ENT 305

BUSINESS OPPORTUNITY SCOUTING AND EVALUATION

MODULE 1
UNIT 1 THECONCEPT OF BUSINESS

3.1 Concept Business

Business can be defined as an institution concerned primarily with the production and marketing of
goods and services for the economy.
It can also be defined as all the economic activities carried out in order to provide goods and services.
However, Hooper defines business as the whole complex field of commerce and industry, the basic
industries, processing and manufacturing industries, and the network of ancillary services, distribution
banking, insurance, transport, etc, which serve and interpenetrate the world of business farm only.

Business can be private or public, providing goods and services. The major aim of operating business is
to make profit especially in private types. In public type, however, profit maximization is de-emphasized.
Rather, it is service oriented. But profit is made in order to sustain the business.

3.1 Types of Business Existing within the Economy

3.1.1 Agribusiness This is agriculturally related business, concerned with the production, distribution
and processing of food and fiber. Greater proportion of the total labour force is involved in agribusiness
in Nigeria.

3.1.2 Mining Mining is concerned with the exploration of minerals, petroleum, coal, etc.

3.1.3 Financial Business This is a business that has to do with financial transactions with the banks,
insurance, companies, credit houses etc.

3.1.4 Marketing Business This business deals with wholesale and retail trading.

3.1.5 Heavy Industrial Business These are industries that engage in large-scale production or activity
and require huge amounts to set up.

3.1.6 Light Industries These are industries that engage in small-scale production or activity and often do
not require huge sums to set up.

3.1.7 Service Industries Service industries include tailoring, barbing salon, pool bating, etc.

3.2 Obligations of Business Business has the following obligations to fulfill:

3.2.1 To Customers The customers should have the best products and services at the least cost,
according to the rules of fairness to all engaged in production and distribution.

3.2.2 To Workers There is the need to preserve their employment with all rights and rewards and to
expect fair contribution from them under conditions approved by law and work social ethics.

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3.2.3 To Management That the management may be recognized and rewarded according to the fruits
of their decisions, and protect the interest of others.

3.2.4 To Competitors That there will be no unfair practices and foul means. Smuggling, counterfeiting
and substandard goods are condemnable measures of doing harm to competitors.

3.2.5 To Investors To safeguard the investments and interests of the investors, using the best
management judgments and decisions. Efforts should be made to open up profitable investment
opportunities so that profits can accrue to the investors after expenses have been paid out.

3.2.6 To Public That the enterprise(s) will promote the general welfare, education and social activities
that enhance high productivity and ethical obligation and to observe faithfully the laws of the land.

UNIT 2 CHARACTERISTICS AND BUSINESS GOALS OF BUSINESSENTERPRISES

3.1 Characteristics of Business

The characteristics of a business vary from one place to another but there are few similar characters
related to a business. The following are few characters of a business:

3.2 Ownership
Businesses mostly prefer to be organized as sole proprietorship, partnership or limited liability
companies.

3.3 Size of Employees

Small scale businesses employ smaller teams of employees than companies that operate on a larger
scale because most small businesses are labor-intensive. The smallest businesses are run entirely by
single individuals or small teams.

3.3.1 Revenue and Profitability

Small scale business revenue is generally lower than companies that operate on a large scale. Note that
lower revenue does not necessarily translate into lower profitability. Established small businesses often
own their facilities and equipment outright, in which, in addition to other factors, helps to keep costs
lower than more leveraged businesses.

3.3.2 Market Area Small scale business serves a much smaller area than corporations or large
businesses. A small convenience store might serve a single community and due to its size, it cannot
serve areas much larger than a local area, since growing beyond that would increase the scale of the
business operation and push it into a new classification.

3.3.3 Location
A small scale business is mostly found in a limited area, along busy streets or major mode of transport.
Also, the business is often located closer to material and supply sources and to markets, easing the
burdens of transportation and time.

3.3.4 Limited and unlimited Investment

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In a small business enterprise, capital is supplied by an individual or a small group of individuals but large
scale business capital is supplied by an individual or a small group of individual’s loan from Banks.
3.4 Goals of Business
Setting of goals is of great importance to a business, as it helps the growth of the business. Small
business begins in almost as many ways as there, are entrepreneurs. Some are started by people who
are out of work or unhappy where they are working. Some are started on a part-time basis to bring in
extra income for the owner. Still others are begun for the sheer challenge or creativity involved. Some of
these part time operations never grow beyond their simple beginnings.

Owners may be content with small-scale operations and not want to get any bigger.
Other businesses grow into full-time larger companies, sometimes becoming partnerships or
corporation.

Other small businesses are started by people who've developed a product or service that can be
produced and sold only in a new business set up for that purpose. Historically, many such businesses
have evolved into large corporations, providing employment opportunities for many other people.

The following are goals a business owner must achieve;

 Profitability A common business goal is to run a profitable operation which typically means increasing
revenue while limiting expenses. To reach this goal, objectives could consist of increasing annual sales
by 10%.
 Efficiency Efficiency in a business operation is a way to increase productivity. To improve efficiency,
you might decide to get raw materials earlier than you normally do to satisfy your consumers.
 Growth Most small business does not aim at growth at all thereby offering existing product, process
and service. Growth should the goal of any small business.

UNIT 3 NEEDFORSMALLBUSINESSENTERPRISES

3.1 General Importance of Small Business Enterprises

The importance of small business enterprises cannot be overlooked and they include:

---It provides employment opportunities

---Helps to conserve foreign exchange
---Promotes indigenous entrepreneurial skills
---Enhances the quality of life in urban and rural areas
---Reduces rural/urban migration
---Responds promptly to the dynamic business environment than big businesses
---Helps in production of special and varied products and services which may not be attractive business
options to large firms.
---Facilitates the use of untapped savings thereby encouraging capital formation which is the engine of
growth.

3.2 Importance of Small Business Enterprises in the Economic Development

Small business enterprise account for substantial part of the total industrial employment, production
and value added in an economy business concern.
---It act as catalyst for technological development
---Provides employment opportunities

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---They provide training ground for establishment and management of a large firm, over time some of
these firms grow in size either by expansion or by merging with other firms.
---They encourage and promote private sector initiatives and development. They help to fill the gap left
and un-serviced by the large firms.
---They help to tab the relatively ignored and other unexploited resources and areas of production
---They said the process of redistribution of incomes in many countries both in pure financial terms and
in regional terms.
---They act as industrial links between local producers of raw materials and industrial concerns
---They have positive implications for improving the standard of living of the citizens and generation of
foreign exchange through export.

3.3 Problems of Small Business Enterprises

Even though small business enterprise has its importance, it is necessary to look at the problems facing
small business enterprises. These problems include;
3.3.1 Inadequacy of finance capital Majority have limited access to diverse sources of capital or even
foreign exchange as institutional credit.

3.3.2 Lack of continuity Most small business enterprises are sole proprietorship and ceased to exist as
soon as the owner loses interest or he is dead.

3.3.3 Poor Implantation of Government Policy So many government policies in respect of small
business enterprises are poorly implemented, which makes it possible to continually sustain and support
small business enterprises.
3.3.4 Poor Managerial Skills Most owners do not have the require skills to successfully run the
organization. More importantly there are no avenues for training to improve their skills.
3.3.5 Inadequate Information Base Small business enterprises are characterized by poor record keeping
and there are no institutional support facilities for them to have access to require information for
effective planning and management purposes.
3.3.6 Inadequate Infrastructure Facilities that are needed as support base to start, run a business
successfully and to grow are grossly inadequate. In some cases these facilities have to be provided by
the owners of the enterprises.
3.3.7 Lack of Raw Materials In some cases, needed raw materials are sourced externally. Hence the fate
of such establishment is tied to the availability of foreign exchange, fluctuation in the exchange rate and
strict government policy for accessing the foreign exchange.
3.3.8 Poor Accounting System Most small scale enterprises do not keep proper records and in some
cases none is kept. It is therefore difficult to assess and evaluate their viability and package them for
external credit facilities.
3.3.9 Unstable Policy Environment Constant changes in government policy destabilize or lead some
small business enterprises folding up. Some of these policies are not only contradictory sometimes they
are out rightly discouraging.

4.0 CONCLUSION The importance of small business enterprises are extensive but the problems of small
business enterprises cannot be overlooked as it shows the area where business owners and the
government work on in order have more successful enterprises.

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UNIT 4 ACONCEPTOFINNOVATIVEBUSSNESSIDEAS AND BUSINESSOPPORTUNITIES

3.1 DEFININGANIDEA: Look within ourselves and examine your skills, talent, passion In fact, one of the
first places to start when looking for business ideas or opportunities is to look within yourself. Most
people miss this greatest source of business ideas because of ignorance, laziness and self-doubts.

Keep up with current events and be ready to take advantage of business opportunities Social
happenings, events and parties are also sources of business ideas.

Franchising A franchise is just an arrangement whereby the manufacturer or the sole distributor of a
trademark, product or service grants exclusive rights for local distribution to independent retailers in
return for their payment of conformity and royalties in order to standardize operating procedures.

3.2 What is an opportunity?

The word opportunity is used to discuss about a situation in which one can do something that he/she
wants to do.
Opportunity is an exploitable set of circumstances with uncertain outcome, requiring personal
commitment, resources and involving exposure to risk.
Opportunities arise from a wide variety of circumstances ranging from change, chaos, confusion,
inconsistencies, ambiguity, uncertainty, etc.
When seeking for opportunities it is better to look for opportunities that are recently created and have
not been exploited.
Opportunity begins as an initial idea that entrepreneurs develop. Development of opportunities
requires initiative, effort and creativity. Most business opportunities do not occur suddenly but they
are results of the entrepreneur's attention, which he/she devotes to these opportunities.

3.3 What is a business idea?

A business idea is a concept that can be used to make money. Usually it centers on a product or service
that can be offered for money. An idea is the first milestone in the process of founding a business. Every
successful business started as someone‘s idea.

Although a business idea has the potential to make money, it has no commercial value initially. In fact,
most business ideas exist in abstract form; usually in the mind of its creator or investor and not all
business ideas, no matter how brilliant they may seem, would end up being profitable. To find out about
an idea‘s chances in the market and check its innovative content and feasibility, you need to conduct a
plausibility check.

3.4 Business Opportunities

In general sense, the term opportunity implies a good chance or a favorable situation to do something
offered by circumstances. In the same vein, business opportunity means a good or favourable change
available to run a specific business in a given environment at a given point of time (Shinha 2015). Agu
(2011) defines business opportunity as an attractive idea or proposition that provides the possibility of a
return for an individual who takes the risk of using the idea to solve an identified problem of individuals
or society.

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Definition of business opportunity varies because the term means different things to different people. A
business opportunity can also involve the sale of foods or services that enable the entrepreneur to begin
a business (Perez, 2016).
3.5 Means to discover business ideas
Exhibitions, Expos and Trade show another means to discover business ideas and opportunities is to
attend exhibitions and trade fairs.
These are usually advertised on the radio or in newspapers. By visiting such events regularly, you will not
only find out new products and services, but you will as well meet sales representatives, wholesalers,
distributors, manufacturers and franchisers.

The main point for a new business idea should be the customer. The needs and wants of the customer,
which will provide the rationale for a product or service, can be analyzed or ascertained through a
survey. Such a survey may be conducted formally or informally by speaking to people; usually through
interviews or using a questionnaire or through observation.

Brainstorming
Brainstorming is a creative problem-solving technique, and also a source for generating ideas. The object
is to arrive with as many ideas as possible. It usually begins with a question or problem statement. For
instance, you may ask―What are the products and services required in the home today which are
unavailable? Each idea can lead to one or more additional ideas, resulting in a good number.

UNIT5 DIFFERENCE BETWEEN BUSINESS IDEAS AND BUSINESSOPPORTUNITIES

3.1 The Difference Between Business Ideas And Business Opportunities

A business opportunity on the other hand is a proven concept that generates on-going income.
In other words, a business opportunity is a business idea that has been researched upon, refined and
packaged into a promising venture that is ready to launch.

While multiple business ideas may strike you on a daily basis, only few of them will be profitable in the
long run based on market research and feasibility study conducted. These few are the real business
opportunities.

Major difference between an idea and an opportunity is that you can sell a business opportunity, but
you cannot sell an idea (it is not entirely impossible but it’s difficult).

Colonel Sanders tried for many years to sell his chicken recipe idea but no one listened to him until he
repackaged it and KFC (Kentucky Fried Chicken) was born.

The moral of this lesson is that investors invest in business opportunities and ventures, not business
ideas.

3.2 An opportunity is regarded as one after it has been found to meet the following criteria:

---It must have high gross margins.

--- It must have the potential to reach break-even cash flow within 12 months– 36 months.
---The startup capital investments must be realistic and within the range of what you can provide.
---You must have the strength and ability needed to drive the business to success.
---Your level of enthusiasm for the business must be very high.

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---It must have the potential for residual income.
---It must have the potential to keep on improving with time.
---It must have a low level of liability risk.
3.3 CHARACTERICSTICS OF BUSINESS IDEA
Apromising business idea must have the following characteristics:
 Relevant (must fulfill customer’s needs or solve their problems)
---Innovative
---Unique
---Clear focus
---Profitable in the long run
The acceptability and profitability of a business idea hinges largely on how innovative the idea is.
Being innovative means using conventional production or distribution methods that have rarely been
adopted before. In fact, the entire business system could be innovated.

3.4 A SUCCESSFUL BUSINESS IDEA MUST MEET THE FOLLOWING THREECONDITIONS:

1. It must offer benefit to the customer by solving a problem or fulfilling a need. Customers buy products
and services for just one reason; to satisfy a need. So, if your business idea cannot satisfy customers, it
won ‘t be successful. Every successful business idea must have a unique selling proposition.

2. It must have a market that is willing to accept it. A promising business idea must offer a product or
service that would be accepted by a large market. It must also have feasible arrangements for catering
to that large market as well as unique values that differentiates it from the competition.

3. It must have a mechanism for making revenue. A successful business idea must show how much
money can be earned from it and how the money will be earned.

3.5 HOW DOYOU TURN A BUSINESS IDEA INTO AN OPPORTUNITY?

Well, you can turn a business idea into a business opportunity by conducting market research and
feasibility study on your idea, writing a business plan and assembling a business team that will work with
you on your idea. Only then will such idea become an opportunity that will attract investors and
probably get the needed financing.

3.6 FIVE BASIC ELEMENTSOF THE RECIPE TO TURN IDEAS INTO TANGIBLEOPPORTUNITIES

The five basic elements of the recipe to turn ideas into tangible opportunities that further allow you to
make work plans are:
1. Strategic Fit: To understand what the market needs and realistically take account of capabilities you
have to be able to provide it.
2. Business Plan: The process of writing a business plan actually helps develop an idea into an
opportunity. It forces you to ask and answer hard questions and explore your options.
3. Team: An idea rarely becomes an opportunity without a team. No individual has all the knowledge
and skills necessary to make the transformation.
4. Leadership: Once you have a team, the right leadership is essential to guide the development from
idea to opportunity.
5. Resources: The planning process will give you a good idea of the resources that will be required to
turn your idea into an opportunity.

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To make it more relevant, let us consider the example of Uber Cabs. There was an innate need of taxis
with best affordable prices across the world.

MODULE 2
UNIT1 IDENTIFICATION OF BUSINESS OPPORTUNITY
Identification and selection of a suitable and viable business opportunity is first thing. This is because if
we ask any intending entrepreneur what project product he/she will select and start as an enterprise,
the obvious answer he/she would give is the one that have a good market and is profitable.
Identification business opportunity starts with:

(i) Idea Generation and Opportunity: Idea generation represents the creative process of
generating, developing, and communicating new ideas, while an idea is understood as a
basic element of thought that can be visual, concrete, or abstract.

Opportunity identification and selection are akin to 'new product development' in

marketing terminology. Product or opportunity identification and selection process starts
with the generation of ideas or ideas about some opportunities or products that are
generated in the first instance.
Shinha (2015) reveals that entrepreneurs select their products or projects based on some factors:
(i) Their own or partners' past experience in that business line;
(ii) The Government's promotional schemes and facilities offered to run some specific business
enterprises;
(iii) The high profitability of products;
(iv) Increasing demand for the product in the market;
(v) The availability of inputs like raw materials, labour, etc. at cheaper rates;
(vi) The expansion or diversification plans of their own or any other ongoing business known to
them; and
(vii) The products reserved for small-scale units or certain locations. Therefore, one of the ways
employed by most of the intending entrepreneurs to select a suitable product/project is to
firstly generate ideas about a few products/projects.

3.2 SOURCES OF IDEA

Sources of Idea: The idea of opportunities or products can be generated from various sources: internal
and external or from formal or informal. These may include the followings:

i. Knowledge of potential customer needs,

ii. Watching emerging trends in demands for certain products, Scope for producing substitute
product,
iii. Going through certain professional magazines catering to specific interests like electronics,
computers, etc.,
iv. Going through certain professional magazines catering to specific interests like electronics,
computers, etc.,
v. Making visits to trade fairs and exhibitions displaying new products and services,
vi. Meeting with the Government agencies, Ideas given by the knowledgeable persons,
vii. Knowledge about the government policy, concessions and incentives, list of items reserved
for exclusive manufacture in small-scale sector,
viii. A new product introduced by the competitor, and

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 ix. One's market insights through observation.
Also a prospective entrepreneur can get ideas for establishing his/ her enterprise from various sources.
These may include consumers, existing products and services presently on offer, distribution channels,
the government officials, internet, Research and Development (R&D).

3.3 Prospective Entrepreneur Can Get Ideas For Establishing His/ Her Enterprise From Various Sources.
A brief description on each of these follows:
(a) Consumers: No business enterprise can be thought of without consumers. Consumers demand
for products and services to satisfy their wants. An entrepreneur needs to know what the
consumers actually want so that he/she can offer the product or service.
(b) Existing products and services: One way to have an enterprise idea may be monitoring the
existing products and services already available in the market and making a compentive analysis
of them to identify thee shortcomings and then, based on it, decide what and how a better
products and service can be offered to the consumers.
(c) Distribution Channels: Distribution channels known as market intermediaries, serves as a very
effective source for new ideas for entrepreneurs. This is because they deal directly with the
consumers and can better understand the consumers' wants. The channel members include
wholesalers and retailers who can provide ideas for new product development and modification
in the existing product.
(d) Government: A prospective entrepreneur can also get enterprise idea from the publications of
patents available for license or sale. Besides, there are some governmental agencies that assist
entrepreneurs in obtaining specific product information. Such information can also become
basis for enterprise formation.
(e) The Internet: The internet provides a means that enables higher levels c': communication
between people, companies and countries throughout the world. The internet by far is the
greatest business opportunity that you caz implore to grow your business.
(f) Research and Development: Research and Development (R&D) activity can be carried out in-
house or outside the organization. R&D activity suggests what and how a new or modified
product can be produce to meet the customers' requirements.

UNIT 2 EVALUATION, STEPS AND GUIDELINE OF BUSINESS OPPORTUNITIES

3.1 Evaluation of Business Opportunities
Entrepreneurs have begun and failed at new businesses. Most entrepreneurs actually fail to fully analyze
and evaluate business ideas and opportunities in the first place.
Whether starting a small business from scratch or purchasing an existing company or franchise, one
needs to take steps to evaluate the business s potential and one's abilities to make it successful.

3.2 Steps to evaluating business opportunity.

The five steps to evaluating business opportunity have been identified by Ray (2015).
(a) Self-Analysis: Considering the Willingness to take risks as well as the amount of time and energy
one needs to make the business a success While most small businesses fail is because of poor
management and the owner's inability to manage resources.
(b) Financial Components: evaluation of one's resources and availability of finance.
(c) Market Research: conducting feasibility of the project to determine its viability and ascertain the
existence of customers for the product or service; and what kind of competition exists.
(d) Risk Assessment: including factors that could negatively affect the business, such as the general
state of the economy competitiveness, health, the level of credit available.
(e) Support: evaluate the amount of support expected from family, friends and government.

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3.3 Guidelines for Evaluating Business Opportunities
The guidelines for evaluating business opportunities are:
1. Evaluation of own capabilities and abilities.
2. Determine to run the business enthusiastically.
3. Having complete knowledge of the product or service with which you are involved.
4. Market evaluation of the product or service to be offered. There must be need for the product.
5. Find from previous owners how successful the business has been for a period of time.
6. Determine the training and experience required to run the venture properly.

Before a person decides whether a business opportunity is suitable and which one should be viable,
certain information are needed to make an informed decision on what kind of opportunity is the best.\

UNIT 3 TYPES OF BUSINESS OPPORTUNITIES FOR ENTREPRENEURS

3.1 Types of Business Opportunities for Entrepreneurs
Many business opportunities abound everywhere only if one is creative enough to discover them.
Opportunities in them need to be discover not merely at the surface but in-depth.
Opportunities could also be created originally from one's idea. creativity and innovation.
(i) Buy a Franchise: This involves having an opportunity to start your business on already set-
up business. It is expected that such entrepreneurs buy a Franchise opportunity. A franchise
is an existing business with a solid business Identification and Evaluation of Business
Opportunities
(ii) Distributorship or Dealership: An important business opportunity is with distributorships
and dealerships. A distributor is a person or business agent that has an agreement to sell
products or services produced by another company.
(iii) Network Marketing: In addition to distributing the product or services offered by the parent
company, a network marketer also endeavors to recruit other distributors, hence creating a
network of distributors and earning considerable income through residual commission.
(iv) Licensing: Opportunity exists through licensing; which offers an entrepreneur the right to be
creative and invent product or service, but retaining the name brand, icon or trademark of
the widely recognized business.
(v) Finding and Filling a Niche: Another area where opportunities find attraction to the
entrepreneur is in finding or filling a small niche. A niche is small area where a business
opportunity is likely to bring profit. A well-timed product or service has a greater likelihood
of success in the market. Marketing the right idea into the right niche at the right time is an
awesome combination.

3.2 Lists of services in different sector that could be ventured into

Below are lists of services in different sector that could be ventured into:
Agric Resources:
(i) Cereals: Rice, Wheat Etc (ii) Plantation: Rubber, Palm, Casher, etc. (iii)Spices: Ginger, Pepper, Etc (iv)
Oiled Seed: Groundnuts, Soya Bean, Mustard. etc. (v) Fruits: Orange, banana, manso. e.t.c.

Forest Resources: can be renewable and non-renewable. Renewable: leaves, fruits, barks and flower and
Non-renewable: Timber. Fish farming, snail farming, poultry farming, domestic farming, animal farming
e.g. rabbit, sheep, goat, pig and other ruminants, crop farming e.g. rice, bean, yam, etc, grass cutter

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farming, mushroom farming, honey production, cassava processing for starch and garri, palm oil mill,
etc. These could be produced in commercial quantities.
Computer Science & IT Below are lists of services in the computer and IT sector that one could venture
on. Operating a cyber cafe, designing software for use in schools, bookshops, families etc. Computer
Training, IT training and consultancy, designing software to be used as tutorial lessons, computer graphic
design, business center. designing a website for job recruitment services.

3.3 Offline Business Opportunities

Book publishing, educational teaching aid, bookshop and stationary store, electronic store and repairs,
article writing, selling, online, advertisement on ones website, printing and lithographic, writing business
plan for people, estate agent (property managers, land, waste management services), digital
photography, solar panel sales & installation, magazine publishing, song writing/movie writing,
supermarket/general merchandise, building materials and block industry, soap production, recharge
card/phone business, tailoring and clothing, repair services, textile production, transportation business,
restaurant and fast food services, water bottling and packaging, pesticide and insecticide formulation,
event management, and landscaping.

UNIT 4 BUSINESS PLAN

3.1 Definition of Business plan
A business plan is a document demonstrating the feasibility of a prospective new business and providing
a roadmap for its first several years of operation.
Business plans are an important part of creating new businesses, whether as a startup or an offshoot of
an existing business.
Although the specifics may vary, here are the typical components of a business plan for a new business:

1. The executive summary is a nutshell version of the entire plan, briefly covering the essentials.
2. The business description describes the proposed new endeavor, explains its purpose and its target
market.
3. The plan's market analysis section describes the industry and the market environment of the
proposed business, including a profile of the competition.
4. The organizational and managerial section explains how you envision the structure of your business,
what type of positions and departments it will encompass.
5. The products (or services) section details what you're offering. This section should include a full
description of the products you'll sell and your plan for product life cycle management (PLM) .
6. The marketing and sales section explains your strategies for branding , marketing and selling your
product or service.
7. The funding request will differ according to what type of information is required by the funding party.
8. The financial projection covers the expected performance and milestones over the first years of
operation, usually five years. For an existing business, historical financial data should be included.
9. An appendix can include useful information that doesn't belong in any of the other sections. A
business plan is similar to a business model. However, the latter is a representation of how an existing
business works, rather than how a prospective business can work.

3.2 How to prepare, plan, define and implement a business idea

Business ideas are all within you and within your environment.
Some of these business ideas emanate from analysis of market and consumer needs, while others
emanate from a long research process plan and process already in place.

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An entrepreneur can operate a new business under a recognized business name and receive support
from the franchise headquarters with marketing, promotional materials, new business products or
services, etc.
3.3 Typical structure for a business plan for a start-up venture
cover page and table of contents
executive summary
mission statement
business description
business environment analysis
SWOTanalysis industry
background competitor analysis
market analysis
marketing plan operations plan
management summary
financial plan attachments and
milestones

CONCLUSION Business plans are decision-making tools. The content and format of the business plan is
determined by the goals and audience.
Venture capitalists are primarily concerned about initial investment, feasibility, and exit valuation. A
business plan for a project requiring equity financing will need to explain why current resources,
upcoming growth opportunities, and sustainable competitive advantage will lead to a high exit
valuation.
The success of a business is dependent on the quality of the business plan.

UNIT 5 CREATIVE ENTREPRENEURSHIP

Creativity is the innate ability, instinct, disposition and will to initiate a goal and strategically actualize
the goal. Creativity is a key quality of every entrepreneur.
Entrepreneurs are all those involved in self-employment is seizing available opportunities to generate or
get involved in activities that could be realized for self-development and profit making.

Naude (1999) 0bserved that entrepreneurship is the unquantifiable force, which brings together labour
and capital and assume the risks of production and distribution.

Self-employment therefore, can be summarized to mean the promotion of free enterprise and self-
sufficiency by creating and spreading wealth to the generation and social progress. In general, this
creative and self-employed person is known as an entrepreneur.

Creative entrepreneurship is the practice of setting up a business– or setting yourself up as self-

employed in one of the creative industries.
The focus of the creative entrepreneur differs from that of the typical business entrepreneur or, indeed,
the social entrepreneur in that s/he is concerned first and foremost with the creation and exploitation of
creative or intellectual capital.
Essentially, creative entrepreneurs are investors in talent– their own or other people‘s. The creative
industries generate substantial economic impact- and this impact and growth is outpacing every other
sector of the economy.

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CREATIVITY + TECHNOLOGY= EXPLOSIVE ECONOMIC GROWTH
Entrepreneurs, in general have always relied on their creativity to produce wealth, but the modern
creative entrepreneur goes further.
The value they create lies not in their physical products (if any) but in intangible assets such as their
brand, reputation, network and intellectual property.
They are adept at projecting a desired image and creating a personal brand, both online and offline.
They also understand the principles of intellectual property law and use copyrights, trademarks, patents
and licenses to exploit the full potential of their ideas.
Creative entrepreneurs are not freelancers. Freelancers earn a living by doing paid work for clients,
usually charging by the hour, day or project. Freelancers think in terms of―getting more work.

Creative entrepreneurs think in terms of creating opportunities, producing results and making profits.
This leads them to create systems and businesses that generate wealth and free up their time for their
next big idea.

3.2 Social Entrepreneurship

Social entrepreneurship is the process of pursuing innovative solutions to social problems. More
specifically, social entrepreneurs adopt a mission to create and sustain social value.
They draw upon appropriate thinking in both the business and non-profit worlds and operate in a
variety of organizations: large and small; new and old; religious and secular; non-profit, for profit, and
hybrid.
What are the guiding questions, best practices, skills, and tools social entrepreneurs need in order to
navigate a very challenging and often life-long vocation?

MOMENTOFOBLIGATION:
Why do I want to create change? Understanding our deepest motives and the values that both anchor
and drive us is powerful, and not least because it helps us stay true and focused in times of confusion
and exhaustion.
For some, personal motivation comes out of a single transformative moment. For others, it‘s more of a
slow burn, a growing conviction that change making is necessary to live a fulfilling life. Understanding
your moment of―obligation serves as a compass or a source of energy renewal during your life as a
change maker.

EXPLORATION:
What are my options? Knowing the source of your desire to make change is valuable, but what do you
do with it? You begin a phase of learning, sensing what the world needs and how that intersects with
your own interests.
Your strengths, weaknesses, blind spots, and core skills all come into play as you seek work that will
contribute to the change you want to see in the world and make a living at the same time. Gradually—
and this can take years—you come to know what you must do.

DECISION:
Am I ready to jump? People who have dedicated their lives to change making often have a story about
the moment they actually decided to take a leap of faith and start walking their talk. Regardless of
whether or you are born with privilege, the temptation to choose the―safe option is a large and
legitimate barrier.

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Change making is not for the faint of heart; it sometimes means putting your livelihood, even your own
life, on the line. Starting a dialogue with our deepest fears and those of people we love takes courage
and the ability to commit. It can mean switching careers immediately, or honing a craft or gathering new
experience for a while before making a switch.
ACTION:
How do I make my vision come alive? The daily grind of social change work, which often brings more
setbacks than victories, and the excruciatingly slow pace of genuine change requires that entrepreneurs
carefully monitor their energy to avoid becoming prematurely cynical or utterly exhausted. The point is
to stay―alive in the process of doing the work you choose, while building grit, resilience, and stamina
along the way. Importantly, the personal work involved in building these capacities also helps you better
understand the how to change others mind-sets, and thus becomes another tool for effectively working
for change.

TRANSFORMATION:
Who have I become now, and what‘s next? The personal demands while leading social change shape us
as individuals even as we shape a new world. Self-transformation is an inevitable part of social change
work.
Sometimes we change so much that we realise we must move on to a new project or career, which
constitutes a new―moment of obligation, and the cycle begins anew. The transformation phase also
helps us reap the harvest of our work, and formulate lessons and insights that others begin to seek out
from us as wisdom and teaching.

CONCLUSION In order to become a social entrepreneur there is a need to evaluate the moment of
obligation, exploration, decision, action and transformation.

MODULE 3
UNIT 1 ENTREPRENEURIAL SKILLS
3.1 The Entrepreneur and Skills Acquisition
To many researchers and academics, the entrepreneur is the focal point and key to the dynamics of
economic development and growth. It is the entrepreneur or self- employed person that put together
new combinations. Their actions have consequences on the basic of their organizational skills and
creativity as decision makers.

They identify distinctive opportunities, structures, setting, situation and other variables within which he
decision and choices are made. Entrepreneurs are risk bearers.

They are doers or action oriented, independent and always rely on their own ingenuity and energy to
plan and accomplish desired result. An entrepreneur as the decision–maker in a particular cultural
context commands a range of behaviours that exploit the identified opportunities.

Nwachukwu (2005) noted that an entrepreneur is any person who has the ability to see and evaluate
business opportunities, gather the necessary resources to take advantage of them and initiate
appropriate action to ensure success.

3.2 Basic Desirable Skills

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Extensive research information available from more advanced countries of the world confirms the fact
that there are desirable qualities which every person who aspires to be self-employed must possess
before success can be achieved.
Now that the world is a global village through technological break-through, growths and development, it
follows that these factors are generally applicable irrespective of the environment to which they belong.

In self-employment, there are actual risks which one must necessarily encounter. It includes the risk of
the capital with which the business is started in the case of fentreailure; the risk of the family
(wife/children) and friends when one gets choked with business activities; the risks of hard emotional
stresses as a result of business activities; the risk of hard emotional stresses as a result of business
failures, disappointment, hypertension (stroke).

It is important to observe that formal education assists a skilled entrepreneur in excelling in different
areas of human endeavor.
Entrepreneurship as a matter of fact is the careful management of the introduction of goods and the
provision of essential services for the maximization of profit bearing the attendant reasonable risks.

Entrepreneurs should be able to know how to employ the process of gathering both human and
material resources needed for starting a business venture and for its sustenance.
As managers of their establishment, entrepreneurs are involved in ensuring that the daily tasks are
creditably, carefully and safely carried out. They should be able to ensure the smooth running of the
enterprise so as to maximize profit, solve problems and plan for the future.

Acquisition of these basic skills will boost their operational efficiency. It will empower the application of
the arts of science in the management of their enterprises. The entrepreneurial function is the control
and management of an enterprise.
1) Accounting skills
2) Marketing skills
3) Management skills
4) Public relations skills
5) Communication skills
6) Record keeping skills

3.2.1 Accounting Skills

An entrepreneur‘s success is measured by how profitable the enterprise or firm is and the growth it has
recorded over the years.
This is so, in taking cognizance of the fact that these entrepreneurs are not experts in money
management or financial control. In other words, they are technically competent by their education/skill
training.
However, circumstances and situation arising from the day to day running of business necessitate that
good accounting records must be kept with regards to their customers, business associates, financial
institutions and general prudent financial management. It follows therefore that entrepreneurs need to
know how much money that comes into the business every day or week, how to determine the selling
price for their products, how much is spent every day week, month or year on raw materials, labor,
utilities and other miscellaneous expenditures.

It has been observed that many skilled entrepreneurs had gone bankrupt as a result of poor financial
management resulting from inadequate educational preparation.

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3.2.2 Marketing Skills
Marketing of products and services at a profit is the overall goal of every entrepreneur.
The sole aim of marketing is to ensure that the product or services required by the customers or
consumers are made available at affordable prices with a good profit margin.

Nwachukwu (2005) is that entrepreneurs must be able to determine the customers‘ needs and devise
how best the need would be met; judiciously select the market to be served and identify the possible
advantages at their disposal so as to be able to compete favorably with other competitors or have an
edge over others.

The entrepreneurs need to know he markets and where they are located, plan for effective customer
and products services, correctly price their products in order to make distribution channels and be able
to carry out good advertising of their products with efficient sales promotion.

The fulfillment of these goals is dependent on the entrepreneurial educational attainment of the
entrepreneur. Therefore, marketing skills are very imperative for goal achievement and economic
growth.

3.2.3 Management Skills

Management skills are abilities acquirable through entrepreneurship education. The problems arising
from lack of entrepreneurship education seem far more serious than those connected with the mere
shortage or lack of capital.

In every entrepreneurship endeavor, there are entrepreneurial skills or competencies that are needed
and which one must be acquainted with to ensure the success of the enterprise. Before a good plan can
be made, a decision to make the plan must be taken.

According to Osuala (2004) acquisition of management skills through entrepreneurship education is

indispensable towards producing a self-reliant nation with dynamic economy.
The management skill or competencies to be acquired include:
i. Planning
ii. Organizational skills
A fundamental skill acquirable through entrepreneurship education is planning skill.
Planning is at the core of entrepreneur‘s activities. Before good plans could be achieved, good decisions
must be made.
A decision is a process that leads to taking of an action. An entrepreneur must make decisions. The
outcome of the decision could mean the success or failure of the business.

It should be pointed out that often, the lack of planning skills makes entrepreneurs procrastinate when
it comes to decision-making, forgetting that the absence of a decision to act is a decision on its own.

As it is often said, that when one fails to plan the person is planning to fail. Areas affected in such
apparent lack of planning skills include:
--- Planning to increase sales volumes
--- Increase in the quantity of goods to be produced, or to improve the quality of such goods.

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--- Planning skills to cut down on cost and jeopardizing production.
--- Planning skills to expand facilities, employ new hands, and remove dead woods.
--- Planning skills to buy or sell a new item or equipment.
All these involve one or both of the following as a rule:
i. Expenditure of more money, that is financial prudence and or
ii. Maximization of or the use of material and human resources to achieve the stated goals
(effective management)
According to Bucher (1979) and Nwachukwu (2005) planning, whether in business ventures or
administrative processes, is very important. It is the foundations for making things happen. Good
planning is an important attribute of an entrepreneur as part of the problem-solving approach; it
requires taking some steps, which include;
a. Recognition of the problem,
b. Identifying the alternatives,
c. Coordinating human and material resources for effective implementation of the decision taken
so as to ensure successful launching of the business or entrepreneurship programmes.
d. An appraisal or evaluation is the last stage of the continuum. It analyses the success and failure
of the entire process. The information so collected will be useful in formulating policies.

Ability to organize the thoughtful plan as a management tool is essential to the efficient running of the
business.
Organizational skills are needed to guide the entrepreneur in the day-to-day running of the business for
the achievement of the set goals.

3.2.4 Public Relations Skills

According to Robert and Tim (1998) all managers must have to consider the public impact of their
actions.
Public relations (Robert and Tim, 1998) are the term used to describe the way issues and messages are
communicated between an organization and the public.
Accordingly, public relations are indispensable in every thriving organization in order to keep in touch
with and responding to the media and interest groups.

3.2.5 Communications Skills

According to Longman (2005) communication skills are ways and abilities for expressing oneself well so
that others can understand.
Communication is a process by which people exchange information, thoughts and feelings.
It is a means through which self-employed craftsmen and artisans communicate and reach both internal
and external persons that are associated with their organization. Entrepreneurs can arouse the interest
and curiosity of their customers through effective communication skills.

CONCLUSION The success of any enterprise is based on the skills possessed by the entrepreneur in
charge. An entrepreneur with high level of skills will do well in handling an enterprise while a lack in
these skills can lead to failure of the enterprise.

UNIT 2 SWOT ANALYSIS

3.1 Evaluate your strengths, weaknesses, opportunities and threats

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SWOT analysis is an exercise meant to identify your strengths, weaknesses, opportunities and threats-
hence the acronym―SWOT‖. Taking a critical look at internal and external factors that impact your
business arms you with knowledge that
can help you plan, manage or grow your business. It can help you meet challenges or take advantage of
business opportunities.

3.2 Identify your strengths and weaknesses

An internal analysis is meant to determine where you have an advantage over your competitors, and
where you are not as strong.
--- Identify success factors for your industry or market segment.
--- Assess your competitors' competencies with respect to these factors.
--- Compare them to your own strengths and weaknesses to determine where you mayhave a
competitive advantage.

The success factors can vary depending on your industry. They include comparing your abilities to your
competitors for factors such as:
i. Marketing: market share, reputation for quality and service, distribution costs, geographical
coverage, promotion and sales force effectiveness.
ii. Manufacturing: Facilities, economies of scale, capacity, workforce availability and skills, on-
time delivery, technical manufacturing skill.
iii. Finances: Availability of capital, profitability, financial stability.
iv. Organization: Employee dedication, flexibility and responsiveness.
Since it can be difficult to be objective when evaluating your own strengths and weaknesses, soliciting
the views of your employees, customers and suppliers can help.

3.3 Identify opportunities and threats

An external analysis takes a closer look at the industry and markets where you do business by identifying
opportunities and threats. You will want to find out:
Which opportunities could increase your profitability? Examples could include:
--- increased demand for your goods or services
--- access to new markets
--- new products and services that can fill a need
--- efficiencies in your operations
--- few or weak competitors
--- market not segmented
--- higher profit margins
--- stable price structure
--- low risk

What threats can affect your profitability?

--- obsolete products or services
--- shrinking market
--- existing or new competition
--- upcoming regulatory changes
--- increased market segmentation
--- reduced availability of materials
--- increased supplier prices
--- foreign exchange fluctuation

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--- inflation or economic stagnation
--- political or social changes
--- environmental factors
--- takeovers or mergers

Done well, a SWOT analysis can provide a good scan of your business environment. It can help identify
opportunities you may have overlooked and prepare you to meet challenges.
A SWOT analysis should not be depended upon solely, but used in conjunction with your arsenal of
planning and management tools.

CONCLUSION SWOT Analysis is a useful technique for understanding your strengths and weaknesses,
and for identifying both the opportunities open to you and the threats you are likely to face.

UNIT 3 PROBLEMS OF ENTREPRENEUR

3.1 Problems of Entrepreneurs
Problem means difficulty, hardship or perplexing situation. When we say problems of Nigerian business
entrepreneurs we are referring to the difficulties faced by business organization and their owner
situated in Nigeria.
Lawal (1993) notes problems are threats or limiting factors, that is, the factors that have negative impact
on success, growth and survival of the entrepreneurs' business enterprises.
These problems are within the enterprise in such case they are referred to internal management
problems.
They could also be from the environment external to the enterprise in that case called external factors
facing the enterprise.

The internal environmental forces or influences are those that affect the enterprise separate entity.
They consist of functional structure and relationships in the enterprise are often called organizational
climate or internal working system.
The main element internal environment include finance, marketing, production, organization, planning,
personnel (Lawal, 1993).

The forces that affect a business unit as well as other enterprises operating within the environment are
known as external environment.
They are external to the enterprise cannot be effectively controlled by entrepreneurs.
They are relevant for the success of the organization and have to be carefully monitored.

They can be further classified into direct and indirect elements.

The direct elements are those that have immediate impact task, and consist of individuals or groups
having tremendous influence on the attainment of the enterprise goals.
They often have long-standing relationship with the enterprise include; shareholders, customers,
financial institutions or creditors,suppliers, organizations, government agencies, public and local
communities.

The indirect action elements in the environment include: Socio-cultural, technological, economics,
political/legal and international environments (Ogundele, 2004). Lawal notes that an example of the
environmental impact on the business is the on-going Structural Adjustment programme (SAP).

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3.2 Internal Problems
The internal problems that affect the small scales enterprises particularly and other enterprises in
general Lawal, Kio, Sulaimon and Adebayo (2000) include the following:
1) Wrong Choice of Business: Entrepreneurs should avoid entering into business opportunities that are
already over-crowded. Choosing a wrong investment area may lead to failure.
2) Lack of Business Connection: This relates to inability to establish good relationships with customers,
creditors and government agencies. These may lead to business feature.
3) lack of expert: Expert knowledge in area of organizational activities is important, lack of
organizational knowledge can be problematic.
4) Poor Financial Management: This relates to inability to maintain proper accounting records.
5) Management Incompetence: Majority of small scale enterprises entrepreneurs in Nigeria lack
required management know- how to run the business effectively and efficiently.
6) Over Stretching of Credit: most small business organizations who are eager to make sales often
extend undue credits to customers, without appropriate methods cash of collection.
7) Wasteful Expenses: Expenses must be kept to essential minimum for the success of the enterprise.
Many Nigeria enterprises indulge in excessive and wasteful expenses.
8) Inventory Problem: There could be problem of overstocking or purchase of slow moving products,
with consequent cost implication.
9) Location Problem: Poor location in relation to customers may affect business success.
10) Absence of Production Improvement Techniques: These include the use of such management
techniques as management by objective (MBa) organization and method, work-study etc.
11) Unethical Business practice: These include dishonesty, poor quality product, bribery, corruption and
other acts of indiscipline. They contribute to business failure.
12) Lack of Adequate Attention: There are often neglects of the business by the owners, resulting from
poor habits, poor health, marital problems and several others.
13) Personal Characteristic: The characteristics of the owner of the enterprise can be a cause of failure
or success. For the success of an enterprise the owner must be mature in judgment, have balance and
aggressive diplomatic character.
14) Marketing Problem: This can manifest in a variety of ways e.g. non standardization of product,
inappropriate pricing, poor promotional strategies etc.
15) Lack of Qualified Manpower: In the case of small-scale business enterprises they cannot afford to
employ competent and skilled manpower due to their financial stature and reputation.
16) Lack of Employee Satisfaction: In most Nigerian enterprises the general working conditions are very
poor. There is also autocratic leadership style of some of the entrepreneurs and these constitute
problems for the organization.

3.3 External Problems

The external problems confronting enterprises in Nigeria are equally many and varied. They include
among others the following;
1) Capital Problem This relates to securing long-term equity capital and working capital. In the case
of small-scale enterprise they have serious problem in term of securing fund, building and
maintaining adequate financial reserves and equity capital.
2) Competition There is problem of competition against large corporation with small-scale
enterprises due to the competitive advantage of the giant firms. The competition among the big
firms often sometimes takes unethical dimensions.
3) Technological Problem In the case of small indigenous enterprises lack of access to technology
often affects the success of small enterprise. In addition all organizations in Nigeria are open to
technological competition from the global environment.

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 4) Lack of raw materials There is often problem of shortage of raw materials, such that small
organization does not secure adequate outputs for production.
5) Deficient Policy Framework The political environment in term of economic policy framework
and legal regulation can be problem to all forms of enterprises. There could be unfair
regulations from local authority, state and federal government. In addition, inadequate
organizational facilities and cumbersome laws can be problems of enterprises.
6) Limitation of Extension Services In the case small-scale enterprises there are often limited
services of research institutions, industrial development centers, management institutions and
other intermediate framework designed for the success of small-scale business.

CONCLUSION Problems and challenges that cannot be avoided in a business and if the problems are well
managed, they can become stepping stones to take the business to the next level of success but if the
problems are not well managed, it can lead to the extinction of the business.

UNIT 4 BUSINESS MANAGEMENT TECHNIQUES

3.1 Business management techniques that can minimize listed problems

Ogundele (2004) notes that techniques refer to methods or procedures of doing things.
When applied to management they are those procedures or approaches employed in the process of
getting things done efficiently and effectively.
There are many approaches to management as there are practitioners, organizations and nations.

Individual entrepreneurs or team, organizations and nations introduce variations, which they employ in
addition m new or existing approaches, which are relevant and consistent with their perceptions and
situations.

Some of these techniques, in use in the management of both public and private organization, are
outlined hereunder: -

3.2 Management by Objective

This is a technique, which is result-oriented. It can be described as participative management control
(PMC) or control by self-control. As a management technique of MBO is to assist the entrepreneurs
attain their objectives. The central frameworks of MBO are
1) Definition of basic purpose or mission
2) Identifying overall key objectives
3) Analyzing the situation
4) Setting specific objectives for solving problems
5) Implementation of action plan and review of progress

The chief executive, entrepreneurs and rank-and-little members take active part in all these processes.

3.3 Project Management Technique

It is concerned with all tasks and activities to carry out an going project. The project management
unique features rest in
1) The temporary nature of the task structure
2) The interdisciplinary nature of task
3) Concentration of entrepreneur or management attention on limited range of activities

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4) The relative action impelled autonomy of the project organization

3.4 Strategic Management

This is the process of making and implementing decisions that have long term impact and lead to
change.
It is about the process of strategic change. Bowman and Asch (1987) define it as the match an
organization makes between it‘s own resources and the threats and opportunities created by the
external environment in which it operates.
The fundamental tasks of strategic management are
1) Environment analysis
2) Developing corporate vision
3) Strategy formulation
4) Strategy implementation
5) Strategy control.

Entrepreneurs have to orientate their organization to meet the challenges posed by the environment
and competition.

3.5 Team-Building Technique

A team consists of people interacting with one another towards the achievement of a common
objective.
Membership of a team does vary from one team to another, the smaller the number of people, the
better conditions for team building include;
1) Existence of a common goal
2) Critical relationship existing within the team for free expression of opinion by members
3) Objective to be attained must be of fairly long duration
4) Team goals must be adhered to by members
5) Identification with team goals by members
6) Existence of common symbol for team members‘ identification

Team management is an emerging paradigm in management technique that can be adopted and applied
for effective management of organization.

3.6 Total Quality Management

This management technique focuses on constantly satisfying the customer. Satisfaction could be in
terms of product qualify, costs, flexibility and efficiency delivery. It involves making constant efforts to
identify what customers wants from tune to time and determining how best to cater for them.

The elements of Total Quality Management (TQM)

1) It addresses the issue that is most important to every customer
2) It ensures that owners and shareholders of companies get good returns on their investment 3)
Adoption of environment friendly models of operation.
These strategies derive from the realization that output is strictly a function of input and that quality is
the result of input and the manner of usage.

3.7 WorkStudy

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This technique is focused on studying the requirements of a task in order to find better ways of doing it.
Time study is included in work-study. It calls for the application of sensitivity analysis so as to obtain the
needed cooperation from all the people involved in its use. Work study is a technique of wide usage, as
such, it could be applied in established departments, and product, and in the design and layout of new
factories, for efficient and easy production (Ndiokho, 1994).

CONCLUSION An entrepreneur must understand and be well established in the knowledge of the
various techniques that can be used to minimize/manage the entrepreneurial issues.

UNIT 5 MANAGEMENT CONCEPTS

3.1 Management concepts
There are several new and emerging concepts that could be profitably applied to the operations of
Nigerian organizations, private and public.
These include amongst other managerial effectiveness strategies, re-engineering managerial values,
entrepreneurial venture, motivational technique, Kaizen, a tool for managing change, knowledge
management for organizational excellence, holistic management, new public management, creativity
and several others.

3.2 Holistic Approach Management

This approach has its root in India practice. It is based on the consideration of the human individual as
unique living entity, having self-consciousness and that the human self is a complex body, mind, heart,
intellect and spirit soul.
We have to play equal attention to all the aspects of human personality and consider him as a whole or
complete being, having practically unlimited potential energy and power to develop himself and acquire
perfection, so that he can enjoy all round internal and external harmony and progress.
This is called holistic approach in self-management and management of any enterprise (Sherlekar,
2011).

3.3 Kaizen Management Approach Khan (2000) noted that the concept originated from Japanese
words KAI, meaning change and ZEN, meaning betterment. It is otherwise called―continuous
improvement.
Kaizen is, thus, a continuous process of improvement carried out by the person who is doing the job in
the day-to-day workplace.
It involves everyone, managers and workers alike, for on-going improvements. The philosophy
emphasizes continuous improvement in our ways of life; work life, social life, home life.
It has resulted in tremendous changes in management policies not only in Japan but also all over the
world. In practicing Kaizen,

1) Entrepreneurs
2) Top management personnel
3) Middle management personnel
4) Supervisors
5) Low-level workers are all involved

3.4 New Public Management

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This is a new approach already adopted by advanced economies in the management of public sector, in
Sweden, France, Australia, Canada, USA, Germany, Japan and others. It has the following merits

1) Devolving authority providing organization

2) Ensuring performance control and accountability
3) Developing competition and choice
4) Providing responsive service
5) Improving the management of human resources
6) Optimizing information technology
7) Improving the quality of regulation
8) Strengthening steering function at the center

CONCLUSION These 3 techniques discussed above are selected because they relate to issues of value
ethical dimension, dedication to all constituencies, change of attitude on the part of our public
institutions in the management of national resources.

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