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ECONOMIC FACTORS INFLUENCING THE ENTREPRENEURIAL ATTITUDES AND OPPORTUNITIES

 1. Economic policy This defines the market systems established by the government, market structure and the extent to which all the firms compete under fair games rules. An open market system that leaves forces of demand and supply to control the distribution of resources allows entrepreneurship to flourish since it has more rewards for innovators. This allows opportunity identification arising from free entry into national and regional markets. 2. Administrative issues These include the procedural requirements for registration, licensing, taxes and financial reporting which may either facilitate or hinder entrepreneurial activities. Excessive number of rules and procedures discourage entrepreneurs from starting businesses, for instance, most small businesses consider paperwork as time consuming or cumbersome. 3. Infrastructure The availability of infrastructure and utilities such as good roads, power, communication facilities and lack of corruption and bureaucratic delays in obtai...
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BENEFITS/IMPORTANCE OF INSURANCE

 1. It allows individuals and business people to save money that would be used to cover unexpected emergencies. 2. An entrepreneur is assured of business continuity as a result of the compensation after the loss has occurred. This gives the entrepreneur confidence, stable earnings, growing and expansion. 3. Customers increase their trust in the entrepreneur’s business as a result of the assurance in his or her business continuity. 4. The property of the business people are guarded against all risks like fire, theft, e.t.c. This gives confidence to entrepreneurs to undertake business operations. 5. Insurance companies act as trustees and referees to their clients who would like to get loans from commercial banks. 6. Insurance companies also give loans to business men who operate on large scale and have collateral security. The excess premium which is not spent on daily expenses of the company and investments can be lent out to earn interest for the insurance company. 7. Insurance po...
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IDENTIFICATION PROCESS FOR A GOOD BUSINESS OPPORTUNITY

 Going into business is deceptively simple but staying in business and making a success of it is not. Success or failure are not the chance results of a toss of a coin. Being in the right place at the right time is partly luck but more so to do with good planning. Therefore setting up a business for the first time or expanding an existing business can be the road to riches and personal fulfillment. It can also be the road to financial ruin and personal misery. Successful businesses are a result of careful research, planning, enthusiasm, self confidence and commitment. If an entrepreneur identifies a business opportunity, it is ideal to carry out a feasibility study in order to ascertain whether the opportunity is viable/profitable. It also acts as a basis upon which financial assistance can be sought from the financial system. It can be broken into 3 categories, i.e market feasibility study, technical feasibility study and financial feasibility study. 1. Market feasibility study (i...
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CHALLENGES OF SELF EMPLOYMENT

 1. Long and irregular working hours lead to fatigue and exhaustion. 2. There is uncertainty of income. The person is not sure of his income as it varies with the business performance. 3. It leads to low life style due to too much work. 4. A self-employed person bears all the risks of losses. 5. There is uncertainty of the future. This is because income upon which planning can be done is uncertain. 6. A self-employed person may not have definite tasks and responsibilities i.e incase he/she is alone in business he/she does all the business activities e.g purchasing, selling, accounting e.t.c.
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WAYS OF OVERCOMING THE CHALLENGES FACED BY SMALL AND MEDIUM ENTERPRISES IN UGANDA

 1. Locating the business in areas where they can easily access support services, markets as well as raw materials. 2. Undertaking research and development to come up with new products that meet the customers’ needs and beats off competition. 3. Ensuring good business management. This is done through creating a work environment that encourages productivity, hiring competitive people and training them, being able to think strategically, e.t.c. 4. Establishing good relationship with customers and ensuring that they are always satisfied with the products and cannot be taken away by competitors. 5. Conducting thorough market surveys before starting businesses to ensure that businesses went into are the ones whose output (goods and services) will be competitive, have a fair sized market and profitable prices. 6. Avoid over expansion. Expansion should only be done after careful review, research and analysis as well as identifying what one needs to add in order for one’s business to grow....
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CHALLENGES FACED BY SMALL AND MEDIUM ENTERPRISES

 1. Unsuitable location of the business. Even if a business is properly managed, a bad location leads to its failure. For instance, locating the business far from the market (customers) or source of raw materials. 2. Limited market for the business products. This normally results from competition, changing customer tastes, uncompetitive prices, e.t.c. 3. Poor management of the business. Businesses which are poorly managed, for instance when they are inefficient in the use of resources, do not keep proper records, use wrong costing and pricing methods, inevitably make big loses and in the end fail and close up. 4. Poor handling of customers. No business can afford to survive with dissatisfied customers. A business whose owner or employees are rude to customers and do not bother to attend to their individual needs cannot take long before it collapses. 5. Limited market research. This leads to failure to clearly define and understand one’s market, one’s customers and one’s customer’s ...
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WAYS OF OVERCOMING NEGOTIATION CHALLENGES

 Below are some of the strategies for handling negotiation challenges. 1. If the work load is increasing, one can look for tasks to eliminate, review the work he or she would hand him or herself, review the way to combine similar jobs or consider the use of temporary or part time help. 2. If the work load is declining, one can work on improving efficiency, do house keeping that has been postponed or start projects that could generate new work. 3. If there are problems of turnover, help employees identify with their group, try to develop stable work groups or review status implications in jobs. 4. If there is a group of employees who are controlling production, remove misunderstandings if there are any, find out if it is to the group’s advantage to slow down or find out and deal with the real problem. 5. If employees are dissatisfied with their pay, review bench mark jobs, i.e compare with similar jobs in other enterprises, compare with comparable jobs in the area, adjust assignment...
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