P.O. Box 342-01000 Thika
Email:
Web: www.mku.ac.ke
DEPARTMENT OF BUSINESS AND
SOCIAL STUDIES
COURSE CODE: UCU 005
COURSE TITLE: ENTREPRENEURSHIP
Instructional manual for BBM – Distance Learning
1
, TABLE OF CONTENT
COURSE OUTLINE.................................................................................................................... 4
CHAPTER ONE........................................................................................................................... 5
1.0 ATTRIBUTES OF ENTREPRENEURS AND ENTREPRENEURIAL CAREERS..... 5
1.1 Introduction ........................................................................................................................ 5
1.2. Entrepreneurship and Innovation....................................................................................... 10
1.3 The Evolution of Entrepreneurship in Kenya........................................................ 11
1.4 The Entrepreneurship Culture....................................................................................... 13
1.5 Entrepreneurial Cultural Practices in Kenya ............................................................... 15
1.6 The Theories of Entrepreneurship........................................................................... 17
1.7 Role of Entrepreneurship in Economic Development................................................ 18
1.8. Model Review Sample Examination Questions ......................................................... 20
CHAPTER TWO......................................................................................................................... 22
2.0 EVALUATING ENTREPRENEURIAL OPPORTUNITIES........................................ 22
2.1 Procedures of Starting a Business............................................................................ 22
2.2. The Process of Screening a Business Idea.................................................................... 24
2.3 The Generation and Sources of Business ideas............................................................ 27
2.4. Business Incubation ........................................................................................................ 31
2.5. Product Safety and Liability .................................................................................... 37
2.6. Model Review Sample Examination Questions ......................................................... 38
CHAPTER THREE .................................................................................................................... 39
3.0.... MARKETING REQUIREMENTS ASSESSING AND SELECTING A SUITABLE
MARKET .................................................................................................................................... 39
3.1. Marketing Functions and strategies ............................................................................. 39
3.2 The Marketing Mix .......................................................................................................... 41
3.3 The 4 Ps (the four Ps)................................................................................................ 41
3.4 Factors which may influence an entrepreneur in choosing a promotional
method..................................................................................................................................... 49
3.5 Model Review Sample Examination Questions ................................................... 49
CHAPTER FOUR ...................................................................................................................... 51
4.0 ORGANIZATIONAL FORMS......................................................................................... 51
4.1 Unincorporated Business.......................................................................................... 51
4.2 Incorporated Business / Joint Stock Companies................................................... 60
MEMORANDUM OF ASSOCIATION............................................................................... 63
ARTICLES OF ASSOCIATION............................................................................................ 64
4.4 Co-operative Societies ............................................................................................... 72
Disadvantages of Cooperative Society ................................................................................. 80
4.5. Review Questions ........................................................................................................... 80
CHAPTER FIVE ........................................................................................................................ 81
5.0 RESOURCE NEEDS FOR ENTREPRENEURSHIP...................................................... 81
5.1 Sources of Business Finance ........................................................................................... 81
Review Questions .................................................................................................................... 107
CHAPTER SIX ......................................................................................................................... 108
2
,6.0 BUSINESS PLAN DEVELOPMENT............................................................................. 108
6.1 Planning for the Business Venture ........................................................................ 108
6.2 Business Plan ........................................................................................................... 110
Review Questions ................................................................................................................ 120
CHAPTER SEVEN .................................................................................................................. 121
7.0 CURRENT ISSUES IN ENTERPRENEUSHIP............................................................ 121
7.1. Business Ethics .............................................................................................................. 121
7.2 Aspects of Management Ethics ............................................................................. 123
7.3 Role of an Organization (entrepreneurs) to Stakeholders ................................. 124
7.4. Social Responsibility..................................................................................................... 127
7.4. E-Commerce .................................................................................................................. 132
E-Government ...................................................................................................................... 134
E-Procurement...................................................................................................................... 135
7.5. Globalization Trends .................................................................................................... 136
7.6. Review Questions ......................................................................................................... 141
SAMPLE QUESTION PAPERS............................................................................................ 143
3
, COURSE OUTLINE
Purpose: To introduce learners to the field of entrepreneurship by equipping them with
the requisite skills of an entrepreneur
Course Objectives: By the end of the course, students should be able to:-
State the attributes of an entrepreneur and evaluate business opportunities
Discuss the necessary start up issues and organization forms
Discuss the ideal structure, technology, harvesting and ethical issues in
entrepreneurship
Course Content:
Attributes of entrepreneurs and entrepreneurial careers; Evaluating opportunities;
Start-up issues, legal issues with new firms; Organizational forms; Determining
resource needs; Acquiring resources; Marketing requirements; Deal structure;
Technology issues; Harvesting issues; Ethical issues
Teaching / Learning Methodologies: Lectures and tutorials; group discussion;
demonstration; Individual assignment; Case studies
Instructional Materials and Equipment: Projector; test books; design catalogues;
computer laboratory; design software; simulators
Recommended Text Books:
Kurako D, and Hodgets M, (2003), Entrepreneurship Theory Process and Practice,
Thomson, South Western Publishing Co.
Text Books for further Reading:
Drunker P.F (1994), Innovation and Entrepreneurship, Oxford Butterworth
Heinemann
Other support materials: Various applicable manuals and journals; variety of electronic
information resources as prescribed by the lecturer
Module Author: Mr. Cliff Onsongo
4
Email:
Web: www.mku.ac.ke
DEPARTMENT OF BUSINESS AND
SOCIAL STUDIES
COURSE CODE: UCU 005
COURSE TITLE: ENTREPRENEURSHIP
Instructional manual for BBM – Distance Learning
1
, TABLE OF CONTENT
COURSE OUTLINE.................................................................................................................... 4
CHAPTER ONE........................................................................................................................... 5
1.0 ATTRIBUTES OF ENTREPRENEURS AND ENTREPRENEURIAL CAREERS..... 5
1.1 Introduction ........................................................................................................................ 5
1.2. Entrepreneurship and Innovation....................................................................................... 10
1.3 The Evolution of Entrepreneurship in Kenya........................................................ 11
1.4 The Entrepreneurship Culture....................................................................................... 13
1.5 Entrepreneurial Cultural Practices in Kenya ............................................................... 15
1.6 The Theories of Entrepreneurship........................................................................... 17
1.7 Role of Entrepreneurship in Economic Development................................................ 18
1.8. Model Review Sample Examination Questions ......................................................... 20
CHAPTER TWO......................................................................................................................... 22
2.0 EVALUATING ENTREPRENEURIAL OPPORTUNITIES........................................ 22
2.1 Procedures of Starting a Business............................................................................ 22
2.2. The Process of Screening a Business Idea.................................................................... 24
2.3 The Generation and Sources of Business ideas............................................................ 27
2.4. Business Incubation ........................................................................................................ 31
2.5. Product Safety and Liability .................................................................................... 37
2.6. Model Review Sample Examination Questions ......................................................... 38
CHAPTER THREE .................................................................................................................... 39
3.0.... MARKETING REQUIREMENTS ASSESSING AND SELECTING A SUITABLE
MARKET .................................................................................................................................... 39
3.1. Marketing Functions and strategies ............................................................................. 39
3.2 The Marketing Mix .......................................................................................................... 41
3.3 The 4 Ps (the four Ps)................................................................................................ 41
3.4 Factors which may influence an entrepreneur in choosing a promotional
method..................................................................................................................................... 49
3.5 Model Review Sample Examination Questions ................................................... 49
CHAPTER FOUR ...................................................................................................................... 51
4.0 ORGANIZATIONAL FORMS......................................................................................... 51
4.1 Unincorporated Business.......................................................................................... 51
4.2 Incorporated Business / Joint Stock Companies................................................... 60
MEMORANDUM OF ASSOCIATION............................................................................... 63
ARTICLES OF ASSOCIATION............................................................................................ 64
4.4 Co-operative Societies ............................................................................................... 72
Disadvantages of Cooperative Society ................................................................................. 80
4.5. Review Questions ........................................................................................................... 80
CHAPTER FIVE ........................................................................................................................ 81
5.0 RESOURCE NEEDS FOR ENTREPRENEURSHIP...................................................... 81
5.1 Sources of Business Finance ........................................................................................... 81
Review Questions .................................................................................................................... 107
CHAPTER SIX ......................................................................................................................... 108
2
,6.0 BUSINESS PLAN DEVELOPMENT............................................................................. 108
6.1 Planning for the Business Venture ........................................................................ 108
6.2 Business Plan ........................................................................................................... 110
Review Questions ................................................................................................................ 120
CHAPTER SEVEN .................................................................................................................. 121
7.0 CURRENT ISSUES IN ENTERPRENEUSHIP............................................................ 121
7.1. Business Ethics .............................................................................................................. 121
7.2 Aspects of Management Ethics ............................................................................. 123
7.3 Role of an Organization (entrepreneurs) to Stakeholders ................................. 124
7.4. Social Responsibility..................................................................................................... 127
7.4. E-Commerce .................................................................................................................. 132
E-Government ...................................................................................................................... 134
E-Procurement...................................................................................................................... 135
7.5. Globalization Trends .................................................................................................... 136
7.6. Review Questions ......................................................................................................... 141
SAMPLE QUESTION PAPERS............................................................................................ 143
3
, COURSE OUTLINE
Purpose: To introduce learners to the field of entrepreneurship by equipping them with
the requisite skills of an entrepreneur
Course Objectives: By the end of the course, students should be able to:-
State the attributes of an entrepreneur and evaluate business opportunities
Discuss the necessary start up issues and organization forms
Discuss the ideal structure, technology, harvesting and ethical issues in
entrepreneurship
Course Content:
Attributes of entrepreneurs and entrepreneurial careers; Evaluating opportunities;
Start-up issues, legal issues with new firms; Organizational forms; Determining
resource needs; Acquiring resources; Marketing requirements; Deal structure;
Technology issues; Harvesting issues; Ethical issues
Teaching / Learning Methodologies: Lectures and tutorials; group discussion;
demonstration; Individual assignment; Case studies
Instructional Materials and Equipment: Projector; test books; design catalogues;
computer laboratory; design software; simulators
Recommended Text Books:
Kurako D, and Hodgets M, (2003), Entrepreneurship Theory Process and Practice,
Thomson, South Western Publishing Co.
Text Books for further Reading:
Drunker P.F (1994), Innovation and Entrepreneurship, Oxford Butterworth
Heinemann
Other support materials: Various applicable manuals and journals; variety of electronic
information resources as prescribed by the lecturer
Module Author: Mr. Cliff Onsongo
4
