MBARARA UNIVERSITY OF SCIENCE
AND TECHNOLOGY
FACULTY OF COMPUTING AND INFORMATICS
DEPARTMENT OF INFORMATION TECHNOLOGY
ENTREPRENEURSHIP
(ASSIGNMENT)
Group Members
1. ODENG EMMANUEL
2019/BIT/139
2. SSEKANJAKO DEUS
2019/BIT/111/PS
3. ASASIIRA ANNABEL
2018/BIT/027/PS
4. NANYANGE JAWHALLAH
2019/BIT/086/PS
5. TUMUHIMBISE SUNNY
2019/BIT/138/PS
6. AMANYA PATIENCE
2019/BIT/027.
7. AKANTORANA MIRIAM
2019/BIT/026/PS
8. RUSHESHANA MOSES
2019/BIT/108/PS
RISK IN MY LIFE
CHIEF RISK OFFICEREE
Expound on the risk management strategies that an entrepreneur can employ in the business.
1. Measuring the risk
In order to mitigate potential risks, an entrepreneur needs to measure a risk before he takes
one. Most entrepreneurs specialize in risk weighting. They don’t lose much if the strategy
fails, but if it succeeds, they benefit a great deal by taking the risk. Therefore, they make their
company more viable and profitable by taking simple methods in their plan of action.
Effective entrepreneurs adhere to the core concepts of risk management.
2. Seeking a new opportunity
Entrepreneurs also have the opportunity to recognise flaws in the market and find solutions to
the issue. Pursuing a new opportunity is a potential challenge, but entrepreneurs have the
opportunity to learn a lot from it – if their solution is feasible. First mover advantage is also
what pushes them to further innovate. Although savvy entrepreneurs understand their
limitations, they don’t allow their vision to be limited by a lack of resources.
Entrepreneurs see a consumer need and do all they can to make a business option possible,
even though at the moment they don’t have the resources available. For them, the threat is not
finding a new opportunity and their businesses remaining stagnant.
3. Insurance is a must
Insurance shields the entrepreneurs from lost liabilities, accidents and illnesses and passes the
risks to insurance companies. By insuring all sorts of raw materials and processes, in the
event of a company or scheme failure, they have a chance to lose even less. Insurance may
not reduce the risk of the company, but you can use it as a financial instrument to protect
against risk-related losses.
It guarantees that you will have some financial compensation in the event of a failure. For
example an accident can occur in an organization and compensation can be made by an
insurance company.
Monitoring the financial risk
The key to risk management is to reduce financial risk by monitoring your receivable
accounts to mitigate outstanding balances and to recognize bad credit risks early in your
business. It is possible to introduce credit and payment requirements to further mitigate
financial risks, defining which credit ratings and payment histories are appropriate. Aim to
minimize outstanding loans and funding needs. Monitoring the growth rate and enabling the
business to expand to a sustainable degree is very critical. Ensuring financial stability is the
greatest ease in risk management.
5. Learn how to anticipate and predict risks
Let the loss not come as an certainty but skilled an experienced entrepreneur should be able
to predict the loss and the risks and be in position to dodge it basing on the knowledge and
the experience he/she has
NO3.0
The following are the ways we can carry out the analysis of the business
performance.
As the business grows, it becomes more and more important to review the company’s
performance to date and subsequently plan on how to succeed ahead. Here is the best way to
analyze the business activities and set up for success.
Preparing for the future by revisiting the past performance
Both new and established companies spend a lot of time and money on analyzing daily
actions and focusing on reducing daily costs to make higher profits. However, what most
businesses overlook is a long-term or sustainable analysis.
Strategic analysis of a business is key to survival. As companies grow, its employee
base grows, its departments increase, its operations grow, and its cost and maintenance
requirements expand.
A detailed review of the company’s operations on a quarterly, bi-annual, or annual basis
becomes increasingly important and rewarding to assess whether:
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the business is performing well
the company is getting the most out of the business or making the most of market
opportunities
the business plan is outdated or needs updating
the business is moving in alignment with organizational goals
the business is ready to move to the next level
Therefore, only an accurate method of analysis will help you reap the benefits that are
associated with reviewing the performance of a business. Here are a few ways to analyze
your business activities:
1. ASSESS YOUR CORE ACTIVITIES
Most business struggle on where to start the business analysis. A great starting point is to
assess the company’s core offerings and activities associated.
It is important to include a detailed research on advancements in the field, any improvements
that have been or can be incorporated and where your core activities stand on a competitive
level.
2. ASSESS YOUR BUSINESS EFFICIENCY
As the company moves from getting the business going to concentrating on growing and
developing it. It becomes important to align methods and strategies with the growth vision.
Short-term strategies can cost time and money in the long run. That is why it becomes
important to move from short-term strategies to long-term sustainability strategies.
3. REVIEW YOUR FINANCIAL POSITION
When it comes to a company’s success, developing and implementing a sound financial and
management system is vital. Updating your business plan includes updating your financial
strategies, which can only be done by understanding the current financial position of the
company.
When reviewing your finances, consider evaluating the following aspects:
Cash flow - this is the balance of money flowing in and out of your business. Make sure that
your forecast is regularly reviewed and updated.
Working capital – this refers to the cash-in-hand for conducting day-to-day business
activities. As your business grows, ensure that you have adequate working capital.
Cost base - keep your costs under constant review. Make sure that your costs are covered in
your sale price – but don’t overcharge and under-deliver.
Borrowing - what is the position of any lines of credit or loans? Are there more appropriate or
cheaper forms of finance you could use?
Growth - do you have plans in place to adapt your financing to accommodate your business’
changing needs and growth?
4. CONDUCT A COMPETITOR ANALYSIS
Gathering more information on the company’s competitors may cost time, money and effort,
but this becomes a key aspect when it comes to staying ahead in the game.
Conduct a SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis for all the
major competitors. Always remember: You never make a strategy based on the weaknesses
of your competitors.
5. CONDUCT A CUSTOMER AND MARKET ANALYSIS
When you’re reviewing your business’ performance, you’ll need to assess your customer
base and market positioning as a key part of the process. You should update your marketing
plan at least as often as your business plan. For this, it is always best to gather current market
data, forecasted data and then conducting a SWOT (Strengths, Weaknesses, Opportunities,
and Threats) Analysis and an STP (Segmenting, Targeting and Positioning) Analysis for your
own business.
Once you have this information, ask yourself these 3 questions:
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Where is the business now?
Where is it going?
How is it going to get there?
The premise of growth with sustained profitability, improving operating efficiency,
conversion of profits into cash and then using this cash for future growth, remains the same
for all businesses. However, the implementation of the various strategies and analysis of the
results are what differentiate the outcomes of all businesses.
r instance, if the unemployment rates are low, a business may assume the
economy is in a good condition and consider opening another branch.
Other economic factors to consider in your review are: