SCHOOL OF AGRICULTURE TECHNICAL STUDIES AND NATURAL SCIENCES

MAIN CAMPUS

P.O. BOX 90-90128 MTITO ANDEI

COURSE TITLE: ENTREPRENEURSHIP

 COURSE CONTENT
This unit covers the following:
Lecture One: Introduction to Entrepreneurship
Lecture Two: Evolution of Entrepreneurship.
Lecture Three: The Entrepreneur
Lecture Four: Entrepreneurial Culture.
Lecture Five: Entrepreneurial opportunities
Lecture Six: Cat 1
Lecture Seven: Starting A Small Business.
Lecture Eight: Marketing strategies
Lecture Nine: Business Plan.
Lecture Ten: Cat 2.
Lecture Eleven: Emerging Trends and Issues in Entrepreneurship
Lecture Twelve: Information Communication Technology in a Business.

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 COURSE OUTLINE

ESSENCE STATEMENT
In this cutthroat environment, entrepreneurship and innovation enable people become self-
sufficient and use their talents and skills to start their own businesses. Studying innovation
and entrepreneurship improves a person's ability to think critically and logically, which helps
them solve any difficulty in the business field. A businessperson is driven by family or
society. They promote increased productivity while also providing fresh competition. They
are able to identify and address societal issues at a wide scale. Entrepreneurs use innovative
methods like inventing and disseminating new ideas to generate social value.
COURSE UNIT GENERAL LEARNING OUTCOMES:
By the end of the course, you should be able to:
a) Appreciate the importance of entrepreneurship.
b) Acquire entrepreneurial competencies necessary for planning, starting and managing a
business
c) Demonstrate positive attitude towards self-employment.
d) Portray a desire to venture into business
e) Identify viable business opportunities
f) Demonstrate entrepreneurial behaviour in planning, starting and managing a business
enterprise.
g) Demonstrate creativity and innovation in their day-to-day business activities
h) Appreciate the role of business planning
i) Appreciate the emerging issues and trends related to the business environment.
Content
Entrepreneurship; Evolution of Entrepreneurship; characteristics, functions & contributions
of an entrepreneur; Entrepreneurial Culture; Creativity and Innovation; Evaluating and
entrepreneurial opportunity; Starting a Small Business; Business Enterprise Management;
Formulation Business Plan; Emerging Trends and Issues in Entrepreneurship; Information
Communication Technology in a Business.

Course Outline
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3
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5
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7
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8
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9
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10
 To
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urial
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with other
related
business
units
Assessmen
t
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written
questions,
micro-
teaching
laboratory
work

Academic/Course Assessment
The student's grade will reflect achievement in the following areas as weighted in the table below:
Type Weighting (%)

CAT 1 30
CAT 2 (Project /Group discussion 30
presentation/Practical/Clinicals/Practicum)
Final Examination 70
Total 100 %

NOTE: Pass mark should be 50%

Course Delivery Methodology
The modes of delivery will include: lectures, e-learning activities, Facilitation, Discussion,
Exploration, Assignments, presentations, Project/article work.
Instructional, support resources
The lecturers will require a computer, Internet access, a projector, flipchart, whiteboard, case studies.
Core reading materials for the course
Should be hard copy and soft copy available in the library.

Recommended Text Books

Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2019). Entrepreneurship (11th ed.). McGraw-Hill
Education.

Barringer, B. R., & Ireland, R. D. (2019). Entrepreneurship: Successfully launching new ventures (6th
ed.). Pearson.

Kuratko, D. F., & Hodgetts, R. M. (2017). Entrepreneurship: Theory, process, practice (10th ed.).
Cengage Learning.

Bygrave, W. D., & Zacharakis, A. (2020). Entrepreneurship (5th ed.). Wiley.

Introduction To Entrepreneurship: Methodologies and Practices (2020), Springer texts

Houlihan, Michael, Harvey, Bonnie (2014) The Entrepreneurial Culture: 23 Ways to Engage and
Empower Your People
Entrepreneurship and Culture (2009) Springer publishers

Deakins, D., & Freel, M. (2019). Entrepreneurship and small firms (8th ed.). McGraw-Hill Education.

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Katz, J. A., & Green, R. P. (2017). Entrepreneurial small business (5th ed.). McGraw-Hill Education.

Journal of Business Venturing

Entrepreneurship Theory and Practice
Strategic Entrepreneurship Journal
Journal of Small Business Management
International Journal of Entrepreneurial Behavior & Research

E-materials:

Kauffman Foundation: Provides a wealth of resources on entrepreneurship, including

research reports, articles, and educational materials. Website: https://www.kauffman.org/

Global Entrepreneurship Monitor (GEM): Offers a comprehensive assessment of the

entrepreneurial activity, attitudes, and aspirations of individuals around the world. Website:
https://www.gemconsortium.org/

https://www.iedunote.com/entrepreneurship-functions Source iedunote.com was first indexed

by Google in September 2016

Stanford Technology Ventures Program (STVP): Provides a collection of articles, case

studies, and videos on entrepreneurship and innovation. Website: https://stvp.stanford.edu/

MIT Sloan School of Management - Entrepreneurship Resources: Offers a range of materials

on entrepreneurship, including articles, research papers, and educational resources. Website:
https://entrepreneurship.mit.edu/resources/

Harvard Business School Entrepreneurship Resources: Provides access to articles, case

studies, and research papers on entrepreneurship from Harvard Business School. Website:
https://www.hbs.edu/faculty/topics/Pages/entrepreneurship.aspx

Course Expectations
1. Punctuality is fundamental and students are advised to come to class on time and remain
until the end unless there is an emergency which should be reported to the unit lecturer.
2. Students are advised to be dressed decently in smart casuals at minimum.
3. Active participation in class discussions is encouraged.
4.Let us refrain from signing the attendance register on behalf of colleagues who are not
Present.

Assignments /Course Work Given during the semester

Instructions
1. Plagiarism is a serious offence. If detected in any form in course work and assignments,
the following will apply:
a. In partial or non-serious cases (such as not citing whole word-for-word quotes),
half the total possible marks of the assignment are duly struck off.
b. In serious cases (such as whole duplication of a paper), a zero policy will apply

12
 i.e., all offending assignments will be awarded a mark of zero.
2. Notwithstanding the above, collaboration in course work is certainly encouraged as this
promotes team spirit and group synergy, provided originality is preserved.
3. Assignments should be handed in on or before the date they are due. Students can hand
in their assignment through their class representative. Marks will be deducted for late
assignments.

LECTURE ONE: INTRODUCTION TO ENTREPRENEURSHIP

LECTURE OBJECTIVE:
By the end of this lesson, you should be able to:
- Define terms related to entrepreneurship
- Distinguish between self-employment and salaried employment
- Entrepreneurial development process

DEFINITION OF TERMS

Include;
Entrepreneur, business opportunity,
intrapreneurship, fixed capital,
economic growth, investor, self-
employment.

Who is an entrepreneur?

• An entrepreneur is a person who identifies a business opportunity, harshness and

obtains the resources necessary to initiate a successful business activity. Therefore, an
entrepreneur does the following;

 Implements the idea.

 Undertakes to operate the business.
 Makes things happen for economic development.

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• Business opportunity-it is a packaged business investment that allows the buyer to
begin a business.

• Fixed capital- the amount of capital required to purchase fixed assets.

• Economic growth- is the increase in the inflation-adjusted market value of the goods
and services produced by an economy over time”.

• Intrapreneurship- a system which allows an employee to act like an entrepreneur

within an organization. Intrapreneurs are self-motivated, proactive, and action-oriented
people who have leadership skills and think outside the box.

• Investor-a person or organization that puts money into financial schemes, property,
etc. with the expectation of achieving a profit.

• Self-employment-the state of working for oneself as a freelance or the owner of a

business rather than for an employer.

 Salaried employment- Salaried employment is a process in which an individual is

hired for a period of time, which may range from a few months to a few years, and is
paid a given amount of money as salary or wages for the work done.
 Entrepreneurship - refers to the means of stimulating innovative and creative
undertakings for a better business community or world.

Entrepreneurship Development Process

-Does entrepreneurship take place in one day?

-Do you believe that entrepreneurship is a process?
-If yes, why do you think so?

Entrepreneurship does not take place in a day because it is a process that involves a series of
steps. This process involves the means of enhancing entrepreneur’s knowledge and further
skills through several coaching and training in order to strengthen and increase the number of
entrepreneurs. The process helps new and young ventures grow and become better equipped
and to achieve their set goals and objectives which will further assist a country’s economic
growth. It further helps in the management, development besides building the business

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enterprise. Simply said, entrepreneurial development process deals with enhancing
entrepreneurs to advance their skills from the inputs of training.

• The process involves stages such as Discovery, Evaluation, developing a suitable

plan, resourcing of required funds and materials, Managing the business venture and Finally
Harvesting the rewards. This process can be represented as below:

(Source: Hisrich and Peter, 2015)

Managing a business venture is not an easy task and many of them never reach maturity to
allow the investor harvest the rewards. It is well noted that success in business
entrepreneurship does not come easy, the entrepreneur must work hard and for long hours
with a lot of dedication and sacrifice. He meets many failures and frustrations.

• Note that success in business is often regarded as an illusion as shown below …What
people see is only a small portion i.e., the success, but the failures, disappointment are never
seen, hence the entrepreneurship ice-berg illusion

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(Source: Sylvia Duckworth, 2016)

Contribution of Entrepreneurship to National Development

Entrepreneurship is the process that creates people (entrepreneurs) who contribute to
economic development in various ways. The contributions are made through:
1. Stimulating indigenous entrepreneurship and technological development.
2. Creating jobs for themselves and other people
3. creating wealth and distributing income
4. Utilising locally available resources
5. Dispersal and diversification of economic activities and mobilisation of savings.
6. Promotion of entrepreneurial culture i. they become models to be imitated by
potential entrepreneurs because of successful images already portrayed by existing
entrepreneurs.
7. Increasing regional business activities through the export of manufactured goods.
8. Promotion of indigenous/local technology e. use of jua kali technology.
9. Raising the economic productivity level.
10. Narrowing the “missing middle gap”
Summary
 An entrepreneur is a person who identifies a business opportunity, harshness and
obtains the resources necessary to initiate a successful business activity.

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  Entrepreneurship - refers to the means of stimulating innovative and creative
undertakings for a better business community or world.
 Entrepreneurial development process involves stages such as Discovery, Evaluation,
developing a suitable plan, resourcing of required funds and materials, Managing the
business venture and Finally Harvesting the rewards.

Activity
Using a suitable illustration, give an account on why the concept of entrepreneurship is often
referred to as the Ice-berg illusion
Reading list:
Introduction to entrepreneurship (2009), South-western Cengage Learning eighth edition
Introduction To Entrepreneurship: Methodologies and Practices (2020), Springer texts
Katz, J. A., & Green, R. P. (2017). Entrepreneurial small business (5th ed.). McGraw-Hill
Education.

LECTURE TWO: EVOLUTION OF ENTREPRENEURSHIP

By the end of this lesson, you should be able to:

 Expound on the origin of entrepreneurship
 Understand evolution of entrepreneurship in Kenya
 Describe the myths associated with entrepreneurship

Entrepreneur is a loan word from French “ENTREPREDRE” which means to undertake and
was first used in 1723. The word referred to individuals who were basically “undertakers”,
who took the risk of a new enterprise. In many forms of Australian, French, and British
literature, the word was used in the contexed of “change agent”., The term "entrepreneurship"
was coined around the 1920s. In the simplest terms, Entrepreneur is an individual who takes
risks and starts something new.
HISTORY OF ENTREPRENEURSHIP GLOBALLY AND IN KENYA
History of entrepreneurship globally Entrepreneurship has been part of human history since
records began. The bible, in the old testament, raises the idea of stewardship with regard to
utility resources of the earth .( Gen. 2)The bible also in the new testament, reveals that gain
requires risk (the parable of talents) (Luke 17) Entrepreneurship is also closely linked to the
protestant work ethics and capitalists (Weber 1995) Early economists in the 18thc ,such as
Richard Cantillon and Jean Baptiste Say recognized in the role of the entrepreneur as
essential to the progress of the world economic system 8 developed early economic theories
on entrepreneurship.
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During the industrial revolution entrepreneurship was linked to the creation of wealth and
prosperity (long 1983) The 1920s and Schumpeter (1934)linked entrepreneurship with the
dynamic process on innovation from the 1960s entrepreneurial SME (s) have played an
increasingly significant role in the economic development of the world (Kirzner 1973) From
the 1980s government have increasingly seen entrepreneurship as a means of creating
innovative technology and services which can increase , national competitiveness fosters
economic growth and employment (stoner and Freeman1992) Commentators suggests that
two main reasons for the ascend of high tech.
Entrepreneurial SME(s) are the difficulty of the large organizations to grow and prosper in an
increasingly competitive market place. Consequently, 8th need to decentralize de specialize
and downsize the operations (Harrell 1992) In construct in the 1980s those high growth new
ventures (SME(s)) known as “gazelles’ represents only 5% of new business due, but were
responsible for as much as 87% of all new jobs created (Zimmbrer & Scarbrough 1996)
in the UK in the 1980s small businesses generated more than 805% OF UNP and more than
40% of employment , more than 80 Employment growth came from newly started companies
(Burns and Dewhurst 1989) This development has accentuated during the 1990s and today
entrepreneurs help in high on the political agenda world-wide.
History of Entrepreneurship in Kenya In Kenya the concept of entrepreneurship was
embraced at the end of the 1980’s and early 1990. This was as a result of the international
labour organisation (ILO) working in conjunction with the governments and private sector
institutions in the projects related to SME development and vocational education.
Entrepreneurship education was seen as an important element to develop entrepreneurial
attitudes. However, no specific trainings were available. To close this gap, funds were
provided by ILO Geneva in 1996, to develop a training package for TIVET Institutions; that
included entrepreneurship education and business skills.
History of entrepreneurship in Kenya started as a pioneer project borne out of the
collaboration among university of Illinois, International Labour Organisation (ILO), UNDP
and KTTC, in 1990. It was offered at Masters and PhD levels by the University of Illinois
and KTTC provided the premises and conducive learning environment. In 1992 the program
was transferred to Jomo Kenyatta University of Agriculture and Technology (JKUAT) while
at KTTC started its first higher diploma class in 1993. The first class was sponsored by ILO.
Since 1995 students have been paying fees on their own without sponsorship. Otherwise, it
was, and still is a popular course. satisfaction especially with those students who have been
attached and apprenticed at their organisations.
Myths associated with entrepreneurship in Kenya
The following are some of the myths associated with entrepreneurship:
i)Entrepreneurs take wild risks at the start of their business. Even though risk is an integral
part of business, the start of business is not considered the highest risk. An entrepreneur is
more likely to face bigger risks at the latter stage of the business.
ii) Entrepreneurs introduce break-through inventions in their start-up business. It would be
easy to assume that entrepreneurs introduce new inventions, usually technological
inventions. This is not true.

18
ventures requiring high investment with a long payback period. Similarly, inflation and
exchange rate fluctuations, or a week judiciary system, are not a good environment to start a
business, even if the potential returns are high. The lack of infrastructure and services (such
as roads, electricity, water supply, telecommunications, transportation, and even schools and
hospitals) also affect the attractiveness of an opportunity in a given environment.

Suggested Questions
Discuss the myths associated with entrepreneurship in their environment
Explain the importance of entrepreneurship theories in the modern day.
Reading list:
Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2019). Entrepreneurship (11th ed.). McGraw-Hill
Education.
Kuratko, D. F., & Hodgetts, R. M. (2017). Entrepreneurship: Theory, process, practice (10th ed.).
Cengage Learning
https://bebusinessed.com/history/history-of-entrepreneurship/ Source bebusinessed.com was first
indexed by Google in January 2014

LECTURE THREE: UNDERSTANDING THE ENTREPRENEUR

By the end of the lesson, you should be able to:

-State the characteristics of an entrepreneur
-Discuss the functions of an entrepreneur and
contributions
-Discuss the mindset of entrepreneur

Characteristics of an Entrepreneur
(Harvard Business School online, 2022)
1. Curiosity
Successful entrepreneurs have a distinct personality trait that sets them apart from other
organizational leaders: a sense of curiosity. An entrepreneur's ability to remain curious allows
them to continuously seek new opportunities. Rather than settling for what they think they
know, entrepreneurs ask challenging questions and explore different avenues.
This is validated in the online course Entrepreneurship Essentials, where entrepreneurship is
described as a “process of discovery." Without curiosity, entrepreneurs can’t achieve their
main objective: discovering new opportunities.
The drive they have to continuously ask questions and challenge the status quo can lead them
to valuable discoveries easily overlooked by other business professionals.

19
2. Structured Experimentation
Along with curiosity, entrepreneurs require an understanding of structured experimentation.
With each new opportunity, an entrepreneur must run tests to determine if it’s worthwhile to
pursue.
For example, if you have an idea for a new product or service that fulfils an underserved
demand, you’ll have to ensure customers are willing to pay for it. To do so, you’ll need to
conduct thorough market research and run meaningful tests to validate your idea and
determine its potential.

3. Adaptability
The nature of business is ever-changing. Entrepreneurship is an iterative process, and new
challenges and opportunities present themselves at every turn. It’s nearly impossible to be
prepared for every scenario, but successful business leaders must be adaptable. This is
especially true for entrepreneurs who need to evaluate situations and remain flexible to
ensure their business keeps moving forward, no matter what unexpected changes occur.

4. Decisiveness
To be successful, an entrepreneur has to make difficult decisions and stand by them. As a
leader, they’re responsible for guiding the trajectory of their business, including every aspect
from funding and strategy to resource allocation.
Being decisive doesn’t always mean being correct. If you want to be an entrepreneur, it
means having the confidence to make challenging decisions and see them through to the end.
If the outcome turns out to be less than favourable, the decision to take corrective action is
just as important.
5. Team Building
A great entrepreneur is aware of their strengths and weaknesses. Rather than letting
shortcomings hold them back, they build well-rounded teams that complement their abilities.
In many cases, it’s the entrepreneurial team, rather than an individual, that drives a venture
toward success. When starting your own business, it’s critical to surround yourself with
teammates who have complementary talents and contribute to a common goal.
6. Risk Tolerance
Entrepreneurship is often associated with risk. While it’s true that launching a venture
requires an entrepreneur to take risks, they also need to take steps to minimize it.
While many things can go wrong when launching a new venture, many things can go right.
According to Entrepreneurship Essentials, entrepreneurs who actively manage the
relationship between risk and reward position their companies to “benefit from the upside.”

20
Successful entrepreneurs are comfortable with encountering some level of risk to reap the
rewards of their efforts; however, their risk tolerance is tightly related to their efforts to
mitigate it.
7. Comfortable with Failure
In addition to managing risk and making calculated decisions, entrepreneurship requires a
certain level of comfort with failure.
It’s estimated that nearly 75 percent of new startups fail. The reasons for failure are vast and
encompass everything from a flawed business model to a lack of focus or motivation. While
many of these risks can be avoided, some are inevitable.
Despite this, successful entrepreneurs must prepare themselves for, and be comfortable with,
failure. Rather than let fear hold them back, they allow the possibility of success to propel
them forward.

8. Persistence
While many successful entrepreneurs are comfortable with the possibility of failing, it doesn’t
mean they give up easily. Rather, they see failure as an opportunity to learn and grow.

Throughout the entrepreneurial process, many hypotheses turn out to be wrong, and some
ventures fail altogether. Part of what makes an entrepreneur successful is their willingness to
learn from mistakes, continue to ask questions, and persist until they reach their goal.
9. Innovation
Many ascribe to the idea that innovation goes hand-in-hand with entrepreneurship. This
notion is often true. Some of the most successful startups have taken existing products or
services and drastically improved them to meet the changing needs of the market.
Innovation is a characteristic some, but not all, entrepreneurs possess. Fortunately, it’s a type
of strategic mindset that can be cultivated. By developing your strategic thinking skills, you
can be well-equipped to spot innovative opportunities and position your venture for success.

10. Long-Term Focus

Finally, most people think of entrepreneurship as the process of starting a business. While the
early stages of launching a venture are critical to its success, the process doesn’t end once the
business is operational.

Other Characteristics include:

-Professionalism, planning, good communication
skills, passion, hardworking, knowledgeable, open-
minded, problem-solving ability and social21skills
among others.
22
Distinction between an entrepreneur and a manager
Point Entrepreneur Manager
Motive Main motive is to start a venture by Main motive is to render
setting up an enterprise services in an enterprise set
up by someone else
Status An entrepreneur is the owner of the A manager is the servant in
enterprise the enterprise owned by the
enterprise.
Risk Bearing Being the owner of an enterprise Does not bear any risk
assumes all risks and uncertainty involved in the enterprise
involved in running the enterprise
Rewards An entrepreneur gets profit which is A manger gets salary as a
highly uncertain reward for the services
rendered by him. Salary of a
manager is certain and fixed.
Innovation They think over what and how to A manager executes the
produce goods to meet the changing plans prepared by the
demands of customers. entrepreneur
Qualifications An entrepreneur needs to attain A manager needs to possess
qualifications like originality and distinct qualifications in
thinking, high achievement motive, terms of sound knowledge in
risk bearing ability and so on. management theory and
practice.

Functions of an Entrepreneur
1. Risk Bearing Functions:
It is the most important and specific function of an entrepreneur. Every business involves
some amount of risk. The production of goods and services is always related to future
demands. The future demand is uncertain and unpredictable, because it is influenced by the
changes in fashion or taste and liking of the consumers.

23
The price structure, value of money, climatic conditions and government policies are some
other important factors that affect the demand of a commodity. All these factors are variable
and as such an exact estimation of future demand is a difficult exercise to work out.
2. Administrative and Decision-Making Functions:
i. Conceiving the Idea of Business:
The entrepreneur conceives the idea of a particular business which suits his nature, skill and
resources. He makes a thorough (intensive and extensive) study of the condition of market
and business prospects. After making a thorough study of economic viability, he decides the
business that he has to start.
ii. Estimation of Details of Business and Implementation of the Same:
After arriving at a conclusion about the nature of business, the entrepreneur works out the
details of business, i.e., what, how and when to produce and from where the resources are to
be arranged. With all these estimations, he makes an all-out effort to give a practical shape to
his plans, organizes various factors of production and sets them to function in proper
harmony.
iii. Supervision and Control of Business Activities:
The entrepreneur has to supervise and control the day-to-day business activities to
accomplish the business objectives. For this he properly coordinates between various factors
of production. As the risk (success or failure) of business operations directly affect his
economy, he keeps a vision and control on the business affairs and avoids unnecessary
expenditures.
iv. Innovation:
Innovation is one of the most important functions of an entrepreneur. An entrepreneur uses
information, knowledge and intuition to come up with new products, new methods of
reducing costs of a product, improvement in design or function of a product, discovering new
markets or new ways of organization of industry. Through innovation, an entrepreneur
converts a material into a resource or combines existing resources into new and more
productive configurations.

24
3. Distributive Functions:
The entrepreneur organizes different factors of production and sets them to work. It,
therefore, becomes his responsibility to make proper allocation of funds for each factor of
production, i.e., each factor of production must be properly remunerated.
The remuneration here refers to an important decision as to what should be the share of each
factor of production in the sale proceeds of the entire product. The remuneration should be
just and equitable and the payment to each factor should be commensurate, so that each factor
is fully satisfied.
4.To Prepare Plan
The first and foremost step for an entrepreneur is to prepare the plan or scheme of production
i. e. the scale of production, types of goods to be produced and its quantity. This also involves
business plan preparation.
5.Supervision:
One of the main jobs of an entrepreneur is to supervise all the factors engaged production
process. He has to supervise every little detail so as to ensure maximum production and
economy.

6.Conduct Market Research:

The entrepreneur after concretizing the ideas of the product has to undertake market research.
The market research would enable the entrepreneur to know the prospect of the product that
he/she intends to produce. The entrepreneur may deploy research teams to conduct the survey
and prepare the report.

Other functions

-Product analysis and market research

-raising necessary funds

-procuring machines and equipment

-undertaking the business operations

-organization of the venture.

25
TYPES OF ENTREPRENEURS
The following are the three main types of entrepreneurs.
i. Craft Entrepreneurs
ii. Opportunistic Entrepreneurs
iii. Egoistic Entrepreneurs
Craft Entrepreneurs Craft entrepreneurs are those who may start a business using their
learnt or acquired skills. They may exhibit the following characteristics:
a. They are of blue-collar
b. origin they come from the informal sector of employment.
b. Their education or training background is focused on the current business activity.
c. They may have low or high technology experience.
d. They have a reputation in a specific industry e masonry, teaching, engineering.
e. They are marginal people and were mostly associated with fellow workers. they do not
identify with unions.
f. They have limited cultural background and social induction with entrepreneurship.
g. They are not interested in growing their business i.e. they are not ambitious. E mechanics
who have worked in motor factories, leave to start their own simple garages.
h. They insist that for things to be done right, they must be done by themselves
i. They tend to hire people they have known for a long time.
j. They gain their customers through prior relations or personal contacts.
k. They do not hold the lowest post nor are they at the management level in the organization
they worked for.
Opportunistic Entrepreneurs Opportunistic entrepreneurs are those entrepreneurs who
may scan the environment in search of a viable business opportunity that may exist. They are
creative and very hardworking and venture in businesses they do not necessarily have skills
or training in. These types of entrepreneurs exhibit the following characteristics:
a. They are of middle-class origin
b. Their education involved many different kinds of courses
c. They have a variety of work experiences and they have been through various educational
courses.
d. They have a reputation across the industry.
e. They are more aggressive/ambitious.
f. They have been in senior profile levels in employment.
g. They are previously associated with managers and business owners.

26
h. They believe that those holding the lower posts in an organization should handle
operations.
i. Their customers are neither gained through prior relations nor personal contacts.
Egoistic Entrepreneurs
Egoistic entrepreneurs venture into business not only because there exists a business opening
but because they would also like to satisfy their ego. They are highly motivated. These types
of entrepreneurs are:
a. They are very eager to experiment upon new ideas.
b. They can acquire material and financial resources to experiment upon new ideas
c. Their economic system is well developed enough to bear the costs of venturing into a
business.
This will entail the provision of model roles, developing codes of ethical conduct and
providing information channels to report questionable actions. Companies should also
include integrity in their evaluations and consider ethical aspects when formulating long-
range plans.

The Entrepreneurial Mindset

As stated by Ireland et al., 2003, the Entrepreneurial mindset is defined as a growth –

oriented perspective through which individuals promote flexibility, creativity, continuous
innovation and renewal.

Indeed, Inventors, business owners and corporate superstars who reshape and remake
companies are some of the strongest cultural heroes.

1. Creativity

The seed of entrepreneurship is the ability to see things differently. Whether it's with new
products or new processes, entrepreneurs are driven by the uncanny knack to see holes in
the marketplace and devise innovations to fill them. Though it’s not the only essential
quality to success, creativity may be the foundational mental skill. Entrepreneurs ask the
“what ifs” that drive inquisitiveness, and they’re able to let go of what they already know to
source fresh information and new ways of thinking about a problem.

27
2. Suspicion of predictors

Entrepreneurs tend not to labour under the assumption that data is the sole predictor of an
outcome. Especially in new markets and with new products where data is largely interpretive
or extrapolated, entrepreneurs are undaunted by the typical predictors that may put off fainter
hearts. One study by Inc. magazine found that nearly 60 percent of Inc. 500 CEOs had not
written business plans prior to the launch of their companies, and only 12 percent had done
market research. These entrepreneurs realize that creating something new is a heated
evolutionary contest, and no one can know the outcome with any amount of certainty. It’s as
if their thinking, freed from the “no’s” of the data, can begin to build, test and refine.

3. Comfort with uncertainty

Similarly, a distrust of prediction and analysis creates an atmosphere where uncertainty rules.
Indeed, uncertainty is the very essence of entrepreneurship. Entrepreneurs are comfortable
existing in that space between raw idea and successful product, and they tend to thrive in the
wide middle ground of experimentation, revision and testing.

4. Openness to experimentation

A comfort with experimentation goes beyond educated trial and error. The ability to
experiment with products, processes and outcomes, no matter where the results may lead, is
the key element of this quality. It’s difficult to fully appreciate how much of what we call
“experimental” is actually quite predictable. Most people are comfortable testing new
products or systems with a range of one or two possible outcomes. When the results fall
nicely within the range, we move on to the next step. But for entrepreneurs who are bringing
something new and novel to the marketplace, experimentation can be truly…experimental.
Removing expectations and letting the results lead you in completely new directions is the
attribute that marks a truly entrepreneurial mind.

5. Functional humility

Egos can destroy the very best ideas. Entrepreneurs who are committed to solving a business
problem or reinventing a product or service display a functional humility. They understand

28
that their egos are only useful in moving the idea forward, not dictating outcomes or
wrestling to make results conform to a preconceived notion. The very best entrepreneurs may
constantly generate and promote their own ideas, but they think and act collaboratively and
are staunchly solutions-focused.

CONTRIBUTIONS OF ENTREPRENEURS TO OUR ECONOMY

1. They develop new markets -entrepreneurs are resourceful and creative and thus can create
customers or buyers for particular commodities.
2. They discover new sources of materials -entrepreneurs are never satisfied with traditional
or existing sources of material.
3. They mobilise capital resources- entrepreneurs are the coordinators of the major factors of
production. They have confidence and innovation in mobilising capital resources.
4. They introduce new technologies-basically through innovation.
5. They create employment- the biggest employer is the business private sector. Many jobs
are provided by the facilities, services, industries, agricultural, and normal small-scale
businesses.
6.Exports- Any growing business will eventually want to get started with exports to expand
their business to foreign markets. This is an important ingredient of economic development
since it provides access to bigger markets, and leads to currency inflows and access to the
latest cutting-edge technologies and processes being used in more developed foreign
markets. Another key benefit is that this expansion that leads to more stable business
revenue during economic downturns in the local economy

7. Facilitating community development through:

 Establishment of small businesses
 Participation in community dev. Projects
 Economic development doesn’t always translate into community
development. Community development requires infrastructure for
education and training, healthcare, and other public services. For example,
you need highly educated and skilled workers in a community to attract
new businesses. If there are educational institutions, technical training
schools and internship opportunities, that will help build the pool of
educated and skilled workers.

8.Providing a positive role model and facilitating.

29
  Competition between domestic entrepreneurship and imported
 Stimulating dev. Of entrepreneurship.
9. Reducing dependence on imported goods and services.
10.Stimulates competition through
 Quality production methods are adopted
 Quality products are produced
 Variety goods and services are produced.

11. Facilitated development of the financial sector through which;

 Capital accumulation is possible through savings
Loaning is facilitated
-Development of the capital market.
12.Standard of Living:

o Increase in the standard of living of people in a community is yet another key

goal of economic development. Entrepreneurs again play a key role in
increasing the standard of living in a community. They do this not just by
creating jobs, but also by developing and adopting innovations that lead to
improvements in the quality of life of their employees, customers, and other
stakeholders in the community. For example, automation that reduces
production costs and enables faster production will make a business unit more
productive, while also providing its customers with the same goods at lower
prices.

Activity:
Discuss economic, social and political factors that inhibit
entrepreneurial activities.
Reading list
https://dcid.sanford.duke.edu/importance-of-entrepreneurship/
https://www.iedunote.com/entrepreneurship-functions Source
iedunote.com was first indexed by Google in September 2016
Katz, J. A., & Green, R. P. (2017). Entrepreneurial small business (5th ed.).
McGraw-Hill Education.

30
 LECTURE FOUR: ENTREPRENEURIAL CULTURE

By the end of this lecture, you should be able to:

- Define entrepreneurial culture and its importance

- Discuss entrepreneurial cultural habits
- Expound on cultural factors that inhibit entrepreneurship and
solutions.

Culture Definition
 Culture is defined as asset of values; perceptions wants and behavior learned by
member of a society from family and other institutions
 Culture is a tool of leaned behavior patterns of living. It is a powerful human tool for
survival constantly changing and easily lost.
 Weber argues that "Protestantism encourages a culture which emphasizes
individualism, achievement motivation, legislation of entrepreneurial vocations,
rationality and self - reliance.
 Hosted - defines culture as a collective programming of the mind which distinguishes
the member of one group or category of people from another.

Entrepreneurial Culture

Refers to the way of embracing the concept of finding new opportunities in business:
gathering the necessary resources to fill the opportunity.
 Many governments around the world want to promote entrepreneurship because have
recognized the importance of entrepreneurship.
 In other words, entrepreneurial culture is a way of people embarrassing life by
Paring in activities that enable then create new business enterprises,
 A country can develop the entrepreneurial culture by forming policies that constitute
the following;

31
  Integration of entrepreneurship training in the overall education sys tern to tap
on youths
 Exposure of entrepreneurship those look potential to actual business practices
and activities through the networks and business contacts of rule models.
 Creation of a conducive and enabling that permits new business to immerge
and flourish,
The creation of entrepreneurial culture has to come from deep social convictions based on
strong values and systems of the locals
 It should be created in a way that it welcomes entrepreneurship and respects the =tor
and also reflecting the core values

What Constitutes Entrepreneurial Culture?

 Growth in concentration of firms networks and linkages

 Growth in intermediary organizations to which some tasks are delegated and it
 different form of entrepreneurship
 High levels of education skills and learning.

Importance of Entrepreneurship Culture

 Enhances economic growth and building of social capital.
 Enhances job creation
 Acts as a primary source of innovation
 Helps in the devolution of government power for policy implementation,
 Direct influence development in tech. H/R capital formation e.t.c.

The cultural habits that promote entrepreneurial development

(a) Money orientation
 Money oriented people know the value of money and has the intention of making it.
 The money oriented people use the need of money as a motivating factor pushing then
to being entrepreneurs.
(b) Future orientation
 A society that has foresight to know about the future business environment is

32
 likely to have more entrepreneurs.
 This is because they are likely to visualize key changes that are likely to create
opportunity.

(c) Time consciousness

 Knowledge that time exists and its importance
 Knowing the right time to start an entrepreneurial activity.
 Utilization of time
 The correct timing of the market conditions
(d) Trust and honesty
 Through trust consumer demand is gained on the products and services available.
 Entrepreneurs should reciprocate this by ensuring honesty by providing the expected
standards.
(e) Hard work i.e
 Willingness to work hard distinguishes between successful and unsuccessful persons.

The cultural factors inhibiting entrepreneurial development.

(a) Religion - religious believes may deter entrepreneurial investments in items such as night
clubs and pubs.
(b) Language - establishing businesses in areas where language barrier may allow poor
communication or fear of invention.
(c) Personal relationship - Married people may avoid getting involved in business since no
time is spared for the family.
(d) Attitude towards innovation
 Especially in cultures which oppose innovation due to fear of change.
(e)Networks- poor networking and ability to meet people limit new
i. Opportunities
ii. New knowledge
iii. New information.
(f) Technology - lack of technical skills and knowledge may slow growth and dev. Of
entrepreneurial

33
Ways of managing Factors which Inhibits Development of Entrepreneurial culture.

1. Working in related business to gather the necessary skills required before one arts his
own business.
2. Setting policies that ensure that entrepreneurship training is established in the school
syllabus.
3. Your people to be encouraged to read articles from newspaper, watch television and
business contacts to enable them choose products in demand with a bright future.
4. Young youths as well as aspiring adults’ entrepreneurs should be encouraged to get
better and faster access to
a) Knowledge
b) Information or business
c) Competition
d) Internet etc.
5. Aspiring entrepreneurs to seek guidance in selection of machines and other facilities.

Activity:
Discuss ten entrepreneurial activities in Kenya that inhibit entrepreneurship and solutions.
Reading list:
https://socialimpactarchitects.com/entrepreneurial-culture/
Houlihan, Michael, Harvey, Bonnie (2014) The Entrepreneurial Culture: 23 Ways to Engage
and Empower Your People
Entrepreneurship and Culture (2009) Springer publishers

34
LECTURE FIVE: ENTREPRENEURIAL OPPORTUNITIES

By the end of the lecture, you should be able to: -

a) Explain the meaning of business opportunity
b) Explain ways of generating ideas for business opportunities
c) Evaluation of business opportunities for viability

Meaning of business opportunity

A business opportunity is an attractive idea which provides the possibility of a return for the
entrepreneur taking the risk. Such opportunities are presented by customer requirements and
lead to the provision of a product or service which creates or adds value to the buyers or end
users.
Characteristics of a good business opportunity
A good business opportunity must fulfil or be capable of meeting the following:
• Real demand - it should respond to unsatisfied needs or requirements of customers who
have ability to purchase and are willing to exercise that choice.
• Return on investment – provide durable, timely and acceptable returns or rewards for the
risk and effort required.
• Competitive – Equal to or better – from the viewpoint of the customer – than other
available products or services.
• Meet objectives – meet the goals and aspirations of the person taking the risk
• Available resources and competencies – be within the reach of the entrepreneur in terms of
resource, competency, legal requirements etc.
Ways of Generating business ideas
What is a Business Idea?
• An opportunity in the environment which, can be translated into a business activity.

35
 • The existence of a situation in the environment which, can be advantageously turned into a
business activity.
• The existence of an opportunity which can be exploited for making money through the
operation of business activities.
• It is the response of a person (s) or organisation to solving an identified problem or to
meeting perceived needs in the environment (markets, community)

Why search and evaluate business ideas?

• You need a great idea to start a new business. A good business idea is essential for
successful business venture both when starting a business and to stay competitive afterwards
• Business ideas need to respond to market needs. Customers have needs/wants waiting to be
satisfied. Firms that are able to satisfy these requirements are rewarded.
• Business ideas need to respond to changing consumer wants and needs. It provides
opportunities for the entrepreneur to respond to demand with new ideas, products/services
• Business ideas help entrepreneurs stay ahead of competition. Challenge is to be different or
better than others. If you don’t come up with new ideas products/services a competitor will.
• Business ideas use technology to do things better. Technology has become the major
competitive tool in today’s markets as a result of which many people have to come up with
new ideas.
• Business ideas are needed because the life cycles of products are limited. Products have a
finite life, they become obsolete or outdated. Firms have to introduce new products
• Business ideas help to ensure that businesses operate effectively and efficiently.
• There are so many business opportunities available at any one time and the requirements
for translating them into business activities differ between each of them.
• The need to develop a competitive edge by providing something new that has little or no
competition.
• The success and profitability differ between various business opportunities, hence need to
pick one with profit and success potential. Finding a good idea is the first step into
transforming the entrepreneurs desire and creativity into a business opportunity.
Sources of business ideas can be generated from:
i) Hobbies/personal interests
ii) Personal skills/experience
iii) Franchises – An agreement where manufacturers or sole traders of a trade mark,
product/service gives exclusive rights for local distribution to independent retailers in
Availability and access of these resources determines whether certain opportunities
can be pursued.
iv) Environment This refers to political, economic, geographical, legal, regulatory and
also physical environment within which a business operates.

36
v) Business plans the process of examining the factors discussed above is often the
initial step in developing a business plan. Investors and lenders may require these
issues to be considered and set out in form of a business plan.
vi) identifying a need
vii) brainstorming
viii) spotting a market niche
ix) listening to what people say
x) attribute listening
xi) gaining from waste
xii) look to see and listen to hear
xiii) research
xiv) importing an idea
xv) day dreaming
xvi) Spin off from employment

The Process of Screening a Business Idea.

-After generating business ideas- it is important that some evaluation through a
screening process be made.
-The screening process is a systematic evaluation idea in order to select the best
idea which would suit one.
-The screening process must be done carefully, objectively, soberly and without
any emotions.
-The business idea screening is required even when there is only one idea to consider. This is
because this is a stage of starting a business that may be not be profitable or may be difficult
to run
The screening process must therefore evaluate the following
(a) Personal Evaluation
i. The objective for going to business
ii. personal interests
iii. The degree of commitment to the business or others e.g family,

(i) Personal Skills

The self SWOT analysis - this aims at analysing ones

Strengths
Weaknesses

37
 Opportunities
Threats
S- Relates to the internal capacity of self or organization
W-Are subjective
O- Relates to the external environment to self or organization
T-Are objective.

Importance of this Screening State include;

• In order to develop a strategic profile.
• To provide a framework to assess the current and future plans
• To act as a control technique when conducted periodically
• To get realization (reality) on the activities

Components of the SWOT Analysis (importance of self-evaluation)

The screening process or evaluation helps identify;
(a) Strength
i. Distinctive competence
ii. Adequate finances
iii. Access to economies of scale
iv. good innovation ability
v. Proven management
b) Weakness
i. Lack of key skill
ii. Internal operations problems
iii. Low morale
iv. Poor track records
v. Weak internal image
(c) Opportunities
i. Potential customers
ii. Potential goodwill

38
iii. Health
iv. A favourable social
(d)Threats
i. strong competitions
ii. Adverse government policies
iii. Political instability
iv. A designed economy mismanaged economy
v. Unfavourable legislation

a) Market evaluations
 The aim is to create assurance of adequate market
 The main components include:
i. Consumer demand analysis
ii. Product price and placements
iii. No. of competitors in markets.

b) An analysis of availability of raw materials in terms of

i. Adequacy
ii. Reliability
iii. Price

(c) Analysis of providing technology in terms of

i. Appropriateness
ii. Affordability

(d) An analysis of skills available

(e) Analysis of the government policies.

Characteristics of a Good Business idea.

(a) Easy to manage and involve minimal risk.
(b) Does not require excessive capital investments

39
(c) Offers a good returns on capital
(d) The idea has scope for growth, expansion and diversification
(e) Comparative with owner's goal and interest
(f) Not against expectation of the society
(g) Has a short gestation period
(h) Has a readily available market
(i) Easy to exit when necessary.

Self-assessment questions
1.Briefly explain the meaning of business opportunity
2. Explain methods of generating business ideas for business opportunities
3. For an idea to translate to an opportunity it has to be screened or evaluated. As an
entrepreneur discuss how an idea is evaluated for viability.
Reading list:
https://www.igi-global.com/dictionary/entrepreneurship-and-chance/67279
https://www.linkedin.com/pulse/how-identify-entrepreneurial-opportunities-kennedy-
mulenga-mba
Phillip McIntyre, Janet Fulton, Susan Kerrigan, Michael Meany (2023) Entrepreneurship
in the Creative Industries: How Innovative Agents, Skills and Networks Interact Palgrave
Macmillan

LECTURE SIX: CAT 1 (All the best in your CAT)

40
 LECTURE SEVEN: STARTING A SMALL BUSINESS

By the end of the lesson, you should be able to:

a) Describe the procedure of starting a business enterprise
b) Explain the factors to be considered when starting a small enterprise
c) Describe the different forms of business ownership
d) Explain challenges that are faced when starting a small enterprise
e) Describe business life cycle
f) Discuss business support services available to small businesses

Procedure for starting a small enterprise

For a business to succeed the right approach must be followed. Below is a suggested
approach that can be followed:
i) Idea generation.
ii) Market survey:
• Define problem, target population, select sample, define survey instruments, collect
data, analyse data, report findings

ii) Business plan

• business description
• marketing
• operation/production
• management
• finance
• risks and assumption
iii) Selection of a suitable location.

41
iv) mobilisation of finance
v) Business registration.
vi) Licensing.
Factors to consider when starting a small enterprise.
Below are some of the factors to consider when starting a business:
i) Entrepreneurial traits
ii) Business management and technical skills
iii) Long term market demand for product/service
iv) The cost of starting, operating and personal finance
v) The level of competition – direct, indirect and future
vi) The business location – zoning law and appropriateness
vii) The rules and regulations for operating the business.
o Legal registration
o Tax compliance
o Relevant licenses
o Code of conduct
o Environmental requirements
viii) The anticipated profit.
o Importance of profit
o Adequate to cover inflation rate and opportunity cost
o Adequate to cover all expense, savings and investment
ix) The machinery, tools and equipment required and their cost.
o Lease/buy decision
o Calculation of lease/ buy decision
o Maintenance cost
o Availability of spare parts
o Cost of service
o Availability of technical support
o Technological advances
x) The source of supply of goods/raw materials.
• Identify long term supply sources/ reliable source
Advantages
• Ease of formation: this is the easiest form of business organization to establish. There are
no complex forms to complete and no documentation required between you and any other
42
party. It involves registering your choice of business with the registrar of companies by
filling in a simple form and paying a small registration fee.
• Easy to raise capital.
• Owner makes independent decisions: the business owner has complete control over the
business is solely responsible for all decisions in the business.
• Owner has personal contact with employees and customers.
• Owner enjoys all the profits.
• Flexibility: the business owner is able to respond quickly to business needs in day-to-day
management decisions of the business. One can easily take advantage of an attractive
business opportunity.
• Total control of business
Disadvantages
• Bears all the losses.
• Capital base may be limited: This kind of business has less financing capacity. The amount
of funds a sole proprietor can raise is limited to their assets and their credit worthiness.
• Has unlimited liability: The business owner has little or no protection against personal
liability in the event of bankruptcy or adverse legal judgement. Personal assets such as the
owners house, land, car and investments are liable to be seized if necessary to pay
outstanding debts.
• Success of the business depends on the entrepreneur’s hard work.
• Business operations can be affected by death of the owner.
ii) Partnerships A partnership is an association of two or more persons who come together
to carry on a business with a view to making profit. Although it is possible to establish a
valid partnership without a formal agreement, it is advisable to sign an agreement first. The
agreement will state:
• The effective date of the partnership.
• The business name of the partnership.
• The contributions of capital by each partner
• How the business profits and losses will be shared.
• How a partner may withdraw from the partnership
• How the business assets and liabilities will be shared in the event of a dissolution.
Advantages
• Capacity for more capital; partners can raise more capital than a sole trader. The asset base
is much higher.
• Work is divided among partners.

43
 • Better combination of skills and talents: for example, a mechanic and driver could
successfully combine resources and talents to start a driving school.
• Losses and liabilities are shared among partners.
• Business can easily expand.
• Formation of the business is simple: the registration and legal formalities are easy and
simple.

Disadvantages - The liability of partners is unlimited.

- Partners are likely to disagree on various matters affecting the business.
- If one partner makes a mistake, all other partners suffer the consequences.
- Some partners may work harder than others, yet the profits are shared. This may discourage
a hard-working partner.
- If the business relies heavily on one partner and the partner leaves or dies, the firm can
easily collapse.
- Control is shared
iii) Private limited company – It is formed by a minimum of two shareholders and a
maximum of fifty.
Advantages - Can raise more capital through sale of shares. - It has limited liability.
• Death of a shareholder does not affect its operations.
• They are managed by professionals.
Disadvantages
• Shareholders can only transfer their shares with the consent of other shareholders.
• The company is not allowed to appeal to the public for extra capital, so it may find it
difficult to raise money for expansion.
• Accounts of the company must be filed annually with the registrar of companies.
iv) Public limited company – It has a minimum of seven shareholders and no maximum
number of shareholders Advantages
1. Shareholders liability is limited to the amount contributed.
2. It can raise more funds through sale of shares.
3. There is no restriction on the transfer of shares.
4. Public companies can easily expand due to large capital base. Disadvantages
5. The procedure of forming the company is long and complicated.
6. Raising capital can be expensive due to the cost involved.

44
 7. As the company grows it may be difficult to manage.
8. Once established it has to comply with many regulations.
9. The accounts of a public company must be published, so there is no secrecy or
privacy about its affairs.
10. Owners exercise little control over the business.
v) Co-operative - It is formed by people with a common interest such as those in the same
trade or dealing in similar commodities.
Challenges faced when starting a small business
i) Estimating market demand
ii) Estimating start –up capital and operating expenses
iii) Meeting collateral requirement – obtaining money to adequately fund the start –up
iv) Meeting legal requirements
v) Financial institutions are redundant to lend to start –ups
vi) Identifying reliable source of supply
vii) Lack of entrepreneurial skills, business management skills and technical
viii) Selecting a suitable business location
ix) Deciding on the type of business ownership

Activity
In groups discuss the procedure of starting a business relevant to your area of study and challenges you are likely
to encounter.
Reading list:
Entrepreneurship's Guide: The Ultimate Business & Learning Experience CreateSpace (2001) Independent
Publishing Platform
Francis J. Greene (2020) Entrepreneurship Theory and Practice Red Globe Press

Justin G. Longenecker, J. William Petty, Leslie E. Palich, Frank Hoy (2022)Small Business Management: Launching &
Ventures Cengage Learning

45
 LECTURE EIGHT: MARKETING REQUIREMENTS ASSESSING AND
SELECTING A SUITABLE MARKET

By the end of the lesson, the learner should be able to assess and select suitable is.
Specifically, you should;
i. Explain marketing functions and strategies
ii. Discuss the various methods of product promotion
iii. Explain the 4 Ps of marketing
iv. Describe factors which may influence an entrepreneur in choosing a promotional
method

Marketing Functions and strategies

 Marketing consists of a multitude activity that include decisions about the company's
 Products or services
 Pricing policies
 Promotions and
 Distribution methods
 The ultimate equal is to facilitate exchange between an enterprise and its
customers.
 This exchange relationship exists as one party becomes willing to give something
of value in order to receive something of value.
 Marketing is the process of conceiving than exchange and then accomplishing the
tasks necessary to deliver the goods or services in a manner that satisfies customer
and meets the business objective.

Marketing Functions
 Is the combination, designing and integrating all elements of marketing into various
functions which on the basis of an appraisal of the market forces would achieve the
objectives of an enterprise at a given time.
Marketing functions include:
a) The product - involves the planning, designing and developing the right type of
the product in order to meet the customer's satisfaction. It includes.

46
 i. The packing of the product
ii. The image
iii. The brand name and label
iv. The product
v. The product quality
vi. The product ranges
vii. The product output
viii. The product warrantees and after sale services
ix. The product policy
x. The product

ii) The price- involves giving value which is charged by the suppliers. This is an
important element of marking because;
i. It relates directly to the generation of revenue
ii. Measures the profit cost and revenue elements.
iii. Affects the product quality and quantity
iv. Has a psychological impact on consumers.
iii) The placement - also known as distribution is concerned with linking the seller and
buyer through the product and involves elements of
i. Inform potential customers
ii. To convince and persuade existing customers to continuer choosing the product
iii. To establish a business image or good will
iv. To canter competition from other business dealings
v. To increase sales and revenue.

The marketing strategy

 This is a consciously formulated plan that describes how the new venture will
compete.
 It focuses the business enterprise on a target market to fill the gap or create a niche.
 A well calculated marketing strategy provides guidelines for the entrepreneur
concerning-:
 The expected results
 Allocation of resources
 Responsibilities for marketing
 Ways of controlling the enterprise.

The marketing Plan

Solidifies the marketing strategy by defining customers, sales forecasts and marketing
objectives.
 It synthesizes market research and the entrepreneur’s strategy into a blueprint for
action
 The plan is implemented through a marketing programmed, which addresses the

47
 marketing activities decisions regarding product, the pricing, the promotional
activities and the placement activities.
The Marketing Mix
 The term marketing mix refers to the apportionment of effort, combinations,
designing and integration of all elements of marketing into a single
programmed aimed at achieving the objective of a business enterprise.
 it is a detailed strategy, tasks, operations policies programmers, techniques and
activities to which resources may be allocated to achieve marketing objectives.
 The term is used to describe the combination of the four inputs which
constitute a marketing system ( 4pcs) i.e.
 The product
 The price
 The placement
 The promotions

The 4 Ps (the four Ps)

The marketing mix denotes a combination of the various elements which in their totality
make up a marketing system i.e., the product, the price, the placement and the promotion.

The Product
 The product element of the marketing mix involves the planning, designing and
developing the right type of the product or service to meet the customer satisfaction.
The main decisions involve-;
The product involves
i. The product sizes
ii. The product quality
iii. The product designs
iv. The product ranges
v. The product volume
vi. The product packaging
vii. The brand name and label.
viii. The product warranties and after sale service.
ix.
 The product element of the marketing mix strives to establish,
 A product policy

48
  The product strategies
 The product mixes
a) A product Policy
 The product policy is a principal of operation on the production process of a given
product adopted by the management to guide those who carry out the action.
 A product policy sets out the objectives to be achieved and also the limits within
which the management has to operate.
 The main functions of a product policy are to guide the activities of the firm
towards its common goals which include.
a) Considerations of the product mix
b) Considerations of the rate nature and direction in changes in demand
c) Product elimination and new product dev.
 The product policies engage in product planning development, production marketing,
volume of production, timing etc.

b) Product Mix
 A product mix lists all products offered for sale by a company which details three
diminutions of a product - namely;
 The product breadth
 The product depth and
 Consistency
 The product breadth- is measured by the number of variety of products manufactures
by a single firm e.g. - the Panasonic company - making TVs fridges radios DVDs etc.
 The product consistency - refers to the close relationship of different product line
either to their end distribution channel etc. e.g., the Toyota Company - produces those
goods which fall under motor vehicles - consistency is seen- unlike unclever.
 The product depth- refers to the assortment of size, color and models with each line
e.g. the Toyota car.

The Price
 Pricing the product is an important element of the marketing mix.
 Price is the value or sum of money which is charged by the supplier of a product or I
service from the buyer.

49
  The financial price is the measurement of value and has the following importance.
i. economic value- because it relates to the generation of product revenue.
ii. Profits - through price profit cost and revenue elements are measurable.
iii. Product quality - price gives indication of the product quality.
iv. The psychological element- price has a psychological influence in the
Marketize high prices co-relate to superiority.
v. Co-operate goals- are achievable through pricing decisions especially in!
formulating marking strategies
vi. Meeting consumer expectations is measurable through price.

Placement
 Also known as distribution of goods physically
 This component of the marketing mix is concerned with linking the seller and the
buyer.
 It involves the elements of
 The channels of distribution
 The transport means
 The warehousing
 The routing of the product.

Promotions
A promotional message)
 A product promotion is the act of providing information about a product to its
prospective users in order to persuade them to buy , enjoy or choose the product
 Any product promotional message usually includes information which shows;
 That the product exists
 That the product has ability to satisfy a particular want
 The physical location where the product can be obtained or enjoyed
 The qualities that the product can be obtained or enjoyed.
 The quantities that the product can be obtained
 The times when the product can be obtained
 The price of the product.
 Exam quest, briefly explain what entails a promotional message.

50
Factors that influence a product promotion.
1. The nature of the market
Where competition prevails, producers strive to make their products sale as
opposed to less competitiveness.
2. The nature of the consumers
 The level of information the consumers are accessible to creates awareness.
 Any gaps left are filled with product promotion
3. the effect of modern technology.

The importance of product promotion

1. To inform potential customers about the existence qualities and other important
details regarding a product.
2. To convince or persuade existing customers to continue buying the product and
potential customers to choose it.
3. To establish a business image or goodwill among the existing and prospective
customers
4. To facilitate more sales revenue.

Methods of Product Promotion

 There are five main ways of promoting products namely
 Advertising
 Personal selling
 Sales promotion
 Publicity
 Public relations
a) Advertising
 Refers to drawing attention to or describing a product in a public medium e.g.
 newspapers, radio, television etc.
 Any advert in order to give value for its purpose should contain the following
 aspects.
 a media presentation

51
  payments for the advert
 Identifiable sponsor who pays for the advert.
Note:
 Any communication without costs to the sponsor is publicity and not advertisement.

Reasons for Advertising

 To introduce new products
 To stimulate desire for more quantities of the product
 To persuade the public to buy the product
 To explain new uses of a product
 To remind customers of the existing product
 To explain new used of a product
 To create recognition of a particular brand of products
 To maintain the products name or slogan in public
 To prepare way for sales persons in selling'
 To remove any bias that customers may have developed about the product.
 To inform customers of new prices, packaging changes or any other changes
 To supplement the efforts of salesmen
 To reach out for few markets.

Types of Advertising
 Any advert may be classified on the basis of
 What is emphasized
 The nature of the message advertised
 The geographical coverage
 But the main types include.
 product advertising - which basically promotes the sale of a particular brand of a
product
a. no mention of the manufacturer and emphasis is on the product e.g
Accountancy profession"
 Institutional advertising - tends to focus on creating a positive attitude on the
business producing or providing the product / service emphasis in on the

52
institution.

53
  Primary demand advertising - targets demand stimulation for arrange of products
without mentioning a specific brand or manufacturer e.g Adidas products or
GNLD products.
 Celebrity advertising - the advert uses a famous personality to enclose the use of a
given product - The aim is to use these people to attract attention.
 Corrective advertisement - seeks to correct errors or misleading claims made in an
earlier advertisement.

Advertising Media
 An advertising media is the means through which an advertised message is
conveyed to the members of the public who are consumers.
 The following are some of types of media available to advertisement,
 The press e.g newspapers
 Posters
 Billboards
 Brochures
 Shopping news
 Radio
 Television
 Neon signs etc.

Factors which determine choice of an advertising medium

a. The intended target groups
 The nature of the target group in terms of habits customers age, etc. will determine
choice of the right medium.
b. the physical characteristics
 The mediums physical characteristics i.e., visual aspects, color, movement's etc.
c. Media circulation
 Where an advertiser aims to reach countrywide cliental, choice of a nationwide media
is necessary.
d. Cost of advertising
 Should be affordable and that they should be reasonable compared to the returns.
e. urgency of the advertisement
 Urgent and quick adverts may require mediums such as Radio, TV etc.

54
Advantages of advertising
1. To the advertiser (or business enterprise)
i. It provides a business enterprise with opportunity to inform the public on what
they offer.
ii. It stimulates demand for a product thereby increasing sales and the sellers’ profits.
iii. Acts as a reminder to customers of the existing products.
iv. Helps sustain brand loyalty
v. It quickens brand recognition
vi. Enables quick access and purchasing of the product after knowledge of
placement and quantities.
To the customer
i. It increases customers awareness of a new product
ii. Helps indicate the variety of products available in the market
facilitating choice
iii. Leads to better quality products due to competition
iv. Leads to increased qualities being produced.

Disadvantages
I. To the advertiser
i. A costly method of promoting products
ii. Where offensive or erroneous may be negative
iii. One can be sued where advert is misleading.
iv. Competitive advertising may cause a seller to be pushed out of
v. business.
vi. Difficulty due to existence of several media.

2. To the customer
vii. Advertising costs are normally borne by the consumer
Misleading especially where there is consumer ignorance
viii. Encourage impulse or irrational buying
ix. Some adverts are irritating, anti-cultural and offensive.

b. Sales Promotion

55
 Sales promotion refers to the strategies and incentives which are aimed at
promoting the purchase of a given product.
 The sales promotion strategies are divided into two namely.
(a) The strategies aimed at the customer directly these include
i. direct main i.e cards, postcards e.t.c
ii. gifts and other premiums e,g soap, toothbrushes
iii. discounts
iv. displays e,g supermarket
v. credit facilities
vi. Use of loss leaders - one good is sold cheap to attract customers.
vii. Use of free samples
viii. After sale services.
(b) The strategies aimed at the sales force
i. commissions - money given to dealers
ii. demonstrations models
iii. push money- to facilitate movement of the salesmen ,
iv. training .
v. Provision of point of sale displays.

Advantages of Sales Promotion

 promotion activities persuade and convince potential customers i
 expand the market scope
 discounts reduce prices for consumers and credits stimulate a
greater turn over ' ,
 attracts customers through use of price leaders
 Good will is built by after sales services and sample giving.
 Training and demonstrations remove fear of using a product

Disadvantages of Sales Promotion

 The sales promotional incentives are expensive i.e free sample
 Bad debts may arise from credit facilities
 Time and money consuming for sales services especially
 After sale services ties customers to one seller.

56
 (C) Personal Selling
This is the method of promoting
 availability of adequate resources for the sales force
 easy accessible and concentrated markets I
 high unit value for the product
 products whose use needs demonstration
 Suitability of a product to individual need as opposed to general use.
 Introduction of new products in the market.

Forms of personal Selling

 Field sales
 Showroom selling
 Shows, trade lairs and exhibitions.

Advantages of Personal Selling

i. presents an opportunity to show the existing and potential customers what is
available
ii. it offers the prospective buyers an opportunity to see, examine taste and ask
questions about a product - and chance of comparing
iii. the questions from prospective buyers are immediately answered
iv. immediate contacts are made between sellers and buyers for follow up f
v. complementary adverts from other mediums e.g. advertising
vi. Seller has opportunity to obtain information about the competing projects and
promotional strategies.

57
 Disadvantages
 it is an expensive promotional method - especially where a wide coverage
 and oversees exhibitions are involved.
 Energy and time are consumed on talks convincing and demonstrations
 Requires cost controls of sales persons
 Has limited coverage as it targets a limited group.

(d) Publicity
 Refers to the free advertising whereby the desire for a product is created or
boasted by unpaid - for features or presentation in the mass-media ( e.g a feature I
in press)
 These features may be solicited for or unsolicited for but remain entirely unpaid
for by the business. - or a news release sent to studio.

Advantages
Builds the sellers goodwill and image among existing and prospective customers
i. It involves no costs on the side of the seller
ii. Has a large and widespread reach since it conveyed through media.
iii. Has a high creditability as it is reported independently.

Disadvantages
 Unfavorable information may be released unknowingly released to the public o
Information released is to the discretion of the media house
 It is irregular and short - lived hence my not be effective.
(e)Public Relations
The term public relations (PR) when used in product promotion refers to the process of
communicating information of an organization product. Policies and actions to specific
consumer groups or the public at large.
 This is done with the view of creating awareness and a positive attitude towards
 the organization and the product.
 It could also be done to correct mis-information or rehabilitate a spoilt image
inorder to get a satisfied client.

58
  It aims at creating a favorable attitude towards the organization in order to
promote acceptance.

Strategies of Public Relations

(a) Market research i.e.
The process of gathering recording and analysis information about a market with the view
of coming up with the best strategies of selling products in that particular market.

(b) Consumer research

Where activities are concentrated on knowing more about the consumer. The aim is to
identify which products have the highest value to the consumer

(c) Market segmentation

Refers to the process of subdividing the market into sections to scope rate various
interests of various consumer groups.
a) Product difference
b) Branding
c) Packaging.

Advantages
i. Effective in presenting information about the product and policies of an
organization
ii. addresses the desired target audience
iii. effective in correcting any mis-information

Disadvantages
i. Expansive and therefore requires careful planning in both time and funds
ii. Impact takes time- hence is a long term.
iii. Its impact is difficult to gauge.

59
 Factors which may influence an entrepreneur in choosing a promotional
method.
1. Cost element of each method of promotion should be analyzed in order to suit
financial abilities
2. Targeted audience is important in order to address an appropriate combination
method.
3. The nature of the product to be promoted
4. Those that may require demonstrations and training etc.
5. Urgency of the promotional message.
6. Availability of resources especially the mechanical physical and human resources to
implement a promotional mix.
7. level of demand for the product
8. where demand is high fewer promotional methods are required
9. the competitors’ promotional strategies
10. availability of media that is most accessible to its customers

Activity:
a) What is a marketing plan?
b) State and briefly explain the contents includes in a marketing plan.
b) Resistance to change has ordinary been associated with change are
accepted a major element of a change process. Give a brief account of ways that a
business organization can adopt to reduce resistant to change by employees.
Reading list:
https://peepstrategy.com/what-is-entrepreneurial-marketing/ Source peepstrategy.com
was first indexed by Google in June 2021
https://us.sagepub.com/en-us/nam/marketing-for-entrepreneurs/book244441
Die Sieben P S Des Marketings (2003) Marketing-mix.

60
 LECTURE NINE: BUSINESS PLAN

By the end of the course, you should be able to develop a business plan.
Specifically, the learner should:
i. Explain the motives for capital expenditure and the steps followed in the
capital budgeting process.
ii. Define business plan
iii. Explain the importance of business plan;

Definition: a business plan is a document that convincingly demonstrate that your

business idea can sell enough of its products and services so as to make products and
services so as to make satisfactory profit and attractable to potential financiers. In other
words, a business plan in a road map you can follow to start and manage a successful
business. It shows step by step on how to start, fund, manage, monitor, and evaluate a
successful business.

Business Plan as a Tool

1. Objective and goal creating tool
2. management tool
3. training tool
4. promotion tool
5. fund raising tool/capital
6. staffing tool
7. monitoring and evaluating tool
8. business creation tool
9. weakness/ omissions identifying tool
10. measuring performance
11. for motivation

61
Why Prepare a Business Plan
1. To avoid silly mistakes
2. It defines and focus business objectives and goals
3. As a tool for fundraising, marketing, monitoring, evaluation, staffing
4. To be realistic on our intentions
5. To clearly communicate your vision/ ideas to other within and outside.

Who should writes a Business Plan?

1. should be written by entrepreneur since he/ she is the owner of the business idea and is
the custodian of the vision
2. Can be written by consultants and employees.
3.

What is a "good" Plan?

1. a good plan should be dynamic document which should be available for reference
for decision making evaluation and future plans
2. it should clearly communicate visions and ideas
3. should show the evidence of understanding of target customers
4. Appealing to the potential financier.

Benefits
1. It forces would be entrepreneur to establish written goals and objectives for their
proposed businesses.
2. it enables potential entrepreneur to assess the viability of their business
opportunity on paper
3. it assist in identifying the potential customers, marketing opportunities, pricing
strategy, promotional activities, distribution strategy and a competitive conditions
needed for business success.
4. it identifies the number of employees needed, the skills they should possess, the
task they will perform and the methods of remuneration to be adopted.
5. it establishes the financial needs of a business and suggests the possible sources of
financing

62
 6. it helps to identify critical factors for successful entry and growth of a businesses
in a given market place.

Components of a business plan

Business plans include details under the following main sections;

1. Executive summary
2. Business description
3. Marketing plan
4. Competitor analysis
5. Management plan
6. Business operation (production/ service, delivery plan)
7. Financial plan
8. Appendices

Executive Summary
N/B. This should be done last
It includes the;
1. type of venture
2. products/ service to be offered '
3. how unique
4. it there a major opportunity for products/ services
5. the business status/ stage
6. legal form of business
7. location of business
8. target market
9. % share of market
10. competitor strength and weakness
11. strategy of entering the market
12. managing staff and their qualifications and experiences
13. Time frame for accomplishing your goals.
14. how much money needed for starting and running the business
15. what type of financing are seeking

63
 a) loan
b) grand
16. the strength of the business that will make it succeed
17. future plans of the business

Business Description
For a new startup business, it will include
1. objectives, vision, mission statement and goals
2. specific objectives (SMART)

3. service objective (qualify of service)

4. profit objective (actual % and amount targeted)
5. growth objective
6. social objectives (corporate responsibility)
7. type/form of business venture
8. date of commencement
9. physical location
10. advantages of the location
11. postal address, physical address/ street/buildings/ road
12. telephone contact/email/fax/website
13. brief history of the business (company)
14. experiences of the owners

Marketing Plan
1. description of the target market (customer segment)
2. description of products/ services
3. prices of products/services
4. distribution of products /services
5. promotion of productions/services

Competitor Analysis
1. internal analysis both strength and weakness
2. external analysis (opportunities and threats)
3. environmental analysis (political, social, economic, regulatory factors that can

64
 impact on your business)

Management and Organization

1. Key management staff
a) their positions/ designations and responsibilities
b) qualification and experience

2. Other staff
a) their positions/ designation and responsibilities
b) qualification and experience
c) Their number.

3. Human resources practices

a) Staff recruitment
b) Motivation'
c) Training and development
d) Reward and recognition
e) Staff appraisal

Business Operation
1. Product/service development design and facilities.
2. Description of premises
3. ownership status
4. renovations/ facelifts/medications
5. products and services to be offered
6. machinery, tools, equipment and other facilities required
7. implementation
a) procurement
b) repair and maintenance
c) repair and maintenance
d) future expansions
8. legal requirements: business name, tax compliance, labor laws, by-laws etc.
9. monthly overhead expenses
10. professional and support services

65
 Financial Plan
a) pre-operational costs (costs before start-up
b) working capital
c) projected monthly cash flow statement
d) projected annual cash flow statement
e) projected proforma income statement
f) projected balance sheet

Appendix
1. brochures and advertisement materials
2. maps and photos of location
3. copies of lease and contracts
4. company certificates of registration
5. list of assets available as collateral for a loan
6. copies of licenses
7. research and marketing results
8. any other materials needed to support your business plan
9. list of equipment owned or to be purchased

How does Potential Lenders and Investors Evaluate the Plan

 Potential readers or evaluators should reflect on the strengths of management and
personnel, the product or service and the available resources.
 Suppliers who may want to see a business plan before signing a contract together
with customers who may want to see the business plan before buying the
productor service and the available resources
 Suppliers who may want to see a business plan before signing a contract together
with customers who may want to see the business plan before buying the products
pay more attention to the experience of the entrepreneur
 Market projections
 Lenders will primarily be interest in the ability of the new venture to pay back the
 debt of together with the interest within a designated period of time.
 Banks want facts with an objective analysis of the business opportunity and all the
 potential risks associated with a business

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  Lenders focus on the 4cs of credit i.e
i. Cash flow
ii. Collateral
iii. Character
iv. Contribution of equity
 The business plan must therefore reflect the entrepreneurs credit history, the
ability of the entrepreneur to meet the debt and the interest payable ( cash flow)
the collateral or tangible assets being secured for the loan and the amount of
personal equity the-entrepreneur has invested in the business.
 Investors on the other hand place more emphasis on the entrepreneurs character
then lenders.
 Investors want to make sure that the entrepreneur is complaint and willing to
accept this involvement.
 They also demand a high rate of returns and will therefore focus on the market
and financial projections
 In preparing a business plan it is important for the entrepreneurs to consider the
needs of external sources and not merely provide their own perspective.

Presenting the Business Plan

 It is often necessary for an entrepreneur to orally present the business plan before
and audience of potential investors - in this case the entrepreneur is expected to
provide a short presentation of the business plan.
 The entrepreneurs are expected to sell their business concept in this short period
try and persuade potential investors that his is a good investment
 The focus of such presentation is why this is a good opportunity - an overview of
the marketing program.
 Concluding remarks might reflect the recognized risks and how the entrepreneur
plans to address them.
 Unlike oral presentation -written presentation requires the entrepreneur to consult
where necessary the services of lawyers accountants, marketing consults and
engineers in preparation of the business plan.
 The plan must give a detailed account of the needs of the expected readers.

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 Information Needs
 Before committing time and energy to preparing a business plan, the entrepreneur
should do quick feasibility study of the business concept to see whether there are
possible barriers to success.
 The information obtainable from the many sources should focus on
a. marketing
b. goals and objectives
c. finance
d. production

Goals and Objectives

 Before beginning the feasibility study the entrepreneur should clearly define the
goals and objectives and also provide frame work for the business plan, marketing
plan and financial plan.
 Goals and objects that are too general or that are not feasible make the business
plan difficult to control and implement.

Market Information Needs

 One of the initial and important elements of information needed by the
entrepreneur is the market potential for the product or service
 In order to ascertain the size of the market it is important for the entrepreneur to
define the market e.g. the consumer group men, women, youths e.tc.
 The consumers income - high or low- are they rural or urban deadlier.
 The education level is another important aspect of consideration
 A well-defined target market will make it easier to project the market size and
subsequent market goals.
Writing of a Business Plan
 The time of writing a business plan depends on the experience and knowledge of
the writer (entrepreneur) as well as the purpose it intends to serve.
 It should be comprehensive enough to give any potential investor a complete
picture and understanding of the new venture
 The following is a simple outline of a business plan.

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Outline of a Business Plan
(i) Introducing page;
 Name and address of the business
 Names and addresses of the principal owners
 The nature of the business
 Statement of financing needs
 Statement of confidentiality of the report
(ii) Executive summary
(i) description of the venture(business )
 the product/ services offered
 the size of the business
 the background of the entrepreneurs
(ii) the production plan
a) the manufacturing process
b) the physical plant and machinery
c) the suppliers

(iii) the marketing plan

a) the pricing
b) the distribution
c) the promoters
(iv) competitors analysis
(v) Management plan
(vi) Financial plan
(vii) Appendices

Activity:
Write a business plan for a business in your area of study.
Reading list:
Business Plan Through Investors' Eyes (2017) Create space Independent Publishing
Platform
https://www.sba.gov/business-guide/plan-your-business/write-your-business-plan
https://www.investopedia.com/terms/b/business-plan.asp

69
 LECTURE TEN: CAT 2 (ALL THE BEST IN YOUR CAT)

LECTURE ELEVEN: EMERGING TRENDS AND ISSUES IN

ENTREPRENEURSHIP

By the end of the course the learner should be able to identify and explain current
issues in entrepreneurship. At the end of this lecture the learner should be able to:
i. Explain the concept of business ethics process.
ii. Define Social responsibility
iii. Explain the role of business responsibility in entrepreneurship
iv. Discuss environmental issues in business
v. Explain the concept of business outsourcing
vi. Explain the impact of HIV/AIDS on entrepreneurship

Business Ethics
1. Ethics: this is a set of moral principles that govern the action of an individual or group
2. The principal should play a significant role in guiding the conduct of manager's
entrepreneurs and employees in the operation of the business.
3. Business ethics is concerned the right and wrong in the practice of entrepreneurs
(business)
4. It addresses both the body of principals governing business practice with emphasis on
the product the consumers and the entrepreneur's moral concepts.

Sources of Moral Principles

i. Doctrines: primarily religion & politics that have there over years since the beginning
of the history e.g.
• the mosaic ten commandments
• Athenian principle of democracy
• The British concept of individual justice
• The bill of rights of UK.

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 ii. Value and norms
 Values and norms of a given society are related to religious tendencies, customs and
traditions that vary from society to society.
iii. Codes and standards
 Codes and standards formulated by a particular professional groups and business
organizations.
 The entrepreneur needs to be critical in all his dealings i.e. conduct and his
dealings with others should be within acceptable business limits as established
by business principals, manners and values.

Important Aspects of Business Ethics

1. Competition
 Competition is regarded as healthy and fair when carried on within acceptable
business limits as established by business principals, manners and values.

Unfair competitive aspects

i. Reduction of prices of goods and services to very low levels with the object of putting
competitors out of business.
ii. Explaining the ignorance or the consumers as on quality and quantity.
iii. Grouping together with a view of lowering the prices in order to push other out of
business.
iv. Bribing - in order to get business contracts prevents fair competition.
v. Gaining control over the supply of any commodity in order to create an artificial
scarcity.
2. Pricing
 An entrepreneur it is necessary to give fair prices of goods and services
 Over pricing is likely to put customers away while underpricing might not be good for
competitors.
3. Customer/Supply relations
• Ethical business owners treat customers and suppliers with fairness and consideration.
• Honestly and courtesy is required in dealing with customers e.g.
Preferential treatment.
4. Goods & service
 The products and services offered by customers must meet the quality and quantity

71
requirements
5. Employee treatment
 Employees should be treated ethnically e.g
• Working for reasonable number of hours
• Pleasant working conditions
• Listen to their complaints and give satisfactory answers
• No discrimination
6. Product promotions
 The entrepreneurs should make sure that all promotional activities are ethnically
presented i.e
• No mis- representation
• Packaging of the right produces

Aspects of Management Ethics

1. Organization ethics e.g., code of ethics
 Organization ethics refer to the moral principals or policies set by the organization
with guide behavior in the organization with guide behavior in the organization which
guide behavior in the organization referred to as code of ethics
 The code of ethics should guide the behavior of all persons in an organization referred
to as the code of ethics.
 The code of ethics should guide the behavior of all persons in an organization and it's
effectiveness include
i. starting the code
ii. Appointing ethics committee.
iii. Holding regular updates on the codes
 The entrepreneur should maintain good codes of conduct in order to enable him deal
with.
i. legal issues
ii. government regulations
iii. social pressures

2. Individual ethics
 Involve personal attributes such as honesty avoiding criminal Acts, willingness to
perform etc.

72
  The individual ethics in influenced by determined by religious political and family
backgrounds.
 Together with the standards of organization one is working in.

3. Social ethics
 Involve ethical issues which relate to;
1. Environmental awareness
2. Public relations
3. Fair competitions
4. Government obligations
 Involves ethical practices to statutory laws and regulation such as
i. Payment of taxes
ii. Making annual returns e.g., NHIF, NSSF
iv. Insurance etc.
Social Responsibility
 Refers to the roles undertaken by business organization on me surrounding
environment.
 It is the liability the organization undertakes to be called upon to account for
the conduct that affects communities or the society at large
 Organizations are constraint in their conduct by legislation wiser
affects their relationship with stake-holders, employee's suppliers, customers
the society at large and the environment.

The Stakeholders
 Therefore, business organizations have social responsibility to a number of
groups(stakeholders) who include the society, and government.
 The idea behind the stakeholder's concept is that there are certain group which have
specific interest in a business. The interests mar diner mm one
group to another and can be classified into three main groups,

a) Internal stakeholders (employees)

 This evolves on the objectives of employees and management who are bound to have
an influence on how the organization is run- they are likely to be interested in.
i. continuity of employment

73
ii. the growth of the organization in order to share its prosperity
iii. personal esteem arising with this success
v. Individual interests and goals,

b) Connected stakeholders
 Shareholders are not part of the organization itself, except in the case of managers and
staff who hold equity in the company. They will have distinctive interests in the business,
such as
i. A return on their investment in the form of dividends and an increase in the capital
ii. Concerns that the business performs within the law and reasonable ethical parameters
iii. Participation in decision-taking through exercising rights to attend the annual General
meeting and vote.
 The organization's bankers will have specific concerns relating to the financial
performance of the company, so that any short and long-term financing will be repaid with
the minimum of risk. If the bank provides finance for a company, it will also wish to ensure
that is kept informed of the company's financial condition.
 The customers of the enterprise require a good quality goods and services at the right
price. They also want to have access to products through convenient, low-cost distribution
channels. In addition, businesses are seeing increasing evidence of consumerism - customers
being more demanding of enterprise not only in what they manufacturer using child labor in
Asian countries is evidence of this- not only did it impact on the manufacture, but it had a
major effect on perceptions of large football league teams buying the merchandise.
i. Ongoing and mutually beneficial business relationships
ii. Being paid in time.

b) External stakeholders
 External stakeholders are those generally unconnected with the business but who
nevertheless have an interest in its activities. This category includes virtually everyone else.

The government seeks compliance with legal requirements as well as;

 Ongoing creation of employment and wealth.
 Revenues in the form of income tax, capital gains tax, corporation tax, national
insurance contributions, value added tax and excise duties.
 Information, such as statutory company return and export/ import information for the

74
department on Trade and Industry.

Local authorities
 Have a specific concern with the economic activity that can be brought to their
catchments area. They will also be interested in revenues though local taxation.
A wider concern is the impact of the business on the local environment.
 The competitors of the business with to ensure that there is fair competition
and that all businesses operating in a sector are behaving ethically and in a
climate of mutual respect.

Importance of Enterprise social Responsibility

1. Enhance business relations with the society. Just as a society depends on business
organization for goods and services, so business depends on society.
o When business participate in social responsibility. It creates acceptance by the society
as a whole and as such; it will create a good working condition that will enable them to work
for the benefits of their organization.
2. Recognition of the society's good will. By engaging in social responsibility, the
business organization is appreciating is appreciating the fact that it is the society as a whole
that has enabled their continual existence.
3. Supplement governments effort in development organization also have a relationship
with the government at the local, state and federal levels. By participating in socially
responsible activities that relates to national development such as buildings of schools or
providing training activities to members of a society, the business organization are helping in
the government’s efforts in development.
4. Means of waste management- business organization also acts as means of waste
management because they ensure that they participate in a clean environment,
5. They ensure that they keep the environment safe for all in the society hence they act
as a means of waste management. They also help in waste management by recycling waste
products.

Social Concerns of an Entrepreneur

Protection of the environment-
The environment has over the years become increasingly common within the business
organization agenda, promoted by a consumer interest in the environment impact of business

75
actions.

 Business enterprises considers now they impact the environment ( how their activities
influence the environment) and how the government influences their activities.
 Most business enterprises participate in activities that ensure the following
 That the environment is polluted as little as possible
 That they adopt preventive measures (gives due consideration to the
environment in the early stages of the activity)
 That law materials are used economically.

Participation in community work: -

 The immediate areas play a very importance part in the creation of an organization, its
reputation, and its continued operation. The business enterprise is concerned with active
participation in community development programs like welfare programs for the aged,
supporting of activities by providing educational, recreational, cultural, health, transportation,
welfare and housing facilities and welfare and welfare programmer for the handicapped and
undernourished in the community.

Gender issues
 Business organization also strive to participate in gender-based issues which is a
historical problem. They do this by ensuring that they employ both men and women in their
organization and that the promotions at work are based on merits not on the fact that one is a
woman or a man. Since women in activities that will ensure that they ensure that they are
empowered i.e. creating training programmed for women and providing funds to the women
to start small businesses. They also participate in programs of gender-based violence and
female genital mutilation by funding such programmed.

Provision of quality goods and services.

 The business enterprises are also concerned with the quality of goods and services
that they provide to the market. They ensure the goods and services are safe and are of the
correct standard and not defective. They do this by conducting ample research before
introducing the product into the market. They also ensure that any complaints by the
consumers are attendant to and remedies made. Most business enterprise also educate

76
consumers on their products and they also avoid misleading adverts.

Ethical Business Practices

 Ethics is a major factor in the social responsibility of business. Ethical philosophy if a
branch of philosophy that is concerned with the judgments of the Tightness or wrongness of
an act. The aim of professional or business ethics in the protection of professionalism, human
rights, integrity of character, and good service. In general, the issues considered in such code
of ethics consists of;
a) Honest - in this respect, it is necessary that facts are presented fairly and accurately.
Claims made about products or services, even in the
b) Fairness - every one whom you deal with should be given appropriate
consideration. This includes workers, customers, suppliers and others with
whom the organization interacts.
a) Loyalty- this is in terms of loyalty to other stakeholders i.e customers,
b) Workers,, suppliers' e.g.
c) Confidentially - this is especially important for service industries such as
banks. It is important that transactions with customers are respected and
protected so that they are not disclosed to third parties.
d) Trust- there should be a mutual trust where the owners of a business should have proper
trust in their customers, while the customers should also have trust in the organization.
Without trust, no meaning and lasting relationship can develop.
e) Courage- this refers to the need to treat others with respect, be incorruptible in
business operations, even when it means losing the business

Globalization Trends
 Globalization is an international phenomenon which sweeping across all continents
and every sector of business. The political barriers to business are being eliminated.
 The electronic media and communication have reduced the distances putting the
customer at the center of business.
 Business is going global due to the reasons of globalization and development of state
of art technologies, infrastructural facilities and reducing time and every for transaction.
 Entrepreneurs are taking up new ventures in their quest for global size organization,
profit and large markets beyond the national boundaries of the entrepreneur. With the result,
entrepreneur is also going global size organizations; result entrepreneurship is also going

77
global thus making manufacturing, marketing and management that are represented by
different nationalities. The situation calls for different strategies in countries not as diverse as
South Asia countries, USA, Kazakhstan, Uzbek or Kenya.
 The globalization process started worldwide in 80s, the entrepreneurs are moving to
different countries and starting new ventures, Many organizations are founded, organized and
operated one the principle that the globe is their field of operations. Modern communication
and transport systems are helping to go global; initially small business ventures were based
on local domestic markets. International business was consideration domain of large
organizations. This perception is fast changing. Trade has been conducted on international
scale for many years. Establishment of manufacturing organizations, and development of
business by licensing, arrangements management contracts, joint ventures, mergers,
acquisitions, subsidiaries and strategic partnerships
 The availability of cheaper inputs for the production such as raw materials,
infrastructure, trained labor force are taking entrepreneurs to different counties to give global
competitive advantage to their proposed ventures. Large markets
 Going global can generate greater revenue and greater operating margins. With large
funds, it is possible to purchase sophisticated equipment’s, update designs and adopt global
manufacturing qualities. An international entrepreneur would like to go to the countries
where there are economic developments and where the scale of economies can be attained.

Factors Restraining Entrepreneurs from going Global

1. Government controls and barriers
 To protect the local industries, existing industries and employment, even' country tries
to protect them. This is done by two ways.
 One, by fiscal regulatory measures like, high taxation, inspection, monitoring
controls, quantitative restrictions and foreign exchange controls. Second through non-
monitoring barriers like introduction of controllers and inspectors, large documentation, legal
insecurity, social and cultural barriers and treatment of outsiders in a different way as
compared to insiders.

2. Entrepreneurial culture
 An entrepreneur should be open to consider dispassionately the business opportunities
that are coming in other countries. The entrepreneur should have wide vision to expand
geographically.

78
Advantages of an entrepreneur going global.
 Large markets beyond home country borders
 Greater motivation in new opportunities
 Improvements in the technologies, quality and operations
 Extending life of product cycle

Social Cultural Trends

 The social cultural environment of a business consists of class structure, social
mobility nature of social organization, social institutions, customers and taboos. People's
basic beliefs, values and norms are largely shaped by their society.
 The social setting consists of among other things, people and their characteristics,
their real or apparent roles and their interpersonal relationships, culture has been defined as "
that complex whole which includes knowledge beliefs, art, law, morals, customs and any
other capabilities and habits acquired by people as cannot society. Thus culture consists of
common habits like people behaviors in their daily lives, and common interest in
entrainment, sports, news advertising etc.
 Culture serves the needs of people within a society. For instance, culture provides
standards and rules regarding when to eat and what is appropriate to, etc
 People's behaviors, particularly their consumption patterns and life styles are
influenced to great extent by the social classes to which they belong. The most commonly
used measures of social status are income, education, occupation and area of residence.
Entrepreneurs should consider their consumers social status before introducing a product the
Kenyan slum area of Kibera.
 Another dimension to social and cultural life is the manner in which social
relationships manifest themselves in business, operations, and operations. Obligations to
immediate and extended family members, kinsmen, friends and quittances are carried over to
reach of considerations in most business dealings such as those involving recruitment of
personnel and credit sales
 The social -cultural dimensions has been identified as one of the factors contributing
to the failure in most African countries.

Economic Trends
 Some of the economic factors which promotes and hinders entrepreneurship includes.

79
1. Capital: capital is the most important perquisite to establish an entrepreneur
one, machine of another to create his business enterprise.
The stage of economic development in a country plays and important role while considering
establishment of new venture. To some capital refers to funds available for investment; to
others it refers to equipment and machinery used by entrepreneurs and managers to produce
goods and services; and others still, it refers to postponed consumption. All these refer to the
term capital.
2. land- according to economies the term land refers to all farm land and all natural resources
provided by nature. Therefore, agricultural land, forests, rivers lakes, seas and all natural
resources are according to economists, land, forests, rivers, lakes, seas and all natural
resources area according to economies to economists’ land. It should be realized that the
amount of land is finite and can, therefore, not be appreciably increased. Land as a factor of
economic production explains the existence of a variety of business including furniture
business and food business.
3.Labour - this refers to all the physical and mental effort exerted in the production of goods
and services. Unlike land, labor can be substantially expanded by increasing both its quantity
and or improving its quality. Quantity of labor can be increased by higher birthrates and or/
improving its quality its quality. Quantity of labor can be increased by higher birthrates and /
or from inflow of people from other countries. The quantity on other had can be improved
through better health of laborer’s, better education and vocational training of people or
combining labor with more and better quantities of the other factors of production.
4. Entrepreneurship- the process of combining land, labor and capital in some one way in
order to produce pertinent goods and services is called entrepreneurship
One factor that bothers many potential business owners is how to determine in advance
whether one has the qualities of a successful entrepreneur. Although it is difficult to predict to
predict whether a particular individual will succeed or not if he ventures into business.

Consumer Trends
 A consumer is the end user of a product offered by an organization. Understanding
consumer behavior is of paramount importance because and entrepreneur first have to
identify consumer needs and then develop a product that will satisfy those needs if the firm to
succeed in the long -term. There are certain factors that influence consumer behavior that the
present and future entrepreneurs have to consider. These factors are divided into;
Internal influences

80
External influences

Internal influences
 Needs and motives- a need is simply a deprivation of something of value. When a
need is sufficiently aroused it becomes a motive. That is, a motive is an inner state that
directs and individual towards the goals of satisfying a felt need.
 Perception- perception refers to the way an individual vies the world around him. An
individual's perception of an object will determine how he or she will react towards that
object or event. Entrepreneurs acquire the purchase and consumption experience they apply
to the future related behavior.
 Attributes - an attitude is a leaned tendency to respond to product, brand of
company in a way that is consistently favorable or unfavorable. The more
favorable a consumer's attitude towards a product, the higher the usage rate and vice-versa
 Personality- personality refers to rather enduring traits or factors that affect the
manner in which an individual deals with his immediate environment. Entrepreneurs are
interested in personality because they believe it affects consumer behaviors
External factors
i) Culture- culture is a learned behavior and results of behavior whose component elements
are shared and transmitted by members of a particular society. The entrepreneurs who hope to
avoid costly mistakes should familiarize. Themselves with the culture and sub-cultures of
people they plan to market their products to.
i) social class- a social class is defined as an open aggregate of people with similar social
ranking. Class differences are important to entrepreneurs because certain product is more
likely to appeal to one class that
another.
ii) Family- the family has an important influence on the consumption behavior of an
individual. Quite often each consumption family member has specific roles in the buying
process,
iv) Purchasing power- this is people's ability to buy goods and services according to
economists whether people buy a product or not largely depends on their incomes.
Price of the present product and prices of substitute products and complimentary
goods among others.

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Challenges Posed by Emerging Trends
 There is a challenge in changing the type of business activity to engage in.
 It is also difficult to attract additional capital especially for those who want to
venture in small businesses due to the preference accorded to large enterprise owners by the
loaning institutions
 Entrepreneurs also have the challenge of sustaining and maintaining their
businesses
 Human resource is the one who can make best use of other resource to convert raw
materials into finished products. If no proper resource to convert raw materials into finished
products. If not properly managed, the enterprise may not be able to realize its objectives
 Marketing is also a challenge because if no proper marketing strategy is not
formulated, then the business enterprise may collapse. Marketing is the lifeline of any firm.
 Developing and entrepreneur culture is also very difficult due to difficult of many
cultural activities that inhibit entrepreneurship.

Activity:
Discuss solutions to the challenges posed by emerging trends in entrepreneurship
Describe the importance of enterprise social responsibility.

Reading list:
Global Entrepreneurship Monitor (GEM): Offers a comprehensive assessment of the entrepreneurial
activity, attitudes, and aspirations of individuals around the world. Website:
https://www.gemconsortium.org/
Stanford Technology Ventures Program (STVP): Provides a collection of articles, case studies, and
videos on entrepreneurship and innovation. Website: https://stvp.stanford.edu/
https://www.liveplan.com/blog/entrepreneurship-trends-to-watch/

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 LECTURE TWELVE: INFORMATION COMMUNICATION TECHNOLOGY IN A
BUSINESS

Lecture objective: describe the importance

of ICT in a business

Technology issues
E-Commerce
 Communication - is the art of sending and receiving messages or information from
one person to another via a channel
 Information- this is a product of data which has been given a structure and put into a
context. In order for people to design and make what is needed to solve a problem, they first
need information.
 Technology - this is the generation of knowledge and process to develop systems that
solve problems and extend human capabilities. Other words, people create technology to
solve problems and to make it possible to do new things. E.g people needed a way to keep
cold during how weather so, they invested the refrigerators
 Communication technology is the knowledge, tools, machines and skills that to into
communicating. In other words communication technology is all the things people make and
do to send and receive messages. Telephones, radios, television and computers are all
examples of technologies that help us communicate with one another. In addition to
communicating with other people, communication technology can be used to communicate
with machines and to help machines communicate with each other. Information is the
knowledge and skill needed in order to take a particular action.

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Benefits of ICT to a Business Enterprise
 We make use of information to such a great extent in our daily lives that we probably
do not realize how much we are relying on it. Although information is itself invisible and
intangible, the information may have to use repeatedly will have been recorded in a paper or
prepare for display on a computer screen; though we can also find whether forecast on radio,
convenient at times
 Turning to the world of business, we can see that obtaining and using information
effectively is vital. Business makes decisions, at all levels, more or less continuously; and the
quality of those decisions depends almost entirely on the quality of the information on which
they are based. Businesses complete with one another and thrive or wither according to how
sound their decisions have been.
 Business thus needs accessible information that is accurate, up-to- date and sufficient.
ICT (Information and Communication Technology) refers to the developed knowledge, skills
and ideas that pertain to human communication process and the information they handle.
 It is the new science of collecting, storing, processing and transmitting of information.
Although ICT is important in all organizations, there is a difference in how important it is. In
some organization it is part of the infrastructure; in some the delivery of goods and services
depends on it; in some, it is a major areas for strategic

a) improved accuracy, internally and externally

b) services to customers that are more comprehensive than before
c) faster processing, leading to prompter responses to customers
d) Information for management, not previously available, or available too late to be
useful; and tighter financial control.
e) New customer services previously not possible
f) New sources of information to allow improved product design and marketing
g) New customer services previously not possible
h) New sources of information to allow improved product design and marketing
i) Reduced costs arising from the greater productivity of staff who supported and
assisted by appropriate computer services
j) A more attractive, cleaner working environment in some cases, helping recruitment
and retention of staff.

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Uses of e- business, E, government, e, procurement in small enterprises
E- Business
 Business is the use of the internet and other networks and information technology to
support electronic commerce, enterprise communication and collaboration business can also
be defined as web-enabled business process both within an internet worked enterprise and
with its customers and business partners.

Benefits of E-Business
i. consumers have a much wider choice available on the cyber market
ii. consumers can compare products, features, prices and even look up reviews before
they select what they want
iii. Consumers also have the convenience of having their orders delivered right to the
door step.
iv. Consumers are driven to e-shopping in holders as even branded goods c less on the
net.
v. It minimizes inventory costs to the organization. They do this by adopting just in
time- system enhancing the firm's ability to forecast demand more accurately.
vi. It improves customer services
vii. It reduces distribution costs
viii. It helps business globalize. This is done through the interest by making information
about certain products available on the net.
ix. It helps market products move quickly.
 Because of the significance of small enterprise worldwide, it is increasingly being
realized that if small sector gets behind in the information, then the whole
 The information revolution has opened up a great deal of potential for small enterprise
in the marketing field. The excellent opportunities E- business offers to 1 small enterprises
are to;
 Access new market
 Improve customization
 Lower various kinds of costs
 Reduce the size of the enterprise
 Sell products/ goods into global market
 The fact remains that E- business has empowered small enterprise like nothing else ad

85
done so in the past. E- Business has emerged as an opportunity for small enterprises. Not
making use of a will turn into a threat to their very survival

E-Government
 E- Government is a new term that finds wide applicability. While the term still, means
different things to different people, available evidence suggests that it had been undergoing
progressive conceptual development. So for the three generations their conceptual
developments that have been identified are discussed below.
o First Generation Conceptualization
 In this conceptual generation, e-government is conceived as the government
equivalent of e-commerce, and used to mean the application of advanced ICT to deliver
government services. This conceptualization emerged from the relative success of " e-
commerce" applications resulting in pressure being placed on government organization were
doing. As a public sector equivalent of e-commerce, e-government is viewed primarily as a
tool for electronic delivery of public services. The government transfers a range of services
into electronic formats so as to make them more conveniently accessible over the internet.
 Proponents of this conceptual view include Douglas Holmes (2001), Negaham cook
(2000) and John (Arrow 2001). According to Holmes "electronic government or e-
government, is the use of information technology, in particular the internet to deliver public
services in as much more convenient, customer -oriented, cost-effective and altogether
different and better way. He further points out that cutting costs, and improving government
efficiency, meeting and improving citizens expectations and relationships and facilitating
economic development are some of the important considerations driving e-government.

Features of E-Government
a) It is smart government in the sense that it selectively used of variety if ICT in ways
and areas to add value.
b) It is customer- driver in that, customer needs and conveniences drive its organizing
structures and business processes.
c) It is responsive, transparent and accountable, responds to the NEEDS of its customers,
and employs ICT to support continuous engagement with customers.
d) customers.
e) It is available on a 24* 7 basis ( 24 hours a day and seven days a week) thus does not

86
kept its customers waiting for office hours and working days.
f) It is accessible from anywhere since it is ICT - enabled.

What E- Government is not

 E- Government is not simply about technology; it is about the applicants of
technology specifically ICT, in government.
E- government is not so much what the government does but it is about how it accomplishes
its tasks
 E- government is not about building a smaller or leaner government, Smart in the
sense that it is simple, moral, accountable, responsive and transparent and also in the sense
that its decisions and actions are goal-oriented, outcome -driven and performance-based.

E-Procurement
 E-procurement has been defined by the CIPS as;
 The combined use of information and communication technology through electronic
means to enhance external and internal purchasing and supply management process
alternating a shooter definition is;
 E-procurement is the business -to - business purchase and sale of suppliers and
services over the internet.
 The key enabler of e-procurement is the ability for systems to communicate across
organization boundaries. While technology for e-procurement provides the basic means, the
main benefits derive from the resultant change in business procedures, process and
perspectives. E-procurement is made possible by the open standards of XML (extensive
mark-up language), a structured language that allows easy identification of data types in
multiple formats and can be understood across all standard internet technologies. Adoption of
XML will help organizations to integrate policies seamlessly and exchange information with
trading partners.

Implementation issues of e-procurement

 The CLPs has provided the following list of issues to be overcome when
implementing e-procurement, organization are not simply passing costs or process
inefficiency onto another part of the organization or onto suppliers

87
 Competition issues i.e. in exchanges using collaborative purchasing.
 Possible negative perceptions from supplier's e.g. their margins reduced further from
e-auctions.
 Website and information control lost to exchange administrators.
 Negotiated procurement benefits may be shared with other exchange users which may
be competitors
 Creation of catalogues can be long process and costly to suppliers.
 Education - the concerned people in the organization should be educated by the
entrepreneur in new technologies that have been selected for the project.
 Product quality requirements - the technology selected should consistently give a
'uniform product quickly that is demanded by the customer segment.
 Technology that gives overall cost and market acceptance; - the selection of
technology should aim at giving products and services of consistent quality that market is
looking for. The technology is selected based on long range requirements of the organization
and that gives consistent product differentiation in the marketplace
 In order to build a strong marketing plan with reasonable and measurable market
goals and objectives the entrepreneur will need to gather information on the industry
and market.
 Most entrepreneurs have difficulty with this stage and do not of tern known where
to begin. The best way to start is to first visualize the following process of
gathering market information.

Suggested activity: Discuss the importance of ICT in business.

Reading list:
https://www.bau.edu.lb/Research/Information-and-Communication-
Technology-in-Business Source Beirut Arab University
https://www.bizmanualz.com/leverage-technology/using-ict-improves-
business-processes.html
Deakins, D., & Freel, M. (2019). Entrepreneurship and small firms (8th
ed.). McGraw-Hill Education

ALL THE BEST IN YOUR FINAL EXAM. FIND THE ATTACHED PAST PAPERS FOR
YOUR REVISION

88
UNIVERSITY EXAMINATIONS FOR THE AWARD OF CERTIFICATE IN
GENERAL AGRICULTURE
2021/2022 ACADEMIC YEAR
JANUARY SEMESTER 2022

UNIT TITLE: ENTREPRENEURSHIP

DATE: APRIL, 2021 TIME: 2 HOURS

INSTRUCTIONS
1. Answer question one and any other two questions
2. Do not write anything on this question paper
3. Do not write in the page margins of the answer booklet
4. Begin each question answer on a new page
QUESTION ONE (30MARKS COMPULSORY)
i. Define the following terms:
a) Self-employment.
(1mark)

b) Entrepreneurship.
(1mark)

89
 c) Innovate.
(1mark)

d) Entrepreneurial culture.
(1mark)

e) Fabian entrepreneurs.
(1mark)

ii) Highlight five merits of a company as a form of business. (5marks)

iii) Entrepreneurs are mostly mistaken for managers. Expound on five points that give a clear
distinction between an entrepreneur and a manager. (5marks)

iv) Outline five types entrepreneurs you are conversant with.

(5marks)

v) In developed nations entrepreneurship is founded on deep social convictions based on

strong values from the locals that promote entrepreneurial activity leading to growth.
Describe five importance of entrepreneurial culture.
(5marks)

v) Discuss to your best friend five characteristics of entrepreneurs, as she considers venturing
into business. (5marks)

QUESTION TWO (20MARKS)

a) Information Communication and Technology (ICT) has proven to be of advantage to

the development of the entrepreneurial sector in the 21 st century. Discuss.
(10marks)
b) Discuss five functions of an entrepreneur.
(5marks)
c) Outline five advantages of sole proprietorship.
(5marks)

QUESTION THREE (20MARKS)

90
 a) The first step in identifying a business opportunity is identifying a need. Illustrate and
explain the human needs as described by Abraham Maslow.
(10marks)
b) Enumerate five qualities of a good business idea.
(5marks)
c) Discuss four importance of business screening.
(4marks)
d) What is economic growth?
(1mark)

QUESTION FOUR (20MARKS)

a) The COVID 19 pandemic has greatly affected entrepreneurs both directly and
indirectly. Identify and expound on five ways that the pandemic has affected
entrepreneurs. (10marks)
b) Examine five cultural factors that hinder entrepreneurial growth.
(5marks)
c) Discuss five ways in which the problems above can be solved.
(5marks)

QUESTION FIVE (20MARKS)

a) What contribution can you give to Kenya as an entrepreneur?

(10marks)
b) Discuss five habits that promote entrepreneurial growth.
(5marks)
c) Entrepreneurial mindset is defined as a growth – oriented perspective through which
individuals promote flexibility, creativity, continuous innovation and renewal.
Discuss five qualities of the entrepreneurial mindset.
(5marks)

91
ANOTHER QUESTION PAPER FOR YOUR REVISION

UNIVERSITY EXAMINATIONS FOR THE AWARD OF CERTIFICATE IN

GENERAL AGRICULTURE
2020/2021 ACADEMIC YEAR
SEPTEMBER SEMESTER 2021

UNIT TITLE: ENTREPRENEURSHIP

DATE: DECEMBER 2021 TIME: 2 HOURS

INSTRUCTIONS
5. Answer question one and any other two questions
6. Do not write anything on this question paper
7. Do not write in the page margins of the answer booklet
8. Begin each question answer on a new page

QUESTION ONE (30MARKS COMPULSORY)

i) Define the following terms:

a) Intrapreneurship. (1mark)
b) Risk bearer. (1mark)
c) Affiliation needs.
(1mark)
d) Business plan.
(1mark)
e) Investor.
(1mark)

ii) Enumerate two categories of entrepreneurs according to ownership.

(2marks)
92
iii) Kaka is a successful fruit farmer and supplies his mangoes both locally and
internationally. Discuss five qualities that Kaka has that place him a successful entrepreneur.
(5marks)

iv) As a student taking entrepreneurship discuss five tools necessary for one to succeed in
business. (5marks)

v) Outline five qualities of a good business idea.

(5marks)

vi) As a student taking a Diploma in General Agriculture the nation is highly dependent on
you to be the next entrepreneurs in the agricultural sector. Describe five entrepreneurial
activities that you have discovered in your course of study.
(5marks)

v) Highlight three qualities of a business opportunity.

(3marks)

QUESTION TWO (20MARKS)

a) What is the difference between an entrepreneur and a manager?

(5marks)
b) Entrepreneurship is a treasure to any nation as it promotes economic development and
involves more than just increasing per capita output and income. Discuss five
economic factors that hinder entrepreneurial growth in your country.
(10marks)
c) Outline five merits of a partnership compared to sole proprietorship.
(5marks)

QUESTION THREE (20MARKS)

a) Examine five cultural habits that promote entrepreneurial development.

(10marks)
b) Your brother would like to start a business, describe to him the steps involved before
one starts his business from the background knowledge you have on entrepreneurship.
(5marks)

93
 c) You have two business ideas; one, to start a poultry farm and another to produce
tomato jam. Carry out a personal evaluation using the SWOT analysis of the two
ideas as you decide on which is best.
(5marks)

QUESTION FOUR (20MARKS)

a) Cecil is a great entrepreneurial coach and has recently been invited to give a talk to
youths in Kazi village. She plans on starting with the entrepreneurial process. You
have been tasked to prepare notes that she shall use as her assistant. Illustrate and
explain this process.
(10marks)
b) Enumerate five importance of the entrepreneurial culture.
(5marks)
c) Discuss five functions of an entrepreneur.
(5marks)

QUESTION FIVE (20MARKS)

a) Discuss five roles of Information Communication and Technology in

Entrepreneurship
(5marks)
b) As an entrepreneur you are an asset to Kenya. Discuss five contributions of
entrepreneurs to the economy.
(5marks)
c) Expound on five roles of the Kenyan government in entrepreneurship.
(10marks)

94