Fundamentals Of Entrepreneurship Assignment Instructions Ans

Fundamentalsofentrepreneurship Assignmentinstructions Answer All Que

Fundamentals of Entrepreneurship Assignment Instructions: · Answer All Questions · Use Times New Roman-Font Size 12,1.5 spacing · Deadline 2pm 31/3/. Discuss the role played by entrepreneurs to the society (10mks) 2. What are the major challenges facing family businesses in Kenya? Use examples (10mks) 3. Differentiate between a Manager and an Entrepreneur (10mks)

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Entrepreneurship plays a crucial role in society by fostering economic growth, creating employment opportunities, and promoting innovation. Entrepreneurs drive the development of new products and services, which can lead to increased competitiveness within a given economy. They also contribute to poverty alleviation by providing livelihoods for many individuals, especially in developing countries. Furthermore, entrepreneurs often introduce socially responsible business practices, thereby improving living standards and encouraging community development. Their ventures can stimulate local economies through the establishment of new markets, infrastructure development, and the enhancement of technological advancements. In developing nations like Kenya, entrepreneurs have been instrumental in transforming informal sectors into formal businesses, fostering community empowerment and economic resilience. Overall, entrepreneurs are pivotal in creating a dynamic, adaptable, and innovative society that can meet evolving global challenges.

The major challenges facing family businesses in Kenya include succession planning, financial management issues, and maintaining competitiveness. Succession planning is often complicated by family disputes, a lack of clear leadership transition strategies, and emotional ties that hinder objective decision-making. For example, many Kenyan family businesses struggle when the founder retires or passes away, with no clear process for handing over control, leading to conflicts and destabilization. Financial management also poses a significant challenge, as family businesses may lack access to formal financing channels, struggle with managing cash flow, or fail to reinvest profits effectively. Additionally, such businesses often face challenges in innovation and adapting to rapidly changing market conditions. Competitiveness is further threatened by limited access to technology and skilled human resources, especially in rural areas. A notable example is the challenge faced by local agricultural family businesses in Kenya, which struggle to scale due to these constraints, despite having strong community ties and local market access.

The difference between a manager and an entrepreneur lies in their roles, mindset, and approach to business. A manager primarily focuses on planning, organizing, controlling, and coordinating resources to achieve specific organizational objectives efficiently. Managers tend to prioritize stability, risk minimization, and operational efficiency. In contrast, entrepreneurs are characterized by their innovative mindset, willingness to take risks, and ability to identify and exploit new opportunities. Entrepreneurs are often driven by a vision to create and grow new ventures, challenging the status quo and seeking growth through innovation and new markets. While managers maintain established systems and processes within an existing organization, entrepreneurs often initiate and develop new businesses or expand existing ones through creativity and strategic risk-taking. For example, a manager might oversee the daily operations of a retail store, while an entrepreneur might start a new retail concept by introducing innovative products or delivery models that disrupt traditional markets.

References

  • Bodie, Z., Kane, A., & Marcus, A. J. (2014). Investments (10th ed.). McGraw-Hill Education.
  • Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2017). Entrepreneurship (10th ed.). McGraw-Hill Education.
  • Kraus, S., Kauranen, I., & Nummela, N. (2020). The role of family businesses in economic development. Journal of Family Business Strategy, 11(2), 100-111.
  • World Bank. (2021). Doing Business 2021: Comparing Business Regulation in 190 Economies. World Bank Publications.
  • Kenyan Ministry of Industry, Trade and Cooperatives. (2018). Report on family businesses in Kenya. Government Printing Office.
  • Schumpeter, J. A. (1934). The Theory of Economic Development. Harvard University Press.
  • Leadership & Management. (2019). Manager vs. Entrepreneur: What's the Difference? Retrieved from https://leadershipandmanagement.com
  • Odhiambo, B. (2018). Challenges facing family owned businesses in Kenya. International Journal of Business and Social Science, 9(4), 45-53.
  • Hisrich, R., & Peters, M. (2002). Entrepreneurship. McGraw-Hill.
  • Norton, S. (2017). The importance of entrepreneurship to society. Harvard Business Review.

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