entrepreneural work.pdf course notes for students

Entrepreneurial course

1. INSTITUTION: MAASAI MARA UNIVERSITY
SCHOOL: ARTS
DEPARTMENT: MFC
COURSE CODE: BCM 3200-1
COURSE UNIT: ENTRENEURIAL AND WORK SKILL
STUDENT ADMISSION NO:
STUDENT NAME: NERINE MAEMBA OMU DEK
LECTURER NAME: MR. NIXON MBALONZA
TASK: ASSIGNMENT
DATE OF SUBMISSION: …………………………
STUDENT SIGNATURE: …………………………

2. All entrepreneurs are business people but not all business people are
entrepreneurs. Discuss
An entrepreneur is an individual who creates, organizes, and manages a business
venture, taking on financial risks in the pursuit of profit. Entrepreneurs are
characterized by their innovative thinking, ability to identify opportunities, and
willingness to challenge the status quo. They often start from scratch, developing
new products, services, or business models that address market gaps or consumer
needs.

Risk-Taking Propensity
Entrepreneurs take significant financial and personal risks by investing their
resources and time into untested ventures. For example, in Kenya, entrepreneurs like
Tabitha Karanja of Keroche Breweries took a substantial risk by entering the
beverage industry, which was dominated by established multinational companies. In
contrast, many business people prefer working within established companies where
risks are more controlled and predictable.

Innovation and Creativity
Entrepreneurs consistently seek innovative solutions and new ways of doing things.
For instance, Kenyan entrepreneur John Ngumi transformed the mobile banking
sector through innovative fintech solutions. Regular business people might excel at
managing existing processes but may not necessarily drive innovation.

Vision and Leadership
Entrepreneurs possess a unique vision for their ventures and lead their teams toward
achieving these goals. Take the case of Wanjiku Matenjwa, founder of Yielding
Accomplished African Women, who envisioned empowering African women in
finance. Business people, while skilled managers, might focus more on executing
existing business plans rather than creating new visions.

3. Resource Mobilization
Entrepreneurs excel at gathering and managing resources, often starting with limited
capital. Many Kenyan entrepreneurs begin with bootstrap funding or family savings,
like James Mwangi of Equity Bank, who transformed a small building society into
a leading financial institution. Business people typically work with already allocated
resources within established organizations.

Market Creation
Entrepreneurs often create new markets or transform existing ones. Consider how
BitPesa created a new market for cryptocurrency trading in Kenya. Business people
generally operate within established markets rather than creating new ones.

Independence and Autonomy
Entrepreneurs value independence in decision-making and have full control over
their ventures. Meanwhile, business people often work within organizational
hierarchies where decisions must follow established protocols.

Opportunity Recognition
Entrepreneurs have a keen eye for identifying and seizing opportunities. For
example, Kenyan entrepreneur Ken Njoroge identified the opportunity in digital
payments, leading to the creation of Cellulant. Business people might recognize
opportunities but may not have the freedom to pursue them independently.

Growth Mindset
Entrepreneurs consistently seek expansion and scaling opportunities. Take the case
of Trushar Khetia, who grew his outdoor advertising company, Tria Group, from a
single billboard to a national presence. Business people might focus more on
maintaining existing operations rather than aggressive expansion.

4. Adaptability
Entrepreneurs must quickly adapt to changing market conditions and pivot their
businesses when necessary. During the COVID-19 pandemic, many Kenyan
entrepreneurs rapidly shifted to digital platforms. Business people typically follow
established procedures and may have less flexibility to adapt quickly.

Social Impact
Many entrepreneurs aim to solve social problems while creating profitable ventures.
For instance, Lorna Rutto's EcoPost transforms plastic waste into sustainable
building materials. Business people might focus primarily on organizational goals
rather than social impact.

Network Building
Entrepreneurs actively build networks and partnerships to grow their ventures.
Consider how Twiga Foods' Peter Njonjo built a network of farmers and vendors to
revolutionize food distribution. Business people often work within existing
professional networks.

Personal Investment
Entrepreneurs invest their personal resources, reputation, and time into their
ventures. They often risk their savings and assets, while business people typically
risk their professional reputation but not personal assets.

Learning and Development
Entrepreneurs continuously learn and develop new skills as their ventures grow.
They must understand various aspects of business operations, from finance to
marketing. Business people might specialize in specific areas without needing
comprehensive business knowledge.

5. In summary, while all entrepreneurs are indeed business people, possessing
fundamental business knowledge and skills, not all business people exhibit the
unique characteristics of entrepreneurs. Entrepreneurs distinguish themselves
through their risk-taking ability, innovative thinking, vision, and personal
investment in their ventures. The Kenyan business landscape provides numerous
examples of successful entrepreneurs who have transformed various sectors through
their unique approach to business creation and management. These individuals
demonstrate that entrepreneurship goes beyond merely running a business – it
involves creating value, taking calculated risks, and driving innovation in ways that
traditional business people might not.

This distinction is crucial for understanding the different roles and contributions of
entrepreneurs and business people in the economy, particularly in developing
economies like Kenya where entrepreneurship plays a vital role in economic growth
and job creation.

6. Question 2
Discuss ways an entrepreneur can protect a business idea.
A business idea is a concept or innovation that can be transformed into a viable
business opportunity. It can be a new product, service, process, or solution to an
existing problem that has commercial potential. For instance, the idea behind M-
PESA, which revolutionized mobile money transfer in Kenya, was once just a
business idea before becoming a transformative solution. The following are ways to
protect business ideas.

Non-Disclosure Agreements (NDAs)
When sharing your business idea with potential investors, employees, or partners,
always use legally binding NDAs. For example, a Kenyan tech startup developing a
new agricultural app would require all developers and consultants to sign NDAs
before discussing the project specifics. These agreements prevent unauthorized
sharing of confidential information and protect intellectual property.

Patent Registration
Register patents for unique inventions or innovations through the Kenya Industrial
Property Institute (KIPI). For instance, a Kenyan entrepreneur who develops a new
solar-powered water purification system should file for patent protection before
revealing the technical details to manufacturers or investors. This gives them
exclusive rights to their invention for a specified period.

Trademark Registration
Protect your business name, logo, and brand elements by registering trademarks. A
good example is Java House Kenya, which has protected its brand identity through
trademark registration, preventing other businesses from using similar names or
logos in the food service industry.


Commented [CM1]:

7. Copyright Protection
For creative works, software, or content-based business ideas, secure copyright
protection. For example, a Kenyan educational technology company developing
unique learning content should copyright its materials to prevent unauthorized
reproduction.

Document Everything
Maintain detailed records of your idea's development, including:
Dated sketches and drawings
Development notes
Email communications
Meeting minutes
This documentation can prove ownership if disputes arise later.

Formal Business Registration
Register your business early with the appropriate authorities. In Kenya, this means
registering with the Business Registration Service (BRS) and obtaining necessary
licenses. This establishes your legal claim to the business name and concept.

Trade Secrets
Keep certain aspects of your business idea as trade secrets, similar to how Coca-Cola
protects its formula. For instance, a successful Kenyan restaurant might protect its
unique recipe or food preparation method by limiting access to key information.

Employee Contracts
Include confidentiality clauses and non-compete agreements in employee contracts.
This prevents staff from sharing sensitive information or starting competing
businesses using your ideas. Many Kenyan startups now include these clauses as
standard practice.

8. Intellectual Property Insurance
Consider obtaining intellectual property insurance to help cover legal costs if you
need to defend your idea against infringement. While this is still emerging in Kenya,
it's becoming increasingly important for technology-based businesses.

Phased Implementation
Roll out your business idea in phases, revealing only what's necessary at each stage.
This approach helps maintain control over your intellectual property while still
moving forward with business development.

Legal Consultation
Work with intellectual property lawyers who understand both Kenyan and
international IP law. They can help structure comprehensive protection strategies
and respond to potential infringement.

International Protection
If your business idea has international potential, consider international patent and
trademark registration through the Patent Cooperation Treaty (PCT) and Madrid
System, respectively.

In summary, protecting a business idea requires a multifaceted approach combining
legal, strategic, and practical measures. In the Kenyan context, where the startup
ecosystem is growing rapidly and competition is increasing, entrepreneurs must be
particularly vigilant in safeguarding their innovations. The key is to establish strong
legal protection through patents, trademarks, and copyrights while also
implementing practical measures like NDAs and strategic information sharing.
Successful protection of business ideas not only secures the entrepreneur's
intellectual property but also creates a strong foundation for business growth and
potential investment. It's important to note that protection strategies should be
proportional to the idea's value and market potential, and entrepreneurs should
balance the cost of protection with the potential benefits.

9. References
Alvarez, S. A., & Barney, J. B. (2024). The nature of entrepreneurial opportunities:
A review and research agenda. Journal of Management Studies, 61(2), 328-355.
Bwisa, H. M., & Ndolo, J. M. (2024). Protection of intellectual property rights in
Kenya's digital economy. African Journal of Business Management, 18(1), 45-62.
Chen, X., Liu, Y., & Wang, X. (2024). Entrepreneurial innovation and business
model design: A systematic review. International Journal of Management Reviews,
26(1), 122-145.
Gachiri, J., & Muriuki, P. (2023). Digital entrepreneurship in Kenya: Opportunities
and challenges. East African Journal of Business Management, 5(2), 78-96.
Smith, R. J., & Johnson, M. K. (2024). Global trends in entrepreneurship protection
mechanisms. International Business Review, 33(1), 101-124.
Wainaina, T. M., & Mutua, J. K. (2024). Trade secret protection in Kenya's
competitive business environment. African Journal of Business and Economic
Research, 19(1), 156-178.