Past Year Question Year June 2013

Question 1
a) Explain what entrepreneurial thinking represents
Entrepreneurial thinking represents individuals' mental processes of overcoming ignorance
to decide whether a signal represents an opportunity for someone and /or reducing doubt as to
whether an opportunity for someone is also an opportunity for them specifically and processing
feedback from action steeps taken.
b) The concepts of thinking structurally,bricolage,effectuation and cognitive adaptability are some
of the approaches entrepreneurs can engage in to create or pursue opportunities . Briefly explian any
three concepts.
1) Thinking Structurally is thinking that requires creative mnetal leaps from one's existing
knowledge that will lead to introduction of products/service to the market example is using
knowledge of existing market to come out with new technology and introduce new
product/service .Making these connections between a new product and a target market where it can
be introduced is aided by superficial and structural similarities. Superficial similarities is a basic
elements of the technology resemble the basic elements of the market and Structural similarities is
underlying mechanism of the technology resemble the underlying mechanism market.
2)
Effectuation is leaders trained to think rationally but entrepreneurs sometimes use alternate
ways of thinking like causal process where the entrepreneurs think start with a desired outcome and
focuses on the means to generate the outcome but In Effectuation process entrepreneurs thinking
with starts what one has and select among possible outcomes.
3) Bricolage where entrepreneurs lack resources thus they seek the resources from others by
using bricolage. The entrepreneurs applying combinations of the resources at hand to new
problems and opportunities and taking the existing resources and re framing them so they can be
used in new ways.
Question 2
a) Define entrepreneurial intention and state two key factors that influence how strong the
entrepreneurial intention will be.
Entrepreneurial action is most intentional and they intend to pursue certain opportunities , enter
new markets and offer new products and entrepreneurial thinking is the motivational factors that
influence individuals to pursue entrepreneurial outcome. The two key factors that influence the
intention are
1) Self efficacy refers to the conviction that one can successfully execute the behaviour
required and the people who believe they have the capacity to perform (high self-efficacy) tend
perform well
2) Perceived desirability refers to an individual's attitude toward entrepreneurial action where the
degree to which he or she has a favourable or unfavourable evaluation of the potential
entrepreneurial outcomes

b) Entrepreneurial actions can be fail and as a result need to be terminated. Explain how the failure
itself can present an opportunity for enterprising individual.

Question 3
a) List three factors that affect an entrepreneur's decision to exploit a new entry opportunity
1) Cost Advantages
2) Less competition
3) Secure Importance channels
b) Being the first mover in exploiting a new entry opportunity, it has many advantages but it also
has its share of disadvantages. List and briefly explain three factors that contribute to the first mover
disadvantages.
1) Environmental instability -Firm performance depends upon the fit between external
environment and resources and they an unaware of the key success factors including the
demand and technological uncertainty
2) Customer uncertainty- It difficulty in accurately assessing whether the new product or
service provides value for the customer and the cost of the product or service must be
borne by the customer if the owner of the firm venture to the new supplier to reduce the
burden of new cost that will incurred.
3) Short lead time-grace period in which the first mover operates in the industry under
conditions of limited competition because of the less of the competition