CAMS LEVEL I
PAPER NO. 1 Principles Of Entrepreneurship And Management
UNIT DESCRIPTION
This unit covers the competencies required to apply principles of entrepreneurship and management. It involves identification of concepts of entrepreneurship, developing viable business ideas, choosing an appropriate business entry option, choosing an appropriate source of business finance, operationalising a business and managing a business.
LEARNING OUTCOMES
A candidate who passes this paper should be able to:
• Identify concepts of entrepreneurship
• Develop viable business ideas
• Choose an appropriate business entry option
• Choose an appropriate source of business finance
• Operationalise a business
• Manage an organisation
CONTENT
1. Concepts of Entrepreneurship
1.1 Definitions of key terms:
1.1.1 Entrepreneurship
1.1.2 An entrepreneur
1.1.3 Intrapreneurship
1.1.4 Entrepreneurial culture
1.2 Characteristics of entrepreneurs
1.3 Types of entrepreneurs
1.3.1 Innovators
1.3.2 Drone
1.3.3 Fabian
1.3.4 Imitating
1.3.5 Researchers
1.4 Types of entrepreneurship
1.4.1 Small business entrepreneurship
1.4.2 Large company entrepreneurship
1.4.3 Scalable start-up entrepreneurship
1.4.4 Social entrepreneurship
1.4.5 Innovative entrepreneurship
1.4.6 Hustler entrepreneurship
1.4.7 Imitator entrepreneurship
1.4.8 Researcher entrepreneurship
1.4.9 Buyer entrepreneurship
1.5 Benefits of entrepreneurship
1.6 Rationale for entrepreneurship
1.7 The role of an entrepreneur in business
1.8 Challenges faced by entrepreneurs
1.9 Benefits experienced by entrepreneurs
1.10 Entrepreneur’s contribution to the country
1.11 Role of government in promoting entrepreneurship
2. Viable business ideas
2.1 Methods of generating business ideas
2.1.1 Focus groups
2.1.2 Brainstorming
2.1.3 Problem inventory analysis
2.2 Sources of business ideas
2.3 Evaluating business ideas
2.4 Selecting a business incubator
2.4.1 Definition of an incubator
2.4.2 Factors to consider when choosing an incubator
2.5 Steps of testing a business idea
2.6 Factors to consider when choosing a business plan
2.7 Qualities of a good business idea
2.8 Components of a business plan
2.8.1 Cover page
2.8.2 Table of contents
2.8.3 Executive summary
2.8.4 Business description
2.8.5 Market analysis
2.8.6 Customer analysis
2.8.7 Competition analysis
2.8.8 Operations and production plan
2.8.9 Marketing plan
2.8.10 Human resource plan
2.8.11 Financial plan
2.8.12 Appendix
3. Choose an appropriate Business entry option
3.1 Business entry option
3.1.1 Sole proprietorship
3.1.2 Buy an existing business
3.1.3 Franchising a business
3.1.4 Inheritance
3.1.5 Partnerships
3.1.6 Joint ventures
3.1.7 Companies
3.2 Methods of choosing an appropriate business entry option
3.2.1 Identify your target market
3.2.2 Conduct market research
3.2.3 Choose a market entry strategy
3.2.4 Create a business plan
3.3 Factors to consider while choosing a business entry option
3.3.1 Cost of Start-up
3.3.2 Control vs. Responsibility
3.3.3 Profits
3.3.4 Taxation
3.3.5 Entrepreneurial Ability
3.3.6 Risk Tolerance
3.3.7 Financing
3.3.8 Continuity and Transferability
4. Choose an appropriate source of Business Finance
4.1 Sources of business finance
4.1.1 Personal finance and bootstrapping methods
4.1.2 Equity financing
4.1.3 Partnerships and equity partners
4.1.4 Venture capital
4.1.5 Business angels
4.1.6 Debt financing
4.1.7 Microfinance institutions
4.1.8 Cooperatives
4.1.9 Crowd funding
4.1.10 Informal sources
4.2 Factors to consider in choosing a source of finance in business
4.2.1 Risk
4.2.2 Cost
4.2.3 Control
4.2.4 Long term versus short term borrowing
5. Operationalise a Business
5.1 Factors to consider in choosing a business location
5.1.1 Accessibility
5.1.2 Security
5.1.3 Competition
5.1.4 Business Rates
5.1.5 Skill base in the area
5.1.6 Potential for growth
5.2 Statutory requirements
5.2.1 Business Name or Company Registration
5.2.2 City Council Business Permit
5.2.3 Food/Health Related Permits.
5.2.4 Fire Safety Certificate
5.3 Marketing mix
5.3.1 Product
5.3.2 Place
5.3.3 Price
5.3.4 Promotion
5.3.5 Physical evidence
5.3.6 People
5.3.7 Processes
5.4 Customer satisfaction
5.4.1 Importance of customer satisfaction
5.5 Launch the business
5.5.1 Conduct Testing
5.5.2 Contact Influencers
5.5.3 Get all staff involved
5.5.4 Create a Schedule
5.5.5 Identify Your Marketing Channels
5.6 Strategies for winning and retaining customers
5.6.1 Knowledge of the brand
5.6.2 Target marketing
5.6.3 Proactive engagement with customers
5.6.4 Gifts and discounts
5.6.6 Excellent customer service
5.6.7 Customer surveys
6. Manage an organisation
6.1 Definition of key terms
6.1.1 Management
6.1.2 Manager
6.2 Role of managers
6.3 Principal functions of managers
6.3.1 Planning
6.3.2 Organising
6.3.3 Leading
6.3.4 Controlling
6.4 Levels of management
6.4.1 Top level management
6.4.2 Middle level management
6.4.3 Lower level management
6.5 Skills of effective managers
6.5.1 Interpersonal skills
6.5.2 Communication skills
6.5.3 Conceptual skills
6.5.4 Leadership skills
6.5.5 Strategic thinking skills
6.5.6 Delegation skills
6.5.7 Problem solving and decision making skills
6.5.8 Office operations
6.6 Office Operations Handling incoming and Outgoing mails
Electronic mails, customer- support system and calls Filing and retrieval of information
Automated filing systems
Essentials of an efficient filing system
6.7 Managing people
6.7.1 Leadership and characteristics of leaders
6.7.2 Hiring the right employees
6.7.3 Job description and Job specification
6.7.4 Employee motivation and retention
6.7.5 Conflict management
6.7.6 Health and safety issues
6.8 Managing the stages of growth
6.8.1 Idea generation stage
6.8.2 Start-up stage
6.8.3 Growth stage
6.8.4 Stabilisation stage
6.8.5 Innovation stage
6.8.6 Main challenges of growth
Suggested Methods of Delivery
• Presentations and practical demonstrations by trainer;
• Guided learner activities and research to develop underpinning knowledge;
The delivery may also be supplemented and enhanced by the following, if the opportunity allows:
• Visiting entrepreneurs
• Enterprise visits
• Marketing plans
• Business plans
Equipment
• Computer
• Office phones
• Internet
Materials and supplies
• CDs
• Journals