Entrepreneurship and Economic Development Quiz

Entrepreneurial Ecosystem

• A system that supports entrepreneurship is composed of local & global markets, government policy, regulatory framework, infrastructure, human capital, workforce, education & training, universities as catalysts, mentors, advisors, support systems, funding & finance, and culture.

Ministry of Science and Higher Education (MoSHE)

• Prepared by Bantie Workie (PhD), Mulugeta Chane (MBA), Mustefa Mohammed (MBA), and Teshale Birhanu (PhD).
• Addis Ababa, Ethiopia
• September 2019

Contents (Chapter 1: The Nature of Entrepreneurship)

• Introduction: discusses entrepreneurship in everyday conversation and technical context of management and economics.
• Historical Origin of Entrepreneurship: describes the word entrepreneur in ancient times, 17th century, 18th century, and 19th/20th century.
• Definitions of Entrepreneurship and Entrepreneur: defines entrepreneurship as the process of creating something different and better with personal satisfaction. Also, defines entrepreneurship in terms of the actions of the entrepreneur in particular projects.
• Roles of Entrepreneurs in Economic Development: entrepreneurs are important for industrial development, generating jobs, increased income and revenue.
• Entrepreneurial Competence and Environment
• Entrepreneurial Mindset
• Qualities of an Entrepreneur: important qualities include opportunity seeking, persevering, risk taking, demanding for efficiency and quality, information-seeking and goal-setting, persuasion and networking, and building self-confidence.

Contents (Chapter 2: Business Planning)

• Introduction: addresses opportunity identification and evaluation, business idea development, and business plan preparation.
• Opportunity Identification and Evaluation: outlines steps in identifying and evaluating opportunities in a market; scanning the environment, identifying, developing, evaluating, and evaluating the team.
• Opportunity Identification: discusses how to discover and identify opportunities.
• Opportunity Development: process of adapting a recognized opportunity to meet actual market needs.
• Opportunity Evaluation: critical steps in evaluating a potential business idea, including risk assessment, return potential, and competitiveness.
• Business factors and questions for opportunity evaluation(tabulated): Business factor (product or service, market opportunity, costing and pricing, profitability, and capital requirements) and corresponding evaluation questions.
• Assessment of Entrepreneurial Team (tabulated)
• Business Idea Development: details steps in finding a business idea.
• Business Idea Identification: provides cases on business idea situations.
• Methods for Generating Business Ideas: Includes brainstorming, free association, and problem-solving techniques.
• Business Idea Screening: describes screening steps for choosing a potential business venture.
• Concept of Business Plan & Business Planning Processes: discusses business plans as a roadmap for a business, covering its components like cover sheet, executive summary, business description etc.

Contents (Chapter 3: Business Formation)

• Introduction: discussing business development, legal forms, and the importance of Micro, Small Enterprises (MSEs) in Ethiopia and globally
• Definition of Small Businesses: including descriptions and characteristics of small firms by size criteria vs. economic control criteria.
• Forms of Business Ownership (proprietorship, partnership, corporation) and explaining their characteristics.
• Role and Importance of Micro, Small Enterprises (MSEs) in Developing Countries: discusses the role in the economy and for the individual.
• Organizational Structure and Entrepreneurial Team Formation: discusses building management teams and developing organizational cultures.
• Main Supporting Packages for MSEs Development in Ethiopia: details of support packages for entrepreneurs in Ethiopia
• Problems of small scale business in the Ethiopian context
• Chapter Summary: reviews the challenges of starting small businesses in developing countries like Ethiopia

Contents (Chapter 4: Product/Service Development)

• Introduction: describes the process of product development
• Concept of Product/Service: identifies and describes the characteristics of products and how those elements provide customer satisfaction.
• Product/Service Development Process: describes steps in the process of developing new products.
• Intellectual Property Protection: explains forms like patents, trademarks, and copyrights in relation to product and service development.

Contents (Chapter 5: Marketing)

• Introduction: definitions of marketing, activities and their goals.
• Meaning and definitions of Marketing: discusses different perspectives by various authors on the concept of marketing and exchange.
• Core Concepts of Marketing: includes needs, wants, and demands; products; value; cost; transactions and relationships; markets; and marketers/prospects.
• Marketing Philosophies: discusses different marketing concepts and their practical strategies in the market (production concept, product concept, selling/sales concept, the marketing concept, the societal marketing concept).
• Marketing Information Systems: describes the role of information systems in marketing decision-making.
• Marketing Research: explains systematic and objective techniques for gathering, collecting, and analyzing information about the market, customers, and competition. Includes tasks of gathering, sorting, analyzing, and evaluating data.
• Marketing Intelligence: describes the use of information systems for competitive analysis.
• Competitive Analysis: defines competition and the need for competitive analysis (identifying competitors, gathering info on competitors, analyzing competition).
• Marketing Mix / 4 P's: outlines the core elements of marketing strategy (Product, Pricing, Place, Promotion)
• Marketing Strategy as a Process: analyzes how to develop marketing strategies that increase sales.

Contents (Chapter 6: Business Financing)

• Introduction: identifies the different reasons for sourcing funds for business activities including capital assets and working capital.
• Financial Requirements: categorizes funding methods into permanent capital, working capital, and asset finance.
• Sources of Financing: identifies internal and external sources of finances
• Permanent capital: funding from personal savings, friends/relatives, partners, public stock, angel investors, and venture capital companies
• Leasing Financing: explaining finance and operating leasing
• Micro-Financing: discusses microfinance institutions in Ethiopia.
• Traditional Financing: identifies traditional forms of financial practices including Idirs and Iqubs in Ethiopia.
• Crowd Funding: details advantages and types (donation-based, reward-based, equity-based).

Contents (Chapter 7: Managing Growth and Transition)

• Introduction: discusses managing growth and transition for an organization.
• Timmons Model of Entrepreneurship: discusses elements like identifying opportunities, building a team, and managing resources
• New Venture Expansion Strategies: discusses methods such as market penetration, market development, product development, and diversification.
• Business Ethics and Social Responsibility: describes different ethical approaches to business, including stakeholder theory and the triple bottom line. Includes discussion on ethical principles.