MGMT210: Entrepreneurial Mindset Case Study Analysis - Kenya

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Case Study
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This case study analyzes the role of women entrepreneurs in Kenya's solar lighting project, focusing on their contribution to resolving the electricity shortfall. The analysis covers their entrepreneurial characteristics, the importance of their skills (including sales, management, and networking), and the business model's innovation. The study also examines the challenges faced by these entrepreneurs, particularly in raising capital, and suggests potential solutions. The case explores the entrepreneurial 5Ps, the applicability of the seven-journey concept, and the impact of the Last Mile Entrepreneurs Program. The study provides insights into the effective product mix, the importance of persistent, practicing, and patience, and recommendations for scaling the business and empowering women in the context of the bottom of the pyramid (BoP). The study is based on the MGMT210 module and aims to understand the entrepreneurial mindset.
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RUNNING HEAD: ENTREPRENEURIAL MINDSET
Management
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ENTREPRENEURIAL MINDSET 1
Case study analysis
The following are reasonable solutions to the questions based on the case study.
Q1. From the facts given in the case, it is analyzed that women entrepreneurs in Kenya
performed a significant role in resolving the electricity shortfall. They have laid active
participation in the program that mainly features skill development and market entrance. In the
exhibition developed by Lighting Africa Kenya, women entrepreneurs have networked well with
the suppliers. This activity has helped them to gain entry into the market. As they were women,
they have been successful in reaching a large number of female customers. Moreover, their
contribution to business operations, marketing and record-keeping also attain a major role. Thus,
it has removed the major hurdles and has allowed them to make required solar products to
resolve electricity shortfall.
From my perspective, it is analyzed that besides other women in Kenya, female entrepreneurs
also used to face issues regarding health because of the usage of kerosene and biomass energy
sources. Facing such issues has developed a need among them to look for an opportunity to
search for an alternate solution. Thus, by raising a need they have ultimately performed a major
role in resolving the electricity shortfall.
Q2. Firstly, they attain the entrepreneurial characteristic of opportunity seeker. Despite being
depressed about the issues, they have looked for an opportunity in the environment (David &
Koch , 2019). They have laid active participation in the training and mentorship program.
Through their activity, they have gained the trust of the customer. Additionally, they have
networked with consumers. Female entrepreneurs have given due consideration to their concern
regarding finance. They have assisted them in their financial planning and provided them access
to the self-help groups. It has ultimately resulted in raising more customers. Thus, they have the
capability of turning any situation into an opportunity.
The entrepreneurs knew the skill of networking (Price , 2013). They have offered various sample
products based on lighting. Because they knew how to network, they have successfully
networked and form a linkage with the suppliers. This activity has helped them to established
footprints in the market. Lastly, female entrepreneurs attain the characteristic of decision-makers.
To increase the market access they have generated demand for solar products. Thus, they have
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ENTREPRENEURIAL MINDSET 2
initiated their market at the micro-level. Despite the above characteristic, their hard work and
dedication have resulted in the success of solar lighting project in Kenya.
The entrepreneurial characteristics of being an opportunity seeker, knowing the art of networking
and quick decision-maker attain a major role in providing success to the entrepreneur. Being an
opportunity seeker allows the entrepreneur to look for opportunity everywhere in the
environment. Knowing the art of networking allows entrepreneurs to collaborate successfully
with the people and customers. Moreover, the quality of being a quick decision maker allows the
entrepreneur to save precious time and successfully grab the opportunity at the right time (Jansen
et al., 2018).
Q3. After assessing the business environment and limitations in Kenya, it is analyzed that they
are facing issues with respect to electricity. About 30% of the population has no access to
electricity. In order to sustain their living, they rely on kerosene and other fuels. This gave rise to
severe health issues resulting in the death of four million people every year. Moreover, women
have to contribute high amount of time to obtain energy resources. Thus, it develops the need for
initiation of solar products in Kenya. However, to facilitate the commercialization of the value
offered via solar products. In order to develop effective product mix, solar products should be
developed in large quantity, as it will directly reduce the overall production cost. This will allow
the entrepreneurs to charge fewer prices from the customers. Additionally, their solar products
should sustain for an adequate period. A high emphasis should be laid on preparation of the solar
products. It must not include any form of energy and element that will affect the health status of
the individual. Thus, all these aspects will aid in developing an effective product mix. Moreover,
it will assist in raising the value of the solar product among the customers.
Q4. As per the given case, Business management, communication, record-keeping and
Networking are the major skills that were needed by the women entrepreneurs to enable them to
engage in the program. All these skills attain a major role in the program and inadequate
knowledge in any of these skills can lead to poor impacts. This is because; poor management
skills can disturb the whole activities. Moreover, without effective communication, the women
entrepreneurs will not be able to describe their solar products accurately to the suppliers. Poor
knowledge in record keeping will disturb the financial transactions. Without proper networking,
they will not be able to get a chance for market access.
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ENTREPRENEURIAL MINDSET 3
From the given case, it is acknowledged that a Sales skill is a vital capability for a woman
entrepreneur in commercializing solar products. This is because female entrepreneurs attain the
quality to reach more consumers. It is analyzed that the female customers in their cooking
purpose mainly required solar products. Thus, this makes it easy for female entrepreneurs to
attract customers, as they are also mainly female (80%). Additionally, before emerging as an
entrepreneur, these females also used to face similar issues based on heath and cooking practices.
Thus, they have acknowledged the problems and therefore they can market their solar products
better to the customers.
Q5. The bottom of the pyramid states the distribution of people as per the wealth and income
level (Long & Janda , 2019). In Kenya, a major share of the population forms the part of the
lower bottom of the pyramid. With respect to entrepreneurial 5Ps, it is examined that Persistent,
practice and patience are the key elements that determine the success of female entrepreneurs.
The entrepreneur should be persistent in its work practice. They should deliver continuous hard
work in their solar product business. They should practice their work. It suggests that they should
become highly efficient in bookkeeping, marketing and business process management. This
practice will enable them to generate work that is free from mistakes and errors. Lastly, they
should have patience to achieve success. This states that women entrepreneurs in Kenya should
lay patience. It is the ability to accept problems without being annoyed. Attaining high degree of
patience is worth because it develops positivity. Thus, it becomes mandatory for the female
entrepreneurs to develop patience, as it will help them to cope up with the adverse business
conditions. It will be able to However, it should not develop patience while marketing and
performing other business functions. It should be applied while waiting for success of solar
products in Kenya.
Q6. As per the problems faced by female entrepreneurs, one of their biggest challenges was
raising capital. They attain affine demand for their solar products but still they were facing this
issue. This is because, their customers mainly purchase products on credit. Thus, to minimize the
challenge faced by the entrepreneurs, they have to lay attention to the marketing strategy of solar
products. In order to lower the credit transactions, the entrepreneurs should give attractive
discounts, offers on cash transactions. This strategy will develop a force among the customers to
opt for cash transactions to retain the benefits of attractive offers. To avail more cash
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ENTREPRENEURIAL MINDSET 4
transactions, female entrepreneurs should lay more focus on providing its customers with access
to self-help groups to raise funds. It is analyzed that by removing the use of kerosene, customers
are saving around $10 a month. Thus, they should be motivated to invest these savings in solar
products and avoid the credit purchase.
Additionally, the entrepreneurs should ask for financial assistance from the government as they
are offering a solar product that will ultimately improve the life and health status of the Kenya
population.
However, entrepreneurs can also limit the credit transaction by not allowing credit purchases to
its customers. This is because; solar product is one of the products that have significant usage in
the customer's lives. This product forms part of daily activities and it is also used for cooking
purposes. Hence, it suggests that solar product is of high importance in the customer’s life.
Therefore, they will somehow arrange the financial resources needed to buy the same.
Q7. As per the given case, it is analyzed that the business model is highly innovative in its
approach. This is because it has assisted in solving the lighting problem in Kenya by giving rise
to number of female entrepreneurs. Through its business model, it has promoted
entrepreneurship in Kenya. It has also contributed to women empowerment in Kenya. The
Lightning Africa Kenya program has also developed key skills among female employers.
Through its training, it has provided knowledge in the field of bookkeeping, marketing and
business management. Through its practices, it has developed more employed women. Further, it
has improved the health status of the individual in Kenya.
Q8. After analyzing the condition of customers, it is assessed that a large section of customers
forms the part of the lower base of pyramid. Thus, Kenyan market faces an issue in raising cash
transactions, as there is variance between the product prices and customer willingness and
capacity to pay. Hence, to raise to an effective team in female-dominant startup for selling solar
lighting products, it is recommended that Last Mile Entrepreneurs Program should recruit
household women in the production process of solar products. Despite giving wages to these,
they should be provided with solar products at the end of the service period. This will provide
multiple benefits to the LMEs. Firstly, it will assist in fulfilling the need of its customers.
Secondly, it will not encounter more credit transactions as it is retaining work from its customers
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ENTREPRENEURIAL MINDSET 5
in return to solar products. This is because its employees are also counted in its customers.
Through this practice, it will be able to improve the health status of the population of Kenya and
Africa. Thus, all these activities gave rise to women empowerment in Kenya and Africa.
Q9. After analyzing the case, it is assessed that the seven journey concept does not apply to
women entrepreneurs in Kenya. This is because seven-journey concept includes Intimidation. It
is the stage where an individual develops a dream of becoming an entrepreneur. However, this
has not applied in the case of women entrepreneurs as they have emerged as an entrepreneur by a
chance they have received from the LME program. Similarly, they have not faced failure in the
solar products enterprise. However, they have experienced challenge in raising capital but it does
not count to failure. Neither, they have acknowledged the phase of Rejuvenation and
Temperance in their business cycle. The rejuvenation stage emerges after acknowledging the
failure. Moreover, Temperance stages arise after experiencing repeated failures. It acts as a final
stage. It states that women entrepreneurs have only experienced certain stages of
entrepreneurship. Thus, this proves that seven-journey concept is not applicable in the given case
(Kimmorley, 2015).
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ENTREPRENEURIAL MINDSET 6
BIBLIOGRAPHY
David & Koch , , 2019. Kochie looks at what makes a great business entrepreneur. [Online]
Available at: https://www.news.com.au/finance/david-and-libby-koch/kochie-looks-at-what-
makes-a-great-business-entrepreneur/news-story/f862b207d3b6b3db48f22f58c93dd893
[Accessed 24 September 2019].
Jansen, C. et al., 2018. Australia's top 100 entrepreneurs. [Online] Available at:
https://www.businessnewsaus.com.au/articles/australia-s-top-100-young-entrepreneurs.html
[Accessed 24 September 2019].
Kimmorley, , 2015. 7 successful Australian female entrepreneurs on the biggest lessons they
learned from starting a business. [Online] Available at: https://www.businessinsider.com.au/7-
successful-australian-female-entrepreneurs-on-the-biggest-lessons-they-learned-from-starting-a-
business-2015-11 [Accessed 24 September 2019].
Long, & Janda , M., 2019. Rich are getting richer, but stagnating wages mean income inequality
is steady. [Online] Available at: https://www.abc.net.au/news/2019-07-12/household-income-
and-wealth-abs-data-shows-rich-are-richer/11302696 [Accessed 24 September 2019].
Price , J., 2013. 10 Personality Traits Every Successful Entrepreneur Has. [Online] Available at:
https://www.businessinsider.com.au/traits-of-successful-entrepreneurs-2013-2 [Accessed 24
September 2019].
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