Entrepreneurship: Theories, Business Plan and Impact of Jeff Bezos, Bill Gates and Mark Zuckerberg

Running head: ENTREPRENEURSHIP
Entrepreneurship
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Executive summary
The main purpose of this report is to enhance readers’ knowledge on theory of entrepreneurship,
innovation, and economic development. It additionally helps to enhance knowledge on how to
craft a business plan. The first assignment discusses the theory of entrepreneurship whereas the
final project is about a business plan on Safaricom.

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Table of Contents
Assignment 1 - Theories of Entrepreneurship.................................................................................3
1. Theory chart on entrepreneurship, effective innovation, and economic development by
selecting three different articles...................................................................................................3
Entrepreneurship......................................................................................................................3
Effective Innovation................................................................................................................4
Economic Development...........................................................................................................4
2. Preparing a report on three entrepreneurs in relation to their effort and impacts on socio-
cultural and economic development locally or globally, and their similarities and differences
as entrepreneurs. With examples.................................................................................................5
References......................................................................................................................................10
Final Project - Develop a Business Plan of introducing a completely new product in the market13
1. Company description.............................................................................................................13
2. Market analysis - research on the industry, market, and competitors...................................13
3. Organization and management - the business and management structure............................17
4. Service or product..................................................................................................................19
5. Marketing and sales...............................................................................................................19
6. Funding request for next 3 to 5 years....................................................................................20
7. Financial projections - information like balance sheets........................................................21
References......................................................................................................................................24
Appendix........................................................................................................................................26
1. Entrepreneurship....................................................................................................................26
2. Effective Innovation..............................................................................................................27
3. Economic Development.........................................................................................................28

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Assignment 1 - Theories of Entrepreneurship
1. Theory chart on entrepreneurship, effective innovation, and economic development by
selecting three different articles
Entrepreneurship
(See Appendix 1 for a diagrammatical explanation of the theory)
The theory of entrepreneurship as stated above highlights a “Two-Stage Value Creation
Framework”. The two stages are “Venture Formulation” and “Venture Monetization”. At the
venture formulation stage, an entrepreneur gets filled with desires to utilize the available
resources to leverage the entrepreneurial opportunities. The entrepreneur at this stage possess a
sufficient understanding of the business opportunities. However, there are several ventures,
which fail at this stage.
At the venture monetization stage, the entrepreneur needs investors to show their interest
in the project. This is why entrepreneurs look to going for a strategic alliance with the others.
However, investors at this point in time face the challenge of selecting the potential
entrepreneurs from the list of entrepreneurs. It is because the venture quality and entrepreneurial
ability becomes difficult to ascertain. Form the entrepreneurs part, they may use incentive signals
to secure the deal and ensure a higher valuation offer from the selected investors. It is, therefore,
recommended for entrepreneurs to design and follow a business model with embedded dynamic
capabilities. This will help to reconfigure the entrepreneurial competence, which is necessary to
produce sustained value.
(Mishra & Zachary, 2015)

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Effective Innovation
(See Appendix 2 for a diagrammatical explanation of the theory)
The Capital Theory of Effective Innovation says that individuals within a firm may or
may not have the sufficient knowledge resources. It is very common with smaller firms. Such
firms may not be able to innovate or sustain the innovation as they are easily vulnerable to
external threats like increased market competition, and growing technological advancement.
However, the theory identifies a way out to knowledge management issues in organizations,
which is in particular with smaller firms. The theory thus says that “Social Capital” can help to
repair the existence of insufficient knowledge in organizations. It recommends a co-operative
network, particularly to smaller firms. A co-operative network can be formed and attained
through collaborations, and exchange of knowledge by opting to R&D activities, strategic
alliances, and joint ventures.
(Glover et al., 2016)
Economic Development
(See Appendix 3 for a diagrammatical explanation of the theory)
The Theory of Economic Development as stated by Schumpeter describes the economic
development in four features.
Circular Flow: Schumpeter states that economic activity follows a cyclical path as that of
blood circulation in a human body. It means this will continue to happen and the concerned
business will need to be adaptable with it to attain a sustainable business. However, the circular
flow is static in nature, which can be made dynamic by using the innovations.