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