centertop00 HASSAN ABDULLAHI HUSSEIN 648520 ENT4020-A MANAGEMENT OF ENTREPRENURIAL VENTURES Lecturer SIMON KAMURI Task TRM PAPER 21st JULY 2018 -18415115379500 Table of Contents TOC o “1-3” h z u INTRODUCTION PAGEREF _Toc519248111 h 3THEORIES OF ENTREPRENEURSHIP PAGEREF _Toc519248112 h 3ECONOMIC THEORY PAGEREF _Toc519248113 h 3PSYCHOLOGICAL THEORY PAGEREF _Toc519248114 h 4SOCIOLOGICAL THEORY PAGEREF _Toc519248115 h 4MANAGEMENT THEORY PAGEREF _Toc519248116 h 4TABITHA KARANJA
centertop00
HASSAN ABDULLAHI HUSSEIN
648520
ENT4020-A
MANAGEMENT OF ENTREPRENURIAL VENTURES
Lecturer
SIMON KAMURI
Task
TRM PAPER
21st JULY 2018
-18415115379500
Table of Contents
TOC o “1-3” h z u INTRODUCTION PAGEREF _Toc519248111 h 3THEORIES OF ENTREPRENEURSHIP PAGEREF _Toc519248112 h 3ECONOMIC THEORY PAGEREF _Toc519248113 h 3PSYCHOLOGICAL THEORY PAGEREF _Toc519248114 h 4SOCIOLOGICAL THEORY PAGEREF _Toc519248115 h 4MANAGEMENT THEORY PAGEREF _Toc519248116 h 4TABITHA KARANJA: KEROCHE BREWERIES PAGEREF _Toc519248117 h 4SOCIOLOGICAL THEORY PAGEREF _Toc519248118 h 5Why Tabitha Karanja is an Entrepreneur PAGEREF _Toc519248119 h 5ENTREPRENEURIAL STRATEGIES PAGEREF _Toc519248120 h 6EVANS WADONGO PAGEREF _Toc519248121 h 7MANAGEMENT THEORY PAGEREF _Toc519248122 h 7Why Evans wadongo is a an Entrepreneur PAGEREF _Toc519248123 h 7ENTREPRENEURIAL STRATEGIES PAGEREF _Toc519248124 h 8DORCAS MUTHONI FOUNDER OF OPEN WORLD LTD PAGEREF _Toc519248125 h 8ECONOMIC THEORY PAGEREF _Toc519248126 h 9Why Dorcas is an Entrepreneur PAGEREF _Toc519248127 h 9ENTREPRENEURIAL STRATEGY PAGEREF _Toc519248128 h 9JACQUELINE KIAGE FOUNDER OF INNOVATION EYE CENTER PAGEREF _Toc519248129 h 10PSYCHOLOGICAL THEORY PAGEREF _Toc519248130 h 10Why Jaqueline is an Entrepreneur PAGEREF _Toc519248131 h 11ENTREPRENEURIAL STRATEGY PAGEREF _Toc519248132 h 11
INTRODUCTION
Entrepreneurship is the creation of an innovative economic organization (or network of) for the purpose of gain or growth under conditions of risk and uncertainty – Dollinger (1999). Entrepreneurship is the process of looking for businesses opportunities in conditions of risk. “Any attempt at new business or new venture creation, such as self-employment, a new business organization, or the expansion of an existing business, by an individual, a team of individuals, or an established business.” (Reynolds et al., 1999). With the above definitions of entrepreneurship we came up the a common definition which is , Entrepreneurship is to the process of creating something new and of value by giving it time and effort accompanied by the financial backing and in the long run receiving the desired results which may be personal satisfaction for instance. With this definitions comes a question which is who is an entrepreneur? The word entrepreneur springs from the French word ‘entrepreneur’ which is ‘to undertake or to try’.Kuratko and Hodgetts (2001) define entrepreneurs as “individuals who recognize opportunities where others see chaos or confusion. They are aggressive catalysts for change within the marketplace”. From this definitions we come up with a common definition of an entrepreneur which is, an entrepreneur is someone that establishes a brand new entity to supply a brand new or existing product or service into a brand new or existing market, whether or not it’s for a profitable cause or non-profitable cause.
THEORIES OF ENTREPRENEURSHIPEntrepreneurship is to the process of creating something new and of value by giving it time and effort accompanied by the financial backing and in the long run receiving the desired results which may be personal satisfaction for instance. There are four theories that explain how entrepreneurs come about. This theories are namely the economic theory, psychological theory, sociological theory and management theory.
ECONOMIC THEORYAccording to the economic theory it states that entrepreneurs find most favorable economic opportunities and they take risks for profit pay-off. Entrepreneurship and economic growth take place when the economic conditions are favorable economic incentives are the main motivators for entrepreneurial activities this include taxation policy, industrial policy and sources of finance.
PSYCHOLOGICAL THEORY
According to the psychological theory entrepreneurs have personality characteristics that differentiate them from others ; can help us predict who will be a successful entrepreneur, this characters include need for high achievement, a vision or foresight, ability to face opposition. These characteristics are formed during the individual’s upbringing which stress on standards of excellence.
SOCIOLOGICAL THEORY
According to this theory Entrepreneurship is likely to get a boost in a particular social culture. Society’s values, religious beliefs, customs, taboos influence the behavior of individuals in a society. Thus the entrepreneur performs according to the expectations of society.
MANAGEMENT THEORYThose with business administration and managerial skills are more likely to start businesses. According to this theory an entrepreneur come about when he/she engages in a business that he has the personal skill and experience to coupe with and profits from that endeavor.
Below are some real life cases of successful entrepreneur that help us better understand the theories if entrepreneurship.
TABITHA KARANJA: KEROCHE BREWERIES
Tabitha Karanja is founder and chief executive officer of Keroche Breweries. She is one of Kenya’s leading entrepreneurs, and an example of a girl with a dream who succeeded against all odds. Tabitha selected to venture wherever none before her had dared. She decided to take on a business monopoly that was almost ten decades old and entered a field with a deeply entrenched male gender stereotype.
She her quit employment in a government office and Mrs. Karanja joined her husband who had a hardware store in Naivasha. She felt the necessity to travel into producing, however she didn’t understand that sector specifically. She did some analysis to find out which route to take and in doing so she found out that there was a gap within the liquor business. The lower market finish had been neglected by the current players. Thus as a corporation they set to return up with a product that was hygienically created that met international standards and was reasonable. She started Keroche Industries in 1997 at the age of thirty two that later become Keroche breweries.
SOCIOLOGICAL THEORY
Associated with social conditions and a person’s distinctive background, culture, family background and life path changes. This theory says that the social conditions from that entrepreneurs emerge and therefore the social factors that influence their call in business. The entrepreneur is likely to get a boost if the society’s values favor’s it. This values and religious beliefs influence the behavior of individuals in a society thus making the entrepreneur a role model, and performing according to the society’s expectations.
In accordance with Tabitha Karajan’s case we can say that the sociological theory gives entrepreneurship a boost as we can see the positive pull explained in this theory evident in her life which is the support she had gotten both morally and financially from her husband that encouraged her to start this venture. We can also see the positive push in that she had due the research and had the knowledge of the market before venturing into it which placed her in a better position to identify the gap in the market that she exploited.
Why Tabitha Karanja is an Entrepreneur
Entrepreneurship is to the process of creating something new and of value by giving it time and effort accompanied by the financial backing and in the long run receiving the desired results which may be personal satisfaction for instance. An entrepreneur is someone that establishes a brand new entity to supply a brand new or existing product or service into a brand new or existing market, whether or not it’s for a profitable cause or non-profitable cause. From the above descriptions of an entrepreneur we can see that Tabitha Karanjan is an entrepreneur because she has established a new entity to supply products to neglected group of customers in an existing market to profit from it and by doing saw she has shown the characteristics of an entrepreneur, which for one is her determination and commitment is very strong in that she decided to take on a business that was way older than her and in doing so she went from a woman with a vision to one of the most successful entrepreneurs of Kenya. She is an entrepreneur because she saw an opportunity in the market, jumped on the opportunity and gathered the factors of production to manufacture her products and sell at a profit. She is also a risk take but a calculated risk taker in that she jumped in a venter to offer new products to group of customers that were neglected by other players which she noticed from her extensive research which she conducted on the market.
ENTREPRENEURIAL STRATEGIES
She applied two entrepreneurial strategies which are parallel competition and product development. Starting with parallel competition we can see Tabitha karanja introduced parallel products to the market and in doing so she got second mover advantages in the alcohol market which they used to their advantage.
She also o used new product as she was the first to target the lower end market which gave her first mover advantages which she gained the public attention and recognition from her competitors and customers.
EVANS WADONGOGrowing up in African country (Kenya), he used strain reading his school work by use of a dim light of oil powered lamp. Currently he’s creating solar-charged lanterns and putting them to use to spur economic development. As a student at the Jomo Kenyatta University of Agriculture and Technology, he happened to examine lights made of LEDs and thought of what it would take to bring LEDs to little villages for general lighting. Wadongo designed a solar lamp that he calls ‘MwangazaBora (Swahili for “Good Light”) in 2004 as some way to deal with poor education, temperature change, health and poorness in rural areas. He named the project ‘Use solar, Save Lives’ as he aimed to use star technology as some way to avoid wasting lives within the poor communities he grew up in. He started to design a producing system for portable solar powered LED lamps would be recharged by daylight. As of now several such lamps are already purchasable commercially and this lamps are making their way into villages in poor countries. Wadongo set that his lamps would be created in native workshops (Talbot, 2013).
MANAGEMENT THEORY
This theory states that new enterprises formed because of rational decision making in which a specific set of skills are applied which are very important. Entrepreneurship is likely to get a boost when the entrepreneur has the specific set of skill or the knowhow on what to do in a venture as this motivates them enough to start.
In relation to the case of Evans wadongo we can see the management theory evident as he was an electronic and computer engineer and with this he had the skills required to see this problem of lighting in the rural areas and come up with a solution that was reasonable and that helped the lives of the people while still profiting from it.
Why Evans wadongo is a an Entrepreneur
An entrepreneur is someone that establishes a brand new entity to supply a brand new or existing product or service into a brand new or existing market, whether or not it’s for a profitable cause or non-profitable cause. Entrepreneurship is to the process of creating something new and of value by giving it time and effort accompanied by the financial backing and in the long run receiving the desired results which may be personal satisfaction for instance.
From the above definitions we can say that Evans wadongo is an entrepreneur because he has established a new product to target an existing customer with the for profit and in doing so he created an new entity which was Mwangazabora and backed it with the enough time and money to achieve the desired results which in this case were to provide light to the poor people of in rural areas and better their life’s. He also demonstrated creativity in coming up with a product that was new unique and very useful.
ENTREPRENEURIAL STRATEGIES
He used product development as a strategy to penetrate the market as he made a new product that was very useful and cheap to help better the lives of the poor. First mover advantages which he got from the attention of the media to penetrate the market.
DORCAS MUTHONI FOUNDER OF OPEN WORLD LTD
Her story of success started a few years back once she started making networks for universities. She was amongst the very first women engineers to be associated with the Kenya educational network. Later she started up AN open supply company referred to as Open World that develops software package for e-government, and in 2004 supported a company referred to as AfChix, a technical capability building initiative for ladies within the region. For over five years in Republic of Kenya and across continent, AfChix’s activities have been organizing annual career conferences with a special stress on the uptake of computer engineering careers amongst young girls and high school ladies. This is her greatest passion. She has trained many ladies in several African countries that have AfChix chapters, and have trained different girls. She has additionally started a mentorship program in high school and this concerned bringing together ladies from secondary schools everywhere in the Republic of Kenya and alluring lady engineers, lady internet developers, and lady computer engineers to mentor the ladies and provides them with information and advice from their specific fields. This has had a serious impact over the last ten years. This offers her nice joy to ascertain such a lot of nice girls engineers from varied disciplines emerge.
ECONOMIC THEORY
According to the economic theory it states that entrepreneurs find most favorable economic opportunities and they take risks for profit pay-off. Entrepreneurship and economic growth take place when the economic conditions are favorable economic incentives are the main motivators for entrepreneurial activities this include taxation policy, industrial policy and sources of finance.
In relation to the above case study we can see that Dorcus role being an entrepreneur was to find opportunities and the most favorable economic tasks to profit from and in her case this was when she started developing software packaging for e-government which the government encouraged her to do and from this Open World was born.
Why Dorcas is an EntrepreneurAn entrepreneur is someone that establishes a brand new entity to supply a brand new or existing product or service into a brand new or existing market, whether or not it’s for a profitable cause or non-profitable cause. Entrepreneurship is to the process of creating something new and of value by giving it time and effort accompanied by the financial backing and in the long run receiving the desired results which may be personal satisfaction for instance.
In relation to the case study above we can see that the Dorcas is an entrepreneur from her characteristics for instance we can say that she is a risk take in that she went from making software for universities to making it for the government .she also has the burning desire to be her own boss as she never wanted to work under anyone else. She also recognized the opportunity to grow from making software for university to the government which came with a lot of advantages. Need for achievement in that she had that desire to accomplish great things as is seen when she became one of the first women to engineers to be associated with the Kenya education network.
ENTREPRENEURIAL STRATEGY
Business level in that she knows how to compete in a specific industry in that she know all the players and she has had experience in the field of software creation. First mover advantages that she enjoyed by being one of the first to enter the software development in Kenya.
JACQUELINE KIAGE FOUNDER OF INNOVATION EYE CENTERJacqueline is a visionary lady. She was born and raised in rural African country (Kenya), and throughout her own life, she perpetually had the will of giving rural Kenyans a better life. After her Bachelor of Science degree in biology and Chemistry, she married her student sweetheart Daniel, a young eye specialist hailing from the western region of Kisi. They raised a family in Nairobi wherever Daniel worked in varied hospitals. At that point, Jacqueline set to become a businessperson, as she had a huge want to start-up a venture in dealing with people problems. In 2012, she registered in the Master in Business Administration offered by ALTIS in partnership with the Tangaza University faculty in Nairobi, originally with the business plan of putting in a distribution network of solar lamps. When six months of testing, Jacqueline realized that the real unmet want in rural Kenya was health, specifically eye surgery in Western Kenya, a part with a high incidence of preventable vision defect equivalent to eye disease. Investing on Daniel’s technical competency, the couple set to start out the “Innovation Eye Centre”, an accessible clinic adopting a Social Enterprise model placed in Kisii city. Few folks would think about establishing a personal health facility in Kenya’s rural areas as several patients there cannot afford private care. However, several public health establishments face personnel, instrumentation and essential provide shortages, creating the necessity for cheap private care in rural households even more aging.
PSYCHOLOGICAL THEORY
According to the psychological theory entrepreneurs have personality characteristics that differentiate them from others ; can help us predict who will be a successful entrepreneur, this characters include need for high achievement, a vision or foresight, ability to face opposition. These characteristics are formed during the individual’s upbringing which stress on standards of excellence.
This is evident in Jaqueline’s case in that she the personal traits that differentiate her from the others in that her need for achievement is evident from the beginning she wanted to enter a venture that dealt with solving peoples problems and this character of hers was formed while she was young
Why Jaqueline is an Entrepreneur
An entrepreneur is someone that establishes a brand new entity to supply a brand new or existing product or service into a brand new or existing market, whether or not it’s for a profitable cause or non-profitable cause. Entrepreneurship is to the process of creating something new and of value by giving it time and effort accompanied by the financial backing and in the long run receiving the desired results which may be personal satisfaction for instance.
In relation to Jacqueline’s case we can say that she is an entrepreneur in that she saw the opportunity and took it to open a private health center that was concerned with eyes and named it Innovation Eye center. She also has the need of helping other which is a character common amongst many entrepreneurs we can see this in the event that she stop her project that was making solar lamps to take the more serious problem being faced by the poor people of kisii. She also has an eye for sporting good business opportunity in that only a few people would think of opening a private eye center in the rural parts of Kenya.
ENTREPRENEURIAL STRATEGY
We can say that she used new product as she was the first to bring an eye clinic to the rural parts of kisii which gave her good public awareness and a lot of attention recognition. She also used resource based view in that she used the resources that are rear in which in this case was the lack of good eye clinics in the region and the cheap rent because of its location and penetrated the market to become successful.
