Entrepreneurship Report: Theories, Entrepreneurs, and Business Plan

This report delves into the multifaceted world of entrepreneurship, commencing with an exploration of foundational theories. It examines the 'Two-Stage Value Creation Framework,' highlighting the critical stages of venture formulation and monetization, and the role of effective innovation and economic development. The report then pivots to an analysis of three prominent entrepreneurs: Jeff Bezos, Bill Gates, and Mark Zuckerberg, evaluating their socio-cultural and economic impacts, both globally and locally. A comparative analysis of their entrepreneurial approaches reveals both commonalities and distinctions. The assignment culminates in the development of a comprehensive business plan, incorporating essential elements such as company description, market analysis, organizational structure, product or service details, marketing strategies, funding requests, and financial projections. The plan focuses on introducing a new product to the market, providing a practical application of the theoretical concepts discussed.

Running head: ENTREPRENEURSHIP
Entrepreneurship
Name of the student:
Name of the university:
Author note:

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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.

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Role of the Entrepreneur: In an economic system as identified by Schumpeter, there
exists a high degree of risk. The fear of risk becomes a factor of motivation to entrepreneurs.
They utilize this motivation to attain and retain the competitive advantage and to become the
leading name in the industry in and across the world.
Business Cycle or Cyclical Process: A business cycle as stated by Schumpeter is
analytical, statistical, and historical. Schumpeter further says that both economic and non-
economic factors are responsible for a crisis or a business cycle. It means entrepreneurs have
motivation into non-economic factors as well. In a business cycle, the business is bound to adapt
to the new economic conditions. If it does not this will become vulnerable to external threats
such as increased competition, changing consumer behavior, trending shopping behavior,
technological advancements etc.
The Decay of Capitalism: A capitalist society as according to Schumpeter will not sustain
longer. It is because this will be opposed from many social institutions. There are possibilities for
conflicts between the capitalist agents, and the social institutions for a fact that a capitalist
society produces inequalities in the distribution of income, and wealth.
(Croitoru, 2012)
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.
These entrepreneurs are (Forbes, 2018):
1. Jeff Bezos

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Socio-cultural: Jeff Bezos who is the founder of Amazon.com has both positive and
negative socio-cultural impacts on customers. It has contributed strongly to the changing
shopping behavior of customers. However, the person can also be called as being responsible for
providing reasons to obesity. With the advent of e-commerce, people have developed and been
habituated of non-active lifestyles. It resulted in the obesity pandemic. Now, there is no need to
go out and buy the groceries, and other goods to people who rely largely on internet shopping. In
doing so, these particular people have lost their opportunities to go out and have some physical
exercise in the form of walking. On contrary to this, walking is an important exercise to fight
with obesity (Rolls, 2014). In addition, Jeff Bezos is not also an ideal person to many employees
as Amazon.com offers nothing apart from a technological environment. It scores low in terms of
addressing to socio-cultural needs of jobs.
Economic: The work of Jeff Bezos is being criticized for its decision to go for artificial
intelligence as the move will result in a huge job loss. However, the company generates more
jobs than it is cutting. Amazon has created new facilities in the USA and UK, which has resulted
in additional jobs (Amazon, 2018). The stock market is known for its uncertainty, which is also
one of the characteristics of the globalized world. Now, Amazon's expansion into the grocery
sector may bring more criticism to Mr. Jeff. It looks more pronounced on looking at what has
happened to Walmart. The company has already faced the dropping share prices. Jeff Bezos has
the reputation to regenerate the idea of capitalism in the UK. The UK was known to have been
following the traditional model of capitalism. However, the concept of capitalism being
introduced by Jeff will probably be the model of capitalism of the future in the UK (Business
Insider, 2018).
2. Bill Gates

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Socio-cultural: Bill Gates is one of the most famous entrepreneurs of all time. He is the
founder of Microsoft Corporation. The company is widely popular for its products and services
specially designed for computers. The different versions of the operating system, which helps the
computer to operate, is created and produced by Microsoft. Its impact can be observed in the way
education and job practices have changed ever since the use of computers becomes popular
globally. Schools and universities across the globe started to accommodate computers in their
campus facilities. Universities used it to reduce the time being spent on doing the data
management. On the other hand, schools have used computers to let the students be acquainted
with it at their early ages. They are being trained in MS-Office applications, which is an essential
activity in higher classes. Bill Gates is indeed responsible for such a dramatic change. It has
almost replaced the traditional paper works from schools, colleges, and universities in the world
(Seas.gwu.edu, 2018). However, it has not been able to drive similar success with its range of
smartphones as compared to top smartphone companies like Apple, Samsung, and others.
Economic: Gates’ Microsoft is the second largest private organization in the state of
Washington. It has created millions of jobs across its different business locations. Microsoft
certification courses such as for the networking specialist is taught across many colleges and
affiliated institutions globally.
3. Mark Zuckerberg
Socio-cultural: Mark Zuckerberg is the founder of Facebook. He holds the reputation of
being the youngest entrepreneur. It has affected the way people used to have the interactions.
Now, it is no longer necessary to travel miles to meet with near and dear ones. They can rather
be searched on the internet as well. They just need to have a Facebook account to become
engaged and involved in a two-way communication with their friends, relatives, and dear ones.

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Interestingly, it is a platform that also helps to search people whom others such as their friends
have lost contact with. However, these benefits can be associated with privacy and security
issues. Messages and other posts being uploaded to Facebook can be accessed illegally.
Moreover, there is less security to data being shared on Facebook. Mark Zuckerberg is still
working on to address these issues.
Economic: Mark Zuckerberg has its impact on the local and global economy. Its
company is known to have created thousands of jobs across Europe. The feat is remarkable
considering that Amazon.com is an American-based company. Competition between the telecom
companies has increased ever since the inception of Facebook. The competition resulted in an
increasingly growing participation from several new telecom companies. These telecom
companies constantly strive to fulfill the needs of consumers. On the other hand, these telecom
companies are also responsible for creating employment opportunities. Hence, this can be said
that Mark Zuckerberg has a direct and indirect impact on employability across the globe.
Similarities and Differences between these entrepreneurs
Based on the above studies, similarities and differences between entrepreneurs could be figured
out as depicted below in the table.
Similarities
All three entrepreneurs have been found to have utmost desires to experiment with
innovative ideas. Jeff Bezos of Amazon.com will soon be deploying artificial intelligence to
enhance the service efficiency and reduce the cost of operation (Forbes, 2018). Bill Gates of
Microsoft has also entered the smartphone sector. It did so in joint venturing with Nokia to
produce the Lumia series of phones. Mark Zuckerberg of Facebook did collaborate with

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Whatsapp to enhance its service and increase its customer base. All three entrepreneurs can be
called an agent of change who are passionate for innovation (Stam, Arzlanian & Elfring, 2014).
Apart from all these, they have in common the following similarities (Armanios et al., 2017):
 A passion for growth
 Disciplined work style
 Passion
 Self-motivation
 Risk-taking abilities
Differences
Bill Gates could not be able to create a lasting impression with the Lumia series phones
(Forums.windowscentral, 2018). Similarly, Facebook was also being criticized for its
collaboration with Whatsapp (BBC News, 2018). Jeff Bezos is a bit different in this regard and
has the success stories in innovation. They probably represent three different generations in one
era with Zuckerberg being the youngest of them. The leadership style of Jeff Bezos is both
transactional and transformational (Linkedin, 2018). Mark Zuckerberg differs from Jeff Bezos in
regards to the leadership style. Zuckerberg is more a transformational leader. He also uses other
leadership styles like democratic, autocratic, and laissez-faire (Inc.com, 2018). Bill Gates’
leadership style comprises of autocratic, delegate, and participating. He can use all these
leadership styles appropriately in suitable time (Theyouthimpact.org, 2018).

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References
Amazon. (2018). Amazon.com: Online Shopping for Electronics, Apparel, Computers, Books,
DVDs & more. Retrieved from https://www.amazon.com/
Armanios, D. E., Eesley, C. E., Li, J., & Eisenhardt, K. M. (2017). How entrepreneurs leverage
institutional intermediaries in emerging economies to acquire public resources. Strategic
Management Journal, 38(7), 1373-1390.
BBC News. (2018). Facebook's WhatsApp purchase opposed. Retrieved from
https://www.bbc.com/news/technology-26481654
Business Insider. (2018). Here's how Amazon makes its money. Retrieved from
https://www.businessinsider.com/how-amazon-makes-money-2017-12?IR=T
Croitoru, A. (2012). Schumpeter, JA, 1934 (2008), The Theory of Economic Development: An
Inquiry into Profits, Capital, Credit, Interest and the Business Cycle, translated from the
German by Redvers Opie, New Brunswick (USA) and London (UK): Transaction
Publishers. Journal of Comparative Research in Anthropology and Sociology, 3(2), 1-13.
Forbes. (2018). How Amazon Has Reorganized Around Artificial Intelligence And Machine
Learning. Retrieved from https://www.forbes.com/sites/blakemorgan/2018/07/16/how-
amazon-has-re-organized-around-artificial-intelligence-and-machine-learning/
#6296cd987361
Forbes. (2018). Why Bill Gates, Jeff Bezos, Mark Zuckerberg & Richard Branson Are Investing
In These 2 Startups. Retrieved from

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https://www.forbes.com/sites/zackfriedman/2018/06/14/bill-gates-jeff-bezos-mark-
zuckerberg-branson-startups/#659f3f3112c0
Forums.windowscentral. (2018). Microsoft Lumia 650 Bugs & Defects - Windows Central
Forums. Retrieved from https://forums.windowscentral.com/microsoft-lumia-
650/414496-microsoft-lumia-650-bugs-defects.html
Glover, J., Champion, D., Daniels, K., & Boocock, G. (2016). Using capital theory to explore
problem solving and innovation in small firms. Journal of Small Business and Enterprise
Development, 23(1), 25-43.
Inc.com. (2018). 5 Leadership Lessons from Mark Zuckerberg. Retrieved from
https://www.inc.com/ekaterina-walter/as-zuckerberg-turns-30-leadership-lessons.html
Linkedin. (2018). Retrieved from https://www.linkedin.com/pulse/jeff-bezos-best-living-
transformational-leader-f%C3%A9lix-de-andr%C3%A9s
Mishra, C. S., & Zachary, R. K. (2015). The theory of entrepreneurship. Entrepreneurship
research journal, 5(4), 251-268.
Rolls, B. J. (2014). What is the role of portion control in weight management?. International
Journal of Obesity, 38(S1), S1.
Seas.gwu.edu. (2018). 1. Retrieved from
https://www2.seas.gwu.edu/~shmuel/WORK/Differences/The%20Difference
%20between%20Electronic%20and%20Paper%20Documents.html

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Stam, W., Arzlanian, S., & Elfring, T. (2014). Social capital of entrepreneurs and small firm
performance: A meta-analysis of contextual and methodological moderators. Journal of
Business Venturing, 29(1), 152-173.
Theyouthimpact.org. (2018). WHAT MAKES BILL GATES A GREAT LEADER | Youth
Impact. Retrieved from http://theyouthimpact.org/what-makes-bill-gates-a-great-leader/

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Final Project - Develop a Business Plan of introducing a completely new product in the
market
1. Company description
Safaricom is a public limited company and is one of the largest and most reputed mobile
network service providers in Kenya. The company was formed in 1997, which after three years
became the wholly owned subsidiary of Telkom Kenya (Safaricom.co.ke, 2018). In May 2000,
Vodafone Group PLC of the UK acquired a close to 40% stake in the company (Safaricom.co.ke,
2018). The list of products and services include GSM related products and Mobile Money
Transfer. The Mobile Money Transfer is conducted and managed with different brands like M-
Pesa, Songa, Masoko, M-PESA 1 Tap, and M-shwari. It provides services such as mobile
telephony, Mobile Money Transfer, consumer electronics, data, cloud computing, music
streaming, and Fibre Optic (Safaricom.co.ke, 2018).
2. Market analysis - research on the industry, market, and competitors
Industry
The telecommunication sector in Kenya constantly witnesses incrementing competition
between leading telecom service providers. A lot of changes is certain due to the increasingly
growing competition between telecom service providers, rapid and continuous developments in
the mobile market, and improved international connectivity. The landing of four Fibre-Optic
international submarine cables in Kenya in recent times has improved the infrastructural
competency of telecom companies. Call rates and data charges are a lot cheaper now as
compared to plans in the past. The regulating body has played an important role in lowering
down the interconnection tariffs. A number of regulations have been implemented to further the

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level of competition. In addition, a simplified licensing scheme being implemented in 2008 did
further improve the infrastructure. The ease of availing the licenses have attracted significant
number of local and international telecom players towards the country. As a result of which the
competition has increased to the next level. Expansion of broadband and mobile networks is in
continuous progress. Customers will have an improved calling and data usage experience in near
future (Africantelecomsnews.com, 2018). The enlarged competition, the ease to avail the license
of operation, an access to advanced Fibre Optic, and the international connectivity have all
encouraged leading players to constantly look for innovative ideas. It is, therefore, important for
Safaricom to keep producing new products and services and to be able to dominate the telecom
market.
Table 1: Kenya-Telecom Industry for the Second Quarter of 2017
(Source: Africantelecomsnews.com, 2018)
The above table gives a snapshot of the Kenya - Telecom Industry for the second quarter
of 2017.
Market

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Table 2: Subscribers’ Base of Safaricom from 2006-2017
(Source: Africantelecomsnews.com, 2018)
The table shows the number of subscribers in Kenya at the end of each respective years.
The data is captured between the period of (2006-2017, in Million).

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Chart 1: Mobile Subscribers and Mobile Penetration
(Source: Africantelecomsnews.com, 2018)
The penetration rate is approximately close to 80% (Africantelecomsnews.com, 2018).
All these facts suggest that the mobile market in Kenya is constantly growing. Hence, these are
growing opportunities for mobile network providers. Therefore, innovation in products and
services will be a key factor to succeed and take the advantage of opportunities. Companies with
better infrastructure such as competency in R&D activities, ability to attract the investors,
effective leadership in managers, and skilled and creative employees will have the advantage.
Hence, Safaricom will need to make improvements along its various business domains such as
Human Resource Practice, marketing & sales, strategic management etc. to be able to retain its
dominance of the market and to attain a sustained business. In addition, the company will also
need its employees and managers to remain engaged in brainstorming sessions to generate
innovative ideas. These ideas must be used in offering new products and services. The company
should also have leaders who are experienced and well versed in change management.
Competitors
Kenya’s biggest telecom service provider Safaricom loses its subscribers’ market shares
in the quarter that ended in June. It lost 1.6% of market shares as its rival company Airtel was
able to add more users to its network, reported by the industry regulator
(Africantelecomsnews.com, 2018). The fall has marked the third straight quarterly drop for
Safaricom. As confirmed by the regulator “Communications Authority (CA)”, the provider had
29.7 million subscribers during the same period (Africantelecomsnews.com, 2018). While
Safaricom was able to add more subscribers during the same period, the growth was not that high

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as compared to rival Airtel. Subscribers’ base for Safaricom rose by 0.7% whereas Airtel was
able to add more users (Africantelecomsnews.com, 2018). Subscribers’ base for Airtel rose by
11.9% from 8.7 million to 9.7 million (Africantelecomsnews.com, 2018). Now, Airtel has 21.4%
market shares (Africantelecomsnews.com, 2018). On the other hand, market shares for
Safaricom did fall from 72.6% to 65.4% (Africantelecomsnews.com, 2018). It shows that during
the quarter under reviews, Safaricom experiences a negative growth in market shares. On the
other hand, Airtel, and Telkom Kenya were the gainers. Finserve Africa did also lose market
shares by 0.1% (Africantelecomsnews.com, 2018). Market shares for Mobile Pay Ltd and Sema
Mobile remain unchanged (Africantelecomsnews.com, 2018).
Hence, Safaricom faces major threats from the rising recognition of Airtel in Kenya and
the established giant Telkom Kenya.
3. Organization and management - the business and management structure
The management section of the business plan will consists of that follows (Eisenberg, 2017):
Ownership Structure
In this section, legal structure will be discussed and managed. Since Safaricom is a big
company, legal actions will be longer as well. There will be information for investors. Investors
will be updated on everything from AGM voting to acquisition news, annual results and financial
results. The legal structure will also have confirmatory sentences for gender equality in the
company. The legal information will also include information as such the license details.
Internal Management Team

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Internal management team will consist of managers at different levels of organization
such as in-line managers, middle-managers, and top managers. They are very crucial to the
success of this business plan. The in-line managers will need to effectively communicate the
proposed technological upgrade in the mobile network. Some of those managers will be selected
for the team specially dedicated to develop the upgrade version of mobile network technology.
Middle-managers will mainly monitor the progress, keep a check of the available
resources, address to needs, and communicate the process related message with the in-line
managers. They should also conduct occasional feedback session as this will let them know the
potential challenges that their employees face.
Top managers will have responsibilities like approving the proposal, communicating
during a crisis management, and so on. Their approval is required on project budget.
External Management resources
External management resources for Safaricom will be their suppliers. It is very critical for
the company to manage external resources to avoid the resource shortage. For example, Fibre
Optic holds the key to cheaper calling and data plans. They need to have a regular access to Fibre
Optic to avoid losing the growing market opportunities. New and existing investors must be
attracted and retained. This is possible only when investors are satisfied with the firms’
competency and its internal resources. However, this should not be a challenge for Safaricom
considering that the company still has dominating market shares in mobile sector.
Human resources Needs

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This business plan will need skilled professionals those who are well versed in mobile
network technology. Safaricom already has such professionals. The human resource managers
will be responsible to design and manage policies related with management and operations.
4. Service or product
The chosen service is an upgrade of the existing mobile network technology of
Safaricom. This is about a transition from “4G” to “5G”. “5G” will soon be the technology of
mobile in near future. This will be even faster than the “4G” and reliable as well. This service is
being selected because consumers especially the millennials are very passionate for a fast and
reliable internet service (Rost et al., 2016). An upgrade to this service could be a first of this kind
for the mobile market in Kenya. Hence, Safaricom will have more opportunities as compared to
its rivals for conducting its network expansion (Clarke, 2014).
5. Marketing and sales
To achieve the success with an upgrade to “5G” it is important to fulfill the customer
value, societal value, and employee value. For the employee value, there must be a high
satisfaction level in employees. For the societal, CSR holds the key. For customers, it is
important to offer best service at the most competitive price (Bellou et al., 2015).
Marketing communication will be an essential part of this business plan. The new
technology can be promoted on significant occasions such as during festive holidays to attract
customers in bulk. Promotional offers can of varied kinds such as (Oke et al., 2016):
 Welcome Offer
 Happy New Year Offer

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Service launch can be made attractive to customers by offering data services at free.
Consumers can be given the unlimited data usage during its initial three months of launch.
Focusing on boosting the consumer base with attractive plans and excellent customer care.
Recover the investments by accumulating a large consumer base. In addition, Safaricom will
need to keep a close watch on the market and its competitors’ actions to the upgrade. This will
help to be ahead of rival companies in service quality and attractive offers (Pappas, 2016).
In addition, advertisement will also be required such as through paper and electronic
media. Popular daily newspapers in Kenya and its radio and TV services will be utilized to
advertise the product. The product will also be promoted on social media sites like YouTube,
Facebook, Instagram, Twitter, and its official website.
Selling places will be as usual the affiliated retail stores and its official website from
where customers can purchase their choice of the product.
6. Funding request for next 3 to 5 years
Contents Requirement
Current Funding Requirement
Future Funding Requirements for next 3 to 5
years
Intention of using the funds such as for
working capital and capital expenditures
A strategic financial plan for future such as
debt repayment plan. This is important
because it impacts the ability to repay the

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loans.
Table 3: Funding Request for next 3 to 5 years
(Source: Brinckmann & Kim, 2015)
7. Financial projections - information like balance sheets
Income Statement Evolution
Chart 2: Income Statement Evolution
(Source: Marketscreener, 2018)

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Finances-Leverage
Chart 3: Finances-Leverage
(Source: Marketscreener, 2018)

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Balance Sheet Analysis
Chart 4: Balance Sheet Analysis
(Source: Marketscreener, 2018)

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References
Africantelecomsnews.com. (2018). Kenya: Major African Mobile Markets: Future Growth
Prospects. Retrieved from
https://www.africantelecomsnews.com/resources/AfricaOpp_Kenya.html
Bellou, V., Chaniotakis, I., Kehagias, I., & Rigopoulou, I. (2015). Employer Brand of Choice: an
employee perspective. Journal of Business Economics and Management, 16(6), 1201-
1215.
Brinckmann, J., & Kim, S. M. (2015). Why we plan: The impact of nascent entrepreneurs'
cognitive characteristics and human capital on business planning. Strategic
Entrepreneurship Journal, 9(2), 153-166.
Clarke, R. N. (2014). Expanding mobile wireless capacity: The challenges presented by
technology and economics. Telecommunications Policy, 38(8-9), 693-708.
Eisenberg, M. A. (2017). Legal models of management structure in the modern corporation:
Officers, directors, and accountants. In Corporate Governance (pp. 103-167). Gower.
Marketscreener. (2018). Safaricom Plc : Financials, earnings estimates and forecasts for
Safaricom Plc | SCOM | MarketScreener. Retrieved from
https://www.marketscreener.com/SAFARICOM-PLC-6500172/financials/
Oke, A. O., Kamolshotiros, P., Popoola, O. Y., Ajagbe, A. M., & Olujobi, J. O. (2016).
Consumer behavior towards decision making and loyalty to particular
brands. International Review of Management and Marketing, 6, 43-52.

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Pappas, N. (2016). Marketing strategies, perceived risks, and consumer trust in online buying
behaviour. Journal of Retailing and Consumer Services, 29, 92-103.
Rost, P., Banchs, A., Berberana, I., Breitbach, M., Doll, M., Droste, H., ... & Sayadi, B. (2016).
Mobile network architecture evolution toward 5G. IEEE Communications
Magazine, 54(5), 84-91.
Safaricom.co.ke. (2018). Mobile Phones, Tablets, Mobile Money Solutions &
Telecommunication Services - Safaricom. Retrieved from https://www.safaricom.co.ke/

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Appendix
1. Entrepreneurship
Figure 1: Theory of Entrepreneurship
(Source: Mishra & Zachary, 2015)
Two-Stage
Value Creation
Framework Entrepreneurs intend to leverage
the entreprenurial resources in
response to an external
opportunity
Several ventures fail at this stage
1st Stage
Venture Formulation
Acquisition of external
resources by the
entrepreneur like strategic
aliance
2nd Stage
Venture Monetization

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2. Effective Innovation
Figure 2: Using Capital Theory of Effective Innovation
(Source: Glover et al., 2016)
CAPITAL THEORY
Cultural Capital
- Individals within a firm are
resources of knowledge
- Organization might lack
such resources
Social Capital
- Helps to repair the
insufficient knowledge in
organizations
- It does so by encouraging for
collaborations, knowledge
exchanges like R&D, strategic
alliances or joint ventures
- Small organizations do better
in co-operative networks

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3. Economic Development
Figure 3: The Theory of Economic Development by Schumpeter
(Source: Croitoru, 2012)
Schumpeter states that economic activities follow a
circular activity as that of a blood flow in human
body
It is made dynamic by promoting the innovations
Circular Flow
In an economic system, there exist a high degree of
risk
The fact motivates entrepreneurs to prove its
existence and conquer the kingdom
Role of the Entrepreneur
Business cycle is statistical, historical, and analytical
Economic and non-economic factors are responsible
for a crisis
Business adapts to a new economic state
Business Cycle or Cyclical
Process
A capitalist society will decay as this will be opposed
from many social institutions
It brings inequalities in the distribution of wealth,
and income
The Decay of Capitalism