Entrepreneurship

1. Distinguish between entrepreneurship and intrapreneurship?(2)

Entrepreneurship is the process of bringing together creative and
innovative ideas and coupling these with management and
organizational skills in order to combine people, money and other
resources to meet an identified need and thereby create wealth(at a
profit) whilst
Intrapreneurship is the process of being innovative.
2. a)Differentiate between an intrapreneur and entrepreneur?(2)
b) Distinguish between entrepreneur and management. (4)
An intrapreneur is an employee or manager who is innovative and
creative within an existing firm. Whilst an entrepreneur is an initiator,
originator of an enterprise, who organizes or manages commercial
undertaking and mobilizes/ combines factors of production
(capital/labour) to meet identified needs and wants/ solve society’s
problems.
3. Define entrepreneur.(1)
An entrepreneur is an initiator, originator of an enterprise, who
organizes or manages commercial undertaking and
mobilizes/combines factors of production (capital,labour) to meet
identified needs and wants/ solve society’s problems.
4. List 4 characteristics of an entrepreneur.
5. Outline briefly any 3 entrepreneurial characteristics.(3)
a) Risk taking- take calculated risks, forecast and foresees the
future.
b) Innovative-provide unique services
c) Creative-develop the future and give efficient services.
d) Organized-demonstrate good managerial principles.
e) Customer orientation-center on customer needs and carry out a
constant needs analysis.
f) Flexibility-takes identified opportunities with caution and make a
way out of them.
g) Integrity- must be a principled entrepreneur.
h) Patriotic-business should sustain itself without over profiteering.
 i) Reliable-should be dependent upon for services.
j) Profit oriented- employ profitable business approaches to
strengthen and enlarge the enterprise
k) Drive and energy-be tireless
l) Goal setting- set specific, measurable,achievable,realistic and
timely goals
m) Initiative
n) Honest
o) Responsible
p) Industrious
q) Confidence in ability to succeed
r) Desire for immediate feedback
s) Future orientation
t) Value of achievement over money
u) High degree of commitment.
6. Give 3 types of startup capital, which might be used by an
entrepreneur.(3)
a) Personal savings.
b) Selling shares
c) Leasing
d) Loan
e) Overdraft
f) Hire purchase
g) Debt factoring
h) Trade credit
i) Debentures
j) Retained profits
k) Selling of assets
7. State the four agents of production and the reward that each
gets.(4)
8. What income goes to the agents of production.(4)
Agent Reward
a) land rent
b) labour wages and salaries
c) capital interest
 d) entrepreneurship profit

9. Explain any five roles of SME’s to the Zimbabwe economy and

society in general.(10)
10. Discuss the importance of entrepreneurship for social and
economic development in Zimbabwe(20)
11. Identify made by small businesses to the community(5)
 Provisions of a variety of products
 Provision of job opportunities for locals
 Improve standard of living of locals and welfare.
 Increase consumption of a variety of goods
 Provide cheap convenience since transport costs to other areas
is eliminated
 A means of mobilizing resources of a country and strengthening
its capacity.
 Empower marginalized groups in society
 Promotion of privatization
 Promote an innovative and competitive economic structure
better equipped to respond to the grass roots needs of the
communities and markets they serve.
 Earn foreign currency for the country
 Increase GDP through their innovations and creativeness.
 Infrastructural development
 Competition- quality products.

12. Name the 2 major types entrepreneurship environment.(2)

a) Give any 2 factors of each type
b) Describe how one of the factors affect the entrepreneur
and how he/she can minimize its negative impact on
business(3)
13. An entrepreneur needs to understand and respond to his
environment, which can affect a business enterprise.(10)
Political environment-stability, instability, political parties, government
Economic environment-interest rates, forex, inflation, income tax.
Social cultural environment-beliefs, values, norms, artifacts.
 Technological environment-internet, email, website.
Competitors-strategies , levels.
Legislation/ government/ international laws-rules, laws.

14. Explain why small organizations are able to survive and

compete with large organizations under Zimbabwe’s harsh
business environment.(20)
15. Appraise the statement that small scale entrepreneur
continue to survive despite the existence of giant
businesses.(20)
 Supportive government laws and regulations, low taxes, AAG,
cross boarder association
 Low production costs
 Niche marketing
 Provision of substitute goods
 Giving special services to giant firms e.g. breaking bulk,
subcontracted by firms, provision of transport, commerce
 Accessible location of business
 Personal touch(know customer by name)
 Breaking bulk
 Convenient opening and closing hours
16. State and explain ways by which your small business
might compete with larger business.(10)
 Reserve bank of Zimbabwe’s financial support to small
business
 Financial and advice from ministry of SME’s
 Govern subsidies resulting in them getting inputs at a lower
costs price than larger firms.
 Low interest rates from e.g. Agri-bank, CBZ
 Government’s black empowerment policy
 Government’s indigenous policy
 Entrepreneurship training programs by government
17. Identify and explain any five benefits that an entrepreneur
gets for good customer care.(10)
18. Explain the usefulness of customer care to the
entrepreneur.(5)
 New business and increased profits
 New customer creation
 Dialogue created which enables the entrepreneur to know and
understand what customers need and want
 Build good relationships and loyalty with customers
 Build good reputation and good image
 Business becomes a market driven entity as you get
information on what your customers need and want.
 Marketing by word of mouth.
19. Outline and explain any 4 tips of customer care.(8)
 Reliability-consistency of performance and dependability
 Responsiveness-willingness and readiness of the entrepreneur
in providing the services within reasonable time immediately if
not sooner.
 Competence-possession of required skills and knowledge
 Accessibility-degree of approachability and ease of conduct
 Courtesy-politeness, respect, consideration, friendliness of your
organization’s contact e.g. receptionist, telephonist etc
 Communication-keep your customer well informed they
understand
 Credibility-being trustworthy and faithful
 Security-customer should be protected from danger, risk or
doubt from the premises
 Tangibles-physical evidence e.g. buildings, good handling tools
and appearance of personnel
20. Self-employment through being a sole trader or engaging
in SME’s has benefits and limitations/ challenges. Discuss this
statement.(20)
21. Define the following terms
a) Unlimited liability-business and personal assets are taken in
the event of failures to pay creditors, affects partnerships and
sole traders
b) Separate legal entity
 This means that the company is separate from the
shareholders hence it can be sued or can sue in its own rights
c) Articles of association
d) This is a document which governs the internal relations of the
company it includes the company constitution, voting rights
transfer of shares etc.
e) Public enterprises
Socially owned and operated organizations with the intention of
supplying goods and services at reasonable prices for the
benefit of the whole community

22. Give any five forms of business that you know.(5)

 Sole trader
 Partnership
 Public limited
 Private limited
 Cooperatives
 Parastatals (public enterprise)
Define legal personality in status of an organization.
23. Discuss any 4 advantages and disadvantages of sole
proprietorship.(4)
Advantages
 Easy to start
 Easy to discontinue
 No special legal restrictions
 Fast decision making
 Enjoys privacy
 Profits are not shared

Disadvantages

Suffer from unlimited liability

Lack of continuity
Bound to pass poor decisions
Distinguish between the stakeholder and shareholders
 A shareholder is an owner of the business in a limited company who
assumes ownership by buying a share whilst a stake holder is
someone who has interest in an organization but is not an owner of
the business
24. Give 2 advantages of the following
Partnership
Advantages
 Effective management
 Sound capital base
 Development of close personal relationships
 Consultative decision making
 Care handling of financial affairs

Disadvantages

 Suffer from unlimited liability

 Decision making may be time consuming
 Lack of continuity
 Disagreements and conflicts may arise between partners
Public & public limited
Advantages
 Separate legal entity
 Limited liability of owners
 Easy transfer of ownership
 Greater financial capability
 Ability to fund innovations
 Customers feel reassured
Disadvantages
 Special and double taxation
 Costly to form
 Impersonality
 Inflexibility of size
 Disclosure requirements
 Bound by government regulations
Private business corporations (10)
Advantages
  Limited liability
 Easy to raise money
 Business conducted for mutual benefit of members
 Free to employee personnel with relevant qualifications
Disadvantages
 Difficulties in finding members who possess the much
needed skills
 Lack of commitment by some members
 Disagreements between members
25. Outline any 2 advantages and disadvantages of
partnerships.(4)
Outline the implications of the legal status for a company.(3)
26. Evaluate sole trader/proprietorship and partnership forms of
ownership.(20)
27. Compare and contrast private ltd companies and public ltd
companies.(20)
28. Giving examples, discuss factors that influence locations and
operations of business organizations in Zimbabwe.(20)
 Capital-amount to start the business
 Market- needs and preferences of customers
 Accessibility-network in terms of roads, rail, telephone
 Product/service being supplied-space needed
 Competitors-number of suppliers in the same area
 Size of the business
 Culture-values, beliefs and norms which affect consumption habits
and purchase behaviour
29. Name any four things that should be included in the
memorandum of association.(4)
 Company name
 Local of the company(physical and postal address)
 Minimum share capital to be raised
 How capital is raised
 Company colours and logos
 Areas of trade
 Expensive form of ownership to establish
  Postal decision-making authority-enjoys privacy
 No special legal restrictions-profits are not shared
 East to discontinue
30. Define management in its broad perspective.(3)
Management is a process of ensuring effective and efficient use of
organization’s financial and non-financial resources through planning,
organization, leadership and control
Briefly explain the elements of management.(12)

31. State and explain the principles of management.(4)

Planning

 results in business plans

 results in goals and objectives which show intended directors in terms
of desired performance
 results in specific course of action, which acts as a road map-work
towards achieving goals and objectives
 provide a basis or benchmark for measuring and evaluating process
during control process
 can be motivational if challenging objectives and strategies are set

Organizing

 Results in organizational structure

 Results In breaking down of workload into clear and simpler units
 It shows clear lines of authority and communication
 It shows allocation of resources
 It shows distribution of duties

Leadership

 Is the ability to influence others or a group towards the

achievement of set goals or desired objectives
 Results in motivational workforce
 Ensures efficient co-ordination of activities in an organization
 Improves manager-worker relations
 Can lead to increased productivity
 Control

 Results in establishes standards of performance

 Allows comparisons between planned performance and actual
performance
 Allows identifications of deviations from plan and taking corrective
action
31. describe and explain the main management
functions/elements/principles.(20)
32. what the 7p’s of marketing?(7)
 Product
 Price
 Promotion
 Place
 Physical evidence
 People
 Process
33. discuss the role of marketing in a small business(8)
34. state 5 roles of marketing an organization(5)
Roles of marketing
 Enable the firm to analyze the firm’s competitive situation
 Gives the organization a realistic appraisal of a market’s
potential and uncovered new opportunities
 Suggests alternative marketing strategies
 Coordinates the firm’s marketing weapons
 To increase sales
 Promote goods and services
 To provide information on demand, competition
 To satisfy customer’s needs or wants to accompany marketing
offering
Marketing definition
Is the process by which a business satisfies the needs of its
customers at a profit which satisfies its needs.

Elements of the decision process

a) Need identification-the individual senses a difference between his
actual and some desired state e.g. one feels hungry
b) Information search-the individual looks for information on what to buy
at what price and where to buy it
c) Evaluation of alternatives-here one evaluated products benefit the
brand image to arrive at a decision and brand choice
d) Purchase decision-the individual makes a decision to buy or not to
buy. The decision is determined by a combination of factors.
e) Post purchase behavior-our evaluation is influenced by our
expectations then the customer is delighted and this leads to repeat
purchase.