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ENT 202 – Introduction to Entrepreneurial Ventures Is a Semester Course Work of 2 Credit Units

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ENT 202 – Introduction to Entrepreneurial Ventures Is a Semester Course Work of 2 Credit Units COURSE GUIDE ENT 202 INTRODUCTION TO ENTREPRENEURIAL VENTURES Course Team Dr. Cletus Akenbor – (Course Writer) Department of Business Administration Faculty of Management Sciences Federal University, Otuoke Prof. Bello Sabo - (Course Editor) Department of Business Administration Faculty of Administration Ahmadu Bello University, Zaria Dr. Lawal Kamaldeen A.A (H.O.D) Department of Entrepreneurial Studies Faculty of Management Sciences National Open University of Nigeria Dr. Timothy Ishola (Dean) Faculty of Management Sciences National Open University of Nigeria NATIONAL OPEN UNIVERSITY OF NIGERIA 1 National Open University of Nigeria Headquarters University Village Plot 91 Cadastral Zone Nnamdi Azikiwe Expressway Jabi, Abuja. Lagos Office 14/16 Ahmadu Bello Way Victoria Island, Lagos e-mail: [email protected] URL: www.noun.edu.ng Published by: National Open University of Nigeria ISBN: Printed: 2017 All Rights Reserved 2 COURSE GUIDE TABLE OF CONTENT Introduction Course Content Course Aims Objectives Course Materials Study Units The Modules Assignment Assessment Summary 3 INTRODUCTION ENT 202 – Introduction to Entrepreneurial Ventures is a semester course work of 2 credit units. It is available to all students taking the B.Sc Entrepreneurship programme in the Department of Entrepreneurial Studies, Faculty of Management Sciences. The course consists of 13 units which cover the concept and y of organization success. The course guide tells you what ENT 202 is all about, the materials you will be using and how to make use of them. Other information includes the self assessment and tutor-marked questions. COURSE CONTENT The course content consists of entrepreneurial ventures COURSE AIMS The aim of this course is to expose: - understand the character of ventures - explain the long-term character of venture - explain the short – term character of venture 4.0. OBJECTIVES After going through this course, you should be able to: - define and explain the terms business and social venture - understand the background of social venture - explain and understand the scope of business/social venture 4 COURSE MATERIALS Course Guide Study Units Text Books Assignment Guide STUDY UNITS UNIT 1: Scope of Business Social Ventures UNIT 2: Character of Ventures UNIT 3: Forms of Business Ownership UNIT 4: Organization and Management UNIT 5: The Marketing Function UNIT 6: Production Function UNIT 7: Finance and Accounting Function UNIT 8: Human Resource Function UNIT 9: Government and Business UNIT 10: The Social Responsibility of Business UNIT 11: International Business 5 UNIT 12: Concept of Social Goods UNIT 13: The Creation of Social Networks UNIT 14: Non-governmental Organizations and Practice in Evolving Non-profit Organization Each study unit will take at least two hours. You are expected to study each unit and answer the tutor-marked assignments. THE MODULES The course is divided into four modules. ASSIGNMENT Each unit consists of at least one assignment which you are expected to do. ASSIGNMENT TUTOR-MARKED ASSIGNMENT You are expected to apply what you have learnt in the contents of the study unit to do the assignments and send them to your tutor for grading. FINAL WRITTEN EXAMINATION This will be done at the end of the course. SUMMARY This course ENT 202 (Introduction to entrepreneurial ventures) exposes you to the forms, functions and concepts of various business and joint venture organizations. 6 MAIN CONTENT MODULE 1 UNIT 1: Scope of Business Social Ventures UNIT 2: Character of Ventures UNIT 3: Forms of Business Ownership UNIT 4: Organization and Management MODULE 2 UNIT 5: The Marketing Function UNIT 6: Production Function UNIT 7: Finance and Accounting Function UNIT 8: Human Resource Function MODULE 3 UNIT 9: Government and Business UNIT 10: The Social Responsibility of Business UNIT 11: International Business MODULE 4 UNIT 12: Concept of Social Goods UNIT 13: The Creation of Social Networks UNIT 14: Non-governmental Organizations and Practice in Evolving Non-profit Organization 7 MODULE 1 UNIT 1 SCOPE OF BUSINESS/ SOCIAL VENTURE CONTENTS 1.0 Introduction 2.0 Objectives 3.0 Main Contents 3.1 Background of Social Venture 3.2 Scope of Business/Social Venture 3.2.1 Industrial Sector 3.2.2 Commercial Sector 3.2.3 Service Sector 4.0 Conclusion 5.0 Summary 6.0 Tutor-Marked Assignment 7.0 References/Further Reading 1.0 INTRODUCTION A business is a set of activities, which leads to the manufacturing of goods or provision of services to satisfy the consumers at a profit. In other words, any activity conducted by an individual or group of individuals which involves the accumulation of resources ( materials, capital, information, labour, equipment and tools) for the provision of goods and services to satisfy the needs felt by a consumer for a profit , is regarded as a business. On the other hand, a venture is an undertaking involving uncertainty as to the outcome, especially a risky or dangerous one. Therefore a social venture is an undertaking by a firm or organization established by a social entrepreneur that seeks to provide systemic solutions to achieve a sustainable, social objective. 8 2.0 OBJECTIVES At the end of this unit, you should be able to: - define and explain the terms business and social venture - understand the background of social venture - explain and understand the scope of business/social venture 3.0 MAIN CONTENTS 3.1 Background of Social Venture Social ventures may be structured in many forms, including sole proprietors, for-profit and not- for-profit firms, non-governmental organizations, youth groups, community organizations, and more. Typically, government organizations are not considered to be social ventures, yet even government organizations can adopt entrepreneurial practices, possibly partnering with independent organizations, to explore innovative methods for providing social services. Elkington and Hartigan (2007) define three models for social ventures: leveraged nonprofit, hybrid nonprofit and social business. In the leveraged nonprofit venture the entrepreneur uses external partners for financial support in providing a public good. On the other hand, the hybrid nonprofit venture recovers a portion of its costs through sales of its goods or services. The social business venture generates profits, but rather than return those profits to shareholders, like business ventures, it reinvests those profits to further the social venture and the resulting social benefits. The distinguishing characteristic of the social venture versus the business venture is the primacy of their objective to solve social problems and provide social benefits. The social venture may generate profits, but that is not its focus. Rather profits are a possible means to achieve sustainability in providing a social benefit. The problems addressed by social ventures cover the range of social issues, including poverty, inequality, education, the environment, and economic development. The context in which social ventures operate is very complex as they are trying to bring about solutions where markets or governments may have failed or actually impede solutions. Further, these ventures are trying to provide solutions where money is usually in short supply—often these ventures have little assurance that their services can be paid for by those they seek to serve (Martin and Osberg, 2007). These conditions necessitate that the social entrepreneur be creative, adaptable, and determined in finding new solutions to problems. 9 3.2 Scope of Business/ Social Ventures The scope of business or social venture covers all the activities related to production and distribution of goods and services from the place of production to the final consumers with an aim to earn profit. There are two types of business activities. These business activities are also known as business components, which are actually defined as the scope of business. The scope of a business entails the following: 3.2.1 Industrial Sector The word ―Industry‖ refers to that part of business activities which is apprehensive with the extraction, production or fabrication of products. The products which are raised, produced or processed by an industry may either be used by the ultimate consumer or by another concern for further production. If the goods produced by an industry are consumed by the final customers, these are named as ‗consumer‘s goods‘ e.g. clothes. If the goods are used for further production of wealth they are called producer‘s or capital goods. In case the goods produced by an industry are further processed into finished products by another concern they are known as intermediate goods. i.e Plastic. There are different types of industry. These are: Extractive Industries Extractive industries are those industries which extract, raise or fabricate raw materials from above or beneath surface of the earth. i.e. Mining, fisheries forestry, agriculture. Genetic Industries Those industries which are engaged in reproducing and multiplying certain species of animals and plants and selling them in the market for profit are named as genetic industries. i.e. Cattle breeding farms, poultry farms, plant nurseries. Constructive Industries Constructive industries as the name signifies are engaged in the construction of building, canals, brides, dams, roads etc. Manufacturing Industries 10 Manufacturing industries are those which are concerned of converting raw material or semi finished products into finished products. E.g. Shoes Company, Textiles Mills. 3.2.2 Commercial Sector The second element that comes in the scope of business is commerce. It is a very important component of business and is concerned with the buying and selling of goods. It includes all the activities which are connected to the transfer of goods from the place of production to the ultimate consumers. The whole range of commercial activities is classified as trade, which is the process of buying and selling of goods . It is the exchange of goods and services among buyers and sellers in which both parties received a benefit. Trade is classified into two types. Internal Trade The process of buying and selling of goods within the edge of a country is called internal trade.
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