good day once again business management students this is chapter tool for B EC 1 1 1 a module that she you registered so I hope you saw the video for chapter 1 where we discussed the business world in business management so now we are proceeding with chapter 2 and in this chapter we'll discuss about enterpreneurship just to cut rule look at the learning outcomes of this particular chapter by the end of the chapter which you ought to be in a position to define the team enterpreneur and also to discuss the concept of interpreting on ship and in in the inter preneur process you should also be in a position to describe the roles of interpreting ones in small businesses in the economy it was many times some people think that all small business owners are interpreting once or all enterpreneurs as small business owners but it is important to realize that those two are different in both discussed the differences is preceded by chapter you should also be in a position to explain what makes interpret once why is it while what makes them to do what they do you should also be in a position to comment on the skills experiences in the trades of interpreting ones and also to present recommendations regarding the choice of a business opportunity how do you if I know it's a business opportunity to say more this one works this one doesn't I should also be in a position to elaborate on what if his ability study is in its value to the enterprise more so in this case we'll mainly focus on disability stat where you assess or evaluate on whether a business idea actually works or it doesn't the outline of the chapter that will focus on providing introduction if I have not yet them so then we'll also look at different concepts on what in interpreting one is because people view enterpreneurs differently if you ask economists they will give you a a a different view of an intrapreneur or their view of an enterpreneur if you ask Mac cysts they will also give you their own view of an intrapreneur economies sometimes they view intrapreneurs people who are after profit whereas Mac cysts can actually view intrapreneurs as people who exploit other people for their own benefit so it depends on where you stand business managers they also have their own view of interpreting ones sometimes they think that interpreters are just small business managers who are trying to make things work this is the term for corporate 19th in this app before we read steps we were looking at the chapter outline and as I said we'll look at the different concepts of what in enterprise is as I said economies may have their own view Marxists may if they are on view business managers of large enterprises they may also if they're on view we also look at the renascence of enterpreneurship why is it important why is it important and we'll also look at the it is a premiership in South Africa what is it important who are becoming enterpreneurs maybe why are they also becoming interpret once they know also look at the role of enterprise in the role of small business owners in society this may play the same roles but we need to discuss why or what rose today play you know also look at why intrapreneurs do what they do maybe it's because of the skills that they have the knowledge that they have experience or the trades normally this is way we should also discuss on whether intrapreneurs are actually born or they amend now also look at the interpreter all process and then we'll discuss this more business what is it that can be referred to as a small business what is it that can be faithful is a small business so intrapreneurship is basically the process of creating and building something that is of value to consumers so intrapreneurship is a process and an intrapreneur is a pesum so an intrapreneur is a person or is someone who decides what how buy in for Google products and services be produced enterpreneurs can also be referred to people who start businesses with the intention of making profits and they these people assume the risk of losing their resources if the business fails so there is an element of risk taking not just the risk taking by guessing but it ought to be calculated risk taking interpret as are people who also mobilize other factors of production they bring that stack that brings all the other factors of production into motion the natural resources remain resources in the capital or your land labor and capital your textbook also defines enterprise intrapreneurship that particular process it is defined as the process of creating and building something of value from from particularly nothing in the midst of uncertainty and risk in having the determination to succeed against or or so if a premiership can also be seen as the process of starting a business of sometimes failing in sometimes succeeding so there is no guarantee that once start a business or once an intrapreneur start a business they will succeed there is an element or a probability of failure but now it is upon intrapreneurs to evaluate before they step on whether whatever they want to Stach who succeeds or it will fail that's why we spoke of calculated risk taking is not just an issue of just taking risk for the sake of taking me you ought to take calculated risk so that you will not lose your resources as I said earlier there are different concepts of what in interpreting one is okay we were disturbed once again but we are continuing apologies remember this is recorded during the time of posit 19 so there are lots of things that happen with me waiting for someone gets but you know a awaking someone who tried to open the door and so forth but I believe that we can still continue with the with the lecture we will still go through it together and understand so I was saying did there are different concepts of what in interpreting one is in this acid in it as I said earlier different people view interpret as different and I had referred to economists of you interpret ones as people who combine different factors of production for the purpose of gaining a profit they also referred to the Mac cysts who actually view intrapreneurs is exploited if you look at proponents of the market economy these see interpret is the economic force that is responsible for the propensity for the prosperity or success of any economy or of any country then we also have corporate managers when we say the view if the premise is small business operators or managers were struggling to actually survive but there is also a group of other people who study behavior the behavior risks particularly the psychologists in the sociologists these the view intrapreneurs is people who are creative people have innovative ideas people are able to identify opportunities or people find resources to pursue opportunities for financial gain people take risks people love to take risks people bring about change rotten world in the economy so generally they wanted the behaviorists describe interpret ones mainly focusing on the characteristics or on the traits of these enterpreneurs so many times intrapreneurs have been described mainly basing on their trades basing on their characteristics or based on their behavior what is it about their behavior that can be observed and be used to describe them so many times you hear people saying interpreter people are creative poor innovative people oriented people with worldly and people doesn't give up easily people with an internal locus of control people believe that their success or their failure is solely dependent on their actions looking at it apprenticeship in South Africa our growth in South African economy has declined for the past few decades we have not been realized economic growth GDP growth rate of 6% is needed if we are to improve economic growth if contributions of enterprise is relied on for a large part of the growth of the GDP if you read all Polish documents all Polish documents since 1994 after South Africa changed Democrats you realize that there is much emphasis that is put on intrapreneurship in small businesses to say these businesses or these enterprises they actually contribute more to economic growth they also contribute to solving the other problems such as poverty and inequality so if we are to grow the economy we ought to rely more on these small businesses we will speak more to that when we look at the role of small businesses in the economy interpreter ship is considered as a scarce resource in South Africa why if you read the global interpreter ship monitor the gem reports from 2010 you realize that the rate at which people start businesses in South Africa is relatively low compared to that rapes in other countries that we may compare ourselves with such as India sakis Brazil China and so forth looking at the row of enterprise in small business owners in society here were saying intrapreneur satisfy the needs it wants by mobilizing natural you mean in Finnish all his forces where a small business owner satisfied the needs as a way of ending there is no income so there is a difference day if the proneural are responsible for the growth and survival of the business whilst small business owners I responsible for the survival and profitability of the business so they don't care much about cloth so the main distinction distinctive distinctive sector between intrapreneurs and small business owners is the issue of growth for small business owners they may operate for more than five years doing the very same thing without showing any intention to grow but with enterprise that is very very different if the premium ones always seek to grow their businesses interpreters are also likely to take risks in order to grow their businesses but when it comes to small business owners there is no intention whatsoever in taking risks to grow or develop their business so you realize that on the issue of risk again small business owners we tend to avoid risk we raised intrapreneurs they take calculated risk it is our a very important to realize that both small business owners and entrepreneurs they contribute to the development of a country they contribute to poverty alleviation they contribute also to attaining a pallet in society part of what is also important part of what is also important in terms of comparing small business owners and interpreting ones is that most small business there is always a question that is normally a C so there is always a question on whether or interpret as a small business owners or all small business owners are interpreting odds I am sure from this you can see that not all small business owners I interpret not because of the issue of calculated risk taking and also the issue of rod but in terms of weather or interpret was a small business owners definitely not some Enterprise starts by operating like businesses and they never operated small businesses while other interpret ones may actually start small but because of their desire to grow they always grow their businesses so they will never remain small business owners so not all interpret ones are actually small business owners however some interpret was me if it started small these are some of the interpreter interprets traits or characteristics in retaking this discussion is coming from the question on why do interpret must do what they do why do they do what they do so it mainly as a result of interpreter or trades in characteristics it's also as a result of the experience that they hear it's also as a result of knowledge or skills that they have so the issue of knowledge and skills and also the issue of experience comes also inter plane however was taught by looking at interpreter on trades in characteristics I just have to see if there is need for me to also explain a bit in terms of interpreter or traits and characteristics so if you read your textbook you realize that this is on page 50 of your textbook in the first interpreter or trait that who discuss his achievement motivation that generally interpreters are people are motivated to achieve leave that desire to achieve we have that desire to achieve they also have an internal locus of control so in terms of internal locus of control it's important to know that a person can have either internal locus of control or external locus of control in terms of internal locus of control a personal belief we have that belief that whether they succeed or they fail it's only rests on them so your success or your failure is dependent on your actions so if you choose external locus of control we will be saying the success or failure of a person is dependent on other external factors so people believe in luck people believe that whatever happens in their life they don't have control over it those they have external locus of control maybe people believe also I wouldn't want to bring in the issue of eight year but there are certain people believe that whatever happens in their lives in their businesses they have no control whatsoever so those they have external locus of control but in terms of internal locus of control is a trait or characteristic of interpret once they believe that whatever happens they have control over so it depends on what they has put in in depends on the effort that they have put in the resources that they have put in the hard work that they we have put in those are some of the factors that determine whether they will succeed or they fail so there is that control over their life innovation entrepreneurs have always been described as people who are innovative people always come up with new ways of doing things people always want to develop and produce something that is totally novel something that is totally new to the market they are also creative creative it usually also leads to innovation so this is the ability or the process of creating something that is also new they are ability to be creative enterprise are risk takers they take risks so if they see an opportunity they calculate risk and they pursue the opportunity they are also other traits or characteristics that are used to describe enterpreneurs such as intrapreneurs are described as people with higher levels of energy people who are optimistic people are positive these are people also people are described as people with higher levels of confidence they've the desire for feedback what they believe that that's how they wake that's how they learn I'll do something you ought to get feedback be it positive or negative so that you know where to improve they also have a high tolerance for ambiguity whether something is setting or not they want to understand things they have this zero to understand things they are also flexible they quickly adapt their passion and commitment commitment and determination they do not give up easily they do not give up easily they are also described as people who are more oriented there are opportunities oriented and they are motivated to excel they pursue excellence they pursue excellence as I said why intrapreneurs do what they do sometimes it's as a result of the skills that they actually have so someone may have gained certain skills where they'd web or where they have been trained then they decide no I will not need to be employed anyway I need to start my own things and they start their own business so it's important also to understand some of the skills that people can actually have that may lead them to become enterpreneurs and other skills we are also told that most significant reasons for people to become enterpreneurs it's the skills that they have in the knowledge that they have the opportunity that they have realized or identified in the quest for independence to say no I do not want to wait for anyone else I want to wait for myself I have been much needed skills I have identified the opportunities so I must say wait for someone under their commands whilst they are this enjoying the fruits of my hard work so some people because of the skills and knowledge that they have they choose to work for themselves we choose to create employment for themselves and create employment for others the other ISM may also be experienced someone is waved in another organization they gained experience they know how it works in that particular industry in one day they either get fired or they are changed or they just decide to stop working because of their desire or quest for independence they may also become interpreters they may decide to start their own things they may decide to start their own business so intrapreneurs do what they do mainly because of the skills that they have the experience that they have also as a result of the traits or characteristics that we have as people it's also important for us to look at the types of interpreting ones mainly the two main types of interpreting month we have what I will say to is necessity interpreting ones and also opportunities interpreters so to explain this better I think is better to say intrapreneur a person to become an interpreter they are either pushed to become intrapreneurs or they are pulled to become enterpreneurs what do I mean by saying people are pushed to become interpreters maybe one doesn't have a job are they failed to get a job they can't get it in starting their own business is the only option available in that case that person if they start a business it's not really they started a business because they wanted to but it's because they didn't have any other option so we will say that person was pushed to become an entrepreneur and in most cases such people are described is necessity intrapreneurs so this is an individual who has changed from his blog post ad and start a business to support his family another example of necessity intrapreneurs are also some of the foreign individuals who are running businesses they are actually operating businesses so the stated business is not because they wanted to but because that was the only option that was available some couldn't be employed anyway some the couldn't find employment because they didn't have the skills they didn't have the knowledge or pala fication so the only option that will end up that they will end up with is basically to employ themselves there is always a debate to say do these people who which to interpret must be they perform better than those that may have been pulled into intrapreneurship there is always a debate about that but so much we have realized recently also in my own research I realized that someone who has been pushed into interpreter ship they can do everything to ensure that they succeed because once they fail they will not have any way to live for so they may actually do everything for them to succeed then they know what unknown is opportunity interpret once and these are people who were pulled into inter promotion someone who identifies an opportunity in the market and they decide to pursue it so it's not like we are touching we are pursuing an opportunity because that's the only option available they may have other options but they realized that if that the opportunity that we have identified may actually pay them better so they came to go for intrapreneurship simply what they've been interests in a certain field they want to start their own business not necessarily because they ran out of options the other reason why some people are becoming enterpreneurs also is a result of opportunities that have horizon is a result of what also see the issue of outsourcing so also seen a case when work is done through a company by people outside of the company companies full-time employees with the necessary skills to complete the tasks it forms part of the business strategic plan some of the companies that make use of professional service institutions such as Deloitte cave KPMG to handle their auditing take the advice or in whatever these are large companies but even government departments you realize that we outsource it in services so what ends up happening is that someone who realized that no this government department needs these particular services then they start their own company to offer those particular services so that they can gain money from the government so that they will not miss on an opportunity that may have presented itself on them the issue of outsourcing is also caused the rise of people to pay so tendons people starting businesses simply because there is a tender that has been advertised someone so someone can become an interpreter simply because they the department's or the same organization else way that is looking for organizations or companies that offer is set in savings the intrapreneurial process it's important to also look at the interpreter or process so the first step is obviously the decision to becoming an interpreter where one decides on whether to actually enter the business world as an interpreter or not then after that decision if one decides to become an interpreter it pops out of being employed by other people the second stage will then be to ask themselves if they are the necessary interpreter or abilities and skills if they do not have these they we have to or they can make the decision on whether they should become enterpreneurs or not however if they have the necessary interpreter or abilities and skills they proceed to ask themselves if they have the needed resources do I have the required resources or can I get access to those resources obviously if you do not have access to resources and you do not have resources you cannot be you cannot start a business and succeed you statues the mutual resources you got them from way but if you have the resources you can actually proceed to ask yourself if you have been opportunities or if you if there is an opportunities that you can pursue is it above average is there any probability of that opportunity to succeed so if the nobody above average opportunity is available the same procedure to that his ability analysis the feasibility analysis of his ability study only shows on whether the idea that you want to pursue can actually survive or can it actually be sustainable if you find out that the idea or the opportunity that you want to pursue is feasible that's when you can then proceed to write in a business plan and if you write a business plan and you get funding from investors or you find yourself and you find out that the business can actually run it can actually operate you can then proceed with the implementation of your business ran it after putting the vision down running skills required for enterpreneurship these are some of the skills that you need is an interpreter these are also important for every business money strategy skills the ability to see a business in a most holistic art if a holistic view of a business they ability to plan or planning skills they are also important marketing skills they ability to be able to take what ever you have is an organization to the market ability to make your market offering known to the people that are able and willing to I and use that particular product that you are offering project management skills human relations skills our human relations skills are also very very important because in business you work with people even as an interpreter while you will work with people you work with people as employees you wait with people as customers or instance humans so human relations skills are very very important in terms of in the proneural process when we spoke of resources do you have limited resources or the essential resources for running a business some of the key resources that you can look at include financial resources do you have the capital to start the business we have the human resources people with key competences that I needed for the operations of the business then you do you also have the physical resources including land to operate from do you have it so you assess based on on that how do people come up with the new venture ideas some of the things that you can look at a basic trends what is happening in the economy what are people offering what is leaking what is happening now what is most likely to happen in the future so you can look at the trends in the economy you can also look at the lifecycle of the industry you can be able to identify opportunities then they are also growth industries those industries that are that are actually growing where there are actually opportunities these opportunities may come as a result of outsourcing that there are lots of organizations that are pursuing but that are always after the services of such industries you can actually come up with an idea in venture into that particular industry new venture opportunities what we are providing here are the fundamental requirements for a good investment opportunity obviously one aspect that investors look at or that you should also look at as a potential enterpreneur is the growth potential of that particular page if they're clearly defined markets or market need for the product is it clearly defined the market need for the product is it clearly defined do you have a sustainable competitive advantage or can it be attainable competitive advantage with speaking of what makes you better than your competitors what is it that makes you better than your competitors is it long-term is it sustainable the opportunity should also be rewarding to the investor or to you as a potential intrapreneur what is it that investors benefit what is it that you benefit as an interpreter the timing was the opportunity must also be right some people may choose also not to start their own businesses they may say no I would rather buy an existing business if there is always a debate one whether if you buy an existing business you aim intrapreneur or you are just a small business owner we can add view about that throughout the day and others may argue to say if you buy a business after evaluating that you end profits you are in intrapreneur some may say no you are buying a business because you couldn't come up with your own ideas so you may not be an enterprise vasya not innovate easier not creative some who say no simply because we have decided to do it it means you have thought about it so you may actually be creative so the debate can go on and on but what is important for purposes of this course is to discuss the advantages and the disadvantages of buying an existing business there are many advantages though because if you buy an existing business you already have in customers who knows where the business is they are familiar with the location of the business they are familiar with the business itself so you will be having an established customer base they are customers worried you may also benefit from experienced employees that come with the business when we take over the business there are people who are already working for that particular business so that may also be an advantage planning can also be based on historical data that is known because the business may already have been operating you already know what was what challenges will be facing what opportunities will be going to enjoy so you can actually plan with information not plan from a point of ignorance a supplier relationships were already in place inventory and equipment will be in place financing may be available from the owner so those are some of the advantages however there are disadvantages of buying a existing business the business location may be undesirable or threatened or threatened with becoming undesirable because for someone to say oh the business they may be challenges associated with it how the image of the business may also be very difficult to change if the person was operating it was not the lawyer if the person was operating it was unethical it may be very difficult to change that image of the business employees are inherited rather than chosen it's important to recruit you people select your own people motivate your own people but in this case if you are buying in an existing business you work with people with their and to change the way culture of those people may be very very difficult so there are challenges that come with inheriting employees they may also be difficulties in changing the way the business is run especially if there are people that you are inheriting in the business they may also be liabilities in for past business contracts that you may inherit in the business infantry and equipment may also be absolute it may already have lost its value because it was being used so if you hope to use it you may walk by something that is already depreciated and lost its value financial costs are put drain the cash flow and threaten the survival of the business then there is also what is known as franchising franchising is basically where the franchisee the one who buys the rights to use the name in the business practices is allowed to use the business practices and so forth that's when they apply those rights from the franchisee whoa that's the one who actually grants the right to use their name they are received their new way of business basically how they operate so there are many examples of franchise businesses such as I think KFC is an example Nando's is an example McDonald's is an example lots of franchise businesses so it's an intrapreneur you can also choose to just buy a franchise but they are also challenges that come in precast businesses because after they've allowed you to operate using their name using their business practices you cannot be innovative and creative and such do your own things that they didn't allow you to do you cannot also just decide to grow the business without permission of the franchisor so those are some of the things that you also need to understand however there is a debate on whether the franchisees in interpreting one or it's only the French is always in enterpreneur it's also a debate that we can give throughout the day then there is also what is known as corporate interpretive it's also referred to is intra promotion within I this is basically intrapreneurship in any existing business whereby a person develops a new corporate business within a business through identifying new opportunity method by which a corporation introduces new in the best fight products it's done through internal processes and corporate corporations organizations resources it enables investment and profits through establishment of business within business I'm sure most of you would remember the person who invented the police for me of verdict oh that guy is actually in intrapreneur woo woo in short was an intrapreneur within in existing business so that is corporate entrepreneurship where someone establishes a business in another business something someone comes up with something new within in existing business our business opportunities this is ability of the business the visibility of the idea opportunities this we have discussed before but it's important to emphasize that not all ideas can be converted into successful business ventures some ideas wake some ideas do not work so some ideas would work but some ideas may just be wish wishful thinking from the intrapreneurs of potential enterpreneurs someone would want to achieve to start a business but when you ask them whether they have the resources they do not whether they will be able to access resources they do not have that particular access so not all ideas actually wake these needs to evaluate the feasibility of those ideas and that can be done through a feasibility study whereby one who actually assess on where that is a possibility of such an idea to survive and to be profitable so it is only after the feasibility study that a business plan can then be drawn up so why don't you just don't wake up and you say I have an idea I want to write a business plan in look for funding there is need for a feasibility study there is need for that honesty assessment to see you on whether that idea works or it doesn't work so if it doesn't work it doesn't work but if it works okay so it write a business plan approach other people for funding and you will benefit from it moving on will also look at the small business a small business there's always a debate on what is a small business what who says this is a small business who says this is a small business so defining as more business if you read textbooks you'll find different definitions of what is more business is if you read different police documents you also realize that the sort of contradiction of what a small business is but in South Africa we use the national small business Act of 1996 which was amended in 2003 to be to get the proper definition of what a small business is so they they use the quantitative criteria to define a small business and the Act actually defined small businesses depending on the sector in which a business is so I will not give numbers here's to say a small businesses with numbers to these numbers but basically to define a small business you can look at the NAP of employees sales volumes or ten over the value of assets in the market shape of that particular business that can help you to define a small business and this is usually we are usually guided by the national small business Act of 1996 so characteristics of small businesses in South Africa in terms of employees are they ought to be below 200 anata no of ourselves they ought to be less than 64 million runs capital assets they ought to be below 23 million and they must be direct managerial involvement by the owners that's how small businesses are defined or described in South Africa the role of small business in the economy these are very very important in the economy some economists do not see the importance of small businesses and they always travel those economies that value small businesses they always prosper so if you read literature on small businesses you realize that in some countries about 90% of people or 90% of the actress workforce actually employed by small businesses it's debatable though because the government also employs a lot of people in South Africa we speak of 75% of the active population being employed by small businesses so they play a very very critical role so besides contributing to economic growth I hoping in reading alleviating poverty through the production of products and services it will also contributing to equality in the economy it is important also to blame that or to realize that these are innovation hubs most new ideas that are then used by large businesses they are actually they actually start with small businesses they come up with creative ideas innovative ideas and they develop new products they also age big businesses there are certain tasks that can not be done by those large businesses that can only be done by small businesses they also hope in creating employment so intrapreneurship is the driving force behind business organization entrepreneurs are important for any economy and it is important for every enterprise more to be able to assess their abilities and skills to be able to also do something to be able to access resources to search for opportunities and to conduct feasibility studies I am sure about the business plan that will be part of Chapter three