114 ENTREPRENEURSHIP

Instructions
Answer Question one and any other two questions
QUESTION ONE
a)The entrepreneurial thought has developed over time. Provide brief contributions by any three (3)
scholars that you know of in the development of the entrepreneurship thought. Clearly indicate each
one's views on entrepreneurs and /or entrepreneurship.

(9 marks)

b) By making reference to relevant theories provide your understanding of the following: (i)
'entrepreneurs are born (ii) 'entrepreneurs are made' and illustrate your answer with examples.
(10 marks)
c) Jane, a fresh IT graduate from KEMU intends to start a business to repair computers. She has found
out that she needs an initial capital investment of KSh. 200,000 to fully set up the business. A survey
report from a reputable market research house shows that on average each computer is repaired at KSh.
3000 while the unit cost of repair for each computer is Sh1500. The capacity at Jane's shop can handle
50 computer repairs per month. Further, she intends to take a loan to finance the initial capital (KSh.
200,000) from a bank which only extends loans to small business (similar to Jane's) that convincingly
demonstrates a break even period of at most three (3) months.
Based on your understanding of entrepreneurship, specifically economic feasibility, you are required
to advise Jane fully.

(6 marks)

d)Discuss the traits associated with successful entrepreneurs and explain the role of training in
acquisition of these traits

(6 marks)

QUESTION TWO
a)Explainwhatismeantbythetermfeasibilityandpointoutthecriteriatobeusedwhen
determiningtheoverallfeasibilityofabusiness

(5marks)

b) Explain at least four intellectual property rights that you know

(5 marks)

c) What factors influence creativity and innovation in an organization

(5 marks)

d) Identify any two financial risks likely to be faced by the entrepreneur and explain the benefits
of analyzing them.
(5 marks)

QUESTION THREE
Sales of company ABC product are declining and the sales manager has been directed to
investigate and report to the chief executive. There are unconfirmed reports that not only have
the quality of the product deteriorated but also that the price is high. It is further suspected that
the marketing effort is wanting. The sales manager has requested you to advice on how to
investigate the problem and to report back.
a) Provide a statement for the research problem

(2marks)

b) State any three (3) possible specific objectives of the study

(4marks)

c) Suppose you recommend a survey and the use of a questionnaire as the research instrument.
Briefly outline three (3) aspects that would make your questionnaire a 'good questionnaire'
(3marks)
d) Provide

any

three

(3)

questions

that

would

be

included

in

the

questionnaire

(3marks)
e)

State and briefly explain the contents of the report to the Chief Executive (8 marks)

QUESTION FOUR
a) What do you understand by 'risk' and 'return' as applied to entrepreneurship?

(4marks)

b) You have been asked to advice a banker who is 57 yrs and has retired, and is currently servicing
four loans; two of his children are in school. He has received his benefits and if he pays the
loans he will remain with KSh 250, 000. He wishes to start a successful venture. Give all the
details of your discussions
(16 marks)
QUESTION FIVE
Critically discuss the various strategies embraced by the government of Kenya to enhance
Entrepreneurship Development.
(20 marks)