CAT TWO:

a) Five major contributions of entrepreneurship to the economic development of Kenya.

b) Ten benefits of using technology for entrepreneurs and their businesses.
c) Five examples of market penetration strategies.

QUESTION A)

 Wealth creation and sharing: In Kenya, the general public benefits from the success of
entrepreneurs and growing businesses in a variety of ways, including availability of quality
products and even goodwill. Investors attract capital from the public when they invest their own
resources into an established business entity. The pooled capital is then used to create more
wealth to be distributed amongst the initial investors.
 Job creation: Most businesses are linked to each other, in the sense that when an entrepreneur
starts a business, he will have by extension, incentivized other entrepreneurs to close existing
market gaps. He/she also helps reduce unemployment in the country.
 Balanced regional development: Growth of industries, especially in rural/under-developed
areas, stimulates infrastructural development. Better telecommunication systems also develop
with increased demand for products in the given region.
 Standard of living: Entrepreneurs play a crucial role in increasing a community’s standards of
living by job creation and the adoption of innovations that increase life quality. A general
improvement in life quality is a reliable measure of Kenya’s economic development over a given
period.
 Exports: When entrepreneurs achieve monumental success in Kenya’s local market, they
become more likely to embrace globalization (cross border trade), a move which directly
increases export income.

QUESTION B)

 Work can be done from anywhere.

 Saving money.
 Challenges can be overcome more easily.
 Downsized workforce.
 Better organization and management.
 Targeted/focused marketing schemes.
 Networking.
 Completion of market research.
 Increased efficiency.
 Improved work/life balance.

QUESTION C)
 Adjustment of pricing: Holding factors such as quality and quantity constant (assuming them to
be same as the competitors’), lowering the price of your commodity is an easy way to maintain a
competitive edge.
 Increased promotion: Increased investment on marketing and advertising results in a
corresponding increase in the size of market share. The goal of promotion is to increase
customers’ awareness on/familiarity with the product. More often than not, customers will
select a product they feel more familiar with.
 Opening of new distribution channels: Opening distribution channels widens the market and
incentivizes loyalty from older customers. Geographical proximity to the target audience helps
attract potential customers who would have otherwise foregone the product, and eases access
to current customers (residing in and around the same location) as they no longer have to move.
 Product improvements: Tailoring products to meet the need of each consumer/resonating focus
is a sure way to retain a large size of the market share. Customers will naturally feel more
satisfied with, and make less complaints against, a product tailored for them, even when the
difference is minimal.
 Creation of a reward system/program: Coming up with a reasonable reward policy (one that
does not seem too one-sided), is perhaps the most cost efficient way to increase market share,
because it achieves the intended results (customer attraction and retention) while only
requiring a minimal initial investment from the company.