QUESTION ONE a) The main impetus to develop entrepreneurship in Kenya came from the international labour organization (ILO) report on the role of entrepreneurship in employment creation Based on this report, discuss subsequent strategies that the government of Kenya put in place to promote small-scale enterprises and entrepreneurs. (15 marks) b) Discuss the distinctive features of limited company form of business ownership that distinguish it from sole proprietorship and partnership. (15 marks) QUESTION TWO a) A business plan is not only important to the entrepreneur but also to other stakeholders. Identify groups of people interested in a business plan and explain the reasons for which they are interested in it. (10 marks) b) There are several critical success factors that any entrepreneur should put into consideration before entering into business. Discuss. (10 marks) QUESTION THREE Explain why it is important for an entrepreneur to protect his business idea and identify various methods by which the protection can be enhanced. QUESTION FOUR (20 marks) a) Distinguish between invention and innovation and explain four ways by which an entrepreneur can be innovative. (10 marks) b) Discuss the factors that an entrepreneur should consider while choosing between various financing options. (10 marks)

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QUESTION ONE a) The main impetus to develop entrepreneurship in Kenya came from the international labour organization (ILO) report on the role of entrepreneurship in employment creation Based on this report, discuss subsequent strategies that the government of Kenya put in place to promote small-scale enterprises and entrepreneurs. (15 marks) b) Discuss the distinctive features of limited company form of business ownership that distinguish it from sole proprietorship and partnership. (15 marks) QUESTION TWO a) A business plan is not only important to the entrepreneur but also to other stakeholders. Identify groups of people interested in a business plan and explain the reasons for which they are interested in it. (10 marks) b) There are several critical success factors that any entrepreneur should put into consideration before entering into business. Discuss. (10 marks) QUESTION THREE Explain why it is important for an entrepreneur to protect his business idea and identify various methods by which the protection can be enhanced. QUESTION FOUR (20 marks) a) Distinguish between invention and innovation and explain four ways by which an entrepreneur can be innovative. (10 marks) b) Discuss the factors that an entrepreneur should consider while choosing between various financing options. (10 marks)

Answer 1

QUESTION ONEa) The government of Kenya implemented several strategies to promote small-scale enterprises and entrepreneurs based on the ILO report. These strategies included the establishment of the National Enterprise Development Fund (NEDF) to provide financial support to entrepreneurs, the creation of the Small Enterprise Development Programme (SEDP) to offer training and technical assistance, and the establishment of the Kenya Industrial and Export Processing Zones Authority (KIEPZA) to promote industrialization and export-oriented enterprises.b) The distinctive features of a limited company form of business ownership include limited liability, where shareholders are not personally liable for the company's debts beyond their investment, and perpetual existence, meaning the company continues to exist even if shareholders change. This contrasts with sole proprietorship, where the owner has unlimited liability and the business ends with the owner's exit, and partnership, where partners share liability and management responsibilities.QUESTION TWOa) Groups interested in a business plan include investors, who need it to assess potential returns, banks and lenders, who use it to evaluate creditworthiness, employees, who understand the company's direction, and customers, who see the value proposition. Each group has a stake in the business's success and uses the plan to make informed decisions.b) Critical success factors for entrepreneurs include market research, understanding customer needs, securing adequate financing, developing a solid business plan, building a strong team, and continuously adapting to market changes. These factors help ensure the business can meet customer demands, manage finances effectively, and stay competitive.QUESTION THREEProtecting a business idea is crucial to prevent theft and ensure competitive advantage. Methods to enhance protection include patents for inventions, trademarks for branding, copyrights for creative works, and trade secrets for confidential information. These legal tools provide exclusive rights and deter competitors from using the entrepreneur's ideas without permission.QUESTION FOURa) Invention is the creation of a novel idea or product, while innovation is the application of inventions to create value. An entrepreneur can be innovative by fostering a culture of creativity, investing in research and development, collaborating with experts, and continuously seeking new opportunities and solutions.b) Factors to consider when choosing financing options include the cost of capital, flexibility, impact on ownership, and the potential for future funding. Entrepreneurs should evaluate these factors to ensure they secure the necessary funds while maintaining control and preparing for growth.

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