EXAMINATION

FACULTY OF BUSINESS AND MANAGEMENT

PROGRAMME(S):
ALL

SESSION: DAY/EVENING/WEEKEND

MODULE CODE AND TITLE: LEVEL:

2104 - ENTREPRENEURSHIP AND INNOVATION 1.1, 1.3, 2.1,2.3, 3.1,3.3 AND 4.1
DATE: TIME:
JANUARY, 2024 -----------

DURATION: TOTAL MARKS:

6 HOURS 100
EXAMINER/ LECTURER: MODERATOR:
MRS. KABUYE RACHEAL N DR. BILL NKEETO

INSTRUCTIONS TO THE CANDIDATE/ STUDENT

1. V-class is the ONLY official examination platform.
2. Questions must be attempted in the answer booklet/sheet provided on V-class.
3. All queries should be directed to the examiner, Head of Department, or Dean.
4. You have SIX HOURS to complete this paper. No exam answer sheet shall be accepted
after the 6 hours (the system has closed).
5. This is an OPEN BOOK (Online) examination.
6. Attempt 4 Questions in total. All questions carry equal marks (25 marks each).
7. Section A has TWO COMPULSORY case-based Questions and choose any 2 other
questions in Section B.
8. Read each question carefully before beginning to type/write your answers.
9. Review the grades assigned to each question of the examination and allocate your
time accordingly.
10. Review your answers carefully before submitting your examination.
11. After submitting your exam answer sheet, Cross-Check to ensure your examination was
attached and sent to V-class and received a confirmation message.

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 SECTION A (50 MARKS)- COMPLUSORY

BUDDING ENTREPRENUER
She Quit her job to venture into making Charcoal briquettes

After graduating with a degree in economics, Kyamulabi secured a job as an internal auditor
with the red cross. She however, quit the job to concentrate on making charcoal

When Magret Kyamulabi graduated with a degree in economics from Makerere university, she
immediately joined the Red cross as a volunteer. She was then promoted to the position of
internal auditor, but because of too much work involved, she quit and decided to venture into
making charcoal out of rubbish in Kagoma village wakiso district.

Kyamulabi sought the advice of a friend who was already making charcoal and earning good
profits. Her friend taught her how to make good charcoal that can compete with wood charcoal.
After the training, she secured the equipment to enable her start the business. However, she was
reluctant to employ many people because she had just stated and could not pay them. She
therefore, did everything with her family members.

“We used to make the briquettes with our hands and then put them under the sun to dry before
selling them to our customers”, Kyamulabi says. She says the business started picking up and she
employed four workers who help her run the business manually to produce the charcoal.

Kyamulabi has sensitized the local community about the need for rubbish- free environment and
has appealed to people to avail her with rubbish so that she can use it. She makes the briquettes
from all types of rubbish except plastic waste which she says does not make good charcoal.
Kyamulabi makes the briquettes by drying the rubbish and putting it in a char drum. She then
puts the drum on fire to carbonize and make it oxygen free so that during process, the rubbish
produces smokeless energy which is not harmful.

She adds that the filter also helps the rubbish not to burn to ashes, but rather get carbonize and
remain in its shape. A leaf remains a leaf but with a black colour.

After carbonization, the rubbish is removed, poured on a flat metallic pan where it is given time
to cool and then it is ground into smaller particles depending on the size of the briquette one
wants to make. After grinding it into small particles it is mixed with either clay or soil to act as a
filter. After this process, the mixture is poured into the machine which produces different size of
briquettes which are then dried in preparation for use.

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Kyamulabi still has issues with the market as the public has not yet embraced this type of
charcoal. They are more attached to charcoal made out of firewood. “This has created a need for
more sensitization which requires funds which are not readily available.”Kyamulabi notes. She
says labour is a challenge as she gets orders, but cannot hit the target because of the limited
labour force.

I have been able to relieve the stress of working in an office where you are answerable to your
boss in case things go wrong”, Kyamulabi says she also supplements her earning by training
those in making charcoal briquettes out of rubbish. The training is for three weeks and this has
improved my well- being as I do not wait for salary. At the same she is creating employment for
children around her village.

Required:

Refer to the entrepreneur above and answer the following questions.

Question One:

a) Write a standard essay, clearly bringing out the lessons that you draw from Kyamulabi’s
experience as an entrepreneur. (15 marks)

b) Assuming you started the same business as that of Kyamulabi, how would you run the
business using the knowledge that you have acquired for the time you have been at the
university. (10 marks)

Question Two:
a) In the same case, explain the personality traits exhibited by Kyamulabi as a budding
entrepreneur. (13 marks)
b) Explain the most and the least rewarding aspect of Kyamulabi as reflected in the case
above. (12 marks)

SECTION B- Select only TWO QUESTIONS

Question Three:
a) Examine the reasons for the too much attention paid to entrepreneurship in Uganda
especially at a tender age of secondary school and at universities today.
(15 marks)
b) Without a business plan, an entrepreneur is compared to someone moving to an unknown
far area without direction or a map. Examine the statement.
(10 marks)
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Question Four:
The extraction below relates to a projection made by Joseph on two business opportunities.
Study it and answer the questions that follow

Project X Project Y
Initial Investment 80,000 60,000
Period, 5 years 5years
Scrap Value 3,000 4, 000

Cash inflows
Year 1 2 3 4 5
Project X 20,000 30,000 40,000 6000 7000
Project Y 40,000 80,000 80,000 6000 5000

Present value factor @ 12%

i) Calculate the NPV and help Joseph make a decision on where to invest. (15
marks)
ii) Assuming Joseph does not agree with your decision, what factors would you
recommend him to consider as he takes on his own decision to invest in a given
business project? (10 marks)

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 Question Four:

Adrian, your friend has got two business ideas to which he intends to pick one to invest to
earn a living. See below:

Idea one:

To invest in a commercial Vehicle business (Tax, Matatu) It will cost Ugx 30 million. It will
consume 180, 000 Ugx monthly for service and maintenance.
It will consume 150, 000Ugx annually for third party insurance.
It will spend 200,000 Ugx monthly for park license and KCCA fees.
It will earn 150,000 Ugx daily after tax and revenue for 6 years.

Idea Two:
To buy land and construct rentals with a description of a duplex (Double – self-contained
rooms) This will cost her 200,000,000 Ugx to complete.
she will need to pay 150,000 Ugx for power, water and security per month.
She will need to pay 30,000 Ugx per month for garbage collection.
She will earn 400,000 Ugx per month per tenant.

Required:
Compute the pay Back Period for the two project ideas and take an investment decision to
take. Assuming that 2 and half years of breakeven are fair enough.
(25 marks)

………………SUCCESS………….