ENTREPRENEURSHIP EXAM 2022

a) What do you understand by entrepreneurship success:

Being a successful entrepreneur means more than starting a new venture every day. It means the right
attitude towards a business and the determination and grit to achieve success. A successful entrepreneur
has a strong inner drive that helps him or her to succeed.

b) Bodies of knowledge necessary for entrepreneurial success

 General knowledge: the entrepreneur needs general knowledge in areas such as planning,
training, functioning of the economy, technological changes, competition, customers, suppliers,
and organizational learning.
 Financial knowledge: businesses usually small businesses are not adequately financing at the
start. Knowledge on proper financing will prevent costly mistakes. Their success depends largely
on trends in the economy.
 Technological knowledge: technical changes can render a product obsolete or lead to additional
demands for customers and operators. Also, new technology can provide new opportunistic
entrepreneurs.
 Knowledge of the market: this necessitates market research so as to maintain and increase the
firm's market share.
 Knowledge of time management; time is a very scarce resource and needs to be managed
carefully by the entrepreneurs.
 Knowledge of record keeping: good record keeping makes it such that the progress of the
business is monitored.
 Individual relations: this involves setting personal goals in the work place and monitoring their
attainment.
 Knowledge of delegation: entrepreneurs tend to use other people to carry out their activities.

2) If you were to be an entrepreneur, which type of business will you create and why?

An entrepreneur is someone who creates new ideas, bearing all the risk and enjoying most of the rewards.

If I was to be an entrepreneur, I would create a partnership business. Partnership is a relationship which

subset among two or more persons carrying on business in common with a view to profit, the partnership
is own by members who are referred as partners, the business is controlled by partners although they may
employ other workers and the formation is easy, the profit of the business is shared equally according to
each capital.

The capital is large since it is usually contributed by many individuals and there may be suitable collateral
securities for loans from banks. This enables the unit to produce in large scale and enjoy economies of
scale, Good decision making is possible since each suggestion is examined by others and rejected if
harmful or approved if found useful. Risk is shared among partners. In an event of a misfortune which
leads to a loss or damage on an asset all the partners contribute towards the replacement of the asset. The
burden of the risk on each of them is reduced.
3) Examine the concept of business opportunity from both the discovery and creation perspective:

A business opportunity can be defined as an idea about an unsatisfied need in the market with a high
profit potential or a potential to serve customers differently and better than they are being served at
present.

A business opportunity can be evaluated and created through the following stages: Identification or
recognition of the business opportunity, Analysis of the business opportunity to better understand it,
making a judgment on the business opportunity to either accept it or reject it, and Selecting or exploiting
or rejecting the business opportunity.

4)

a) Explain the importance of a business plan to different stakeholders

The business plan is important to stakeholders because it enables you to validate a business idea, secure
funding, set strategic goals-and then take organized action on those goals by making decisions, managing
resources, risk and change, while effectively communicating with stakeholders.

b) Outline the main parts of a business plan:

- The Executive summary

- Business description

- Marketing segment

- Research, design, and development segment.

- The location segments

- Critical risks segment

- The financial segment

- Milestone schedule segment.

5) Distinguish between entrepreneurship and intrapreneurship:

A typical entrepreneur creates an invention- something new and different, whether it is a concept, process
or a product. Such a person might then obtain a copyright or patent and begin production of that invention
on the other hand an intrapreneur is a person within an already established organization who takes direct
responsibility for turning an idea into a profitable finished product through assertive risk-taking and
innovation. In fact, intrapreneurship is the practice of entrepreneurship in an already established
organization. Intrapreneurship is characterized by flexibility, innovation, and risk taking within a secured
and stable organization so as to accelerate product development and to take advantage of a new
opportunity or to assess feasibility of a new process or design.
6) Distinguish between commercial entrepreneurship and social entrepreneurship:

Commercial and social entrepreneurs are similar in that they find gaps and create a venture to serve the
unnerved 'markets'. However, they differ in the following ways:

i) Purpose for setting up the venture. While the business entrepreneurs' efforts focus on building a
business and earning profits, the social entrepreneurs' purpose is to create social change and returns above
costs of production are considered as surpluses.

ii) A business entrepreneur may create changes in the society, but that is not the primary purpose of
starting the venture. Similarly, a social entrepreneur may generate profits, but for him/her that is not the
primary reason for starting the venture.

From the above; a social entrepreneur is one who sets up a venture to achieve some greater good aside
from just the product and making profit as is the case with the commercial entrepreneur.

7) Distinguish between Productive, Unproductive and Destructive entrepreneurship:

Productive entrepreneurship deals with the exploitation of profitable opportunities with inherent growth
prospects. Unproductive entrepreneurship is essentially business formation aimed at survival in a situation
of unemployment and poverty and is particularly prevalent in the informal sector. Sometimes we talk of
destructive entrepreneurship when it has to do with illegal activities. The motivation of unproductive
entrepreneurship is not growth but survival, and serves primarily as a strategy to fight against more
poverty.

8) Distinguish between Opportunity and necessity entrepreneurship:

Opportunity entrepreneurship refers to the category of entrepreneurship in which entrepreneurs pursue

business opportunities for actualization. Conversely, necessity entrepreneurship involves entrepreneurial
endeavours by entrepreneurs because they have no other choice of work.

Necessity entrepreneurs are strongly associated with the informal economy, representing a large
percentage of economic activities in developing societies and countries.

9) Four bodies of knowledge necessary for entrepreneurship success:

- General knowledge; the entrepreneur needs general knowledge in areas such as planning, training,
functioning of the economy, technological changes, competition, customers, suppliers, and organizational
learning.

- Financial knowledge; businesses usually small businesses are not adequately financing at the start.
Knowledge on proper financing will prevent costly mistakes. Their success depends largely on trends in
the economy.

- Technological knowledge; technical changes can render a product obsolete or lead to additional
demands for customers and operators. Also, new technology can provide new opportunistic entrepreneurs.

- Knowledge of the market; this necessitates market research so as to maintain and increase the firm's
market share. This depends on how fast an entrepreneur responds to actions of competitors. Here, there is
need to take enough time to research, innovate and execute business plans.
10) State and explain four functions of an entrepreneur:

- Planning: He is the organizer who conceives the idea of launching the project and programs the structure
of business.

- Management: The success of the business depends on the how it is run and as such, sound managerial
policies need to be put in place. Thus, the entrepreneurial skills and abilities are required to ensure the
smooth running of the business.

- Risks taking: starting a business entails taking risks and putting in place policies as well as introducing
new methods of production and products calls for greater risk taking. Under such circumstances, the
entrepreneur always bears the risk involve in innovation and invention.

- Introduction of new production methods: He is responsible for coming up with new and better ways of
combining factors of production that will minimize the cost of production.

11) What is business opportunity:

A business opportunity can be defined as an idea about an unsatisfied need in the market with a high
profit potential or a potential to serve customers differently and better than they are being served at
present.

12) Stages involved in analysing business opportunity:

A business opportunity can be evaluated through the following stages:

-Identification or recognition of the business opportunity,
-Analysis of the business opportunity to better understand it,
-Making a judgment on the business opportunity to either accept it or reject it, and
-Selecting or exploiting or rejecting the business opportunity.

13) State and explain four reasons for differences in people’s ability to identify business
opportunities:
Entrepreneurship process involves being alert to previously unseen profit opportunities and to act on
them. However, there are differences in the abilities of people to notice different business /profit
opportunities for a number of reasons.
14) Differentiate between internal source of finance and external source of finance:

Internal source:

-Personal savings: This is often known as equity financing that is fund provided by the owners of the
business. The entrepreneur often uses his or her own money to finance the company/business. This is an
important source of finance to start-up entrepreneurs and also in case of joint ventures, the partners or
shareholders can each contribute towards the capital of the business. This is often known as equity

- Plough back profits: This is associated with businesses that have been in running for a period of time.
Plough back profits are profit that are not distributed but rather kept to be reinvested in the business.
These serve as an important source of finance to the business as it is use for further expansion and
growth.

External source:

-Family members and friends: Given the difficulty in obtaining loans from financial institutions for start-
up entrepreneurs, an alternative source of capital is provided by friends and family members. Raising
money through this form is beneficial because the finance is provided for emotional reasons rather than
for business reasons that they just want to support family members and friends.

- Angel investors: Angel investors are typically wealthy individuals who invest in companies. They are
sophisticated investors who thoroughly understand the risk of the investment and are comfortably able to
absorb a complete loss of their investment. They usually focus in businesses where they are experiences
in and are usually interested in providing financial assistance to start-up entrepreneurs.

- Bank loans/bonds: Banks are often considered the largest finance providers for businesses. Most
businesses depend on the loans they can get from banks to finance their business ventures. Also, most
businesses issue out binds to raise capital for expansion. Bonds are promises to pay interest each year and
the principal on a specific date. Just like banks, bond holders are creditors to the business not owners.
13) Despite the importance of a business plan, many entrepreneurs fail to write these plans.

a) What explains this behaviour?

Some entrepreneurs fail to write a business plan because they don’t want to test their ideas too much, for
fear they won’t withstand the scrutiny. Taken seriously, a business plan will show that some businesses
should not be started, a possibility some entrepreneurs don’t want to confront.

b) What are the consequences of failure to write business plan?

Without planning, there will be no mission statement and no vision. Employees are most productive when
they understand the bigger picture behind what they are doing, so productivity will decrease.

c) outline seven parts of a business plan:

- The executive summary

- Business description

- Marketing segment

- Research, design, and development segment

- The location segment

- The management segment

- Critical risks segment

- The financial segment

- Milestone schedule segment

14)

a) Comments on the level of entrepreneurship spirit in Cameroon:

Despite the problems we face in Cameroon, a good number of youths are determined to own businesses.
The creation of the ministry of Small and Medium Sized Enterprises in Cameroon was to promote this
entrepreneur spirit in Cameroon.

b) Explain the following terms used in entrepreneurship:

i) Risk bearing: Having or sharing responsibility for accepting the losses if projects go wrong.

ii) Innovation: is the practical implementation of ideas that result in the introduction of new goods or
services or improvement in offering goods or services.

iii) Speculation: The forming of a theory or conjecture without firm evidence.

iv) Intrapreneurship: Is responsible of bringing new ideas within and existing company.

c) Briefly describe the following types of entrepreneurs:

i) Innovation driven entrepreneur: It’s defined as the pursuit of opportunities focused on products or
repeatable services beyond the local market.

ii) High growth entrepreneurs: Often known as ‘gazelles’, have been the focus of much public policy
interest because of their contribution to employment and economic growth.

iii) Nascent entrepreneurs: Are people who are engaged in creating new ventures.

iv) Novice entrepreneurs: Are persons wihout prior experirience (both minority and majority) in the
ownership of a business, founders and buyers or heirs of an existing independent entreprise who currently
have a minority or majority stake in a newly established, acquired or inherented entreprise.

15) How is mentorship and apprenticeship applicable to entrepreneurship in Cameroon?

Mentorship is the guidance provided by a mentor, especially an experienced person in a company or

educational institution.
Apprenticeship is a system for training a new generation of practitioners of a trade or profession with on-
the-job training and often some accompanying study.
Mentorship and apprenticeship programs can play a significant role in promoting entrepreneurship in
Cameroon. By providing aspiring entrepreneurs with access to experienced business leaders and industry
experts, these programs can help foster the development of new business ideas and provide guidance on
key aspects of starting and running a successful enterprise. Additionally, through hands on learning
experiences, apprentices can gain practical skills and knowledge that can be applied directly to their own
entrepreneurial ventures. In this way, mentorship and apprenticeship programs can help to build a
supportive foundation for sustainable business growth in Cameroon.
PROPOSITION: Successful entrepreneurs are born, not made.

OPPOSITION: Successful entrepreneurs are made, not born.

PROPOSITION:

Entrepreneurship is a unique and complex field that requires a combination of skills, knowledge, and a
natural ability to take risks and think outside the box. While some individuals may develop these skills
through training and education, there is a certain innate quality that sets successful entrepreneurs apart
from those who are not as successful. One of the key traits of successful entrepreneurs is their ability to
identify opportunities and capitalize on them. This requires a certain level of creativity and innovative
thinking, which is often innate and cannot be taught. Additionally, successful entrepreneurs tend to
possess a high level of self-motivation and determination, which are also traits that are often inherent and
cannot be taught. Moreover, being an entrepreneur is not just about having a good idea, it's about being
able to execute it and make it a reality. Entrepreneurs need to have the ability to manage a team, handle
different types of people, and make the right decision at the right time. These are qualities that are not
easily acquired through education or training, but are innate to a person.

OPPOSITION:

While it is true that some individuals may possess innate qualities that make them well-suited for
entrepreneurship, it is not accurate to say that successful entrepreneurs are born and not made.
Entrepreneurship is a field that can be learned, and there are many examples of individuals who have
become successful entrepreneurs through hard work, education, and training. One of the key factors that
contribute to an individual's success as an entrepreneur is their level of knowledge and experience.
Through education and training, individuals can develop the skills and knowledge needed to identify
opportunities, create and implement effective business strategies, and manage and lead a team.
Furthermore, not every successful entrepreneur is born with all the qualities of a good leader or manager,
but this can be learned and developed through experience and training. Many entrepreneurs have started
as employees and have learned the ropes of the industry they are in, and have then decided to start their
own business.

In conclusion, while certain innate qualities may make some individuals better suited for
entrepreneurship, it is not accurate to say that successful entrepreneurs are born and not made. Through
education, training, and experience, individuals can develop the skills and knowledge needed to become
successful entrepreneurs.

A BUSINESS PLAN IS NOT NECESSARY FOR SMALL BUSINESSES

Creating a business plan can be a time-consuming and costly process, and some small business owners
may feel that it's not necessary for their business. However, there are several reasons why a business plan
can be beneficial for small businesses. Firstly, a business plan can help a small business to define its
target market, identify its unique selling proposition, and develop a marketing strategy. This can be
particularly important for small businesses, as they may have limited resources and need to be strategic in
their approach to reaching and attracting customers. Secondly, a business plan can help a small business
to identify and plan for potential challenges and opportunities. For example, a business plan can help a
small business to identify potential competitors, evaluate the potential impact of changes in the market,
and develop strategies for addressing these challenges. This can be important for small businesses, as they
may not have the same resources as larger businesses to absorb unexpected challenges. Thirdly, a
business plan can be an important tool for securing funding from investors or lenders. Many investors and
lenders will require a business plan before considering an investment or loan, and a well-written business
plan can be an important factor in securing the necessary funding to start or grow a business. Lastly, a
business plan can be a useful tool for monitoring and evaluating the performance of a small business. The
projections and financial projections in a business plan can be used to evaluate the business's performance
over time, and to make informed decisions about its future direction. This can be particularly important
for small businesses, as they may have limited resources and need to be strategic in their approach to
growth.

In conclusion, while a business plan may not be necessary for every small business, it can be a valuable
tool for setting goals, securing funding, and evaluating the performance of the business. It's ultimately up
to the business owner to weigh the pros and cons of creating a business plan and determine if it's worth
the effort for their particular business