DQM Basic Units
Entrepreneurship cheat sheet
Every chapter's key points, formulas and definitions on one page, for the last week before the exam. Each heading links to the chapter that explains it.
The entrepreneur
- An entrepreneur identifies a business opportunity, organises the capital, labour and materials needed to pursue it, and bears the risk of the venture; a manager runs an existing operation that he or she did not necessarily create or risk.
- Entrepreneurs contribute to national development by creating employment, generating tax revenue and export earnings, introducing innovation, using idle local resources and spreading the economy across regions.
- The five types of entrepreneur are told apart by behaviour: innovative (genuinely new), imitative (copies proven innovations), Fabian (adopts change only once its success is established), drone (resists even beneficial change) and social (a social or environmental mission alongside return).
- Entrepreneurship development is shaped by economic, social and cultural, political and legal, technological and psychological factors.
- Kenya's entrepreneurship culture has grown around the jua kali sector, mobile money and programmes such as the Youth Enterprise Development Fund and Ajira Digital, with affordable credit and formal registration the two most cited constraints.
Key terms
- Innovative entrepreneur
- Introduces genuinely new products, processes or methods.
- Imitative (adoptive) entrepreneur
- Copies and adapts innovations already proven elsewhere.
- Fabian entrepreneur
- Cautious, adopts change only once its success is already established.
- Drone entrepreneur
- Resists change even where it would clearly benefit the business.
- Social entrepreneur
- Pursues a social or environmental mission alongside commercial return.
- Economic factors
- Access to capital, market size, and the cost of doing business.
- Social and cultural factors
- Attitudes toward risk-taking, business and failure in a society.
- Political and legal factors
- Government policy, regulation, and the ease of registering a business.
- Technological factors
- Availability of infrastructure, skills and technology to exploit.
- Psychological factors
- An individual's own motivation, confidence and tolerance for risk.
The rest of the sheet covers
- Entrepreneurship and self-employment
- Business opportunities
- Business forms and finance
- Entrepreneurial motivation
- Innovative business strategies
- The business plan
- Exam technique and revision
- Glossary