By the end of this topic, student should be able to;
Describe the characteristics of a successful entrepreneur
Assess the entrepreneurial activities conducted by Tanzania entrepreneurs
Evaluate their own ideas for an entrepreneurial endeavour in their community
Explain internal motivating factors
Discuss external motivating factors
Discuss the importance of motivation
KEY TERMS AND CONCEPTS.
Meaning Of Entrepreneurship.
The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit. The most obvious example of entrepreneurship is the starting of new businesses.
In economics, entrepreneurship combined with land, labor, natural resources and capital can produce profit. Entrepreneurial spirit is characterized by innovation and risk-taking, and is an essential part of a nations ability to succeed in an ever changing and increasingly competitive global marketplace
The characteristics of successful entrepreneurs.
Success in entrepreneurship isn’t just about your idea or your money. Plenty of people have interesting ideas or a lot of cash to throw around — and they never quite manage to find success in their ventures.
If you want to be an entrepreneur, take a step back and evaluate whether or not you have the following characteristics. Have the gut to begin and implement an idea. The following are characteristics that makes entrepreneurs stand out from the rest.
Self Motivation is one of the most important traits of entrepreneur. When you want to succeed, you need to be able to push yourself. You aren’t answerable to anyone else as an entrepreneur, and that sometimes means that it’s hard to get moving without anyone to make you. You need to be dedicated to your plan and keep moving forward — even if you aren’t receiving an immediate paycheck.
2. Understand What You Offer
As an entrepreneur, you need to what you are offering in the market and how it fits into the market. Whether it’s a product or a service, you need to know where you fit in. That means you need to know when it’s time to tweak things a little bit. This also includes knowing whether you are high end, middle of the road or bargain. Being able to position yourself and then adjust as needed is an important part of entrepreneurship.
3. Take Risks
An entrepreneur must have the audacity to take risks. Successful entrepreneurs know that sometimes it’s important to take risks. Playing it safe almost never leads to success as a business owner. It’s not about taking just any risk, though. Understanding calculated risks that are more likely to pay off is an important part of being an entrepreneur. You’ll need to be willing to take a few risks to succeed.
4. Know How to Network
Networking is having connections and contacts with people who you are in the same field. Knowing how to network is an important part of entrepreneurship. Sometimes who you know is an important part of success. Being able to connect with others and recognize partnership opportunities can take you a long way as a business owner. Figure out where to go for networking opportunities and make it a point to learn how to be effective.
5. Basic Money Management Skills and Knowledge
We often think of successful entrepreneurs as “big picture” people who don’t worry so much about managing the day to day. And it’s true that you might have an accountant or other team members to help you manage the business. However, if you want to be successful, you should still have basic money management skills and knowledge. Understand how money works so that you know where you stand, and so that you run your business on sound principles.
To a certain degree, you need to be flexible as an entrepreneur. Be willing to change as needed. Stay on top of your industry and be ready to adopt changes in processes and product as they are needed. Sometimes, you also need flexibility in your thinking. This is an essential part of problem-solving. You want to be able find unique and effective solutions to issues.
Finally, successful entrepreneurs are passionate. They feel deeply about their product or service or mission. Passion is what will help you find motivation when you are discouraged and it will drive your forward. Passion is fuel for successful entrepreneurship. If you find yourself losing your passion, that might be the clue that it’s time to move on to something else (that stokes your passion). There are many serial entrepreneurs that create successful businesses, sell them, and then create something else.
As you consider your characteristics, think about how to better develop them to help you become a better entrepreneur
While there can be as many characteristics of entrepreneurship as there are people in this world with opinions, there are some characteristics that are considered indispensable or necessary in an entrepreneur. These are listed here as follows.
This is the first and foremost trait of entrepreneurship. Starting any business involves a considerable amount of risk of failure. Therefore, the courage and capacity to take the said risk are essential for an entrepreneur.
In a world, where almost everything has been done, innovation is a priceless gift to have. The word innovation basically means generating a new idea with which you can start a business and achieve a substantial amount of profits. Innovation can be in the form of a product, i.e., launching a product that no one has ever sold in the market. It can also be in the form of process, i.e., doing the same work in a more efficient and economical way.
An easy example of product innovation could be the launching of touch screen cell phones when the world was still using a keypad on cell phones.
Process innovation can be seen in capital-intensive industries that have to replace manual labour with machines, therefore, increasing their production and reducing their costs.
Another type of innovation can be the one concerned with usage. For examples, cell phones are now used for various functions such as viewing, creating and editing various files and documents, thus, eliminating the need for computers to a large extent.
Every entrepreneur needs to be a visionary. Without a vision for the future of his investment, he or she would just be working aimlessly without reaching any point of success.
An entrepreneur has a vision. However, it takes a lot of resources to turn that vision into reality. One of these resources are the people that the entrepreneur hires to perform various functions like production, supplying,etc.
A single person cannot perform all the tasks and therefore it is important to bring some more people to do it. This also makes leadership very important as a leader provides the required direction to the efforts of the workers. Without proper leadership and management skills, everyone would be working independently without achieving the desired results.
An entrepreneur needs to be confident about his ideas and skills. This confidence also inspires the confidence of the people working for him as well as the other stakeholders involved in his business.
This confidence comes from being well informed about the industry and environment. Various legal and political policies enhance business and trade opportunities, while some hinder them. Having knowledge about these can really help an entrepreneur make the right decision at the right time.
Entrepreneurial Activities Conducted in Tanzania.
Tanzania has being experiencing rapid economic growth. However bulky of the growth is in agriculture sector. The government of Tanzania understands that for the country to achieve meaningful growth, a great deal of entrepreneurial activities should be conducted.
The following are some of the entrepreneurial activities that are conducted in Tanzania.
1. Agri-business- This is farming done especially using smart technologies, to produce large out put in small parcels of land using efficient farming methods. Agribusiness is carried out mainly for sale of the produce. This sector is expanding rapidly due to high unemployment rates in the country.
2. Mining – there are many companies which are carrying out mining activities in the country. It is important to note Tanzania is blessed with a lot of minerals. The companies export the minerals and help the country to earn foreign exchange currency.
3. Manufacturing- The manufacturing sector in the country has not being vibrant the way it is supposed to be. The government is however encouraging individual citizens and investors from outside to set-up industries that will see, more things being manufactured in the country.
4. Food processing- This sector is supported by the agriculture sector. There are many companies which are involved in food processing. Notable is the Bakhresa group of companies, which process, grains, fruits and milk to add value and pack them.
5. Information and telecommunication- Many entrepreneurs have invested in this sector leading to employment of very many youths. Companies like Vodacom, Airtel, Tigo and Zantel have invested heavily in telecommunication sector.
6. Import of goods and services- We have entrepreneurs who import goods from other countries and come to sell in the country at a profit. These ranges from clothes, shoes, cars, electronics among other.
7. Consultancy-This is another entrepreneurial activities. We have people who are experts in a certain field. Consultancy can be in information and communication technology, management, in insurance and in banking.
8.Transportation- Many entrepreneurs are involved in this type of business. It involves the movement of goods and services from one place to another. Transport companies such Dar express, Kilimanjaro express,etc have dominated the passenger transport sector.
9.Media- By media we mean radio, newspapers, television magazines which are used to pass information. Nowadays we have social media as a form of passing information from one place to another. We also have media houses such as I.T.V, Star T.V, Cahnnel Ten, T.B.C etc
10. Music and entertainment- Music has become a full paying job for many people. It has turned from being a hobby to a source of employment for many young people. Other activities such as acting, comedy etc have become source of income for many people.
The list is not exhaustive as there are so many of other entrepreneurial activities taking place in the country.
Ideas for entrepreneurship endeavor in Tanzania.
There are thousands of ideas that passes on our minds everyday concerning entrepreneurship which are worth pursuing. However not all people can put these ideas into action and become entrepreneurs.
The following are some entrepreneurial activities which are carried out in rural Tanzania
Skills of a successful entrepreneur
Many entrepreneurs believe that the most important factor that will determine their level of success with a startup relates to their overall experience and skills in the niche area. However, the most successful entrepreneurs have developed a certain set of skills that have helped them reach their goals. While you definitely need nerve and patience to launch and run a new business, you also need to focus on nurturing these seven critical skills that are integral to your future success in very important ways.
Flexibility: means being receptive to other peoples needs, opinions, and ideas and being open-minded to feedback from your manager. Successful entrepreneurs are able to adapt to change and solve problems as they arise.
Problem-solving: all of us have to deal with problems and find solutions. A successful entrepreneur sees opportunities in these problems where many of us only see difficulties. Sometimes the best new ideas come from the urge in solving problems.
Good communicators: a successful entrepreneur communicate in a good language with employees, suppliers and customers. This makes good image of the enterprise to the community. Moreover, they are good networkers, inspired and motivate people so that they willingly support the entrepreneurs vision.
Decisiveness: successful entrepreneurs are precise in decision making whether being under pressure of underperforming business or at the height of success. In most cases, they tend to take time to make critical decision in solving the problems that arise within the business quickly without jeopardizing the business position.
Collaboration: successful entrepreneurs are effective team player. And they tend to hire employees who demonstrate strong teamwork skills. They are also open and willing to work together with other successful entrepreneurs during the early stages of their businesses.
Initiative: successful entrepreneurs have ability of conceptualise innovatory ideas. Innovative changes cause improvement in business activities such as product modification, new service, new found material, investment, marketing network, customer relations, financing, staff motivation, research and new organized business enterprise.
Good judgement: successful entrepreneurs have the ability to mobilize resources and are wise on how to use them. If the resources are organized well, the business will grow and succeed.
Good customer care: generally, successful entrepreneurs maintain good relationship with other people especially customers. Every business enterprise need customers, the aim of business enterprise is to sell products and services.
Ambition- It is easy to give up when the going get challenging but the most successful entrepreneurs persist because of their ambitious nature. They want to succeed, and they thrive on reaching small milestones that are stepping stones to their major goal. When you are highly ambitious, you may have an internal drive to work hard, and you may be committed to doing what it takes to make your business a success. Generally, you will not look for shortcuts and are willing put in the time necessary to get the job done right.
Willingness to Learn- Some people think that learning stops when you graduate college or earn a special certification, but this is not the case. Education is a life-long process. You must stay updated with changes in technology, the evolution of your industry, sales processes and more. Always seek new knowledge. More than that, look for the most successful people in your industry and do not be afraid to ask for their opinions or advice.
Ability to Listen- You simply cannot manage a great team or run provide a great customer service if you are not an effective communicator. Communication is a two-way street. In order to communicate outwardly in an effective manner, you must pay attention to others’ motivations, hot buttons, interests and more. You also must be aware of non-verbal cues, such as body language. Avoid coming off as being self-promotional or vain, and strive to show that you are helpful and interested in others. This can foster collaboration, get others excited about your goals and more rather than turn them off because you seem overly interested in your own self-interests.
Creativity- If you always do the same thing, you very likely will not enjoy new and better results. You must try new things to find what works best. You also need to enrich your live with new experiences regularly. This may be something as simple as talking to new people or taking a personal interest class. Each experience that you have can lead to new opportunities that you previously did not have available to you.
While listening is important for effective communication, you also must know when you need to take control of the conversation and assert your opinions and beliefs. You should listen to others who are making reasonable claims and requests, but you also need to know when to say no. Be consistent yet open-minded to earn respect and trust from those around you. You need to know what you stand for, and you need to stand up for those beliefs.
Many of the most successful business owners have suffered devastating defeats and failures. Rather than look at these events as an end to a situation, they have looked at these events as important learning moments. They maintained their optimism and perseverance, but they also made calculated changes to future efforts. Remember that you only fail when you stop trying. Persistence is the key to success.
In order to harness the power of creativity, you must have the courage to act on your great ideas and plans. While you need to research your ideas thoroughly, you must also have the courage to take an unknown step and try things that are unfamiliar to you. In the words of John Burroughs, “Leap, and the net will appear.”
Finding a successful path in life is rarely a straight and narrow process. Many entrepreneurs must take numerous steps to develop the right combination of skills, traits and knowledge to be successful with their efforts. If you focus your attention on nurturing these traits in your own life, you may be able to enjoy better overall success with future entrepreneurial efforts.
The term, "Motivation" has come from the Latin word mover mean "to move". That means to move from present situation to better situation. Thus, motivation is the process of activating, maintaining, enraging and directing behavior of a person towards a particular goal. The process is usually terminated once the desired goal is attained by the person.
The factors those mostly are motivating for entrepreneurs to start up new business or to improve on existing one and influence the successful entrepreneurs are classified into two types, internal and external.
Internal motivating factors
The inward factors motivate and influence a person to become a successful entrepreneur as discussed below:
External motivating factors
These are outward factors that motivates, influence and push a person to become an entrepreneur.
This makes it easy for them to decide or plan to become entrepreneurs. For example, when government provide subsidiary in agricultural sector, manufacturing and other related sectors it motivate and attract him to become an entrepreneur because of to the government support,he/she anticipate to get.
END OF TOPIC QUESTIONS.
2. Motivation is important because;
3. Which of the following is not a characteristic of an entrepreneur?
4. Tanzania main economic activity is
5. Which of the following traits can make an entrepreneur to fail?
6. Identify the external motivation below
7. The word flexibility means;
8. An example of an external motivation factor is;
9. Which of the following is not a skill for successful entrepreneur?
10. Which among the following is not an entrepreneurial activity carried out in Tanzania
11. List five characteristic of successful entrepreneurs
12. Mention ten entrepreneurial activities which can be carried out
13. State five external factors motivating entrepreneur
14. Mention five internal factors motivating entrepreneur
15. Why is motivation important to an entrepreneur?
16. State the skills needed by an entrepreneur.
Solutions To End Of Topic Questions
11. Five characteristics of successful entrepreneurs;
12. Example of entrepreneurial activities carried out
13. External motivating factors of an entrepreneur;
14. Internal factors affecting entrepreneurship
15. Importance of motivation to entrepreneur
16. Skills of an entrepreneur,