SCHOOL: SCHOOL OF EDUCATION

DEPARTMENT: CENTER FOR TEACHER EDUCATION

COURSE TITLE: ENTREPRENEURSHIP AND VENTURE CREATION

COURSE CODE: BSEN 311

NAME: JACQUELENE KEBENEI

REG NO: EDS/059/22

LECTURER:
(A)WHAT IS THE ROLE OF AN ENTREPRENEUR IN ECONOMIC DEVELOPMENT?
(5MKS)

i. Creation of job; entrepreneurs tend to establish new businesses that lead to of job
opportunities thus reducing the rate of unemployment hence stimulating growth
economically
ii. Formation of capital; through their investments in their respective ventures,
Entrepreneurs mobilize the given resources and create wealth which fuels further growth
in the economic sector
iii. Diversification of economy; they contribute to economic diversification by developing
new industries or mobilizing the existed ones thus it reduces the dependency ration on
single sector since there is emergence of other sectors in the economy
iv. Social change; through entreprenual activities, the entrepreneurs tend to address social
issues thus leading to promotion of sustainability and social responsibility which affects
the communities positively
v. Generation of tax; new businesses tend to contribute to government revenues through
taxes, which helps to maintain infrastructure and other social amenities thus supporting
economic development

B. DISCUS ANY TWO THEORIES OF ENTREPRENEURSHIP IN DETAILS

Psychological theory;

This theory focuses on the characteristics and traits of individuals in entrepreneurs. It suggests
that certain personality and cognitive factors has influence on entrepreneurial behavior; there are
key concepts in this theory

i. Motivation; includes intrinsic motivation and independent desire plays a vital

Economic theory

This theory asserts that entrepreneurs play a very important or crucial role in the economy by
recognizing and exploiting new opportunities for maximum gaining of profits .It puts on
emphasis in the relationship between economic factors and entrepreneurship. Economic factors
includes; supply, demands, market structures. This theory has the following key concepts

i. Market dynamics, these are changes in the market that entrepreneurs need to comply
with. They need to Innovate and adapt their business models in order to meet consumer
needs.
ii. Resource Allocation; they contribute to efficient Allocation of resources Identifying and
making use at high production rate this leads to of the resources when they are greater
overall economic efficiency.
iii. Profit motive; Entrepreneurs are driven by the desire to earn more profits and create
profit will go beyond even to take risk to create products or services that fulfil market
demands.

(C)WHAT ARE THE DIFFERENT ELEMENTS IN THE INNOVATION PROCESS

i. Idea Generation; It is the initial stage in innovation. This is where creativity comes into
play .it involve generation of new concepts and brainstorming through prior various
techniques such as group discussions and research
ii. Idea screening; one these ideas are generated; there is need to evaluate and screen them
to determine their potentiality .This is the analyzing the ideas based on criteria such as
market demand, costs. This aims to identify most promising ideas
 iii. Concept Development and prototyping; this is where the selected ideas are now
developed into more detailed concept prototyping allows for testing assumption and
making improvements before full scale implementation
iv. Testing and validation: once the prototype are developed, they undergo testing and
validation. This involves gathering of feedback, conducting focus groups. These insights
are essential for refining product or service further
v. Commercialization: This is the final element that brings the innovative Product or
service to market. This include, the development of market Strategies, launching the
product to target the Audience

D. NAME THE REQUISITES OF A SUCCESSFUL BUSINESS (5 MKS).

Adaptability and Innovation; The ability to adapt to changes in market Conditions and
preference of the consumer is crucial for long-term success Innovation encourages the
implementation of new ideas, process This leads to thriving well of Businesses in competitive
Environments,

Financial Management: This ensures the sustainability of business Operations and profitability
is enhanced. It includes Budgeting, managing flow cash, and monitoring expenses. This enables
for making of sound decision and Preparation for future growth."

Strong Business plan: Business plan outline the vision of the business, mission, goal, strategies
hence it is efficient for a Business to be successful since it secures funding from Investors and
lenders. A solid business plan also helps in setting priorities and measuring progress

Market Research: Understanding the target market, is critical this includes analyzing customer
needs, preferences and behaviors, as well as identifying competitors and trends in industries.
This Market research helps in making decisions that are informed and developing products or
services meet market demands.

Skilled Team: Having a skilled and motivated team is essential for achieving business goals.
This involves hiring the right talent and fostering a positive work culture enhances productivity
and Innovation. Continuous training and development opportunities can also contribute to
employee satisfaction and retention