ZETECH UNIVERSITY

BIT4105: TECHNOPRENEURSHIP

ASSIGNMENT ONE

QUESTIONS

1. Discuss the Qualities of a good business opportunity (10 marks)

Ready and Available Market. - The first thing that one ought to take into account
before planning to start a business is to ask themselves whether there is a significant
market for the particular product or services. This also implies that your product should
be on demand so that you can satisfy customers’ need.
Availability of Resource. - You should have all the resources needed to take
advantage of that particular business opportunity as well as a time frame for
implementing it lest someone else beats you to it. If a lot of money is required to start a
business either because costs are high or it will take a while to become cash flow
positive, resources will be required either from investors of founders.
Adequate Skill. - You need to have the experience required to tap into that particular
business opportunity. If the skills required to execute the business plays to the strength
of the team, execution risk should be less.
No or Few Competition. - Lack of competition in the market will enable you win over
your targeted persons in the market wholly. With this you will be able to gain much
profit.
Identifiable Risks. - The future of a startup is always uncertain, therefore identifying a
risk is the first step to understanding how they can be monitored and then mitigated.
The more strategic options you have identified, the greater your chance of success.

2. Define incubation and highlight its importance to the development of small

enterprises (5 marks)
Incubation – is the process, wherein an individual or an organization supports the
establishment and growth of a start-up business.
Small enterprises are important jobs creators, contributing to the social stability of
the area in which they activate
- The small enterprise sector is the main source of forming the middle class
with a decisive role in maintaining the social-political stability in a country.
 This fact is possible because the distribution of economical power by the
system of small and medium sized companies lead to a favourable distribution
of power in society.
- They increase the competitive state of the market, being sources of
competitiveness, making a better satisfaction of consumers needs.
- The small enterprise contribute in forming goods and services. Thus, they help
in forming the GDP and increasing the national exports and investitions.
- It combines factors of production that, in other conditions, probably wouldn’t
be used, like local resources or secondary products of big companies. The
small enterprise cooperate with the big companies, fact that is shown by
partnership agreements (financially, technologically and so on) or by the form
of supplies (of capacity, of specialty and so on).

3. Identify the various causes of business failure at start up stage (5 marks)

- They have reduced capital which makes them vulnerable in case of economic shock.
- High rate of dependence to a group of clients (for example: the subcontractors).
- The lack of functional distribution systems and access to performant and accessible
marketing services.
- Low access to new technologies.
- The lack of sufficient management and economical knowledge.