ENTREPRENEURSHIP RESEARCH AND DEVELOPMENT CENTRE

KADUNA STATE UNIVERSITY, KADUNA

ENT 301: ENTREPRENEURSHIP AND INNOVATION
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MODULE 5: CONTEMPORARY ENTREPRENEURSHIP ISSUES

MODULE 5: CONTEMPORARY ENTREPRENEURSHIP ISSUES

This module is subdivided into four major units as follows:
Unit 1: Intellectual Property Right,
Unit 2: Entrepreneurial Knowledge
Unit 3: Business Record keeping
Unit 4: Savings

Unit 1: Intellectual Property Rights

Learning outcomes:
Upon completion of this unit, participants would have been able to:
 Define what intellectual property is and how it is protected.
 Identify and discuss Forms of intellectual property right.
 Discuss the strategies for protection of intellectual property.

Content:
 Meaning, scope and dimensions of intellectual property
 Forms of intellectual property right
 Strategies for Protection of Intellectual Property

Definitions of Intellectual property

 Intellectual property is the creation of the human mind. It is the intangible property
of human creation. According to the World Intellectual Property Organization (WIPO),
Intellectual property refers to creations of the mind: inventions; literary and artist
Intellectual works; and symbols, names, and images used in commerce. In this article,
we briefly discussed the overview of Intellectual property Laws in Nigeria.

 Intellectual Property: (IP) refers to creations of the mind: inventions, literary and
artistic works, and symbols, names, images, and designs used in commerce. It is a
creative works that have economic value and are protected by law. It is the legal
mechanism through copyright, patents and trademark - that ensures that the products
we buy are genuine, and that someone else does not take credit for our ideas.

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Forms of Intellectual Property right/Law in Nigeria
In Nigeria, a number of laws have a bearing on the protection and administration of the
different rights that make up intellectual property. However, the three main statutes
governing the intellectual property Law in Nigeria are the Copyright Act, the Patents and
Designs Act, and the Trademarks Act.

Copyright:
Copyright is the exclusive rights granted to the creator of an original work. It also simply
means the right to copy. Copyright gives the owner the exclusive right to authorize or prohibit
certain uses of his/her work by others. Copyright and related rights are governed by the
Copyright Act Cap 68 Laws of the Federation of Nigeria 1990. The body responsible for matters
concerning copyright and related rights in Nigeria is the Nigerian Copyright Commission.
Exclusive rights of copyright are divided into two; moral rights which protects the reputation
and the integrity of the author and economic rights which gives the author the right to earn
profit by direct or indirect exploitation of a work. Section 1(1) of the Copyright Act provides
for works protected by copyright which include; (a) Literary works (b) Musical works (c)
Artistic works (d) Cinematograph films (e) Sound recordings (f) Broadcasts It is important to
note that copyright does not protect ideas unless it original and fixed. According to section
1(2), a literary, musical or artistic work must satisfy the twin requirements of originality and
fixation. Works that satisfy these requirements enjoy automatic copyright protection, without
the need for registration or compliance with any formal or procedural rules. However, the
Nigerian Copyright Commission (NCC) provides owners of copyrights the option to deposit a
copy of their works with the NCC and receive a certificate which serves as notification of the
existence of the work to the general public.

Related or Neighboring Rights:

Neighboring rights involve creativity which falls short of the fixation requirements and do not,
therefore, qualify for copyright protection. These are generally, rights of individuals who
assist intellectual creators (like musicians) to communicate their message and to disseminate
their works to the public. There are basically two neighboring-rights statutorily recognized in
Nigeria, these are the performance rights and rights to the expression of folklore.

Duration of Copyright and Related rights:

Copyright in literary, musical or artistic works other than photographs lasts until seventy (70)
years following the death of the author. In cases where the work is owned by a government
or a body corporate, the copyright in the literary, musical or artistic work will expire seventy
(70) years after the work was first published. Copyright in films and photographs lasts 50 years
after the year the work was first published. Copyright in sound recordings also lasts 50 years
after the recording was first published. Performance rights subsist until the end of the period
of fifty years from the end of the year in which the performance first took place.

Patent:
Patent is an exclusive right granted for an invention which is a product or process. It is a grant
from a government that confers upon an inventor the right to exclude others from making,
using, selling, importing or offering an invention for sale for a fixed period. This invention may
be a new product or process. The patent protects the inventor from others who may attempt
to make, use, distribute or sell the invention without the patent owner's consent. A patent is

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a monopoly right in an invention. Patent law in Nigeria is regulated by the Patent and Design
Act Cap P2 LFN 2004. The lifespan of the patent lasts for 20 years provided the annual renewal
fees are paid for the duration of its potential life. Where the patentee defaults in the payment
of the annual renewal fee, the patent lapses, after a 6 months period of grace, if still not be
renewed and cannot be revived again.

Requirements for Patentability:

Section 1 of the Patent and Design Act sets out the requirement of a patentable invention (a)
If it is new, results from inventive activity and is capable of industrial application; or (b) If it
constitutes an improvement upon a patented invention and also is new, results from
inventive activity and is capable of industrial application. . According to section 1(1) of the
Patent & Designs Act, an invention is considered patentable if it meets the following
conditions;

 It must be new
 It must be the result of an inventive step; and
 It must be capable of industrial application.

In Nigeria, Patents cannot be validly obtained in respect of:

(a) plant or animal varieties, or essentially biological processes for the production of plants or
animals (other than microbiological processes and their products); or

(b) inventions the publication or exploitation of which would be contrary to public order or
morality (it being understood for this paragraph that the exploitation of an invention is not
contrary to public order or morality merely because its exploitation is prohibited by law).

Furthermore, the provisions of section 1(3) of the Patent & Designs Act states that any
publication made available to the public by oral disclosure, a document or a prior use will
destroy the requirement of novelty and ultimately make an invention non-patentable.
Provided that, however, an invention is not deemed to have been made available to the public
merely because, within six months preceding the filing of a patent application in respect of
the invention, the inventor or his successor in title has exhibited it in an official or officially
recognized international exhibition.

Exceptions:
Section 1 (4), (5) provides for the exceptions to patentability. These include plants or animal
varieties, or essentially biological processes for the production of plants or animals.
Inventions the publication of which will be contrary to public order and morality are also
excluded, so also are principles of a scientific nature.

Application of Patent:
Section 3 of the Act provides for the formal requirements for a patent application, which state
as follows: (a) shall be made to the Registrar and shall contain – (i) the applicant’s full name
and address and if that address is outside Nigeria, an address for service in Nigeria, (ii) a
description of the relevant invention with any appropriate plans and drawings, (iii) a claim or

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claims, and (iv) such other matter as may be prescribed; and (b) shall be accompanied by – (i)
the prescribed fee, (ii) where appropriate, a declaration signed by the true inventor
requesting that he be mentioned as such in the patent and giving his name and address (iii) if
the application is made by an agent, a signed power of attorney

INDUSTRIAL DESIGNS:

Industrial Design is defined as any combination of lines or colors or both, and any three-
dimensional form, whether or not associated with colors, if it is intended by the creator to be
used as a model or pattern to be multiplied by an industrial process and is not intended solely
to obtain a technical result. They are those elements incorporated into mass-produced items
that tend to enhance attractiveness by their appearance. Industrial design protection covers
designs that are original and novel. It is called industrial design because for it to qualify for
protection, the design must be capable of application for mass or industrial reproduction It is
generally the ornamental or aesthetic aspects of a product. The design of a product acts as a
distinguishing factor for branding and also signifies the importance of aesthetic appeal to
consumers in the choice of products. It is governed by the Nigerian Patents and Designs Act.

Requirement for Registration:

Section 13(1) of the Patent and Designs Act 1990 provides that an industrial design is
registrable if; (a) it is new (b) it is not contrary to public order or morality.

Registration of Industrial Designs:

An application must be filed at the Registry of Trademarks, Patents and Designs in Nigeria. In
order to register a design in Nigeria, there are a number of intellectual property law or steps
an applicant must first take as stated below:
 The applicant must make sure the design conforms to the requirement of registration
 The applicant must not publicize the design before seeking to register the design and
where he does, It becomes part of the public domain and cannot be protected after
six months of such exhibition, or unless the priority of an earlier application can be
claimed.
 The applicant must provide a specimen of the design.
 The applicant must also provide basic information including the name of the applicant,
address, an indication of the kind of products associated with the design, and the title
of the design.
 The applicant will also be required to pay the prescribed fees.
 A Power of Attorney, if the application is being made by an agent.
 Certified copy of the priority document if claimed.

TRADEMARK
A trademark may be described as a mark, which is used in the course of trade or business, to
identify goods or services emanating from a particular provider and to distinguish them from
those of others. A Trademark is any mark, sign, or combination thereof that the owners'
design to identify their product and differentiate it from other manufacturers' products,
especially competitors. Trademark is often called ‘brand’. By distinguishing brands of product

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or service, it builds the reputation of the brand. Trademarks also affect the consumers’ choice
of product. It is the symbol through which consumers identify and become familiar with a
particular product. The relevant authority in charge of trademark registration is the
Trademarks, Patents and Designs Registry under the Federal Ministry of Trade and
Investment. In our previous write-up, we explained the procedure for a trademark
registration in Nigeria.

Registration of Trademarks:
The trademarks register is divided into two parts: part A and part B. Section 9 of the
Trademark Act CAP T13 LFN 2004 provides that in order for a trademark to be registrable
under part A, the mark must contain one of the following:
• The name of a company, individual, or firm represented in a special or particular manner;
• The signature of the applicant for registration or some predecessor in his business;
• an invented word or invented words;
• A word or words having no direct reference to the character or quality of the goods, and
not being according to its ordinary signification a geographical name or surname;
• Any other distinctive mark. To be registrable under part B, the mark has to be capable of
being distinctive.

Non- Registrable Marks:

The non-registrable marks include marks, which are not permitted to be registered under the
Act. They include; • Marks which are deceptive or scandalous, contrary to law or morality. •
Names of chemical substances • The Nigerian Coat of Arms or other emblem of authority •
Patent, copyright, red cross and other similar words • Identical and resembling trademarks

Procedure for Registration of Trademarks:

• Trademark search
• Acknowledgment by the registrar if such mark follows the requirement of registration
• Acceptance
• Publication in the Trademark journal
• If no opposition, the registrar issues a trademark Certificate

Strategies for Protection of Intellectual Property

Protecting your Intellectual Property (original ideas, concepts, products, etc) is as important
as its inception. Once you have identified your intellectual property you should develop
strategies to protect your rights so that you don't put your business at risk. Imagine if your
competitor discovered your secret and started replicating it, or you told someone your idea
and then discovered too late that you had lost the legal right to make it exclusively yours.

The key is not to talk about your idea or make your IP public knowledge before you have
had a chance to protect it. Intellectual property (IP) can be bought, owned, sold, licensed
out or bequeathed in much the same way as a building or a block of land. IP can be so
valuable that many businesses list it among their assets on their balance sheet. It's
important to develop effective strategies to protect you IP within your business, not only
to protect valuable assets but also to safeguard the products, processes and creative inputs
from which the profits of the business emanate.

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Step 1: Register Your IP
The first step of any protection strategy is to register your IP. There are seven types of IP
protection available: patents; trademarks; plant breeders’ rights; registered designs;
copyright; circuit layout rights; and confidentiality/trade secrets.

Different IP rights vary in the protection they provide and in many cases more than one
type may be necessary to fully protect your creation. You can patent your IP through a
patent attorney and/or an intellectual property lawyer, either of whom will take your
current model and appropriately describe it in minute detail to distinguish it from any other
similar products.

Step 2: Act To Keep It Secret and Demonstrate Ownership

The second step in a protection strategy is to take the necessary actions to keep your idea
a secret and demonstrate your ownership of the idea. Consider some of the following steps
to protect your idea:

Step 3: Keep your idea a secret

Contact only those people who can assist you with planning your product development.
Before you discuss your idea with anyone make sure you have a signed confidentiality
agreement or a non-disclosure agreement in place, which describes the object/idea along
with details about yourself and the person to whom you will disclose these details. The
agreement must be signed in your presence and preferably witnessed and more
importantly - it must be dated to establish the time, date and place of disclosure.

4: Demonstrate that the idea is yours.

Write down in detail what your idea is; what it does and how it works. Draw a detailed
picture of the object or take a photograph of the prototype. Make copies and put the
original documents in a sealed, self-addressed envelope and mail the envelope by
registered mail. When you receive the envelope DO NOT open it. Put it in a safe place. This
establishes evidence of the time date and place of original thought.

Step 5: Make sure you are not infringing anyone else's IP.
Search the IP Australia website to find out if there are p
products of the same type and application as yours. This will save you time and money in
your application for IP protection. Many types of protection aren't available if your idea is
similar to one that is already covered by a patent, trade mark or the like.

Activities:

1. The resource person should be able to provide an adequate explanation with example
what intellectual property is and how it is protected
2. The resource person is expected to Identify and discuss Forms of intellectual property
right and also discuss the strategies for protection of intellectual property

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Assessment:
1. Ask the students to provide adequate explanation with relevant examples of what intellectual
property is and how it is protected as were taught
2. Use group session(s) for the students to demonstrate to Identify and discuss Forms of
intellectual property right and also discuss the strategies for protection of intellectual property

Discussion:
1. Having analyze the answers given by the students from the assessment questions (1
and 2), the resource person should then discuss the results with the students.

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Unit 2: Entrepreneurial Knowledge
Learning outcomes:
Upon completion of this unit, participants would have been able to:
 Define what Entrepreneurial Knowledge is all about.
 Identify and discuss sources and benefits of Entrepreneurial Knowledge
 Discuss the strategies for building and maintaining sources and benefits of
Entrepreneurship Knowledge
Content:
 Meaning and scope Entrepreneurial Knowledge
 sources and benefits of Entrepreneurial Knowledge
 Strategies for building and maintaining sources and benefits of Entrepreneurial
Knowledge

Definitions of Entrepreneurial Knowledge

 Describes the ability to recognize or create an opportunity and take action aimed at
realizing an innovative knowledge practice or product. Knowledge entrepreneurship is
different from 'traditional' economic entrepreneurship in that it does not aim at the
realization of monetary profit but focuses on opportunities to improve production
(research) and knowledge (as in personal transformation) rather than maximizing
monetary profit. It has been argued that knowledge entrepreneurship is the most
suitable form of entrepreneurship for not-for-profit educators, researchers and
educational institutions
 It refers to an individual’s appreciation of the concepts, skills and mentality expected of an
entrepreneur

 It is an important strategic asset. It is a sum of skills, experiences, capabilities and

insight which you collectively create and rely on in your business. It affects all the
activities in and around ay promising venture or endeavor.

Sources of Entrepreneurship Knowledge:

Customer knowledge -it is expected that an entrepreneur should know his/her customers'
needs and what they think of the venture. The entrepreneur may be able to develop mutually
beneficial knowledge sharing relationships with customers by talking to them about their
future requirements, and discussing how the entrepreneur may be able to develop his/her
own products or services to ensure that he/she meet their needs.

Employee and supplier relationships - seek the opinions of the employees and suppliers –
they will have their own impressions of how the venture is performing. Entrepreneur can use
formal surveys to gather this knowledge or ask for their views on a more informal basis.

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Market knowledge - watch developments in the chosen sector. How are other competitors
performing? How much are they charging? Are there any new entrants to the market? Have
any significant new products been launched?

Knowledge of the business environment – a promising venture can be affected by numerous

outside factors. Developments in politics, the economy, technology, society and the
environment could all affect your business' development, so the entrepreneur need to keep
his/herself informed. The entrepreneur could consider setting up a team of employees to
monitor and report on changes in the business world.

Professional associations and trade bodies - their publications, academic publications,

government publications, reports from research bodies, trade and technical magazines.

Trade exhibitions and conferences - these can provide an easy way of finding out what their
competitors are doing and to see the latest innovations in chosen sector.

Product research and development - scientific and technical research and development can
be a vital source of knowledge that can help the entrepreneur create innovative new products
- retaining your competitive edge.

Organizational memory - be careful not to lose the skills or experience the chosen venture
has built up. The entrepreneur needs to find formal ways of sharing his/her employees'
knowledge about the best ways of doing things. For example, entrepreneur might create
procedural guidance based on their employees' best practice.

Non-executive directors - these can be a good way for entrepreneur to bring on board
specialized industry experience and benefit from ready-made contracts.

Benefits of entrepreneurial knowledge

There is a well-known saying that we all hear as kids, in one form or another – “knowledge is
power.” Likewise, knowledge in business gives you power. A large part of what it means to
make a success of yourself as an entrepreneur is to take your mistakes and failures as learning
opportunities, and use them to motivate yourself to improve your business in core areas. The
following are some of the benefits of entrepreneurial knowledge:

 D i s c o v e r i s s u e s i n t h e c h o s e n v e n t u r e : No, and even the most successful

and acclaimed entrepreneurs in the world have experienced their fair share of failure
while climbing to the top. A good business owner never stops learning. Knowledge
enables entrepreneur to identify and seize opportunities around, it enables
entrepreneur to thrive in the midst of competition and guarantees its relevance in
chosen industry. But, if entrepreneur does not know there is an issue, you’ll never
know how to improve. It is useful to look up resources in order to get a sense of how
to gather data and deepen such knowledge of the strengths and weaknesses of their
own company. When an issue is spotted, entrepreneur can work to fix it.

 v a l u a b l e t o c u s t o m e r s a n d c l i e n t s : As an entrepreneur, your key purpose

is to provide some degree of value to your customers or clients in exchange for the

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 money they are willing to pay you for that benefit. But what makes you valuable to
your customers or clients, when all is said and done? Well, it’s largely a matter of your
skills and insights – as these allow you to identify and address customer needs
shrewdly and effectively, while also differentiating yourself from your competition,
and bringing something new to the table that they might not be able to offer. For
example, if you want to know how to find duplicates in Google sheets, you must be
highly skilled in using spreadsheets or excel sheets, thereby using certain functions for
easily finding duplicates that save time and effort. The better you are able to develop
and refine your skills, the more you understand the nuances of your role. This gives
you the power to be more valuable to your customers and clients.

 a d e q u a t e k n o w l e d g e o f i n d u s t r y , Running a successful business requires a

lot of smart maneuverings, and the ability to identify and seize opportunities as they
present themselves. Of course, before you can properly identify and seize any
opportunity, you need to understand your industry sufficiently well. With enough
nuance, you will be able to properly read the various developments that are going on.
Knowledge helps in forecasting the likelihood of a harmful event happening and
putting in place effective systems to deal with them. Sound and in-
depth understanding is a trademark of successful entrepreneur. With the right
knowledge, they weigh their options and beat the odds to procure favorable
outcomes.

 a b i l i t y t o m a k e b e t t e r a n d i n f o r m e d d e c i s i o n s : Decisions are inevitable

responsibilities of entrepreneur. Whether it’s deciding the color scheme of the
company’s logo or debating where to situate the business, entrepreneur will have to
make decisions every day. As your business grows you’ll find yourself making more
and more important decisions that can make or mar the success of your business.
Similarly, if you run into hard times or challenges (like every successful business does)
you have to make some pretty hard ones. Sounds scary, huh? Relax, it’s not as scary
as you think. As a business owner, it’s up to you to make those decisions and if you
want to make the right ones, never underestimate the power of knowledge. The right
knowledge can tip the scales in your favor massively and ensure a favorable outcome.

 c u s t o m e r s a t i s f a c t i o n : Perhaps the best most visible mark of a successful

entrepreneur is one that is valuable or adds value to its customers or clients. The
whole essence of an entity is adding substantial sometimes intangible value to
customers or clients in exchange for money. A business that doesn’t fulfill this premise
cannot be said to be successful. Put in a simpler way, customer satisfaction indicates
a thriving business. As a business owner, customer satisfaction should be a major
goal for you. What better way to achieve this objective, than equipping yourself with
the right knowledge? You possibly can’t deal with what you don’t know exists, can
you?

 R i s k M i n i m i z a t i o n : A risk is a possibility that something bad or unpleasant will

happen. It goes without saying that taking risks is an unavoidable part of running a
business. Every business faces many different sorts of risks that could pose a potential
threat to the success of the business. These possible hazards can shatter a business

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 completely or cause serious damage that might be expensive and time-consuming to
repair. Risk management becomes, even more, paramount when your business grows
or tries something new such as launching a new product, changing the entire product
line, or trying to expand its market base.

 save money a n d i n c r e a s e s p r o f i t a b i l i t y : A good business owner should be

something of a jack of all trades. The different parts of your business such as (accounts,
marketing, human resource management, sales etc.) have to be tackled by different
experts for optimum results.

 B e o n t h e r i g h t s i d e o f t h e l a w : The law and legislation in your area of

business is something you have to consider always. Failure to do so can bring about
all sorts of disastrous consequences. You can’t afford to be at odds with the law if you
want to build a successful business. Acquiring adequate knowledge about the law as
it concerns your business is a good way to ensure that your business dealings are
legitimate. Knowledge in your business is of great value as it is essential your business
makes its mark in the business world. It shapes your business activities, enhances your
productivity, and fosters growth and development in your business. This also gives you
the edge that sets you apart in your industry. Knowledge – the right one, managed
and applied effectively – is truly power in your business.

STRATEGIES FOR BUILDING AND MANAGING ENTREPRENEURIAL

KNOWLEDGE
The following are some of the strategies for building and managing
entrepreneurial knowledge:

1 . H u g e p a r t o f y o u r b u s i n e s s c u l t u r e : Attend conferences, seminars, and

pieces of training where you can learn more and connect with people who know more.
Hire knowledgeable staff and keep their knowledge up to date by providing in-house
training for them. You can train them yourself, bring in a facilitator or have more
knowledgeable employees train the others, share and transfer their knowledge.

2 . m a k e e x p e r i e n c e a n i d e a l t e a c h e r : Mistakes and failure at one point or the

other are characteristics of an entrepreneurs’ climb to the top. Part of what it means
to make a success of yourself as an entrepreneur or business owner is to make those
mistakes you should make. Then change them into learning opportunities. Learning
doesn’t necessarily have to be in a classroom. Why not make every business
experience you gain and life itself your teacher? Every mistake you make has a silver
lining of experience which makes you wiser. Learning from your mistakes gives you
invaluable insights which aid your decision-making in the future.

3 . I n c r e a s e d B y R e s e a r c h : Sometimes the best business knowledge comes from

your own sources. Identify key areas in your business where knowledge will make a
positive difference and start your research. Source for information on the internet and
read books. Read articles on business and subscribe to business publications. Employ
a systematic approach to acquiring knowledge.

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Activities:

3. The resource person should be able to provide an adequate explanation of what

Entrepreneurial Knowledge is all about as well as Identify and discuss sources and benefits
of Entrepreneurial Knowledge
4. The resource person is expected to explain the practical Discuss the strategies for
building and maintaining sources and benefits of Entrepreneurial Knowledge

Assessment:
3. Ask the students to identify and discuss sources and benefits of Entrepreneurial
Knowledge as were taught
4. Use group session(s) for the students to demonstrate understanding of the strategies
for building and maintaining sources and benefits of Entrepreneurial Knowledge

Discussion:
2. Having analyze the answers given by the students from the assessment questions (1
and 2), the resource person should then discuss the results with the students.

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Unit 3: Business Record and Book Keeping

OBJECTIVES
This unit is designed to achieve the following objectives;
a. To build the capacity of the students on record keeping

LEARNING OUTCOMES
By the end of this unit the students should be able to;
a. Explain what is record keeping and its importance in business
b. List the tools for record keeping in business
c. Apply the various record keeping tools in their business

INTRODUCTION
Record keeping is a systematic way of keeping and storing information for future reference.
This should be put in place before starting a business
Unit 1: Understanding Records
- Definition of Record Keeping
Record keeping is the process or way of storing information and records of activities
or business financial transactions. Accurate record keeping help entrepreneurs in
making better decisions affecting their business.
Purpose of Record Keeping
 Help entrepreneurs identify and solve problems within their business
 To effectively manage their financial resources
 To show the performance of the business
 It allows entrepreneurs track business expenditure as well as profit and loss
 Records keeping allow business development and facilitate planning for the future

Characteristics of Good Business Records

 Records should be user friendly
 They should be easily accessible and retrievable
 Records should be stored in a secured environment
 Records should be kept simple with a good title
 Records should be in a consistent format
 Records should be accurate and up to date
 Good records must be legible, signed and dated.

Activities:

1. The trainees should explain the process of record keeping in their own
understanding.
2. The trainer should lead trainees to discuss the characteristics of good
business records.

Assessment:
1. Students to explain their understanding of Record Keeping as discussed above.

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 2. Students in group should demonstrate their understanding of the characteristics of
good record keeping

Discussion:
1. The trainer should lead students in reviewing their answers based on the assessment
questions above to wrap up the lesson

Unit 2: Tools for Record Keeping

Entrepreneurial business is carried out using some tools (books) for record keeping. There are
different type of record books or documents kept by entrepreneur to manage their business.

Types of tools for record keeping

 Daily sales record- this is used to record all daily sales
 Credit sales record- this record contained information of sales done but not paid for.
 Receipt book – this records all money coming in
 Cash book – this is used to records all transactions of the business
 Stock taking record – these records all stocks available at a particular time in the
business
 Purchase and sales records – these records all purchases and sales of the business
 Statement of bank accounts – this contains all transactions (money in and out) at the
end of the month
 Invoices- this document shows details of what a supplier buys at a time
 Reports – this record contain information on all activities (expenses, transactions) of
a business at specific time

Activities:

1. The resource person is to display sample copies of the various tools of record
discussed above and lead trainees to discuss them.
2. The resource person is expected to lead trainees to practice how to fill
information in three selected tools of record.

Assessment:
1. Individual students to practice the filling of sample tool of records under the
supervision of the trainer.

Discussion:
1. Based on the students respond the trainer should analyze the records filled and
discuss with the students.

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Unit 4: SAVINGS

OBJECTIVES
This unit is designed to achieve the following objectives;
a. Develop the knowledge of students on the culture of savings and the importance of
saving to an entrepreneur
b. Enhance the understanding of the students on method of savings and investment
c. Improve their knowledge on the relationship between personal budget and savings

LEARNING OUTCOMES
By the end of the unit the students should be able to;
a. Explain the meaning of savings and its importance in a business
b. Demonstrate knowledge on how to start saving

Understanding Savings
 Savings is the amount kept aside (Savings) to meet the financial need of the business.
 It represents individual unspent earnings.
 It is the amount that remains after meeting the business and other personal expenses
over a given period of time.
 Savings or funds set aside by entrepreneurs which can act as shock absorbers during
unforeseen circumstances

Activities:

1. The resource person should lead trainees to discussions on savings and saving
culture.

Assessment:
1. The students should be able to explain the concept of savings based on their own
understanding.

Discussion:
1. The resource person should analyze responses based on the assessment above and
lead discussion with students.

Method of Savings
Saving is an income not spent. it refers to an income not used for immediate consumption.
Saving does not include interest and can be kept for a long period of time.
Methods of savings include;
 Deposits
 Deductions from salary, wages or income
 Informal saving; saving societies, village banks
 Traditional forms of saving; buying assets (e- g houses, animals)
 Savings in piggy bank
 Formal savings; bank saving account

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Activities:

1. The trainer should show the trainees sample of deposits slips, piggy bank and
discuss with entrepreneurs how they have been saving their monies.
2. The trainer to lead discussion on different methods of saving with emphasizes on
village saving strategies.

Assessment:
1. The students should be able to list and explain methods of savings to demonstrate
their understanding of the concept.

Discussion:
1. The resource person should analyze the answers given by the students and recap on
the module discussed.

Unit 3: Advantages of Savings

 Saving helps protect entrepreneur investment during financial emergency e g COVID-
19
 It helps you pay for large purchases at a particular time
 Savings help prevents financial stress
 It helps entrepreneurs to qualify for certain kind of loans
 It gives entrepreneurs financial freedom
Activities:

1. The trainer is to lead discussion with trainees on the various methods

of saving and their advantages.

Assessment:
1. Invite students to explain their understanding of the concepts discussed above.
2. Use group session(s) for the students to demonstrate understanding of the benefits
and barriers to entrepreneurship

Discussion:
1. Having analyze the answers given by the students from the assessment questions the
resource person should then discuss the results with the students.

Investments.
 Investment is an asset or an item acquired by an entrepreneur with the aim of
generating income or value appreciation.
 It is an act of resource allocation (money) with the goal of generating additional
income, profit or gains in a business.
 Types of business investment include real estate, stocks, purchase of gold, fixed
deposits, bond.

Activities:
1. The trainer initiate discusses with trainees on the concept of investment and
various types of investment.
2. Trainees in groups discuss the importance 16of investment in a business
Assessment:
1. The resource person should ask the students to discuss what they understand by
investment
2. Students to list type of investment and their importance to an entrepreneur

Discussion:
1. Resource person to review the answers given by the students to the assessment
question above and conclude the lesson.

Relationship between Personal Budget and Savings

Personal budget is an intended or planned expenditure by an entrepreneur to cover personal
expenses. Personal budget guides the entrepreneur in spending for his personal while savings
is money generated from business and is unspent. Personal budget are funded by funds
generated from savings made from investment.

 An entrepreneur must develop a budget to ensure spending money efficiently and not
spending more than it can afford
 A personal budget simply tracks money in and out, and a budget can be used to help
an entrepreneur spend less and save more.
 It is important for entrepreneurs to differentiate between personal budget and
savings to avoid spending business money.

Activities:

1. Trainees should be guided by the trainer to discuss the relationship between

personal budget and Savings.

Assessment:
1. Students in group sessions discussed the importance of personal budget and
implication of over spending budgeted funds on business.

Discussion:
1. The resource person should analyze and discuss the responses from the students and
conclude the module.

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