Youth Bussiness Development and Enttrepreneurial Mentorship Report

Youth Business Development &Entrepreneurial Mentorship
Training: 22nd -23rd May 2014
TRAINING REPORT ON
YOUTH BUSINESS DEVELOPMENT & ENTREPRENEURIAL MENTORSHIP
World Vision-LAMBWE IPA

ACKNOWLEDGEMENTS
We would like to thank ICEDA staff for their logistical support. In particular, we are
grateful for the technical support from George Collins Owuor. Their support for this
youth business development & entrepreneurial mentorship training was
critical. Special thanks go to the participants who are representatives from various
constituencies drawn from Kisumu west, Kisumu central and Seme.
We would like to acknowledge the important support of the youths for their
enthusiasm and participation in learning new concepts. Their contribution forms the
core of this training report. The training will play an important role in enhancing
youth participation in poverty alleviation project.

LIST OF ABBREVIATIONS AND ACRONYMS

CDF
Community Development Fund
CEC
County Executive Member
CSO
Civil Society Organization
HELB
Higher Education Loans Board
ICEDA
Institute for Civic Education and Development in Africa Trust
NGO
Non-Governmental Organization

BACKGROUND
The Institute for civic education and development in Africa (ICEDA) is an
organization that works towards enhancing capacities of the citizens,
enlighten on their rights and obligations and the need to discard their lack of
interest in governance issues at all levels .Right from its inception in 1990 to
date, the organization has had a grass root orientation and outreach. Its
being based in a county is a reflection of its approach. It is a nondenominational and non-governmental organization which strives to be allinclusive in its approaches.
ICEDA envisions a society that creates, nurtures, and sustains responsible,
mature and democratic governance hinged on informed and effective
citizensparticipation for sustainable community development .ICEDA exists
to promote participatory processes aimed at realizing responsible, functional
and visionary community leadership, democratic governance and sustainable
development .

Table of Contents
ACKNOWLEDGEMENTS.......................................................................................1
LIST OF ABBREVIATIONS AND ACRONYMS............................................................2
BACKGROUND.................................................................................................... 2
1.0
TRAINING PROCESS....................................................................................4
2.0
STARTING UP............................................................................................. 4
3.0
SITUATION ANALYSIS OF YOUTHS IN KISUMU COUNTY..................................7
4.0 ENTREPRENURAL MINDSET...........................................................................9

5.0 BUSINESS NETWORKING SKILLS..................................................................10
6.0 STRATEGIC APPROACH TO ENTERPRISE MANAGEMENT..................................13
7.0 PROCUREMENT........................................................................................... 19
8.0 BUSINESS DEVELOPMENT SOLUTION............................................................20
8 .0 LEGAL ISSUES IN BUSSINESS......................................................................22
9 .0 NEGOTIATION IN BUSSINESS.......................................................................26
10. 0 COMMUNICATION AND ENTREPRENEURSHIP..............................................28
APPENDIX 11 TRAINING TIME TABLE........................................................................................ 32
APPENDIX 111 LIST OF PARTICIPANTS.........................................................................................33

1.0 TRAINING PROCESS

The two -days training commenced on the 22nd May and 23rd May 2014.
Broadly the scope of the training was aimed at orienting the Learners to
think and act entrepreneurially by being proactive, creative, innovative,
achievement driven, and with moderate risk taking ability and to equip them
r with the overview of various management aspects that an entrepreneur will
need.
The training topics included:
1. Entrepreneurial Mindset
2. Communication in Business
3. Negotiation skills
4. Networking skills
5. Strategic approach to business.
6. Business development
7. Legal Matters and business Ethics
Training Methodology
The participants in the workshop came to the course with their own peculiar
skills, experiences and interests. The facilitators major responsibility was to
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enable them build on past experience and add new information and skills.
The training included many interactive activities such as role play, group
discussions, storytelling and brainstorming.
2.0 STARTING UP
The introductions included name of participant, constituency represented,
what you do, Expectations likes and dislikes,
Workshop Norms
In order to create a favorable learning environment the participants
developed norms that would guide them during the training sessions. The
norms as enumerated by participants included:
Start and close with a word of prayers.
Punctuality be observed
All cell-phones or mobile phones be put on silent mode
Total respect for each others views and property
Participants Expectations
Participants had an opportunity to express their expectations from the
workshop. A number of expectations were shared in plenary. By the end of
the workshop the participant expressed desire to:
Advance more in business Advance more in business.

More knowledge on how to acquire capital
Learn more on business expectation
Strengthen business
Empower other entrepreneurs
Learn more on entrepreneurship
Engage with likeminded entrepreneurs in development of Kisumu
To be inspired and encouraged
How to maintain customers
How to upgrade business
How to deal with debtors
How to access loans and devolved funds
Responsibilities
During the training the participants elected representatives to undertake
responsibilities to support in creating favorable training environment as
shown in table below:

Responsibilities
Name of
Participant
Welfare Leader
Time Keeper
Spiritual Leader
Energizer
Rapporteur
Session
coordinator
Alvin Otieno
Chris Odera
Grace Bware
Vincent Oduwa
Kemto Maureen
Treezer Onyango
Training Goals & Objectives

The overall objective workshop was to enhance the skills of CBOs
representatives on leadership, management, governance and child
participation for child wellbeing.
Specific Training Objectives
By the end of the training the participants were expected to:
List and explain the importance and role of entrepreneurship in operating
a business.
Apply the entrepreneurial skills of innovation, creativity and decisionmaking in their enterprises
Appreciate the importance and role of effective communication for the
success of the enterprise.
Apply effectively the different formats of communication in operating the
enterprise.
To explore the Key skills and structure of negotiation.
Apply the negotiation skills in business situations
Understand the meaning and processes of business networking.
To explore the benefits of business networking.
Develop skills and inculcate the culture of business networking.
Assisting the participants to appreciate the benefits of planning in
formulating and implementing a business strategy.
Enabling the participants acquire the skills of using planning tools such as
SWOT, PEST, and Competitor Analysis in strategy formulation
Developing the participants capacity to articulate their business purpose
and goals comprehensively.
Appreciate the need and application of legal matters to their business
practice

Opening Remarks
Kenneth Anusu Director at ICEDA welcomed everybody to the training.
Assured everyone that the trainers are qualified and will impact very
important information and that participant should be ready to receive.
Rueben Dali thanked the participants for finding time to be in the training .He
was impressed by the expectation raised by the participants that were
relevant to the objective of the training that would actually be addressed by
the end of the training. George Collins encouraged the participants to
practice agri business as it drives the economy. Youths need to differentiate
between job and work. They need to start thinking objectively and get space
for ourselves as youths.
Key note address was delivered by Hon. Jenipher A. Kere, CEC for Youth
Sports and Culture n Kisumu County. Hon. Kere key points are summarized
below;
Glad that youths have now changed from Gonya mentality to people
who are ready to learn and change their course of life.
Kazi ni
Kazi , This she
reiterated
to stress that
youths
should be ready
to start
from humble
beginnings.
For business
to thrive
identification of
mentorship was
important.
Networking is key in success and the training should provide a platform
for networking and sharing of the training knowledge with other
youths.
Challenged the youth to able to articulate impact of the training
beyond the training period.
Create youths space through meaningful advocacy.
The role of the county in assisting youths is by partnering with other
NGOs and CSO to train the youths and also the individuals could
approach the county government for assistance.
Bursaries for formal and non-formal trainings have been rolled out to
the constituencies.
To take opportunity of the 30% procurement opportunities preserved
for youth and women in government contracts. This will be possible if
they register their business with the treasury. Could do that by visiting
the t the website www.agpo.go.ke
[Type a quote from the document or the summary of an interesting point. You can position the text box
anywhere in the document. Use the Drawing Tools tab to change the formatting of the pull quote text box.]
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3.0 SITUATION ANALYSIS OF YOUTHS IN KISUMU COUNTY.

In context of the training, youth were defined as an individual /person aged
between 18-35 years .The parameters of analysis of the situation in Kisumu
County was agreed to include:
Education
Health
Socio economic
Governance.
In four groups the team brainstormed on the questions below.
a. Briefly describe the situation of the youths in terms of the
parameters above
b. Challenges facing the youths in terms of the parameters
c. Opportunities for the youths
d. Recommendation for the youths and other stakeholders
PRESENTATION
Group 1
Education
Youths in the urban areas are more educated than the one in the rural areas.
Challenges facing the youths in terms of Education
Lack funds for education
In adequate facilities in the institutions
Poor learning facilities
Lack of information
Drugs and substance abuse.
Opportunities for the youths in Education
Devolved funds e.g CDF
Institutional funds e.g HELB,KEPSA
Free Primary education and free secondary education
Recommendation for the youths and other stakeholders in Education
To the youths
Yearn for more information
Be creative
Embrace agro business
Change of attitude
To stakeholders
Proper dissemination of information
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Free fair and transparence in CDF and bursary

Constructing more learning institutions
Upgrading existing institutions e.g village polytechnic
Group 2
Health
Challenges
Accessibility
There are no infrastructures
The health cost is too high .
Attitude towards health services
Lack of confidentiality
Negligence from serve providers
Culture and religion
Opportunities for youths in Health
Farming as a venture using new technologies
Involvement in business using existing funds
Active governance.
Recommendations
Youths face challenges in reproductive health .This makes them a
group that is at risks. A number of programs need to be put in place to
counter this. Most youths are not covered by health insurance policies as
either they lack money to pay or out of ignorance on the importance of the
insurance.
Group 3
Socio economical
Involved in criminal activities
Drug and substance abuses
Negative attitude towards bossiness
Access to capital
Ignorance /
Stringent rules followed during procument process
Bureaucracy in tendering process
Experience and skills in business
Lack of investors
Opportunities for youths on socio economic issues affecting youths
Availability of funds
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Procurement policy that preserves 30% of all government

contacts to the youths.
Entertainment industry
Recommendations
Youths to be encouraged to go for more devolved funds.
Implementation of the 305 procurement policy
Formation and registration of groups
Group 4
Most youths in Kisumu County should be active in governance issues
through voting.
Recommendations
Youths should be trained
Youths should advocate and lobby for the right issues in the
community
Youth to act as watchdog everywhere and act as role models
Stakeholders to do away with the issues of experience yet one is
fresh from college
4.0 ENTREPRENURAL MINDSET

In the contest of the training it was agreed that an entrepreneur has the
following characteristics:
Creative and innovative
Far sighted
Methodical
Investor
Always in touch with people
Risk taker
Team player
Communicates easily
Identifies business opportunities
Should not engage in legal activities.
Entrepreneurial culture
An entrepreneurial culture was shared as consisting of attitudes, values and
beliefs held by a part particular person that leads to entrepreneurial
behaviour and aspirations for self-employment.
Further an entrepreneurial environment was discussed to be contributed by :
Existence of numerous role models
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Opportunity to work , particularly when young, in such

enterprises
Provision of formal or informal knowledge in such spheres
A Brainstorming session came up with the following challenges as facing

entrepreneurs in Kenya
Managerial incompetence
Lack of experience
Poor financial control
Lack of strategic planning
Uncontrollable growth
Inappropriate location
Lack of inventory control
Inability to make the entrepreneurial transition
Challenges faced by entrepreneurs.

Finances
Unhealthy competition
Penetrating into the market
5.0 BUSINESS NETWORKING SKILLS
The session was introduced with three objectives to be achieved at the end
of the training that included:
Understand the meaning and processes of business networking.

To explore the benefits of business networking.
Develop skills and inculcate the culture of business networking.
The following case study guided the session that was discussed in four
groups:
Tinda a food technology graduate from omollo Agar university now wishes
to start up a firm in Homabay to process butter from groundnuts for both
local and export market .Tinda remembers a quote from one of her college
lectures ..for one to succeed in business, she have to develop and
maintain effective business networks, for statistics shows that e 70% of deals
and opportunities arise through networks. ,Tinda has come to you with the
following question.
1. What is a business network
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2.
3.
4.
5.
Is a business network necessary in my case? What is the benefit?

How do I go about creating a network?
Who should form part of my network?
What challenges should I expect to meet while setting up networks and
maintaining business Networks.
Group 1
What is a business network?
Defined as a business activity whereby likeminded business people create
and act on opportunities. The main aim is to come up together and work
towards their goal.
Further it was clarified that there has to be a mutual beneficial relationship.
Is a business network necessary in my case? What is the benefit?
The group agreed that a business network was necessary in Tindas case for
the following reasons,
a.
b.
c.
d.
e.
f.
g.
Getting the word out about her venture

Information - on your target market, specific targets etc
Advice and ideas
Sponsors
Referrals
New friends and associates
More control of your search
Group 2: How do I go about creating a network?

The group shared the following steps that included:
Identifying likeminded people
Sharing ideas with already established business people
Approach the other entrepreneurs
Keeping contact e.g face to face or by phone
Research to be done intensively
Through further sharing it was agreed that the systematic steps would
include:
Systematic information gathering of suppliers,

service providers, users, competitors
government agencies e.t.c in your chain
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Identification of the best potential persons

/organizations
Making contact and conversation with the key

people. This can be done by use of
business/company profile, samples, social
sites, business cards et.cy
Taking opportunities as they arise e.g through
trade fairs, exhibitions, public rallies, religious
gatherings, workshops and conferences, social
gatherings, at school and colleges.
Who should form part of my network?

In Tinda case the goup and plenary agreed that the following people
should form her network:
Community members
Friend and relatives
Established business people both competitors and experts
Government
Suppliers
Legal advisors
Investors
What challenges should I expect to meet while setting up networks and
maintaining business Networks.
a. fear and
b. Not knowing how to network.
Further discussion was on how to overcome the challenges and agreed
as follows:
Why people will not talk to you when you call

They are too busy
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They do not know you

They are afraid you will pressure them
They do not know how to help you
II. Why people will talk to you when you call

They know you
You were referred
You have something to offer
They have probably been in transition in the past
They feel they can be helpful
They are flattered that you respect their opinions
They want to be courteous
They are curious
They may need you someday
They may be actively looking, too
They may want to recruit a friend
They have a desire to help those who help themselves
They are altruistic
Others once helped them
6.0 STRATEGIC APPROACH TO ENTERPRISE MANAGEMENT
The topic was introduced to aim at
Assisting the participants to appreciate the benefits of planning in

formulating and implementing a business strategy.
Enabling the participants acquire the skills of using planning tools such as
SWOT, PEST, and Competitor Analysis in strategy formulation
Developing the participants capacity to articulate their business purpose
and goals comprehensively.
Planning and strategic Planning

Planning and strategic management were defined as follows:
Planning is the process of specifying an organizations objectives, developing
policies and plans to achieve these objectives, and allocating the resources
required to implement the plans.
It is the highest level of managerial activity, usually performed by the

companys Chief Executive Officer (CEO) and the executive team.
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It provides overall direction to the whole enterprise.
Strategic management can be seen as a combination of strategy formulation

and strategy implementation
Role of a manager in the strategic planning was highlighted during the
session to include:
Overseas activity
Supervising
Delegating
Coordinating
Planning
Recruiting and hiring
Advising
Controlling
Monitoring
Leading
The people to lead in business are the employees ,customers suppliers and
other stakeholders
Strategic Management cycle was highlighted as follows:
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The three key elements of strategic planning:
Where is your business now?
Where do you want to take it? Here you need to set out your top-level
objectives. Work out your vision, mission, objectives, values,
techniques and goals. Where do you see your business in five or ten
years? What do you want to be the focus of your business and your
source of competitive advantage over your rivals in the marketplace?
What do you need to do to get there? What changes will you need to
make in order to deliver on your strategic objectives? What is the best
way of implementing those changes - what changes to the structure
and financing of your business will be required and what goals and
deadlines will you need to set for yourself and others in the business?
Think about the business as a whole, for example consider
diversification, existing growth, acquisition plans, as well as functional
matters in key areas.
Strategic Analysis: (Where are we now?)
This involves understanding as much about your business as possible,

including how it operates internally, what drives its profitability, and
how it compares with competitors.
The tools used include:

o SWOT Analysis
o TOWS Analysis
o PEST Analysis
o Scenario Planning
o Five Forces Analysis
o Competitor Analysis
o Market Segmentation
o Directional Policy Matrix
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o Critical Success Factor Analysis

SWOT ANALYSIS
The Kind of analysis forms the basis for synchronizing the farms business
strategy with its current situation, capabilities and external environment.
Strengths
1.
2.
3.
4.
Weaknesses
1.
2.
3.
4.
Table 1: SWOT Matrix
Opportunities
1.
2.
3.
4.
Threats
1.
2.
3.
4.
Strengths.
These refer to:
What is good (e.g. Management, finances, labour, natural resources
etc), those things that you do well, the high value or performance points
or a characteristic that gives the enterprise an important ability or
competitive advantage?
Strengths can be tangible: Loyal customers, efficient distribution
channels, very high quality products, excellent financial condition
They can be intangible: Good leadership, strategic insights, customer

intelligence, solid reputation, high skilled workforce, Strong brand
awareness, Patents, Customer loyalty, Cost advantages, Exclusive access
to resources, Favorable access to distribution channels
Often considered Core Competencies Best leverage points for growth

without draining your resources
Weaknesses:
These are
Those things that prevent you from doing what you really need to do
Since weaknesses are internal, they are within your control
Weaknesses include: Bad leadership, unskilled workforce, insufficient
resources, poor product quality, slow distribution and delivery channels,
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outdated technologies, lack of planning, Weak brand awareness, No

patent protection, Poor reputation among customers high cost structure,
lack of access to resources and lack of access to distribution channels
Opportunities
Opportunities Potential areas for growth and higher performance
External in nature marketplace, unhappy customers with competitors,
better economic
Conditions, more open trading policies, .
Internal opportunities should be classified as Strengths
Timing may be important for capitalizing on opportunities.
Threats
Changes in the external environment that put the firm at risk
Unfavorable trade policies
New regulations
Emergence of substitute products
Changes in consumer behavior or tastes

Common SWOT Analysis mistakes:
a) Conducting a SWOT Analysis before defining and agreeing upon an
objective (desired end state). If the desired end state is not openly
defined and agreed upon, each participant may have a different end
state in mind and the outcome is confusion.
b) Opportunities [external to the company] are often confused with
strengths [internal to the company]. Keep them separate.
c) Another error is to confuse SWOTs with possible strategies. This error is
made especially with reference to Opportunities. To avoid this error, it
may be useful to think of Opportunities as "Auspicious Conditions." It
may also be useful to keep in mind that SWOTs are descriptions of
conditions. Possible strategies define actions.
Simple rules for Successful SWOT Analysis
Be realistic about the strengths and weaknesses of your organization
when conducting SWOT analysis
SWOT analysis should distinguish between where your organization is
today, and where it could be in the future.
SWOT should always be specific. Avoid grey areas
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Always apply SWOT in relation to your competition i.e. better than or

worse than your competition.
Keep your SWOT short and simple. Avoid complexity and over analysis
SWOT is subjective
PESTE ANALYSIS
Introduction
PEST Analysis is a simple, useful and widely-used tool that helps you
understand the "big picture" of your Political-Legal, Ecological-Climate, SocioCultural, Technological and Economic environment. As such, it is used by
business leaders worldwide to build their vision of the future.
PEST Analysis Framework
PEST Analysis Framework

How to use the tool:
To use this tool, follow this three stage process:
1. Brainstorm the relevant factors that apply to you;
The following factors may help as a starting point for brainstorming
(but make sure you include other factors that may be appropriate to
your situation):
Political\Legal:
Government type and Political stability
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Freedom of press, rule of law and levels of bureaucracy and

corruption
Regulation and de-regulation trends

Social and employment legislation
Tax policy, and trade and tariff controls
Environmental and consumer-protection legislation
Likely changes in the political environment
Trade agreements, restrictions, and tariffs
Ecological\Climate:
Climate change and it impact
Annual rainfall
Annual evaporation rate
Incidence of El nino and La nina
Socio-Cultural:
Population growth rate and age profile/distribution
Population health, education and social mobility, and attitudes to

these
Population employment and wealth patterns, job market freedom
and work attitudes
Press attitudes, public opinion, social attitudes and social taboos
Lifestyle choices and attitudes to these
Socio-Cultural changes
Religion
Technological Environment:
Impact of emerging technologies
Impact of Internet, reduction in communications costs and

increased remote working
Research and Development activity
Impact of technology transfer
Level of automation
Technology incentives
Degree to which technology allows for cheaper and/or higher
quality production
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Degree to which technology allows for more innovate products

and services
Opportunities for new distribution channels
New ways to communicate with consumers
Economic:
Stage of business cycle
Current and projected economic growth rates,
Inflation, Exchange rates and interest rates

Unemployment and labor supply
Labor costs
Levels of disposable income and income distribution
Impact of globalization
Likely impact of technological or other change on the economy
Likely changes in the economic environment
GDP per capita
7.0 PROCUREMENT
Procurement in the context of the training was defined as acquisition of
goods and services from an external source.
The steps in Procurement process.
Need Recognition for the good/services

Specific need
Source options
Price and terms
Purchase order
Delivery
Expediting
Receipt and Inspection of purchases
Invoice approval and payment
Record maintenance
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8.0 BUSINESS DEVELOPMENT SOLUTION

Several business services were discussed during the sessions that included:
1. Business Information Services.
This should be a Key service especially at the initial stages. Requirements
for this service are having all sorts of information on the business areas
you wish to support. This will include but not limited to:
Market information, - local, export etc,
Product information
Legal information - Government regulations,
Technologies Existing and Gaps
Skills Requirements
Active players local, national and international and Contacts
Financial requirements
This could be packaged in various media and ways. Brochures, Manuals,
glossary, Directories, Modules, - CDs, Websites, Print.
Cards could be developed so that someone seeking for information could use
it for specifications.
Brokerage and Linkages Services.
This will involve getting the data on all the major players within the value
chain, both at local, national and international level. This will include
service providers, their products, costs,
players what they buy and produce,
Trade and Producer Organizations membership, activities, success,
area of operation etc.
Government services parastatals, ministries, funds operations,
This will also involve
Signposting just giving information where to get specific services.

Linking Arranging conducive environment for two parties to meet and
agree.
Brokerage Going a step further and providing specific services,
including mobilization, legal, guarantees, etc to help the parties have
confidence in one another and agree.
This could be packaged as mini projects to meet specific targets

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Business Support Services.

This may include, Technical skills training, Technology development and
Transfer, Business plan development, Feasibility Studies, Surveys, Customer
Satisfaction Surveys, Book keeping and Accounting, Quality assurance,
Market and Product development, GPRS etc. This may be done in
collaboration with other consultants where necessary.
Business Mentorship and Coaching
This is the act of inducing knowledge, researching, guiding and training as
well as providing technical skills and knowhow. Businesses are built on
concepts and ideas which need to be imparted to others. All these
concepts are found in a business incubator, a sub-topic covered below
Business Incubation
This involves mentoring and business counseling. This is at a higher level
and requires that a number of entrepreneurs are set up in a specific area to
share certain fixed costs and services. They are couched in areas of need for
a specific period of time.
As discussed above, business incubation focuses on different aspects of
entrepreneurship. Incubators should support the growth and ways of
minimizing the failures of start-ups. An incubator therefore should provide
resources that support these ideas. The main functions and resources of a
business incubator should include:
Financing
Depending on the type and nature of an incubator, capital investments are
the foundation that a start-up can be easily built on. A business incubator
can play roles such as offering collateral, guaranteeing loan installments ,
boosting equity value, direct capital injection, providing inventory/stock or
providing cheap-long term loans. The objectives are to have capital base for
businesses that is manageable, feasible, and flexible and has predictable
returns. Small businesses have myriad challenges such as inaccessible
capital since many lack investments that may act as collateral
Provision of Business premise
Established and more financed incubators will provide a work premise that is
competitive, strategic and well resourced. Availability of physical space that
is already paid for will give a start-up competitive advantage since it can
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dramatically reduce capital costs. A strategic location ensures that the

business increases sustenance, visibility and resource sharing.
Coaching and mentoring (as discussed above)
Infrastructure
Infrastructure is perhaps the costliest in the business development
spheres. While other businesses can thrive from home with limited
assets requirements, there are others that require networks in terms of
ICT, quality buildings tailored for functions, access to markets,
transport facilities, processing plants and other ancillary equipments.
Law and regulation policies
Fellowship and association
A business incubator targets a specific from of business .It is therefore
obvious that the businesses supported will have shared characteristics.
When businesses are bound by same rules and regulations, it is only
productive when such organizations form associations or professional
bodies that would have the powers to form rules and regulations that
would ensure standardized services and easier monitoring.
Intellectual property
Abuse of intellectual property is rampant in small businesses. The
process of generating ideas in general is formal and banks on trust
which leads to many start-up ideas being copied and exploited.
Business incubators can protect creativity through legal action,
financing and creating awareness. This would also enable
entrepreneurs learn about trade secrets, copyrights, patents,
subsidiary, joint ventures and other property rights that concern local
or international law.
Knowledge services
Consulting/expertise-Expert services are so expensive making
affordability a major issue in start-ups. Business incubators are
equipped with personnel who can be accessed for free in case of notfor -profit incubators.
Referrals/networking
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Due to exposure, incubators have wide contacts that members can

access by networking with other partners, in say supply chain. With
facilities like subsidized fees and discounts to members, the partners
can practice customer lock-in as well as customer profiling that
increases customer base.
Administration
A business incubator sponsors several smaller businesses.
Administration activities like certification, supervision, planning,
marketing, managing ICT resources, managing accounts, auditing,
regulating or organizing can be easily shared at a reduced cost and
with high efficiency.
9 .0 LEGAL ISSUES IN BUSSINESS

The aim of the topic was to:
Appreciate the need and application of legal matters to their business

practice
Understand the benefits of adherence to law for a sound business.
Why an Entrepreneur should comply with the law
Safety: of assets of entity to meet obligations
Stability: of the economy from the changes in the industry
Structure: protection of citizens from arbitrary power of the

environment and businesses
Public confidence: in the ability of leadership
Convenience: geographic, cost, quality, in use, features
Laws affecting business enterprises

Through a brainstorming session the following were discussed as some
of the laws affecting business enterprises:
Labor laws
Minimum wage laws
Environmental law
Business registration laws
Premises license
Liabilities
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Warranties
Insurance
Risk management
Industry specific laws
Types of Business organization
Four types were highlighted as follows:

Sole proprietorship
This was discussed as follows:
characteristics: Sole proprietorship.
Criteria
Characteristic
Ownership
Legal Personality
Liabilities
Taxation
Owned by one person

Not a legal entity i.e. Not recognized separately from owner
Unlimited, - all the business debts are personal debts
Business not taxed, it is the owner who is taxed.
Partnership
Criteria
Characteristic
Ownership
Legal Personality
Liabilities
Taxation
Governing
document
Owned by between two to twenty persons

Not a legal entity i.e. Not recognized separately from owner
Unlimited, - all the business debts are joint debts of owners
Business not taxed, it is the owners who are taxed.
Partnership Deed or where not in existence governed by the
Partnership Act.
The process of registaringa bussiness company was discussed as follows:

Ste
p#
Stage
/Purpose
Activities and Documents

Required
Where
Cost
Shs.
Obtain
approval for
the business
name.
Registrar
of
Companies
. Sheria
House,
Harambee
Avenue
300
Use the standard

form at the Registrar
office or write a letter
with the three names
you would like to use
for your business.
Address the letter to
the letter to the
Registrar of
Companies, P. O. Box
30031 -00100
Nairobi.
Place your first choice
Name at the Top of
Total
Time
Days
2
Note
* Names will be
rejected if they are
already registered
or too similar to
those already
registered.
* You may only use
the term Limited
in your business
name if you are
starting a Limited
company
27

Register the
business
Register for
a personal
identification
Number
(PIN)
Register for
Value added
Tax (VAT) or
Turnover Tax
the list, followed by

your next two name
choices.
Submit your form
letter with Ksh. 100
per name
reservation.
After two days, return
to the registrar office
for your name
approvals
When you pick up the
approval for the
name of your
business pick up form
BN/2 (statement of
particulars form)
Submit the form BN/2
to the registrars
office with Ksh 800
Collect your
certificate of business
registration after two
weeks
Go to the banking
section of KRA.
Submit the
application for a
taxpayer
identification no.
(Form T.Q.2C) with a
photocopy your
national identification
(ID).
Return after few hours to
collect your P.I.N
For VAT, fill Form VAT
1.
For Turnover Tax Fill
form TOT 1.
Submit copy of the
certificate of
registration and a
copy of proprietors
P.I.N
Collect after 1 day
Registrar
of
Companies
. Sheria
House,
Harambee
Avenue
800
15
Kenya
Revenue
Authority
(KRA)
Offices
country
wide
You may also

register via
internet through
the KRA website
www.kra.go.ke
Kenya
Revenue
Authority
(KRA)
Offices
country
wide
* You must register

for VAT if your
Projected Turnover
if Ksh five million
and above.
* If youre
projected annual
turnover is
between Ksh
500,000 and Ksh
five million, you a
choice between
28

Register for
National
Hospital
Insurance
Fund (NHIF)
Register for
National
Social
Security
Fund (NSSF)
Register for
Pay as you
earn (PAYE)
Fill in form NHIF 33,

Application for New
Employers
Registration, in
triplicate.
Submit an NHIF
application for each
person employed by
your business.
Return after one
week to collect
registration
certificates
NHIF
Offices
Submit the NSSF

application in
duplicate and include
a copy of your
certificate of
Registration
Collect your
certificates after 14
days.
Ensure all your
regular workers
register with NSSF
NSSF
offices
15
Upon presentation of
your businesss PIN,
you will receive forms
P11, P7, P10 and
P10A to complete.
Submit the PAYE
application for each
of your employees.
Return after one
week to collect your
registration
Kenya
Revenue
Authority
(KRA)
Offices
country
wide
countrywide
Countrywid
e
registering for
Turnover or VAT.
* Bear in Mind that
if you are planning
to tender
NHIF is a
mandatory
contribution from
all registered
Kenyans who earn
over Ksh 1,000 per
month.
* You only have to
register for NHIF if
you have
employees.
* Employees
contribute a fixed
sum to NHIF
monthly, to a
maximum of Ksh.
320, which is
deducted from
their salary by the
employer. Find
more on
www.nhif.or.ke
* National social
security Fund
provides
retirement and
disability benefits
to Kenyan workers.
* You only have to
register to NSSF if
you have
employees.
* PAYE is the
income tax
deducted from
employees salaries
on a monthly
basis.
* You only have to
register to PAYE if
you have
employees.
29

documents
8
Register for
Single
business
permit with
your local
Authority
Public Health
certificate,
10
Environment
al impact
Assessment
Collect fill and return

from local authority
with the requisite
fees
The permit will be
processed on the
spot
The local
authority
in which
your
business is
located
varia
ble
* Single business
permit depends on
the type of
business you are
doing and the local
authority you are
operating in
Apply to the PH
department for
Inspection.
Inspection will be
done a report given.
Certificate will be
awarded after
recommendations
have implemented
Public
Health
Varia
ble
14
You will only apply

for this when a
dealing with food.
Employ accredited
consultants to
undertake EIA.
Submit a copy of EIA
to NEMA of certificate
National
Environme
ntal
Impact
Assessmen
t
Varia
ble
varia
ble
This depends on
the time taken by
your consultants to
conduct the study
& submit the
report
Department
,
10 .0 NEGOTIATION IN BUSSINESS
Role play on Negotiation
In order to explore the key skills and structure of negotiation and how to
apply the same in a business situation, the session was carried out through a
combination of brainstorming and role play in two groups.
Group 1 .BUYER
You have a new order in the UK which requires that you supply 10 tons of
processed fish which you will sell at a fixed price of Ksh 25/= per Kilo. U can
buy fish at the beaches form fishermen. You know from market intelligence
that fishermen current prices are between Ksh 24 Ksh 26.
30

A friend of yours has given you contacts of fishermen to negotiate with. Your
objective is maximizing your profits. Please Meet the customer and get a
good deal
Group 2. SELLER
You have been informed by your contacts that a company has received a
large order in the UK and would like to buy fish from you. Your cost of
fishing per Kilo is Ksh 24. Meet them and negotiate the best forward.
The presentation during the role play and discussions afterwards highlighted
the definition of negotiations to mean : involvement of two or more parties
with competing or conflicting interests or needs, working towards an
agreement on how they will cooperate.
Examples of Situations in business which require

Negotiation.
i.
ii.
iii.
iv.
Buying an asset or stock for manufacturing or resale.

Negotiation for staff salaries and other employment terms with staff or
their unions.
Negotiation for different roles and responsibilities for staff, partners
and/or directors.
Hire lease or renting of premises, Machine or equipment.
Use of a facility, financial or otherwise
Why do we negotiate
There seems to be no alternative (People may not otherwise be willing to shift)
To reach agreement
To maintain or strengthen relationships
To be fair ; to take account of both parties perspectives, needs and concerns
To get the best deal possible
And other variables of reasons depending on the situation
The steps in negotiation were highlighted to include:

Preparation
Proposition
Bargaining
Closure
31

11. 0 COMMUNICATION AND ENTREPRENEURSHIP

The session defined communication to mean the process of one person
called the sender passing information through some media to another
person/s (called receiver) and getting a feedback.
Effective communication
The main objective of this session was to enable the participants
communication skills. By the end of this session, the participants were
expected to appreciate the importance and role of effective communication
for the success of the enterprise and apply effectively the different formats
of communication in operating the enterprise.
What is Communication
Communication was defined as the passing of a message from a sender to a
receiver purposely to achieve a feedback. The diagram below was used to
illustrate the communication loop:
The participants also discussed purpose of communication which included to:
Inform
Persuade
32

Explain
Impress
Entertain
Communication patterns in Business organizations were highlighted as follows:
Vertical Internal communication network This is communication between

along bosses and their juniors in a firm
Lateral Internal communication network Is between persons of same rank
in a firm.
Grape Vine Communication unofficial communication passed informally.
External communication network - communication with external parties e.g.
customers, suppliers, government officers etc.
Business correspondence methods discussed through a brainstorming
session were:
Business letters
Memorandum
Circulars
Telegram/Telex/Cables
Email/ website/ Facebook
Press advertisements
SMS Short Text Messages
Posters
Notices
Barriers to Effective Communication

The following are possible barriers to effective communication were also
highlighted during the session:
Different assumptions.
Different points of view.
Emotions.
Misunderstanding of language.
Use of difficult words.
Lack of attention.
Poor clarity of speech.
Conflicting body language.
Sending discouraging feedback.
Cultural differences.
Lack of trust.
33

Too much information
Strategies for Effective Communication

There are various strategies for improving communication in CBOs. The
following ways were discussed during the workshop:
Become sincerely interested in the other person.

Listen well. Check your own understanding of what the other person said.
Try to see things from the other persons point of view.
Use appropriate words.
Speak clearly.
Encourage questions.
Know exactly what you want to communicate.
Think: How is it possible for someone to misunderstand my message?
Ask yourself: Am I giving too much information or not enough?
Use encouraging non-verbal communication.
Check peoples understanding.
Effective Communication practices

Simplicity to the recipients
Timeliness of the information e.g. delivery dates, prices etc
Natural voice
Completeness
Pre
KISUMU CENTRAL
WHAT
WHEN
WHERE
RESOURCES
Form Kisumu 24/5/2014
St.Stephene
central
cathedral
network
church
Networking
24/5/2014
Makasembo
Bussiness
Area
card/posters/
sign board
KISUMU WEST
Sensitization
2/6/2014
Otonglo
Manual/
market
Internent
Networking
14/6/2014
Youth groups
and local
stations
SEME
Sensitization
23/5/2014
Kombewa
Faciliatators
WHO
All members
present in the
training
Edwin
Onyango
ICEDA
Riat youth
group
Alvin
34

Start up
business
incubators
Business
networks
DATE
Thursday
22nd 05
2014
Kombewa
Faciliatator
All
23/5/2014
Kombewa
Youths in
Bussiness
All
TIME
8:00 AM
8:30AM
9:30 AM
10:30A
M
Friday
6/6/2014
8:30
AM
9:00
AM
10:30
AM
11:00
AM
1:00PM
2:00 PM
2:00PM
3:00PM
3:00PM
4:00PM
SESSION
Introduction and climate
setting
Norm, expectations and
Course Objectives
Situation analysis of Youth
in Kisumu County
HEALTH BREAK
FACILITATOR
ICEDA
Entrepreneurial Mindset
Joy
Negotiation Skills
HEALTH BREAK
Communication in
Business
Networking Skills
CLOSEDOWN
SESSION
Thomas
All
All
Thomas
Joy
Workshop leader
FACILITATOR
35

23rd 05
2014
8:00 AM
8:30
AM
8:30 AM 9:00
AM
9:30AM 10:30A
M
10:30A
11:00A
M
M
11:00A
12:00P
M
M
12:00PM 1:00PM
1:00PM
2:00PM
3:00PM
2:00PM
3:00PM
4:00PM
Recap
All
Keynote Address
Hon. Jenipher A Kere
Strategic Approach to
business
HEALTH BREAK
ICEDA
Business Development
Joy
Legal Matters and

Business Ethics
HEALTH BREAK
work plans
Way forward and
Evaluation
Tomas
Thomas
All
ALL
ALL
ALL
NAME OF
PARTICIPANTS
1. Josnick Opiyo
CONSTITUENCY REPRESENTED
SEME
TELEPHONE
NUMBER
0717413441
2. Achieng Esther
SEME
0724615328
3. Alvin Otieno
SEME
0721506400
4. Ochieng Keneth
SEME
0716162481
5. Ondigo Fredrick
SEME
0712654315
6. Teresa Onyango
SEME
0729309998
7. Jimmy Fred
Kisumu west
0716382215
36

8. Ogada George
Kisumu west
0721841304
9. Vincent Aduwa
Kisumu west
0722854027
10.Merceline Ochome
11.Edwin Odhiambo
12.Dinna Akinyi
13.Jackline Adogo
14.Allan Alande
15.Grace Bwari
16.Achieng Irene
17.Angeline Aobo
18.Chris Odera
19.Peter Agina
20.Fredrick Site
21.Dennis Livasia
22.Verion Otieno
23.Oluoch Henri
24.Elias Maga
Kisumu
Kisumu
Kisumu
Kisumu
Kisumu
Kisumu
Kisumu
Kisumu
Kisumu
Kisumu
Kisumu
Kisumu
Kisumu
Kisumu
Kisumu
0707644522
0727992658
0723411085
0707243744
0788468510
0725420623
0705801635
0702881636
0718492842
0720894022
0721503046
0702278778
0728978245
0726502475
0725004032
west
central
central
central
central
central
central
central
central
central
central
central
central
central
central
37

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Youth Business Development &Entrepreneurial Mentorship

Training: 22nd -23rd May 2014

World Vision-LAMBWE IPA

Youth Business Development &Entrepreneurial Mentorship

Youth Business Development &Entrepreneurial Mentorship

LIST OF ABBREVIATIONS AND ACRONYMS

Community Development Fund

County Executive Member

Civil Society Organization

Higher Education Loans Board

Institute for Civic Education and Development in Africa Trust

Youth Business Development &Entrepreneurial Mentorship

Youth Business Development &Entrepreneurial Mentorship

SITUATION ANALYSIS OF YOUTHS IN KISUMU COUNTY..................................7

4.0 ENTREPRENURAL MINDSET...........................................................................9

Youth Business Development &Entrepreneurial Mentorship

1.0 TRAINING PROCESS

Youth Business Development &Entrepreneurial Mentorship

Advance more in business Advance more in business.

Youth Business Development &Entrepreneurial Mentorship

Training Goals & Objectives

Youth Business Development &Entrepreneurial Mentorship

Youth Business Development &Entrepreneurial Mentorship

3.0 SITUATION ANALYSIS OF YOUTHS IN KISUMU COUNTY.

Youth Business Development &Entrepreneurial Mentorship

Free fair and transparence in CDF and bursary

Youth Business Development &Entrepreneurial Mentorship

Procurement policy that preserves 30% of all government

4.0 ENTREPRENURAL MINDSET

Youth Business Development &Entrepreneurial Mentorship

Opportunity to work , particularly when young, in such

A Brainstorming session came up with the following challenges as facing

Challenges faced by entrepreneurs.

Understand the meaning and processes of business networking.

Youth Business Development &Entrepreneurial Mentorship

Is a business network necessary in my case? What is the benefit?

Getting the word out about her venture

Group 2: How do I go about creating a network?

Systematic information gathering of suppliers,

Youth Business Development &Entrepreneurial Mentorship

Identification of the best potential persons

Making contact and conversation with the key

Who should form part of my network?

Why people will not talk to you when you call

Youth Business Development &Entrepreneurial Mentorship

They do not know you

II. Why people will talk to you when you call

Assisting the participants to appreciate the benefits of planning in

Planning and strategic Planning

It is the highest level of managerial activity, usually performed by the

Youth Business Development &Entrepreneurial Mentorship

It provides overall direction to the whole enterprise.

Strategic management can be seen as a combination of strategy formulation

Youth Business Development &Entrepreneurial Mentorship

The three key elements of strategic planning:

Where is your business now?

Strategic Analysis: (Where are we now?)

This involves understanding as much about your business as possible,

The tools used include:

Youth Business Development &Entrepreneurial Mentorship

o Critical Success Factor Analysis

They can be intangible: Good leadership, strategic insights, customer

Often considered Core Competencies Best leverage points for growth

Youth Business Development &Entrepreneurial Mentorship