Entrepreneurship and Innovation
1. Difference between entrepreneurship and entrepreneur: Entrepreneurship is the process of
starting a new business or venture, while an entrepreneur is the individual who initiates and
manages the business.
2. Purpose of an entrepreneur: The purpose of an entrepreneur is to identify and capitalize on
business opportunities by creating and managing ventures.
3. Purpose of industry and target markets: The purpose of an industry is to provide goods or
services to meet consumer needs, while target markets are specific segments of the population that
a business aims to serve with its products or services.
4. Two issues to consider in market visibility study: When conducting a market visibility study, two
important issues to consider are market research to understand consumer preferences and
behaviors, and competitive analysis to assess the strengths and weaknesses of existing competitors.
5. Target market or industry: The target market refers to the specific group of customers or
consumers that a business intends to serve with its products or services. An industry, on the other
hand, is a broader category that encompasses multiple businesses operating in the same sector or
offering similar products or services.
6. Purpose of a business plan: The purpose of a business plan is to outline the goals, strategies, and
financial projections of a business. It serves as a roadmap for the entrepreneur and provides a
comprehensive overview of the business idea, its target market, competition, operations, and
financial viability.
7. Innovation: Innovation refers to the process of creating and implementing new ideas, products,
services, or processes that bring about positive change and generate value. It involves finding
creative solutions to problems, improving existing products or services, or introducing something
entirely new to the market.
8. Two ways of encouraging innovation in a company: Companies can encourage innovation by
fostering a culture of creativity and openness, where employees are encouraged to share ideas and
experiment. Additionally, providing resources and support for research and development, and
incentivizing and rewarding innovative thinking can also stimulate innovation within a company.
Demand and Supply
1. Demand refers to the quantity of a product or service that consumers are willing and able to
purchase at a given price, during a specific period.
2. Impact of an increase in maize price on the production of maize meal:
- When the price of maize increases, it leads to a decrease in the quantity demanded of maize meal.
This is represented by a leftward shift of the demand curve for maize meal.
- The decrease in quantity demanded can result in a decrease in the production of maize meal as
producers may find it less profitable to produce at higher input costs.
3. Impact of an increase in the price of packing tools:
- An increase in the price of packing tools would raise the production costs for maize meal.
- This increase in production costs can lead to a decrease in the supply of maize meal, represented
by a leftward shift of the supply curve.
- As producers face higher costs, they may reduce the quantity supplied of maize meal.
4. Effect of decreasing salary (income) with the aid of demand and supply:
- A decrease in salary can lead to a decrease in the demand for certain goods and services, especially
those considered non-essential or luxury items.
- This decrease in demand is represented by a leftward shift of the demand curve.
- As consumers have less disposable income, they may reduce their purchases of certain goods and
services, resulting in a lower quantity demanded.
5. Quantity supply and quantity demand:
- Quantity supply refers to the actual quantity of a product or service that producers are willing and
able to sell at a given price.
- Quantity demand refers to the actual quantity of a product or service that consumers are willing
and able to buy at a given price.
6. Change in quantity demand and change in demand:
- Change in quantity demand refers to the movement along the demand curve caused by a change in
price, resulting in a change in the quantity demanded.
- Change in demand refers to the shift of the entire demand curve caused by factors other than
price, such as changes in consumer preferences, income, prices of related goods, etc.
7. The slope of the demand curve is downward and the slope of the supply curve is upward due to:
- Law of Demand: As the price of a product decreases, the quantity demanded increases, and vice
versa. This inverse relationship between price and quantity demanded leads to a downward-sloping
demand curve.
- Law of Supply: As the price of a product increases, the quantity supplied also increases, and vice
versa. This direct relationship between price and quantity supplied leads to an upward-sloping
supply curve.
