Module 1

Question 1

Define an entrepreneur in your own words.

Answer 1

An individual who identifies opportunities, takes calculated risks, and creates a business to solve problems or meet market demands for profit.

Question 2

Contrast Schumpeter’s and Drucker’s theories of entrepreneurship.

Answer 2

• Schumpeter: Focuses on innovation and ‘creative destruction’ (e.g., replacing landlines with smartphones).
• Drucker: Emphasizes customer needs (e.g., creating affordable laptops for students).

Question 3

Which entrepreneur type would describe Elon Musk? Justify.

Answer 3

Serial entrepreneur – founded multiple ventures (Tesla, SpaceX, Neuralink).

Question 4

Match the entrepreneur type to the scenario: Nascent, Social, Lifestyle. Scenarios: a) Opens a vegan café to promote sustainability. b) Uses savings to launch a freelance graphic design business. c) Runs a yoga studio to balance passion and income.

Answer 4

• a) Social (sustainability mission).
• b) Nascent (personal funds, early stage).
• c) Lifestyle (personal enjoyment).

Question 5

Identify two external drivers of entrepreneurship and give examples.

Answer 5

1. Technology – e.g., app developers using AI tools.
2. Globalization – e.g., Etsy sellers reaching international markets.

Question 6

List three entrepreneurial characteristics and explain how each helps in business.

Answer 6

1. Innovative – Differentiates from competitors (e.g., Dyson’s bladeless fans).
2. Risk-Taker – Pursues high-reward opportunities (e.g., investing in cryptocurrency early).
3. Persistent – Overcomes failures (e.g., Colonel Sanders’ 1,000+ rejections before KFC success).

Question 7

Debunk the myth: ‘Entrepreneurs must have a college degree.’

Answer 7

False – Many successful entrepreneurs (e.g., Richard Branson, Steve Jobs) dropped out or were self-taught.

Question 8

Arrange the business startup steps in order: Resource Acquisition, Idea Generation, Implementation, Opportunity Recognition.

Answer 8

1. Idea Generation → 2. Opportunity Recognition → 3. Resource Acquisition → 4. Implementation.

Question 9

Which idea-generation method would best validate demand for a new fitness app? Why?

Answer 9

Focus groups – Direct feedback from target users reveals pain points and willingness to pay.

Question 10

Compare angel investors and bank loans as funding sources.

Answer 10

• Angel Investors: Provide capital + mentorship but may take equity.
• Bank Loans: Require repayment + interest but retain full ownership.

Question 11

Case Study – Airbnb recognized the opportunity in ‘expensive hotels + unused homes.’ Which entrepreneurial process step does this illustrate?

Answer 11

Opportunity Recognition – Identifying a gap in the market.

Question 12

What distinguishes an intrapreneur from an entrepreneur?

Answer 12

Intrapreneurs innovate within existing companies (e.g., Google employees developing Gmail), while entrepreneurs start independent ventures.

Question 13

A student claims, ‘Social entrepreneurs can’t be profitable.’ How would you respond?

Answer 13

Counterexample: TOMS Shoes (donates shoes per purchase) achieved profitability while addressing social needs.

Question 14

Why might demographic changes drive entrepreneurship in Jamaica?

Answer 14

Aging population → demand for elder care services, creating business opportunities (e.g., home healthcare startups).