MN3194
MN3194 Entrepreneurship
Candidates should answer EIGHT of the following TEN questions: All FOUR questions
from Section A (10 marks each), and FOUR from Section B (15 marks each). You are
strongly advised to divide your time accordingly.
Please find questions on the following page.
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SECTION A. Answer all four questions from this section.
1 a) Discuss how the underpinning theory of economy and society, as viewed
by Schumpeter and Jean-Baptiste, defines entrepreneurship. (5 marks)
b) Discuss why Peter Drucker believes that entrepreneurs are not innovative
(5 marks)
per se.
2 a) Explain why Koltai argues that innovation is not the same thing as
technology. (5 marks)
b) Explain why Schumpeter distinguishes entrepreneurs from other
businesspeople and how this impacts economic output. (5 marks)
3 a) Discuss why the effect of creative destruction, as defined by Christensen,
can provide smaller firms with an unfair advantage. (5 marks)
b) Explain why, according to Kritikos, about 10 years after inception, the
effects of new business formation on the economy fades away. (5 marks)
4 a) Discuss how you would apply the PEST analysis framework in order to
determine the level of stability of an economy. (5 marks)
b) Discuss, at what stage of a start-up, venture capital or public sector
funding may be strategically more advantageous. (5 marks)
SECTION B. Answer any four of the following questions:
5 a) Discuss why the old paradigm of “it’s a business” or “it’s a charity” (Schwab
Foundation) is no longer valid. (7 marks)
b) Explain why the Schwab Foundation’s definition of ‘learning process by
design’ is believed to be paramount for success. (8 marks)
6 a) Discuss why Amy Blyth argues that the main types of organisations
haven’t served societies’ needs well enough in the long term. (7 marks)
b) Discuss how the Four Factor Value Matrix by Kuppers can be applied to
address the above issue. (8 marks)
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7 a) You have been hired as a start-up consultant by a B2C start-up that has
developed a new car sharing app. The start-up is now looking to scale the
business into the US market. Your initial task is to conduct a competitor
(7 marks)
analysis. Explain which methodologies you would choose.
b) The start-up is now looking to include motorbikes and e-scooters. What is
your route-to-market strategy? (8 marks)
8 a) You have been hired as a startup consultant by a travel insurance
startup that struggled during the Corona pandemic as sales plummeted.
What would be your strategy to get sales up?
(7 marks)
b) With your support the startup was eventually able to increase revenues
and is now ready to scale. Discuss your customer development process
and how many pivots should be built in and why.
(8 marks)
9 a) You have been hired as a start-up consultant by a B2C start-up that has
developed a new car sharing app. The start-up has scaled up successfully
and is now looking to go after the B2B market. You are tasked to revamp
the business development strategy. Which business models would you
(7 marks)
suggest pursuing and why?
b) Your strategy has been successful and now you are tasked to short list
potential venture capital firms for fundraising. Name three key factors
(apart from the cash injection) you deem to be important and explain. (8 marks)
10 a) A start-up is looking to raise venture capital. The pre-money valuation is
$40,000,000 with two co-founders holding 30% of the shares each and
two investors holding 20% each. Now, the platform receives a venture
capital injection of $20,000,000. Answer the following questions:
i. What is the post-money valuation in $?
ii. How much equity holds each founder in % and $ after the capital
injection?
iii. How much equity holds the venture capital firm in % and $ after the
capital injection? (7 marks)
b) How would you compose the new advisory board and what skills would
you look out for in this particular case? Discuss five different advisory
board member roles. (8 marks)
End of paper
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