PART A : 3 MARKS

1. Define Corporate Entrepreneurship.

Behaviour orientation exihibited by established firms with an entrepreneurial emphasis that is proactive, innovative and risk taking.
Is the conceptualization of entrepreneurship at the firm level.
All firms fall along a conceptual continuum that ranges from highly conservative to highly entrepreneurial.
The position of a firm on this continuum is referred to as its entrepreneurial intensity.
Corporate Entrepreneurship is a process used to develop new businesses, products, services or processes inside of an existing organization to
create value and generate new revenue growth through entrepreneurial thought and action.
Corporate entrepreneurship sets the context for innovation and growth. It provides a systems view of the resources, processes and environment
that are needed to support, motivate and engage the organization in entrepreneurial thinking and action

2. What is Entrepreneurship?
entrepreneurship is defined as the process by which individuals pursue opportunites without regard to resources they currently control for the
purpose of exploiting future goods and services.
Entrepreneurship can be summed up as nothing but the process of creating
something new with a value, particularly responding to the opportunities available.
It involves time, efforts and assumption of risk, with the expectation of receiving the rewards at the end. The rewards can
take any form- monetary or non-monetary (personal contentment)

3. List four essential qualities of a “Business Opportunity”

A business opportunity has four essential qualities : it is
a) Attractive
b) Timely
c) Durable
d) Anchored in a product, service or business that creates or adds value for its buyers or end-user
4. Discuss briefly the concept “Brainstorming”
a common way to generate business ideas is through brainstorming.
Brainstorming is simply the process of generating several ideas about a specific topic.
The approaches could range from a person sitting down with a yellow legal pad and jotting down interesting business ideas to formal
‘brainstorming‘ sessions’ led by moderators that invite a group of people.

5. What is Feasibility Analysis?

feasibility analysis is the process of determining if a business idea is viable
A feasibility analysis is an assessment of a potential business rather than strictly a product or service idea
If a business idea falls short on one or more of the four components of feasibility analysis , it should be dropped or rethought

6. What are the characteristics of successful entrepreneurs?

four main charatcerisitcs of successful entrepreneurs are :
a) Passion for the business :
Which typically stems from the entrepreneur’s belief that the business will positively influence people’s lives
Passion is important for both profit and not-for-profit entrepreneurial organizations because although rewarding , the process of starting a firm
or building a social enterprise is demanding
b) product/customer focus:
A second defining characteristic of successful entrepreneurs is a product/customer focus
While management, marketing, finance are important , none of those functions would make a difference if a firm does not have good products
with the capability to satisfy customers
c)Tenacity despite failure:
As entreprenurs typically try new things, the possibility of failure exists.
And so developing a new business idea may require a certain degree of experimentation before a success is attained
Setbacks and failures inevitably occur during this process
The litmus test for entreprenurs is there ability to persevere through setbacks and failures
d) Execution intelligence:
The ability to fashion a solid idea into a viable business is a key characteristic of successful entrepreneurs
Commonly, this ability is thought of as execution intelligence
The ability to effectively execute a business idea demands the ability to translate thought, creativity and imagination into action and measurable
results
PART B- 7 MARKS
1. Explain four primary/personal characteristics of an Entrepreneur
four personal characterisitcs
a) Prior experience
Prior experience in an industry helps entrepreneurs recognize business opportunities
Studies have shown founders of firms get the idea for their new businesses while working as employees for companies in the same industries
Relationship between industry experience and being able to recognize opportunities explain that by working in an industry an individual may
spot market niche that is underserved
It is also possible that while working in a particular areas, an individual builds a network of social contacts in that industry that may provide
insights that lead to opportunities
b) Cognitive factors
Opportunity recognition may be an innate skill or a cognitive process
Some people believe that entrepreneurs have a “sixth sense” that allows them to see opportunities that others miss.
This “sixth sense” is called entrepreneurial alertness, which is formally defined as the ability to notice things without engaging in deliberate
search.
c) Social networks
The extent and depth of an individuals social network affects opportunity recognition
People who are able to build a substantial network of social and professional contacts will be exposed to more opoortnuities and ideas than
people with sparse networks
Research results suggest that between 40% and 50% of people who start a business got their idea via a social contact.
Also the differential impact of strong-tie versus weak-tie relationships sheds light on the social networks to opportuninty recognition.
Where strong-tie relationships are characterized by frequent interaction such as ties between coworkers, friends and spouses
Weak-tie relationships are characterized by infrequent interaction , like ties between casual acquanitances
It Is more likely that an entreperenur will get a new business idea through a weak-tie than a strong-tie relationship
Because strong-tie relationships which typically is formed between like-minded individuals tend to reinforce insights and ideas the individuals
already have
On the other hand, weak-tie relationships formed between causal acquaintances are not as apt to be between like minded individuals and so
one person may say something to another that could spark a completely new idea
d) Creativity
Creativity is the process of generating a novel or useful idea.
Opportunity recognition may be, at least in part, a creative process.
For an individual, the creative process can be broken down into five stages, beginning with preparation involves the background , experience and
knowledge that an entrepreneur brings to opportunity recognition process
Secondly, incubation is the stage during which a person considers an idea or thinks about a problem
Thirdly, insight is the flash of recognition when the solution to a problem is seen or an idea is born
Fourthly, evaluation is the stage of the creative process during which an idea is subjected to scrutiny and analyzed for its viability
And lastly , elaboration is the stage during which the creative idea is put into a final form

2. Discuss three ways to identify a “Business Opportunity”

there are three approaches entrepreneurs use to identify a business opportunity their new venture can choose to pursue
a)Observing trends:
The first approach to identifying opportunities is to obersve trends and study how they create opportunities for entrepenrurs to pursue
The most important trends to follow are economic trends, social trends , technological advances and political action and regulatory changes
Entreprenurs should remain aware of changes in these areas and these factors will help them to spot business,product and service opportunity
gaps
Firstly, economic forces involve state of the economy , level of disposable income and consumer spending patterns
Secondly, social fprces involve social and cultural trends, demographic changes and what people think is ‘in’
Thirdly, technological advances involves new technolgoies, emerging technologies and new uses of old technologies
And lastly political action and regulatory changes involves new changes in political arena and new laws and regulations
b) Solving problem
Second approach is to recognize problems and find ways to solve them
There many problems and challenges encountered in people’s daily lives that have yet to be solved, thus
Commenting on these issues and noticing how problems can lead to recognizing business ideas
Studies report that many companies have been started by people who have experienced problems and realized that the solution to the problem
represented business opportunities
c)Finding gaps in the marketplace
Gaps in the market place are the third source of business opoortunities, where particular prodiucts that consumers need or want aren’t available in
a particular location or aren’t available at all
Product gaps in the marketplace represent potentially viable business opportunities
A common way that gaps in the marketplace are recognized is when people become frustrated because they cant find a product or service that
they need and recognize that other people feel the same way

3. Explain any three ways of generating “Business Ideas”

a) brainstorming
A common way to generate new business ideas is through brainstorming
In general, brainstorming is simply the process of generating several ideas about a specific topic
The approaches range from a person sitting down with a yellow legal pad and jotting down interesting business ideas to formal ‘brainstorming
sessions’ led by moderators that involve a group of people
Brainstomring sessions dedicated to generating new business ideas are often less formal
Recorded ideas during the brainstorming are needed to be filtered and analyzed which is done later
However, an indidviduals imagination is the only limititng factor to brainstomring
b) Focus groups
A focus group is a gathering of 5 to 10 people who are selected because of their relationship to the issue being discussed.
Focus groups are used for a
variety of purposes, including the generation of new business ideas.
Focus groups typically involve a group of people who are familiar with a topic, are brought together to respond to questions,
and shed light on an issue through the give-and-take nature of a group discussion.
Much of the effectiveness of a focus group session depends on the moderator’s ability to ask questions and keep the discussion on track.
c)Library and internet research
A third approach to generating new business ideas is to conduct library and Internet research.
Often, the best ideas emerge when the general notion of an is merged with extensive library and Internet research, which might provide insights
into generating business ideas
The best approach to utilizing a library is to discuss your general area of interest with a reference librarian, who can point out useful
resources, such as industry-specific magazines, trade journals, and industry reports.
Simply browsing through several issues of a trade journal on a topic can spark new ideas.
Internet research is also important.
Simply typing “new business ideas” into Google or Bing will produce links to newspaper and magazine articles about the “hottest” and “latest”
new business ideas.
Although these types of articles are general in nature, they represent a starting point if you’re trying to generate new business ideas from
scratch.
4. Describe any three forms of Feasibility analysis. Pg 99
Feasibility analysis is the process of determining if a business idea is viable
a) product/service feasibility
Product/service feasibility analysis is an assessment of the overall appeal of the product or service being proposed.
nothing else matters if the product or service itself doesn’t sell.
There are two components to product/service feasibility analysis: product/service desirability and product/service demand.
product/service desirability :The first component of product/service feasibility is to affirm that the proposed product or service is desirable and
serves a need in the marketplace.
asking the following questions to determine the basic appeal of the product or service such as:
■ Does it make sense? Is it reasonable? Is it something real customers
will buy?
■ Does it take advantage of an environmental trend, solve a problem, or fill
a gap in the marketplace?
■ Is this a good time to introduce the product or service to the market?
The proper mind-set at the feasibility analysis stage is to get a general sense of the answers to these and similar questions, rather than to try to
reach final conclusions.
The best way to achieve this is to “get out of the building” and talk to potential customers tool that is particularly useful in soliciting feedback
and advice from prospective customers is to administer a concept test.
Concept Test : A concept statement is a one-page description of a business that is distributed to people who are asked to provide feedback on the
potential of the business idea.
The feedback will hopefully provide the entrepreneur: A sense of the viability of the product or service idea.
Suggestions for how the idea can be strengthened or “tweaked” before proceeding further.
product/service demand.
The second component of product/service feasibility analysis is to determine if there is demand for the product or service. Three commonly
utilized methods
for doing this include (1) talking face-to-face with potential customers, (2) utilizing
online tools, such as Google Adwords and landing pages, to assess demand,
and (3) library, Internet, and gumshoe research.
• Talking Face-to-Face with Potential Customers
The only way to know if your product or service is what people want is by talking to them.
The idea is to gauge customer reaction to the general concept of what you want to sell, and tweak, revise, and improve on the idea based
on the feedback.
In some cases, talking with potential customers will cause an entrepreneur to abandon an idea.
Entrepreneurs are often surprised to find that a product idea they think solves a problem gets lukewarm reception when they talk to
actual customers.
• Utilizing Online Tools, Such as Google AdWords and Landing Pages, to Assess Demand
The second way to assess demand is to utilize online tools to gauge reaction from potential customers.
Some entrepreneurs purchase text ads on search engines that show up when a user is searching for a product that is close to their idea. If
the searcher clicks on the text ad, they are directed to a landing page that describes the idea.
• library, internet, and gumshoe research The third way to assess demand for a product or service idea is by conducting library, Internet, and
gumshoe research.
While talking to prospective customers is critical, collecting secondary data on an industry is also helpful.
Simple gumshoe research is also important for gaining a sense of the likely demand for a product or service idea.
b) industry/target market feasibility
Industry/target market feasibility is an assessment of the overall appeal of
the industry and the target market for the product or service being proposed.
There are two components to industry/target market feasibility analysis:
industry attractiveness and target market attractiveness.
• industry Attractiveness
Industries vary in terms of their overall attractiveness
•In general, the most attractive industries have the characteristics such as Are young rather than old.
• Are early rather than late in their life cycle.
• Are fragmented rather than concentrated.
• Are growing rather than shrinking.
Particularly important—the degree to which environmental and business trends are moving in favor rather than against the industry.
• Target Market Attractiveness
The challenge in identifying an attractive target market is to find a market that’s large enough for the proposed business but is yet small enough to avoid
attracting larger competitors.
Assessing the attractiveness of a target market is tougher than assessing the attractiveness an entire industry.
Often, considerable ingenuity must be employed to find information to assess the attractiveness of a specific target market.

c) Organizational feasibility
Organizational feasibility analysis is conducted to determine whether a proposed business has sufficient management expertise, organizational
competence, and resources to successfully launch.7 There are two primary issues
to consider in this area: management prowess and resource sufficiency.
• Management Prowess
A proposed business should candidly evaluate the prowess, or ability, of its management team to satisfy itself that management has the
requisite passion and expertise to launch the venture.
Two of the most important factors in this area are:
The passion that the sole entrepreneur or the founding team has for the business idea.
The extent to which the sole entrepreneur or the founding team understands the markets in which the firm will participate.

• Resource Sufficiency
This topic pertains to an assessment of whether an entrepreneur has sufficient resources to launch the proposed venture.
To test resource sufficiency, a firm should list the 6 to 12 most critical nonfinancial resources that will be needed to move the business idea forward
successfully.
If critical resources are not available in certain areas, it may be impractical to proceed with the business idea.
5. Explain three types of Start-up firms. Pg 40
a) Salary-substitute firms are small firms that yield a level of income for
their owner or owners that is similar to what they would earn when working for
an employer.
Dry cleaners, convenience stores, restaurants, accounting firms, retail stores, and hairstyling salons are examples of salary-substitute firms.
The vast majority of small businesses fit into this category. Salary-substitute
firms offer common, easily available and not particularly innovative products or
services to customers.
b) Lifestyle firms provide their owner or owners the opportunity to pursue
a particular lifestyle and earn a living while doing so.
Lifestyle firms include personal trainers, golf and tennis pros, the owners of bed & breakfasts, and tour guides.
These firms are not innovative, nor do they grow quickly.
Commonly, lifestyle companies promote a particular sport, hobby, or pastime and may employ only the owner or just a handful of people.
c) Entrepreneurial firms bring new products and services to market. As we
noted earlier in this chapter, the essence of entrepreneurship is creating value
and then disseminating that value to customers.
In this context, value refers to worth, importance, or utility. Entrepreneurial firms bring new products and services to market by creating and then
seizing opportunities.
Having recognized an opportunity, the entrepreneurs leading companies of this type create products and services that have worth,
are important to their customers, and provide a measure of usefulness to their customers that they wouldn’t have otherwise.