Workforce Development Authority
Akazi Kanoze
Youth Livelihoods Project
TVET Complementary
Modules
RTQF LEVEL 3
Entrepreneurship Module
AKAZI KANOZE, Phone: +250 (0) 252 580 796 / 805 / 806; Fax: +250 (0) 252 580 797; P.O. Box 2498 Kigali/Rwanda
Entrepreneurship Module
© Education Development Center, Inc., [2015]. All rights reserved. This
work may not be reproduced, sold or otherwise disseminated without the
express written consent of EDC. Please contact the Office of Legal
Affairs.
Entrepreneurship Module
Trainer’s Manual
Entrepreneurship Module
“Akabando k’iminsi gacibwa kare kakabikwa kure”: Better save now
what you will need in the future
Entrepreneurship Module Objectives
By the end of the module participants will:
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Analyze financial needs effectively
Describe ways to decrease expenses through reuse, recycling, reduction and repair
Set saving goals and work towards achieving them
Do basic record-keeping
Develop personal budgets
Be familiar with financial institutions in their region
Describe the risks associated with debt
Suggest strategies to keep out of debt
Make financial plans for the future
Describe the basic business cycle: buying, adding value, selling for profit.
Allocate income between the business, personal expenses and savings.
Plan and cope with unforeseen expenses.
Make informed decisions while selling on credit.
Explain the importance of maintaining a positive cash flow.
Explain the importance of keeping records and planning.
Describe the similarities and differences between income generating activities,
business and cooperatives
Exhibit characteristics and traits of an entrepreneur
Evaluate own characteristics, attitudes and skills related to running a business
Assess business ideas
Explain the relationship between the basic elements of marketing (5 P’s: product,
place, promotion, price, people)
Develop an annual sales plan
Calculate start-up and working costs
Determine if a business is making a profit or loss
Evaluate different sources of capital to start an enterprise
Describe the different types of basic records (receipts, cashbook, stock list…)
Properly record transactions in a sample cash book
Calculate depreciation
Prepare a simple profit and loss statement
Prepare a balance sheet
Write a business plan
Akazi Kanoze/WDA Complementary Modules
Page 3
Module 4: Entrepreneurship
Learning outcome
Sessions
Learning unit 1:
Identify and describe
entrepreneurial
characteristics
Session 1: Qualities and
characteristics of
entrepreneurs
Duration
300 minutes
Learning outcome
Activities
1.1 Identify entrepreneurial
characteristics
Activity 1: Introducing
entrepreneurship module
L.O 1.2 Describe
entrepreneurial characteristics
Activity 2: Characteristics of an
Entrepreneur
Activity 3: Are You Ready to be an
Entrepreneur?
Learning unit 2:
Assess business
environment
Session 2: Finding and
Establishing a Good
Business Idea
600 minutes
L.O 2.1 Apply methods,
principles and techniques in
identification of problems
related to economic
environment
Activity 1: Find a Business Idea
L.O 2.2 Recognize business
opportunities
Activity 3: Visit to Businesses and
Cooperatives in the Community
L.O 2.3 Apply techniques to
generate a business idea
Activity 4: Market Analysis: Your
Customers and the Environment in
Which You Work
Activity 2: Assess one’s business idea Is Your Business Idea a Business
Opportunity?
Entrepreneurship Module
Trainer’s Manual
L.O 2.4 Use tools and
techniques to identify
business requirements.
Activity 5: Discuss the 5 P’s: People,
Products and Services, Promotion,
Place/Distribution and Price
Activity 6: Set price and make annual
Sales Projection
Activity 7: Discuss Start-Up & Working
Costs and Estimating Profit or Loss
Activity 8: Discuss sources of Financing
/ Capital
Learning unit 3:
Produce a business
idea proposal
Session 3: Produce a
business idea
600 minutes
L.O 3.1 Identify business idea
proposal components
Activity 1: assess and discuss creativity
potential
L.O 3.2 Develop a business
idea proposal
Activity 2: discuss innovation potential
L.O 3.3 Present business
proposal
Activity 3: generate good business idea
Activity 4: Identify and assess business
opportunities
Activity 5: Develop and present a
business idea proposal
Akazi Kanoze/WDA Complementary Modules
Page 5
Entrepreneurship Module
Learning unit 4: Run
a business
Trainer’s Manual
Session 4: RecordKeeping and Budgeting
400 minutes
L.O 4.1 Plan business
operations
Activity 1: Discuss reasons of keeping
records
Activity 2: Perform basic record keeping
Activity 3: Budgeting
L.O 4.2 Classify business
operations
Activity 4: Discuss the use of basic
record forms
Activity 5: Fill up a cash book
L.O 4.3 Record day to day
business operations
Activity 6: Discuss profit and loss
statement
Activity 7: Discuss elements and use of
the balance sheet
Activity 8: Make a business plan
Session 5: Need for
Finance
200 minutes
Activity 1: describe needs for money
Activity 2: plan for ways to access
money
L.O 4.4 Perform filing of
documents related to business
Akazi Kanoze/WDA Complementary Modules
Page 6
Activity 3: describe ways of decreasing
spending
Entrepreneurship Module
Trainer’s Manual
Session 6: Managing
Debt
100 minutes
Activity 1: introduce the concept of
Debt
Activity 2: Manage Debt
Activity 3: Give Advice to Others on
financial fitness
Session 7: Exploring
Savings & Loans in
Rwanda
300 minutes
Activity 1: Introduce the concept of
Saving Savings Goals
Activity 2: Set Saving Goals
Activity 3: Identify Where to Save
Activity 4: Explore Financial Structures
and Institutions in Rwanda
Activity 5: Use ATMs
Session 8: Basic Business
Cycle & Unexpected
Costs
250 minutes
Activity 1: Practice Basic Business
Activities Cycle & Unexpected Costs
through a game (Part one).
Session 9: Credit Risks
and Running a Profitable
Business, Record
Keeping & Business
Planning
250 minutes
Activity 1: Deal with Credit Risks,
Record-Keeping & Business Planning
through a Game (Part two)
Akazi Kanoze/WDA Complementary Modules
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Documentation Requirements:
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Handout 4.0: Self-Assessment: Entrepreneurship Module
4.1: What I Need Money For
4.2: Different Stages of Life
4.3: Ways to Get Money
4.5: Ways We Waste Money
4.7: My Plan to Cut Cost
4.8: Saving
4.9: My Savings Goals
4.10: Where I Can Save
4.11: Things I Could Owe Money For
4.12: Avoiding Debt
4.13: Getting Out of Debt Strategies
4.14: Basic Record Keeping
4.15: Basic Budgeting
4.16: My Personal Budget
4.18: Differences Between Types of Institutions
4.19: My Personal Financial Fitness Plan
4.21: Advice to Others
4.22: Entrepreneur Profile: Ms. Tycoon
4.23: Entrepreneur Profile: Mr. Saver
4.24: Entrepreneur Profile: Mr. Greedy
4.25: Entrepreneur Profile: Ms. Wise
4.29: Lessons Learned / Session 1
4.30: Lessons Learned / Session 2
4.31: Record Keeping Sheet
4.32: Our Business Plan
4.37: Challenges
4.39: Before You Start – A Basic Checklist
4.42: My Interests, Skills and Experience
4.43: Business / Cooperative Observations
4.45: Assessing My Business Idea
4.47: Marketing Plan
4.48: Developing a Sales Plan
4.51: Start-Up and Working Costs for My Business/Cooperative
4.52: Finding Capital for my Business
4.53: The Cost of a Loan
4.56: Cash Book Exercise
4.58: Profit and Loss Statement for Bread Baking Cooperative
4.60: Business Plan
Entrepreneurship Module
Trainer’s Manual
Handout 1.0: Self-Assessment: Entrepreneurship Module
There are no right or wrong ways to answer this survey. It is for your own use during this course. The trainer will read a skill that is
listed in the left column. Think about yourself: do you think you can do this? How well? Read the statements across the top. Put a check
in column that best represents your situation. At the end of this module, we’ll take this survey again.
My experience
Knowledge, skills and abilities
I don’t have any
experience
doing this.
I know a little
about this.
I have some
experience
doing this.
I have a lot of
experience
with this.
I am
confident in
my ability to
do this.
Analyze financial needs effectively
Describe ways to decrease expenses through reuse,
recycling, reduction and repair
Set saving goals and work towards achieving them
Do basic record-keeping
Develop personal budgets
Be familiar with financial institutions in their region
Describe the risks associated with debt
Suggest strategies to keep out of debt
Make financial plans for the future
Describe theour business activities schedule:
buying, adding value, selling for profit.
Akazi Kanoze/WDA Complementary Modules
Page 9
Entrepreneurship Module
My experience
Knowledge, skills and abilities
Trainer’s Manual
I don’t have any
experience
doing this.
I know a little
about this.
I have some
experience
doing this.
I have a lot of
experience
with this.
I am
confident in
my ability to
do this.
Allocate income between the business, personal
expenses and savings
Plan and cope with unforeseen expenses
Make informed decisions while selling on credit
Explain the importance of maintaining a positive
cash flow
Explain the importance of keeping records and
planning
Describe the similarities and differences between
income generating activities, business and
cooperatives
Assess my own characteristics, attitudes and skills
related to running a business or being part of a
cooperative
Assess own characteristics, attitudes and skills
related to running a business
Identify and assess business ideas
Describe the basic elements of marketing (5 P’s:
product, place, promotion, price, people)
Akazi Kanoze/WDA Complementary Modules
Page 10
Entrepreneurship Module
My experience
Knowledge, skills and abilities
Trainer’s Manual
I don’t have any
experience
doing this.
I know a little
about this.
I have some
experience
doing this.
I have a lot of
experience
with this.
I am
confident in
my ability to
do this.
Develop an annual sales plan
Calculate start-up and working costs
Determine if a business is going to make a profit or
loss
Identify sources of capital to start an enterprise
Identify and use different types of basic records
(receipts, cashbook, stock list…)
Properly record transactions in a sample cash book
Calculate depreciation
Identify the elements and importance of a profit
and loss statement
Prepare a balance sheet
Write a business plan
Akazi Kanoze/WDA Complementary Modules
Page 11
Entrepreneurship Module
Learning unit 1: Identify and describe entrepreneurial characteristics
Session 1: Qualities and characteristics of entrepreneurs
Note: Session 1 has 300 minutes which should be allocated according to the
objectives of the activities
 Key Topics 
 Meaning of entrepreneurship
 Characteristics and traits of an entrepreneur
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
Activity 1: Introducing entrepreneurship module
 Entrepreneurship Module; learning unit 1; learning outcome 1.1
 Objectives - By the end of the activity, participants will be able to:
a. Obtain an understanding of entrepreneurship
b. Share an example of an entrepreneur that they know
Methodology: panel discussion, pair work, large group discussion, brainstorming
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 Materials and Preparation: board or flipchart, markers, tape
 Read the story in Trainer Tool 1.1: A Successful Youth Entrepreneur to be ready to
explain to participants as needed.
Steps:
1. Have participants turn to the first page of the Entrepreneurship Module in the
Participant Handbook and review the objectives of the module with them. Ask them
what they think the relevance is between the proverb, “Akabando k’iminsi gacibwa kare
kakabikwa kure (Better save now what you will need in the future)” and the module.
How does it relate to real life? Explain that this session will focus on the need for
finance.
2. Ask participants to do the self-assessment Handout 4.0: Self-Assessment:
Entrepreneurship Module, and remind them that they will do the assessment again at
the end of the module.
3. Explain that the overall goal of this session is to learn the basics of entrepreneurship.
Ask participants what they think of when they hear the word “entrepreneurship” (e.g.
running a business).
4. Review the proverb at the beginning of the module: “Akabando k’iminsi gacibwa kare
kakabikwa kure (Better save now what you will need in the future)”. How does this
proverb relate to entrepreneurship?
5. Explain that we will be introduced to some basic elements of entrepreneurship – Who
are entrepreneurs in our communities? What are their characteristics and what do they
do? A connection will be made between entrepreneurship and work readiness skills,
such as setting goals, planning, communication skills, decision making skills, problem
solving, leadership, working in a team and customer service.
Lastly, we will do a self-assessment, reflecting on whether or not they are ready for
entrepreneurship and identifying what we can do to become more entrepreneurial.
By the end of the session, we will have developed a basic understanding of what
entrepreneurship entails.
6. Ask participants to think about business people / entrepreneurs they know in their
community. What do they do? How did they get started? Are they successful? What
makes them successful or not? Discuss with the person sitting next to them.
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
7. Next, share the story in Handout 1.1: A Successful Young Entrepreneur.
Handout 1.1: A Successful Young Entrepreneur
Beza 's Story
Beza started her beading business while she was in school. She started it so she could help
herself through school. She had the chance of learning how to make beads from her
Grandmother when she was young. Since she is a business student, she knew the different
aspects of how to operate a successful business.
After her National Service, Beza was unemployed. She decided to resume her beading
business. She had some savings from her National Service allowance. She reinvested the
money to launch her business on a full scale. Since Beza knew that business was lucrative at
her former university, she wrote letters to the school administration to set up a bead shop
on campus. Beza stated that when students and lecturers had programs to attend, they
would come to her to order beads to match their desired attires. After some time, Beza
started employing less privileged students to sell her products on commission.
Beza's beads were very good. As time went on, people from outside campus wanted some
of her beads. This caused Beza to set up a shop in town. To better the business image, she
started delivering the products to the customers.
Beza also had a Facebook and Instagram page to market her products further.
Beza is a motivated young lady and plans to develop a website for her business in the near
future. Her dream is to export her product outside Rwanda and help less privileged young
ladies in her community.
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
Activity 2: Discuss the characteristics of an Entrepreneur
 Entrepreneurship Module; learning unit 1; learning outcome 1.2
Objectives - By the end of the activity, participants will be able to:
a. Describe the characteristics of an entrepreneur
b. Describe the role of an entrepreneur
 Methodology: panel discussion, pair work, large group discussion, brainstorming
 Materials and Preparation: board or flipchart, markers, tape
Review Handout 1.2: Role of an Entrepreneur, and Handout 1.3: Characteristics/Traits of an
Entrepreneur.
 A week before this session, invite 3 – 4 young entrepreneurs who have started their own
businesses (find youth in different areas –agri-business, IT, hospitality services, …) to
come speak about their experiences.
Steps:
1. Explain that a number of entrepreneurs have been invited to the activity to discuss their
experiences – what they were doing before becoming an entrepreneur, how they
came up with the idea, what steps they took to implement the idea, challenges along
the way, what advice they would have for others starting up their own business, etc.
2. With a partner, participants should think of other questions they might want to ask the
panel.
3. Invite each panel member to talk about the above information (15 minutes per person).
Allow participants to ask questions at the end of each presentation.
4. Ask participants to think about business people / entrepreneurs they know in their
community. What do they do? How did they get started? Are they successful? What
makes them successful or not? Discuss with the person sitting next to them.
5. Next, re-share the story in Handout 1.1: A Successful Young Entrepreneur.
6. Ask the following discussion questions:
 Do you know anyone like Beza who was able to start a small business? Tell us
about them.
 What skills have you learned so far in the Entrepreneurship that will help you
with running a business?
 What did Beza do to ensure her business would be successful?
 What characteristics of an entrepreneur do you seen in Beza or people you know
who are entrepreneurs?
7. Review Handout 1.2: Role of an Entrepreneur and Handout 1.3: Characteristics/Traits
of an Entrepreneur with the group.
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
Handout 1.2: Role of an Entrepreneur
What is an Entrepreneur?
An entrepreneur is a person who has started a business. The business can be
large or small.
An entrepreneur:
1.
Observes the environment.
2.
Identifies opportunities in the business or non-business environment.
3.
Gathers the necessary resources.
4.
Implements the activity.
5.
Receives financial or social rewards.
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
Handout 1.3: Characteristics/Traits of an Entrepreneur
1. Hard Working: running a business requires a lot of energy and drive. This involves the
ability to work for long hours when necessary.
2. Self-Confident: to succeed, entrepreneurs have to believe in themselves and in their
ability to achieve the goals they have set for themselves.
3. Builds for the Future: the goal for most successful business people is to build a secure
job and income for themselves which is based on their own abilities. It may take
several years to build up business income.
4. Profit-Oriented: interest in generating money is a clear indicator of an entrepreneur’s
suitability for being a business owner. This means recognizing that the business comes
first. Once profits are generated, the entrepreneur can make decisions about how the
profits can be used – to expand the enterprise or for personal use.
5. Goal-Oriented: success in business depends upon being able to set realistic goals or
targets and to work with determination to achieve them.
6. Persistent: all businesses have their problems and disappointments. Being persistent
in solving a problem is one of the keys to being a successful entrepreneur.
7. Copes with Failure: all business ventures inevitably contain disappointments and
failures as well as successes. Coping with failures involves recognizing these failures,
learning from them and seeking new opportunities.
8. Responds to Feedback: entrepreneurs obtain useful feedback and advice from others.
9. Demonstrates Initiative: research shows that successful entrepreneurs take the
initiative and put themselves in positions where they are personally responsible for
success or failure.
10. Willing to Listen: being able to listen to the advice of others is a key characteristic of
an entrepreneur.
11. Sets Own Standards: setting standards of performance and then working to achieve
them is another indicator of a successful entrepreneur. These standards can be
income, quality, sales or product turnover. Most entrepreneurs want to do better
each year, to set and achieve higher standards from year to year.
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
12. Copes with Uncertainty: being an entrepreneur is much more uncertain than
employment. This uncertainty is about sales and turnover, but it often also exists in
other areas such as material delivery and prices, and bank support. An ability to cope
with this uncertainty without becoming too stressed is a necessary trait of being an
entrepreneur.
13. Committed: starting and running an enterprise demands total commitment by the
entrepreneur in terms of time, money and lifestyle.
14. Builds on Strengths: successful business people base their work upon the strength(s)
they have, such as manual skills, communication skills, selling skills, organizational
skills, writing skills, knowledge of a particular product or service, knowledge of
people in a trade and ability to make and use a network of contacts.
15. Reliable and Has Integrity: the qualities of honesty, fair dealing and reliability in
terms of doing what one has promised to do are essential traits of an entrepreneur.
16. Manages time well: An entrepreneur is able to do things at the right time (plan
ahead, keep a schedule of what has to be done and when, etc.)
17. Risk-Taker: Entrepreneurs have the ability to take measured or calculated risks. Such
risks involve working out the likely costs and gains, the chance of success and the
belief in oneself to make the risk pay off.
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
Activity 3: Asses one’s entrepreneurial characteristics - Are You Ready to
be an Entrepreneur?
 Entrepreneurship Module; learning unit 1; learning outcome 1.2
 Objectives - By the end of the activity, participants will be able to:
a. Assess if they have the characteristics and skills of an entrepreneur
b. Identify areas in which they need to improve to become a successful
entrepreneur
 Methodology: personal reflection (assessment), large group discussion
 Materials and Preparation: flipchart paper, markers, tape
Worksheet 1.1: Assessing entrepreneurial characteristics – A Basic Checklist
Steps:
1. Tell participants that now we know more about entrepreneurship, including what it is,
characteristics and skills necessary to be a successful entrepreneur, etc., they are going
to fill out a personal assessment form to gauge if they are “business or cooperative –
ready”.
2. Ask participants to turn to Worksheet 1.1: Assessing entrepreneurial characteristics – A
Basic Checklist in their Booklets and answer the questions. Emphasize that even the best
entrepreneurs will not have all the skills and characteristics of a successful entrepreneur.
What is important is to identify your strengths and weaknesses and to work towards
improving your entrepreneurial skills, attitudes and characteristics.
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
Worksheet 1.1: Assessing entrepreneurial characteristics –
A Basic Checklist
1. Do you take initiative?
yes 
no 
2. Are you willing to work harder than you've ever worked before and for long hours
without the security of as steady paycheck?
yes 
no 
3. Can you afford to work without knowing how much money - or success - you'll
ultimately earn?
yes 
no 
4. Are you ready to make tough decisions on your own or with other cooperative
members if you are part of a cooperative?
yes 
no 
5. Do you know when you're "in over your head" and need outside help?
yes 
no 
6. Are you willing to seek outside help? Do you know where to find it?
yes 
no 
7. Can you deal effectively with other people?
yes 
no 
8. Are you an effective leader, motivator, and communicator?
yes 
no 
9. Are you willing to delegate authority and responsibility to others?
yes 
no 
10. Do you work well in a team?
yes 
no 
11. Are you willing to admit it when you're wrong?
yes 
no 
12. Do you project a professional image to your clients and customers?
yes 
no 
13. Can people trust what you say?
yes 
no 
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
14. Can people trust you to do what you say you will do?
yes 
no 
15. Do you have managerial experience?
yes 
no 
16. Do you have the technical skills you will need to operate your particular business?
yes 
no 
17. Do you (or other cooperative members if you are starting a cooperative) have the
business skills you need to run a business?
yes 
no 
18. Do you know your strengths and weaknesses?
yes 
no 
19. Do you have business partners or advisors who can compensate for your
weaknesses?
yes 
no 
20. Have you worked in a business like the one you want to start?
yes 
no 
21. Have you researched your business thoroughly?
yes 
no 
22. Are you a good listener?
yes 
no 
Adapted from http://www.prenhall.com/scarbzim/html/check1.html
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
Learning unit 2: Assess business environment
Session 2: Finding and Establishing a Good Business Idea
Note: Session 2 has 600 minutes which should be allocated
according to the objectives of the activities
 Key Topics 

Identifying business ideas

Assessing business ideas

Basic elements of marketing

The 5 P’s: product, place, promotion, price, people

How to develop an annual sales plan

Calculating start-up and working costs

How to determine profit or loss

Sources of capital to start an enterprise
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
Activity 1: Find a Business Idea
 Entrepreneurship Module; learning unit 2; learning outcome 2.1
 Objectives - By the end of the activity, participants will be able to:
a. Identify sources of business ideas
b. Generate business ideas based on their interests, skills, gaps in the market,
identified needs, etc
 Methodology: case study, large group discussion, individual work, small group work
 Materials and Preparation: flipchart paper, markers, tape, local newspapers,
magazines, advertisements, Handout 2.1: Sina Gerards’ Success in Rwanda,
Handout 2.2: Identifying Business Ideas, Handout 2.3 : My Interests, Skills
and experience
 Collect local newspapers, magazines and advertisements that participants can
use to generate business ideas.
Steps:
Trainer Tip 
There are 2 ways to do this activity. One is to use the case study of Sina Gerards
as described below. The other is to bring in a successful business owner to
share their own local experience with the participants.
1. Explain to participants that identifying a business idea is one of the most important
steps in becoming a successful business or cooperative. Have them turn to Handout
2.1: Sina Gerards’ Success in Rwanda. Ask somebody to read it out loud.
2. Ask : How did Sina Gerard come up with his business ideas? (He had personal
experience and skills from working on his family’s farm, he saw a gap in the market,
he did research to further his knowledge on preserving juice,…).
Explain that business ideas come from many sources, including: hobbies/interests;
personal skills and experience; mass media (television, newspapers, internet,
magazines); surveys asking people for input about a product or service; complaints –
when people are unhappy with a particular service or product, you can improve
upon it; change (as discussed in the previous activity); brainstorming.
3. Ask participants if they know people in their communities who have been successful,
like Sina Gerard. What do they do? What makes them successful?
4. Read Handout 2.2: Identifying Business Ideas together and discuss.
--------------------------------------------------
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
Note to Trainer: The 20 minutes above should have been done at the end of the
previous lesson.
5. Ask participants to turn to handout 2.3 : My Interests, Skills and Experience in their
Booklets and fill it out. They will need to think about their interests/hobbies, skills,
experiences, training and background they have to start a business / cooperative.
Examples of skills and experience include catering, welding, computer programming,
building, farming, secretarial experience, working in family boutique, etc. Have them
identify what types of businesses they might consider starting.. Provide a few
resources in the room that may help generate ideas – Rwandan newspapers,
magazines, advertisements, etc.
6. Have participants walk around the room interviewing each other to find out if
anyone else has similar interests, experiences or ideas. They should form small
groups around a common area of business – construction, agri-business, food
services, hotel services, IT, etc. Ask each group to choose one idea they wish to
develop into a business. On flipchart, the group should describe their best business
idea, including the product or service in detail as well as who the likely customers
might be.
7. After 15 minutes, ask each group to present their idea to the large group. Explain
that during the next activity, they are going to go out into the community to meet
and interview business owners and cooperative members in their field of interest.
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Handout 1.1: Sina Gérard’s Success in Rwanda
(Africa Report: Support and Guidance for Entrepreneurs in Africa)
http://www.africareport.com/top-entrepreneurs/2010/04/30/sina-gerard-one-of-rwandas-most-successfulentrepreneurs/
By Africa Report Team | Apr 30, 2010
RWANDA – This entrepreneur started from next to nothing and now he owns multiple
businesses. The key to his successful achievement was finding the gap in the market.
Sina Gérard of Urwibutso Enterprises is Rwanda’s leading entrepreneur. Self-made; he built
himself up to be a successful business owner. Self-educated; he taught himself life’s lessons
through personal experience. Self-confessed; he is proud to be a big dreamer and visionary.
Sina Gérard took his first steps as an entrepreneur by
baking produce farmed with his parents’ bare hands. This
small bakery established in 1983 was the first of many
successful initiatives started by Sina Gérard as a recipe for
return. He expanded his portfolio by squeezing juice from
the fruits of the very trees that he grew up surrounded
by.
His youthful enthusiasm later researched methods to preserve this juice. The puree process
in turn led to the successful commercial production of banana wine and ultimately the
popularity of these refreshments grew the chain of Sina Gérard’s
retail outlets. Some of these shop fronts are visible on the Main
Road linking the two busiest cities in Rwanda.
These cities enjoy the treats from Sina Gérard’s restaurants as well
as the delicious consumables from his food and beverage
factories. His factories’ large production volumes eventually
required this entrepreneur to create a distribution centre in order to dispatch the supply
required to quench the thirst for his products. Continued profitable turnover reinstated Sina
Gérard in local soil where today he owns vast hectares of farmland and harvests his own
raw ingredients. In addition he has uplifted the local farming industry by training rural
farmers on international agricultural methods and standards.
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Sina Gérard plans to further extend his successful
empire into the export industry while continuing to
give back to the local community as a private investor
in education. He inaugurated the Sina Gérard School
covering nursery, primary and secondary grades.
Raised in the countryside with no formal study, Sina
Gérard recognises academic and English language
skills as assets and therefore facilitates the free
schooling of all of his employees’ children at his institution. Once the pupils graduate he
would like to incorporate them into his Urwibutso work force. He believes that education is
as fundamental to the growth of his nation as it is to the prosperity of his national
companies. Sina Gérard’s philosophy is that all entrepreneurs in Rwanda should contribute
to the development of their country.
This is the story of a self-sufficient industry leader who took ownership of all the little
opportunities that he encountered along the way and now owns large successful enterprises
that are encountered by most Rwandan people on a daily basis. Sina Gérard is a thriving
example of the prosperity that an entrepreneurial approach can attain.
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Handout 2.2 : Identifying Business Ideas
 A business idea is necessary for a successful business venture /
cooperative. Good business ideas are the result of effort and often
creativity on the part of the entrepreneur / cooperative members.
 Finding a good idea is the first step in transforming the entrepreneurs’
desires and creativity into a business opportunity.
 There are many sources of good ideas. To be successful in finding one,
the entrepreneur needs to keep his/her mind and eyes open and be
alert to opportunities.
 An idea, however good, is only a tool. The idea needs to be developed
and transformed into a viable business opportunity.
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Handout 2.3: My Interests, Skills and Experience
My Interests and Hobbies:
My Skills:
My Background / Experience:
Types of Businesses I can start:
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Activity 2: Assess one’s business idea - Is Your Business Idea a Business
Opportunity?
 Entrepreneurship Module; learning unit 2; learning outcome 2.2
 Objectives - By the end of the activity, participants will be able to:
a. Identify different factors to consider when deciding if a business idea is really a
business opportunity
b. Begin to assess if their business idea is worth pursuing
 Methodology: large group discussion, small group work
 Materials and Preparation: flipchart paper, markers, tape,
Handout 2.4: Assessing a Business Idea, Handout 2.5: Assessing My Business Idea
 Prepare signs for each factor one needs to consider when assessing a business idea -
demand, return on investment, competition, whether or not the idea meets
your objectives, availability of resources and skills – and hang them around the
room, creating work stations.
Steps:
1. Congratulate participants on further developing their business ideas. Explain that
now we want to determine if their business ideas will become business
opportunities. Ask participants what they think the difference is between a business
idea and a business opportunity (A business opportunity is when you think income
will exceed costs and generate a profit).
Ask participants what factors they think they should consider in assessing if their
business idea will be a good opportunity or not. Have them think back to people they
have met or Sina Gérard. (demand, return on investment- will you make a profit?,
competition, Does the idea meet your objectives?, availability of resources & skills).
2. Explain that posted around the room are 5 signs representing the factors that should
be considered when assessing a business idea. These factors are described in
Handout 2.4 : Assessing a Business Idea. Discuss the factors further as necessary.
3. Working in their same business idea groups from the previous activity, participants
will visit each station, or factor. There they will discuss the factor in depth as it
relates to some of the businesses they visited in the market. They should then
discuss it in relation to their own business ideas as well, using the form
Handout 2.5: Assessing My Business Idea to write down their ideas. Groups should
start at different stations and rotate every few minutes. For some of the factors,
such as availability of resources, they might not know.
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Explain that they might not be able to do a complete analysis of their own business
ideas at this point but it is to get them thinking about the factors they need to
consider.
4. Have a few groups briefly present their work at the end. Are they able to determine
if their business idea can become a business opportunity, or not yet?
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Handout 2.4: Assessing a Business Idea
What turns an idea into a business opportunity? A simplified answer is when
income exceeds costs and generates a profit.
Characteristics of a good business opportunity:
To be a good business opportunity, it must fulfill, or be capable of meeting, the
following criteria:
 Real demand: responds to unsatisfied needs or requirements of customers
who have the ability to purchase and who are willing to buy
 Return on investment: provides acceptable returns or rewards for the risk
and effort required
 Be competitive: be equal to or better (from the viewpoint of the customer)
than other available products or services
 Meet objectives: meet the goals and aspirations of the person or
organization taking the risk
 Availability of resources and skills: the entrepreneur is able to obtain the
necessary resources.
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Handout 2.5: Assessing My Business Idea
Is there a real demand? (responds to a need)
Will there be a return on investment? (profit – income greater than
expenses)
Is it competitive? (equal or better than other products/services)
Does it meet my objective? (Will this business meet my goals?)
Can I get the necessary resources and skills?
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Activity 3: Visit to Businesses and Cooperatives in the Community
Note to Trainer: You will need to figure out the best time to do this activity, either during
school hours or after school.
 Entrepreneurship Module; learning unit 2; learning outcome 2.3
 Objectives - By the end of the activity, participants will be able to:
a. analyze small businesses and cooperatives in their community
b. Identify how a business idea gets turned into a business opportunity
 Methodology: large group discussion, community/business visit
 Materials and Preparation: flipchart paper, markers, tape,
Handout 2.6 : Business/Cooperative Observations
 Arrange for a few meetings with business owners in their place of work. They should be
representative of the interests of the group – construction, Agro-business, hospitality
services, IT, etc. (Include entrepreneurs who are youth).
 Make any necessary logistical arrangements such as transportation.
Steps:
1. Explain to participants that now they are going to have the opportunity to go out into
the community to talk to people working in their area of interest. They will observe
business owners / cooperative members and also have the chance to interview a few.
They will, using Handout 2.6 : Business/Cooperative Observations:
 List different types of businesses and cooperatives they see in their community.
 Write down the things business owners and cooperative members do to run their
business – How do they attract customers? How do they manage money? How
do they keep track of what is sold? How do they respond to changes in the
market? etc.
 Find out from the business owners & cooperative members what they think is
important in starting, maintaining and growing a business.
 Ask business owners & cooperative members what problems they had starting a
business or cooperative and how they were able to deal with the problems.
Trainer Tip 
If working in a rural area where accessing business owners
and cooperative members might be difficult, plan to do this
activity on the local market day. Participants can observe
and talk to sellers in the market.
2. Divide participants into their area of interests (keep same groups as last activity when
they brainstormed business ideas). Explain that they will have the opportunity to make
informal observations of businesses along the way and meet with some entrepreneurs
who have already been contacted. Each group should select a group leader.
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Trainer Tip 
The group leaders should be informed of the route, and which business
owners and cooperative members they will meet with and when. They should
make sure the participants stay on task and write their observations down.
They should encourage their group members to ask a lot of questions and to
have fun!
3. When everyone is back (or the next time the class meets), have each group share their
experience –
 Was the walk/visit informative?
 Were they able to notice things they typically wouldn’t notice when in the
community?
 What observations did you have about some of the businesses?
 What advice did some of the business owners give you?
 Based on your experience, do you have new ideas for your business?
4. Explain that during the next activity we are going to look more closely at our business
ideas and begin to determine if they are business opportunities.
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Handout 2.6: Business/Cooperative Observations
Types of Businesses and Cooperatives in the Community…
Business owners and cooperative members do many things to run their
businesses (How do they attract customers? How do they manage money? How do they
keep track of what is sold? How do they respond to changes in the market? How are they
creative?):
In starting up and running a business or cooperative, business owners &
cooperative members say it is important to…
What challenges did entrepreneurs / cooperative members have to face
when starting up their businesses and how did they overcome them?
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Entrepreneurship Module
Activity 4: Market Analysis: Your Customers and the Environment in
Which You Work
 Entrepreneurship Module; learning unit 2; learning outcome 2.4
 Objective: - By the end of the activity, participants will be able to:
a. Apply the basic elements of marketing
 Methodology: brainstorming, small group work, large group discussion
 Materials and Preparation: flipchart paper, markers, tape
Handout 2.7: Market Analysis.
Steps:
1. Explain to participants that now we are going to think about the market – what we buy
and why, and from whom we buy and why. Divide participants into 3 groups and give
each group a flipchart paper. They should brainstorm answers to the following questions
and write their responses on the flipchart:
a. What types of items do you buy in the market or shops and why?
b. How do you decide where and whom to buy an item from?
c. As potential IGA/business owners or cooperative members, what information
would be useful to know about your customers and the environment in general
before you start your business activity (and while you are running it too)?
2. Ask groups to report back. Group 1 can take the lead on the first question, with groups 2
and 3 adding any other points not mentioned by Group 1, Group 2 should take the lead
on answering the next question and so on.
3. Link participants’ responses to the information found in Handout 2.7: Market Analysis.
Emphasize the importance of knowing your environment and the customers in order to
run a successful IGA or cooperative.
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Handout 2.7: Market Analysis
What is a market? The market for a business is all the people within a specific
geographical area who need a specific product or service and are willing and able to buy it.
What should entrepreneurs know about potential customers – Who, What,
Where, Why and When?
 Know the customers: age, sex, marital/family status, employment, income, trends…
 Know what different customer groups want: By grouping customers (ex. youth, girls,
boys, men, women, urban, rural), it is easier to determine what products or services
each group wants or needs.
 Know where the customer buys: Entrepreneurs need to find out where the customers
in their market are presently buying, and determine what factors will cause them to
switch and buy from their new businesses.
 Know why the customer buys: necessity, replace used goods, get the latest version of a
product, etc.
 Know when the customer buys: Knowing when customers buy (daily, weekly, monthly,
yearly, seasonally) will help entrepreneurs to determine hours of operation, when to
advertise and quantity of merchandise to have on hand at specific times of the year.
Where can customer information be located? Customer information can be
obtained from trade associations (publications), chambers of commerce, government
agencies (including local government), newspapers and magazines, and individual research
by conducting a market survey in the community.
What is the marketing concept? One of the greatest needs of the owners of small
businesses or cooperatives is to understand and develop marketing programs for their
products and services. Marketing is based on the fact that: (a) business policies and
activities should be focused on satisfying customer needs, and (b) profitable sales volume is
a primary goal.
When applying the marketing concept, a small business should:
1.
2.
3.
4.
Determine the needs of their customers;
Analyze their competitive advantages;
Select specific markets to serve; and
Determine how to best satisfy those needs.
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
Activity 5: Discuss the 5 P’s: People, Products and Services, Promotion,
Place/Distribution and Price
 Entrepreneurship Module; learning unit 2; learning outcome 2.4
 Objective: - By the end of the activity, participants will be able to:
a. Apply the 5 P’s to different business situations
 Methodology: large group activity and discussion
 Materials and Preparation: flipchart paper, markers, tape,
Handout 2.8: Marketing Plan, Trainer Tool 2.1: 5 P’s Scenarios
Steps:
1. Explain to participants that when considering the market for their product or service,
one needs to consider the “5 P’s”: people, product, place, price, promotion. They
should get back into their groups to discuss and write down information for each
item (Handout 2.8: Marketing Plan) as it relates to their business idea:





People: What are the characteristics of the people you wish to sell the product /
service to: Age, gender, education, income, and culture?
Product/ Service: Why is the chosen product /service different from similar ones in
the market?
Place: Which locality will be the most suitable place for selling such a product or
service? Why did you choose that locality?
Price: What would be the most suitable price? What is the price your competitors
charge? Can the price be raised if the quality is improved or there is added
advantage of delivery? Can it be lowered to increase volume of sales?
Promotion: What methods would you employ to sell the product? How will you
attract and retain your customers? How will you advertise your product / service
(radio, poster, newspaper, word of mouth…)?
2. Ask for a few volunteers to share their results.
3. Tell participants that they will now use their knowledge of the 5 P’s to answer
questions to the following scenarios. You will read a situation out loud (from Trainer
Tool 2.1: 5 P’s Scenarios) and pick a volunteer to answer it. The rest of the group will
either remain seated if s/he thinks the answer is complete, or stand up if s/he has
something else to add.
Call on someone who is still standing to add their idea. Those participants standing
should either sit down if they feel now the answer is complete or remain standing if
they have something more to add. Continue the process until all are seated.
4. Answer any questions participants might have on marketing.
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Handout 2.8: Marketing Plan

People: What are the characteristics of the people you wish to sell the product /
service to: Age, gender, education, income, and culture?

Product/ Service: Why is the chosen product /service different from similar ones
in the market?

Place: Which locality will be the most suitable place for selling such a product or
service? Why did you choose that locality?

Price: What would be the most suitable price? What is the price your competitors
charge? Can the price be raised if the quality is improved or there is added
advantage of delivery? Can it be lowered to increase volume of sales?

Promotion: What methods would you employ to sell the product? How will you
attract and retain your customers? How will you advertise your product / service
(radio, poster, newspaper, word of mouth…)?
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Trainer Tool 2.1: 5 P’s Scenarios
There are many possibilities for these scenarios. Some suggestions are in italics.
1. You recently started a home-building cooperative with a few other people. The jobs
you have done so far have been for family or friends of the cooperative members.
You have never advertised. What are some good ways to let people know about your
business?
(advertise at stores that sell construction materials, hang posters advertising your
business, talk to your neighbors, …)
2. Several customers ask you to open your shop earlier in the morning. Other customers
want you to stay open later in the evening. How do you decide?
(Compare the morning and evening sales – when do you have more customers? When
do you sell more? Also, interview customers to see how much earlier or later they
want you to stay open and how often they would come; Consider opening earlier and
closing later – Is this possible for you? Could you hire someone to cover the extra
hours?…)
3. A competitor has lowered prices below yours. You cannot make a profit if you match
hers. What do you do?
(Figure out a way to promote the quality of your product – advertise why it is the best
in the market, provide better customer service)
4. Your old customers seem to be going to other sellers. What should you do?
(Re-assess your market strategy. Are your prices too high? Quality not as good? Ask
customers why they are switching. Is your competitor doing something unique?
Improve your customer service)
5. You are a member of a bakery cooperative that sells bread, but you would like to sell
sweets also. How do you decide whether to add the new product?
(Have a meeting with the other cooperative members to make sure everyone is in
agreement about the idea. Do a customer survey. Find out what sweets they like and
if they will be willing to buy them. Test a few out. Put them on the counter for
sampling…Find out who else is selling sweets in the area and how they do it)
6. You own a bicycle repair service. Some people say you charge too much for your
work. How do you decide whether to change your prices?
(Find out what other bicycle repair services are charging. Determine if you lower the
price, will you still make a profit. Determine if you seem to be losing customers due to
high prices.)
7. A customer ordered a cold Fanta one busy day at your boutique. Some other
customers were being demanding so you thought you could quickly serve them
before getting the Fanta from the fridge. When you finally got to the fridge, there was
no Fanta. Your customer became very annoyed, saying he would not come back
again. What would you do?
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(Apologize to the customer and explain to the customer that you were busy and
thought you could quickly serve the demanding customers. Tell him what other drinks
are cold. Consider hiring an assistant if you are always too busy. Hang a sign that says
customers who arrive first are served first so they all understand.)
8. You want to set up a table at the market to sell beauty products made from local
plants. As you decide where to locate your table, what things would be important to
you?
(Flow or movement of customers, if it is accessible, where your potential customers
typically go in the market (could set up table near somewhere they already frequent),
distance from your house, cost to get things to the market…)
9. You are a member of a honey producing co-operative. You would like a local store to
sell your honey. What would you say to the store owner to convince him or her?
(talk about the high quality of the honey – give him or her a sample, talk about your
current sales, tell the owner that you can provide a constant supply…)
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Activity 6: Set price and make annual Sales Projection
Note to Trainer: A simpler version of this activity is found at the end of the activity.
 Entrepreneurship Module; learning unit 2; learning outcomes 2.4
 Objectives - By the end of the activity, participants will be able to:


a. Determine how to set a price for their product or service
b. Develop an annual sales plan
Methodology: large group discussion, small group work, individual work
Materials and Preparation: flipchart paper, markers, tape, Handout 2.9:
Developing a Sales plan, Handout 2.10 : Bread Baking Cooperative Sales Plan,
Steps:
1. Explain that one of the 5 P’s is price. Ask how one goes about determining a price for
their product or service. (find out what competitors are selling at, make sure your
price is high enough to cover costs, …)
2. Divide participants into their groups. Each group should discuss the prices they
intend to charge for their products and services and why. (If participants think their
product will be of better quality they could charge slightly above market price. If they
think they might be able to produce a lot in a short period of time, they might lower
the price slightly to attract the customers. The price should be high enough so they
don’t operate at a loss. Prices will depend on the nature of the market too – if there is
a low supply and high demand, then prices will be high; if there is a high supply and
low demand, prices will be lower. Price also depends on how much it costs to produce
the products/services.)
3. Have participants turn to Handout 2.9: Developing a Sales Plan and discuss. Explain
what turnover is (amount of money that a business receives from its sales for a
period of time that is found by multiplying the price x the quantity). Ask them to think
about their product/service at different times of the year. Will there be times when
sales are higher? Lower? Why? Is there inflation? Will this cause prices to go up?
(Remember that prices of certain electronics such as a mobile phone or computer
might actually go down as newer improved models replace old models).
Give a bread baking cooperative as an example. Using the information below, ask
them what they think the sales plan will look like each month for the cooperative. If
the average is 1,500 loaves per month but sales will be higher and lower for
particular months, what do they think production will look like for each month?
When will turnover be highest?
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Bread Baking Cooperative Sales Plan
Members of the bread baking cooperative think they can produce, on average,
300 loaves of bread per week (or 1,200 loaves per month). They want to charge
300 Rwf per loaf and do not think the prices will fluctuate much. They know that
they will do more business in December because of the Christmas holiday and
when school is in session since they will sell to the nearby school. Therefore sales
will be lower in April and August.
Show them Handout 2.10: Bread Baking Cooperative Sales Plan and discuss.
4. Have them fill in the table in Handout 2.9: Developing a Sales Plan as best as they
can for their own product/service. Recognize that they will probably need to gather
more information to fill in the table accurately. Tell them that when they are not in
class, they should be gathering the information discussed in the previous activities to
be able to generate a marketing plan.
Trainer Tip 
Tell participants that when starting out a
business, their production will be lower in
the beginning and then gradually increase
as they get more customers. They should
take this into account as they fill in their
own sales plan.
Alternative: To simplify this activity, participants could use the same price and quantity for
each month, so it is an average monthly amount. They could use this to estimate the
amount of money they will receive per month, per 3 months, per half a year or per year. For
example: A business owner sells cloth bags. The average price is 5,000 Rwf per bag. On
average she sells 10 per month.
I month turnover: 5,000 Rwf x 10 = 50,000 Rwf
In 3 months: 50,000 Rwf x 3 = 150,000 Rwf
In 6 months: 50,000 Rwf x 6 = 300,000 Rwf
In 1 year: 50,000 Rwf x 12 = 600,000 Rwf
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Handout 2.9: Developing a Sales Plan
A sales plan contains three elements: the quantity of products to be sold, the price of the
product and turnover. The turnover is the amount of money that a business receives from
its sales during a month (monthly turnover) or during a year (yearly turnover).
Month
Jan
Feb
March Apr
May June July
Product 1
Price/Unit
Turnover
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Aug
Sept Oct
Nov
Dec
Entrepreneurship Module
Trainer’s Manual
Handout 2.10 : Bread Baking Cooperative Sales Plan
A sales plan contains three elements: the quantity of products to be sold, the price of the product and turnover. The turnover is the amount
of money that a business receives from its sales during a month (monthly turnover) or during a year (yearly turnover).
Month
Product 1:
bread loaf
Price/Unit
(Rwf)
Turnover
Jan
Feb
March
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
500
800
1,000
700
1,100
1,300
1,500
1,200
1,500
1,600
1,500
1,700
300
300
300
300
300
300
300
300
300
300
300
300
150,000
240,000
300,000
210,000
330,000
390,000
450,000
360,000
450,000
480,000
450,000
510,000
Akazi Kanoze/WDA Complementary Modules
Page 45
Entrepreneurship Module
Trainer’s Manual
Activity 7: Discuss Start-Up & Working Costs and Estimating Profit or Loss
 Entrepreneurship Module; learning unit 2; learning outcome 2.4
 Objectives - By the end of the activity, participants will be able to:
a. Identify and calculate start-up and working costs
b. Apply their knowledge in calculating start-up and working costs to their own
businesses
c. Compare turnover from the sales projection and the estimated costs to
determine profit or loss


Methodology: large group discussion, small group work , individual work
Materials and Preparation: flipchart paper, markers, tape, Handout 2.10: Bread
Baking Cooperative Sales Plan, Handout 2.11: Estimating Start-Up and Working
Costs, Handout, Handout 2.12: Start-Up and Working Costs for My Business/My
Cooperative Business. Worksheet 2.1: Start-Up and Working Costs for My
Business/My Cooperative Business
Steps:
1. Explain to participants that as they are aware, it takes some money to start up and run a
small business or cooperative. Ask participants to brainstorm a list of costs they expect
to have when starting up a business. Write down their responses on flipchart.
Looking at the list, ask if there are some costs that occur just once or at the
beginning and other costs that occur regularly.
Explain that the money needed to start up a business is called start-up capital. Those
expenses that occur only once at the beginning such as purchase of furniture, tools,
equipment, business registration, initial hookup for water and electricity, etc. are part
of start-up costs. They occur before the business gets up and running. As a general
rule, 30% of the start-up capital should be from the entrepreneur’s own resources.
Expenses that will occur every month or on a regular basis are working or operating
costs (monthly salaries, monthly rent, transportation of goods to market, raw
materials…). Some of the money earned from the sales must be used to purchase
new inputs. Thus, it is essential to know the amount of money required for the
working costs, and to deduct it from total sales before using the remainder to pay
personal expenses.
Refer participants to Handout 2.11: Estimating Start-Up and Working Costs for
reference.
2. Now have participants help out the Bread Baking Cooperative estimate their start-up
and working costs. Have participants turn to the bottom of Handout 2.11: Estimating
Start-Up and Working Costs. In small groups, they should figure out the start-up and
working costs for the bread baking cooperative.
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3. Review the results together, using the answers below:
Item
Cost (RWF)
Start-Up Costs:
Wood-burning oven
tables: 2 @ 20,000 each
chairs: 2 @ 7,000 each
cooking utensils, tools and bowls
registration fee
Total Start-Up Costs
300,000
40,000
14,000
75,000
10,000
439,000
Working Costs:
bread ingredients (flour, salt… each month)
Renting space
monthly sector tax
power cost (firewood)
Telephone
Water
7 employees @15,000 per month each
Total Monthly Working Costs
150,000
25,000
10,000
15,000
3,000
5,000
115,000
313,000
Have participants think about their own businesses now. Working in their groups or as
individuals, ask them to begin writing down their start-up and working costs, using the
template in Worksheet 2.1: Start-Up and Working Costs for My Business/My Cooperative
Business
4. What start-up capital will be needed? What will be their monthly working costs? If they
do not know the price of something, they should find out before the next class.
--------------------------------------------------
5. Ask participants what a profit means (amount of money remaining after costs have been
subtracted from sales). Ask what a loss means (when the costs are more than the sales).
Have participants look back at handout 2.10: Bread Baking Cooperative Sales Plan and
compare it to the start-up and working costs calculated above. Ask participants if, based
on the sales plan and the estimated costs, the cooperative will make a profit or loss.
Answer:
- Calculate the annual turnover by adding up the turnover for each month:
4 320 000 Rwf over the 12 months.
-
Calculate the total monthly working costs: 313 000 x 12 = 3 756 000
Add the monthly working costs and the start-up costs: 3 756 000 + 439 000 =
4 195 000
Subtract the estimated sales minus the estimated costs: 4 320 000 – 4 195
000 = 125 000
The sales will be more than the costs, indicating a profit
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6. Explain that when running a business or cooperative, you will want to make a profit. Ask
how the Bread Baking Cooperative’s profit could be increased (raise the price of bread,
increase production, reduce some of the start-up utensils or tools, …).
7. Have participants do the same calculations using their sales plan and estimated start-up
and working costs to see if they will make a profit or loss (they might need more
detailed prices before doing this calculation but they can estimate for now). They should
do this in Handout 2.12: Start-Up and Working Costs for My Business/My Cooperative
Business. Ask for volunteers to share their results with the large group.
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Handout 2.11: Estimating the Start-Up and Working Costs
The money needed to start up a business is called start-up capital. Those expenses that
occur only once at the beginning such as purchase of furniture, tools, equipment, business
registration, initial hookup for water and electricity, etc. are part of start-up costs. They
occur before the business gets up and running. As a general rule, 30% of the start-up
capital should be from the entrepreneur’s own resources.
Expenses that will occur every month or on a regular basis are working or operating costs
(monthly salaries, monthly rent, transportation of goods to market, raw materials…). Some
of the money earned from the sales must be used to purchase new inputs. Thus, it is
essential to know the amount of money required for the working costs, and to deduct it
from total sales before using the remainder to pay personal expenses.
Handout 2.12: Start-Up and Working Costs for Bread Baking
Cooperative
Item
Wood-burning oven
tables: 2 @ 20,000 each
chairs: 2 @ 7,000 each
cooking utensils, tools and bowls
bread ingredients (flour, salt… each month)
Renting space
monthly sector tax
registration fee
power cost (firewood)
Telephone
Water
7 employees @15,000 per month each
Cost (RWF)
300,000
40,000
14,000
75,000
200,000
30,000
10,000
10,000
15,000
3,000
5,000
115,000
Divide the costs into start-up and working costs.
How much will the start-up costs be?
How much will the working costs be each month?
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Worksheet 2.1: Start-Up and Working Costs for My Business/My
Cooperative Business
Item
Cost (RWF)
Start-Up Costs:
Total Start-Up Costs
Working Costs:
Total Monthly Working Costs
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 Activity 8: Discuss sources of Financing / Capital
 Entrepreneurship Module; learning unit 4; learning outcomes 4.1
 Objectives - By the end of the activity, participants will be able to:
a. Identify and assess the various sources of capital to start an enterprise
b. Differentiate between equity capital and credit/debt financing


Methodology: large group discussion, panel discussion, small group work
Materials and Preparation: flipchart paper, markers, tape, Handout 2.13: Finding Capital
for my Business, Handout 2.13: The cost of a loan
 Make arrangements for a panel of speakers to come talk about the financing of start-up
costs. There should be a combination of business owners & cooperative members who
can share their experiences and representatives from institutions such as a bank, microfinance institute, cooperative, etc.
Steps:
1. Participants now realize from the last activity, that start-up costs are high. Ask them to
think back to the beginning of the module. Where can people go to borrow money?
(friends, family, financial institutions, cooperatives, savings groups…) What were some
of the sources of financing discussed? Different types of financial institutions were
discussed and compared:
-
Large banks provide large loans and savings services to larger organizations and
people who earn a lot of money.
Microfinance institutions provide smaller loans to smaller organizations and
people who earn less.
Cooperatives provide savings and loans services to low income people.
Savings groups provide savings and loans services to low-income people, and
often to those that have not dealt with the financial services before.
2. Explain that money that an owner puts into his/her business is called equity capital. It is
the owner’s investment in the business. Borrowing needed capital for the business is
called credit or debt financing. Institutions lending money want to see that the owner is
putting some of his/her own resources into the business. That shows commitment.
3. Invite a panel of guests to speak about start-up costs and borrowing money. The panel
should be comprised of young business owners, cooperative members and
representatives from a few different financial institutions (see above list). The
cooperative members and business owners should talk about how they managed to find
money to start their businesses and those from the financial institutions should talk
about the processes they use in giving out loans and what they expect of the borrower.
After the panelists have shared their information, there should be a question and
answer period.
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--------------------------------------------------
4. Ask participants to think about their own business idea. In Worksheet 2.2: Finding
Capital for my Business, they should write down answers to the following questions:
a. What are your startup costs calculated in
the previous activity?
b. Name the people
and places you can
go to for borrowing:
-
Trainer Tip 
It would be very helpful if any of the invited
guests can stay while participants are
working on their own business idea. The
entrepreneurs and financial institution
representatives could have some good
advice for them on obtaining capital.
equity capital? friends, family, your own savings, partner with someone
debt financing? bank, micro-finance institution, a business cooperative, etc.
c. If you have to go to a bank for a loan, how can you increase your chances of
obtaining a loan?
d. If you need to take out a loan, what is the cost? Is the cost and the conditions of
the loan (when you have to pay back) the same at every institution? If no, is one
better than the other? (you might not have the information on hand but will
need to find out)
5. Explain that it costs to borrow money from a financial institution. They charge interest.
Give them the information below for the bread baking cooperative and have them use
Handout 2.13: The cost of a loan to do the calculations of the cost of the loan. They will
calculate the cost of the loan, the amount they will need to pay over the 2 years, and the
amount they will have paid back after one year. Answers are in parentheses below.
Finding Capital for Bread Baking Cooperative
Coop members realize that they are going to need a loan. They obtain one for
500,000 Rwf from Umerenge SACCO. They need to pay back the loan in two
years at a 10% interest rate. They will pay half in 12 months. What is the cost of
the loan? How much total will they owe the bank in 2 years? How much will they
have to pay at the end of the first year? (cost of loan = 500,000 X .10 = 50,000
Rwf so over 24 months she will need to pay 550,000 to the bank. In 12 months
she will pay back 275,000 Rwf)
6. Answer any final questions participants may have.
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Worksheet 2.2: Finding Capital for my Business
a. What are your start-up costs and first month’s expenses calculated in the
previous?
b. Name the people and places you can go to for borrowing:
- Equity capital? friends, family, your own savings, partner with someone
- Debt financing? bank, micro-finance institution, a business cooperative,
etc.
c. If you have to go to a bank for a loan, how can you increase your chances
of obtaining a loan?
d. If you need to take out a loan, what is the cost? Is the cost and the
conditions of the loan (when you have to pay back, how much etc.) the
same at every institution? If no, is one better than the other? (you might
not have the information on hand but will need to find out)
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Handout 2.13: The Cost of a Loan
Loan for Bread Baking Cooperative
Coop members realize that they are going to need a loan. They
obtain one for 500,000 Rwf from Umerenge SACCO. They need to
pay back the loan in two years at a 10% interest rate. They will
pay half in 12 months.
a. What is the cost of the loan?
b. How much total will they owe the bank in 2 years?
c. How much will they have to pay at the end of the first
year?
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Learning unit 3: Produce a business idea
Session 3: Business idea proposal - How Do I Find a Good Business
Idea?
Note: Session 3 has 600 minutes which should be allocated
according to the objectives of the activities
 Key Topics 
Creativity and Innovation
Generating Ideas
Identifying and Assessing Business Opportunities
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Activity 1: Assess and discuss Creativity potential
 Entrepreneurship Module; learning unit 3; learning outcomes 3.1
 Objectives - By the end of the activity, participants will be able to:
a. Assess their own business creativity potential.
b. Identify techniques for developing business creative ability
 Methodology: small group discussion, brainstorming, large group discussion
 Materials and Preparation: flipchart paper / board, markers, Worksheet 3.1:
Own creativity potential assessment, Worksheet 3.2: Three Descriptions,
Handout 3.1: Creativity awareness
 Collect magazine pictures (optional).
RATIONALE:
 To develop their creative ability, participants need an opportunity to assess their own creative
behaviour. They can then begin to practice creative thinking. Creativity is another area where
entrepreneurs have various opportunities to use their creative talents. Although employees
are often not required to think creatively, they can be excellent sources of new ideas.
 Because the entrepreneur has such a broad range of responsibilities, creativity by both
entrepreneur and employees can be extremely useful to develop ideas to solve a wide variety
of business-related problems. Entrepreneurs have a great deal of freedom to implement
creative ideas.
 One way to help participants develop their creative ability is to begin with existing ideas. These
ideas may be changed in various ways to produce new and original ideas. The technique of
changing existing ideas has many useful applications in work situations.
Steps:
1. Have participants complete Worksheet 3.1: Own creativity potential assessment Explain to
participants that the worksheet is designed to help them assess their creative potential.
2. Distribute Worksheet 3.2: Three Descriptions. Have participants read the three descriptions
and decide which one best describes them.
3. The following Scoring Key will help participants score their worksheets. Read the scores for each
response to each question. Instruct participants to write the number of points they scored for their
responses beside each statement on the worksheet. For example, if a learner checked “Uncertain”
for statement A, the learner should write “1” beside the statement; if a learner checked “yes” for
statement A, the learner should write “2” beside the statement.
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TRUE
FALSE
UNCERTAIN
A
2
0
1
B
2
0
1
C
0
3
1
D
0
2
1
E
0
3
1
F
3
0
1
G
0
3
1
H
0
3
1
I
2
0
1
J
3
0
1
K
2
0
1
L
3
0
1
M
2
0
1
N
3
2
1
O
2
0
1
After all statements have been scored, have participants add up the points for all statements.
Have participants refer to Worksheet 1. Tell them that they may interpret their scores as
follows:
•
•
•
Description I applies to persons who scored 23 points or more.
Description II applies to persons who scored between 11 and 22 points.
Description III applies to persons who scored 10 points or less.
4.
Use the following questions to discuss the results of the scoring. Were you surprised at the
results of the scoring? Why or why not? What do you like about the description from scoring
the worksheet? What about the description would you like to change or improve? In what ways
are the descriptions similar/different? What advantages might a person of each description
have as a self-employed person? Disadvantages?
5.
Have participants read and discuss Handout 3.1: Creativity awareness .
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Worksheet 3.1: Own creativity potential assessment
Respond to each of the following statements by checking one of the boxes to the left of the statement. This is not a test. Think carefully
about each statement before responding.
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
Statements
My ideas are not always easy to explain to others.
I would rather work at discovering new facts than teaching others.
I don’t like to waste time and energy on ideas that may not work out.
I find it easier to express ideas than to think of new ideas.
I prefer quick solutions to problems rather than dealing with uncertainty.
My way of thinking is often considered different or unusual.
I find it easy to interrupt a project when friends call or visit.
I feel more comfortable with facts than with theories.
I would rather be good at making up stories than good at telling them.
I have difficulty giving up my ideas just to please others.
K.
L.
M.
N.
O.
I would rather design clothes than model clothes.
I prefer to work on ideas by myself rather than with others.
Unusual things appeal to me more than ordinary things.
When I get an idea, I work on it, even when others think it is “far out” and impractical.
I would follow up on my ideas even if it means being alone a lot.
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True False Uncertain
Entrepreneurship Module
Worksheet 3.2: Three Descriptions
Below are descriptions of three different types of people. Read all three descriptions carefully. Mark
an “X” beside the description you believe most closely describes you.
Description I
You are not bound by ordinary ways of thinking. You can develop and recognize ways to combine
ideas in new ways. You are willing to experiment even when you are not sure your work will be
rewarded. Because you seldom depend on others, you can provide yourself with the time, energy
and isolation that are necessary for creative activities. You are not likely to be distracted or
discouraged by others once you become interested in a challenging task.
Description II
You can recognize and appreciate a creative idea, although you usually do not produce these ideas
by yourself. You probably engage in creative activities which involve using your hands or which
involve objects you can see and touch. You start creative projects sometimes, but you may lose
patience and interest when a project requires you to work for a long time by yourself.
Description III
You are usually more interested in practical down-to-earth matters than in chasing dreams. Since
you tend to be very realistic in your thinking, you may not be aware of unusual ideas that are
necessary for creative problem solving. Because you prefer to work with other people, you rarely set
aside time to work by yourself on your ideas. You are more likely to engage in activities which give
you immediate results and which may be shared with others.
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Handout 3.1: Creativity awareness
Most people can think of several occupations which require creativity - artist, musician, dancer,
designer and scientist. However, the need for creativity is not limited to these occupations. Creative
ideas are needed anywhere there are problems with unknown solutions. In the business world,
entrepreneurs use creativity to solve everyday problems, promote products and services, update
products and services, and make use of limited resources.
Some people believe that they are not creative. They may overlook situations in which they have
good ideas, or they may avoid sharing their ideas with others. By recognizing and sharing their ideas,
people can begin to develop their creative ability.
Because people become accustomed to thinking in certain ways, they may have difficulty thinking of
original ideas. People can develop their creative potential through learning and practice. Several
techniques can be used to develop more creative thinking habits. Some of these techniques are:
increasing awareness of one’s environment, brainstorming and changing existing ideas.
Increasing awareness of one’s environment means learning to pay attention to sights and sounds
we ordinarily ignore. Most people are in the habit of blocking out certain sights and sounds in order
to concentrate on one thing at a time. By paying attention to what we usually ignore, we can open
our minds to new ways of thinking.
Brainstorming is a technique in which persons generate a large number of ideas. Unusual ideas are
encouraged. Ideas are never judged or criticized during brainstorming. Participants may combine
and improve ideas during brainstorming.
New and original ideas can be developed by using existing ideas as a starting point. Parts of existing
ideas can be changed in many ways. They can be: made bigger, made smaller, modified in color,
taste or style, rearranged, reversed, substituted or combined. Products and services are often
changed to make them more attractive by using this simple technique. This method could also be
used to help entrepreneurs make their working situations more pleasant and efficient.
By developing and using their creativity, entrepreneurs can increase their potential for success.
The appreciation of creativity has been more important for entrepreneurs in the past several years.
It is increasingly accepted that intellect and credentials take a back seat to the ability to respond
creatively to challenging situations.
Here are seven steps to expanding your creative potential:
1.
Examine how you perceive creativity and creative people. Our results-oriented culture has
tended to look at those whose creativity produces a product — a book, painting or cake — as
officially creative. We have been less able to recognize people who identify new ways of
thinking and behaving, especially in everyday and business life, as just as creative.
2.
Spend time with creative people. Observe how they act, think, relax and respond. Ask them to
talk about what events in their lives influenced their creativity.
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3.
Learn your own warm-up process. This warm-up process increases your ability to ready yourself
to develop a creative idea and take positive risks in making changes, even small ones. What
events and settings seem to encourage your creative actions?
4.
Move, dance, exercise, bicycle, walk and stretch. Try yoga or tai chi. These physical activities get
us out of our thinking brain and allow us to truly inhabit all of our body. As the body moves, the
right and left parts of the brain; both the imaginative side and the cognitive side are able to
work together more efficiently.
5.
Listen to music and experiment with improvisational exercises. Notice how different types of
music promote various levels of energy within you. Theater and drama exercises will help you
practice different ways of responding, apart from your habitual roles.
6.
Keep a notebook of interesting or creative ideas and observations. Paste a few pictures from
magazines that interest or intrigue you, even if you don’t know why. Scribble and doodle.
Whatever you do, don’t censor yourself. See what happens.
7.
Find a mentor or coach who can help you develop your creativity to a higher level.
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Entrepreneurship Module
Activity 2: Discuss innovation potential
 Entrepreneurship Module; learning unit 3; learning outcomes 3.1
 Objectives - By the end of the activity, participants will be able to:
a. Identify the innovative actions of a successful entrepreneur.
b. Develop their innovative ability
 Methodology: small group discussion, brainstorming, large group discussion
 Materials and Preparation: flipchart paper / board, markers, Worksheet 3.3:
New Ideas from Old, Worksheet 3.4: Taking Innovative Action, Handout 3.2:
Meaning of Creativity
 Collect magazine pictures (optional).
Steps:
1. Discuss the technique of changing existing ideas in order to develop new and original
ideas. Existing ideas give us a starting point. By changing one or more parts of an idea,
we can develop useful new ideas. Discuss the following ways of changing an idea. Have
participants give examples of each.
• Make it bigger or add new parts. Two examples are “giant economy sizes” of
products and increasing the size of a business to include more products or to serve a
larger area.
• Make it smaller or eliminate parts. Examples are transistor radios, pocket
calculators, digital cameras etc.
• Modify parts or ideas. Examples are changing colors, tastes, odors and styles.
Soaps are often changed in their color and odor. Automobile styles are changed
yearly.
• Rearrange parts. Some examples of rearranging parts are in designing buildings,
parks, and machines.
• Reverse parts. One example of reversing parts is in automobiles in which the
trunk and the engine are reversed in location. Another example is reversing roles of
persons, such as a husband assuming homemaking responsibilities while a wife
assumes the role of breadwinner.
• Substitute different materials, parts, or methods. A common example is the
substitution of plastic for wood and metal. Another example is the substitution of an
electric motor for an internal combustion engine in a car.
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• Combine parts or ideas. One example is the “home entertainment unit,” which
combines a television, radio, tape player, and record player. Another example is the
motor home, which combines a home with a vehicle.
2. Have Participants complete Worksheet 3.3: New Ideas from Old
• Ask all participants to share their ideas. Have them explain how their ideas can
be useful in work situations.
• Ask the class to consider combining two or more ideas of individual
participants.
• Emphasize that the technique used in this activity can be used to develop new
ideas and processes as well as new objects.
• Have participants apply the same technique to a service instead of an object.
• Have participants imagine that the class has decided to form a company to
offer a service (for example, lawn mowing or dog walking). Working as a group,
have the participants use the same technique they used on the worksheet to
develop a creative marketing approach which would attract customers.
3. Have participants complete Worksheet 3.4: Taking Innovative Action
4. Have the class discuss innovative entrepreneurial responses to the changes in business.
5. Show Handout 3.2: Meaning of Creativity and have the class discuss ways they can
become more creative.
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Worksheet 3.3: New Ideas from Old
Make it bigger or add new parts. Two examples are “giant economy sizes” of
products and increasing the size of a business to include more products or to
serve a larger area.
Make it smaller or eliminate parts. Examples are transistor radios, pocket
calculators.
Modify parts or ideas. Examples are changing colors, tastes, odors and styles.
Soaps are often changed in their color and odor. Automobile styles are changed
yearly.
Rearrange parts. Examples: rearranging parts for designing buildings, parks,
and machines.
Reverse parts. One example of reversing parts is in automobiles in which the
trunk and the engine are reversed in location. Another example is reversing
roles of persons, such as a husband assuming homemaking responsibilities while
a wife assumes the role of breadwinner.
Substitute different materials, parts, or methods. A common example is the
substitution of plastic for wood and metal. Another example is the substitution of
an electric motor for an internal combustion engine in a car.
Combine parts or ideas. One example is the “home entertainment unit,” which
combines a television, radio, tape player, and record player. Another example is
the motor home, which combines a home with a vehicle.
Practical Application
1. Think of an object used or produced in a work situation. Write the name of
the object;
2. Name the basic parts of the object.
3. How could the object or part of the object: be made bigger, be made
smaller, be modified?
4. How could the parts of the object: be rearranged, be reversed, be
substituted or made of a different material?
5. How could your ideas be combined and be useful in making a new product?
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Worksheet 3.4: Taking Innovative Action
Entrepreneurship is about taking innovative actions whenever one finds oneself
in different situations of change
Fill in an innovative action an entrepreneur could take to respond to the
identified change
CHANGE
POSSIBLE ENTREPRENEURIAL
RESPONSE
Structure of population changes
Values and lifestyles changes
Incomes and purchasing power
decrease
Government policies on gender
reviewed
Natural resources getting exhausted
Ownership of factors of production
changing hands
Banks advertise availability of loans
Use of computers increases
Use of mobile phones increases
Use of computers and internet facilities
in homes increase
New advanced equipment bought by
business competitor
New strategies for accommodating
people living with HIV
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Handout 3.2: Meaning of Creativity
a. Creativity is the ability to design, form, make or do something in a new
or different way.
b. Creativity is the ability to come up with innovative solutions to
needs/problems and to market them. An entrepreneur’s creativity is
often the difference between success and failure in business.
c. Creativity often distinguishes high-growth or dynamic businesses
from ordinary, average firms.
d. To be creative, entrepreneurs need to keep their mind and eyes open to
their environment.
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Entrepreneurship Module
Activity 3: Generate a good business idea
 Entrepreneurship Module; learning unit 3; learning outcomes 3.1
 Objectives - By the end of the activity, participants will be able to:
a. Identify their own creative potential.
b. Apply techniques for developing their creative ability
c. Appreciate the importance of having a good business idea as a
prerequisite for successful business start-up and for an existing business.
d. Generate business ideas.
 Methodology: small group discussion, brainstorming, large group discussion
 Materials and Preparation: flipchart paper / board, markers, Worksheet 3.5:
The Nine Dots, Worksheet 3.6: Creative Squares, Worksheet 3.7: How Many
Triangles In A Triangle? Handout 3.3: What is a Business Idea? Handout 3.4: Why
Generate Business Ideas?, Handout 3.5: Why Should You Generate Business
Ideas? Handout 3.6: Sources of Business Ideas, Handout 3.7: Generating a
Business Idea, Trainer tool: 3.1: Identifying Business Ideas, Trainer tool 3.2:
Mass Media: Newspapers/Magazines
 Collect magazine pictures (optional).
RATIONALE:
A good business idea is essential for starting a successful venture and for staying
competitive afterwards. Good business ideas, however, do not usually just occur to an
entrepreneur. Rather, they are the result of hard work, effort and often creativity on the
part of the entrepreneur.
Steps:
1. Using Worksheet 3.5: The Nine Dots, introduce the concept of creativity and explain its
importance in generating a good business idea. Then do the nine-dot exercise. Draw
nine dots on the black board like shown on the top of Worksheet 3.5: The Nine Dots and
ask the participants to connect the 9 dots by means of 4 straight, continuous lines. The
pencil should not be lifted off the paper.Ask each individual to write down their solution.
Ask those who managed to do it to explain how before revealing the answer on the
bottom half of Worksheet 3.5: The Nine Dots. Explain that the solution requires going
outside the square of dots, and that we needed to stretch our imagination and mind
beyond the apparent problem in order to solve the problem.
2. Do the creative squares exercise to provide another example of creativity in action.
Show Worksheet 3.6: Creative Squares and ask each individual to count the total number
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of squares in the figure. Emphasize that a square is a rectangle with sides of equal
length. Discuss the answers and the process used in solving the puzzle. Highlight the
need for creativity. After the exercise, in order to illustrate how to come up with all the
squares there are, you may: a) number each square or box in the main diagram; (b)
combine various boxes to form squares, i.e. four equal-sided boxes; (c) add up the
possible combinations to arrive at a total of 30. As a follow-up activity, ask how many
rectangles (different lengths of the two sides) can be identified in the same overall
square (52).
3. Divide the class into small groups and have them count the number of triangles
portrayed in Worksheet 3.7: How Many Triangles In A Triangle?. The correct number is
47: ACE; BFD; AEB; AED, AEH, AFC, AFH; AFD, AFB, ACH; ACD, AGF, AGB, ABH, ABD, CEB,
CEF, CEH, CDH, CDF, CDB, CID, CIB, CBH, CFB, EDH; EBD, EDF, EJF; EJD, EFH; EFB; HBG;
HBI; HFG; HFJ; HDI; HDJ; HFB, HDB; HFD; FIB; FID; DGB; DGF; BJD; BJF


Ask participants if working in a group helped them to “see” things from different
angles?
Did any of the groups count the triangles originating on a single side, then multiply
that by two and then add one for the overall triangle?
4. Ask the participants to define a “business idea.” Jot down their answers on the board or
flipchart. Show Handout 3.3: What is a Business Idea? and discuss any aspects not
covered to arrive at a common understanding of the term.
5. Ask the participants to indicate why it is important to generate ideas. List responses on a
board or flipchart. Show Handout 3.4: Why Generate Business Ideas? and compare the
participants’ list with the points suggested on Handout 3.4: Why Generate Business
Ideas?
Discuss key issues including the fact that the development of business ideas is necessary
both before and after a business has been set up. Have participants read Handout 3.5:
Why Should You Generate Business Ideas?
6. Have participants give examples of people or firms in their community or elsewhere that
have come up with good business ideas, and explain their reasons for considering these
ideas as being good.
7. Ask participants to suggest ways in which business ideas can be generated. List these on
a board or flipchart. Show Handout 3.6: Sources of Business Ideas and compare it with
the participants’ responses. Lead a discussion on the main points, giving examples and
illustrations. Have participants read Handout 3.7: Generating a Business Idea and use it
for the class discussion.
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8. Use Handout 3.4: Why Generate Business Ideas? to remind participants of the concept
and principles of brainstorming. To give some practical experience of using the
technique, tell participants that they have just 5 minutes to come up with at least a
dozen uses for one of the following (choose one item only): old newspapers, bricks, old
clothes, boxes (made of cardboard or wood), poles/sticks, any other object of your
choosing.
9. Divide participants into small groups of 4 or 5 and tell them that they are going to do an
exercise to give them practice in using the concepts and techniques discussed so far. Use
Trainer tool 3.1: Identifying Business Ideas you may hold a competition to determine
the best business idea.
10. Bring sufficient newspapers by different publishers (outdated recent newspapers) to the
class. Let participants use the newspapers as they work in groups of three to four on the
Trainer tool 3.2: Mass Media: Newspapers/Magazines
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Worksheet 3.5 The Nine Dots
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Worksheet 3.6: Creative Squares
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Worksheet 3.7: How Many Triangles In A Triangle?
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Handout 3.3: What is a Business Idea?
 A business idea is the response of a person or persons, or an
organization to solving an identified problem or to meeting
perceived needs in the environment (markets, community,
etc.).
 Finding a good idea is the first step in transforming the
entrepreneur’s desire and creativity into a business
opportunity.
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Handout 3.4 Why Generate Business Ideas?
 You need a great idea to start a new business
 Business ideas need to respond to market needs
 Business ideas need to respond to changing consumer wants and needs
 Business ideas help entrepreneurs to stay ahead of the competition
 Business ideas use technology to do things better
 Business ideas are needed because the life cycles of products are limited
 Business ideas help to ensure that businesses operate effectively and
efficiently
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Handout 3.5 Why Should You Generate Business Ideas?
There are many reasons why entrepreneurs or would-be entrepreneurs need to generate
business ideas. Here are just a few:
• You need an idea – and a good one at that – for business. As indicated earlier, in
looking at the rationale for this topic, a good idea is essential for a successful business
venture – both when starting a business and to stay competitive afterwards.
• To respond to market needs. Markets are made up essentially of customers who have
needs and wants waiting to be satisfied. Those people or firms that are able to satisfy
these requirements are rewarded.
• Changing fashions and requirements provide opportunities for entrepreneurs to
respond to demand with new ideas, products and services.
• To stay ahead of the competition. Remember, if you do not come up with new ideas,
products and services, a competitor will. The challenge is to be different or better
than others.
• To exploit technology – do things better. Technology has become a major competitive
tool in today’s markets, with the rate of change forcing many firms to innovate. There
are several companies in the world, operating in the electronics and home appliances
industries, which come up with dozens of new products every month. For these and
many others in today’s global markets, generation of business ideas is crucial.
• Because of product life cycle. All products have a finite life. As the product life cycle chart
shows, even new products eventually become obsolete or outmoded. Thus, there is a
need to plan for new products and the growth of these. The firm’s prosperity and
growth depends on its ability to introduce new products and to manage their growth.
• To spread risk and allow for failure. Linked to the product life cycle concept is the fact
that over 80 per cent of new products fail. It is therefore necessary for firms to try to
spread their risk and allow for failures that may occur from time to time by constantly
generating new ideas.
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Handout 3.6 Sources of Business Ideas
 Hobbies/Personal Interests
 Personal Skills and Experience
 Franchises
 Mass Media (newspapers, magazines, TV, Internet)
 Business Exhibitions
 Surveys
 Customer Complaints
 Changes in Society
 Brainstorming
 Being Creative
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Handout 3.7: Generating a Business Idea
A good business idea is essential, or even a prerequisite, for a successful business venture.
However, good business ideas do not usually just occur to an entrepreneur. Rather, they are
the result of hard work and effort on the part of the entrepreneur in generating, identifying
and evaluating business ideas that can be developed into a business opportunity.
What is a Business Idea?
A business idea is the response of a person or an organization to solving an identified
problem or to meeting perceived needs in the local environment (markets, community,
etc.). Finding a good idea is the first step in transforming the entrepreneur’s desire and
creativity into a business opportunity.
Two things should however be noted:
(a) although it is a prerequisite, a business idea is only a tool;
(b) an idea by itself, however good, is not sufficient for success.
In other words, notwithstanding its importance, an idea is only a tool that needs to be
developed and transformed into a viable business opportunity. Out of 30 business ideas,
there may be only one good business opportunity.
What is Creativity?
Creativity is the ability to design, form, make or do something in a new or different way. The
ability to come up with creative solutions to needs/problems and to market them often
marks the difference between success and failure in business. It also distinguishes highgrowth or dynamic businesses from ordinary, average firms. Real, successful entrepreneurs
are creative in identifying a new product, service or business idea and turning it into a
business opportunity. To be creative, you need to keep your mind and eyes open as you
work through the sources of business ideas explained below, and apply the techniques.
Sources of Business Ideas
There are millions of entrepreneurs throughout the world and their testimonies suggest that
there are many potential sources of business ideas. Some of the more useful ones are
outlined below.
Hobbies/Interests
A hobby is a favorite leisure-time activity or occupation. Many people, in pursuit of their
hobbies or interests, have founded businesses. If, for example, you enjoy playing with
computers, cooking, music, traveling, sport or performing (to name but a few), you may be
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able to develop this hobby/interest into a business. To illustrate this, if you enjoy traveling,
performing and/or hospitality, you may consider going into tourism, which is one of the
biggest industries in the world.
Personal Skills and Experience
Over half of the ideas for successful businesses come from experiences in the work place.
For example, a mechanic with experience in working for a large garage who eventually sets
up his/her own car repair or used car business. Thus, the background of potential
entrepreneurs can play a crucial role in the decision to go into business as well as the type
of venture to be created. Your skills and experience are probably your most important
resource, not only in generating ideas but also in capitalizing on them to develop a good
business opportunity.
Franchises
A franchise is an arrangement whereby the manufacturer or sole distributor of a trademark,
product or service gives exclusive rights for local distribution to independent retailers in
return for their payment of royalties and their willingness to conform to standardized
operating procedures. Franchising may take several forms, but the ones of interest to
potential entrepreneurs are the types that offer a name, image and method of doing
business and operating procedures.
Mass Media
The mass media is a great source of information, ideas and often opportunity. Newspapers,
magazines, television, and the Internet are all examples of mass media. Take a careful look,
for example, at the commercial advertisements in a newspaper or magazine and you may
well find businesses for sale. One way to become an entrepreneur is to buy an existing
business.
Articles in the printed press or on the Internet or documentaries on television may report
on changes in fashions or specific consumer needs. For example, you may read or hear that
people are now increasingly interested in healthy eating or maintaining their physical
fitness.
You may also find advertisements calling for the provision of certain services based on skills,
for example accounting, catering or security. Or you may discover a new business concept,
but investors would be needed.
Exhibitions
Another way to find ideas for a business is to attend exhibitions and trade fairs. These are
usually advertised on the radio or in newspapers. By visiting such events regularly, you will
not only discover new products and services, but you will also meet sales representatives,
manufacturers, wholesalers, distributors and franchisers. These are often excellent sources
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of business ideas, information and help you in getting your business started. Some of them
may also be looking for someone just like you to be a business partner.
Surveys
The focal point for a new business idea should be the customer. The needs and wants of the
customer, which provide the rationale for a new product or service, can be ascertained
through a survey. Such a survey might be conducted informally or formally by talking to
people. Surveys may be conducted using a questionnaire, through interviews or through
observation.
You may start by talking to your family and friends to find out what product or service they
think is needed or wanted but is not available in the market. Or, for example, whether they
are dissatisfied with an existing product or service and what improvements or changes they
would like to see. You can then talk to people who are part of the distribution chain, that is
manufacturers, wholesalers, distributors, agents and retailers. It would be useful to prepare
a set of questions which might be put on a questionnaire or used in an interview. Given
their close contact with customers, these people have a good sense of what is required and
what will sell and what will not sell. Finally, you should talk to as many customers as
possible (both existing and potential customers). The more information you can get from
them, the better.
Besides talking to people, you could also get information through observation. For example,
in deciding whether to open a shop on a particular street, you can observe and count the
number of people going past on given days and compare these numbers to other sites. Or, if
you are interested in an area frequented by tourists, you might sell products from a craft
business. Or you may have noticed that there is no decent restaurant or hotel on a tourist
route or in a given town.
One way of ensuring that you are not negligent in identifying new business ideas is to be
alert at all times to customer needs. One entrepreneur apparently went round at every
cocktail party asking if anyone was using a product that did not adequately fulfil its intended
purpose. Another monitored the toys of a relative’s children looking for ideas for a market
niche.
Complaints
Complaints and frustrations on the part of customers have led to many a new product or
service. Whenever consumers or customers complain bitterly about a product or service, or
when you hear someone say “I wish there was .....” or “If only there were a product/service
that could ....”, you have the potential for a business idea. The idea could be to set up a rival
firm offering a better product or service, or it might be a new product or service which could
be sold to the firm in question and/or to others.
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Change
The world is constantly changing. Change can be a threat; however, most entrepreneurs
consider change as a challenge and opportunity to trigger new needs for products and
services. An innovative entrepreneur always responds to changes in a positive manner.
Brainstorming
Brainstorming is a technique for creative problem solving and for generating ideas. The
objective is to come up with as many ideas as possible.
Brainstorming usually starts with a key question or problem statement. Each idea leads to
one or more additional ideas. As a result, you will have in a good number of business ideas.
FOUR RULES FOR BRAINSTORMING:
 Don’t criticize or judge the ideas of others
 Freewheeling is encouraged – ideas that seem to be wild or crazy are welcome
 Quantity is desirable – the greater the number of ideas, the better
 Try to combine and improve upon the ideas of others
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Trainer tool 3.1: Identifying Business Ideas
Introduction
1. A business idea is a prerequisite for a successful business venture. Good business ideas,
however, do not usually just occur to an entrepreneur. Rather, they are the result of
effort and often creativity on the part of the entrepreneur.
2. Finding a good idea is the first step in transforming the entrepreneur’s desire and
creativity into a business opportunity.
3. There are numerous sources of good ideas. To be successful in generating or finding
one, however, the entrepreneur needs to keep his/her mind and eyes open and be alert
to opportunities.
4. An idea, however good, is only a tool. The idea needs to be developed and transformed
into a viable business opportunity.
Activity 1
Each learner should write down the skills, experience, training and background that they
have to start a business. Examples could include: catering, welding, computer programming,
secretarial experience, etc.
Activity 2
Divide the class into small groups based on the common hobbies/interests listed by the
group members. Each group of participants must now choose one idea they wish to
develop into a business. Group members are to negotiate this themselves. On a separate
sheet of paper, the group should describe their best business idea, including the product
or service in detail as well as who the likely customers might be. Each group would have 15
minutes for this task, after which each group will be given 5 minutes to present their idea
to the entire class.
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Trainer tool 3.2: Mass Media: Newspapers/Magazines
Your group should identify 7 business ideas from the articles as well as the commercial
opportunities section of a newspaper or magazine. The commercial section may contain
advertisements for businesses or machines on sale whilst articles may describe new types
of businesses or announce changes in fashion or consumer needs. Then, for each idea
chosen, give reasons as to why you are interested in it. You have 20 minutes for this task.
Business idea
1
2
3
4
5
6
7
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Reason(s) for interest
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Activity 4: Identifying and Assessing Business Opportunities
 Entrepreneurship Module; learning unit 3; learning outcomes 3.1
 Objectives - By the end of the activity, participants will be able to:
a. Appreciate the importance of business opportunities
b. Identify business opportunities
c. Assess business opportunities
 Methodology: small group discussion, brainstorming, large group discussion
 Materials and Preparation: flipchart paper / board, markers, Handout 3.8:
What is a Business Opportunity? Handout 3.9: Identifying and assessing business
opportunities, Handout 3.10: Identifying Business Opportunities
 Collect magazine pictures (optional). Transparency 1 & 2; Handout 1
RATIONALE:
The recognition of a business opportunity coupled with the ability to respond effectively is
the basis for starting and maintaining successful ventures. It is also a characteristic of
successful entrepreneurs. It involves not only generating ideas or identifying opportunities
but also screening and evaluating them to determine the most viable, attractive
propositions to be selected.
Steps:
1. Have the participants define the term business opportunity. Show Handout 3.8: What
is a Business Opportunity? to clarify. In the process, draw a distinction between an idea and
an opportunity.
2. Ask participants to list the factors involved in the identification and assessment of a
business opportunity. Compare the list with Handout 3.9: Identifying and assessing
business opportunities. Have participants read Handout 3.10: Identifying Business
Opportunities as the basis for the discussion.
3. Invite an entrepreneur to talk to the participants about how he or she found a business
idea/opportunity and transformed it into a successful venture.
4.
Ask someone from the local community or a regional/national organization
– such as an investment promotion center, an employers’ organization, the regional/local
economic development board, a business promotion agency, the university or polytechnic,
the business community or a consultancy firm – to come and talk about business
opportunities.
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5. Divide the participants into groups. Ask them to draw up a simple questionnaire to use
in interviewing an entrepreneur. Then, have each group visit and speak to a successful
entrepreneur. The interview should focus on




how the entrepreneur generated the business idea,
how he or she identified or recognized the business opportunity,
how he or she assessed the opportunity and
how he or she transformed it into a successful business.
During this interview, each group should also collect some basic background information
about the entrepreneur and his/her firm, such as the type of business, number of
employees, how long ago the business was established etc. Group members must negotiate
and arrange the whole process by themselves, although the facilitator may provide some
assistance where required. When they have completed the exercise, each group would
prepare a report and presents it to the entire class.
6.
Finally, draw some conclusions from the exercise and reinforce the key learning points:
A. The recognition of a business opportunity coupled with the ability to respond
effectively is the basis for starting and maintaining successful ventures. This involves
not only generating ideas or identifying opportunities, but also screening and
evaluating them to determine the most viable, attractive opportunity to be pursued.
B. A business opportunity may be defined as an attractive investment idea or
proposition that provides the possibility of a financial return for the person taking the
risk. Such opportunities are reactions to customer needs and lead to the development
of a product or service that creates added value for its buyers or end-users.
C. A good idea is not necessarily a good business opportunity. Consider, for example,
that over 80% of all new products fail. It is therefore important for all ideas and
opportunities to be well screened and assessed.
Identifying and assessing business opportunities is not an easy task. However, it is necessary
to minimize the risk of failure. It involves, in essence, determining potential risks against
potential rewards.
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Handout 3.8: What is a Business Opportunity?
A business opportunity may be defined simply as an attractive investment idea or
proposition that provides the possibility of a monetary return for the person taking the
risk.
Such opportunities are represented by customer requirements and lead to the provision of
a product or service which creates or adds value for the buyers or end-users.
Distinction between ideas and opportunities
 A good idea is not necessarily a good business opportunity. Consider, for
example, that over 80% of all new products fail.
 So, what turns an idea into a business opportunity?
 To put it simply in economic terms, Income must exceed Costs to earn a Profit.
 The characteristics of a good business opportunity need to be carefully
examined.
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Handout 3.9: Identifying and assessing business opportunities
a.
Not an easy task. Out of approximately 30 business ideas, there may only
be one good business opportunity
b.
A good business opportunity should take into account:
-
Industry and market, real demand for a product or service
-
Length of the ‘window of opportunity’
-
Personal goals and competencies of the entrepreneur
-
Management team (human resources)
-
Competition
-
Capital, technology and other resource requirements
-
Business environment (political, economic, legal, government regulations
etc.)
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Handout 3.10: Identifying Business Opportunities
Seeing, seeking and acting on opportunities is one of the characteristics of successful
entrepreneurs. It is also the basis for starting and maintaining successful ventures. It
involves not only generating ideas and recognizing opportunities, but also screening and
evaluating them to determine the most viable, attractive propositions to be pursued.
What is a business opportunity?
A business opportunity may be defined simply as an attractive idea or proposition that
provides the possibility of a return for the investor or the person taking the risk. Such
opportunities are determined by customer requirements and lead to the provision of a
product or service which creates or adds value for its buyers or end-users.
However, a good idea is not necessarily a good business opportunity. For example, you may
have invented a brilliant product from a technical point of view and yet the market may not
be ready for it. Or the idea may be sound, but the level of competition, and the resources
required may be such that it is not worth pursuing. Sometimes there may even be a ready
market for the idea, but the return on investment may not be acceptable. To underscore the
point further, consider the fact that over 80% of all new products fail. Surely, to the
inventors (and their backers) the idea seemed a good one, yet clearly it could not withstand
the test of the market.
What turns an idea into a business opportunity? A simplified answer is when income
exceeds costs and generates a profit. In practice, to be comprehensive, you need to
examine the factors listed below.
Characteristics of a good business opportunity
To be a good business opportunity, it must fulfill, or be capable of meeting, the following
criteria:

Real demand: responds to unsatisfied needs or requirements of customers
who have the ability to purchase and who are willing to buy

Return on investment, provides acceptable returns or rewards for the risk and
effort required

Be competitive: be equal to or better (from the viewpoint of the customer) than
other available products or services

Meet objectives: meet the goals and aspirations of the person or organization
taking the risk

Availability of resources and skills: the entrepreneur is able to obtain the
necessary resources.
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Assessing Business Opportunities
Ideas and opportunities need to be screened and assessed for viability once they have been
identified. This is not an easy task, and yet at the same time, the assessment of business
opportunities is extremely important. This assessment can make the difference between
success and failure, between making a fortune and losing everything. While the assessment
exercise does not guarantee success, it certainly helps in minimizing the risks and reduces
the odds for failure.
Identifying and assessing business opportunities involves, in essence, determining risks and
rewards/returns reflecting the following factors discussed below.
Industry and market
The key question to be answered is whether there is a market for the idea. A market in this
context consists of customers – potential or actual – who have needs and wants, and who
have the ability to purchase your intended product or service. There is also a need to
consider whether what the customer wants can be provided at the right price, in the right
place, and in a timely manner.
Another important consideration is the size of the market and the growth rate of the
market. The ideal situation is a market that is large and growing, where getting even a small
market share can represent a significant and increasing volume of sales.
For this assessment exercise, the would-be entrepreneur needs to gather information. If
some potential entrepreneurs are tempted to think that it involves too much hard work,
they might take some comfort from the saying that the data available about markets (size,
characteristics, competitors etc.) is often inversely related to the real potential of an
opportunity. In other words, if market data is readily available and if the data clearly shows
significant potential, then it is likely that a large number of competitors will enter the
market and the opportunity will not be as good. There are several sources of published
information (also called secondary information), including libraries, chambers of commerce,
investment promotion centers, government ministries, universities, foreign embassies, the
Internet, newspapers, and so on.
In addition to the above, there is often the need to collect information at the source (also
called primary research) by interviewing key people, such as customers and suppliers. In
that case, you will need to conduct survey research.
Length of the ‘window of opportunity'
Opportunities are said to have a ‘window of opportunity.’ That is, they do exist, but they do
not remain open forever. Markets grow at different rates over time, and as a market gets
bigger and more well-established, conditions for success are not as favorable. Timing is
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therefore important. The issue then is to determine the length of time the window will be
open, and whether the opportunity can be created or seized before the window closes.
Personal goals and competencies of the entrepreneur
An important question for anyone venturing into business is whether they want to
undertake that particular venture. Personal motivation is an essential attribute of a
successful entrepreneur. Unless a person really wants to do that kind of business, he or she
should not venture into it.
A related question is whether the potential entrepreneur has the necessary competencies
(including the knowledge, skills and abilities) for the requirements of the business and, if
not, whether other people could be brought in. Many small business owners/managers
have entered into business based on the strengths of their own skills and ability.
When the above aspects are combined, the issue then becomes one of whether there is a
good fit between the requirements of the business and what the entrepreneur wants or
desires. This is important, not only for success, but also for the entrepreneur’s happiness. As
the saying goes, “Success is getting what you want; happiness is wanting what you get.”
Management team
In many ventures, particularly those involving a large amount of capital, high risk,
sophisticated markets and high competition, the management team is usually the most
important dimension in determining the success of a business. The experience and skills
that the team possess in relation to the same or a similar industry often determine success
or failure of a new business. This explains why venture capitalists, or those people who
provide finance for businesses, put so much emphasis on the management factor. Investors
often say that they would rather have good management with an average
idea/product/service than a brilliant idea/product/service with bad management.
Competition
To be attractive, an opportunity must have a unique competitive advantage. For example, a
business may have a competitive advantage by lowering costs in terms of production and
marketing. Or better, a business may offer better quality. In addition, the availability of
entry barriers – which could take the form of high amounts of capital required, protection
such as patents or regulatory requirements, contractual advantage such as exclusive rights
to a market or with a supplier – can make the crucial difference between a ‘go’ and a ‘no go’
investment decision. If a business cannot keep most would-be competitors out of its
market, or if it faces existing entry barriers, then the opportunity may not be very attractive.
Capital, technology and other resource requirements
The availability and access to capital, technology and other resources such as skills
determine the extent to which certain opportunities can be pursued. As a general rule, the
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more difficult the resource requirements are to obtain, the more attractive the proposition,
provided of course that there is a market for the idea/product/ service. To give an example,
while marketing a breakthrough product based on a patented technology is no guarantee of
success, it certainly creates a formidable competitive advantage.
Business environment
The environment within which the business will operate has a great influence on the
attractiveness of any opportunity. By business environment, we are referring not only to the
physical environment, which is important and increasingly so, but also the political,
economic, geographical, legal and regulatory contexts. Political instability, for example,
renders business opportunities unattractive in many countries, especially for those ventures
requiring high investment with a long payback period. Similarly, inflation and exchange rate
fluctuations, or a weak judiciary system, are not a good environment to start a business,
even if the potential returns are high. The lack of infrastructure and services (such as roads,
electricity, water supply, telecommunications, transportation, and even schools and
hospitals) also affect the attractiveness of an opportunity in a given environment.
Business Plan
The process of examining the factors discussed above is often the initial step in developing a
business plan. Investors and lenders may require these issues to be considered and set out
in the form of a business plan.
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Activity 5: Develop and present a business idea proposal
 Entrepreneurship Module; learning unit 3; learning outcomes 3.2-3.3
 Objectives - By the end of the activity, participants will be able to:
a. Identify tips to develop a business idea proposal
b. Develop a business idea proposal
c. Present a business proposal
 Methodology: small group discussion, brainstorming, large group discussion
 Materials and Preparation: flipchart paper / board, markers, Handout 2.2:
identify business idea, Handout 2.3: my Interests, skills and experience, Handout
3.11 Business proposal, Worksheet 3.8 Business proposal template
 Collect magazine pictures (optional).
Steps:
1. Ask participants to think about their own business idea reviewing Handout 2.2:
Identify business idea and Handout 2.3: My Interests, skills and experience.
2. Ask participants to choose individually a business idea he /she can develop
3. Divide participants into groups of 4-6 each and ask them to share chosen business
ideas and ask them how they think these ideas can be successful and discuss on how
to write a business proposal.
4. Give participants the time to present their work
5. Tell participants to refer to Handout 3.11 Business proposal and start writing
individual business proposals using the template of business proposal shown in
Worksheet 3.8 Business proposal template
6. Ask participants to present their business proposals
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Handout 3.11: Business Proposal
A business proposal is created to offer a product or service to a buyer or client.
How to Write a Business Proposal
A business proposal is one of the most critical documents you need to learn how to write. It
is what spells the difference between success and failure.
The Basics of a Business Proposal
Before you even go and start writing that business proposal, you must first understand what
it is and learn the basics.
A business proposal is a written document that offers a particular product or service to a
potential buyer or client. There are generally two kinds of business proposals: solicited
business proposals (which are submitted in response to an advertisement published by the
buyer or client) and unsolicited proposals (submitted or given out to potential buyers or
clients even though they are not requesting for one).
3 Ps of a Winning Business Proposal
The secret behind writing a winning business proposal and one that will just be set aside is
the presence of what I call the 3 Ps: problem statement, proposed solution, and pricing
information.
Problem Statement
A successful business proposal must be one that is able to describe to the client what their
needs are in a plain and simple manner. This is extremely vital because how can you expect
the client to believe that you can help them solve their problems if you don’t even know are
these problems?
Here’s an example of a well-written problem statement of a business proposal:
With the presence of social media in today’s advancing world, Puffin Media Inc. hesitated to
make the leap from traditional marketing to social media marketing.
Their marketing tactics seem to be losing effectiveness and the company feels as if they are
missing out on a large segment of their market. In addition, their competition has began
acquiring the majority of the business in the market and have brought Puffin Media’s
growing revenues to a halt.
Proposed Solution
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The main objective of submitting a business proposal is to offer a solution to a problem
faced by a prospective client. This part should be as detailed as possible, and able to address
each and every need you have discovered.
Pricing Information
For many clients, the pricing information is what will make them decide whether they would
offer you the contract or not.
How to write this part greatly depends on the solution or solutions you included in the
previous segment. If the solution proposed will only entail a short period of time, a Fee
Summary will suffice. For longer projects, segment these payments to specific milestones in
a Fee Schedule list.
Things to Remember When Writing a Business Proposal
Now that you know the essentials of a winning business proposal, it’s time to go ahead and
start writing.The next part is to be able to find out what to put under the 3 Ps so that you
can develop a business proposal that gets their attention and awards you that contract.
Do Your Research
Not all clients and buyers will give you the explicit details of their wants and needs,
especially if you’re submitting an unsolicited business proposal. Extend your research to
include the competitors of your potential client, and their customers as well. This will
ensure that your business proposal will be as comprehensive and as detailed as possible.
Put Yourself in their Shoes
Another thing to remember when writing a business proposal is to always put yourself in
the shoes of your potential clients. Doing this will help you provide information on things
that they would most likely ask, such as “Why should we pay you this much amount for the
solutions you’re offering” and “How can these changes benefit me?”
Why You?
If you determined that a company or client has certain needs, chances are others would
have done the same. That means that there will be others that have submitted their
respective proposals to the company or client.
That being said, it is important to make sure to highlight your talents, experience and other
qualifications to convince the client why they should choose you or your company.
Writing that Business Proposal
When you got all of these, then you’re finally able to start writing your business proposal.
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In addition to the stored templates, you can create your own proposal templates through
these programs based on previous proposals you’ve created, making it even more
convenient for you and your business.
A Final Word…
Although business proposals present the same information and have the same layout, it’s
important to take time and make each one unique. Each project is different, even if it’s with
the same company. Remember, a business proposal must show how you or your company
can help a potential client.
What is in a proposal?
The thought of writing a proposal overwhelms many people, but the task does not have to
be daunting. Proposals are written when people need to ask permission to make a
purchase, do a project, or write a paper; the proposal is a formal way of putting forth an
idea and asking for action to be taken on that idea.
What are the main activities of a business?
Business activities include any activity that is engaged in for the primary purpose of making
a profit. Business activities can include things like operations, marketing, production and
administration.
Founder of Bidsketch: http://www.bidsketch.com
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Worksheet 3.8: Business proposal template
Title Page
INSTRUCTIONS: The title page should include your name, the name of your company, the name of the person to whom
you’re submitting your proposal, and the date submitted
Table of Contents
1.0 Executive Summary
INSTRUCTIONS: Summarize the your business and the products or services you provide. Take a look at your business
plan's executive summary, if you need a reminder of your USP or value proposition.
2.0 Problem Statement
INSTRUCTIONS: Use this section to very loosely discuss the problem/issue the client is facing Show the client that you
understand their needs and fully grasp the issue they are trying to resolve. Even if you're the one pitching for the business,
you still need to show you understand their needs.
3.0 Proposed Solution
INSTRUCTIONS: Use this section to clearly and concisely summarize your methodology, qualifications, and (if
necessary) your schedule and benchmarks. It will be helpful to write this section AFTER you have completed the sections
below.
3.1 Methodology
INSTRUCTIONS: Use this section to show your potential client how you intend to tackle their problem. Lay out the steps
you intend to follow in order to carry out your plan. Details are important here, as is clear, concise, jargon-free writing.
Don't overdo this section; after all, you want your reader to get a very clear sense of your plan.
3.2 Qualifications
INSTRUCTIONS: Brag a little in this section. You're trying to convince the potential client that you're the most qualified
person for the job. Mention any relevant education, industry-specific training, certifications, years of experience, or
successfully completed projects that relate to what you're offering.
3.3 Schedule and Benchmarks
INSTRUCTIONS: Use this topic to explain how long you expect the proposed project to take, or when deliverables will be
made. Make sure you're on the same page as the prospective client so that if you win their business, both you and the client
stay positive and satisfied throughout the process. Never underestimate how long it will take you to complete the project.
Note: Depending on the product or service offered, you may not need this section. The business proposal format is flexible,
so omit what doesn’t fit!
4.0 Pricing Estimate
INSTRUCTIONS: In this section, state the cost, payment, and schedule for delivery (again, only if necessary). Also, be
sure to include any legal requirements that need to be attended to. Remind your prospective client why you're the best
choice.
4.1 Cost
INSTRUCTIONS: Use this section to state your costs, including optional items, which will result in the overall cost of the
project.
4.2 Payment
INSTRUCTIONS: If you are asking for a one time payment, you may title the section “Fee Summary.” If you are asking
for ongoing payments, “Fee Schedule” might be more appropriate. If the client was the one to request the business
proposal, make sure to refer back to their request, to ensure you’re including everything they asked for.
4.3 Legal Matters
INSTRUCTIONS: Be sure to include any legal requirements that need to be attended to, such as permits, licensing, and so
on. If there’s a lot of legal information that needs handing for this project/service, you can make this a section in its own
right.
4.4 Benefits
INSTRUCTIONS: This is your final sell! Don’t be afraid to tell your prospective client what they have to gain by choosing
you to complete the project. Remind them why you’re the best choice, and all the ways they will benefit from choosing you
and your business as their preferred solution.
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Learning unit 4: Run a business
Session 4: Record Keeping and Financial Management
Note: Session 4 has 400 minutes which should be allocated
according to the objectives of the activities
 Key Topics 

Different types of basic records (receipts, cashbook, stock list…)

Use of cash book

Depreciation

Profit and loss

Balance Sheet

Business Plan
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Activity 1: Discuss reasons of keeping records
 Entrepreneurship Module; learning unit 4; learning outcomes 4.1
 Objectives - By the end of the activity, participants will be able to:
a. Discuss the necessity of record-keeping


Methodology: skit, large group discussion, brainstorming
Materials and Preparation: flipchart paper, markers, tape, props for skit, Trainer
Tool 4.1. Record keeping Skit, Handout 4.1: Importance of Record Keeping.
 The day before the session begins, ask for a few volunteers. Give them a copy of
the skit description. Have a few props on hand for the skit.
Steps:
1. Explain to participants that this next session is going to focus on record keeping. To
get us thinking about record keeping, we are going to observe a skit. Have the
volunteers perform the skit (no longer than 10 min) described in Trainer Tool 4.1.
Record keeping Skit. Debrief afterwards, asking:
Debriefing Questions
a. What happened in the skit? (The members of the cooperative did not keep records of their
buying and selling. One day there was no money in the cash box to buy the coffee beans and
packaging materials. Members thought that someone must be stealing.)
b. Why were the group members angry? (They thought that someone was stealing the money.)
c. Why did they blame the seller for keeping money? (They assumed the seller must not have
given all the money to the treasurer.)
d. How could this situation have been avoided? (Better record keeping – keeping track of how
many kilos of coffee are sold, recording when money is put in or taken out of the cash box,
etc.)
e. What type of records would be useful for this cooperative? (Receipt book, cash book,
inventory book...Without any sort of records, the group cannot keep track of money coming in
and money going out. The person selling the coffee should record daily sales. The person
buying the coffee and materials should keep track of how much they buy, store and use. The
treasurer should keep a record of when money comes in from sales and when it goes out for
raw coffee beans and other expenses.)
f. Has anyone had experience with records before? What type?
2. Ask participants to list reasons why record keeping is important.
3. Refer participants to Handout 4.1: Importance of Record Keeping and discuss.
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Trainer Tool 4.1. Record Keeping Skit
You all belong to a cooperative that processes and sells coffee. One person is primarily
responsible for buying the raw coffee beans from farmers as well as packaging material;
5 people focus on cleaning, drying hulling, roasting and packaging the beans; one is
responsible for selling the coffee to wholesalers and others in the market; and there is
one person who is the treasurer. Selling happens quickly at certain times of the morning
so the seller does not bother recording any sales. At the end of each day she just gives
the money made to the treasurer, who puts it into a cash box. The person who buys the
coffee beans and packaging materials gets cash from the treasurer as needed to make
the necessary purchases. The treasurer does not keep track of money coming in or going
out.
One day the buyer asked for cash to get some more beans and materials. There was no
money in the cash box however. A meeting was called to find out where the money had
gone. Group members started to blame the seller, saying she was keeping money from
the sales…
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Handout 4.1: Importance of Record Keeping
Why keep records?
1. To know how much money is received and spent and how it has been spent.
2. To calculate whether you are making a profit or loss.
3. To inform business decisions – how and when to buy materials and sell product.
4. To keep record of buying and selling on record.
5. Keeping track of money in and out will prevent misuse of money and will avoid mistrust
between group members.
What will others want to know about the finances of a business?
Various people will want to know about the financial conditions of a business. Banks and
people you have borrowed money from will want to know about the finances. Government
officials / tax collectors might want to know for taxing purposes. Suppliers might not let you
buy on credit if they don’t think you will be able to pay back.
Specific questions they might ask include:







How much do you own, how much do you owe, and how much are you worth?
What was your income last year?
How much of your sales are for cash and how much are for credit?
What has been your collection record?
What is your total “overhead” and what percentage of gross sales does it represent?
What expenses do you have?
What is the present value of buildings, equipment, vehicles, fixtures and other
accessories?
 What items of inventory are the best and worst sellers?
What kinds of records should a small business keep?
Payroll: The owner must know the amount paid to himself or herself and to employees.
Cash Balance: The owner must know how much cash is available at any given time to
determine if bills can be paid. Money comes into and goes out of the firm every day, but
without records entrepreneurs would not know what they can afford.
Accounts Receivable: Under certain conditions, the owner extends credit to some
customers. The money owed is called accounts receivable. They are important records.
Without them, how would the owner know when to bill and for how much? When to
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discontinue credit? When to make aggressive efforts to collect overdue bills? When to
charge interest, if any?
Accounts Payable: The amount of money owed by a business to others (such as suppliers) is
called accounts payable. These bills need to be paid on time.
Inventory Records: Even in a small retail business, an owner must have control of inventory.
What products are selling? What products aren’t moving? Is there a good supply on hand?
Government Requirements: The owner must file financial statements for tax purposes.
Taxes are calculated on the profit a business earns. Even a small retail business must file
certain reports.
Financial Statement: At least once a year the owner should have a comprehensive financial
statement on the business prepared. How well did the business do in terms of total sales?
What were its expenses? What are its profits before and after taxes? What can the owner
do to improve things next year? When borrowing money, entrepreneurs must present such
a statement to a banker; if they want to sell their business, they must show financial
statements to prospective buyers.
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 Activity 2: Perform basic Record-keeping
 Entrepreneurship Module; learning unit 4; learning outcomes 4.1
 Objectives - By the end of the activity, participants will be able to:
a. Prepare basic financial records
 Methodology: group work, case study
 Materials and Preparation: sets of Trainer Tool 4.2: Income and Expenses,
Handout 4.2: Basic Record-keeping
 Copy and cut up Trainer Tool 4.2: Income and Expenses, one set for each
small group.
Steps:
1. Explain that is helpful to know how to keep basic financial records so that you know
how much you actually have available to spend and how much you are paying for
things.
2. Divide participants into groups of 3 – 4 people each. Give each group a set of
Trainer Tool 4.2: Income and Expenses.
3. Ask groups to divide these into two piles, one for Money In and one for Money Out.
Review what they have in each pile and get them to move the items into the correct
piles if necessary. Ask them to add up the total amounts in each pile. They may
need support doing the calculations. Show them that Money In – Money Out =
Money In My Pocket.
4. For more advanced participants: Give them the additional loan scenarios provided in
Trainer Tool 4.2: Income and Expenses. Ask them to add a pile called Money Owed.
Show them how Money In My Pocket – Money Owed = Money I Actually Own.
5. Discuss how it could be helpful for them or their families to record their finances in
this way. Discussions could include: They could compare their income and expenses
each week and see how they could increase or decrease these; keep records for a
specific period, maybe weekly or monthly, to see what their household spends; and
calculate how much they have available to spend. For more advanced participants:
Ask participants to add up subcategories of food, transport and medicine under
Money Out, and to discuss why it could be useful to know what they spend in each of
these areas.
6. Invite participants to make notes or do their calculations in their Booklets in
Handout 4.2: Basic Record-keeping
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Trainer Tool 4.2: Income and Expenses
(Cut out and give a set to each group)
----------------------------------------------------------------------------------------Moto
100
----------------------------------------------------------------------------------------Moto
50
----------------------------------------------------------------------------------------Cell phone card
200
----------------------------------------------------------------------------------------Food
50
----------------------------------------------------------------------------------------Soda
50
----------------------------------------------------------------------------------------Medicine
100
----------------------------------------------------------------------------------------Vegetables
50
----------------------------------------------------------------------------------------Money from selling phone cards
400
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----------------------------------------------------------------------------------------Money from selling magazines
100
----------------------------------------------------------------------------------------Money from job fixing roads
200
----------------------------------------------------------------------------------------Money from sister in Nairobi
200
----------------------------------------------------------------------------------------Loan from friend
100
----------------------------------------------------------------------------------------Need to pay store for vegetables you bought yesterday
100
-----------------------------------------------------------------------------------------
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Handout 4.2: Basic Record-keeping
Money In – Money Out = Money In My Pocket
Money In My Pocket – Money Owed = Money I Actually Own
DATE
DESCRIPTION
ENTRY
( MONEY
IN)
EXPENSES BALANCE
( MONEY
OUT)
TOTAL
Entry (Money in) – Expenses (money out) = balance (money you have)
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 Activity 3: Budgeting
 Entrepreneurship Module; learning unit 4; learning outcomes 4.1
 Objectives - By the end of the activity, participants will be able to:
a. Explain the concept of basic budgeting
b. Prepare one’s basic budget
Methodology: group work, case study

 Materials and Preparation: sets of Trainer Tool 4.2: Income and Expenses,
Handout 4.3: Basic Budgeting
 Reuse or copy and cut up Trainer Tool 4.2: Income and Expenses, one set for
each small group.
Steps:
1. Explain that: A budget is a planning tool that helps you track the money you earn and
the money you spend. Budgeting is the process of planning what you spend so that it is
less than what you earn. The secret to financially fit budgeting is one simple rule: Keep
Money Out less than Money In.
2. Ask participants to plan for the next week of expenses using the list of their past income
and expenses as follows:
a. Use the same scenarios from Trainer Tool 4.2: Income and Expenses.
b. Divide participants into groups of 3 – 4 people each.
c. Participants can use Handout 4.3: Basic Budgeting in their Booklets to make notes
for this activity.
d. Ask them to decide how much they might earn in income the next week.
e. Ask them to decide how much they might spend in the next week.
f. Have a discussion on why they made their choices. Discuss how they could base this
on what they had earned or spent before.
g. Ask them to work out Money Expected In – Money Expected Out = Money You Expect
To Have for the next week.
For more advanced participants: Ask them how much they might loan or owe the
next week. Ask them to calculate Money Expected In – Money Expected Out –
Money Expect to Owe = Money You Expect To Have the next week. Explain how they
might not have to subtract the total amount owed in that week if it is only due later.
3. Ask participants to work out what they may earn or spend the following week (2 weeks
later).
a. Mention that this is when the heavy rains are expected and they will not make as
much money selling things or working. Mention that they will have to spend more
on transport as it will take longer to get to places.
b. After they have made their decisions, discuss whether they decreased their expected
income and increased the money that would be spent on transport.
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c. For more advanced participants: Tell them that the money that they have remaining
at the end of Week 1 can be added to the Money In pile in Week 2 as they will have
this to spend too.
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Handout 4.3: Basic Budgeting
A budget is a planning tool that helps you track the money you earn and the money you
spend. Budgeting is the process of planning what you spend so that it is less than what you
earn. The secret to financially fit budgeting is one simple rule: Keep Money Out less than
Money In.
Money Expected In – Money Expected Out = Money You Expect To Have
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4. Tell participants that they will be preparing their own personal budgets.
5. Ask them to turn to Handout 4.4: My Personal Budget in their Booklets.
6. Ask them to make a list of the things that they or their household might get money from the
next week under the heading Money In. Ask them to put how many Frw they expect for
each.
7. Ask them to make a list of the things they or their households might spend money on in the
next week under the Heading Money Out. Ask them to put how many Frw they expect for
each.
8. Ask them to calculate how much they would have remaining at the end of the week: Money
In – Money Out = Money Remaining.
9. Tell them that they have just prepared their first budget!
10. For advanced participants: Get them to do this for each week for a whole month.
Remember to include the amount that they have left at the end of each week in the Money
In for the following week. If they do not have enough to cover their expenses each week,
they need to work out where they will get the money from or how to decrease their
expenses.
11. Lead a discussion on how and why budgeting might be useful for the participants to do in
real life.
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Handout 4.4: My Personal Budget
Money In – Money Out = Money Remaining.
Money In:
Money Out:
Money remaining: _____________________
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Activity 4 : Discuss the use of Basic Record Forms
 Entrepreneurship Module; learning unit 4; learning outcome 4.1
 Objectives - By the end of the activity, participants will be able to:
a. Identify different types of basic record forms (receipts, cashbook, stock list….)
b. Discuss the use of basic record keeping forms


Methodology: large group discussion, group work
Materials and Preparation: flipchart paper, markers, tape, Sample 4.1: Basic
Record Keeping Samples
 Prepare copies of each record form for 7 stations around the room.
Steps:
1. Explain to participants that now we understand the importance of record keeping, we
are going to take a look at different types of records.
Divide participants into 7 groups. Tell them that there are 7 stations. At each station
is a form of record keeping. They will spend 5 - 10 minutes at each station. Their task
is to:
a. Identify the type of record at the station. What type of information does it
provide?
b. Determine what purpose it serves.
c. Think of examples of how this type of record keeping could be used.
2. Ring a bell or make a noise every 10 minutes when it is time to shift. Tell them next class
they will present the form they have ended up on.
--------------------------------------------------
3. When groups have visited all of the stations, ask each group to present the last form of
record keeping they have visited. Fill in any gaps and refer participants to: Sample 4.1:
Basic Record Keeping Samples. Discuss the examples given for Bazizane’s Bakery and
answer any further questions.
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Sample 4.1: Basic Record Keeping Samples
1. Supply Order Form: When you are buying supplies from someone you should fill out
a supply order form that indicates the product, price and quantity that you need.
Supply Order Form
Buyer’s address: …………………………………………………………..
Supply order No: …………………………………………………………….
Address of the supplier: ……………………………………………..
Date
No of
ordered
product
Type of
product
Quantity
Price for
1 unit
Total
Caution
Buyer’s signature: ............................. Supplier’s signature: .............................
Sample 4.1.1: Supply Order Form
Buyer’s address: Bazizane’s Bakery, Kabaya, Bwiza, 0788888888
Supply order No: 053/04/2014
Address of the supplier: Patrick’s Iduka, Gasabo, 077777777777
Date
No of
ordered
product
Type of
product
Quantity
Price for
1 unit
Total
Caution
05/04/2014
12
Flour
8 sacks of
50 kg each
20,000
RWF per
sack
160,000
RWF
32,000
RWF
Buyer’s signature:
Bazizane
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Supplier’s signature:
Patrick
Entrepreneurship Module
2. Receipt Form: used to record the receipt of an item or service (you give a receipt to
someone when they purchase goods or services from you or you receive a receipt when
you buy something from someone else)
Receipt Form
RECEIPT No……..
…………..FRW (in figures)
I receive from………………………………………………………………………………………………………….
Amount of money (in letters)………………………………………………………………………………….
………………………………………………………………………………………………………………………………..
Reason
………………………………………………………………………………………………………………………………………………………
Done at
……………………………………………………………Date……….……………………………………………………………………….
Cashier’s name, signature and stamp
Spender’s Signature
Sample 4.1.2: Receipt
Receipt No 5
32 000FRW (in figures)
I received from Bazizane
Amount of money (in letters): thirty-two thousand RWF
Reason: Caution of 20% of 160,000 RWF for 8 sacks of flour at 50 kg each
Done at Kigali on 5 April, 2014
Cashier’s name, signature and stamp
Patrick
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Spender’s Signature
Bazizane
Entrepreneurship Module
3. Consignment Form: This form recognizes that the supplies are received.
Consignment Form
Consignment No: ………………………………………………………………………………..
Name of product sender: ……………………………………………………………………
Place of origin: ………………………………………………………………………………………………..
Destination: …………………………………………………………………………………………………….
Type of products
Transported by: ………………………
Vehicle ……………… or other means
………………………………….
Date ………………………………………….
Name and signature of the
transporter……………………………..….
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Amount
Caution
I receive items in good condition:
Receiver:
………………………………..………
Date:
………………………………………….
Receiver’s signature: ………………….
Entrepreneurship Module
Sample 4.1.3: Consignment Form
Consignment No: 007/04/2014
Name of product sender: Patrick
Place of origin: Patrick’s Iduka
Destination: Bazizane’s Bakery
Type of products
Amount
160,000 RWF
Caution
32,000 RWF
8 sacks of flour of 50 kg each
Transported by: Nsengimana
I receive items in good condition:
Vehicle
Receiver: Bazizane
RAB 956 B
Date 07/04/2014
Date: 07/04/2014
Name and signature of the transporter:
Receiver’s signature:
Nsengimana
Bazizane
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4. Invoice: An invoice is used to request payment. You would send an invoice to a
customer who bought items on credit and owes you money.
Invoice Form
Invoice No: …………………………..consignment:
…………………………………………………………………………………………….
Date: …………………………………….No of VAT
………………………………………………………………………………………………….
Mr. /Madame: ………………………No of Register of commerce
…………………………………………………………………….
Amount to pay (in letter):
…………………………………………………………………………………………………………………………
Items
Quantity
Total
Total
Seller’s signature:
…………………………………………………………………………………………………………….
Paid cash/cheque number ……………………….at ……………………. /Other means of
payment……………
Remaining to be paid:
……………………………………………………………………………………………………………………………..
Date to pay the balance:
…………………………………………………………………………………………………………………………
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
Sample 4.1.4: Invoice Form
Invoice No: 75/04/2014
consignment: 007/04/2014
Date: 07/04/2014
No of VAT: 1222221
Mr. /Madame: Bazizane
No of Register of commerce: 05220
Amount to pay (in letter): 160,000 RWF
Items
sacks of flour
Quantity
8
Total
Unit Price
20,000 RWF
Total
160,000 RWF
160,000 RWF
Seller’s signature: Patrick
Paid cash/cheque number 32,000 RWF (Receipt No 5) /Other means of payment……………
Remaining to be paid: 128,000 RWF
Date to pay the balance: 09/04/2014
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
5. Stockbook (Inventory) Form: it is important to keep track of the items you have in store
and what goes in and comes out of that stock.
Stockbook Form
Product/ Item : ------------------------------------------------Unit of measurement: ----------------------------------------No
Date
Description Price per
unit
Entry in
stock
Going out
Stock
balance
Sample 4.1.5: Stock book Form
Product/ Item : Flour
Unit of measurement: Sacks (50kg/sack)
No
Date
Description Price per
unit
Entry in
stock
Going out
Stock
balance
01
06/04/2014 -
-
-
-
2
02
07/04/2014 flour from
Patrick’s
Iduka,
Invoice No
75/04/2014
20,000
RWF
8
-
10
03
09/04/2014 flour from
Patrick’s
Iduka,
Invoice No
75/04/2014
20,000
RWF
-
1
9
04
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
6. Accounts Receivable and Accounts Payable Forms: When the owner extends
credit to some customers, the money owed is called accounts receivable. The form lets
you know who owes you how much. The amount of money owed by a business to others
(such as suppliers) is called accounts payable. These bills need to be paid on time.
Debtor (Account Receivable) Form
Debtor ‘ s name : ………………………………………………………..
Date Description No of
Amount Amount Amount
When Debtor’s
of the
receipt
of debt paid
remaining to be or
transaction or other
paid
refunder’s
document
signature
Sample 4.1.6: Debtor (Account Receivable) Form for Bazizane’s Bakery
Debtor ‘ s name: Dusabe
Date
Description
of the
transaction
Bought 10
loaves of
05/04/2014 bread on
credit
No of
receipt or
other
document
Amount
of debt
Amount
paid
Amount
remaining
When
to be
paid
Debtor’s or
refunder’s
signature
Invoice No:
19/04/2014
3,500
0
3,500
09/04
/2014
Dusabe
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
Creditor (Account Payable) Form for Bazizane’s Bakery
Creditor’ s name : ___________________
Date Description No of
of the
receipt
transaction /Invoice
Credit
received
When to
pay
Amount
refunded
Amount
remaining
Sample 4.1.7: Creditor (Account Payable) Form for Bazizane’s Bakery
Creditor’ s name : Patrick
Date
Description No of
of the
receipt
transaction /Invoice
Bought 8
sacks of
05/04/2014 flour
Credit
When to
received pay
Invoice No: 160,000
75/04/2014
Akazi Kanoze/WDA Complementary Modules
Amount
refunded
09/04/2014 0
Amount
remaining
160,000
Entrepreneurship Module
7. Cash Book: used to record cash receipts and payments (money in and money out)
Entry (Money in) – Expenses (money out) = balance (money you have)
Cash Book Form
DATE
DESCRIPTION
TOTAL
Akazi Kanoze/WDA Complementary Modules
ENTRY
( MONEY
IN)
EXPENSES BALANCE
( MONEY
OUT)
Entrepreneurship Module
Sample 4.1.8: Cash Book Form for Bazizane’s Bakery
DATE
01/04/2014
02/04/2014
03/04/2014
04/04/2014
05/04/2014
05/04/2014
06/04/2014
07/04/2014
09/04/2014
09/04/2014
10/04/2014
DESCRIPTION
Sold 100 loaves of bread
Sold 75 loaves of bread
Bought 2 kg sugar
Paid caution for 8 sacks of flour
Bought eggs
Sold 40 cakes
Sold 50 loaves of bread
Withdrawal from Umurenge SACCO
Paid Patrick for 8 sacks flour
Sold 50 loaves of bread
TOTAL
Akazi Kanoze/WDA Complementary Modules
ENTRY
( MONEY
IN)
EXPENSES BALANCE
( MONEY
OUT)
35,000
26,250
1,400
32,000
2,100
4,000
14,000
160,000
160,000
14,000
100,000
135,000
161,250
159,850
127,850
125,750
129,750
143,750
303,750
143,750
157,750
157,750
Entrepreneurship Module
Activity 5: Fill up a Cash Book
 Entrepreneurship Module; learning unit 4; learning outcomes 4.2
 Objectives - By the end of the activity, participants will be able to:
a. Fill Properly record transactions in a sample cash book


Methodology: large group discussion, individual/partner work (cash book exercise)
Materials and Preparation: flipchart paper, markers, tape, Handout 4.5: Cash
Book Exercise, Trainer Tool 4.3: Cash Book Exercise (Answers)
Steps:
1. Explain to participants that since cash books provide a written record for money
coming in and money going out of a business, we are going to practice filling one in.
Money comes into a business primarily by selling goods or services, and money goes
out of a business to pay for goods, raw materials, labor, rent, electricity and other
business expenses.
Remind participants that financial records can help entrepreneurs to:
- keep control of cash
- know how well the business is doing
- show others, such as the banks, how well the business is doing
- plan for the future.
2. Have participants turn to Handout 4.5: Cash Book Exercise. Working in pairs, have
them fill out the cash book form given the information provided.
3. Review answers together and answer any questions.
Suggest to participants that as a homework assignment they create their own
cashbook and fill in a few entries for this month.
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
Handout 4.5: Cash Book Exercise
John has owned a carpentry shop for the past three years and now wants to improve his
production. He was able to get a bank loan on January 23. Below is a list of transactions for
his business between January 23 and February 4. If John had 75,000 cash in the business on
January 23, how much cash will he have on February 4?
Date
23/01
23/01
24/01
24/01
24/01
25/01
25/01
28/01
28/01
28/01
31/01
31/01
2/02
2/02
3/02
3/02
4/02
4/02
4/02
Transaction
Balance as of Jan 23
Receives cash loan
Paid rent
Purchased wood
planks
Sold 2 chairs
Purchased 2 kg.
nails
Sold 2 small tables
Sold 4 chairs
Paid assistant
Paid health
insurance
Sold Repaired table
Paid carpentry
factory for shaping
pieces of wood
Purchased air time
Sold large table
Brought cash to
bank
Sold 2 chairs
Bought glue
Sold 1 small table
Ending Balance
Akazi Kanoze/WDA Complementary Modules
(Credit)
Money In
(+)
(Debit)
Money
Out (-)
Current
Balance
75,000
100,000
30,000
50,000
14,000
4,000
30,000
28,000
10,000
3,000
2,000
3,000
1,000
20,000
75% of
total
14,000
5,000
15,000
Entrepreneurship Module
Trainer Tool 4.3: Cash Book Exercise (Answers)
Date
23/01
23/01
24/01
24/01
24/01
25/01
25/01
28/01
28/01
28/01
31/01
31/01
2/02
2/02
3/02
3/02
4/02
4/02
4/02
Transaction
Balance as of Jan 23
Receives cash loan
Paid rent
Purchased wood
planks
Sold 2 chairs
Purchased 2 kg.
nails
Sold 2 small tables
Sold 4 chairs
Paid assistant
Paid health
insurance
Sold Repaired table
Paid carpentry
factory for shaping
pieces of wood
Purchased air time
Sold large table
Brought cash to
bank
Sold 2 chairs
Bought glue
Sold 1 small table
Ending Balance
(Credit)
Money In
(+)
100,000
30,000
50,000
100,000
14,000
4,000
14,000
30,000
28,000
10,000
3,000
30,000
28,000
2,000
3,000
2,000
1,000
20,000
75% of total
Akazi Kanoze/WDA Complementary Modules
14,000
5,000
15,000
(Debit)
Money Out
(-)
30,000
50,000
75,000
175,000
145,000
95,000
4,000
109,000
105,000
10,000
3,000
135,000
163,000
153,000
150,000
3,000
152,000
149,000
1,000
20,000
126,000
14,000
5,000
15,000
Current
Balance
148,000
168,000
42,000
56,000
51,000
66,000
66,000
Entrepreneurship Module
Activity 6: Discuss Profit and Loss Statement
 Entrepreneurship Module; learning unit 4; learning outcomes 4.2
 Objectives - By the end of the activity, participants will be able to:
a. Identify the elements and importance of a profit and loss statement
b. Discuss profit and loss statement
 Time Required:
 Methodology: large group discussion, small group work
 Materials and Preparation: flipchart paper, markers, tape, Handout 4.6:
Profit and
Loss Statement, Handout 4.7: Profit and Loss Statement for Bread Baking
Cooperative, Handout 4.8: Profit and Loss Statement for Bread Baking Cooperative
(answers)
For Month Ending 31 July 2011
 Write the Information for Bazizane’s Profit & Loss Statement for July so all can see.
Steps:
1. Explain to participants that financial statements help business owners assess their
performance. One such statement is the profits and loss statement, or income
statement. The profit and loss statement can be calculated for a given time period –
one month, three months or a year for example. Ask participants if they have
created such a statement or have heard of it.
2. Divide participants into small groups. Have them turn to Handout 4.6: Profit and
Loss Statement. Ask them to go through it.
3. Discuss the Profit and Loss Statement for the ABC Flower Shop. Ask if all the
categories are familiar to them. Ask them what type of financial records will help
them create a Profit and Loss Statement (stock/inventory records, cash book,
accounts receivable and payable, etc.). Ask why this profit and loss statement is
important (tells you if you are operating at a profit or loss, can be used to obtain
loans from banks, etc.)
--------------------------------------------------
4. Tell participants that in pairs they will now create a profit and loss statement for the
bread baking cooperative for the month of July. Use the following information (write
it so all can see) and Handout 4.7: Profit and Loss Statement for Bread Baking
Cooperative.
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
Information for Bread Baking Cooperative’s July Profit & Loss Statement
Cash Sales: 710,000
Credit Sales: 100,000
Beginning Inventory: 200,000 Rwf (flour)
Purchases: 451,233 (raw materials)
Ending Inventory: 100,000
Expenses - salaries: 60,000; loan repayment: 22,917; depreciation*: 6,250; power:
15,000; water: 5,000; telephone: 3,000; rent: 30,000, monthly tax: 63,000
Tax rate: 20%
* Explain the concept of depreciation if learners are not familiar with it. Equipment
loses its worth as time goes on. Parts wear out or need replacing, etc. There are
different percentage rates of depreciation for different types of items, depending on
their life span.
Investment Item
Buildings
Basic Equipment
Computer
Lifespan
20
4
2
Depreciation (in %)
5
25
50
For example, a computer purchased at 560 000 Rwf would depreciate each year by
560 000 X .5 = 280 000 Rwf.
5. After 30 minutes, ask pairs to share their results with one another. Did they end up
with the same net profit after tax?
Go over the problem together if participants are having difficulties with the
calculations.
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
Handout 4.6: Profit and Loss Statement
A profit and loss statement helps to determine whether a business is operating at a profit or
a loss for a given time period of one month to one year. There are five specific steps to
calculating the profit and loss statements:
1. Sales: including sales for cash and credit
2. Cost of Goods Sold: this is the price paid by the business for merchandise sold; it can be
computed by adding the value of the goods purchased during the period to the initial
stock, and then subtracting the value of the stock on hand at the end of the period.
3. Gross Profit: calculated by subtracting the cost of goods sold from sales
4. Expenses: this includes labor costs and other costs of operating the business
5. Net Profit: amount remaining when the expenses are deducted from the gross profit.
This figure will indicate whether you are operating at a profit or a loss.
Here is an example of a profit and loss statement for the ABC FLOWER SHOP for the month
of July. The net profit for July is 7,000. Remember that if the business is registered, the
owner will have to pay taxes on the profit.
Profit and Loss Statement for ABC Flower Shop for Month Ending July 31, 20___
Sales
Cash Sales
Credit Sales
Total Sales
60,000
20,000
Beginning Inventory
Purchases
Cost of Goods for
Sale
Less Ending Inventory
Cost of Goods Sold
18,000
50,000
68,000
80,000
Cost of Goods Sold
8,000
60,000
Gross Profit
20,000
Expenses
Salaries/Wages
Electricity
Advertising
Other Expenses
Total Expenses
Net Profit Before Taxes
Estimated Tax
Estimated Net Profit
After Tax
Akazi Kanoze/WDA Complementary Modules
8 000
2 000
1 500
1 500
13,000
7,000
2,000
5,000
Entrepreneurship Module
Handout 4.7: Profit and Loss Statement for Bread Baking
Cooperative
For Month Ending 31 July 2011
Sales
Cash Sales
Credit Sales
Total Sales
Cost of Goods Sold
Beginning Inventory
+ Purchases
= Cost of Goods for Sale
- Less Ending Inventory
= Cost of Goods Sold
Gross Profit
Expenses
Salaries/Wages
Monthly sector tax
Rent
Telephone
Water
Power (firewood)
Depreciation of oven
Loan payment
Total Expenses
Net Profit Before
Taxes
Estimated Tax (20%)
Estimated Net Profit
After Tax
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
Handout 4.8: Profit and Loss Statement for Bread Baking
Cooperative (answers)
For Month Ending 31 July 2011
Sales
Cash Sales
Credit Sales
Total Sales
710,000
100,000
Beginning Inventory
+ Purchases
= Cost of Goods for Sale
- Less Ending Inventory
= Cost of Goods Sold
200,000
451,233
651,233
100,000
810,000
Cost of Goods Sold
551,233
Gross Profit
258,767
Expenses
Salaries/Wages
Monthly sector tax
Rent
Telephone
Water
Power (firewood)
Depreciation of oven
Loan payment
Total Expenses
Net Profit Before
Taxes
Estimated Tax (20%)
Estimated Net Profit
After Tax
Akazi Kanoze/WDA Complementary Modules
60,000
10,000
30,000
3,000
5,000
15,000
6,250
22,917
152,167
106,600
21,320
85,280
Entrepreneurship Module
Activity 7: Discuss elements and use of The Balance Sheet
 Entrepreneurship Module; learning unit 4; learning outcomes 4.2
 Objectives - By the end of the activity, participants will be able to:
a. Define assets, liability and net worth of a balance sheet
b. Discuss d the importance and use of the balance sheet
 Time Required:


Methodology: large group discussion, pair work/group activity
Materials and Preparation: flipchart paper, markers, tape, Handout 4.9: Balance
Sheet of Arts and Crafts Cooperative,
Steps:
1. Explain to participants that another financial statement that helps business owners
assess their performance is the balance sheet. Ask participants if they have created
such a statement or have heard of it.
Explain that a profit and loss account records the flows of money coming into and out
of the business over a period of time. This is a useful document for a business to see
how it is performing.
A balance sheet is quite different. A balance sheet records the assets and liabilities
of a business at a particular point in time.
2. Explain that there are three key pieces of a balance sheet: assets, liabilities and net
worth. Assets include everything a business owns, such as cash, equipment,
buildings and inventory. Liabilities include anything that the business owes such as
loans, credit notes, taxes and mortgages. One’s net worth is what would remain if
you closed your business and paid back what you owed – the owner’s capital and the
reinvested profits would make up your net worth.
Assets
land, building and equipment
accounts receivable (customers’ debts)
stocks (items to be sold, raw material…)
cash (in bank, in cash box)
Liabilities
own money (owner’s capital)
money given by friends/family/sponsor
bank loans
accounts payable (credit from supplier or
others)
3. Go through an example together, from an arts and crafts cooperative in Handout
4.9.: Balance sheet of Arts and Craft Cooperative
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
Handout 4.9: Balance Sheet of Arts and Crafts Cooperative:
Assets
Liabilities
Building
8 000 Rwf
Owners’ Capital
50 000 Rwf
Equipment
50 000 Rwf
Money from Sponsors
30 000 Rwf
Stocks (art supplies &
items)
80 000 Rwf
Bank Loan
100 000 Rwf
Accounts Receivable
15 000 Rwf
Accounts Payable (credits
from suppliers)
20 000 Rwf
Money in Bank
50 000 Rwf
Cash in Cash Box
10 000 Rwf
Reinvested Profit
13 000 Rwf
Total Assets: 213 000 Rwf
Total Liabilities: 213 000 Rwf
The balance sheet is a financial statement which indicates what you own and what
you owe on any given day in the life of a business. The financial figures on the
balance sheet change from day to day because money is always coming in and going
out of the business. A primary reason for preparing a balance sheet is to determine if
the business is making a profit or a loss.
The formula used to prepare a balance sheet is: Assets = Liabilities + Net Worth
Assets: These include everything a business owns, such as cash, equipment,
buildings and inventory.
Liabilities: These include anything that the business owes. Liabilities might include
loans, credit notes, taxes and mortgages.
Net Worth: This is what is actually owned by the business after subtracting liabilities.
It represents the initial investment of the owners and retained earnings.
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
Activity 8: Make a Business Plan
 Entrepreneurship Module; learning unit 3, 4; learning outcomes 4.3
 Objectives - By the end of the activity, participants will be able to:
a. Identify elements of a business plan
b. Make their own business plans
 Time Required:


Methodology: large group discussion, individual
Materials and Preparation: flipchart paper, markers, tape,
Handout 4.10: Business Plan Template, Handout 4.11: Marketing plan
Steps:
1. Explain to participants that now it is time to put together their own business plan!
Emphasize that many of the parts have already been written through the work they
have done in the previous sessions.
2. Tell participants they will use the business plan template in Handout 4.10: Business
Plan Template in their Booklets to write their own plans. They have already done a
lot of the work in the previous sessions so should refer back to those activities for
the information (for example, the marketing plan information will come from
Handout 4.11: Marketing Plan).
Read through each section with them and give them time to fill out the information.
Remind them to go back to previous sessions for some of the information (and to
revise it as necessary). If learners are moving at different rates, the quicker ones can
move on to the next section. Move around the room to check everybody’s work and
answer any questions.
--------------------------------------------------
3. Have participants share their business plan with a partner. They should exchange
feedback on ways to improve the plan. Then they can revise their plans.
4. Congratulate everybody for writing their very own business plan!
5. Have participants to take the self-assessment again to see how much they have
learned since the beginning of the module.
6. Give learners the end of module assessment found at the end of the module.
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
Handout 4.10: Business Plan Template
Name of Business:
Entrepreneur’s Name:
Address:
Mobile Phone:
Date:
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
1. Business Information:
Name of business: ________________________________________
Starting date: __________________________________
Business location:
District __________________________________
Sector __________________________________
Cell __________________________________
Village __________________________________
2. Entrepreneur’s Information:
Name: __________________________________
District __________________________________
Sector __________________________________
Cell __________________________________
Village __________________________________
3. Description of the business idea and market:
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
Handout 4.11: Marketing plan
1. Product/Service Description:
2. Customer Description (Who will buy the product/service? How many customers might be
served in a day/week/month?):
3. Demand or Need for the Product/Service:
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
4. Competition (Who are the competitors? How does the product / service compare in quality
and price to those of competitors? What is my competitive edge?):
5. Current Production of Product by Competitors (Is it possible to estimate how much
of the product is currently being sold? What share or percent of the market can be captured by
my business?):
6. Price (What is the selling price of the product?
product/service?):
Akazi Kanoze/WDA Complementary Modules
At what price will my business sell the
Entrepreneurship Module
7. Business Location (Where will the business be located? Is the location accessible to
clients?):
8. Promotion / Advertisement (How will the product/service be promoted or advertised):
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
Start-Up Costs:
N
o
Investment Capital (land, equipment, building…)
Working capital (labor cost, transport cost,
supplies, … for first month of operation)
Total
Akazi Kanoze/WDA Complementary Modules
Quantity
Unit price
Total
Entrepreneurship Module
Sources of Capital:
Source
Description & Conditions
Amount
Equity capital (own
savings, family
contribution, partner)
Equity Total:
Loan (Family , friends,
money lender, credit
cooperative,
government scheme,
bank loan)
Loan Total:
Equity & Loan Total:
Akazi Kanoze/WDA Complementary Modules
Entrepreneurship Module
SALES PLAN:
No Product or
Services
Unit
Price
Quantity
(1 mo)
Turnover Quantity
(1 mo)
(3 mo)
Turnover Quantity
(3 mo)
(6 mo)
Turnover = unit price x quantity
One year turnover(multiply one month turnover x 12):
Cash in from other operations:
ESTIMATED ANNUAL COST:
Category
Amount
Staff Costs:
Material Costs:
Other Costs:
Taxes
Rent
Telephone
Water
Power
Total Operating Costs:
Capital Costs
loan (plus interest)
depreciation
Total Capital Costs:
TOTAL COSTS (Operating + Capital)
Akazi Kanoze/WDA Complementary Modules
Turnover
(6 mo)
Entrepreneurship Module
ESTIMATED PROFIT MARGIN:
Cash In and Cash Out
A. Cash in
Cash in from sales
Inventory (in store)
Others
Total A
B. Cash out
Operating cost
Taxes
Depreciation
Loan and interest owed
Other cost
Total B
Profit estimation : A - B
Akazi Kanoze/WDA Complementary Modules
Amount
Entrepreneurship Module
OPENING BALANCE SHEET:
Balance Sheet Date:____________ 20___
Assets
Items
Liabilities
Amount
Total Assets:
Akazi Kanoze/WDA Complementary Modules
Items
Total Liabilities:
Amount
Entrepreneurship Module
Trainer’s Manual
Learning unit 4: Run a business
Session5: Financial Fitness
Note: Session 5 has 200 minutes which should be allocated according to the
objectives of the activities
 Key Topics 
 Needing Money
- We have different needs for money that change at different stages of life.
 Accessing Money
- We need to plan how to get money for the things that we need.
- We can get money by borrowing, saving and working to earn money.
 Becoming Financially Fit
- We need to develop good habits to stay financially fit.
- It is sometimes hard to tell whether people are financially fit or not.
 Decreasing Spending
- Rich and poor people can waste money if they are not careful.
- You can save money by practicing the Four Habits of Saving Money:
Reduce, Reuse, Repair, Recycle.
-
Akazi Kanoze/WDA Complementary Modules
Page 143
Entrepreneurship Module
Trainer’s Manual
Activity 1: Describe Needs for Money
 Entrepreneurship Module; learning unit 4; learning outcomes 4.4
 Objectives: By the end of the activity, participants will be able to:
c. Identify the things they need money for
d. Describe how the things they need money for change as their life stages change
 Methodology: small group discussion, brainstorming, large group discussion
 Materials and Preparation: flipchart paper / board, markers, Handout 5.1: What I Need Money For,
Handout 5.2: Different Stages of Life
 Collect magazine pictures (optional).
Steps:
1.Ask participants to think of things that they personally need money for. Tell them to
record their answers in their Booklets in Handout 5.1: : What I Need Money For.
3. Write the following stages of life on the board: Primary school; High school; Looking after
children and a family; Running a business in town; When they are much older.
Ask participants what different things are that they may need money for at each
stage of life. Tell them to record their answers in their Booklets in 5.2 : Different
Stages of Life.
Responses could include:
 Primary school: Mattress, transport
home, bicycles, toys, food
 High school: Music, school books, soccer
ball, soap, blankets
 Looking after children and a family:
School fees, medicine, furniture, food,
radio, cell phone minutes, clothes,
newspaper
 Running a business: Transport, office
rental, products to sell, advertising poster
 When they are much older: Medicines,
travel expenses to visit families.
Trainer Tip 
Optional: You could bring in
magazine pictures of
different items that
participants could need
money for over the course of
their lives and do the activity
using these.
4. Ask the participants to discuss why the money they need at each stage of life is different.
Make sure that participants realize that they will have different needs as they grow older,
with the things they need often becoming more expensive, especially as they start to look
after themselves and others and have less people looking after them.
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handout 5.1. What I need money for
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Handout 5.2: Different Stages of Life
Primary school
High school
Looking after children and a family
Running a business in Kigali
Getting much older
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 Activity 2: Plan for ways to access money
 Entrepreneurship Module; learning unit 4; learning outcomes 4.4
 Objectives - By the end of the activity, participants will be able to:

a. Make plans on how to get money for the things they need.
b. Distinguish between the various ways of accessing money, including borrowing, saving and working to
earn money.
Methodology: small group discussion, brainstorming, prioritizing, role-playing (optional), large group
discussion
 Materials and Preparation: flipchart paper / board, markers, sets of 15 blank pieces of paper per
group, sets of 4 blank pieces of paper per group, Handout 5.3 Ways to Get Money, Handout 5.4:
Financially Fit Person
 Prepare blank pieces of paper, approximately 15 per group (A4 paper divided into quarters).
 Prepare blank pieces of paper, 4 per group (A4 paper divided into quarters).
Steps:
1. Divide participants into groups of 4 – 5 people each.
2. Give approximately 15 small blank pieces of paper to each group and ask
participants to draw pictures of things they might need money for on each piece of
paper, one item per paper.
3. Write these two categories on the board:
 Money, You Have Now
 Need to Save for or Borrow
Ask participants to organize the things they need money for into two groups. One
group is for the items that they could pay for right now as they have the money in
their pocket, or somewhere safe, or are about to earn money to pay for it. The other
group is for the items that they need to save or borrow for when they do not have
money for it immediately. The items that they put into the “Money You Have Now”
group should be the items that do not cost as much and which people generally have
cash for immediately.
4. Explain that we often need something now that we do not have enough money to
pay for. Ask participants what our options are in this situation. Ask for real life
examples of how people get money to pay for something that they cannot afford
immediately, starting with examples of Saving, then of Working, then Borrowing.
This allows participants to visualize a tangible example of each of the ways to access
money. Tell them to record their examples in their Booklets in section Handout 5.3
Ways to Get Money.
Responses could include:
- Saving: Save in a bank; Save under your mattress; Save in a community savings
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group
- Working: Work in a job that pays a salary or wage; Earn money from part time
work; Start a business
- Borrowing: Borrow from family members; Take out a bank loan; Borrow from a
community savings group
- Other ways to access money: Buy on credit; Apply for a grant or scholarship;
Receive gifts of money.
5. Give 4 blank pieces of paper to each group and ask participants to write the
following words on the paper, one word per paper:
Ask
each
group to
decide which is the best way to access money, and to organize the four words in
order of the best to the worst way of accessing money. This may take some
discussion and debate! If they had thought of other ways to access money they can
write these on other pieces of paper and add them to their discussions (do not
include examples of illegal ways to get money).
borrow
save
work
other
Note: There are no right and wrong answers, and the learning is not about getting
the cards into a “right” order. What is most important is that participants realize
that there are advantages and disadvantages of each way of accessing money, and
that these depend on how much is needed, how soon it is needed, what it is needed
for, etc. Have a discussion on this.
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Handout 5.3 Ways to Get Money




Save until we have enough money
Borrow money to pay for it
Buy it on credit (get it now but pay for it later)
Work to earn the money
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Handout 5.4: Financially Fit Person
Physical Fitness
Financial Fitness
Habits of a physically unfit person:
Habits of a financially unfit person:
1) Eats only unhealthy food for every meal.
1) Spends money on unnecessary things. ___
2) __________________________________ 2) __________________________________
3) __________________________________ 3) __________________________________
4) __________________________________ 4) __________________________________
5) __________________________________ 5) __________________________________
6) __________________________________ 6) __________________________________
Habits of a physically fit person:
Habits of a financially fit person:
1) Eats fruits and vegetables every day. ___
1) Saves a set amount of money every week. _
2) __________________________________ 2) ___________________________________
3) __________________________________ 3) ___________________________________
4) __________________________________ 4) ___________________________________
5) __________________________________ 5) ___________________________________
6) __________________________________ 6) ___________________________________
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 Activity 3: Describe ways of Decreasing Spending
 Entrepreneurship Module; learning unit 4; learning outcomes 4.3
 Objectives - By the end of the activity, participants will be able to:
a. Describe ways that they waste money
b. Describe ways to cut costs through reducing, recycling, repairing, and reusing
Methodology: large group discussion, drawing or singing (optional)

 Materials and Preparation: Trainer Tool 5.1: Spending Money’ Scenarios,
Handout 5.5: Ways We Waste Money, Handout 5.6: Four Habits to Cut
Costs flipchart paper / board, markers, materials for poster making
 Copy and cut out one copy of Trainer Tool 5.1: Spending Money Scenarios.
 Collect examples of items that can be repaired, reduced (used less of), recycled,
and reused to the classroom.
 Organize materials needed for poster-making (paper, markers, things to stick on
posters, pairs of scissors).
Steps:
1. Tell participants: “It’s easy to think that only rich people waste money. After all, rich
people have lots of money, so it’s easier for them to spend it on things that they do not
really need. But is this really true? Can we tell whether a person is wise or wasteful
with their money just by finding out how poor or how rich they are? Or is being
wasteful an attitude toward money that anyone can have, no matter how rich or poor
they are? Let’s find out.”
2. Ask participants to select one of the Trainer Tool 5.1: Spending Money’ Scenarios from
your hand and read it to the class. After each one, ask how many participants know
people who have spent money in this way. Ask participants if they think these are good
ways to spend money or a waste of money? Why or why not?
- Paying for transport on a moto when you could have walked.
- Buying a soda when you had enough water to drink.
- Buying a new pair of shoes when your old shoes are good enough.
- Buying new clothes when you have enough old clothes.
- Buying expensive clothes to be fashionable and popular.
- Spending all your money on cell phone airtime to talk with friends.
- Paying for an expensive haircut, when a cheaper haircut is as good.
Note: There are no right or wrong answers. It is very important that they are
encouraged to realize that no one is perfect, and that it is okay to say that we have
all been wasteful in some way. The key is to realize that we need to know when we
have been wasteful to know how we can then improve! The learning comes from
the debates and discussions that the participants have in determining whether the
items listed are wasteful and which are the most wasteful.
3. Ask participants to give other examples of ways in which they waste money and to write
or draw these in their Booklets in Handout 5.5: Ways We Waste Money.
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Responses may include:
- Buying fruit and vegetables at a store close by when a store further away may
have them at a cheaper price
- Buying expensive gifts for people which they do not need
- Spending money on cakes that they do not need
4. Explain that one of the ways almost everyone wastes money is by not practicing the
Four Habits to Cut Costs. Write the following words on the board: Reduce, Reuse,
Repair, Recycle. Tell participants to turn to Handout 5.6: Four Habits to Cut Costs in
their handbooks.
Ask participants to think of examples of each of the money saving habits and to
write these or draw pictures of them in their Booklets in Handout 5.7: My Plan to
Cut Costs:
 Reduce (Reducing the quantity of something being used): What can you use less
of to save money?
 Reuse (Reusing items that are still in good condition rather than buying new
ones): What can you use again to save money?
 Repair (Fixing things that may be broken, but if given a little time and energy,
can be made useful again): What can you repair to save money?
 Recycle (Taking old, used materials and giving them new life as a different or
slightly altered product): What waste items can you make useful in order to
save or make money?
Responses could include:
Reduce
- Turn off lights or lamps in the house, or blowing out candles, to reduce energy
consumption
- Use only as much soap and water as you need to get clean, rather than
wasting soap and water
Reuse
- Reuse bags to carry items at the market
Trainer Tip 
and to carry other materials, such as
school supplies or to protect papers.
Bring examples of things
- Reuse plastic oil jugs or water jugs to
that can be recycled,
carry other liquids.
repaired, reused or
Repair
reduced (used less of) as
- Sew old clothing or resole a shoe.
examples for the
- Repair a watch rather than buying a
participants to see.
new one.
Recycle
- Use scrap metal to make stoves or implements.
5. For more advanced participants: Discuss how much they could save in each example.
See if they can estimate how much they would save over a month, and then a year.
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6. Divide participants into groups of 3 – 4 participants each. Ask each group to prepare a
poster that has pictures and words that tell people to use the Four Habits to Cut Costs
and give examples of what some of the Habits are. Alternatively, ask participants to
prepare a song about the Four Habits to Cut Costs and to sing this to the rest of the
participants. If the posters or songs are particularly good, you may be able to find
another way to display or perform these to a wider audience, even to the community as
a whole.
7. For more advanced participants: Youth could start a project where they look at how
your organization can reduce costs by implementing some of the Four Habits to Cut
Costs.
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Trainer Tool 5.1: Spending Money’ Scenarios
(Cut out and ask participants to select one)
----------------------------------------------------------------------------------------Paying for transport on a moto when you could have walked.
----------------------------------------------------------------------------------------Buying a soda when you had enough water to drink.
----------------------------------------------------------------------------------------Buying a new pair of shoes when your old shoes are good enough.
----------------------------------------------------------------------------------------Buying new clothes when you have enough old clothes.
----------------------------------------------------------------------------------------Buying expensive clothes to be fashionable and popular.
----------------------------------------------------------------------------------------Spending all your money on cell phone airtime to talk with friends.
----------------------------------------------------------------------------------------Paying for an expensive haircut, when a cheaper haircut is as good.
-----------------------------------------------------------------------------------------
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Handout 5.5: Ways We Waste Money
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Handout 5.6: Four Habits to Cut Costs
RE-USE
REPAIR
(Reusing items that are
still in good condition
rather than buying new
ones)
(Fixing things that are
broken, but if given a little
time and energy, can be
made useful again)
What can you use again
to save money?
What can you fix to save
money?
RECYCLE
REDUCE
(Taking old, used materials and
giving them new life as a
different or slightly altered
product)
(Decreasing the quantity of
something being used)
What can you use less of to
save money?
What waste items can you
make useful in order to save
or make money?
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Handout 5.7:
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Session 6: Managing Debt
 Key Topics 
 Introduce the concept of debt?
- Debt is the amount of money that we owe someone.
- Before getting into debt, we must realize the risks that come with it.
 Manage debt
- There are several strategies to manage debt.
•
Giving Advice to Others on financial fitness
Key Financial Fitness messages include: Start saving; Draw up a budget so that
you can plan what you spend; Be careful of taking a loan until you know how much it
will actually cost; Don’t waste money; Remember to Repair, Reuse, Recycle and
Reduce when possible; Keep track of your expenses.
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 Activity 1: introduce the concept of Debt
 Entrepreneurship Module; learning unit 4; learning outcomes 4.4
 Objectives - By the end of the activity, participants will be able to:
a. Explain clearly the concept of debt
b. Share experience on getting into debt
c. Identify situations/ things they can get into a debt for
 Methodology: large group discussion
 Materials and Preparation: flipchart / board, markers
 Review the facilitation guidelines.
Steps:
1. Explain that: ‘Debt’ is what you owe someone, or what someone owes you. You could
owe them some of your time to help them to do something. An example is that you
could have promised someone that you would help him or her to wash clothes or grow
food. You then owe them the time to help with these tasks. You could also owe someone
money. This could be because you borrowed money from them or bought something
from them that you have to pay back later. The amount of money that you owe them is
the amount of debt that you have.
2. Ask participants: “Do you owe anyone money? Why do you owe them money? How
much do you owe them? Share examples of your “debt” with the rest of the class.”
3. Ask participants: “Are there other people that you know that owe money to someone?
What are the kinds of things they owe money for?” Tell them to share these examples
with the rest of the class and write or draw at least five examples in their Booklets in
Handout 7.1: Things I could owe money for.”
Handout 7.1: Things I could owe money for
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Activity 2: Manage Debt
 Entrepreneurship Module; learning unit 4; learning outcomes 4.4
 Objectives - By the end of the activity, participants will be able to:
a. Analyze the reasons/situations of getting into a debt
b. Suggest strategies of managing a debt
Methodology: group work, prioritizing, large group discussion

 Materials and Preparation: None
 Cut out the Trainer Tool 7.1: Tempted to get into Debt Scenarios and make
more copies if needed for larger class sizes if small groups will be used.
 Copy and cut out the Trainer Tool 7.2: ‘How to Manage Debt’ Strategies, one
set per small group.
Steps:
1. Explain that: Not all debt is bad. If you can manage debt well, then you can use it to help
you in many ways. A better question is how do you spend, do u spend wisely? The higher
the price the more time you should take to decide whether to spend or not. If you take
the time to think through all your financial decisions, you can avoid getting into too much
debt. And if you choose to borrow money, you can do so carefully. These are some of the
most important things to being financially fit.
2. The situations in Trainer Tool 7.1: Tempted to get into Debt Scenarios describe reasons
that participants may be tempted to get into debt because each one would cost some
money to do.
a. Give these examples to the participants, either several per small group, or one to
individual participants in the large group.
b. Ask participants to read out the scenario to their groups or to the class as a whole and
discuss each situation one at a time by asking the following questions. Ask
participants to turn to Handout 7.2 : Managing Debt in their Booklets, which lists the
questions and has space for writing notes.

How tempting is this reason for getting into debt?

Is this a good (wise) or bad (unwise) reason for getting into debt?

What will you have to do to make the money to pay back this debt?

How long will it take you to pay back this debt?

What could you do instead or ways to avoid getting into this debt?
c. You could add additional examples or ask participants for examples and write these
on cards, and ask the participants to discuss these too.
d. There are no right or wrong answers but it is important to look at several
perspectives for each example. Responses may include:
- Your friends have all bought new bicycle parts and you are feeling left out: This seems
very tempting as peer pressure is involved. This might not be a good reason to get
into debt as there is no long-term benefit, especially if your bicycle can work well
without the new parts. Alternatively, you may decide to buy a seat for the back
carrier, and can make some income by giving people lifts around the community.
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You see a radio on special for a great price: This seems very tempting as it is on
special and you might feel it is a good deal, but it seems less of a good reason to get
into debt as you may not need a radio. You could avoid getting into debt over this by
simply buying a smaller radio, obtaining an older, second-hand one at a lower price,
or listening to someone else’s radio!
3. Tell participants that they are going to explore several strategies to help them to get out
of debt.
a. Divide participants into groups of 4 – 5 people each and give each group a full set of the
Trainer Tool 7.2: ‘How to Manage Debt’ Strategies.
b. Tell participants to rank the methods of getting out of debt by putting the most
important method at the top of the list and the least important at the bottom.
c. Ask each group to share what they decided and why.
d. Note: There are no right or wrong answers. By ranking them, the participants have to try
to understand what they mean. This will also help them to remember the points more
easily. When debriefing simply ask the group what some of their discussion was. The
ranking is not important to the learning, rather the process of understanding and
evaluating the meanings of each method.
e. Ask participants to make notes in their Booklets in Handout 7.3: Debt Management
Strategies.
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Trainer Tool 7.1: ‘Tempted to get into debt’ Scenarios
(Cut out and give to individual participants)
----------------------------------------------------------------------------------------My friends have bought new parts for their bicycles and I want to too.
----------------------------------------------------------------------------------------I see a radio on special for a great price.
----------------------------------------------------------------------------------------One of my sisters is very clever and wants to go to school to learn more.
----------------------------------------------------------------------------------------I’m having a party and I want to impress my friends.
----------------------------------------------------------------------------------------My home is too small for my household and I want a bigger one.
----------------------------------------------------------------------------------------I want a cell phone to help me for my small business.
----------------------------------------------------------------------------------------I want to sign up for literacy classes to help me to read and write better.
----------------------------------------------------------------------------------------I want to buy fruit and vegetables for people I live with to eat today, but I can
only pay for the food later.
----------------------------------------------------------------------------------------Someone in my home is ill and needs medicine.
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Handout 7.2: Managing Debt
 How tempting is this reason for getting into debt?
 Is this a good (wise) or bad (unwise) reason for getting into
debt?
 What will you have to do to make the money to pay back
this debt?
 How long will it take you to pay back this debt?
 How could you avoid getting into this debt?
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Trainer Tool 7.2: ‘How to Manage Debt’ Strategies
(Cut out and give a set to each group)
-----------------------------------------------------------------------------------------
Cut back on unnecessary spending.
-----------------------------------------------------------------------------------------
Do not borrow more money.
-----------------------------------------------------------------------------------------
Speak to people you owe money to, to work out when you can pay them back.
-----------------------------------------------------------------------------------------
Pay off any debt where people are charging you extra money (interest) on
what you owe them.
-----------------------------------------------------------------------------------------
Don’t buy anything else or anything expensive while you have high debt.
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Handout 7.3: Debt Management Strategies
 Cut back on unnecessary spending.
 Do not borrow more money.
 Speak to people you owe money to, to work out when you
can pay them back.
 Pay off any debt where people are charging you extra
money (interest) on what you owe them.
 Don’t but anything else or anything expensive while you
have high debt.
 Other:
_____________________________________________
_____________________________________________
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Activity 3: Give Advice to Others on financial fitness
 Entrepreneurship Module; learning unit 4; learning outcomes 4.3
 Objectives - By the end of the activity, participants will be able to:
a. Identify messages or lessons to give others about financial fitness
b. Compose songs/write poems/design posters for advising others on financial fitness
c. Give constructive advice on financial fitness
 Methodology: brainstorming, large group discussion, role-playing, drawing,
storytelling
 Materials and Preparation: paper and pens for making posters
 Review the facilitation guidelines.
Steps:
Trainer Tip 
1. Tell participants that they will role-play
You could ask the groups to role play
giving advice to another group of youth
or act out one or several of their
in in their area on how they can develop
stories. This is both a very effective
a plan to be financially fit in the future.
way for the participants that are
The participants are being brought in to
participating and those that are
speak to the other youth as experts!
watching to learn.
a. Divide the participants into
groups of 4 – 5 youth each.
b. Tell them, in their groups, to think about what advice you may give to the youth.
c. Ask them to brainstorm some of the main messages or lessons that they will give
to the other youth.
d. Discuss this with the participants as a whole so that they can get ideas on the
main messages from each other, referring back to their personal financial plans.
2. Ask participants to write the main financial fitness messages on a large piece of paper
and decorate it in a way that makes the messages clear and interesting for the youth.
Encourage participants to use pictures and color to highlight their messages.
3. Tell participants that people always remember advice best when they hear it in stories
or songs! Ask them to write a story or song that they can share with youth to convince
them why it is important to be financially fit. The stories or songs could be about people
who were very successful … or those
who got themselves into financial
Trainer Tip 
trouble. They do not have to be about
real people; they can make them up!
Put the posters up in the classroom
Ask them to read their story or sing
after the activity. You could look for
their song to the rest of the groups.
opportunities to put them up in other
The length of the story and how well it
parts of the community.
is written or told is less important than
the ‘financial fitness’ message it is
trying to make. They can write their story or someone else’s in their books.
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The purpose of both the poster preparation and song/story is to reinforce the
learning from this entire module in different ways to participants.
Ask them to record the key components of their posters, songs and story-telling in
their books in section Handout 7.3: Giving Advice to Others.
4. Have the participants give advice to others using their posters, songs and stories, either
through role-playing or delivering advice to a real group of other youth.
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Handout 7.3 Giving Advice to Others
Our Poster
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Our Song
♪
♫ ♬ ♪ ♫ ♬
♪
♫ ♬ ♪ ♫ ♬
Our Story-telling
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Session 7: Exploring Savings and Loans in
Rwanda
 Key Topics 
 Introduce the concept of saving?
- Saving is storing small amounts of money for emergencies, unexpected
events or items you need.
- You can save whether you have a lot or a little money.
 Set saving Goals
- Savings goals are what you want to save for and how much you need to
save.
 Identify Where to Save
- Saving options outside the home are at places such as an Umurenge
SACCO, at Business Development Fund (BDF), at a credit union, or in a
microfinance bank.
 Explore Financial Structures and Institutions in Rwanda
- Formal banks, microfinance institutions and cooperatives provide
savings, loans and insurance products
 Use ATMs
- Automatic teller machines (ATMs) provide quick and safe access to cash,
when available in local areas.
 Preparing Personal Financial Fitness Plans
- Preparing a personal Financial Fitness Plan helps you manage your money
better.
-

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 Activity 1: Introduce the concept of Saving
 Entrepreneurship Module; learning unit 4; learning outcomes 4.4
 Objectives - By the end of the activity, participants will be able to:
a. Explain the concept of saving
b. Identify reasons for saving
c. Realize that we can all save
d. Suggest ways in which people can save
 Methodology: brainstorming, large group discussion, role-playing, group work
 Materials and Preparation: sets of 10 pieces of blank paper per participant
 Prepare paper money (10 pieces of blank paper per participant, A4 divided into 8
pieces each - they will write ‘100’ on each one).
Steps:
1. Write or read the statement: “Long before people used money and banks, farmers and
villagers would save some of the seeds from their harvests”, and
have participants in small groups discuss the following questions.
Trainer Tip 
a. Why do you think farmers saved part of their harvest?
b. What do you think would happen if farmers used all their
You could share examples
harvest?
c. What do you undesrtasnd by saving?
d. How do people today save?
e. Why do people save today?
of proverbs or sayings
that relate to savings.
2. Have participants share their answers with the large group
(Long before people used money and banks, farmers and villagers would save some of
the seeds from their harvests to plant in their fields the following season. Farmers knew
that if they ate all their seeds they would not be able to plant and raise a new crop. And
if they could not harvest a new crop the following year they would have nothing to eat.
So saving some of their seeds meant saving their lives. Saving means putting some
things away to be used at another time. Some people save food, instead of eating it all
today, they save some for a day when they might not have enough. People can save
money too. They put money away in a safe place in case they need to pay for something
unexpected or for emergencies)
3. Ask participants for examples of things that people save and why they save them.
Responses could include: food, fuel, seeds, money.
4. Ask participants if they know of examples where people have saved money and, if so,
what this was for?
5. Ask participants if only rich people can save money. Discuss whether they think people
can save even if they have very little money. There are no right or wrong answers here.
This discussion is simply encouraging participants to start thinking about how anyone
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can save money.
6.
Tell participants that Francois Kanimba, the governor of National Bank of Rwanda in
2009, did not agree that some people simply earn too little to save. "Everyone can save,
whatever their income; it is a question of behavior and culture.” What do you think he
meant by saying this?
The discussion could include that people can save very, very little, as this will slowly
grow to be more. Starting the habit of saving and realizing the necessity and
importance of saving are more important than the amount of money that you have.
7.
Tell participants to imagine that they each receive a gift of Frw 1,000 today. Give
each participant 10 circular pieces of paper, which represent bank coins of Frw 100 each,
asking them to write 100 on each of the pieces. Ask: “How much would you spend and
what would you spend it on? How much would you save and what would you save it
for? Each decide for yourself.” Have the participants put their ‘coins’ into two separate
piles, one for the amount they will spend, one for the amount they will save.
Ask participants why they made the decisions they did and allow time for discussion.
Responses on the amount they saved may include: They need a certain amount of
money to cover expenses today and tomorrow; they want to be able to pay for food or
social activities that might occur with their friends; it seemed like a good amount to save;
they are afraid that if they keep the
money in their pocket it may be stolen;
Trainer Tip 
they don’t need to use the money right
now and would prefer to have it all
You may want to add examples of
stored away.
Emphasize that some money put aside
for savings needs to be for unexpected
events or emergencies that they
cannot plan for. Only some of the
money is saved for specific things.
8.
unexpected events that occur into
this scenario so that participants can
see if they saved enough for these.
Examples could include: medical
expenses, unexpected travel
expenses, flood damage, etc.
Ask participants to make notes about what they learned about saving in their
Booklet in section Handout 8.1: My lessons about Saving.
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Handout 8.1: My lessons about Saving
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Activity 2: Set Saving Goals
 Entrepreneurship Module; learning unit 4; learning outcomes 4.4
 Objectives - By the end of the activity, participants will be able to:
a. Identify things to save for
b. Determine how much to save for particular things
c. Develop own saving goals,
 Methodology: brainstorming, individual goal setting, buzz group, think pair square
share
 Materials and Preparation: flipchart / board, markers
 Review the facilitation guidelines.
Steps:
1. Ask participants for examples of things that they might want to save money for right
now. Write down all responses, whether these are realistic or not.
Responses may include both small and large items for which varying amounts of money
will need to be saved.
2.
Now ask participants how much they think they would need to save to be able to afford
each of the things they want to save for.
3.
Ask participants to forecast how long it might take to save for the things they want.
4.
Ask participants to choose one or two things that they want as their saving goal and
write these in their Booklets in Handout 8.2: My Saving Goals. They should choose
what they want to save for, how much they want to save and how long they want to
save for. Ask some of the participants to share their ideas so that others can learn from
these.
Trainer Tip 
Explain that they could decide that their goal is
to save for their future education, or for a
mattress, or to buy something to use to earn
income – most importantly they should start
small and make this as realistic as possible.
Make sure that they also write how much they
think they will need to save!
You could ask participants to start
tracking how much they save each
week and start a chart that records
this in the classroom.
Mention to participants that they actually need to plan for specific things to save for as
well as for unexpected events or emergencies. If they do not have specific things they
want to save for, they still need to save for emergencies that could arise.
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Handout 8.1: My Savings Goals
WHAT I want to save for
Specific Things:
Unexpected Things or Emergencies:
HOW much I want to save
Specific Things:
Unexpected Things or Emergencies:
WHEN I want to save by
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Activity 3: Identify Where to Save
 Entrepreneurship Module; learning unit 4; learning outcomes 4.3
 Objectives - By the end of the activity, participants will be able to:
a. Identify various saving options/financial institutions
b. Distinguish between different saving options/financial institutions
c. Make choices about safe places to save
 Methodology: guest speakers, group discussion, brainstorming,
 Materials and Preparation: flipchart / board, markers
 Research basic information on various savings institutions; review Trainer Tool
8.1: Background on Savings in Rwanda.
 Identify and invite guest speakers.
 Collect information on opening savings accounts or joining savings groups
(optional).
Steps:
1. Ask participants to mention where they (or people they know) keep, store or save their
money. Write their responses on the board.
2. Explain: “Sometimes people save money in their homes. They hide it under the floor or
under a mattress. Often people might realize that their homes were not a safe place to
keep money, as the money could be stolen or lost in a fire.”
Ask participants for examples of safe places where people save money when they do not
save it at home? Add these to the board.
Add these to the list if they are not there: SACCOs, or Microfinance bank,
Commercial banks, Savings groups (SILC) and Mobile banking. Explain to participants
briefly what each is and give examples. Ask them to write their answers in their
Booklets Handout 8.3: Where I Can Save.
3. Invite guest speakers to talk to the participants about savings options. Speakers could
include: community members who belong to a SACCO or other community savings
groups; someone who has a savings account; people from institutions talking about the
savings products they offer and how to
Trainer Tip 
join or open an account (such as from a
microfinance institution, commercial
Besides inviting guest speakers to
bank, etc.) Refer to Trainer Tool 8.2:
share information, you could assist
Background on Savings in Rwanda for
participants in becoming members
relevant context of savings in Rwanda.
of a local community savings group
or opening a savings account at a
bank or savings institution.
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4. Ask participants which they think is better: saving money at home or in financial
institutions such as SACCOs, or in a microfinance institutions, bank? Ask them for
reasons for their answers.
If participants feel it is better to save money at home, provide challenging reasons that
demonstrate the insecurity of such action. Ask participants why it might be a good idea
to have assets divided in different locations. Answers might include: Your house floods
and the box you store it in floats away; The house catches fire and the savings are
burned up with it; Your house is robbed.
5. Tell them to write at least two of the main reasons to save their money in these types of
groups or institutions in Handout 8.3: Where I Can Save of their Booklets. And
depending on the area of the school, have participants identify where they can find
these institutions nearby them
Responses could include: money is safer away from home; you can earn interest on the
savings in some cases; others cannot steal the money
easily; you can easily find out how much you have
Trainer Tip 
saved; you have evidence of the amount of money you
have in case you need this to take a loan elsewhere; if
Decide whether it is relevant
someone robs me, I have more money stored safely in
to introduce the concept of
the Umurenge SACCO or in a microfinance
interest (interest earned on
institutions, bank that I can easily access; so that I can
savings and interest paid on
get a loan from the same institution as they know me
loans) to the participants. If
if I want to buy something I can’t immediately afford;
so, ensure that you or one of
so that I can put money away to save up for
the guest speakers covers
something and can keep myself from spending it on
this.
everyday things.
6. Tell participants: “Did you know that Rwanda celebrates World Savings Day on October
31st? Did anyone see posters, advertisements or billboards celebrating the importance of
savings and the benefits of putting your money in a bank? If you did not see these,
remember to look for these at the end of October next time!”
Trainer Tip 
You may want to find out whether the
participants can design posters promoting
a culture of saving which can be displayed
around the city during World Savings Day.
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Handout 8.3: Where I can save
What are examples of places to save money?
Why is it good to save at a SACCOs, or Microfinance bank, Commercial banks,
Savings groups (SILC) or Mobile banking?
Where can I find these places to save?
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Trainer Tool 8.1: Background on Savings in Rwanda
The Government of Rwanda has for a long time been encouraging the culture of saving
through an internal savings mobilization strategy that includes facilities such as
microfinance institutions (MFI's), grassroots saving and credit schemes (Umurenge SACCOS)
and decentralization of bank services to the people. Despite all these efforts, the number of
people using these services is still very low.
The reasons for this are both historical and cultural. Before 1994, only three commercial
banks existed: Bank of Kigali (BK), Banque Commercial du Rwanda (BCR) and. Those were
set up specifically for external trade purposes and for that reason located within Kigali and
other major towns across the country. At the time, people saw banks as being useful for the
rich, and they kept their meager earnings in a convenient hiding place at home.
That situation does not seem to have changed much, in 2009 only 8% of the country's
population saved while a huge amount of money was in circulation, showing that people
prefer to keep their money under their mattress rather than depositing it at the bank.
Banks scared people away by asking for a minimum deposit of between Frw 100,000 and
200,000 to open an account.
In recent times, there have been improvements. In 2004 there were 150,000 bank accounts,
while in 2009 this increased to 1.2 million (50% of them at Banque Populaire). In 2009, most
banks did not charge a fee to open an account; some required a minimum amount to open
an account but that amount stays with the person opening the account; anybody 16 or older
could open an account by showing their identification card; those under 16 could also open
an account with a parent/guardian.
World Savings Day in Rwanda
In 2009 Rwanda joined the celebration of World Savings Day. With the rate of saving still
low, it was an occasion to sensitize people on the benefits of putting their money in the
bank. The day, established by the United Nations in 1989 and celebrated on October 31,
aims at informing people of the importance of saving. In this respect, the Government of
Rwanda launched a "special saving week" to raise awareness in financial institutions,
insurance companies, ministries as well as the general public on the importance of saving.
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 Activity 4: Explore Financial Structures and Institutions in Rwanda
 Entrepreneurship Module; learning unit 4; learning outcomes 4.3
 Objectives - By the end of the activity, participants will be able to:
a. Identify financial institutions and structure in Rwanda
b. Describe the financial institutions and structure in Rwanda
 Methodology: Group discussion, guest speakers,
 Materials and Preparation: none




Review the facilitation guidelines.
Research current financial institutions and how to categorize these.
Read through Trainer Tool 8.2 : Background on Microfinance in Rwanda.
Identify and invite guest speakers.
Steps:
1. Tell participants that there are several options of places to save money or to obtain
loans in Rwanda. Ask participants to turn to section Handout 8.4: Examples of Financial
Institutions in their handbooks and look at the logos and names there. Ask participants:
 “How many of the logos or names do you recognize or how many have you seen
before? “
 “Have you ever been inside one of their buildings or visited their meetings?”
 “Do you know anyone who is a member of one of these?”
2. Provide a brief description of the differences between the types of financial institutions
using the information in Trainer Tool 8.2 : Background on Microfinance in Rwanda.
a. The summary below is a very basic and generalized description of the
differences.
- Large banks provide large loans and savings services to larger organizations
and people who earn a lot of money.
- Microfinance institutions provide smaller loans to smaller organizations and
people who earn less.
- Cooperatives provide savings and loans services to low income people.
- Savings groups provide savings and loans services to low-income people, and
often to those that have not dealt with the financial services before.
b. Ask participants to note the differences in Handout 8.5 : Differences between
Types of Institutions of their Booklets.
c. Ask participants to circle, using different colored pens or differently shaped
boxes, which of the organizations in the previous list are large banks,
microfinance institutions, cooperatives and savings groups
d. Invite guest speakers to:
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i.
ii.
Talk about the basic differences
between the different types of
financial structures, including which
ones offer services that are most
appropriate to youth.
Talk about how youth can connect
to their specific institutions
Trainer’s Manual
Trainer Tip 
You could organize for the
youth to visit some of the
institutions so that they can
become more familiar and
comfortable with approaching
them for ongoing membership
and services.
3. Introduce examples of specific materials from particular institutions. For example, when
opening an account at Umurenge Sacco, all clients receive a pocket-sized book in which
they are asked to document their financial activities and initiate good habits such as
balancing checkbooks and maintaining a budget. In addition, a booklet on financial
instruments such as savings, credit and even basic accounting is provided. It could be
very useful to obtain a copy of these for the participants and even to help them to open
an account to start saving.
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Handout 8.4 : Examples of Financial Institutions
1. Commercial banks
1. Access Bank Rwanda
2. Bank of Kigali
3. Banque Populaire du Rwanda SA (BPR Part of Atlas Mara)
4. Commercial Bank of Africa (Rwanda) – In development[2]
5. Compagnie Générale de Banque (Cogebanque)
6. Crane Bank Rwanda[3][4]
7. Ecobank
8. Equity Bank (Rwanda)
9. Guaranty Trust Bank (Rwanda)
10. I&M Bank (Rwanda) - Formerly Commercial Bank of Rwanda (BCR)[5][6]
11. Development Bank of Rwanda (BRD) - Owns 100% of Housing Bank of Rwanda
(Banque de l'Habitat du Rwanda) (BHR)[7]
12. Kenya Commercial Bank[8]
13. Bank of Africa former Agaseke Bank [9]
2. Microfinance banks
1. AB Bank Rwanda
2. Unguka Bank[10]
3. Urwego Opportunity Bank
4. Zigama CSS.
5. Umwalimu SACCO
6. Duterimbere Microfinance Insitution LTD
7. Bank COPEDU LTD
8. Union Des Coopecs Umutanguha
9. Umurenge SACCOS
10. Associations de Microfinance RMFI
11. Reseau Interdiocesain des Microfinances (RIM)
12. VISION FINANCE LTD
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Trainer Tool 8.3: Background on Microfinance in Rwanda
Microfinance Institution A Microfinance Institution (MFI) is an organization that provides
financial services to the poor. This very broad definition includes a wide range of providers
that vary in their legal structure, mission and methodology.
However, all share the common characteristic of providing financial services to clients who
are poorer and more vulnerable than traditional bank clients
(CGAP).
In this document the term is used to refer to the different types of providers of
microfinance operating in Rwanda: microfinance banks and the four categories mentioned
in the Microfinance Law:
1. Informal MFIs
2. SACCOs with collected deposits of less than RWF 20 million.
3. Limited companies or SACCOs with deposits over RWF 20 million.
4. Non-deposit taking MFIs.
Unlike micro-credit, which focuses solely on the provision of loans, microfinance institutions
– also known as MFIs – encompass a complete set of financial and banking services
targeting underserved communities who, due to poverty and stigma, tend to have little
access to traditional financial tools. microfinance products and services include savings,
insurance and loans.
Examples of financial service providers in Rwanda (refer to Handout 8.4: Examples of
Financial Institutions)
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Handout 8.5 Differences between Types of Institutions
Banks
MicroFinance Institutions
Cooperatives
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Community Savings Groups
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Activity 5: Use ATMs
 Entrepreneurship Module; learning unit 4
 Objectives - By the end of the activity, participants will be able to:
a. Describe the basic ways to use ATMs
b. Use an ATM in a bank
Methodology: brainstorming, large group discussion, field visit

 Materials and Preparation: board / flipchart, handouts
 Prepare a field visit to a bank and ATM.
 Prepare one copy of the following for each participant: Trainer Tool 8.4: Using
ATMs, Trainer Tool 8.5: Security Tips for Using ATMs and Trainer Tool 8.6:
Advantages and Disadvantages of using ATMs.
Steps: (If it is appropriate for participants to be introduced to ATMs):
1. Hand out copies of Trainer Tool 8.4: Using ATMs and work through the material and activities
with the participants. Alternatively, facilitate the activities on Trainer Tool 8.4: Using ATMs
without providing copies to participants and provide them with copies of Trainer Tool 8.5:
Security Tips for Using ATMs and Trainer Tool 8.6: Advantages and Disadvantages of using
ATMs.
a. Activity 1: Students are asked to decide on their top three tips for using ATMs. The
selection of the tips is far less important than having students read through the tips and
understand more about how to use ATMs.
b. Activity 2: Students are asked to organize six steps to using an ATM in the best order. The
order itself is less important here, rather having the students start to discuss issues
relating to ATM use. Responses could however include:
i. Make sure the area around the ATM is safe and well-lit
ii. Insert our card into the slot
iii. Follow the instructions on the screen
iv. Use the ATM buttons to make choices and enter amounts
v. Push the cancel button if you want to start over
vi. Remember to take your money, receipt, and card with you when you are finished!
c. Activity 3: Responses could include those listed on Trainer Tool 8.6: Advantages and
Disadvantages of using ATMs.
2.
Provide Trainer Tool 8.5: Security Tips for Using ATMs and have participants in small
groups read through them and decide together which they think are the three best tips.
Once they’ve decided on the top three and share with their friends.
3.
Split participants into small groups and spend five minutes identifying three
advantages of using an ATM and three disadvantages. Then come together again as a
group and share your findings. Provide Trainer Tool 8.6: Advantages and Disadvantages
of using ATMs and have participants create a table in their books to summarize all the
advantages and disadvantages discussed.
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4. Organize a visit to bank with an ATM and get the bank to demonstrate how ATMs work.
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Trainer Tool 8.4: Using ATMs
Why do we need ATMs?
ATM stands for Automated Teller Machine. ATMs get their name because they are machines
that can do some of the work of a bank clerk, or teller; which means that you can use them
to withdraw money from your bank account or make deposits.
Before ATMs the only way to do your banking was to visit the bank. But then you had to do
your banking during working hours, and you probably had to stand in long queues waiting
for service.
ATMs save us time, because they allow us to do more of our banking when it suits us. They
also save us money, because drawing and depositing money at an ATM is cheaper than
doing it in person in the bank.
Activity
1. Here are six basic steps for using an ATM. Decide together what is the best order for
these six steps, then list them in your workbooks.
- Push the cancel button if you want to start over
- Insert your card into the card slot
- Remember to take your money, receipt, and card with you when you are finished!
- Use the ATM buttons to make choices and enter amounts
- Follow the instructions on the screen
- Make sure the area around the ATM is safe and well-lit
PIN
When you open a bank account, you will be given a PIN, or a Personal Information Number.
You can use this number to access your bank account at an ATM. You should never tell
anyone your PIN. You should memorize it and not even write it down anywhere, especially
not on your card. Many people who have written their PIN on their ATM card have found
their bank accounts empty after their cards went missing.
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Trainer Tool 8.5: Security Tips for Using ATMs
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
Use ATMs (cash machines) where you feel most comfortable.
Avoid using the ATM if there are any suspicious-looking
individuals around.
Have your card ready in your hand before you approach the
ATM.
Do not use the ATM if you notice anything unusual that shows
that it may have been altered or tampered with.
Be especially cautious when strangers offer to help with the
transaction. Never allow anyone to distract you while you are
at the ATM.
Do not let anyone see you enter your PIN; you should shield the
keypad with your hand when entering your PIN.
Never disclose your PIN to anybody, not even to the bank or
police.
If you feel the ATM is not working normally, press the Cancel
key and withdraw your card, and then proceed to another
ATM.
If your card gets jammed, retained or lost, or if you are
interfered with at the ATM, report this immediately to nearest
bank and police.
Do not hurry during a transaction, and carefully secure your
card and cash in your wallet, handbag or pocket before leaving
the ATM.
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Trainer Tool 8.6: Advantages and Disadvantages
of using ATMs
Advantages:
 You can access your money at any time
 You can check your bank balance (the amount of money
that you have in the bank) easily
 You can withdraw money without having to stand in lines
inside the bank
 You can use your ATM card in other locations to pay for
things without carrying cash around, which is safer
Disadvantages:
 If someone sees or finds your secret PIN, they can steal
all the money in your bank account
 Someone could steal money from you while you are
withdrawing money from an ATM
 You sometimes have to pay fees to withdraw money
from ATMs
 You need to be able to read to use an ATM
 You need to feel comfortable using a computer screen to
use an ATM
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Session 8: Basic Business Activities Cycle and
Unexpected Costs
Note to Trainer: The Trainer Tools and Participant Handouts for Session 9 and Session 10
are all found at the end of Session 10. Most of the tools and handouts get used in both
sessions.
 Key Topics 

Basic business activities cycle: buying, adding value, selling for profit

How to allocate income between the business, personal expenses and savings
(kuzigama)

The importance of maintaining positive cash flow

How to cope with unforeseen expenses

Activity 1: Practice Basic Business activities Cycle & Unexpected Costs
through a game (Part one).
 Objectives - By the end of the activity, participants will be able to:
a. Allocate income between the business, personal expenses and savings (kuzigama
b. Plan for, and deal with, unexpected financial events
c. Practice the basic cycle of business: buying, adding value, selling for profit to real
life business
d. Maintain positive cash flow


Methodology: simulation game, large group discussion
Materials and Preparation: flipchart paper / board; markers; sticky stuff such as tape
or prestik
 Raw material: Prepare raw material. (See Trainer Tool 9.1).
 Money: Photocopy Money templates. Make at least 20 copies of each A4 denomination
page. If possible, copy each denomination onto a different color paper. (See Trainer Tool
9.2).
 Patrick’s Iduka: Prepare a flipchart that represents Patrick’s Iduka. (See Trainer’s Tool
9.3)
 Gloria’s Butiki: Prepare a flipchart that represents Gloria’s Butiki, (See Trainer’s Tool 9.4)
 Claire’s Iduka: Prepare a flipchart that represents Claire’s Iduka on a flipchart paper. (See
Trainer Tool 9.5)
 Savings & Loans Bank: Prepare a flipchart that represents the Savings & Loans Bank. (See
Trainer’s Tool 9.6)
 K.U.G. Allocation containers: Prepare a set of three containers or pieces of paper with the
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letters K, U and G written on them, one set per group.
 Entrepreneur Profiles: Photocopy each of the Entrepreneur pictures on Trainer’s Tools 9.9
, 9.10 , 9.11 ,22, 9.12 )
 Entrepreneur’s Cycle Chart: Prepare a Cycle Chart on a flipchart paper, copying the
example in Handout 9.13 . Make one photocopy per group on white paper, or on colored
paper representing the group’s color, if possible. Make one small colored square, with
the word “Today” on it, to stick on the chart to show which part you are currently working
on.
 Life Cards: Photocopy and cut out the Life Cards templates from Trainer’s Tool
9.7
Steps:
A. DIVIDE THE PARTICIPANTS INTO GROUPS
Divide the participants into groups (preferably 3-6 people each), with the aim of having as
few groups as possible.
Assign each group a color to represent their group. When the groups receive handouts,
these should be photocopied onto paper that represents their group color. Alternatively, if
you do not have colored paper, draw a spot of that color on the top of white photocopied
paper.
B. SET THE ROOM UP
The game pieces should be arranged on the walls and the groups’ tables as listed below.
These pieces could be handed out or put up on the walls as each component is introduced.
On the Wall:
Patrick’s Iduka, Savings & Loan Bank, Gloria’s Butiki, Business
activities calendar, Claire’s Iduka
On the tables:
K.U.G. Holders, What We Bought Sheets, Business activities calendar,
(1 per group of each)
C. EXPLAIN THE GAME (PART 1)
Telling the Background of the game
The game takes place in area somewhere near you. You take your groups as cooperatives.
Now, you have decided to start cooperatives! Take a moment to say hello to each of your
cooperative members.
The objective of this game is that during a month, you must run your businesses while also
paying for your families' personal expenses, making a profit, and repaying your loans.
Introducing the components
Explain the relevant components used and the financial implication of each:
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Business activities calendar
Put up the business activities calendar and give one copy to each team (See Handout
9.7). Say: “The chart represents 4 cycles of running a business. The basic business
functions are summarized into the days of the week. We are going to play through
five weeks of business for this first part of the game. (The first two weeks will be
the same and then something will happen in the third week.) Let’s find out what
happens on each day.” The trainer controls the process of the game by moving the
"Today" sticker along the poster to show the teams which "day" it is and which
activity to do. Move the “Today” sticker to the relevant day as you introduce each of
the components below. Photocopies of the Entrepreneur’s Cycle are used by the
teams for planning and record-keeping if they decide to do this – don’t encourage
this, part of the learning is to discover why record-keeping is important through not
doing it at first.
Patrick’s Iduka (sells raw material for RF 40 each)
Put up the Patrick’s Iduka poster. (See Trainer Tool 9.3) Say: “You have been looking
around your town and you have found that every Monday you can buy raw
material from a wholesaler called Patrick. Patrick sells each piece of raw material
for RF 40. If you run out of money and decide to return a piece to Patrick, he will
buy this back from you, but because it will no longer be new, he will only refund
you RF 20 for each piece.”
Raw Materials
Show the participants the small, white pieces of paper. (See Trainer Tool 9.1) Say:
“The raw materials that you will buy from Patrick are represented by these white
pieces of paper. On Tuesday, you will be adding value to the raw material by
folding it or drawing on it, to make something that represents a finished product.
The raw material cannot be broken into smaller pieces; one piece of raw material
equals one finished product. If you do not finish producing your product during
your time to produce, it will be incomplete, and you will only be able to sell it
during the following week of business.”
Gloria’s Butiki (buys product for RF 80 each)
Put up the Gloria’s Butiki poster. (See Trainer Tool 9.4) Say: “You have done further
research, and have found a retail store, Gloria’s Butiki, where you can sell your
products on Wednesdays. Gloria will buy as many finished products as you have to
sell to her, which she then resells to her customers. Gloria will pay RF 80 for each
of your finished products, but only buys well-made, high quality products.”
Thursdays
Say: “On Thursdays you will be paid or repay any money that is outstanding.” You
can move past Thursdays very quickly at this stage, as participants will experience
later, particularly in later sessions, what happens on these days. In this session, the
loan is repaid on the last Thursday of the month.
K.U.G. Allocation Containers
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Give each group their K.U.G. Allocation containers. If you have assigned colors to
them in some way, then make sure each group is given the color container that
matches the color assigned to their group. Say: “On Fridays you will plan how your
business will allocate your income for the next week of doing business. These are
containers that will use when deciding how to allocate your income. The U
(Ubucuruzi) is for Business, this is for money that you allocate to use for your
business expenses the next week, in other words, how much you would spend at
Patrick’s Iduka. The G (Gukoresha) is for Spending on personal needs, this is for the
money that you will allocate for buying food and other things for your family for
the following week, at Claire’s Iduka. The K (Kuzigama) is for Savings for yourself
and others, this is where you will put the money that you will be put aside in saving
for unforeseen circumstances or unexpected events during the next week.”
Recognize that in real life people do not have separate bank accounts, but instead,
for many small businesses, money for the family and business is all put into one pool.
It is helpful for youth to get into a routine of separating their money to plan for
different purposes.
Claire’s Iduka
Put up the Claire’s Iduka Poster. (See Trainer Tool 9.5 ) Say: “You need to look after
your family members. You have found a local supermarket, Claire’s Iduka, where
you can buy food, clothes, furniture, and other items for your family. You need to
look after your family well, or they might become ill. If you buy food, it only lasts
for 1 week or it goes bad. Claire’s Iduka is open all day of the week for window
shopping, but is only open on Saturday for shopping”. Teams do their personal
shopping here. Each block of food is good food but will only last for one week.
Teams do not have to buy any items for their families, but you should encourage
them to buy food or someone might fall ill. Assume that they already have
necessary items such as clothes. If teams decide to purchase other items besides
food, these are luxuries.
‘What We Bought’ Sheets
Give one ‘What We Bought’ Sheet to each group. If you have used colored paper,
then make sure each group is given the color assigned to them. (See Handout 9.8)
Say: “These sheets are for businesses to keep track of purchases from Claire’s
Iduka”. Tell participants that they will stick their purchases from Claire’s Iduka on
the ’What We Bought’ sheets to keep track of what they bought.
Rent (RF 100 at the end of the month)
Say: “You are currently operating your business from home. You need to pay rent
for your home, which is also where you are operating your business, each month.
You need to have enough money to pay rent of RF 100 on the 27 th of the month.”
Savings & Loans Bank (loan of RF 200, repayable with RF 50 interests)
Put up the Savings & Loans poster with the Savings Account envelopes on it. (See
Trainer Tool 9.6) Refer to the Savings and Loan facility by whichever name makes
most sense to the participants, e.g. you may call this a “Bank” or a “Savings Group”
or a “MicroFinance Institution”, etc. You may decide to tell participants that the
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savings accounts are ATMs, if ATMs were discussed earlier. The Trainer Manual will
refer to a generic bank. Say: “Congratulations! Each of you applied to your Savings
and Loan bank and was successful in obtaining a loan to start your businesses! You
will each receive RF 200. You need to pay this back at the end of the month, on the
29th, with RF 50 interest.” Give each group RF 200 (3 X RF 50, 2 X RF 20, 1 X RF 10).
You may have to explain the concept of interest now, showing that if you get a loan
you have to pay back even more at the end as the additional price of being able to
get the loan. Say: “Each team has a savings account at the bank. Money can be
deposited and withdrawn at any time as the bank is open every day of the week, so
you can deposit and withdraw money at any time in your savings account
envelope. The bank does not pay interest or charge fees for withdrawals. Money in
the savings accounts envelopes at the bank is safer than money under your bed at
home!”
Introducing the characters
Introduce the three characters one-by-one – Ms. Tycoon, Mr. Saver, and Mr. Greedy.
(See Trainers Tools 9.9, 9.10 , and 9.11.)
a. Explain that the characters represent different approaches to business and some
of the common challenges faced by entrepreneurs.
b. As you discuss them, stick the character posters on the wall
c. Ask participants how they believe each character will allocate a RF 200 bank loan
between:
 U - Business Expenses (raw material purchases from Patrick’s Iduka)
 G - Personal Expenses (purchases from Claire’s Iduka)
 K - Savings (for unforeseen business and personal circumstances and
unexpected events)
d. Tell participants to write their responses in Handout 9.2 , 9.3 and 9.4 in their
Booklets.
 Participants need to realize that amounts allocated to Business need to be in
increments of RF 40 as raw materials would cost RF 40 each.
 There are no right or wrong answers: Ms. Tycoon would allocate much more
on Business, Mr. Saver on Savings, Mr. Greedy on Personal Expenses.
Then reveal Ms. Wise and explain that this character has the most successful
approach to businesses and participants should try to run their businesses as a
Ms. Wise. (See Trainers Tool 9.12 .) Tell participants to write their responses
onto Handout 9.5 in their handbooks.
D. PLAYING THE GAME
To begin the game:
 Put the “Today” sticker on Thursday 1st.
 Remind teams that they must repay their loans of RF 200 plus RF 50 interest on the
29th of the month.
Throughout the game:
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Move the “Today” sticker to start each new day.
Use a timer if you want to put a limit on the days.
On Mondays:
 Move the “Today” sticker to Monday.
 Say: “Patrick’s Iduka is open for business.”
 Invite participants to stand in line at Patrick’s Iduka to purchase raw materials at RF
40 each (cash only.)
 Trainer Tip: If groups run out of money, they may return previously purchased raw
materials to Patrick’s for a refund of RF 20. The trainer might decide to encourage
other groups to see if they might want to loan money or buy the used raw materials
for a discount to assist other groups in financial trouble.
 Trainer Tip: Always ask groups to give you the totals of what they owe you after
each purchase. This allows them to build their maths skills. At times, give them too
little change. When they come back to you to complain, look innocent and ask if
they can show you the receipt. Don’t let them lose more than RF 10 at a time, just
enough to have the learning point come across.
On Tuesdays:
 Move the “Today” sticker to Tuesday. Every Tuesday each team manufactures their
raw materials.
 Say: “It is time to produce raw materials. Add value by folding or drawing on them.
Do this as quickly as possible.”
On Wednesdays:
 Move the “Today” sticker to Wednesday. Each Wednesday teams sell to Gloria’s
Butiki. Buy as many as groups have to sell for RF 80 each.
 Say: “Gloria’s Butiki is open for business.”
 Invite participants to stand in line at Gloria’s Butiki to sell products to Gloria for RF
80 each (cash only).
 Trainer Tip: Always ask groups to give you the totals of what they owe you after
each purchase. This allows them to build their Maths skills. At times, underpay them.
When they come back to you to complain, look innocent and ask if they can show
you the receipt. Don’t let them lose more than RF 10 at a time, just enough to have
the learning point come across.
On Thursdays:
 Move the “Today” sticker to Thursday.
 Teams will collect and repay bank loans on Thursdays.
On Fridays:
 Move the “Today” sticker to Friday.
 Tell teams to plan what they will do with their money for the next week.
 Remind them to use their K.U.G. containers.
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On Saturdays:
 Move the “Today” sticker to Saturday.
 Say: “Claire’s Iduka is open for business.”
 Invite the teams to purchase from Claire’s. Teams should place the purchased items
on their “What We Bought” card.
On Sundays:
 Move the “Today” sticker to Sunday.
 Sunday is a rest day. Encourage teams to save at the bank and keep a running total
in the savings column.
E. UNEXPECTED COSTS
After 2 weeks of playing, explain that we are going to continue playing for 3 more weeks.
Now, however some unexpected events are going to happen.
On Tuesdays:
Introducing the Life Cards
Say: “I am going to get each team to choose a Life Card. These Life Cards tell you about the
unexpected things that happen in your business or life. You need to deal with the situation
immediately”. And amounts owed on Life Cards must be paid immediately. They can deal
with the Life Cards while they are producing products.
Trainer Tip: Observe which team has made poor decisions and manipulate which Life Card
they receive. You could for example give groups the card you want them to deal with rather
than having them select one, or have them select from a very small selection which you
preselect. Have teams read the life cards aloud so that other teams can learn from the
scenario, although with larger class sizes you will not have time to do this, in which case just
ask teams for examples of the Life Cards they received during the debriefing session later.
F. ENDING THE GAME
Continue on, until 5 weeks are over.
Collect the RF 100 rent payment from each team at the end of the last week.
Collect the repayment of RF 250 owed to the bank at the end of the last week.



Remind teams to collect any money they have at the bank.
Ask teams to calculate the total number of units (products) they sold this month, and
their profit.
Write the results on a flipchart.
G. DEBRIEFING THE GAME
See Trainer Tool 9.8 : Debriefing Questions for the appropriate debriefing questions for
Session 1. Try to get the participants to think back to their experience playing the game, and
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try to identify general business lessons learned. Ask them to write these lessons learned in
Handout 9.9 in their Booklets. Ask them to look at the entrepreneurs in Handout 9.6 of the
Participant’s Handbook and to identify which character their group seemed to play the
game like.
If you believe that participants would benefit from discussing Handout 9.13 , refer them to
this in the Participant’s Handbook after each session to discuss the basic Entrepreneur’s
Cycle.
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Session 9: Credit Risks & Running a Profitable
Business, Record-Keeping and Business
Planning
 Key Topics 

Basic business cycle: buying, adding value, selling for profit

How to allocate income between the business, personal expenses and savings

How to cope with unforeseen expenses.

The importance of maintaining positive cash flow

The considerations of selling on credit

The implications of making loans to friends and family

The importance of keeping records

The importance of business Activities Calendar
Activity 1: Deal with Credit Risks, Record-Keeping & Business Planning
through a Game (Part two)
 Objectives - By the end of the activity, participants will be able to further develop
their initial learning from Part 1 of the game and also:
a. Identify some of the main risks and potential benefits of selling to customers on
credit
b. Make informed decisions while extending credit to friends and family members
c. Keep business records
d. Prepare a business activities calendar


Methodology: simulation game, large group discussion
Materials and Preparation: flipchart paper / board; markers; sticky stuff such as tape
or prestik
The same preparation is required as for Part 1 of the game, with the following
additions:
 Will They Pay poster: Prepare a Will They Pay poster with the cards on it. Follow
instructions on Trainer’s Tool 10.1.
 Life cards II: Photocopy and cut out the Life Cards templates from Trainer’s Tool
10.2.
 Record-keeping Sheet: Copy one per group. (See Handout 9.11).
 Record-keeping Sheet: Make copies for each participant. (See Handout 9.11).
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 Business activities calendar: Make copies for each group. (See Handout 9.12).
Steps:
Set up
Set up the room in the same way as for Part 1 of the game, with addition of putting the Will
They Pay poster on the wall.
Introducing the new Life Cards
On Tuesdays,
add the life cards from Trainers Tool 10.2 to the life card set. Make sure that each group
gets one of these cards close to the start of the game so they can experience having to
make decisions about how much to loan to family members in need. Put pressure on
groups to loan to their family. When groups are told to select a Will They Pay card to see
how much they will get paid, ask them to go to the Will They Pay poster and select one of
the cards. Make a note for you to remember and when and how much they need to be
repaid. This teaches participants that when giving loans, there is no way to know if you will
really be repaid. Even if you are repaid in full, but only much later, it means that you did not
have as much money to reinvest into the business during that time.
Introducing the Will They Pay poster
As the game starts, say that, “There is a new store opening in town. This store will pay RF
120 for each product and will buy as many products as you have to sell to them. The store
however buys on credit and so will only pay you the day after buying the products. The
store will buy your products on Wednesday and pay for them on Thursday.” After the first
selling day, on Thursday, when groups come to collect their money, make an excuse why
you can’t pay them in full, such as “I had a flood and lost half my money so I can only pay
some people”, or “Someone stole my money and I can’t afford to pay you”. Even though
they will complain, be very firm and move the process along by saying they have to select a
Will They Pay card or they will not get paid at all. Make a note for yourself to remember and
when and how much they need to be repaid. This teaches participants that when selling on
credit, there is no way to know if you will really be repaid, but if they do take the risk and
get paid in full, they can make a lot of money, so it all becomes about risks and balances.
Playing the Game (Play for 2 weeks)
On Wednesdays:
 Each Wednesday teams have two selling options:
1. Sell as many products as they like to Gloria, for RF 80 cash each.
2. Sell some on credit for RF 120 each, then have them select a Will They
Pay card from the poster to see when and how much teams will get paid.
On Thursdays:
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On Thursdays, some teams may have money to collect as a result of selecting
cards from the “Will they Pay?” poster. Only pay out if teams remind you.
Introduce Record Keeping:
After playing 2 weeks of the game with the new life cards and ‘Will they pay?’ cards, hand
out a record-keeping sheet to each team (Handout 9.11). While the teams play the game,
remind them that they should also fill in the record-keeping sheet, listing each transaction in
the correct column. Remind groups to update the sheet each Friday as they plan. At the
end of the month, help them add up all the columns, and work out how much they have left
for the next month, seen as savings from the previous month. Discuss the value of keeping
records for keeping track of what they have, and what they owe, and for planning ahead.
Introduce Business Planning:
After playing 1 week of the game with the new life cards and record keeping, allocate 20
minutes at the start of the next game for the participants to make a simple business plan for
a month of running their group businesses. For this plan, each team must set a goal for the
profit they want to achieve at the end of five weeks.
Ask teams to make a simple business plan using handout 9.12 : Our Business activities
calendar, by filling in the amounts of money they plan or expect to receive and pay out
during the 5 weeks. For example: the bank loans; raw materials purchases; cash sales; credit
sales; rent and savings.
Now play the game with each team using their business plan as a guide for each week's
decisions. Ask each team to record their actual performance every week in their copy of the
handout 9.7: Our Business activities calendar. They do not have to operate according to
the plan. The lesson learned is that it is important to make plans, reality change plans so
they keep on needing to be updated, and you can measure how you are doing by comparing
it to your plan.
Give each group a copy of handout 9.11 Record-keeping Sheet to use in this session too.
DEBRIEFING THE GAME
At the end of the game, discuss the risks involved in selling on credit, and the importance of
record keeping and business planning. See Trainer Tool 9.8: Debriefing Questions for
specific debriefing questions for Part 2. Try to get the participants to think back to their
experience playing the game, and try to identify general business lessons learned. Ask them
to write these lessons learned in Handout 10.1 of their Booklets. Ask them to look at the
entrepreneurs on 4.26 and to identify which character their group seemed to play the game
like. Was it different from Part 1? Why or why not?
Also, refer participants to handout 10.2: Lessons and Conclusions, which summarizes the
main points from each session.
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Handout 9.2 : Entrepreneur Profile: Ms. Tycoon
Ms. Tycoon
Out of an RF 200 loan from the Savings Bank, how much do you think Ms.
Tycoon puts into her business (ubucuruzi), how much for personal needs
(gukoresha), and how much for savings (kuzigama)?
U
RF _________
G
RF _________
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RF _________
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Handout 9.3 : Entrepreneur Profile: Mr. Saver
Mr. Saver
Out of an RF 200 loan from the Savings Bank, how much do you think Mr. Saver
puts into her business (ubucuruzi), how much for personal needs (gukoresha),
and how much for savings (kuzigama)?
U
RF _________
G
RF _________
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RF _________
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Handout 9.4: Entrepreneur Profile: Mr. Greedy
Mr. Greedy
Out of an RF 200 loan from the Savings Bank, how much do you think Mr.
Greedy puts into her business (ubucuruzi), how much for personal needs
(gukoresha), and how much for savings (kuzigama)?
U
RF _________
G
RF _________
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RF _________
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Handout 9.5 : Entrepreneur Profile: Ms. Wise
Ms. Wise
Out of an RF 200 loan from the Savings Bank, how much do you think Ms. Wise
puts into her business (ubucuruzi), how much for personal needs (gukoresha),
and how much for savings (kuzigama)?
U
RF _________
G
RF _________
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RF _________
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Handout 9.6: What type of entrepreneur are you?
Do you run your business like:
Ms. Tycoon?
Mr. Saver?
Mr. Greedy?
or
Mrs. Wise?
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Handout 9.7: Business activities calendar
Tuesday
Wednesday
Thursday
Friday
Saturday
Sunday
Buy
Manufacture
Sell
Collect/Pay
Plan
Spend
Rest
Week 5
Week 4
Week 3
Week 2
Week 1
Monday
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Pay rent: RF 100
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Handout 9.8: “What we Bought”
WHAT WE BOUGHT
Week 1
Week 2
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Week 4
Week 5
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Handout 9.9: Lessons Learned / Part 1 (with and without life cards)
Describe some of the most important lessons from the simulation in Session 1:
1. Sales
2. Shopping (at Claire’s Iduka)
3. Bank Loan
4. Opportunities if businesses ran out of money
5. Unexpected Events and Unplanned Circumstances (Life Cards)
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Handout 9.10: Lessons Learned / Part 2 (selling on credit, record
keeping, business planning)
Describe some of the most important lessons from the simulation in Session 2:
1. Selling on Credit
2. Record-keeping
3. Business Planning
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Handout 9.11: Record-keeping Template
DATE
DESCRIPTION
ENTRY
EXPENSES BALANCE
( MONEY ( MONEY
IN)
OUT)
SAVINGS
Added
in
Total
TOTAL
Entry (money in) – Expenses (money out) = Balance (money you have)
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Handout 9.12: Our Business Activities Calendar
Tuesday
Wednesday
Thursday
Friday
Saturday
Sunday
Buy
Manufacture
Sell
Collect/Pay
Plan
Spend
Rest
Week 2
5
How much we will
buy this week:
_______________
6
7
How much we will
sell this week:
_______________
Week 3
12
How much we will
buy this week:
_______________
13
14
How much we will
sell this week:
_______________
Week 4
19
How much we will
buy this week:
_______________
20
21
How much we will
sell this week:
_______________
Week 5
Week 1
Monday
26
27
28
How much we will How much will we How much we will
buy this week:
pay for rent:
sell this week:
_______________ _______________ _______________
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1
2
What will the size How much goes
of our loan be:
into saving this
_______________ week:
_______________
8
9
How much goes
into saving this
week:
_______________
15
16
How much goes
into saving this
week:
_______________
22
23
How much goes
into saving this
week:
_______________
29
30
How much will we How much goes
repay for our
into saving this
loan:
week:
______________ _______________
3
4
How much for
personal
expenses this
week: _________
10
11
How much for
personal
expenses this
week: _________
17
18
How much for
personal
expenses this
week: _________
24
25
How much for
personal
expenses this
week: _________
31
How much for
What will our
personal
profit be?
expenses this
_______________
week: _________
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Handout 9.13: Business activities schedule
Secure money to start the business (your own savings, loan from a bank,
loan from relatives, or money from another source)
Purchase raw
materials
Spend money
on personal
expenses,
deposit money
into savings.
Allocate earnings
between business,
personal expenses and
savings
Manufacture
the product
Sell the
product to a
retail store
or buyer
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Handout 10.1: Lessons and Conclusions
Part 1:
Business activities schedule
Family expenses are important, but your business cannot survive if your personal and family
expenses become too large. It is important to ensure that you have enough money to keep
your business running and to grow your business.
Personal necessities are more important than luxuries (things you want but might not really
need). Only buy luxuries when your business is making enough money all the time so that
you are sure that you can afford them.
People and organizations often charge interest on loans they give to you. You need to plan
to repay the interest, as well as the actual loan.
Your co-operation – with buyers, suppliers, lenders, and even competitors – is an important
element of success.
You can often negotiate a lower cost for raw materials or finished products when the seller
needs money immediately.
Unexpected Costs
It is important for you to plan for unexpected events and costs by saving money in case
these happen.
It is important to spend money on important necessities (such as medical treatment) in
order to prevent future problems.
If you have no savings, you may not have enough money when unexpected costs arise.
Part 2:
Credit Risks and Running a Profitable Business
Selling on credit can be risky. You are often not sure when, or if, you will be paid back.
It is risky to only have a few customers as if they all stop buying your business will close. The
more customers you have, the safer your business is from losing all its customers.
Selling on credit means you will have less money to spend now. Even if you will receive this
money later, you do not have this cash to spend on your business expenses now.
Giving a loan to family and friends can be risky. Family and friends do often not feel as
much of a need to pay back the loans.
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Record-Keeping
It is important for you to keep records to see who owes you money, to assist with planning,
and to see if the business is making money.
Business Planning
As you run your business, it is important to update your business plan with additional
information about what actually happened during the business cycle. Always compare what
you are doing to what you had planned to do to see how your business is doing.
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Trainer Tool 9.1: ‘Raw Material’ Example
(Divide at least 20 pieces of A4 paper into four quadrants, and cut or tear)
-----------------------------------------------------------------------------------------
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Trainer Tool 9.2 : Money Template
(Make at least 20 copies of each template. If possible, put each denomination on a different color paper. Cut out)
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Trainer Tool 9.3 : Patrick’s Iduka
Prepare a flipchart with the heading “Patrick’s Iduka”.
Draw a picture of a store on it. Make sure it has a big sign saying “RF 40 each” on it. Draw a
smaller sign saying “Refunds at RF 20 each”. You might find pictures of a store in a
magazine to use to stick onto the flipchart.
You could cut a picture of someone that represents Patrick from a magazine and stick it on
the poster, or draw a picture of Patrick on the poster.
Patrick’s Iduka
RF 40
RF 20
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Trainer Tool 9.4 : Gloria’s Butiki
Prepare a flipchart with the heading “Gloria’s Butiki”.
Draw a picture of a store on it. Make sure it has a big sign saying “RF 80 each” on it. You
might find pictures of a store in a magazine to use to stick onto the flipchart.
You could cut a picture of someone that represents Gloria from a magazine and stick it on
the poster, or draw a picture of Gloria on the poster.
Gloria’s Butiki
RF 80
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Trainer Tool 9.5 : Claire’s Iduka
Below is a list of items that the groups can buy at Claire’s Iduka, and their prices. For each
item, prepare paper squares (about the size of the boxes on the “What we Bought”
Handout) that contain the name of the item, the price of the item, and a picture of the item
(from a magazine, drawing, or whatever you can find). Using prestik (or tape), stick all of
these items on a flipchart paper with the heading Claire’s Iduka on it. The participants will
remove the squares and take them back to their group’s as they purchase the items. The
groups will take them back to their tables as they purchase the items.
Food: 20
Food: 20
Food: 20
Food: 20
Food: 30
Food: 30
Food: 30
Food: 30
Food: 30
Food: 40
Food: 40
Food: 40
Food: 40
Food: 50
Food: 60
Food: 60
Food: 60
Food: 70
Food: 80
Food: 80
Food: 80
Ice Cream: 10
Ice Cream: 10
Sunglasses: 30
Radio: 150
Clothes: 40
Clothes: 40
Clothes: 70
Clothes: 70
Mobile Phone: 200
Handbag: 200
Shoes: 200
Bed: 300
Sofa: 550
Sunglasses: 30
Wrist Watch: 90
Juice: 10
Juice: 20
Ball: 20
Party: 50
Television: 600
Clothes
RF30
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Trainer Tool 9.6 : Savings & Loans Bank
Prepare a flipchart with a big sign saying “Savings and Loans”.
Draw a picture of a bank on it. You might find pictures of a bank or of money in a magazine
to use to stick onto the flipchart.
Prepare an envelope for each group with the group’s color on it and stick it on the Savings &
Loans Bank poster to represent their savings accounts. They should be able to easily slide
money into and out of the envelope.
Savings & Loans
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Trainer Tool 9.7 : Life Cards
SCHOOL BOOKS
CHURCH DUES
It is the beginning of the school year
and you have to buy school books for
your child. Pay RF 40 now.
The minister is raising money for the
church choir. Decide how much you
will give now.
--------------------------------------------
--------------------------------------------
FOOD
TREAT YOURSELF
Did you buy food last week? If not,
your child is now very ill. Pay RF 30
for doctor’s fees and buy food now.
It has been a very hot day and you
have been working hard.
Will you treat yourself to something at
Claire’s Iduka?
--------------------------------------------
--------------------------------------------
SISTER’S BIRTHDAY
BROTHER’S BIRTHDAY
It is you sister’s birthday and you
want to buy her a present. Decide
how much you will spend at Claire’s
Iduka.
Buy your brother a birthday present at
Claire’s Iduka now.
--------------------------------------------
--------------------------------------------
INSURANCE
FOOD
You have insured your stock against
theft.
You must pay RF 10 for each item you
have in stock now.
Did you spend at least RF 20 on food
last week? If not, then a child has to be
treated at the clinic. Pay RF 20 for
medicine and buy food now.
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DOCTOR BILLS
MOTHER’S DAY
If you did not buy at least RF 30 of
food last week, buy food now and
pay RF 30 for doctor’s fees and
medicine.
Buy your mother a gift from Claire’s
Iduka.
--------------------------------------------
--------------------------------------------
FEED A COLD
BROTHER’S BIRTHDAY
A child has a cold and you need to
feed her good food.
Go to Claire’s Iduka now and spend at
least RF 60.
Buy your brother a birthday present at
Claire’s Iduka now .
--------------------------------------------
-------------------------------------------SISTER’S BIRTHDAY
YOUR ISSUES
You may want to add card ideas of
your own.
It is your sister’s birthday and you want
to buy her a present. Decide how much
you will spend at Claire’s Iduka.
--------------------------------------------------------------------------------------STORM REPAIRS
Your house needs urgent repairs after
a storm.
Pay RF 30 to fix it.
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YOUR ISSUES
You may want to add card ideas of
your own.
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SCHOOL BOOKS
It is the beginning of the school year
and you have to buy school books for
your child. Pay RF 40 now.
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RAIN
Heavy rains have spoilt one unit of
stock. You spend RF 40 repairing it
now.
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QUALITY
FUNERAL
One item you made last week has
been returned because of bad
quality. You spend RF 30 fixing it for
the customer now.
A relative has died. Your family is
collecting for funeral expenses. Decide
how much you will give.
--------------------------------------------
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QUALITY
SCHOOL CLOTHES
One item you made last week has
been returned because of bad
quality. You spend RF 40 fixing it for
the customer now.
Your child needs new clothes for
school.
Pay RF 30.
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PARTY
THEFT
A whole group of friends arrived last
night from a different part of Rwanda
and you had to buy them some food
and drinks. You spent RF 40.
Any money which is not in your savings
account at the Bank has been stolen.
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FOOD
OUCH!
If you did not buy food for your
family last week, then your child is
now very ill. Buy food now and pay
RF 30 for doctor’s fees and medicine.
A dog bit your leg while you were out
selling. The doctor has treated you.
Pay the doctor RF 30.
--------------------------------------------
--------------------------------------------
THEFT
TAXATION
Any money which is not in your
savings account at the Bank has been
stolen.
You are required to pay a business tax.
Pay RF 10 per 2 units for all the items
you have sold this month.
--------------------------------------------
--------------------------------------------
FOOD
FOOD
Friends have come to stay. Did you
buy food last week? If not, you must
buy at least RF 60 worth of food from
Claire’s Iduka.
Did you spend at least RF 20 on food
last week? If not then a child has to be
treated at the clinic. Pay RF 20 for
medicine and buy food now.
--------------------------------------------
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FURNITURE
FOOD
The invoice for your furniture arrives.
You must pay RF 40 now.
Did you buy food last week? If not,
your child is now very ill. Pay RF 30 for
doctor’s fees and buy food now.
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FOOD
Friends have come to stay. Did you
buy food last week? If not, you must
buy at least RF 60 worth of food from
Claire’s Iduka now.
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YOUR ISSUES
You may want to add card ideas of
your own.
--------------------------------------------
FEED A COLD
BROTHER’S BIRTHDAY
A child has a cold and you need to
feed her good food.
Go to Claire’s Iduka now and spend at
least RF 60.
Buy your brother a birthday present at
Claire’s Iduka now.
--------------------------------------------
--------------------------------------------
MOTHER’S DAY
Buy your mother a gift from Claire’s
Iduka.
YOUR ISSUES
You may want to add card ideas of
your own.
--------------------------------------------------------------------------------------YOUR ISSUES
You may want to add card ideas of
your own.
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FOOD
Did you buy food last week? If not,
your child is now very ill. Pay RF 30 for
doctor’s fees and buy food now.
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Trainer Tool 10.1: Will They Pay poster and cards
Copy and cut out the cards below. Attach them on a flipchart paper so that you can’t see what they say. Write the heading “Will They Pay?” on
the flipchart. Write the options on each card at the bottom of the flipchart so participants can see what potential options they could select.
Pay in full at the end of the month.
WILL THEY PAY?
-------------------------------------------------------------------------
WILL THEY PAY?
Pay in full this Thursday.
---------------------------------------------------------------------------
WILL THEY PAY?
Pay only half on Thursday.
-------------------------------------------------------------------------
WILL THEY PAY?
Pay only half at the end of the month.
---------------------------------------------------------------------------
Write it off!
WILL THEY PAY?
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Trainer Tool 10.2 : Life Cards (for after Will They Pay poster is introduced)
Add these cards after you have introduced and explained the Will They Pay poster
BROTHER BORROWS
Your brother wants to borrow RF 100.
How much will you lend him?
HELP A FAMILY MEMBER
A family member is in trouble and
you must lend her RF 40. She
promises to repay you on Thursday.
Select a Will They Pay Card on
Thursday to see how much and when
you will be paid.
Select a Will They Pay Card on
Thursday to see how much and when
you will be paid.
--------------------------------------------
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BROTHER BORROWS
Your brother wants to borrow RF 80.
How much will you lend him?
HELP A FAMILY MEMBER
A family member is in trouble and
you must lend her RF 40. She
promises to repay you on Thursday.
Select a Will They Pay Card on
Thursday to see how much and when
you will be paid.
Select a Will They Pay Card on
Thursday to see how much and when
you will be paid.
--------------------------------------------
--------------------------------------------
HELP A FAMILY MEMBER
A family member is in trouble and
you must lend her RF 40. She
promises to repay you on Thursday.
HELP A FAMILY MEMBER
A family member is in trouble and
you must lend him RF 30. She
promises to repay you on Thursday.
Select a Will They Pay Card on
Thursday to see how much and when
you will be paid.
Select a Will They Pay Card on
Thursday to see how much and when
you will be paid.
--------------------------------------------
--------------------------------------------
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Trainer Tool 9.8 : Debriefing Questions
Part 1
Sales
 How many products were sold?
 How much profit was made?
 Which team made the least money and why?
 Relate the profit to the number of products sold.
Lesson: The more you invest in the business (purchase raw materials) the more profit is
made.
 What assets other than food (clothes, furniture, etc.) did any of the groups acquire
during the month?
Lesson: It is often good to buy / get assets that can help the family to survive. A business
may have less profit, but have spent money on things that the household can keep long
term.
Income Allocation
 Do teams think that they played wisely?
 How do they think they played?
 Which one of the characters displayed on the wall did they play like?
 What poor decisions did they make and what were the results?
 Now that they have learnt the above lessons, how will they act in real-life situations?
 How did the K.U.G. system help them to separate business and family expenses?
 How should they treat the demands of the family?
Lesson: Income needs to be allocated for family expenses as well as business expenses, or
the family could become ill. Businesses may not survive if the personal expenses become
too large, so it is important to ensure that money is put aside to reinvest into the
business.
Shopping at Claire’s Iduka
 How much did each team spend at Claire’s Iduka?
 Did they buy food each week?
 Did they buy necessities or luxuries?
Lesson: It is important to buy personal necessitates. Luxury items are not a priority but
can be considered once a business has a steady cash flow and more money can be
allocated towards personal spending.
Bank Loan
 Were businesses able to pay back their bank loans?
 Why did the bank charge an additional RF 50 in interest that needed to be paid on top
of the initial RF 200 loaned?
Lesson: People and organizations often charge interest when a loan is made. Businesses
need to plan to repay this interest as well as the initial loan.
 Did businesses use the bank to store money? Why is it sometimes useful to store
money somewhere safe?
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Opportunities When Businesses Ran Out of Money
 Did any business rut out of money?
 What did they do?
 Did any have to sell raw materials back to Patrick’s Iduka?
 Did a team in trouble seek assistance from other teams? Could it have helped them?
 Did any borrow money from other businesses?
 Could it be a good business opportunity for businesses to loan money to others or to
buy raw materials or finished product from them at a reduced cost? How?
Lesson: Co-operation is an important element for success.
Lesson: There are opportunities to buy raw materials or finished products from others at a
reduced cost when they need money immediately.
Unexpected Events and Unplanned Circumstances
 How will teams cope with the realities of life, now that they have experienced the
results of their actions?
 How much money had to be spent on the doctor because too little food was bought?
Lesson: There is a need to provide for necessities in order to prevent future problems.
 How much money was lost because the raw materials had to be sold back to Patrick at
a loss?
Lesson: If you have no savings, you end up losing more money when you have unexpected
expenses.
 How much money was lost due to theft?
Lesson: To keep your money safe, keep your savings somewhere safe.
 Did a team in trouble seek assistance from other teams? Could it have helped them?
 Lesson: Co-operation is an important element for success.
Part 2
Selling on Credit
 Did any businesses sell to the Credit Store?
 What were some of the results from selling on credit? How did these impact the
business?
Lesson: Selling on credit can be risky as you are often not sure if and when you will get
paid.
 How did cash and credit sales influence the teams' performances?
 Did teams choose to spread sales to different markets? Why could it be wise to sell
some things to a sure market and not to sell everything to a risky option, rather than
selling everything to the credit store?
Lesson: It is important to understand the associated risks. It is best to manage your risk
by selling into different markets.
 If businesses had sold to the Credit Store at the start of the business cycle (Week 2 or
3) and were able to get paid ‘In Full‘ but only at the end of the month, was this good or
bad for the business?
 How did this impact the cash flow the businesses had to reinvest into the business (buy
more raw materials from Claire) or to pay for unexpected events (from the Life Cards)?
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Lesson: Selling on credit can affect your cash flow, so that even if you are receiving funds
later, you do not have the money to use now – which can limit your business
opportunities. How can you plan for the business to cope with these problems?
Life Cards
 How much money was lost because the relatives did not pay back the money they
borrowed?
Lesson: Loans to family and friends can also be risky. If family and friends have borrowed
money, the business may be starved of the money it needs to run.
Record-Keeping
 Did businesses keep records?
 How did keeping records help?
 Can you think of good reasons for why a business needs to keep good records?
 Did it help to explain the team's performance?
 How could businesses have improved the way they kept records?
Lesson: It is very important to keep records to be able to see who owes you money, assist
with planning, analyze the performance of the business, draw lessons and take corrective
action.
Business Planning
 How closely were you able to follow your business plan over the course of the month?
 When your actions changed during the business cycle, did you update your original
business plan?
 Did you measure progress during the business cycle against your original plan?
 While running your business, what happened that you think could have been
incorporated in your original plan?
 What lessons did you learn from planning before operating your business?
 How was it helpful to have a plan completed before the business cycle began?
Lesson: Business plans are meant to change over time and should be updated with
additional information and realities over the course of the business cycle. As you operate
your business, it is important to measure progress with respect
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Trainer Tool 9.9 : Entrepreneur Profiles: Ms. Tycoon
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Trainer Tool 9.10 : Entrepreneur Profiles: Mr. Saver
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Trainer Tool 9.11 : Entrepreneur Profiles: Mr. Greedy
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Trainer Tool 9.12 : Entrepreneur Profiles: Mrs. Wise
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ENTREPRENEURSHIP Module Post Assessment
Directions:
A. From questions 1-9, chose the correct answer for each statement by
circling the corresponding letter
1. When you need money, which is not a good way to get it:
a. Asking friends or family
b. Working
c. Saving
d. Stealing
e. Borrowing
2. You can save money by:
a. Turning off lights or lamps in the house.
b. Walking instead of taking a moto.
c. Reusing containers to carry other things.
d. Fixing old clothes or shoes.
e. Using things that people have thrown away to make new things.
f. All of the above.
3. Record-keeping and Budgeting:
a. help you to look back (to know how much you are earning, how much
you have spent, and how much you owe).
b. help you to look forward (planning what you spend so that it is less than
what you earn).
c. All of the above.
d. None of the above.
4. When making a financial plan, I should consider the following questions:
a. How much should I save?
b. What should I spend less money on?
c. How will I earn money?
d. What should I do to look after myself when I get older and am no longer
working?
e. All of the above
f. None of the above
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5. To decrease what you owe to others:
a. Do not borrow more money.
b. Speak to people you owe money to, to work out when you can pay them
back.
c. Pay off any debt where people are charging you extra money on what
you owe them.
d. Do not buy anything else or anything expensive while you still owe a lot
of money.
e. All of the above.
6. Which of the following is not a very good use of business money?
a. Buying additional products because you expect an increase in demand.
b. Borrowing from the business to pay for a new television for your family.
c. Repairing a broken light in the production space or retail shop.
d. Hiring an extra person for a short while during a busy period.
7. Which of the following is a benefit of keeping good records?
a. Records allow you to remember who owes you money
b. Records help with general planning
c. Records help to analyze how the business is doing, draw lessons, and
make corrections moving forward
d. All of the above
8. The safest place to save your money is:
a. In the bank or savings group
b. With a friend
c. In a corner of the home
d. Saving is for people who worry too much
9. Selling on credit is:
a. Never a good idea, because people might not pay back
b. Always a good idea, because you can sometimes charge higher prices
c. Can be a good idea, but you should limit how often you sell on credit and
do so carefully
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B. From questions 10 – 20, circle “true” if the statement is correct / right
or circle “false” if the statement is wrong.
10. I need to try to save so that I have money for emergencies or unexpected
things that happen.
True
False
11. True or False: When a business sees a big drop in sales, it usually also sees
a big drop in profits.
True
False
12. True or False: Owners of small businesses do not make enough money to
save for unexpected events, like medical emergencies.
True
False
13. You should always plan how you much you will spend on your business,
how much you will save and how much you will spend on your family.
True
False
14. True or False: Forming partnerships with other businesses in the area is a
bad idea because they are your competitors and cannot be trusted.
True
False
15. Places where I can save money or get loans are banks, microfinance
institutions, cooperative and savings groups.
True
False
16. True or False: One should not put business expenses before personal
necessities, but luxury items can be put off until the business has a steady
cash flow and additional funds can be allocated to personal use.
True
False
17. True or False: A business plan can be updated as you run your business.
True
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False
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18. Even if I have a little money, I can start keeping a record of what I have
and what I spend it on.
True
False
19. I should always spend more money than I have because I can just ask
others for the extra money.
True
False
20. It is important to save. It is important to decide what you want to save
for and how much you want to save.
True
False
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