WHAT YOU SHOULD KNOW ABOUT ENTREPRENEURSHIP AND FINANCIAL LITERACY

By: Amon Tumukunde

Entrepreneurship is the art or science of innovation and risk – taking for profit in business. 

Financial  Literacy refers to the ability to understand and apply different financial skills effectively. The financial skills include the following;

Personal financial management; this involves gaining an understanding of one’s financial situation in order to make the most of one’s assets in day-to-day life and in planning for the future.

Budgeting;   this is the process of looking at a business’ estimated incomes (the money that comes into the business from selling products and services) and expenditures (the money that goes out form paying expenses and bills) over a specific period in the future.

Debt management; is a way to get one’s debt under control through financial planning and budgeting. 

 Negotiation skills; these are qualities that allow two or more sides to reach a compromise. They are often soft skills such as communication, persuasion, planning, strategizing and cooperating.

Good and effective communication skills; the ability to convey or share ideas and feelings effectively.

 Leadership  skills; are skills you use when organizing other people to reach a shared goal.

Problem solving skills; Problem solving is the act of defining a problem; determining the cause of the problem; identifying, prioritizing, and selecting alternatives for a solution; and implementing a solution.

Innovation management; this is simply the process of coming up with and introducing new things and developing the business, one way or the other.

Research  skills; Research skills refer to the ability to search for, locate, extract, organize, evaluate and use or present information that is relevant to a particular topic. 

 Marketing skills; This means being able to identify customers’ problems, sometimes before they do, and find a way of addressing those needs and problems through the products and services that you provide. This requires use of two skill areas: communication skills and analytical skills.

Decision making skills; Decision-making skills show one’s proficiency in choosing between two or more alternatives. 

Business ethics; these are manners/behaviors in which entrepreneurs are expected to have such as hard work, honesty, timeliness, reliability, friendliness, patient. 

Investment skills; Investment is the act of putting, money, effort, time, etc. A person needs to be able to have good judgment, communication, research and analytical skills.

So therefore as I conclude the youth should be taught and skilled in entrepreneurship and financial literacy. 

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