Addis Ababa University, College Of Business and Economics Department of Management 2023

Addis Ababa University

College of Business and Economics
Department of Management
Entrepreneurship for Freshman Group Assignment - 1
Instruction:

This continuous assessment is an individual assessment and must be prepared and responded
only by individual effort, therefore any sign of plagiarism (making direct copy pate) is strictly
prohibited and will not be tolerated which will result a dismissal of the whole work. Most probably
the assessment may cover the highest portion of your overall assessment.

Before you begin any task of the assignment you must read and really understand what the course
is about, how it is arranged, what objective it contain, what is planned to be attained and capture
the core content of the course.

While doing each assignment or exercise you should make sure that you are presenting clear,
readable, understandable, attractive, and coherent and harmonized answers.

Considering the arrangement and format of the assignment please refer to the format presented
herebelow, the format of your assignment must follow the following outline and guideline:

The assignment submission date is schedule to be on August 15, 2023, both the hard and soft copy
material must be submitted before August 15, 2023, 6:00 pm.

Guideline and Format of The Assignment

Format of the paper should follow the following
sequence:
▪ Cover page with title, department, course, section, instructor name, submission date, name
of group members (If any) and their ID number.
▪ Acknowledgement
▪ Table of content
▪ Abstract or executive summery
▪ Introduction
▪ Conclusion or summery of fundamental concept of the discussion
▪ Reference
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Addis Ababa University, College Of Business and Economics Department of Management 2023

General Word and Line Format

❖ Word type – time new roman

❖ Major title – word size - 16
❖ Sub title – word size - 14
❖ Main part – word size - 12
❖ Line space – 1.5
❖ Edge (right and left margin) – word default
❖ Submission of the work is through hardy copy as well as softy copy formats (the soft

copy need to be sent through E-mail (yalew.alemayehu@aau.edu.et)

Evaluation criteria
• Assignment mark/weight will cover the highest portion of you total continuous
assessment, it will be evaluated at individual performance level, evaluation include paper
work (content relevance, format, coherence, quality, clarity, completeness, Correctness,
attachments and reliability of source) and presentation (preparation, physical appearance,
verbal and non-verbal language, , delivery methodology and your response for questions
during the presentations)

• Completeness – your paper and presentation should contain all facts the reader or
listener needs for the reaction you desire.

• Conciseness - is saying what you have to say in the fewest possible words without
sacrificing the other quality of your work.

• Clarity - is making your receiver/reader understand what you are trying to convey and
interpret your words with the same meaning you have in mind

• Correctness - Use formal and standardized language, include correct punctuation,

capitalization, and syllabication, and include only accurate figures, facts and words.

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Addis Ababa University, College Of Business and Economics Department of Management 2023

▪ For any further Explanation, use the following Contact:

▪ yalew.alemayehu@aau.edu.et
▪ yalewalemayehu@yahoo.com
▪ You can also reach me through your class representatives and office consultation hour
(Every Wednesday (3:00 pm to 5:00 pm)

Chapter one

Exercise 1: Review Questions

Your explanation for the answer must be specific and clear, additionally the answer shouldn’t
exceed six lines.

1. Give at least two definitions for entrepreneurship and two for entrepreneur.
2. Who are the potential candidates for entrepreneurship?
3. Identify any five qualities of a successful entrepreneur
4. Some people argue that “the only beneficiary of the entrepreneurial wealth is the
entrepreneur him/herself” Do you agree? Why or why not?
5. How do you define creativity, innovation? Relate it with entrepreneurship.
6. Discus any four possible areas for innovation
7. How do you relate entrepreneurship and environment?

Chapter Two
Once you commence reading chapter two you will be able to understand the fundamentalconcept
of business planning and business plan, therefore herewith you will find attached cases that you
will be requested to provide concrete answer after you read the case thoroughly. Your explanation
for the answers must be specific and clear, additionally the answer shouldn’t exceed seven lines
for each case.

Exercise 1: Case Studies

Case 1: Janet’s Experience

Janet has a small farm and her husband works in a nearby mine, but even though both of them
have jobs, they do not earn enough money to pay for their children’s education. Janet decides to
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Addis Ababa University, College Of Business and Economics Department of Management 2023

try and start her own business by rearing chickens to sell. She knows how to do it and her uncle
gives her a loan of $400 to start the business. However, before she buys the chicks, someone tells
her that there is a huge demand for sunflower oil because of its lack of availability in the market.
Traders are knocking on the doors of local farmers asking them to produce it. Thinking she can
earn a lot more money from pressing sunflower seeds for oil, Janet changes her business idea and
starts an oil pressing venture.

Janet has never grown a large quantity of sunflowers. She spends all the money from the loan to
buy seeds, fertilizer and the oil pressing equipment. Since she uses most of the family farmland
to grow sunflowers, there is less land to grow maize and vegetables for the family to eat. The
chemicals from the fertilizer begin to make her children sick. She now has to buy more food for
the family. It takes a lot of time and effort to process the oil, so, Janet has to employ someone to
help her. A lot of other farmers have started growing sunflower seeds too. Therefore, by the time
her oil is ready to sell, the market is already saturated with the good and Janet cannot find a buyer.
To reduce her losses, Janet has to sell the oil at a very low price to a local shop. As a result, Janet
makes very little money and she is not able to pay back the loan.

Reflection question: What is wrong with Janet’s business idea? Why?

Case 2: Lily’s Experience

Lily had been working in the assembly line of a garment factory for more than five years. Her
salary was low and she was often required to work overtime. Lily’s sister-in-law came to visit
her and complained to Lily that she was unable to find any good clothes for her 12 year-old
daughter. She said that the clothes in the stores all seem to be either made for younger children
or for adults. After the visit, Lily decided to go around to the clothing shops in her town. She saw
young teenage girls shopping in the stores, but she noticed that the number and variety of clothes
geared to that age group was limited. She had already been thinking of quitting her job and opening
her own business. Therefore, Lily decides to design some pretty clothes and dresses for young
teenage girls. She makes some drawings of clothing that would appeal to that age group. She then
takes her drawings to the local clothing shops, asking the owners if they would buy the dresses in
the drawings, how much they would pay for them and how many they would buy. The shop owners
seemed to be quite happy with her designs and said they would display her clothes. Lily then uses
her savings to buy a sewing machine and some material to make her first batch. She works in the
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Addis Ababa University, College Of Business and Economics Department of Management 2023

evening after getting off from work at the garment factory. All of the dresses she makes sell very
well and the shops are willing to pay her in cash upon delivery. Lily then decides to quit her job to
focus on her own business. Within six months, Lily starts receiving regular orders from the shops.
She plans to buy one more sewing machine and hire one of her friends to work for her.

Reflection question: Why is Lily successful in her own business? What did she do that made
her successful?

Exercise 2: Think for a while about the best type of business you want to make as a group or
if you already have a business idea, describe your idea using the following form:

My business idea is:

............................................................................................................................................................
............................................................................................................................................................
............................................................................................................................................................
............................................................................................................................................................

Which need will my business fulfill?

............................................................................................................................................................
............................................................................................................................................................
............................................................................................................................................................
............................................................................................................................................................

What good/ service will I provide?

............................................................................................................................................................
............................................................................................................................................................
............................................................................................................................................................
............................................................................................................................................................

To whom will I sell?

............................................................................................................................................................
............................................................................................................................................................
............................................................................................................................................................
............................................................................................................................................................

How will I sell my good/ service?

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Addis Ababa University, College Of Business and Economics Department of Management 2023

............................................................................................................................................................
............................................................................................................................................................
............................................................................................................................................................
............................................................................................................................................................

How much will my business depend upon and impact the environment?

............................................................................................................................................................
............................................................................................................................................................
............................................................................................................................................................
............................................................................................................................................................

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Addis Ababa University, College Of Business and Economics Department of Management 2023

Exercise 3: Choosing among Business Ideas

Think about three type of business idea that you might do if you have required supplies and based
on the format provided here below make analysis in order to choose the most doable type of
business, the procedure to select the best is based on the format provided in the following
discussion, therefore following the attached format present your three business idea and finally
select the one with the highest score.

1) Scoring the Suitability of Business Idea:

This approach is most appropriate when deciding on starting a business. When there are more than
one possible business ideas and one needs to decide which one to follow, we use score business
ideas (e.g., BI1, BI2, BI3) by assigning a rating from 1 to 3 for each question, with 3 being the
strongest. After we score the ideas we sum the total and select the idea with the highestscore.

S. No Questions BI1 BI2 BI3

1. Are you familiar with the operations of this type of business?

2. Does the business meet your investment goals?

3. Does the business meet your income goals?

4. Does the business generate sufficient profits?

5. Do you feel comfortable with the business?

6. Does your family feel comfortable with the business?

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Addis Ababa University, College Of Business and Economics Department of Management 2023

7. Does the business satisfy your sense of status?

8. Is the business compatible with your people skills?

9. Is there good growth projected for the overall industry of the

business?

10. Is the risk factor acceptable?

11. Does the business require long hours?

12. Is the business location-sensitive?

13. Does the business fit your personal goals and objectives?

14. Does this business fit your professional skills?

Totals

Exercise 4: Business Ideas Analysis Form

(Based the analysis you made on Exercise 3 of chapter two you need to write the information of
that particular business idea (the best and highest scorning business idea) in the following form
which is known as business idea analysis form)

Name of business:
Goods or services to be sold:
Main customers:
When and why did the owner decide to start this business?

Why did the owner think it was a good idea to start that kind of business?

How did the owner learn what his potential customers wanted?

What strengths or assets did the owner use to start this business? (E.g., previous experience,
training, family background, contacts, hobbies)

What problems did the owner face in setting up the business?

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Addis Ababa University, College Of Business and Economics Department of Management 2021

Has the business good or service changed over time?

What is the impact of the business on the natural environment and the community?

Notes:

Chapter Three

Exercise 1: Review Questions

Refer to your handout, PPT and books provided on the reference part of your course outline, then
answer the following questions, while responding each question you need to be specific, concise
and complete more your response shouldn’t exceed five lines unless it is found to be realistic and
more important.

1. How would you define small business?

2. Name a company that seems large but might be classified as small because it has relatively little
impact on its industry.
3. Why are small businesses more likely than large businesses to be innovative?
4. How would you show that small business is becoming a more important part of the economy?
5. We compared the failure rate for small businesses with the divorce rate in marriage and the
student failure rate in college. Are these fair comparisons?
6. Describe four causes of small business failure.
7. How does the quality of management relate to each of these causes?
8. Describe the techniques that a business with which you are familiar has used to prevent its
failure.
9. Predict the future of small business. In what industries will it be most involved? What trends do
you foresee? Will the failure rate go up or down? Will the importance of small business increase

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or decrease by the year 2030?

Chapter Four
Exercise 1: Review Questions

Refer to your handout, PPT and books provided on the reference part of your course outline, then
answer the following questions, while responding each question you need to be specific, concise
and complete more your response shouldn’t exceed five lines for each question unless it is found
to be realistic and more important.

1. What advice would you give to a business colleague who is about to start a new high-tech firm
that has developed a new accessory for computer tablets? Would you recommend that s/he
seek a patent immediately?
2. Imagine that you have developed a unique formula for a soft drink that, upon entering a
person’s mouth, analyzes the drinker’s DNA to determine his/her favorite flavor, and then
the drink instantly realigns its chemical composition become that flavor. Describe as how
you can best protect this trade secret? Will you patent it? Why or why not?
3. What factors should s/he consider in the process of debating whether a patent would be
appropriate?
4. What rights does owning a patent protect? How do you get this protection?
5. What tests must an invention pass to receive a patent?
6. What is the difference between a copyright and a trademark? Between a trademark and a
brand?
Chapter Five

Once you read the chapter five of your handout you will be capable to understand the basics of
utility and their types, on base of your understanding you need to answer the following questions
which is based on your real experience and feeling, therefore here you are recommended to
consider your buying experience. Your answer muse be synthesized and filtered to fit with the
space provided.

Exercise 1:
Think of a recent purchase you made, what did you purchase? How did the company provide you
with the following utilities?
What is the product you bought Product:

Form:
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Addis Ababa University, College Of Business and Economics Department of Management 2021

Time:

Place:

Ownership:

Exercise 2: Practical Activity on Marketing

Take a moment to realize your day to day activities, make your focus on your buying and
purchasing activity, imagine what you actually do whenever you think to buy a product and tryto
put them in coherence (Stepwise arrangement). Using your reference material or your searching
engine (Google.com) find major steps of making purchase ( individual costumer purchasing
process) and make comparison with your previous purchasing experience, finally write-down
major steps of purchasing you found from your reference.

Refer to your handout, PPT and books provided on the reference part of your course outline, then
answer the following questions, while responding the above question you need to be specific,
concise and complete more your response shouldn’t exceed seven lines unless it is found to be
realistic and more important.

Exercise 3: Review Questions

Refer to your handout, PPT and books provided on the reference part of your course outline, then
answer the following questions, while responding each question you need to be specific, concise
and complete more your response shouldn’t exceed five lines unless it is found to be realistic and
more important.

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Addis Ababa University, College Of Business and Economics Department of Management 2021

1. Define the term marketing? And explain the core concepts of marketing?
2. Identify and explain briefly the marketing philosophies?
3. Identify at least three distinctions between marketing and selling.
4. Discuss the importance of marketing Intelligence?
5. Discuss how to reduce customer dissatisfaction

Chapter Six

Exercise 1: Review Questions

Refer to your handout, PPT and books provided on the reference part of your course outline, then
answer the following questions, while responding each question you need to be specific, concise
and complete more your response shouldn’t exceed five lines unless it is found to be realistic and
more important

1) List and elaborate capital requirements for long-term, medium term and working capital.
2) Identify the common internal and external sources of finance and which of these sources are
commonly used in your locality. Discuss this with the closer business operator in your locality.
3) Getting loan from commercial banks is more challenging. Elaborate and state the requirement
that banks request to provide loan.
4) Explain the pros and cons of lease financing to the lesser and the lessee.
5) Elaborate the traditional financing system is Ethiopia emphasizing their contribution to
community.
6) Elaborate the feasibility and applicability of crowd funding in Ethiopia.
7) Micro finances in different regions of Ethiopia are established with the mission of supporting
the poor. Evaluate.

Chapter Seven

Refer to your handout, PPT and books provided on the reference part of your course outline, then
answer the following questions, while responding each question you need to be specific, concise
and complete more your response shouldn’t exceed five lines unless it is found to be realistic and
more important.

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Addis Ababa University, College Of Business and Economics Department of Management 2021

Exercise 1: Review Questions

1. Conduct interview with business owner such as Café or Restaurant around

your locality.What are the challenges for growth of his/her business?
2. For corporate advocates of the specific CSR theory, what are the
responsibilities thecorporation holds, and how are conflicts between those
responsibilities managed?
3. Create a hypothetical situation in which philanthropy would not be required
of acorporation by CSR theory.
4. What does sustainability mean within each of the three columns of the theory
of the triplebottom line?
5. How does the fair trade movement fit together with the triple-bottom-
line theory ofcorporate responsibility?
6. Who are the stakeholders in stakeholder ethics?
7. What does it mean for a corporate director to “balance stakeholder interests”?
8. What basic elements do CSR, the triple bottom line, and stakeholder
theory have incommon?
9. What do you want to say about the ethical practices of business around your
community?Why?

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Addis Ababa University, College Of Business and Economics Department of Management 2021

Addis Ababa University

College of Business and Economics
Department of Management
Entrepreneurship for Freshman Group Assignment - 2
Guideline and Format of Group
Assignment

Format of paper should follow the following

sequence:

▪ Cover page with title, department, course, section, instructor name, and
submission date, nameof group members (If any) and their ID number and
section.
▪ Acknowledgement
▪ Table of content
▪ Abstract or executive summery
▪ Introduction
▪ Conclusion or summery of fundamental concept of the discussion
▪ Reference
General Word and Line Format

❖ Word type – time new roman

❖ Major title – word size - 16
❖ Sub title – word size - 14
❖ Main part – word size - 12
❖ Line space – 1.5
❖ Edge (right and left margin) – word default
❖ Submission include through hardy copy as well as softy copy (the soft
copy need to besent through E-mail

(yalew.alemayehu@aau.edu.et)

Evaluation criteria
• The assignment page shouldn’t exceed 18 page, you are expected to revise the
content with the specified page limit.
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Addis Ababa University, College Of Business and Economics Department of Management 2021

• Assignment mark/weight will cover the highest portion of your total continuous
assessment, it will be evaluated as a group performance, evaluation include paper
work (content relevance, format, coherence, quality, clarity, completeness,
Correctness, attachments and reliability of source) and presentation (preparation,
physical appearance, verbal and non-verbal language, , delivery methodology and
your response for questions during presentations)

• Completeness – your paper and presentation should contain all facts the
reader orlistener needs for the reaction you desire.

• Conciseness - is saying what you have to say in the fewest possible

words withoutsacrificing the other quality of your work.

• Clarity - is making your receiver/reader understand what you are trying to

convey andinterpret your words with the same meaning you have in mind.
• Correctness - Use formal and standardized language, include correct punctuation,
capitalization, and syllabication, and include only accurate figures, facts and words.
• Group members shouldn’t exceed 5 members
• Topics and chapters to be covered are;
Group Assignment – I Chapter Four: Product and service developments

▪ 4.1. The Concept of product or service technology

▪ 4.2. Product or service development Process
▪ 4.3 Legal and regulatory frameworks
▪ 4.4 Intellectual Property Protection/Product or service protection
▪ 4.4.1 Patent
▪ 4.4.2 Trademarks
▪ 4.4.3 Copyrighting
▪ 4.4.4 Trade Secret
▪ 4.4.5 Counterfeit Product

Group Assignment – II Chapter Six: Financing the new venture

▪ 6.1 Overview of Business Financing

▪ 6.2 Source of financing
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Addis Ababa University, College Of Business and Economics Department of Management 2021

▪ 6.2.1 Equity financing

▪ 6.2.2 Debt financing
▪ 6.2.2.1 Trade credit
▪ 6.2.2.2 Lease financing
▪ 6.3 Traditional Financing (Equib/Edir, etc.)
▪ 6.4 Crowd Funding
▪ 6.5 Micro finance in Ethiopia
Additional points;

▪ Submission of the work is through hardy copy as well as softy copy formats
(the soft copy need to be sent through E-mail

(yalew.alemayehu@aau.edu.et)

▪ The assignment submission date is schedule to be on August 15, 2023, both

the hard and soft copy material must be submitted before August 15, 2023,
6:00 pm.
▪ Submit the complete assignment for the class representative before August 15, 2023, so that
the class representative can make the final submission for the instructor.

Thank You for Your Time, and

Commitment!

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