B

International
Labour
Office

KNOWABOUTBUSINESS
Entrepreneurship Education
in Schools, Technical Vocational Training Institutions and Higher Education

MODULE

2 2018

Who are entrepreneurs?

 MODULE 2

Who are entrepreneurs?

International Labour Office, Geneva

International Training Centre of the ILO, Turin
Copyright © International Training Centre of the ILO 2018

This publication enjoys copyright under Protocol 2 of the Universal Copyright Convention. Applications for
authorization to reproduce, translate or adapt part or all of its contents should be addressed to the International
Training Centre of the ILO. The Centre welcomes such applications. Nevertheless, short excerpts may be
reproduced without authorization, on condition that the source is indicated.

Know About Business

ISBN 92-9049-396-8

First published 1996

Second edition 2000
Third edition 2002
Fourth edition 2004
Revised edition 2005
Revised edition 2007
Revised edition 2008
Revised edition 2011
Revised edition 2018

The designations employed in the publications of the International Training Centre of the ILO, which are in
conformity with United Nations practice, and the presentation of material therein do not imply the expression of
any opinion whatsoever on the part of the Centre concerning i.a. the legal status of any country, area or territory
or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in
signed articles, studies and other contributions rests solely with their authors, and publication does not constitute
an endorsement by the Centre of the opinions expressed in them.

Publications of the Centre, as well as a catalogue or list of new publications, can be obtained from the following
address:

Publications
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Viale Maestri del Lavoro 10
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Tel: +39 11 693 6693
Fax: +39 11 693 6352
E-mail: publications@[Link]
[Link]
 INTRODUCTION

What is Know About Business?

Know About Business (KAB) is an entrepreneurship education programme developed

by the International Labour Organization (ILO) to teach entrepreneurship in technical
and vocational education and training institutions as well as in secondary and higher
education institutions.
The programme seeks to prepare in-school youth – young men and women - for the
transition from school to the world of work by letting them discover and develop
entrepreneurial competencies and basic business management skills through a range
of games and exercises. The ultimate goal is to equip young people with skills and
competencies to start their own venture at some point in their life as well as to work
productively as employees in enterprises as intrapreneurs. KAB helps young people
to explore and develop an entrepreneurial mind-set and attitude that can be applied
in all aspects of life whether a young person choses to become an entrepreneur or an
intrapreneur.
KAB is directed to teachers and educators in technical and vocational education and
training institutions, general secondary education and teachers and lecturers in higher
education such as universities and polytechnics. KAB can be used in any educational
setting and can be adapted for specific technical and general courses where an
educational institution or a teacher wishes to reinforce entrepreneurship learning
outcomes. The typical age group is youth from 15-24 years, but the games and
exercises can be used to teach entrepreneurship to any age or target group.
The complete KAB package consists of a total of 80 hours of games and exercises
and is made up of seven modules, each representing a key area of entrepreneurship.
Each module consists of a Teacher’s Guide with detailed sessions plans and
exercises and a Learner’s Workbook. An Implementation Manual guides educational
institutions through the integration of KAB into existing systems and curricula.
Whereas some countries have adopted the full package in their national curricula,
other countries have adopted part of the KAB package to complement existing
curricula at different institutional levels. The ITC-ILO is available to provide advice and
guidance to any institution that considers implementing the full KAB package or part
of it.
For more information write to the Enterprise, Microfinance and Local Development
Programme (EMLD) of the International Training Centre of the ILO at emld@[Link].

3
 MODULE 2: Who are entrepreneurs?

Authors and acknowledgements

The Know About Business programme was initially developed by the International
Labour Organization in Kenya in 1996 as part of an entrepreneurship education
programme in vocational education and training. The team was led by Professor
Robert Nelson of the University of Illinois. Since then a number of revisions were
carried out in 2000, 2002, 2004, 2005, 2007 2008 and 2011.
Over the years many former and current ILO officials have contributed to the
continuous development of the KAB programme including Gulmira Asanbaeva, Rania
Bikhazi, Charles Bodwell, Linda Deelen, Jens Dyring Christensen, Klaus Haftendorn,
Marek Harsdorff, Nelien Haspels, Samih Jaba, George Manu, Barbara Murray, Debra
Perry, Annemarie Reerink, Virginia Rose Losada, Joni Simpson, John Thiongo and
Peter Tomlinson.
The current 2018 version was developed with contributions by Rania Bikhazi, Tong
Cai, Nuno Castro, Linda Deelen, Jens Dyring Christensen, Samih Jaba, Maria José
Mallo and Virginia Rose Losada. The layout and graphics was done by Enzo
Fortarezza. The team wishes to thank the authors of the ILO GET Ahead and Start
Up and Go training materials, that served as inspiration for some of the exercises in
this new KAB package. Very special thanks go out to all those involved in the national
translations and adaptations of Know About Business, whose work was extremely
helpful for the preparation of the present package.

4 Know About Business

 MODULE 2: Who are entrepreneurs?

MODULE 2
Who Are Entrepreneurs?

Module objectives:

 To allow learners to identify entrepreneurial characteristics that

can contribute to a better personal life and to success in starting
and operating their own businesses.
 To motivate learners to be entrepreneurial and develop positive
attitudes and habits.

Module coverage:

1. Entrepreneurial competencies
2. Self-employment and entrepreneurship
3. Entrepreneurial motivation
4. What does it take to set up a small business?
5. The decision to become an entrepreneur

5
 MODULE 2: Who are entrepreneurs?

Topic 1: Entrepreneurial
Competencies
SUGGESTED TIME 2.5 hours

LEARNING OUTCOMES

 Learners understand and can identify that entrepreneurs have many different
talents.
 Learners realize that being successful in business does not depend on being
a man or a woman, but on entrepreneurial characteristics, and can describe
these characteristics.
 Learners achieve a better understanding of their own potential for becoming
entrepreneurs in the future.
 Learners appreciate and can describe how entrepreneurial competencies can
be acquired and developed over time.

ACTIVITIES

1. Initiate a discussion by asking learners questions about entrepreneurs:

 Who do you think is a successful entrepreneur?
 What competencies do you think these successful entrepreneurs have
that are important to their success?
Learners may mention famous entrepreneurs or entrepreneurs in their
communities. Encourage them to give more details of certain competencies.
Extract key lessons and write them on the board. Competencies for successful
entrepreneurship could include business knowledge, technical skills, creative
thinking, passion, leadership, commitment, problem solving skills, time
management skills, negotiation skills or other personal characteristics.
2. Divide learners in small groups and give them 15 minutes to fill in the blanks
in WORKSHEET 1. Explain to them that the different body parts symbolize
entrepreneurial characteristics. Give them an example to help them
understand it better (e.g. entrepreneurs need big shoulders to assume the
heavy responsibility of operating a business and creating employment for
other people). Invite volunteering groups to present their results after the
learners finish their worksheet.
3. Show SLIDE 1 and present it to the learners.
4. Have learners read HANDOUT 1. Tell them that the entrepreneurial
characteristics that they identified themselves during this session could also
be added to the list.

6 Know About Business

 TOPIC 1: Entrepreneurial competencies

5. Let learners write their answers on WORKSHEET 2 and discuss their answers
within their groups. Explain that both women and men have entrepreneurial
talents and can develop the necessary skills to develop a business. Being
successful in business does not depend on whether you are a man or woman,
or whether you have disabilities or not.
6. Using HANDOUT 1, let learners identify their own competencies. After 15
minutes, ask learners to present and justify the competencies they identified
within their groups. Ask some volunteers to present their findings to the whole
group.
7. Ask learners to finish WORKSHEET 3 as an after-class activity.

7
 MODULE 2: Who are entrepreneurs?

WORKSHEET 1

An entrepreneurial person

BRAIN WISE EYES SHARP EYES

__________ __________ ___________
__________ __________ ___________ EAR
__ __ __________
EAR
__________ __________
__________ __
__ NOSE
WRINKLES __________
__________ __________
__________ __
__ SHOULDERS
MOUTH
__________
__________
__________
__________
__ HEART
NECK
__________
__________
__________
__________
__
__
ARMS
BACKBONE __________
__________ __________
__________ __
HANDS
FINGERS __________
__________ __________
__________ __
__
KNEE
STRONG LEGS __________
__________ __________
__________ __

FLEET FEET
__________
STRONG FEET
__________
__________
__________

8 Know About Business

 TOPIC 1: Entrepreneurial competencies

SLIDE 1

An entrepreneurial person
WISE EYES
BRAIN For establishing a SHARP
For acquiring and vision, setting EYES
applying knowledge, for goals and keep For seeking out
fresh ideas, for rational an eye on what opportunies EAR
competitors are For listening to good
EAR and analytical thinking doing advice
For keeping to the
ground and sensing NOSE
change and opportunity For sniffing out new
WRINKLES opportunities, smelling
signs of trouble and to
For smiling during react quickly
the fun times
SHOULDERS
MOUTH For carrying
For effective responsibilities
communication, for
speaking empathetically,
for selling yourself HEART
For passion, commitment,
NECK and perseverance to stick
For the confidence to with it and burst with pride
believe in one’s self when goals are reached
and to move ahead and accomplishments
made.
BACKBONE
ARMS
For the confidence to
believe in oneself For hugging members of
and to move ahead the team that will
determine your success
FINGERS HANDS
For counting the For working hard, using
positive learning skills (technical and
opportunities from managerial), shaking
any mistakes/failure when you have closed a
good deal
STRONG LEGS KNEE
For running ahead of To remind you to avoid
the pack and enjoy knee-jerk reactions
it, for jumping over
hurdles

FLEET FEET
STRONG FEET For moving ahead and
For taking the right walking paths of
steps to succeed adventure

9
 MODULE 2: Who are entrepreneurs?

HANDOUT 1

Important entrepreneurial characteristics

Certain personal characteristics help people to be entrepreneurial and to successfully
start and operate a business. You may already have some of these characteristics
and you certainly have the potential to develop others.

Hard Working: Running a business requires a lot of energy and drive. This involves
the ability to work for long hours when necessary, to work intensely and to cope with
less than a normal amount of sleep from time to time.
Self-Confidence: Entrepreneurs have to believe in themselves and in their ability to
achieve the goals they set for themselves. Confidence is the belief that “if you want
something badly enough and are prepared to work at it, you’ll usually get it”.

Innovation and Creativity: Innovation and creativity helps you find business ideas,
develop new products and services, new or more efficient ways of doing things, and
open up new markets.

Goal-Orientation: Success in business depends on being able to set realistic goals

or targets and to work with determination to achieve them. This ability to set goals and
to work to achieve them is important for entrepreneurs.

Persistence: All businesses have their problems and disappointments. Being

persistent in solving a problem is one of the keys to being a successful entrepreneur.

Coping with Failure: All business ventures inevitably contain disappointments and
failures as well as successes. Coping with failures involves recognizing these failures,
learning from them and seeking new opportunities.

Willingness to Listen: Entrepreneurs need to have the ability to ask for help and
obtain useful advice from others.

Coping with uncertainty: Being an entrepreneur is more uncertain than having a

paid job. The ability to cope with this uncertainty without becoming too stressed is an
important trait of being an entrepreneur.

Reliability and integrity: The qualities of honesty, fair dealing and reliability in terms
of doing what one has promised to do, are essential traits of an entrepreneur.
Risk Taking: Being an entrepreneur involves some risks. Entrepreneurs have the
ability to take measured or calculated risks.

10 Know About Business

 TOPIC 1: Entrepreneurial competencies

WORKSHEET 2

Gender and entrepreneurship

1. Are there certain types of businesses where being a man or a woman should be
considered a key factor?

____________________________________________________________
____________________________________________________________
____________________________________________________________

2. Does society see women and male entrepreneurs in different ways? Can you give
some examples?
____________________________________________________________
____________________________________________________________
____________________________________________________________

3. Do you think being a woman is a problem when you want to succeed in business?
Why or why not?

____________________________________________________________
____________________________________________________________
____________________________________________________________

11
 MODULE 2: Who are entrepreneurs?

EXPLANATION OF “GENDER AND

ENTREPRENEURSHIP” QUIZ

1. Are there certain types of businesses where being a man or a woman should
be considered a key factor?
Answer and explanation: In many societies, perceptions exist that certain types of
businesses are more appropriate for men than for women or the other way around.
For example, people may find it inappropriate for women to own a construction
businesses, or inappropriate for men to own a childcare or food processing
businesses. This is why women and men tend to start their businesses in specific
business sectors, even when these are not the most profitable ones, or the ones that
best fit their personal interests or skills. However, we should not be led by our
prejudices. There are certain differences between women and men in terms of biology
and culture, but we are all capable of doing any job. Our skills, talents and interests
should define our choice of business, not the fact that we are a man or a woman.

2. Does society see women and male entrepreneurs in different ways? Can you
give some examples?
Answer and explanation: These perceptions exist in all societies. For instance,
some people may think that men are better entrepreneurs, because they think men
are more adventurous or better risk takers. Young men may also be more encouraged
to become entrepreneurs by their families than girls. These kind of perceptions may
make it more difficult for girls and women to succeed as entrepreneurs. It is therefore
important that societies support men and women equally in their business ventures.

3. Do you think being a woman is a problem when she wants to succeed in

business? Why or why not?
Answer and explanation: Our perceptions of people (female and male) may not be
reality. We should not make judgements based on gender stereotypes. Gender does
not determine what kind of businesses you start or how successful you will be.
Entrepreneurial competencies (knowledge, skills and personal characteristics) matter,
and they do not depend on being a man or a woman.

12 Know About Business

 TOPIC 1: Entrepreneurial competencies

WORKSHEET 3

Entrepreneurial tendencies survey

How entrepreneurial are you? This survey may give a preliminary idea. From the
following pairs of sentences, encircle either A or B that most reflects your personal
views. The result of the survey is just for your reference.
1. A Work has to be done.
B I am constantly thinking of new ideas.

2. A I feel happier when my responsibilities increase.

B I don’t like to take risks.

3. A I would not do anything that would give me a loss.

B The understanding of how to earn money is the first step in business.

4. A I shall not venture into anything, if its failure would lead to my being ridiculed.
B In addition to my work, I shall keep in mind the needs of others.

5. A I shall strive to progress in any business that I start.

B I shall undertake those actions which make me happy and secure.

6. A People will ridicule me if I fail.

B I have confidence in myself but seek the advice of others.

7. A I shall find the solution for difficulties as they come.

B I let my friend decide on my social activities.

8. A I am doing fine right now.

B I can do much better than what I am doing at present.

9. A I always make sure that personal relationships are not be strained.

B Whatever may happen, I shall have a chance to learn from experience.

10. A Even if I fail in my efforts, I shall learn something.

B I would like to have a nice, comfortable life.

11. A I shall invest only in gambling/lottery and some day luck will be in my favour.
B I will try to find out the reason, if I fail in my work.

12. A I will consider my employees as my friends and will treat them as friends.
B If I get better work, then I shall leave my present work.

13
 MODULE 2: Who are entrepreneurs?

13. A I shall think properly before I implement a new idea.

B I would not mind if my work suffers for the betterment of others.

14. A I will be able to develop business only if I have capital.

B I make important decisions on my own.

15. A I often need pep talks from others to keep going.

B If things do not materialise according to my wish, I shall find another alternative.

16. A I shall be making mistakes.

B I like to talk with friends very much.

17. A I wish that my money should be safely kept in the bank.

B I enjoy proving that I can do something.

18. A I wish I had a lot of money so that I could live comfortably.

B I follow other people’s advice when making decisions.

19. A One should first help one’s own relatives and persons one knows.
B I enjoy solving difficulties.

20. A Even if I suffer, I will not behave in ways that make others feel bad.
B I get bored easily.

21. A I wish that my business could flourish quickly so that I will not have financial
problems.
B I shall be careful that I am not blamed for being unsuccessful.

22. A I should act independently according to my own thoughts.

B My happiness lies only in collecting large amounts of money for my future.

23. A If I fail, it will be due to the faults of somebody else.

B I will only do things which I feel are good and proper.

24. A Before taking up work, I will be careful to see that it will not harm my reputation
in society.
B I like to work long hours to accomplish a goal.

25. A I wish that I could have a comfortable house to live in.

B I will learn from failures.

26. A Before doing my work, I think about its long term effects.
B Usually my friends will follow my ideas and instructions.

27. A Money brings all comforts, so my aim is to collect money.

B I like to work where all my friends meet frequently.

28. A I know what I am doing and am not afraid of criticism from others.
B If I fail, I will feel very bad about myself.

14 Know About Business

 TOPIC 1: Entrepreneurial competencies

29. A I have difficulties admitting defeat.

B Before starting new work, I will take advice of friends.

30. A All my experiences will motivate me.

B I wish that I could have a lot of money.

31. A I like to spend my days leisurely, successfully and without any worries.
B If I fail, I will try to determine why it happened.

32. A I do not like the interference of others in what I do.

B I will do anything to earn money.

15
 MODULE 2: Who are entrepreneurs?

Scoring of entrepreneurial tendencies survey

Scoring board

A=1 A=1 A=0 A=1

1. 9. 17. 25.
B=2 B=2 B=2 B=2

A=2 A=2 A=1 A=1

2. 10. 18. 26.
B=0 B=1 B=0 B=2

A=0 A=0 A=0 A=0

3. 11. 19. 27.
B=1 B=2 B=2 B=1

A=0 A=0 A=1 A=2

4. 12. 20. 28.
B=1 B=1 B=2 B=0

A=2 A=2 A=1 A=0

5. 13. 21. 29.
B=0 B=0 B=0 B=1

A=0 A=1 A=1 A=2

6. 14. 22. 30.
B=2 B=2 B=0 B=1

A=2 A=1 A=0 A=0

7. 15. 23. 31.
B=0 B=1 B=2 B=1

A=1 A=2 A=1 A=1

8. 16. 24. 32.
B=2 B=1 B=2 B=0

Results

Score Entrepreneurial tendency

0-25 not very entrepreneurial

26-36 Neutral

37-47 Somewhat entrepreneurial

48+ Very entrepreneurial

16 Know About Business

 TOPIC 2: Self-employment and entrepreneurship

Topic 2: Self-employment and

Entrepreneurship
SUGGESTED TIME 1.5 hours

LEARNING OUTCOMES

 Learners appreciate that entrepreneurship and self-employment can be a

lifestyle and a successful one too.
 Learners consider and can reflect on the pros and cons of entrepreneurship
as a career option.

ACTIVITIES

1. Show SLIDE 1 and present it to the learners. Explain that this session will be
about the difference between working for yourself and working for someone
else.
2. Invite learners to fill in WORKSHEET 1. Ask volunteers to present the results
of their work. Discuss the differences between working in a paid job versus
self-employment and owning a business. Explain that some types of work
(nurse, teacher, pilot) are usually done in the form of wage employment. Other
types of work (graphic designer, electrician) can either be done as wage
employment or as self-employment.
2. Have learners read HANDOUT 1 and discuss the importance of personal
values for a future career choice. Make sure learners understand and
recognize how personal values, interests and experiences relate to their work
and lifestyle.
3. Let learners in groups write five reasons for working for oneself and five
reasons for working for someone else on WORKSHEET 2. Have the class
discuss the results. Explain that not everybody will find wage employment after
graduation. Self-employment and starting a business are valid alternatives.
Self-employment may also give you the necessary professional experience to
find wage employment at a later stage.
4. Show SLIDE 2 and discuss the advantages and challenges of self-employment
and paid employment. Have the learners read HANDOUT 2. For instance, as
self-employed persons they can work from home more easily, avoiding
transport challenges and combining their work with other responsibilities.

17
 MODULE 2: Who are entrepreneurs?

SLIDE 1

18 Know About Business

 TOPIC 2: Self-employment and entrepreneurship

WORKSHEET 1

What work would you like to do when you

leave school?
Think of three types of work that you would like to do when you leave school. Then
decide whether you would like to do this work as a salaried worker, or as a self-
employed person or business owner.

Self-
Salaried employment/
Type of Work
Job business
owner

19
 MODULE 2: Who are entrepreneurs?

HANDOUT 1

How personal values, interests and

experiences relate to your work and
lifestyle
Your personal values and interests are the things that you think are most important
for you. Your choice of job may depend on what you value and what interests you
most.
1. The career you choose may affect where you live. If you choose to be a forest
ranger, you will probably have to live near a forest. If you choose to work in the
movie industry, you will probably have to live near a big city where there are well
developed film industry.
2. The amount of money you earn may affect how you live. For example, if you
earn 10,000 a year, you will live differently than someone earning 100,000 a year.
You need to decide how important money is to you.
3. The career you choose may affect how you live. For example, Fred, a nurse’s
assistant, often works the night shift and sleeps during the day. But this can help
him earn more money, and he enjoys helping people feel better. John, a
salesman, often works more than 50 hours a week, including travel. He likes to
see new places.
4. The career you choose may affect who your friends are. Many of your co-
workers will become you friends. You may lose touch with friends you have now.
5. The career you choose may affect your family life. For example, Susan, the
owner of a local restaurant, always gets up early in the morning with her husband
to purchase raw materials and prepare for the business. They are not able to
accompany their children to school every morning, but let them take the bus
instead.
6. The career you choose may affect your personality. Some jobs put more
pressure on you than others. This pressure may make you nervous or irritable.

Only you can decide how you want to live. Choose a career that fits what you
value most.

20 Know About Business

 TOPIC 2: Self-employment and entrepreneurship

WORKSHEET 2

Work for yourself or someone else

Reasons for working for someone else:

1.

2.

3.

4.

5.

Reasons for working for yourself:

1.

2.

3.

4.

5.

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 MODULE 2: Who are entrepreneurs?

SLIDE 2

Paid employment or self-employment?

Paid employment / Employee

ADVANTAGES: CHALLENGES:

1. Clear responsibilities 1. Ability not easily recognized

2. Steady income & benefits 2. Fixed income
3. Fixed hours of work 3. Limited responsibility
4. More certain future 4. Difficulty to implement ideas
5. Minimal risks 5. Dependent on the employer

Self-employment / Entrepreneur
ADVANTAGES: CHALLENGES:

1. Leads rather than follows 1. Long, irregular hours of work

2. Can implement own ideas 2. Lots of responsibility
3. Can be creative 3. Must take risks
4. Potential income unlimited 4. Income may not be stable
5. Independence 5. Often working alone

22 Know About Business

 TOPIC 2: Self-employment and entrepreneurship

HANDOUT 2

Advantages and challenges of being self-

employed

1. Advantages of for yourself

a. Personal satisfaction: To some people, the main reward of working for yourself
is personal satisfaction. Personal satisfaction means doing what you want with your
life. Being self-employed may enable you to spend each work day in a job you enjoy.
For example, if you like photography, you may start your own photo studio.
b. Independence: Another advantage of being a self-employed person is
independence. Independence is freedom from control by others. You are able to use
your knowledge, skills and abilities as you see fit. Compared to those who work for
others, self-employed persons have more freedom of action. They are in charge and
can make decisions without first having to get the approval of someone else.
c. Profit and income: One of the major rewards expected when starting a new
business is profit. Profit is the amount of income left after all expenses have been
paid. Profits go to the owner of a business. Being self-employed, you would be able
to control your income. Very often, increased time and effort put into the enterprise
results in increased income. This is not often the case when you work for someone
else.
d. Status: Status is a term used to describe a person’s social rank or position. Self-
employed persons receive attention and recognition through customer contact and
public exposure. Closely related to social status is pride in ownership; most people
enjoy seeing their names on buildings, vehicles, stationery and advertisements.
e. Flexibility: People who work for themselves can start activities depending on their
interests and capabilities. Self-employment also gives the individual the job of being
an employer and a leader rather than an employee and a follower. For some women
and men, a home-based business or business close to home makes it easier to
combine work and family responsibilities.

2. Challenges of working for yourself

a. Possible loss of invested capital: One risk of being a self-employed entrepreneur
is the possibility of losing your invested capital. Invested capital refers to the money
the entrepreneur has put into starting the enterprise. If the enterprise succeeds, profits
may be high. If the business fails, invested capital may be lost and the entrepreneur
stands to lose personal and family savings.

23
 MODULE 2: Who are entrepreneurs?

b. Uncertain or low income: Another disadvantage of working for yourself is the

possibility of uncertain or low income. Unlike the salaries of employed workers,
income usually varies from month to month and from year to year.
c. Long working hours: Many self-employed persons work long hours.
Entrepreneurs are often the first to arrive at the business in the morning and the last
to leave at night. Working hours are set at the convenience of customers, not the
desire of the entrepreneur.
d. Routine chores: Working for yourself may involve routine chores you do not like
to do. This can be a big challenge, especially if you cannot raise sufficient funds to
employ other people.
e. People contact: If you work for yourself, you need to maintain professional
contacts with customers, employees, and suppliers. Sometimes you will have to
negotiate with your employees and business partners and correct certain actions of
behaviours. Being self-employed can therefore feel lonely as compared to having a
wage job.

24 Know About Business

 TOPIC 3: Entrepreneurial motivation

Topic 3: Entrepreneurial Motivation

SUGGESTED TIME 1.5 hours

LEARNING OUTCOMES

 Learners can explain how motivation is an important aspect for entrepreneurs

to be successful.
 Learners can list and describe some positive attitudes, habits and
characteristics that everybody can develop to become an entrepreneur.

ACTIVITIES

1. Invite learners to complete the quiz in WORKSHEET 1. Then discuss the quiz
question by question. For each question, first let learners share their answers
and explanations with the group. Then discuss with the learners the answers
that are provided in the answer sheet.
2. After discussing the answers to the entrepreneur’s quiz, invite learners to read
HANDOUT 1.
3. Invite learners to fill in the questions in WORKSHEET 2. The discuss the
questions one by one with the class. Highlight the importance of developing
positive attitudes and habits and their relationship to an entrepreneur’s self-
motivation.

25
 MODULE 2: Who are entrepreneurs?

WORKSHEET 1

An entrepreneur is more likely…

1. When faced with a problem, the entrepreneur is most likely to:
a) go to a close friend for help
b) get help from an expert
c) try to work through the problem alone

2. The entrepreneur is like a distance runner who runs mainly to:

a) work off energy and to keep in good physical condition
b) gain the satisfaction of beating other competitors in the race
c) try to better his previous time over the distance

3. Entrepreneurs are motivated most by the need to:

a) achieve a goal of greater personal importance
b) gain public attention and recognition
c) control wealth and other people

4. Entrepreneurs believe the success or failure of a new business venture

depends primarily on:
a) luck or fate
b) the support and approval of others
c) their own strengths and abilities

5. If given the chance to earn a substantial reward, which of the following

would entrepreneurs be most likely to do:
a) roll dice with a one in three chance of winning
b) work on a problem with a one in three chance of solving it in the time given
c) do neither (a) nor (b) because the chances of success are so small

6. The entrepreneur is most likely to choose a task:

a) which involves a moderate level of risk but is still challenging
b) where the risks are high but the financial rewards are also very great
c) which is relatively easy and the risks low

7. Profits are important to entrepreneurs because:

26 Know About Business

 TOPIC 3: Entrepreneurial motivation

a) profits provide the money which allows them to develop other ideas and take
advantage of other opportunities
b) profits are the only measure of how successful they have been
c) the main reason they accepted the risks of starting a new business was to
accumulate personal wealth

8. Which of the following do entrepreneurs value most highly:

a) the importance placed on competence and efficiency
b) the freedom to control how they may use their time
c) the opportunity to create and to do new things

27
 MODULE 2: Who are entrepreneurs?

EXPLANATION OF “AN ENTREPRENEUR IS

MORE LIKELY…” QUIZ

1. Faced with a problem, the entrepreneur is most likely to:

b) get help from an expert.
Entrepreneurs tend to be independent, self-reliant individuals. They may try to
work through a problem alone. But successful entrepreneurs are aware that they
need to seek aid. The task of starting a business is a difficult one which usually
requires the help of others. Successful entrepreneurs will look for support from
those who can be most helpful, whether they are friends or strangers.

2. The entrepreneur is most like the distance runner who runs mainly:
c) to try to better his or her previous time over the distance.
Entrepreneurs often have a tremendous amount of energy and drive, with a
capacity to work for long hours. Good general physical health is necessary in order
to withstand the stress of running their own business. Entrepreneurs tend to
compete against standards of achievement they set for themselves, rather than
standards set for them by others. Entrepreneurs are most like the runner who
races to beat the clock. To achieve a new “personal best” time will likely be more
rewarding than beating others.

3. Entrepreneurs are motivated by the need to:

a) achieve a goal of greater personal importance.
Business men and women usually have both economic and social goals when
they start a business. They may also be motivated by the need to gain attention
and recognition, but this will not be their main drive. Entrepreneurs are motivated
more by their need for personal achievement than personal power. Power and
recognition may be the result of success but they are not the motivating goals.

4. Entrepreneurs believe the success or failure of a new business venture

depends primarily on:
c) their own strengths and abilities.
Successful entrepreneurs are likely to have a high level of self-confidence. They
tend to believe strongly in themselves and their own abilities to achieve the goals
they set. They also believe that what happens to them in their lives is determined
mainly by what they themselves do. They are not reluctant to place themselves in
situations where they are personally responsible for the success or failure of an
operation. They will take the initiative to solve a problem and provide leadership
where none existed before.

5. If given the chance to earn a substantial reward, which of the following

would entrepreneurs be most likely to do:
b) work on a problem with a one in three chance of solving it in the time
given.

28 Know About Business

 TOPIC 3: Entrepreneurial motivation

Entrepreneurs are calculated risk takers, but they are not gamblers. Successful
entrepreneurs are very good at assessing the amount of risk involved in a venture
and will choose to accept that risk if they feel their personal chances for success
are relatively high. Entrepreneurs will avoid situations where the results depend
mainly on chance or the efforts of others.

6. The entrepreneur is most likely to choose a task:

a) which involves a moderate level of risk but is still challenging.
Entrepreneurs tend to be positive, optimistic people who focus their attention on
their chances of success rather than the chances of failure. Individuals who fear
failure tend to select tasks which are either very easy or where the risk is very low.
A good entrepreneur selects those tasks which are challenging but where the
opportunities for success are reasonably good.

7. Profits are important to entrepreneurs because:

a) profits provide the money which allows them to develop other ideas and
take advantage of other opportunities.
Entrepreneurs will enjoy the benefits of good profits to provide a better life for
themselves and their families. However, the will usually spend only a portion of
their profit on personal consumption. Successful entrepreneurs will invest most of
the profits in investments in the business and in the development of new business
ideas.

8. Which of the following do entrepreneurs value most highly:

c) the opportunity to create and to do new things.
Many entrepreneurs are motivated by the desire to be their own boss. They also
know that being your own boss usually means you have little time for anything
else, particularly when starting up a new business. Being able to generate new
ideas and turning these ideas into successful products and services, is one of the
main reasons that entrepreneurs have to start and grow their business.

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 MODULE 2: Who are entrepreneurs?

HANDOUT 1

Entrepreneurial motivation, attitudes and

habits

Motivation and attitudes

A positive attitude helps entrepreneurs to focus on desired activities and events and
the results they hope to achieve.
Motivation comes from having a positive attitude. Entrepreneurs try to learn and get
benefits from every experience they have. Motivation and having a positive attitude
may take a long time to develop. The following factors can help entrepreneurs to
develop a positive attitude:
 Focus on opportunities to learn from each experience.
 Be involved in positive activities, for example playing sports, reading books.
 Choose objectives that are achievable and have an impact.
 Make friends and interact with other entrepreneurs.
 Get inspired by the actions and characteristics of successful entrepreneurs.
 Have successful entrepreneurs help you.
 Avoid negative thoughts and ideas.
 Take advantage of opportunities to improve your situation, whether it is in your
personal life, work life or community life.
 Change your environment to make it more positive and conducive to achieving
your desirable goals. The environment affects your performance.
 Believe in yourself. Success comes to those who use their talents and abilities
to the fullest extent.
 Be action-oriented and results-oriented. Focus on specific problems; once you
have reached a decision, take action to solve the problem.
Entrepreneurs have a positive outlook on life and view their experiences in a positive
manner. They find satisfaction in work and are proud of their accomplishments. Set
aside time each day to think about your achievements.
Expand your thoughts and think “big.” Thinking “big” is the ability to think beyond the
day-to-day activities and see the overall direction you are going and the big goals you
want to achieve and then to think about the actions you will take to obtain these broad
goals. People who see the “Big Picture” become business and community leaders.

30 Know About Business

 TOPIC 3: Entrepreneurial motivation

Be highly organized mentally; be able to focus on a variety of problems. Be able to

shift your attention from one problem area to another with a minimum of effort.
Successful entrepreneurs are highly motivated, enjoy their work and are totally
involved and dedicated to being successful at whatever what they are doing. It is their
motivation and positive attitude that turns their job into exciting, interesting and
rewarding work.

Entrepreneurial habits
How entrepreneurs act is a reflection of how they view themselves and their
environment. For example, some entrepreneurs have the habit of starting work early
in the morning and to use this time productively. After practicing such habits for a
while, you will probably be motivated to continue the activity on a regular basis.
A good habit provides motivation for increased performance. Reflect on your current
habits in relation to your future goals. You may have to develop new habits to get
motivated and ensure future success. True entrepreneurs are constantly changing
and growing.

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 MODULE 2: Who are entrepreneurs?

WORKSHEET 2

Entrepreneurial motivation
a) Why is having a positive attitude essential for achieving success?

______________________________________________________
______________________________________________________

b) What is the primary reason why entrepreneurs need to be highly motivated?

______________________________________________________
______________________________________________________

c) Identify 3 important lessons learnt from HANDOUT 2 and explain how these
lessons can help you to develop a positive attitude.

______________________________________________________
______________________________________________________

d) What does it mean to see ‘the big picture?’

______________________________________________________
______________________________________________________

32 Know About Business

 TOPIC 3: Entrepreneurial motivation

ANSWERS TO ENTREPRENEURIAL MOTIVATION

QUESTIONS

a) Why is having a positive attitude essential for achieving success?

Answer: Being an entrepreneur is difficult and entrepreneurs may encounter many
barriers and disappointments. Having a positive mental attitude will help them
overcome these setbacks.

b) What is the primary reason that entrepreneurs need to be highly motivated?

Answer: Entrepreneurs depend on their own abilities and talents. They believe in
themselves and they encounter many problems and risks. They need to be self-
motivated because they usually don’t have other people to motivate them.

c) Identify 3 important lessons learnt from Handout 1 and explain how these
lessons can help you to develop a positive mental attitude.
Answer: Any 3 lessons of the following will suffice:
 Be involved in positive activities
 Focus on opportunities to learn from experience
 Choose objectives that are achievable and have an impact
 Make friends and network with other entrepreneurs
 Get inspired by the actions and characteristics of successful entrepreneurs
 Have successful entrepreneurs help you
 Avoid negative thoughts and ideas
 Take advantage of opportunities to improve your situation, whether it is in your
personal life, work life or community life
 Change your environment if it is not appropriate to your needs. The
environment affects your performance.
 Believe in yourself. Success comes to those who use their talents and abilities
to the fullest extent
 Be action-oriented and results-oriented. Focus on specific problems; once you
have reached a decision, take action to solve the problem

d) What does it mean to see ‘the big picture?’

Answer: Seeing the “big picture” is the ability to think beyond the day-to-day activities
and see the overall direction you are going. It enables you to think about the actions
to take in order to reach your big goals.

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 MODULE 2: Who are entrepreneurs?

Topic 4: What Does it Take to Set

up a Small Business?

SUGGESTED TIME 1.5 hours

LEARNING OUTCOMES

 Learners identify and describe some key variables that are important to
consider when setting up a sustainable small business.
 Learners develop an awareness of what it takes to set up a small business
and factors to consider to avoid failure and minimize risks.

ACTIVITIES

1. Conduct a brainstorming exercise as follows:

 Ask leaners to list what they consider the key factors that can determine
success in setting up a small business. List the responses on the board.
 Have the class list factors that cause small enterprises to fail, then discuss
actions that they would implement to avoid small business failure.
2. Have learners read HANDOUT 1. Show SLIDE 1 and invite learners to discuss
their understanding of the headings: Motivation, Ability, Idea and Resources.
3. Have learners read HANDOUT 2 (example of an internet café) and discuss
each of the key factors in setting up an internet cafe. Then divide the class into
small groups. Ask each group to choose an idea or product or service, and
then to determine what would be the key factors (e.g. resources and abilities
required to set up a business to build and market low-cost houses).
4. Ask each group to choose someone to present their findings, justifying their
responses. Discuss the presentations in class. The class may vote on the best
group presentation of a proposed business.
As a summary, explain that the entrepreneur and his or her entrepreneurial
talents are very essential in setting up a business. An entrepreneur takes the
initiative and the risks of setting up and organizing the business. Point out that
in order to succeed, you need the other four factors as well. Just two or even
three factors is not enough for success. Emphasize that all 4 elements can be
acquired or developed.

34 Know About Business

 TOPIC 4: What does it take to set up a small business?

HANDOUT 1

What does it take to set up a small business?

How do I become an entrepreneur? How can I set up a successful business? These

are questions that people often ask. Unfortunately, no single formula has been
identified, but according to business management literature and studies, success
depends on the ability to spot opportunities in the market and act on them by
organizing the necessary resources to offer something attractive to customers and
take on the risks. The crucial ingredient in the process is the entrepreneur who takes
the initiative and also bears the risk when setting up a small business. The
entrepreneur’s capability to do this successfully largely depends on motivation, ability,
idea and resources.

Motivation
Most people would agree that to be successful in anything in life, a person must be
motivated and determined to succeed. You will not become the fastest marathon
runner, the best football player or the best ice skater without motivation. This is also
the case for setting up a successful business. This is reflected in how persistent an
entrepreneur is in overcoming obstacles that might get in the way, how an
entrepreneur goes about seeking information and how he or she acts on opportunities.

Ability
The second important factor is whether an individual or the other partners involved in
setting up the business have particular skills and abilities. These include the
necessary knowledge about the market, technical knowledge of the products or
services to be developed and business management skills to develop the business.
To successfully start a business you do not need all the abilities yourself. One way of
making up for a lack of abilities in a specific area could be to team up with people who
have the necessary expertise or to buy them from business consultants.

Idea
It is necessary to have a feasible idea for a project, product or service. In other words,
does the product or service meet the needs of potential clients and are these clients
willing to purchase it in sufficient quantities to make the project worthwhile? How is
the product or service going to be offered so that it is more desirable or better than
what is currently available, and how will competitors react?

Resources
Whether the entrepreneur can acquire the necessary resources will not only influence
performance but also, in some cases, whether the business can start at all. Examples
here include capital, natural resources, cash, premises, materials, equipment and

35
 MODULE 2: Who are entrepreneurs?

labour. The availability of infrastructure (electricity, Internet, roads, waste collection

and recycling) and support services is also very important.

36 Know About Business

 TOPIC 4: What does it take to set up a small business?

SLIDE 1

What does it take to set up up a small

business?

Idea and Resources

market

Motivation and
determination Ability

Entrepreneur

Organization
Plan +
Management

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 MODULE 2: Who are entrepreneurs?

HANDOUT 2

What does it take to set up an Internet café?

Motivation

 Motivation to make profits

 Interest in Internet-related business
 Passion for offering convenient Internet services
 Determination to solve obstacles
 Motivation to develop new initiatives and new ideas

Ability

 IT or computing knowledge and skills

 Able to install software and do routine maintenance and repair
 Book-keeping and basic organization
 Ability to teach/train clients in basic computing and problem solving
 Ability to supervise staff

Idea
 Viability: For instance the number of other internet cafés in the area
 Service/prices vis-à-vis other internet cafés in the area
 Profile of potential clients and estimated size of the market
 Nice ambiance – with soft drinks and snacks for sale; and background music in
a well-ventilated room
 Provision of other services, such as printing and photocopying
 Accommodating specific markets, such as working people by staying open late
hours

Resources
 Desktop PCs, all networked
 Dial-up, broadband or wireless connection
 Account with an Internet Service Provider (ISP) or satellite provider
 Software to manage transactions and accounts
 Desks and chairs
 Air conditioners, fans or heating
 Skilled staff to support business operations

38 Know About Business

 TOPIC 5: The decision to become an entrepreneur

Topic 5: The Decision to Become an

Entrepreneur

SUGGESTED TIME 1.5 hour

LEARNING OUTCOMES

 Learners can explain why and how people make the decision to start and run
their own business.
 Learners understand their own current entrepreneurial traits and mind-sets.

ACTIVITIES

1. Write the following sentence on the board:

“WHY AND HOW DO PEOPLE MAKE THE DECISION TO START THEIR
OWN BUSINESSES?”
Then either conduct a brainstorming session or divide the class into groups:
Ask them to come up with as many explanations as possible as to how, and
why, individuals or groups of people start their own business. List the
responses on the board.
2. Invite learners to read HANDOUT 1. Have the class discuss how individuals
(or groups) arrive at the decision to start their own business. Discuss each of
the factors and give examples to illustrate the points. Compare points
presented in HANDOUT 1 with the class responses. As a summary, show and
discuss SLIDE 1.
3. Invite learners to complete the quiz on WORKSHEET 1. Ask them to rate
themselves, and explain the significance of the scores. If the learner had
mostly (a) ratings, he or she probably has what it takes to operate a business.
If learners rated items mostly (c), they might need to focus more on developing
their entrepreneurial competencies. Encourage learners to improve the
entrepreneurial competencies they value, and to form a partnership with one
or two other persons who have the competencies that the learner is missing.

39
 MODULE 2: Who are entrepreneurs?

HANDOUT 1

The decision to become an entrepreneur

An important question that often comes up is how persons arrive at the decision to start
a business and become an entrepreneur. In other words, what are the forces or factors
that stimulate a person to venture into entrepreneurship?
Above all, a good business environment where it is easy to start up and run a business
is required for someone to decide to become an entrepreneur. A good business
environment is characterized by adequate infrastructure and services, access to
finance, good information and good business laws. Lack of skilled labour, support
structures and government support often prevent people from setting up and registering
a formal business.
In addition, the major personal reason and explanations found in research and literature
are categorized under 3 main headings: a) looking for a change from the current
situation, b) being motivated by a role model and c) possessing the necessary
entrepreneurial competencies.
Change from current situation
Many people start a business because they want or need to make a change to their
current situation. Losing a job, being displaced or experiencing a change in one’s
personal life can be a reason. For example, immigrants often start a business to
generate an income in their new environment since it may often be difficult to find a job
initially. Other people decide to start a business because they have innovative business
ideas and see market opportunities.
Role model
Role models are often the source of inspiration for someone to decide to become an
entrepreneur. This is best illustrated by how the parents of entrepreneurs are often also
entrepreneurs. Research shows that between 25 to 34 per cent of business people had
a father or a mother who was also a business owner. However, the role model is not
confined to parents only, but also extends to other family members, peers and friends.
Having entrepreneurial competencies
Another reason for a person to become an entrepreneur is because he or she feels that
he or she has the needed entrepreneurial competencies. For many years, there was a
debate about whether “entrepreneurs were born or made”? Initially many people
thought that entrepreneurs were “born” with the right attitude and skills and that you
could not learn or “be made” to become an entrepreneur. Today, we know that
entrepreneurial skills can also be learned.
The famous business writer Peter Drucker probably said it best when he wrote: “Most
of what you hear about entrepreneurship is all wrong. It’s not magic; it’s not mysterious
and it has nothing to do with genes. It’s a discipline and, like any discipline, it can be
learned.”
In fact, this is the reason for entrepreneurship education and why you are participating

40 Know About Business

 TOPIC 5: The decision to become an entrepreneur

in this KAB training. Therefore, remember the traits or characteristics of successful

entrepreneurs as we have learned about earlier in this module. They can be learned
and are all about hard work, self-confidence, innovation, creativity, goal-orientation,
persistence, being able to cope with failure, being willing to listen, coping with
uncertainty, reliability and integrity and risk taking, to mention a few.

41
 MODULE 2: Who are entrepreneurs?

SLIDE 1

The decision to become an entrepreneur

Changes from
current
situation

Business
environment
The decision to
become an
entrepreneur

Role model

Entrepreneurial
competencies

Adapted from (1) Hisrich, R D. 1986. Entrepreneurship and intrapreneurship: Methods of creating new companies that
have an impact on the economic renaissance of an area, in Entrepreneurship, Intrapreneurship, and Venture Capital by
Hisrich, R D ed. Lexington Books, MA and (2) Introduction to entrepreneurship. Module 1, Start Your Own Business
Programme. Hungarian Foundation for Enterprise Foundation. Undated. Budapest.

42 Know About Business

 TOPIC 5: The decision to become an entrepreneur

WORKSHEET 1

Self-assessment of personal traits

For each question, please tick the answer that shows what you feel or comes closest
to it. Be honest with yourself. There are no right or wrong answers.

1a. I do things on my own. Nobody has to tell me to get going.

1b. If someone gets me started, I keep going all right.
1c. Easy does it. I don’t put myself out until I have to.

2a. I like people. I can get along with just about anybody.
2b. I have plenty of friends – I don’t need anyone else.
2c. I find most people a bother.

3a. I can get most people to go along with me when I start something.
3b. I can give orders if someone tells me what we should do.
3c. I let someone else get things moving. Then I go along if I feel like it.

4a. I like to take charge of things and see them through.

4b. I’ll take over if I have to, but I’d rather let someone else be responsible.
4c. There’s always someone around eagerly wanting to show how smart they are. I
say let them.

5a. I like to have a plan before I start. I’m usually the one to get things lined up when
my friends want to do something.
5b. I do all right unless things get too difficult. Then I give up.
5c. You get all set and then something comes along and blows the whole thing up.
So I just take things as they come.

6a. I can keep going as long as I need to. I don’t mind working hard for something I
want.
6b. I’ll work hard for a while, but when I’ve had enough, that’s it.

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 MODULE 2: Who are entrepreneurs?

6c. I can’t see that hard work gets you anywhere.

7a. I can make up my mind quickly if I have to. It usually turns out okay too.
7b. I can make up my mind if I have plenty of time. If I have to make up my mind fast,
I think later I should have decided the other way.
7c. I don’t like to be the one who has to decide things. I would probably make a
mistake.

8a. People can trust what I say. I don’t say things I don’t mean.
8b. I try to be genuine most of the time, but sometimes I just say what’s easiest.
8c. Why should I speak the truth if the other person doesn’t know the difference?

9a. If I make up my mind to do something, I don’t let anything stop me.

9b. I usually finish what I start – if it doesn’t go wrong.
9c. If something I start does not work right away, I turn off or give up. Why worry?

10a. I have a lot of energy. I seldom get tired!

10b. I have enough energy for most things I want to do.
10c. I run out of energy sooner than most of my friends seem to.

Adapted from Olm K. W. and G. G. Eddy. 1985. Entrepreneurship and Venture Management: Text and
Cases. Charles E Merrill Publishing Co., Columbus, Ohio.

44 Know About Business

 1 What is entrepreneurship?

2 Who are entrepreneurs?

3 Entrepreneurial qualities

4 How do I find a business idea?

5 How do I start a business?

6 How do I run a business?

7 Next steps

8 How do I develop my business plan?

Facilitator’s Guide

Learner’s Workbook

ISBN XX-XXXX-XXX-X
Illustrations: Gianmaria Roccia – Photographs: .......................