Entrepreneurial Activities:

UNIT 14 GENERATE YOUR BUSINESS Overcoming Barriers for

Entrepreneurs
IDEA-I

Structure
14.0 Introduction
14.0.1 What is this unit about?
14.0.2 Who should read this unit?
14.0.3 Objectives of this unit?
14.0.4 How to use this unit?
14.1 You as an Entrepreneur
14.1.1 Do you have what it takes to be an entrepreneur?
14.1.2 Which type and field of business is more suitable for you?
14.1.2.1 Field of business
14.1.2.2 Type of business
14.1.2.3 Identify your business field and type
14.1.2.4 How to strengthen your entrepreneurial abilities and
skills?
14.2 A Market is Waiting for You
14.2.1 Your business idea
14.2.2 What makes a business idea?
14.2.2.1 W
 hich need will your business fulfil for the
customers?
14.2.2.2 What good or service will your business sell?
14.2.2.3 Who will your business sell to?
14.2.2.4 How is your business going to sell its goods or
services?
14.2.2.5 H
 ow much will your business depend on and impact
the environment?
14.3 Let Us Sum Up
14.4 References

14.0 INTRODUCTION
14.0.1 What is this unit about?
Generate Your Business Idea (GYB) unit discusses the basic requirements
that are needed to be an entrepreneur, the capabilities that an entrepreneur
needs to have and the ways that he or she can come up with a good business
idea.
14.0.2 Who should read this unit?
This unit is helpful for any potential entrepreneur who wants to start a
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Case Studies business but is not sure of which business idea to pursue.
14.0.3 Objectives of this unit
When you have completed this unit, you should be able to:
●● Assess whether or not you have the basic requirements needed to be
a successful entrepreneur
●● Clearly explain any business idea that comes to your mind
●● Identify potential sources of business ideas and create an idea list
●● Shortlist and then select the best idea to pursue in order to start your
own business
14.0.4 How to use this unit?
In this manual you will find:
●● Stories of businesses: Compare these examples with your own
business and use them to improve the performance and profitability
of your business.
●● Activities: Practical exercises in the middle of each part that help you
to proactively think about the concepts and how to apply them to your
future business.
●● Assessments: Answering the questions will help you to assess your
capability and readiness to become an entrepreneur
●● Action Plans: Fill in and use the Action Plans at the end of some
parts. These will help you to put your new knowledge into practice.
Several icons are used within the manual to help guide your study. Examples
of the icons and their meanings are listed below:
When you see this icon, you have activities to do or questions
to answer.

When you see this icon, you have to complete assessments

that help you
measure your capability and readiness to become an
entrepreneur.
When you see this icon, it tells you where to find more
information or what to do.

14.1 YOU AS AN ENTREPRENEUR

Are you excited thinking about owning and running a business yourself?
While it sounds very tempting, being an entrepreneur also means taking on
a lot of responsibilities and facing a lot of challenges!
First of all, you need to find out if you are capable of running your own
business. Favourable circumstances, in combination with certain personal
characteristics and skills are necessary elements for your development
a; a successful entrepreneur. You will also need specific knowledge and
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experience in the field to be ultimately successful in the business you choose. Generate Your
Business Idea-I
Below are two assessments that you should make before going into business.
The first one will measure whether you have the right abilities to be an
entrepreneur. The second assessment will help you to identify which type
and field of business may be suitable for you.
14.1.1 Do you have what it takes to be an entrepreneur?
The following assessment will help you find out if you have the basic
requirements of an entrepreneur. Be honest when you answer the questions.
Think about each of the following factors presented as questions. If you
answer YES to the questions dealing with any particular factor, consider that
factor as one of your strengths. If you answer NO to most of the questions
or you are not quite sure about the answers, those factors may be areas that
need improvement before you start your business.
PERSONAL CHARACTERISTICS, AREAS OF AREAS THAT
SKILLS AND YOUR SITUATION STRENGTH NEED
IMPROVEMENT
Passion
Are you passionate about running your own business?
Is it very meaningful and important to you, your family
and the community? Are you enthusiastic about making
your business a success and are you willing to put it
before almost everything else?
Goal Orientation
Are you able to see the big picture and to create clear
goals for your business? Are you determined to direct
all of your endeavors towards achieving your goals?
Making decisions
When you are confronted with a difficult situation, are
you able to keep calm, seek adequate information and
make important decisions without postponing or passing
the problem on to someone else?

Taking risks
There is no absolutely safe business idea. You always
run the risk of failure. Are you aware of the risks and do
you accept the possibility that your business might fail?
Have you sought adequate information so that you can
honestly estimate how big a risk you are going to take?
Ability to handle stress
Entrepreneurs are subjected to a lot of stress when
making difficult decisions, managing different business
stakeholders and working long hours. Are you able to
maintain a positive spirit under pressure? Can you see
opportunities in difficult situations?
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Case Studies
Social support
Running your business will take a lot of time and effort.
Will you get adequate support from family, friends and
other business people?
Financial situation
Access to financial resources to start your business
is important. Have you set some money aside to get
your business started? Do you have family or friends
who might be willing and able to lend you money? Do
you have a savings or credit history with a financial
institution that provides start-up loans?
Business management skills
Business management skills are the ability to run your
business efficiently. Are you good in some business
management areas, such as marketing, sales, costing or
staff motivation, etc.?
Commitment to your community
An entrepreneur plays an important role in the
development of the community. Are you aware of this
role? Are you committed to the social advancement of
the community as a whole?
Count the number of strengths and areas of improvements
you listed above and write the total here.

Number Number
of of
areas areas
where needing
you are improve-
strong ment
Look at the assessment areas above and decide which ones that need
improvement and growth are critical for your business success. Make a note
of them in the box below:

Critical areas needing improvement and growth:

_____________________________________________________
_____________________________________________________
_____________________________________________________

14.1.2 Which type and held of business is more suitable for

you?

If you choose a business based on your work

experience, technical skills, knowledge of
business practices, hobbies, social ties and
family background, etc., there is a greater chance
that you will succeed.
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Consider the following examples: Generate Your
Business Idea-I
Hasan has been working for courier company for many years He learned
how to manage the courier business and how to develop the required
networks. He is considering opening up his own courier service to operate
in his country and the East African region.
Maria has grown up in a farmer's family. Her parents grow seasonal
vegetables to sell to the local retailers. Maria has graduated from the
Agricultural College. She
knows various planting
techniques and is enthusiastic
about promoting the planting,
sales and consumption of
organic foods in her
community. Maria decides to
grow organic vegetables on
her parents' farm and to sell
the products through their
retail network.
Kim loves fashion. While she
was a student in the capital

city, Kim went shopping and

discovered a source of
inexpensive imported clothes and
accessories. She has now returned
to her hometown. She decides to
buy fashion items from that
source and resell to fashion shops
in her area.
Githuku worked for a construction materials company for several years.
He is very familiar with all the
brands and knows the quality of
various construction materials.
When repairing his house last
year, he realized that there
was no shop in the area selling
the supplies he needed. He
decides to open a shop near his
home, selling all types of basic
construction materials, such
as cement, bricks, tiles, sand,
paint, etc. He enjoys meeting people and advising them about the different
types of construction materials.
Below is a summary of how the people in the examples above have chosen
their field and type of business:

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Case Studies

In the following section, we will further explain what fields of business and
types of business exist before suggesting those that will be most suitable for
you.
14.1.2.1 Field of business
A field of business refers to an industrial category, such as farming, fishing,
food processing, garments, construction, furniture, beauty salon, stationery,
etc. Your talent, family background, experience, hobbies or interests often
inspire you to develop a certain field of business. Your decision to pursue
a particular field of business should also match your knowledge, skills and
situation.
14.1.2.2 Type of business
A type of business identifies how you take part in the business field that
you choose. Your personal characteristics and your available networks often
guide you into a suitable type of business.
There are four main types of businesses:
Manufacturing
Manufacturers are businesses that use raw materials, such as leather,
waste material, wood, cloth or metal and make new or different products
out of those materials. Some examples of manufacturing businesses are
shoemakers, dressmakers, furniture makers, paper producers and farm
equipment manufacturers. If you know how to produce a good and to make
something that is in demand and valuable to customers, you may want to go
into manufacturing.
Service Provision
Service providers are people whose businesses sell a particular service, such
as transportation, tours, hairdressing, banking, deliveries, construction,
repairs, cleaning, painting, nursing, etc. If you enjoy working with people
and satisfying their specific needs, providing services may be your forte.
Wholesaling
Wholesalers are businesses that buy large quantities of certain goods from
manufacturers and resell those goods to retail outlets, who then resell them
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to individual consumers. If you are familiar with companies that make and Generate Your
sell their goods in bulk and you are good at establishing relationships with Business Idea-I
retailers, you may want to be a wholesaler.
Retailing
Retailers purchase ready-made goods from wholesalers or suppliers for
resale at a profit. Some examples of retail businesses are grocery stores,
appliance stores, clothing stores, stationery shops, computer and mobile
phone shops, etc. If you like meeting different people and you have access
to a good location to open a shop, retailing may be a good option for you.
14.1.2.3 Identify your business field and type
The following assessment helps you to identify the field and type of business
that you should opt for. Be honest in your assessment.

1. My interest – I enjoy doing the following (include Possible business

your hobbies): fields:
2. My experience – I have worked in or have
educational experience in the following field(s) of
business (list jobs, training and other sources of work
experience):
3. My business network – I know the following Possible business
people, friends and relatives who are in business and types:
who could provide information, advice or assistance
(state their position):
4. My preference is to:
Work with a lot of people/work on my own
Be active and work outdoors/ work at the desk all day
Do physical work/work in a job that allows me to be
creative/do work that requires logical thinking
Focus on technical details/talk to and care for people
Remember that that this assessment can direct you into the business field and
type for which you are best suited. You can always return to this assessment,
rethink the choice that you have made and make a different decision.
14.1.3 How to strengthen your entrepreneurial abilities and
skills?
What if you do not have all the desired characteristics and skills to be an
entrepreneur or if your situation is not right to be an entrepreneur at this
time? Look at the assessment areas above and identify the areas that need
improvement and growth, which are critical for you to start your business
and succeed in it. There are many ways to improve your entrepreneurial
abilities. You can:
●● Learn from people who run their own business, especially those in
your chosen business field and type
●● Attend training courses
●● Find work as an assistant or apprentice in a successful business in the
field and type that you are interested in
●● Read articles about businesses in your field and type in newspapers
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Case Studies and trade journals, either on the internet or at libraries to help you think
about the problems these businesses are facing and their proposed
solutions
●● Join a small business association in your area and participate in forums
●● Set aside small amounts of money on a daily or weekly basis to help
finance your new business
●● Develop the skills and attitudes described below by applying them in
your daily activities:
●● Increase your motivation and commitment by making a plan for
your future
●● When things go wrong, analyse what happened and improve
your ability to learn from mistakes
●● Accept the problems, assess the solutions and take risks
●● Become more open to new ideas and other people's views
You might want to think about finding a partner who complements your
abilities, instead of going into business entirely on your own. A partner
might also be able to bring financial resources, collateral or relationships
with financial service providers that could be helpful if your business ever
needed a loan.
There are a number of successful business people who did not have much
experience or practice in their particular field or type of business before
starting their companies. What is important is to be aware of the areas that
need improvement and develop a plan of action to deal with these before
they negatively affect your business. Complete the Action Plan on the next
page to help you assess how you intend to improve your knowledge, skills
and business situation.
Activity 2
ACTION PLAN
Areas the need What will I do to When?
improvement improve it?

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 Generate Your
14.2 A MARKET IS WAITING FOR YOU Business Idea-I

14.2.1 Your business idea

Janet's experience
Janet has a small farm and her husband works in a nearby mine, but even
though both of them have jobs, they do not earn enough money to pay for
their children's education.

Manufacturing and bottling soya milk for sale

Janet decides to try and start her own business by rearing chickens to sell.
She knows how to do it and her uncle gives her a loan of $400 to start
the business. However, before she buys the chicks, someone tells her that
there is a huge demand for sunflower oil because of its lack of availability
in the market. Traders are knocking on the doors of local farmers asking
them to produce it. Thinking she can earn a lot more money from pressing
sunflower seeds for oil, Janet changes her business idea and starts an oil
pressing venture.
Janet has never grown a large quantity of sunflowers. She spends all the
money from the loan to buy seeds, fertilizer and the oil pressing equipment.
Since she uses most of the family farmland to grow sunflowers, there is less
land to grow maize and vegetables for the family to eat.

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Case Studies The chemicals from the fertilizer begin to make her children sick. She now
has to buy more food for the family. It takes a lot of time and effort to
process the oil, so, Janet has to employ someone to help hen A lot of other
farmers have started growing sunflower seeds too. Therefore, by the time
her oil is ready to sell, the market is already saturated with the good and
Janet cannot find a buyer. To reduce her losses, Janet has to sell the oil at a
very low price to a local shop. As a result, Janet makes very little money and
she is not able to pay back the loan.
What is wrong with Janet’s business idea? Why?
_______________________________________________________
_______________________________________________________
_______________________________________________________
Now look at another case:
Lily’s experience

Lily had been working in the assembly line of a garment factory for more
than five years. Her salary was low and she was often required to work
overtime. Lily's sister-in-law came to visit and complained to Lily that she
was unable to find any good clothes for her 12-year-old daughter. She said
that the clothes in the stores all seem to be either made for younger children
or for adults. After the visit, Lily decided to go around to the clothing shops
in her town. She saw young teenage girls shopping in the stores, but she
noticed that the number and variety of clothes geared to that age group was
limited. She had already been thinking of quitting her job and opening her
own business.

Therefore, Lily decides to design some pretty clothes and dresses for young
teenage girls. She makes some drawings of clothing that would appeal to
that age group. She then takes her drawings to the local clothing shops,
268
asking the owners if they would buy the dresses in the drawings, how much Generate Your
they would pay for them and how many they would buy. The shop owners Business Idea-I
seemed to be quite happy with her designs and said they would display
her clothes. Lily then uses her savings to buy a sewing machine and some
material to make her first batch. She works in the evening after getting off
from work at the garment factory. All of the dresses she makes sell very well
and the shops are willing to pay her in cash upon delivery. Lily then decides
to quit her job to focus on her own business. Within six months, Lily starts
receiving regular orders from the shops. She plans to buy one more sewing
machine and hire one of her friends to work for her.
Why is Lily successful in her own business? What did she do that made her
successful?
_______________________________________________________
_______________________________________________________
_______________________________________________________
Starting a business is not an easy job. It takes a lot of work and a lot of
planning. The effort and the money it takes to start a business may be lost
if you do not start the right business. The right business begins with a good
description of your business idea.
14.2.2 What makes a business idea?
A business idea is a short and precise description of the basic operation of
an intended business. Before you start a business, you need to have a clear
idea of the sort of business you want to run.
Your business idea will tell you:
●● Which need will your business fulfil for the customers and what kind
of customers will you attract?
●● What good or service will your business sell?
●● Who will your business sell to?
●● How is your business going to sell its goods or services?
●● How much will your business depend upon and impact the
environment? A good business idea will be compatible with the
sustainable use of natural resources and will respect the social and
natural environment on which it depends.
14.2.2.1 Which need will your business fulfil for the customers?
Your business idea should always have customers and their needs in mind.

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Case Studies

It might be a good idea to start a day care centre in the commercial area as
many other parents may have the same need.
It might be a good idea to start a waste collection and recycling service in
this area. Not only would the owner of this restaurant need the service, but
many other residents in the area might need it as well.

Refer to the cases of Janet and Lily above:

Janet produced sunflower oil without knowing:
●● Is there a need for oil?
●● Who needs it?
●● Why do they need sunflower oil and not another type of cooking oil?
She therefore had no idea how big the demand for sunflower oil would be.
Consequently, she could not find customers as the need had been fulfilled
by the time, she was able to supply her good.

Since Lily did her market research, she knows that pre-teens and teenage
girls in her area have limited choice and access to clothing specifically
designed for their age group. What they wear is either designed for younger
270
children or for adults. Lily aims to fill the need by producing fashionable Generate Your
clothes that are suitable for their age group. Business Idea-I

14.2.2.2 What good or service will your business sell?

Depending on your skills and the needs of the customers, you should decide
which good or service your business will sell. Also, keep in mind that they
must be goods or services that people are willing to pay for and at a price
that will allow you to make a profit.

A good is an item that people pay for and use. It may be something you
make yourself or it may be something you buy to resell. Tools, baked goods,
clothes and retail items are all products.

Making and selling women’s clothes

Making and selling household furniture

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Case Studies

Making and selling solar lamps

A service is something you do for people that they then pay you for. For
example, delivering goods, banking, babysitting, repairing items, collecting
recyclable waste from apartment buildings, operating tours, etc. are all
services.

Pizza delivery service Video rental service

Car wash service Phone repair service

Refer to the cases of Janet and Lily:

Janet grew sunflowers and produced sunflower oil
without having any prior knowledge and experiences
She was not aware of the challenges of the business,
such as the toxics from fertilizers or the long processing
time. Janet had no advantage that she could use in her
sunflower business and she faced too many problems,
so she was unable to make a profit.
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 Lily had significant experience in making Generate Your
clothes. She knew about sewing. However, she had no Business Idea-I
experience designing clothes, so she tested her
competency by making some designs and showing
them to the clothing store owners. She only opened her
business after the first batch of dresses were accepted
for display in the shops and then sold.
14.2.2.3 Who will your business sell to?
Any business cannot succeed without customers. Therefore, it is essential
that you know who your customers will be. Will you sell to a specific type
of customer or to everyone in an area? There must be enough people who
are able and willing to pay for your goods and services or the business will
not survive.

B&C Furniture makes and sells sofa sets directly to Melody Cafe
Refer to the case of Janet and Lily:
Janet had no idea who the end customers of her
sunflower oil might be. She just focused on producing
the oil and thought that the shops will buy it from her.
Therefore, she did not know how big the need was for
her good. She also did not know if there were any
competitors who were going to fulfil the same needs
of the customers.
Lily knew that her customers will be teenage girls in
her area. She researched the market by observing the
clothes shops and the target customers to make sure
that there was a real need that she could fulfil. She also
knew that there was no competitor currently filling that
need.

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Case Studies 14.2.2.4 
How is your business going to sell its goods or
services?
How are you going to sell your goods or services? If you plan to open a shop,
you know how you will sell your product, but manufacturers or service
operators can sell their products in many different ways. A manufacturer, for
example, can sell either directly to customers, to retailers or to wholesalers.
Some businesses sell directly to their customers:

Jasmine Rice Distributor sells its rice to convenience shops where people
go shopping for rice

Some businesses sell to retailers:

Refer to the cases of Janet and Lily:
Janet did not plan how to sell her product.
When she made the oil, she just went around
and tried to sell to retail shops.

From the beginning, Lily decided to sell her

goods through clothes shops. She talked to the
owners of these shops even before she started
her business, to make sure they would sell her
goods.

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14.2.2.5 H
 ow much will your business depend on and impact Generate Your
Business Idea-I
the environment?
Your business can only be sustainable in the long run if it works in harmony
with the social and natural environment. How much does your business
depend on the environment? Does it rely on the weather, soil or other
natural resources? Does it need any specific type of labour from the local
community? Does it need the local community to support it? What should
you do to make sure that your business nurtures the natural environment
and helps the local community? Will your business nurture the natural
environment or will it have a detrimental impact? How would you minimize
or reverse any negative effect that your business might have?

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Case Studies Refer to the case of Janet and Lily:
Janet was not aware of the harmful chemicals
in the fertilizers that she uses. Her business
will not survive in the long-term if she does
not solve the problem of the negative effects
of toxic fertilizer. The health of her children
will also be adversely affected.

Lily's business addressed a concern of the

community-lack of choice and access to
appropriate clothing for teenage girls. This
is an advantage that her business will use to
grow and to stay profitable.

Activity 3
Now if you already have a business idea, describe your idea using the
following form:

My business idea is:

_____________________________________________________
_____________________________________________________
_____________________________________________________
Which need will my business fulfil?
_____________________________________________________
_____________________________________________________
_____________________________________________________
What good/service will I provide?
_____________________________________________________
_____________________________________________________
_____________________________________________________
To whom will I sell?
_____________________________________________________
_____________________________________________________
_____________________________________________________
How will I sell my good/service?
_____________________________________________________
_____________________________________________________
_____________________________________________________
How much will my business depend upon and impact the
environment?
_____________________________________________________
_____________________________________________________
_____________________________________________________
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At this stage, if you cannot adequately describe your idea, it is not a problem. Generate Your
At least you know what information you need for any business idea that you Business Idea-I
have thought about. You may also need a list of ideas to consider instead of
focusing on one vague concept. In the following sections, we will help you
find more business ideas before choosing the most suitable one.

14.3 LET US SUM UP

The unit provides a comprehensive exploration of the foundational aspects
of entrepreneurship, guiding individuals on the path to self-discovery
and business ideation. It begins by introspectively assessing whether one
possesses the requisite qualities and traits to thrive as an entrepreneur.
Through introspection and self-assessment, learners gain insight into their
strengths, weaknesses, and entrepreneurial potential. Moving forward, the
unit delves into the critical decision-making process of identifying the most
suitable type and field of business. By examining factors such as personal
interests, skills, and market opportunities, participants are empowered to
make informed decisions about their entrepreneurial endeavors. Additionally,
the unit emphasizes the importance of strengthening entrepreneurial abilities
and skills through continuous learning and development.
Transitioning to "A Market is Waiting for You," the unit shifts focus to business
ideation and market analysis. Participants are guided through the formulation
of a compelling business idea by dissecting various components such as
customer needs, products or services offered, target market demographics,
sales channels, and environmental impact. Through a structured approach,
learners gain clarity on how their business will address market demands and
create value for customers. By considering environmental sustainability
and social responsibility, individuals are encouraged to develop business
models that align with ethical and environmental principles. Overall, this
unit equips aspiring entrepreneurs with the foundational knowledge, skills,
and mindset required to embark on their entrepreneurial journey with
confidence and purpose.

14.4 REFERENCE
International Labour Organisation(2015), “Generate Your business ideas”
Printed in Switzerland.

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