2.0 ENTREPRENUERSHIP
Objectives
By the end of the session farmers should be able to: Exhibit entrepreneurial competencies needed to run a successful commercial enterprise. |
Introduction.
An entrepreneur is a person who continuously identifies opportunities in the market for products or services and then develops new products and services to satisfy the identified needs. As an entrepreneur one needs to visualize a successful goat business and then commit resources to achieving the set goals.
Most producers have the “Imbuzi ziyazibonela (The goats should look after themselves)mentality.They do not realize the value of goats, their total worth and how much more they could contribute to their livelihoods if well managed as a business enterprise.
For the smallholder goat producers to run successful commercial goat enterprises they need:
- To understand that starting a business has some risks;
- Access adequate knowledge and information;
- To identify opportunities;
- To commit time and resources; and
- To be ambitious and set goals that are achievable.
Characteristics of entrepreneurship
The entrepreneurial abilities that one needs to develop in order to be a successful commercial goat producer are identifying business opportunities, calculated risk taking, goal setting, information seeking, commitment to a business plan, persuasion and networking, and systematic planning and monitoring.
1. Identifying a business opportunity
The key is the ability to see opportunities in business or personal life where others do not. An opportunity is therefore a chance, an opening or prospect, which avails itself.
Thus an entrepreneur is anyone who identifies problems, resources and unmet needs in society and develops these into business ideas. Thus generating business ideas is the first step in business creation. Examples of entrepreneurs are:
- A farmer who identifies the need for supplementary feeding and goes on to store the feed and sell it to other farmers during the dry season.
- A group of farmers who realize that the shortage of beef is an opportunity for them to sell more slaughter goats. They organize themselves, hire a truck and transport 50 goats per month for sale in Bulawayo.
- A trader who buys goats from the small-holder farmers and sells them to abattoirs in Bulawayo and Harare.
What goat business opportunities are available in your area? Use the tool below to identify your business opportunities in the goat sub-sector.
Problems | Business idea |
e.g. Shortage of meat | Buy and sell goats to abattoirs |
Resources | Business idea |
e.g. Goats | Improve condition and sell to retail shops in Bulawayo |
Unmet needs | Business idea |
2. Calculated risk taking
Once an opportunity is identified, matched with one’s capabilities, it is then necessary to take a calculated risk. When one is taking a risk, it is a matter of striking a balance between success and failure. Risk can be minimized by seeking information and making informed decisions.
Most goat producers are scared of taking risks because of the following reasons: They might lose their savings;
- They are not sure whether the goat enterprise will give them a return; and
- They do not have information on available opportunities.
A good illustration of risk taking is that of goat traders. They undertake tasks that most smallholder goat producers do not want to undertake on their own. The traders incur costs that include buying, transportation, pre-financing, personnel costs (for buyers/ herders) and slaughtering fees.
Exercise: What calculated business risk have you ever taken in your life? Write down the event below. What happened and how did it happen?
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3. Objective setting
An objective is defined as a specific and measurable achievement to be attained within a specific period of time and cost constraint. A well-defined objective statement is the foundation for goal achievement. Objectives are set to give direction, motivate one to work hard, assist one to be well organized and as monitoring tools.
An objective states the following:
- What is to be achieved?
- By who?
- By when?
- Where?
Objectives should be specific, measurable, achievable, realistic and time-bound (SMART)
Example of an objective that is not SMART | Example of a SMART objective |
“I want to have more money”. | “I will sell 5 goats directly to TITI restaurant by September, leading to an increase in my income by 100 %. |
Exercise:
Write a SMART objective for your goat enterprise:
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Taking your objective as it is, if achieved what would it bring to you?
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4. Information seeking
An entrepreneur should access new technologies and other factors that affect their goat business.
The information gathered will:
- Shape the business plan;
- Help reduce risk; and
- Enable the entrepreneur to make better/ informed decisions.
There are a number of information gathering methods that can be used. These are: Desk research;
- Interviews;
- Questionnaire; and
- Observation.
The sources of information include business magazines, books, government records, electronic media (radio and television), Business Development Service (BDS) providers such as One-Up and Women-In-Business, Internet services, competitions (fairs and shows), buyers, suppliers, other farmers and newspapers.
Exercise:
What are the prices of goats at the local sale points?
What are the prices of goats in the nearest urban centre?
What business decision would you make based on this information?
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The sources of information include Farmer Magazines, books, relevant government departments, electronic media (radio and television), competitions (fairs and shows), buyers, suppliers, other farmers and newspapers.
5. Commitment to the business plan
Once one has a business plan in place there is need: To stay focused;
- To be committed to the tasks ahead;
- To adhere to a set work plan;
- Motivate and provide leadership to the people you are working with on the goat business.
Exercise: Write your plans for your goat business for the coming 12 months.
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6. Persuasion skills and networking
Buyers or abattoirs do not just buy your goats. It is your responsibility (individually or as a producers’ association) to remind them about the availability of your goats or goat products. This can be done through face-to- face meeting with your clients, advertising and constant communication with suppliers and buyers.
Through persuasion and networking you build strong business relationships. Strong business relationships are built on trust, interdependence, fair decision making process, balanced power structure, shared goals, equitable returns, problem solving process, and commitment.
Exercise: Give an example of a situation where you have managed to persuade buyers to purchase your products?
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List the different stakeholders you are interacting with and are relevant to your business.
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7. Persistence
The goat business is full of challenges. You must not give up when the going gets tough. An obstacle can be turned into an opportunity. What is needed is the ability to persevere and quickly adapt to changes taking place. One also needs to be flexible.
When you lost some of your kids/ goats, what did you do?
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8. Independence and self confidence
When one takes up goat production as a business he/ she needs to:
- Be their own boss;
- Have a desire to transform their dreams into reality;
- Have self belief;
- Be free to make decisions; and
- Strive to achieve financial independence.
9. Systematic planning and monitoring
For the effective planning and monitoring of the goat business write up a business plan that answers the following questions:
- Step I: Where am I now? (current situation)
- Step II: Where am I going? (future/ desired situation/ Mission/ objectives )
- Step III: What is between here and where I want to go? (The business environment)
- Step IV: What is the best way for me to get there? (strategic options)
- When the planned actions will be done and how do I know that I am making progress? (Monitoring Plan and milestones)