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PAUL’S UNIVERSITY
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Private Bag 00217 Limuru, KENYA

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Tel: 020-2020505/2020510/0728-669000/0736-424440
VANT TY
S OF GO D AN D HUM ANI

FACULTY OF BUSINESS COMPUTER SCIENCE AND COMMUNICATION STUDIES

BACHELOR OF BUSINESS ADMINISTRATION AND MANAGEMENT
SEPTEMBER - DECEMBER 2021 SEMESTER
DISTANCE LEARNING EXAMINATION
UCC 406: ENTRENEURSHIP AND INNOVATION DEVELOPMENT
DATE: DECEMBER, 2021 TIME: 24 HOURS
INSTRUCTIONS:
1. Answers ALL Questions.
2. Submit your answers in word format unless otherwise instructed. Type your answers in a
word document. Do not PDF your document.
3. Submit your answers via the Exam Portal platform.
4. For images (photographs, graphs and calculations etc), use legible writing. Take an image
(Photo) of all the answer sheets and submit via the Exam Portal platform. Remember to
number the answer sheet pages.
NOTE: No submissions will be accepted in any other mode e.g. emails, WhatsApp etc.

5. The examinations start at 8.00am and all the answer scripts MUST be posted on the portal
by 8.00am the following day (within 24 hours).
6. Submit your answer sheets as one document. Click the “SUBMIT” button to ensure that
your answer sheet is uploaded in the portal.
7. Allow yourself enough time to confirm that your submission has gone through. You will
receive an automated email receipt on successful submission.

NOTE: Submission deadlines must be observed.

8. On the front page of each answer script you are required to observe the following
instructions:
 Write your student number in full
 Write the unit code and title
 Write the date of examination
 Write “SUPPLEMENTARY” or “DEFFERED EXAM” as the case may be, (if you are
taking a supplementary or deferred examination).
 Write the name of the lecturer

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QUESTION ONE
Coronavirus (Covid-19) is a pandemic that not only has caused significant havoc around the world but
also presents some important opportunities for entrepreneurs to be innovative in the marketplace. Using
both local and international examples discuss how entrepreneurs have been innovative in order to stay
afloat in their enterprises. (15 Marks)

 Identifying Pandemic Products and Services

One of the biggest challenges entrepreneurs faced during COVID-19 pandemic, is that many companies

found that their products were temporarily out of date due to the crisis. Therefore, entrepreneurs had to

identify products and services with needs and draw up plans to adapt their operations to meet those

needs.

In Kenya for instance, Lafá Cake Boutique could no longer sell wedding cakes and dessert tables.

Nevertheless, working with a business mentor from the Grow Your Business program - a partnership

between the Citi Foundation and TechnoServe to support youth-owned businesses in four Central

American countries - Fátima analyzed the behavior of young adults. Micro-markets locally and

internationally identified new products and services that hunted customers during the pandemic.

They found one thing: cakes and cupcakes to eat at home. By providing a more flexible and responsive

service that large bakeries cannot provide in times of crisis, and by marketing to new and existing

customers through social media and other channels. Other digital, Lafá has received many orders for

Mother's Day celebration with family. As a result, the company rebounded and recorded its best month

of sales in May, and it has maintained a growth path since.

 Reaching Customers During a Pandemic

While businesses have the products people need during a pandemic, social distancing and gridlock

often make it difficult for them to reach them. potential customers.

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 Faced with in this challenge, entrepreneurs must innovate and find new ways to connect with

consumers. This often means accelerating the digital transformation of their businesses, which has been

slower to reach small businesses in developing countries.

This is the case with Candy Waithaka a Kenyan entrepreneur. People need longevity foods like the

cereal she sells, but they are afraid to go to her store. Working with business mentors from Panafric

Youth Entrepreneurship Development (PAYED), a partnership between the Citi Foundation and

TechnoServe, Candy developed a plan to market and sell its cereal through Facebook and provide

provides home delivery of its products.

Sales rebounded to $85 per week, more than 10 times sales at the low end of the crisis. Candy sees this

as a change she will stick with even after the pandemic hits.

Of course, it is not just new entrepreneurs who need to innovate, so do their advocates. While our

partnership has always used digital tools combined with face-to-face support, the pandemic has made it

impossible for us to meet entrepreneurs. We had to innovate, using Skype, Zoom, calling, SMS to reach

entrepreneurs.

 Making a measurable difference

With this form of support, entrepreneurs have been able to weather the crisis and position their

businesses for recovery and growth. When El Salvador's National Commission on Micro and Small

Business surveyed entrepreneurs in July, 64% said they had exhausted their cash reserves and might be

forced to close. However, that same month, 88% of Crice attendees nationwide said they were ready to

weather the storm.

In January 2021, World Bank Business Research shows that 20% of small businesses in El Salvador

will close permanently and 69% say their monthly revenue is lower than a year earlier . However,

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among Crice participants, 86% of companies had returned their sales to pre-crisis levels or were on

track by the time they completed the program.

In Kenya, only 39% of micro and small businesses surveyed reported having an emergency fund and

by July 21% of MSMEs had been forced to close. But that same month, 75% of payment participants

said they had enough capital to keep the business afloat, and 52% said their sales had increased in the

past month.

 Community-based employee turnover and basic communication methods

Pyramids In order to counter the common product awareness and reduced resource constraints at the

foundation of the community, integrated enterprises communicate value and build capabilities. Often we

develop "high five" ways to do this. Their field workers and / or agents have an extensive network of

communities in which they work and have strong and long-standing relationships with small retailers,

local executives, and other stakeholders.

In response to COVID19, some inclusive companies are reorganizing field workers to provide

important health information and supplies to the foundation of the pyramid community. These field

workers are trained in all health protocol compliance and include lenders, agricultural advisors and sales

reps. Some inclusive companies not only use their own staff to distribute information and supplies, but

also use small local retailers in their distribution chains. Comprehensive businesses also use basic

channels to broadcast information about the dangers and symptoms of COVID19, hand-washing

instructions, and social distance requirements. These channels include direct involvement through radio,

television, retail signs and other high-traffic signs, telephone and text messages, and socially distant

face-to-face interactions.

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  Leveraging existing technology-based communication channels

Many businesses include using technology platforms to support and interact with the base of their

supply and distribution pyramids. For example, in the agricultural sector, communication and data

management platforms are used to map farms, pay farmers online, manage farmer cooperatives, and

create master maps supply chain identification. Holistic businesses can now leverage these platforms to

disseminate health information related to COVID19

 Embracing alternative distribution channels

As many retail stores have closed due to social imperatives, businesses including, like others, now

ensure continued access by offering products and their services online. To enable business-to-consumer

deliveries, retailers include collaborating with transportation companies to deliver by motorbike and in

some cases, no delivery fees. As distribution methods are adjusted, it is important for food companies

and consumers to consider the unique nutritional needs of women and children and adopt channels that

allow the continued distribution of nutritious foods nursing. At the bottom of the pyramid, consumers

may not be comfortable with e-commerce or do not have the technology to do so, so many businesses

included are now taking orders and handling deliveries by phone. Some even fund temporary Internet or

cell phone connections for consumers and provide needed equipment. In the healthcare sector, for

example, a number of service providers including are setting up call centers that allow healthcare

workers and non-COVID19 patients to connect over the phone and in some, the case is via video.

Schools and universities that train low-income and underserved students are also adapting to offer digital

courses. For students who do not have access to "smart" phones, computers, and/or the Internet, some

inclusive educational institutions now use more accessible channels such as radio, or they give students

Borrow a smartphone or computer, and partner with a telecommunications provider to provide free

phone or Internet service.

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  Adjusting Pricing and Payment Models

Inclusive businesses recognize that the limited incomes and uneven cash flows of their pyramid

customer base can prevent them from accessing the goods and services they provide need. As COVID19

leads to layoffs of low-paid workers and negatively influences the livelihoods of micro businesses, the

challenges facing those at the bottom of the pyramid are increasing. To promote continuity of access,

some companies include tweaking their conditions and/or pricing and payment methods. This includes

the use of financial technology (fintech) to facilitate contactless payments and remittances by customers,

retailers and their distributors and, in some cases, eliminate fees for online or phone orders and financial

transactions. Some companies also offer discounts on certain products and defer monthly payments for

financial products like loans and insurance, and services like water and electricity. Some of these

responses were prompted by a government request or request; in other cases, the adjustment is at the

discretion of the company. Again, optimal solutions must take into account the accessibility of

vulnerable populations, such as the extent to which digital solutions are available to women, who are

often customers most of microfinance.

 Adapting products or services

To better meet the needs of poor and underserved customers in times of crisis - and women in particular

- and to help smallholder farmers and distributors / Small retailers in their value chain continue to

operate, some businesses included are changing their products and services. For example, they switch

products for a longer shelf life, move services from transporting people to transporting essential goods,

and adapt their technology or products to using a non-contact approach contact to pay for goods and

services and make deliveries.

 Extending benefits to small distributors and retailers

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For holistic businesses, the people at the bottom of the pyramid are not just customers; they are key

partners in the business value chain. For many businesses, their basic network of distributors and/or

retailers - many of whom are women - provides final goods and services in areas not served or remote

areas. To help mitigate shocks to partners' revenue and ensure the capacity and resilience of their value

chains, some of the companies included are redefining their engagement. For example, they ensure that

their base pyramid partners receive timely payments and that their health-related expenses are covered.

Other approaches include securing cash flow by providing cash grants, affordable loans, or providing

credit.

QUESTION TWO
Examine critically the government policies and programs to foster the growth of entrepreneurship.
Suggest some of the changes you would like made to them. (10 Marks)
a) Enabling the tax and regulatory environment
Each country's tax code is one of the best tools governments can use to promote small business
development. Kenya's economy consists mainly of small and medium-sized enterprises (SMEs). Most
rarely reach the growth stage due to high taxes and regulatory systems. To promote the development of
economists and entrepreneurs, governments must:

 Reduced corporate tax rate

 Provides tax relief for investment in training and education

 Provides tax credit for investment

b) Protects intellectual property
Governments seeking to promote entrepreneurship will: Entrepreneurship Laws must be passed to
protect innovation. Innovation is at the heart of every entrepreneur. If law does not protect such
innovations, entrepreneurs are unlikely to risk inventing new solutions to social problems. In other
words, policies that protect copyrights, trademarks and patents will create a highly favorable
environment for entrepreneurs to thrive.
Growth-seeking economies generally require government policies to enable entrepreneurs to take less
risk and make more money.

c) Easy Access to Capital

Entrepreneurs take calculated risks always. For the government to encourage

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entrepreneurs, they have to put in place policies that will reduce the risk common

in entrepreneurship. The government needs to assists entrepreneurs or would-be

entrepreneurs to have ease in getting money needed to get started. Governments

have to put in place the Banks for Small and Medium-sized Enterprises. These

banks are supposed to be created to encourage the activities of small and

medium sized enterprises by making available loans at low interest rates.

d) Education

For an economy to become great, it needs to create successful small businesses. To get this,

it needs to make entrepreneurs willing to create new businesses. This means, its citizens

have to learn business skills. This can be done by introducing;

- Business Incubators: A Business Incubator is a place where start-up businesses grow. In a

typical sense, business incubators are usually associated with universities, local councils,

professionals, professors and other experts who give out time to teach entrepreneurs on

everything that concerns business like marketing, tax, accounting, business law and sales.

When these would-be entrepreneurs complete such courses, they move on to start their own

businesses.

- Encourage the use of Internet: There are many online tutorials that would-be
entrepreneurs could use to learn business skills and ideas.

The government should make sure Internet access is wide enough so that
entrepreneurs could get access to such free skills and ideas anywhere at any time.

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 e) Celebrate and Push Forward Small Business

Many governments foster the growth of entrepreneurship by promoting existing

entrepreneurs to encourage others to start small businesses. In Cameroon, we have Promote.
Such fairs and expos help to recognize small business and entrepreneurship.
The government could also offer an “Entrepreneur of the Year” award to promising
entrepreneurs. Such awards should be a yearly event and should be widely publicized at
local and international levels. This will help in creating an entrepreneurial mindset in the
citizens.

“Entrepreneurship and Intrapreneurship are not mutually exclusive these are rather dependent
on each other for the development of an economy”. Elucidate
(5Marks)
Entrepreneurship is not dependent on internal entrepreneurship. They are related but not dependent.

Intrapreneurship refers to entrepreneurship that is encouraged in a large business or organization. Some

companies encourage internal relations to drive innovation.

Entrepreneurship is independent of corporate life. One can be entrepreneurs all by themselves

Entrepreneurs run their own companies. They have complete freedom and responsibility for the best or

the worst. Entrepreneurs are responsible for the transformation of existing organizations (usually large

ones). Internal business is less risky but requires less autonomy. The rewards of a successful product or

idea are also generally small.

 An entrepreneur is described as someone who establishes a brand new commercial enterprise

with a progressive concept or concept. A worker of the company who is permitted to adopt

improvements in product, service, process, system, etc. is called Intrapreneur.

 An entrepreneur is intuitive in nature, while an intrapreneur is restorative in nature.

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 An entrepreneur makes use of his personal sources, i.e. man, machine, money, etc. whilst with

inside the case of an intrapreneur the sources are without problems available, as they are

furnished to him through the business enterprise.

 An entrepreneur increases capital himself. Conversely, an intrapreneur does now no longer want

to elevate price range himself; as an alternative it's miles furnished through the business

enterprise.

 An entrepreneur works in a newly hooked up business enterprise. On the alternative hand, an

intrapreneur is part of a present company.

 An entrepreneur is his personal boss, so he is unbiased to take decisions. As against intrapreneur,

who works for the company, he cannot take unbiased decisions.

 This is one of the salient capabilities of an entrepreneur; he is able to bearing dangers and

uncertainties of the commercial enterprise. Unlike intrapreneur, wherein the business enterprise

bears all of the dangers.

 The entrepreneur works difficult to go into the marketplace efficaciously and create an area

subsequently. In evaluation to Intrapreneur, who works for organization-extensive extrude to

deliver innovation, creativity and productivity.

END OF EXAM

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