned obtaining his ideas from his father.

– If it weren't for Steve Jobs' good friend Steve Wozniak, there would be no Apple Computer today

• Observation: Look at all the things that bug you.– Joel Mwale was disturbed by the lack of clean water in district

hospitals hence invested SkyDrop – bottling clean water from rain water

• Tap your Talents – Churchill’s interest was in drama/comedy and that gave the birth of laugh industry

• Travel – Opens up your eyes to potential ideas. • Examine old mouse traps –then build a better one• The Internet

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POSSIBLE OPPORTUNITIES…GETTING INTO ACTION!

• Buying an existing business and expanding its scale of operation or changing certain aspects of its operations.

• Franchising an existing business or franchising your own business.

• Linkages to existing and upcoming markets• Exploitation of the natural resources in your areas like

cash crop farming, ecotourism,• Leveraging on your talents• Waste: Turning waste materials into business e.g.

animal wastes into biogas or manure

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EXAMPLES OF NATURE-BASED ENTERPRISES

• Beekeeping, • Eco-tourism, • Livestock rearing, • Farm woodlots for firewood, timber and charcoal

briquettes, • sustainable energy solutions-Biogas, solar energy, • Horticulture farming, tree and fruit nurseries,

reforestation• Harvesting grass from the forest.• Sustainable collection of firewood from the forest• Harvesting and selling of medicinal plants.

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GROUP WORK - CASE STUDY (20 mins)

Divide the Team in two groups

Group I – Study the Story of Terry Mungai (Ashley’s Beauty Vampire - salons & College) and

Group II – Joel Mwale (Sky drop Enterprises)

Questions to discuss

1. What are some of the remarkable qualities of these innovators?

2. What are some of the challenges that they may have experienced.

Duration: 12 Minutes

Nominate a secretary to present; each presenter takes 4 mins.

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CASE STUDIES – ASHLEY’s/Terry & Skydrop, facebook/Joel

“I Work Hard” From a Van Sales Girl To Creating More Than 240 Jobs She is a common name in Kenya having started her own beauty empire dubbed Ashleys Kenya. But did you know successful entrepreneur Terry Mungai was once a van sales girl selling bakery products, a secretary or an insurance agent?

Nonetheless, how did Ashleys Kenya come to be?

“There was one or two professional hair dressing outlets in Nairobi but their staff did not take their jobs very professionally,” she once told The Star adding that as a marketer she saw an opportunity and run with it.

“I sensed a niche that needed to be tapped where I would make the executive man and woman enjoy their visits to the salon and barber shop,” she is quoted in the past interview.

But it’s in her recent interview with BBC where she reveals how hard it was to get the capital to start her own business.

“When we were starting out, if you were a woman and you went to the bank for a loan, they wanted to know who you were married to and whether you had permission to be in business…….But now all that has changed. You are considered an entrepreneur,” she says.

Today, she basks in the glory of her own success while running a chain of high-end salon and beauty shops, a training institute and a license for the Miss World Kenya and has organised the beauty pageant for over a decade

“Just seeing lives that have been transformed because I have had the fortune of bigger blessings, gives me a lot of joy,”

But her journey has not been a smooth sailing. In a past interview with How We Made it in Africa, the successful entrepreneur talks of the workforce struggles she has had to endure in the past.

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WHY DO BUSINESSES FAIL?

• Choking competition & failure to adjust to changing environment (give local examples)

• Poor business location• Poor business management and leadership• Poor quality products/services• Natural calamities• Un-informed costing and pricing of products

/services.• Continued business losses

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INSPIRATIONAL VIDEO FOR ENTREPRENEURS

Watch Either

Be willing to take risks:

https://www.youtube.com/watch?v=8NxDO6fA5rU

OR

Richard Branson (Virgin Atlantic Boss) on entrepreneurship (motivation, challenges etc)

https://www.youtube.com/watch?v=VH35Iz9veM0

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SUMMARY OF KEY AREAS• An entrepreneur is someone who operates/organizes a

business. This may also be termed as “creative destruction” where the entrepreneur offers better products/services that challenge the status quo.

• Our motivation to start business should be first, to improve lives, then later to generate income

• Entrepreneurs are innovators with strong management and leadership skills.

• Before starting a business, consider the product, price, market, competition, resources and their sources etc.

• Some sources of ideas include acquaintances, talents and issues that disturb you.

• A possible way of starting a business is purchasing an existing one or franchising.

• Businesses may fail due to a failure to adjust to the changing environment.

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OPEN DISCUSSIONS

Thanks for listening! Phyllis.ombonyo@netfund.go.ke