Report of the Entrepreneurship Skills
Training for Bioscientists in Eastern Africa

Report of the Entrepreneurship Skills
Training for Bioscientists in Eastern Africa
3rd and 4th May, 2012 | Silver Springs Hotel, Nairobi, Kenya

The African Technology Policy Studies Network (ATPS) is amulti-disciplinary network of researchers, private sector actors andpolicy makers promoting the generation, dissemination, use andmastery of science, technology and innovation (ST&I) for African
development, environmental sustainability and global inclusion.
ATPS intends to achieve its mandate through research, capacity
building and training, science communication/dissemination andsensitization, participatory multi-stakeholder dialogue,knowledge brokerage, and policy advocacy.
Published by the African Technology Policy Studies Network
P O Box 10081, 00100 GPO Nairobi Kenya
2012
ISBN:

Published by the African Technology Policy Studies Network

Table of Contents
Acknowledgment

4

1.

Background5

2.

Workshop Opening Remarks

8

3.

Introductions & Leveling of Expectations

10

4.

Setting the Stage

11

5.

Entrepreneurship in Economic Development

12

6.

Establishing a Successful Enterprise

14

7.

Identifying an Innovation that can be Commercialized

16

8.

Managing a Small Business18

9.

Feasibility Study

20

10.

Business Plan

21

11.

Ethics in Running a Small Business

25

12.

Open Forum

27

13.

Innovation and entrepreneurship in the biosciences by30

Dr. Maurice Bolo of The Scinnovent Centre
14.

Technology Licensing by Mr. Sylvance A. Sange of the34

Kenya Industrial Property Institute15.

Intellectual Property by Mr. Sylvance A. Sange of the36

Kenya Industrial Property Institute16.

Open Forum II

37

17.

Feedback from Participants

39

18.

Closing Remarks

41

Annexes

42
Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa | 3

Acknowledgement
We are grateful to the Swedish International Development Agency (SIDA) for providing thefunds for the implementation of Bio Innovate Projects in Eastern Africa. We acknowledge thesupports from our BIPCEA partners including the Kenya National Council for Science andTechnology (KNCST); the Tanzania Commission for Science and Technology (TCST); theUganda National Council for Science and Technology (UNCST); the Ministry of Science andTechnology (MoST) and the Addis Ababa University (AAU), Ethiopia; the Directorate of
Science, Technology and Research (DSTR), Rwanda; the International Livestock ResearchInstitute (ILRI); the Stockholm Environment Institute (SEI); and the International Service
for the Acquisition of Agri-biotech Applications (ISAAA).
The African Technology Policy Studies Network (ATPS) wishes to thank all the bioscienceinnovation scientists in Eastern Africa from Kenya, Uganda, Burundi, Tanzania, Ethiopia and
Rwanda who participated in the Entrepreneurship Skills Training workshop held from 3-4
May 2012 at the Silver Springs Hotel, Nairobi, Kenya for their active participation during theworkshop. We urge them to put into use all that they have learnt during the workshop. Most
importantly, we urge them to organize similar trainings in their respective countries so as toempower other bio-scientists in the region with entrepreneurship skills to be able tocommercialize their innovations, products and processes for sustained development in theregion. The ATPS also thank our Resource persons who facilitated the training sessions
especially Professor Atieno Ndede-Amadi of the Kenya Kountry Business Incubator(KeKoBI) for their commitments and attention to details on the subject. The ATPS wishes toacknowledge the BIPCEA Program Coordinator, Dr. Nicholas Ozor for his leadership andeffective coordination of the program at the ATPS. The ATPS also greatly acknowledge thecontributions from other team members at the ATPS including Mr. Ernest Acheampong, Ms.
Carol Thuku, Ms. Eunice Kariuki, Mr. Richard Murimi and Mr. Nelson Akenga in organizing
and facilitating the training.
Overall, the ATPS acknowledge Prof. Kevin Urama, the Executive Director of ATPS for his
visionary leadership and overall coordination of all programs and activities at the ATPS.

4 | Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa

1. Background
Science, technology and innovation (STI) policies are currently at the heart of national
development discussions in Africa. In Eastern Africa, governments are beginning to actively
support STI development1 including biotechnology as tools for modernizing agriculture andensuring environmental sustainability. In all Eastern Africa countries, STI policies are
beginning to take root. Some Eastern Africa countries, like Tanzania, are reviewing their S&T
policies, while others, like Uganda, are preparing strategies and plans for theirimplementation. This renewed emphasis on STI as a driver for economic growth andsustainable development reflects the African Union's (AU's) commitment to advancing S&T
on the continent and in some ways addresses the goals of AU/NEPAD Africa's Science andTechnology Consolidated Plan of Action, 2006-2010.
Arguably, the continent, and Eastern Africa in particular, could have a competitive edge indeveloping a bio-resource based economy. Already, revolutionary advances in the field of biosciences are changing conditions for utilization of biological resources worldwide, including
Eastern Africa. The application of modern biosciences is, for example, assisting in crop andanimal breeding and improving efficiency in the production of disease and pest resistantcultivars for small scale farmers. Advances in the field of biosciences could present new agroprocessing opportunities, lead to diversification of small-holder production, and increasedemand for local crops, thereby improving rural livelihoods. In addition, bioscienceinnovations will help agro-process industries become more productive and more sustainable
whereby agro-waste could be converted into valuable products such as feed, bio-energy andother valuable by-products while at the same time reducing environmental impacts. BioInnovate, coupled with the BIPCEA project, is uniquely positioned to support the necessary
institutional change for countries to benefit from emerging opportunities foreseen withbioscience innovations.
1

For a recent analysis of STI policies in East Africa, see: Brenner, C., J. Komen, R. Kingamkono, J. Ecuru, J. Omari, D.
Njubi, H. Opolot, and P. Chuwa. 2010. Fostering Bioscience Innovation: Lessons from BIO-EARN. Kampala, Uganda: East
Africa Regional Programme and Research Network for Biotechnology, Biosafety and Biotechnology Policy Development.
Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa | 5

In most of the Eastern African countries, the necessary organizations and policies seem to bein place, which should provide a more enabling environment for the biosciences. However,policy coordination between different branches of government within a country is often
lacking. For example, this is true in the development of policies and regulations regarding
intellectual property protection and biosafety. The key to addressing this gap is in forging links
among key actors at an appropriate time in the innovation cycle and, more particularly, in thelife cycles of the innovations in question. These links will vary with the type of technologicalinnovation (e.g. agricultural, environmental, or industrial) and will depend on whether the
innovation will be disseminated through commercial (market) channels, as in the case of“public good” technologies, or through non-market channels.
The BIPCEA project will help ensure that STI investments generally, and Bio-Innovate
efforts, in particular, result in tangible products and innovations in partner countries. This will
be done by tackling a number of important regional policy challenges affecting bioscienceinnovations in the region, which will include, among others, limited access to new, affordable
and eco-friendly technologies for crop production and agro-processing; difficulties in
information exchange, including sharing of germplasm and its fair and equitable utilization;and few sustainable financing mechanisms for value addition activities and for creation of
bio-based business enterprises.
It is against this background that the African Technology Policy Studies Network (ATPS)
engaged the Kenya Kountry Business Incubator (KeKoBI), led by its Chief Executive
Officer, Professor Atieno Ndede-Amadi, as the Lead Consultant to undertake an assessmentof the Eastern Africa business entrepreneurship environment and use this information as areference point for training bio-scientists from Eastern Africa's research and academic
institutions in entrepreneurship in bio-science innovations. The purpose of the training wasto improve the quality of entrepreneurship for bio-sciences innovations in Eastern Africa.
More specifically, the training was aimed at:> Building up the capacity of bio-scientists by equipping them with the knowledge andskills necessary for bringing out the innovations in their research projects;> Developing skills of bio-scientists for transforming innovative research ideas into
commercializable products;> Introducing bio-scientist to the dynamics of becoming an entrepreneur and establishingbusinesses for their innovative ideas and products> Strategies for influencing policy decisions in their Eastern Africa countries;> Training of Trainers (ToTs) in order to impart the knowledge and skills acquired fromthis entrepreneurship training to other members of their teams (and beyond).

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1.1 Workshop Methodology
The training adopted a stakeholder participation approach so as to ensure active participationof each stakeholder in the identification of challenges, opportunities and strategies forbecoming a successful entrepreneur and in subsequent discussions. Each of the sevensegments of the workshop began with opening remarks from the primary facilitator, followed
by a short lecture with brief intermittent questions and remarks, followed by a facilitatedquestion and answer (Q&A) session.
1.2 Expected Outcomes> Acquisition of requisite skills and knowledge on successful:- enterprise establishment through feasibility studies and business plans- small business operations and management- technology transfer and commercialization of research innovations- technology licensing and intellectual property> Entrepreneurial skills and knowledge for translating innovative ideas into
commercializable products;> Enhanced ability to establish and run successful enterprises capable of generating
employment out of innovative ideas to fill youth employment gaps, in the long run.
1.3 Expected Outputs> An Entrepreneurship Training Manual for Bio-Sciences> A workshop Report

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2. Workshop Opening Remarks
The workshop opening remarks were done by Dr. Nicholas Ozor,
Senior Researcher at ATPS, on behalf of Prof. Kevin Urama,
Executive Director of ATPS, who was away on international
travels. Dr. Ozor welcomed participants to Kenya, to Nairobi,
and to the two-day training workshop. He proceeded to explain
the rationale for the training and to underscore its significance.
Specifically, he pointed out that the training is very useful, notonly to the individual participants, but also to both the teammembers of their projects at home and to their countries at large. He pointed out that having
gone through this training, which was also considered a 'training-of-trainers', it was expectedthat participants would launch and facilitate similar trainings in their own countries thereafter.
He then wished them successful deliberations at the workshop and a good stay in Nairobi forthe two-day duration of the training.
On behalf of the Executive Director of ATPS, welcomed and thanked all the participants fortheir participation in the important training on entrepreneurship for Bio-Scientist in Eastern
Africa. He reiterated the importance of the BIPCEA project in filling an important gap inproviding a link between overall bioscience and STI policy initiatives in the region;international and regional initiatives for bioscience capacity development and existing
research networks in the region, thereby making important contributions to STI developmentin the region. He reminded the participants of the objectives of the workshop which is tobuild the capacity of the bio-scientist in entrepreneurship in order to equip them with therequisite skills and knowledge for small enterprise establishment, management andoperations, techno-economic feasibility, due diligence and technology licensing among othersin their respective countries. He emphasized that enhancing the capacity of bio-scientist was
crucial to fully harness the potentials of bio-innovations for sustainable African development.
He noted that acquiring this capacity, required regular experiential learning through systematictraining programmes for key actors in the sector. He thanked the Lead Consultant and her
8 | Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa

team from the Kenya Kountry Business Incubator (KeKoBI) for accepting to train theparticipants. In conclusion, He urged the participant to participate actively in the training andensure that the goals of the workshop are realized at the end.

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3. Introductions & Levelingof Expectations
Dr. Ozor undertook introductions of all delegates that were present at the workshop. He
started by introducing the ATPS team that was present to facilitate the workshop. He thenproceeded to introduce each of the training participants present, and concluded byintroducing the team of consultants facilitating the training. Dr. Ozor then proceeded to level
expectations of participants by giving a brief introduction of the content of the training andthe modalities of executing the training. He took participants through the two-day
programme, pointing out the topics to be covered in each, and the duration of each topic. Hedrew the attention of participants to the programme, pointing out that there were a total offour sessions, two mornings and two evenings, and that there would be an open forum or a
discussion period at the end of each session. This notwithstanding, participants wereencouraged to ask questions and to give remarks during content presentation. At this point,
Dr. Ozor invited the Lead Consultant, Prof. Ndede-Amadi, to begin the training.

10 | Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa

4. Setting the StageThe Lead Consultant took participants through a series of key
topics that are essential to adequately prepare bio-scientists toventure into the arena of entrepreneurship for the purpose ofcommercializing their innovative research ideas and products.
She discussed some key issues which she has come to believe
underlie the relative lack of success in entrepreneurial
endeavours in the region and the continent. She expressed
concern that entrepreneurship has eluded Africa and Africans
for a long period of time now, and this has contributed to the low success rates in establishingand sustaining businesses in Africa. She pointed out that the content of the two-day training
would cover a total of eight (8) topics which constitute key strategies for building a strong
entrepreneurial foundation for business, and which would include: strategies for establishinga successful enterprise; identifying an innovation that can be commercialized; managing asmall business; feasibility study development; business plan development; ethics in running asmall business; technology licensing; and Intellectual Property (IP).

Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa | 11

5. Entrepreneurship in Economic
Development
To underline the role of entrepreneurship in economic development, the Lead Consultant
took participants through a case study of Kenya in the context of ICT–enabled
entrepreneurship. The case study looked at the impact of ICTs on SMEs, the challenges facedby SMEs, the national policy and regulatory environment, Kenya's ICT SME landscape,business incubation as a mechanism for increasing the survival rate of SMEs, businessincubation in Kenya, and the link between research, policy, and practice in the context ofbusiness incubation.
5.1
Business incubation
The case study pointed out that business incubation has been identified as an intervention
mechanism that can help alleviate much of the ailments in the SME sector, and as a possible
intervention mechanism that can help address the entire spectrum of the SME businessenvironment challenges. Like any other method of intervention, however, businessincubation can only be effective in the face of enabling policies and regulations. In Kenya thepolicy and regulatory environment regarding SMEs has been found to be either structurally
weak or non-supportive. A robust supportive environment made possible by adequate
business incubation policy frameworks is, therefore, necessary. Brazil was discussed as thecase study of a country where research has informed policy that has in turn informed practicewith tangible successful results. For example, the survival rate of new technology-based firmsin Brazil was well above 90% over a five-year period. By 2009, Brazil was able to attribute partof its GDP growth to the higher survival rate of small businesses – especially in thetechnology sector.
5.2 Case Study Takeaways
Takeaways from the study included the following:> ICTs have contributed positively to SME growth, not only in Kenya, but throughout theglobe
12 | Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa

>
>

>

>

>

the growth of SMEs has had positive contributions to economic development
the business environment In Kenya has been hostile to SME growth due to a number offactors including a poor policy and regulatory environment, poor financial systems,
technological challenges, and lack of development support services – which include
education and training
with regard to development support services, the study found that owner managers withmore education and training were more likely to be successful than their counterparts
with less education and training
with regard to technological challenges, the study concluded that SMEs are incapable ofsourcing, evaluating, and adapting technologies effectively independently and sogovernment policies should aim to develop these capabilities in SMEs throughsupportive institutions
with regard to finance, the study found that the combined need for finance and the lackof access to SME friendly lending has led to the rise of Pyramid Schemes that promise
hope for SMEs seeking alternatives

5.3 Case Study Conclusions
The study reviewed the strategic utilization of ICTs in the SME sector in Kenya. The goal
was to identify ICT utilization trends in the SME sector and how it has influenced businessgrowth and competiveness. In spite of the relative success of ICT SMEs, the study observedthat inadequate financing of SMEs in Kenya had curtailed ICTs' leverage in businessdevelopment. Attempts by SMEs to seek alternative financing instruments have largely failed
due to lack of supportive regulations in the financial markets. The study found that, ingeneral, financial institutions were reluctant to provide financing at the infancy stages of abusiness, with most of them waiting to finance SME at the growth stage, when the future wasmore predictable. The study also observed that financing institutions are reluctant to financetechnology startups, probably because technology does not provide for good collateral.
Among the challenges facing SMEs is lack of growth and development support services. For
example, business owners have been found to have inadequate ICT skills and access and,
therefore, fail to take leverage from their technological investments. It concluded that studies
on ICTs' support to business have shown that strategic investments in ICTs can enhance
growth, profitability, and competitiveness and that the role ICTs have played in SME growthand development has been major.

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6. Establishing a Successful EnterpriseProf. Ndede-Amadi indicated that in order to start, operate and grow a profitable small
business, there are certain key intrinsic and extrinsic components such as attributes, behaviors,
attitudes, and practices that must be fully developed, implemented, and managed by a small
business owner. These include: doing what you enjoy; taking what you do seriously; planningeverything; managing money wisely; asking for the sale; remembering it's all about thecustomer; becoming a shameless self-promoter (without being obnoxious); projecting a
positive business image; getting to know your customers; leveling the playing field withtechnology; building a top-notch business team; becoming known as an expert; creating acompetitive advantage; investing in yourself; being accessible; being knowledgeable; building
a rock-solid reputation; selling benefits; getting involved; grabbing attention; mastering the artof negotiations; designing your workspace for success; getting and staying organized; taking
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time off; limiting the number of hats you wear; and following-up constantly. Throughout thecontent presentation, she backed each of these components with practical examples ofsuccessful entrepreneurs and entrepreneurial initiatives, either from her own personalobservations and experiences or from the entrepreneurial and small business development
literature.

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7. Identifying an Innovation that can be
Commercialized
The Lead Consultant outlined five important considerations necessary for identifying
potential innovations that can be commercialized, which include commercialization;technology transfer; technology process, technology readiness; and commercializable
Innovations. A comprehensive definition of each concept was provided. Commercialization
was defined as the process that converts ideas, research, or prototypes into viable productsthat retain the desired functionality. The commercialization process was defined as having thefollowing three key aspects:> looking at several ideas to identify one or two products or businesses that can besustained long-term (the funnel);> a stage-wise process where each stage has its own key goals and milestones; and> involvement of key stakeholders early, including customers
Technology transfer was defined as the process of sharing skills, knowledge, technologies,
methods of manufacturing, samples of manufacturing and facilities among universities,
industry, governments and other institutions. The technology transfer process was defined asthat of identifying research which has potential commercial interest and developing strategies
on how to exploit it. Technology Readiness Level (TRL) was defined as one of several
available methods of identifying an innovation that can be commercialized, and a measure toassess the maturity of evolving technologies prior to commercialization. The advantages ofusing TRL include the following:> It provides a common understanding of technology status> It is a tool for risk management> It is useful for making decisions concerning funding of the transfer process> It is useful for making decisions concerning transition of technology
On commercializable innovations, it was observed that management needs to continually
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focus resources on the innovations with the greatest potential for commercial success;determine which innovations are truly capable of producing new wealth; focus on theinnovations that are truly the right ones to put money and resources behind; separate the truly
viable innovations from all the rest; understand that commercial viability is what separates an
excellent innovation from good ones; and identify 'if', 'why', or 'why not' an innovation has thepotential for commercial success.
On commercializing Innovations, it was pointed out that any business that intends tocommercialize an innovation should first undertake an analysis of the innovation's profit
extraction potential. A few internally developed tools that can prove useful in identifying
innovations for commercialization were identified as a questionnaire for ranking innovations
and commercializability criteria for evaluating a technological invention. On
commercialization Strategy, the series of financing options that a company may consider
when moving its technology from concept to the marketplace were discussed.

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8. Managing a Small BusinessIn this part of the training, the Lead Consultant highlighted pertinent areas critical to runninga successful small business. It explored problems faced by small businesses, the legal
environment, the competition, sourcing for funds, and publicity for the business. The
fundamentals required for creating a viable venture were also discussed. A small business was
defined as a business that is privately owned and operated, with a small number of employees
and relatively low volume of sales. Among the advantages of a small business, are that a small
business can be started at a very low cost and on a part-time basis. Among problems faced bysmall businesses, it was pointed out that they often face a variety of problems related to theirsize, and that a frequent cause of bankruptcy is undercapitalization. On marketing the small
business, it was discussed that finding new customers is one of the major challenges for small
business owners.
On principles of small business management, it was posited that managing a small business is
not fundamentally different from managing a large organization. One major difference,
however, is that a small business is generally run and managed by an owner manager, who isoften the entrepreneur him/herself, whereas a large corporation is often run by a manager
who does not necessarily own shares in the company, and that the rest is just a matter ofdifferences on scale – a small business operates on a very small scale compared to a
corporation. The four basic management concepts that allow any organization to handle
planned, tactical, and set decisions as planned, that give rise to the four concepts ofmanagement which are to plan, organize, direct, and control – were discussed.
With regard to growing the business, the following four over-arching strategies for
growing a business were discussed:> Get more customers> Get customers to buy more frequently> Get customers to spend more money per transaction> Keep customers longer
18| Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa

The following ten (10) strategies for expanding a business were discussed: open anotherlocation; offer the small business as a franchise or business opportunity; license the product;
form an alliance; diversify; target other markets; win a government tender; merge with or
acquire another business; expand globally; and expand to the Internet.

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9. Feasibility Study
A comprehensive business feasibility study contains detailed information about the businessstructure, the products and services, the market, logistics of how the business will actually
deliver a product or service, the resources needed to make the business run efficiently, as wellas other information about the business. The importance of a feasibility study is captured in
the following activities:> Listing in detail all the things you need to do to make the business work;> Identifying logistical and other business-related problems and solutions;> Developing marketing strategies to convince a bank or investor that your business isworth considering as an investment; and> Serving as a solid foundation for developing your business plan.
The Components of a Feasibility Study include the following:> Description of the Business: The product or services to be offered and how they will bedelivered.
> Market Feasibility: Includes a description of the industry, current market, anticipatedfuture market potential, competition, sales projections, potential buyers, etc.
> Technical Feasibility: Details how you will deliver a product or service (i.e., materials, labor,transportation, where your business will be located, technology needed, etc.).
> Financial Feasibility: Projects how much start-up capital is needed, sources of capital,
returns on investment, etc.
> Organization Feasibility: Clearly states what legal and operational structure will work forthe organization. These include professional skills necessary for achievement of its aims.

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10. Business Plan
If the feasibility study indicates that the business idea is sound, the next step is a business plan.
The business plan continues the analysis at a deeper and more complex level, building on thefoundation created by the feasibility study, and has three primary functions:> To serve as an Action Plan
> To serve as a Road Map> To serve as a Sales Tool
Before beginning to write a business plan, however, it is important to consider the following
four core questions:> What service or product does your business provide and what needs does it fill?
> Who are the potential customers for your product or service and why will they purchaseit from you?
> How will you reach your potential customers?
> Where will you get the financial resources to start and run your business?
Parts of the business plant will generally include the following:> Descriptive Narrative of Your BusinessWithout going into detail, this section should include a high level look at how all of thedifferent elements of the business fit together.
> The Executive Summary
The executive summary is the most important section of the business plan as it provides
a concise overview of the entire plan along with a history of the company. Contents ofthe Executive Summary include the following:> The Mission Statement briefly explains the thrust of your business. It could be twowords, two sentences, or a paragraph. It should be as direct and focused as possible, andit should leave the reader with a clear picture of what your business is all about> Date business began> Names of founders and the functions they perform
Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa | 21

>
>
>
>
>
>

>

Number of employees
Location of business and any branches or subsidiaries
Description of plant or facilities
Products manufactured or sold /services rendered
Banking relationships and information regarding current investors
Summary of company growth including financial or market highlights (e.g. yourcompany doubled its worth in a 12-month period; you became the first company in yourindustry to provide a certain service)
Summary of management's future plans

10.1
General Company Description
In this section is articulated the Vision and Mission Statements of the business, its goals,
objectives, and business philosophy. A general company description mainly dwells on thecurrent status of the company and provides a brief of its future operations. "What business
am I really in?" is a question that informs the purpose of the business and one that every
business owner has to ask himself.
10.2
Operational Plan
Every business should have a plan for its operations which should address issues of service or
product line, production, location, accessibility, the legal environment, inventory, suppliers,
personnel and management, and credit policies, among others.
10.3
Organization & Management
This section should include the company's organizational structure, details about ownershipof the company, profiles of the management team, and the qualifications of the board of
directors. Who does what in the business? What is their background and why are they beingbrought into the business as board members or employees? What are they responsible for?
10.4
Professional Advisory Support
Many businesses use outside advisory and support services in addition to management andother personnel.
10.4.1 Board of Directors
The major benefit of an unpaid advisory board is that it can provide expertise that thecompany cannot otherwise afford. A list of well-known, successful businessowners/managers can go a long way toward enhancing the company's credibility andperception of management expertise.

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10.5
Marketing Plan
The market analysis section of the business plan should illustrate knowledge about theparticular industry the business is in. It should also present general highlights and conclusionsof any marketing research data that has been collected. This section should include anindustry description and outlook, target market information, market test results, lead times,
and an evaluative assessment of the competition (specific details of the marketing researchstudies should be moved to the appendix section of the business plan).
10.6
Personal Finance
Personal finance is the application of the principles of financial economics to an individual's
financial decisions. In this section the following information should be included:> How much money will you need at various points in the future?
> How do you go about getting that money?
> What is your annual income?
> How can you increase your income?
> What are your annual expenses?
> How can you reduce your expenses?
> How do you best budget for your available income each year?
> How much money can you save each year?
Include personal financial statements for each owner and major stockholder, showing assets
and liabilities held outside the business and personal net worth. Include the following
information:> Who are the partners in the business and what is their net worth?
> Where is your operating capital going to come from?
> What are the possible sources of capital finance?
10.7
Capitalization & Startup Expenses
Capitalization denotes the total amount of funds used to finance a firm's balance sheet and is
calculated as market capitalization plus debt. Market capitalization is the number of commonshares multiplied by the current price of those shares. Capitalization, therefore, is a measureby which we can classify a company according to size. Starts-up expenses, on the other hand,
are the resources applied on the conceptualization, onset and early stages of the developmentof a business entity.
10.8
Financial Planning
The broader financial plan consists of a 12-month profit and loss projection, a four-year
profit and loss projection (optional), a cash-flow projection, a projected balance sheet, a
break-even analysis, a ratio analysis, and a sensitivity analysis. Together they constitute aReport of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa | 23

reasonable estimate of the company's financial future. Most importantly, the process of
thinking through the financial plan improves insight into the inner financial workings of thecompany.
10.9
Funding Request
In this section, you will request the amount of funding you will need to start or expand yourbusiness. If necessary, you can include different funding scenarios, such as a best and worst
case scenarios, but remember that later, in the financial section, you must be able to back up
these requests and scenarios with corresponding financial statements. You will want toinclude the following in this section:> your current funding requirement> your future funding requirements over the next five years> how you will use the funds you receive, and> any long-range financial strategies that you are planning that would have any type of
impact on your funding request.

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11. Ethics in Running a Small Business
Regardless of size, all businesses have the same objective, that of making profits, which
necessitates the same operational model. Therefore, business ethics and related issues such as
corporate social responsibility (CSR), are not just big business issues, they are issues core tosmall business as well. Ethical business practices include assuring that the highest legal andmoral standards are observed in relationships with the people in the business community –including the most important person in the business - the customer. Ethics involves learning
what is right or wrong, and then doing the right thing. However, "the right thing" is relative.
Most ethical dilemmas in the workplace are not simply a matter of choosing between right andwrong, it is often much more involved than that.
11.1
Business Ethics
The concept of business ethics has come to mean different things to different people.
However, it is generally regarded as knowing what is right or wrong and doing what is right in
the workplace, with respect to their effects on products or services and with regard to
stakeholders.
11.2
Managing ethics programs in the workplace
A business can manage ethics in the workplace by establishing an ethics management program.
Ethics programs convey company values, often using codes and policies to guide decisions andbehavior, and can include extensive training and evaluation, depending on the organization.
11.3
Corporate Social Responsibility
Corporate Social Responsibility (CSR), also called corporate conscience, corporate citizenship, social
performance, or sustainable responsible business is a form of corporate self-regulation integrated intoa business model. CSR policy functions as a built-in, self-regulating mechanism through whicha business monitors and ensures its active compliance with the spirit of the law, ethicalstandards, and international norms. The goal of CSR is to embrace responsibility for thecompany's actions and to encourage a positive impact of its activities on the environment,
Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa | 25

consumers, employees, communities, stakeholders and all other members of the publicsphere who may also be considered as stakeholders.
11.4
Ethics in a Small Business
A small business owner, just like any other business owner, needs to behave ethically, and has
to accept responsibility for the impact the business has on society. To develop a code of ethics
for the small business, use the following guidelines:
11.4.1

Identify the general principles that would lead to fair business practices

11.4.2Check with the industry association for basic standards to review

11.4.3

Allow that ethical questions do not always have a unique, faultless answer

11.4.4

Write out specific statements that will assist in making day-to-day ethical decisions

11.4.5

Apply the code of ethics to a written policy and procedures manual identifying majorrules for operating the business11.4.6

Train employees (and family members) to make ethical decisions about the business

26 | Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa

12. Open Forum
12.1
One participant underlined the crucial nature of research and policy in thedevelopment of business incubators and entrepreneurship in Eastern Africa countries. He
was of the opinion that these countries have failed to clearly define small and medium
enterprises (SMEs) and micro and small enterprises MSEs), and to draw a line between the
two. He noted the importance of research and policy in enhancing practice and pointed outthat until we can put policies in place that will define the standards of what MSEs and SMEs
produce, regulate their activities in terms of the quality of their products, then they willcontinue to languish in sub-standard products, hindering their capacity to grow. It is therefore
necessary for researchers to link up and to effectively interact with policy makers to educate
them on research findings and to lobby them to enact policies based on information given tofarmers by researchers.
12.2
A second participant asked whether there is an environment that promotes local
incubation. For example, is the selection process for incubated companies rigorous enoughto ensure success at the end of the incubation programme?
12.3
A third participant wanted to know where business incubation, which had dominatedtheir earlier discussions, should be hosted. He asked whether business incubation
programmes should be based in academic institutions or if they should be in the hands of theprivate sector or whether they should explore the public-private partnership approach. In her
response, the Lead Consultant emphasized that there is not one size fits all incubation
programmes but that from her professional experience, the most successful programmes
have been private sector driven business incubators.
12.4
Other considerations that came up during the open forum included the crucial roleof governments in ensuring enabling policy and regulatory environments. There was alsoemphasis on effective collaboration-partnership-network-interconnectedness in this era toundertake successful entrepreneurial projects.
Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa | 27

12.5
Dr. Ozor asked participants to deliberate on two essential questions and to provide
their experiences.
12.5.1 Questions 1:
Discuss one striking principle for establishing a successful enterprise.
In response, participant enumerated the following responses:> Self programming- planning> After sale service- follow up – creates a re-enforcement> Importance of knowing your customer> Establishing markets and knowing the demand for your products> The use of ICTs
> Enabling policy environment for enterprise to survive> Government support through establishment of institutions to facilitate
entrepreneurship and enterprises> The importance of knowing our competitors> Asking for the sale - as scientist we assume that people should know what we know
> Africa lacks successful (business model) for incubation and entrepreneurship sharing no successful stories to share in Africa on how to undertake entrepreneurship> Profitability framework for the execution of the project and aftermath> Getting to know your customer - as scientist we are driven by publications, however weare driven to promote the applicability of what we research on. Scientists fail to deliver
their output results to policy makers. We should have a clear mindset of whom to target beneficiaries> Be known as an expert> Political constraints> Having a mind to create and innovate> Business plan
> Establish the viability of the intended business - looking at the cost benefit analysis,competitors and risk analysis> We need to localize our research into the local context
12.5.2
Question 2
Why are we as scientist unable to establish successful businesses?
Below are responses from participants:> Because of fear of failure – fear of personal and institutional failures due to lack of open
mindedness and a superiority complex (do it right or do nothing)> We make too many negative assumptions – the environment is hostile to scientists
establishing businesses> The lack of eagerness to go beyond what we researched on as scientists. The temptation
28 | Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa

>
>
>
>
>
>
>

to remain in our comfort zones.
Lack of initiative and drive for business
Lack of enterprise and business culture
Poor valuation of business and money
Ignorance – failure to transform research output into viable enterprises (doing research
as a business enterprise)
Lack of entrepreneurial skills
Inadequacy of our generic education training
More practical skills is required

12.6 In her response to comments from participants the Lead Consultant made some
remarks concerning why scientists have not been able to successfully enter the businesslimelight. She stressed on the importance of role modeling which creates the “can do” spirit,
as a key ingredient for establishing a successful business. She reiterated that the current
education system is too theoretical, often failing to provide the needed practical experience tostudents. She also observed that Africa has been victim of an education system and culture
developed and left behind by the colonial masters – whose primary objective was not to create
African entrepreneurs. Lead Consultant also brought up the issue of lack of vision andpassion to attain greater heights in business and the failure to foster partnerships for businessas limiting the capacity of scientists to establish successful businesses. For example, scientists
are generally not good business managers, but partnering up with others in the social sciences
will allow them to set up and run successful businesses.

Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa | 29

13. Innovation and Entrepreneurship in
the Biosciences by Dr. Maurice Bolo of
The Scinnovent Centre
The Consultant began his presentation by elucidating the proand anti- dichotomy in biotechnology/biosciences. He indicatedthat bioscience, with its emphasis on biotechnology, is an
instrument with positive and negative consequences for society.
He took the position that bioscience causes social change but isitself a form of social change and that developments in thebiosciences can be tailor-made to fit local contexts. He noted thatthe world is currently witnessing a transformation beginning by
new science and proceeding by way of technology and markets to a new society. He also notedthat the success of science has led to radical modifications of social behavior (e.g. Advances in
reproductive health have challenged traditional norms). He raised the argument that scienceand technology appear to be compromising the integrity and uniqueness of human life, e.g.
gene sequencing and cloning, and therefore the impact of new technologies are seen as
undermining the meaningfulness of industrial-age social constructions.
He observed that the implication for entrepreneurship in biosciences is that the rapid
development and application of digital and genetic technologies in a globalizing world showsthat we are moving from industrial era to a network era. In this network era, productivity andcompetition is increasingly determined by the knowledge and information as well as
technologies. Therefore networks have thus become the typical current form of productive
cooperation. In the networks, the form of cooperation is no longer guided just by the'entrepreneur' but by the scientist/researcher who creates the products. The
scientist's/researcher's role has evolved to include more creation of cooperative links,
maintenance of communication channels, exchange, appropriation and injection of
30 | Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa

appropriate information into new products. This is to say that scientists/researchers are
increasingly being transformed into “Sciento-preneurs”.
The Consultant then highlighted certain characteristics that should be possessed by “Scientopreneurs”, which include their ability to:> build up networks (networking skills)> accept people and their ideas and to exchange information (socialization skills)> learn to adapt to different networks (flexibility and adaptability)> integrate input from different disciplines (multi-disciplinarity)> become used to mobility and communicate in the language of the target audiencebeyond the peer community (e.g. policy-makers, markets, users)
The Consultant further outlined three key pillars of bio-entrepreneurship: management,
capital, and technology. On management, he noted that no transformation of technology
opportunity into product sale can ever occur without skilled managerial capability, and thatthe skill sets required are wide ranging and evolve with the life of the company. For example:> at start-up stage: critical skill sets include the ability to direct R&D and communicate thecompany's promise to the financial community.
> at commercialization stage: manufacturing and commercialization capabilities andcollaborations.
> as it approaches the market: marketing and sales agreements have a bearing on profit andloss.
> adapting to the change from a R&D driven to a market driven culture should be managed
well.

Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa | 31

On capital, he indicated that access to financing, especially long-term financing, is a big
challenge to many African companies and that the case for R&D/innovation/science-based
companies is likely to be a lot worse due to the inherent risks in innovation (no guarantee forsuccess in the market).
On technology, he observed that the biotechnology industry is anchored on three platform
technologies namely: recombinant DNA; monoclonal antibodies and gene-splicing. Most
companies still rely on the academia for sources of new technologies. The universities provide
fertile grounds for harvesting new inventions and discovery which makes technology
licencing/transfer and other forms of IP critical. Therefore, every biotech industry musthave a well defined and well articulated product/service focus. He pointed out that to be
successful, whether directed towards a technology or disease (or other development
challenges), there needs to be a clear vision as the basis for future revenues and theentrepreneur should identify which development challenge thecompany/technology/innovation will address (i.e. being clear about the opportunity).
The Consultant explained the path to entrepreneurship in life sciences as shown in Figure 1.
The Consultant gave the following tips on building successful enterprises in the biosciences:> Timing - predicting future changes in society and markets- timing can be a real determinant of success> Take a macro view and predict how the industry or a particular sector will develop andhow it will look in 5 – 10 years time
> Aspiring entrepreneurs must never think the market is static - relevant competitors arethose in the future> The competitive space will change down the line and aspiring entrepreneurs must be
prepared> Location - clustering leads to positive externalities and this connotes the saying that birdsof the same feathers flock together:- Clustering enables companies to be tuned into the industries strategic shifts andbecome successful together- Clustering provides an environment that will attract world-class talent, knowing that
if things don't work with one company, there are others nearby- Clustering allows mixing of skill sets, and the convergence of many disciplines andculturesIn his concluding remarks, the Consultant shared some thoughts on the challenges of
becoming an entrepreneur in this current dispensation. He opined that in the network era,new products and services are the results of social organizations of knowledge networks.
32 | Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa

Founder =Inventor ofTechnology

Founder =MarketPerceiver

Opportunity
recognition

Intellectual
Property Rights

Fundand build teamand company

Developtechnology toward product

Surviveby additional funding, selling
assets (IP licensing) or
spinning out applications

Marketproduct

Figure 1: Path to entrepreneurship in life sciences

And that appropriation of such products through patenting and other forms of IPR could bechallenged. He further underlined that open source innovation models are opening up andfreeing knowledge which other firms could patent, thus changing the innovation landscape.
Finally, he posited that there is a shift of power of regulation from the domain of politics toproduction means and that social and policy organizations are becoming hostile and defensive
towards biotechnology.

Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa | 33

14. Technology Licensing by
Mr. Sylvance A. Sange of the Kenya
Industrial Property Institute
The Consultant observed that by the nature of products
emerging from technology, it was necessary to put a legal
structure in place to regulate transactions, markets andproduction. He pointed out that Technology Licensing
Agreements grant licensees the right to utilize specifictechnologies, patents, softwares, know-how or product designs.
In a typical technology license agreement, a running royalty fee
based on licensed product sales revenue is paid to the licensor ona periodic basis. He enumerated some of the benefits of technology licensing as shortening
product development time; providing the platform to gain entry into otherwise protectedindustries; enhance quality of products and processes; contribute to building competitive
advantage and expanding existing business capabilities.
He surmised that Technology Transfer Agreements will also usually improve economic
efficiency and be pro-competitive as they can reduce duplication of research anddevelopment, strengthen the incentive for the initial research and development, spur
incremental innovation, facilitate diffusion and generate product market competition.
However, licensing agreements may also be used for anti-competitive purposes, such as where
two competitors use a licensing agreement to share-out markets between themselves or wherean important licence holder excludes competing technologies from the market.

34 | Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa

Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa | 35

15. Intellectual Property by
Mr. Sylvance A. Sange of the
Kenya Industrial Property Institute
The Consultant made a clear case about the capacity of human beings to have Intellect andwill power – the ability to choose freely. This, he said, had everything to do with intellectual
property. He defined Intellectual Property (IP) as a term referring to a number of distinct
types of creations of the mind for which a set of exclusive rights are recognized under thecorresponding fields of law. Intellectual property legislation confers exclusive rights on
holders of patents, rights, registered trademarks and other rights protected by the law. He
underlined that a holder of intellectual property rights is authorised to prevent any
unauthorised use of its intellectual property and to exploit such property, particular bylicensing it to third parties.
The Consultant enumerated several reasons why Intellectual Property rights should beprotected:> Protect investments in time, money or other resources used to create new contributions
to technology, commerce and entertainment> Governments encourage creators to disclose their creations to the public in order topromote the progress of science and useful arts which are the engines of development investors demand this guarantee> Foster economic growth> Provide incentives for technological innovations, and> Attract investments that will create new jobs and career opportunities> Intellectual property also contributes to the creation of a competitive and transparent
market in an economic system where consumers are protected and businesses are able toenter the market freely and to compete fairly> Intellectual property is also used to develop new businesses (e.g. M-Pesa, a system oftransacting money using mobile phones which has contributed massively to job creationin the Kenya
36 | Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa

16. Open Forum II
Commenting on how to protect local intellectual property, one participant raised the issue oftransformation of the mind of Africans on how we see our local products. He stressed that
our inability to place adequate value on our own products and knowledge has rendered themvalueless.
A second participant asked multiple questions on IP and licensing of indigenous knowledge(IK):> How can we protect our indigenous knowledge?
> Can an individual patent indigenous knowledge on behalf of the public?
> When I license my technology to a industry and we agree on royalty payments, whether it
is a service or product, how do I know that at the end of the period, what we actuallyagreed on is the true reflection of the unit that have been sold?
> What are key indicators to look for in an enterprise to determine whether to license atechnology to an industry?
> At the point of registering my intellectual property, do I have to sign a non-disclosureagreement (NDA) with the hired lawyer who is assisting in the patenting of my idea or
product?
> Since the patenting process takes time, is there a provisional process to get my intellectual
property protected whilst applying the knowledge or product?
In his response, the Consultant pointed out that we Africans have very little ideas onprotecting our indigenous knowledge. On royalties, IP being intangible, it is very hard to deal
with and therefore there is a need for legal assistance. Being intangible by nature, the presenceof rules and regulations define the existence of IP.
Knowing how much you gain from your IP agreement is made through a provision in theTechnology Licensing Agreement, where an agreement is made to keep record of account of
how much of the technology or product is produced and how much is earned. IP value is theReport of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa | 37

present value of the future economic benefits of ownership. On the issue of NDA, a part of alawyer's mandate is to keep sacred and secret the information of a client and therefore it is notmuch of an issue, but it is also important (for all concerned) not to reveal certain sensitive
aspects deemed crucial, just in case things do not go as expected with the agreement.

38 | Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa

17. Feedback from Participants
On the whole, participants ranked the training and its organization as excellent (Fig. 1). They
expressed deep satisfaction with how insightful and informative this training was to them.
However, participants expressed concern about the short period of both the training and thetime allocation for each activity (Fig. 2). They recommended that future similar training
workshops should last for more than two days to enable effective delivery of information
within the period and to avoid information overload.
On the content of the training, participant indicated that all aspects of the training were very
useful but they were very much excited about two key topics which were entrepreneurship andsmall business establishment. They were of the view that scientists have shown weak capacity
to initiate a business agenda for their innovative products. Therefore, this training has come at
an appropriate time to equip them with the much needed entrepreneurial skills and knowledge
to venture into the business world with their innovative research ideas and other outputs.
However, they recommended that practical examples of entrepreneurship successes from thebio-sciences such as case studies from the region would have given more meaning to thetraining.
100%
Below
Expectations

80%
60%

Fair

40%
Good

20%
0
Quality ofGeneral Administration
Objectives
Discussions Organisationof the...

Meeting
Rooms/
Hall

Environment

Hotel
Services

Meals

Figure 2: Response from participant on training content
Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa | 39

100%
Grossly
Inadequate

80%
60%

Not
Sufficient

40%

Just
Sufficient

20%
0Length ofWorkshopTime
Allocation
for Various..

Writing
Materials

Workshop
Papersand...

Per diem/
Allowances

Figure 3: Response from participant on training modalities

40 | Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa

18. Closing Remarks
In conclusion, Dr. Nicholas Ozor, who is the Coordinator of the BIPCEA project at the
ATPS thanked delegates for participating in the training and urged them to apply what they
had learnt during the workshop in order to make the needed developmental impact on theirrespective countries. He then thanked the Lead Consultant, Prof. Ndede-Amadi, and her teamfor facilitating the training programme and for the in-depth and constructive information
provided to participants.

Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa | 41

42 | Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa

9:30am – 10:30am
10:30am – 11:00am
11:00am – 11:30am
11:30am – 12:30pm
12:30pm – 01:00pm

4

8
9
10

5
6
7

9:00am – 9:30am

04:30pm – 05:30pm

01:00pm – 02:00pm
02:00pm – 03:00pm
03:00pm – 04:00pm
04:00pm – 04:30pm

8:30am3–

8:30am – 9:00am

8:00amTime

ay 3rd May 2012

No.
1
2

Day 1, Thursd

Rapporteur: Mr. Ernest Acheampong, ATPS Research Officer
Activity
Facilitator
Arrival & Registration
ATPS Secretariat
Welcoming Remarks
Prof. Kevin Urama, Executive
Director, ATPS
Introductions & Leveling of Expectations
Dr. Nicholas Ozor, ATPS SeniorResearcher
Entrepreneurship in Economic Development
Lead Consultant
Health BreakATPS Secretariat
Entrepreneurship in Bio-Sciences
Co-Consultant I
Establishing an enterprise
Lead Consultant
Open Forum / Discussions
Dr. Nicholas Ozor, ATPS SeniorResearcher
LUNCH
ATPS Secretariat
Identifying innovations for commercialization
Lead Consultant
Managing a small business
Lead Consultant
Open Forum / Discussions
Dr. Nicholas Ozor, ATPS SeniorResearcher
Health Break / Departure
ATPS Secretariat

Annex 1: Workshop programme

ANNEXESReport of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa | 43

7
8
9
10

5
6

3
4

01:00pm – 02:00pm
02:00pm – 02:45pm
02:45pm – 03:30pm
03:30pm – 04:15pm
04:15pm – 04:45pm

9:00am – 9:30am
9:30am – 10:30am
10:30am – 11:00am
11:00pm – 12:30pm
12:30pm – 01:00pm

Day 2, Friday 4 th May 2012
No. Time
1
8:00am – 8:30am
2
8:30am – 9:00am
Rapporteur: Mr. Ernest Acheampong, ATPS Research Officer
Activity
Facilitator
Arrival & Registration
ATPS Secretariat
Recap of Day 1
Mr. Ernest Acheampong, ATPS
Research Officer
From Feasibility Plan to Business Plan
Lead Consultant
Feasibility Study
Lead Consultant
Health BreakATPS Secretariat
Business Plan
Lead Consultant
Open Forum / Discussions
Dr. Nicholas Ozor, ATPS SeniorResearcher
LUNCH
ATPS Secretariat
Ethics in running a small business
Lead Consultant
Technology Licensing
Co-Consultant IIIntellectual Property
Co-Consultant III
Open Forum / Discussions
Dr. Nicholas Ozor, ATPS Senior

Annex 2: Participant's list
44 | Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa

Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa | 45

46 | Report of the Entrepreneurship Skills Training for Bioscientists in Eastern Africa

The African Technology Policy Studies Network (ATPS) is a multidisciplinary network of researchers, private sector actors andpolicy makers promoting the generation, dissemination, use andmastery of science, technology and innovation (ST&I) for African
development, environmental sustainability and global inclusion.
ATPS intends to achieve its mandate through research, capacity
building and training, science communication/dissemination andsensitization, participatory multi-stakeholder dialogue,knowledge brokerage, and policy advocacy.

African Technology Policy Studies Network
Contact the Executive Director at The Chancery, 3rd Floor, Valley Rd.
P O Box 10081, 00100-Nairobi, Kenya
Tel: (254 020) 2714092, 2714168, 2714498, 2723800
Fax: (254 020) 2714028
Email: info@atpsnet.org
Skype address: atpsnet
http://www.atpsnet.org

ISBN: