ENTREPRENEURSHIP ASSIGNMENT

 a Don't and suzy fit your description of entrepreneurs?Expl Explain your answer.
Yes they do. They both are passionate about their joint business idea and are both ready to take
the financial risk that come with starting a new venture with the hope of finally making it come
true and start making profits .
b Explain the business opportunity in the above scenario
The business opportunity in this scenario is the resurgence of lifestyle diseases and the fact that
almost every person has become health conscious and have incorporated exercising for health
reasons into their life.
c Explain the importance of a business plan to a venture
 It helps the entrepreneurs with critical decisions - building a business plan allows the
entrepreneurs to determine the answers to some of the most critical business decisions
ahead of time
 To avoid the big mistake - while there are many reasons which small businesses
fail ,many of the most common are purposefully addressed in business plan
 It proves the viability of a business - many bless are created out of passion and while
passion and while passion can be a great motivator.it is not a great proof point.
 Heip in the settings of better objective and benchmark. The business plan is like a
substitute teacher ready to guide team. People can always consult the business plan
 Helps in securing finances for the business - financiers are to time more likely to fund a
business that has a good business plan.

d Which source of entrepreneurial finance will be appropriate for this business venture.

Venture capital - it's a form of private equity and type of financing that investors

provide to start -up businesses that have a patential for growth. Venture capital generally comes from

well-off investors, investment banks etc . It provides risk management support and is therefore the

most appropriate source of financing appropriate for this venture.

e Explain to them the requirements for registering a company.

 An application for registration of the company. Form CR,

 A memorandum of association

 Articles of association -the internal rules between the companies its directors and

shareholders
 The application

f Suggest to the duo 3 areas of diversification in form of products and services that they

can implement in the business alongside the gym

 Beauty treatments

 Nutritional services

 Virtual fitness sessions

2. Discuss the need for entrepreneurship

Entrepreneurship is described as the process of designing and running a new business.

Entrepreneurship creates an influx in job opportunities and thus contributes to economic and

societal growth.

It creates new products and services,they stimulate new employment which ultimately results

in the acceleration of economic development.

It also makes the optimum use of scarce resources and promotes peace and prosperity in the

society.

Improved goods and services or technology from businesses enable the growth of new markets

and creation of new wealth. Also, increased jobs and higher incomes in the form of higher tax

revenues and expense which lead to better national income.

(b) Explain the important role of entrepreneurship

1. Creates job opportunities- Firms and businesses contribute a large share of new jobs. It

provides entry-level jobs that are necessary for training or gaining experience for unskilled

workers.

2. Innovation- Entrepreneurship is the incubator of innovation. It goes beyond discovery and

actually does implementation and commercialisation of innovations.

3. Impact on community development- A community is better off if its employment base is

diversified among many entrepreneurial firms. It leads to more stability and a higher quality

of community life.

4. Political and economic integration of outsiders- Entrepreneurship is the most effective way

of integrating those who feel disposed of and alienated from the economy. Minorities,

migrants are safely integrated into entrepreneurship that will help to develop a well

composed plural society.

5. Enhances the standards of living- Standards of living depends on the availability of

diversified products in the market which is in turn provided enormously by

entrepreneurship.

6. Promotes research and development- It provides funds for research and development with

universities and research institutions.

(c) Based on the economic theory of entrepreneurship, advise the government on how it

can promote entrepreneurship in Kenya.

1. Lower interest rates- When rates go down, borrowing becomes more profitable. This

encourages businesses to expand.

2. Give tax incentives- Tax incentives to certain types of businesses can give the market/

industry a fledgling boost.

3. Friendly trade policies- Import quotas and tariffs can be lowered or eliminated to

encourage foreign trade.

4. Grants and loans- These offered directly to entrepreneurs are one way to use tax

revenue to stimulate business activity.