2021 MS

Examiners’ commentaries 2021
MN3194 Entrepreneurship
Important note
This commentary reflects the examination and assessment arrangements for this
course in the academic year 2020–2021. The format and structure of the
examination may change in future years, and any such changes will be publicised
on the virtual learning environment (VLE).
Information about the subject guide and the Essential reading references
Unless otherwise stated, all cross-references will be to the latest version of the
subject guide (2019). You should always attempt to use the most recent edition
of any Essential reading textbook, even if the commentary and/or online reading
list and/or subject guide refer to an earlier edition. If different editions of Essential
reading are listed, please check the VLE for reading supplements – if none are
available, please use the contents list and index of the new edition to find the
relevant section.
General remarks
Learning outcomes
This course is about entrepreneurship both from an economics and practitioners
angle and shows how economics can contribute to our understanding of
entrepreneurship. The course also sheds light on the societal impact of
entrepreneurship and its utility for economic development. It further provides a range
of practical skills such as developing business models, designing market research
frameworks, creating product development cycles, establishing customer relationship
channels, raising seed capital, pricing strategies, and protecting intellectual property.
At the end of this course, and having completed the essential reading and activities,
you should be able to:
● Have a thorough understanding of how economics can contribute to
entrepreneurship
● Explain how social entrepreneurship creates impact and how to measure it
● Describe the theoretical insights and recent empirical findings of academic
research in the field of economics of entrepreneurship
● Explain how entrepreneurship drives economic change and growth
● Understand how government utilise entrepreneurship to stimulate economic
growth
● Analyse and develop business ideas and business models
● Design market research frameworks, develop and evaluate business models
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● Be able to build a Profit and Loss (P&L) statement for your business
● Have a solid understanding of how to approach, acquire, and keep customers
● Be able to develop analyse and apply various pricing strategies
● Be able to design, structure, and execute the process of launching a new
venture
What the examiners are looking for

You are expected to answer the question in a straightforward and concise manner.
In doing so you are expected to demonstrate a clear knowledge of the subject and
be selective by including material that is relevant to the question and excluding
material that is tangential or irrelevant. Candidates should focus on the questions
asked rather than simply reciting pre-learned subject content. Examiners penalise
answers that include all of the material that a candidate knows about the topic as it is
either evidence of an inability to exercise judgement or a lack of understanding as to
what the question is asking. You should ensure that you read the question thoroughly
and respond adequately. The examination paper is structured in a way that requires
candidates to demonstrate: (i) knowledge and understanding, (ii) application of
knowledge and critical thinking, (iii) demonstrate solid and practical experience
gained from doing the exercises in the subject guide. Failure to provide a good
answer can increase your risk of failing the examination. We therefore strongly advise
candidates to ensure that they are well-prepared. The subject guide usually includes
all of the relevant knowledge so good
familiarity with the subject guide and practical experience gained throughout the
course is highly advisable. Candidates are sometimes overly descriptive in their
answers, as a consequence, they do not provide a critical perspective on the material
presented. Candidates are expected to warrant their claims by citing literature or
giving examples, rather than just expressing unsubstantiated opinions. Avoid a
descriptive approach and consider writing in a way that articulates different
viewpoints. Better answers are able to link these to different theoretical frameworks
and practical evidence, and provide references of key authors in the academic
literature. The examiners like answers to be clearly and logically set out, and to
include a beginning, a middle and an end.
Beginning: present the main argument in the introductory paragraph.
Middle: develop and substantiate the argument in the main body of the answer.
End: use the concluding paragraph to summarise the main points of the argument.
Your answer must address the given question, and so it is important when answering
the question to always ask yourself ‘how is each point I am making relevant to the
question?’ By doing so, you should be able to filter out information that is irrelevant
to the question and only keep the parts that are. Do not leave it to the closing
paragraph of your answer to make your argument explicit. Also, you need to
demonstrate clear evidence of practical experience you have gained by completing
all the tasks in the subject guide.
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Examination revision strategy
Many candidates are disappointed to find that their examination performance is

poorer than they expected. This can be due to a number of different reasons and
the Examiners’ commentaries suggest ways of addressing common problems and
improving your performance. We want to draw your attention to one particular
failing – ‘question spotting’, that is, confining your examination preparation to a
few question topics which have come up in past papers for the course. This can
have very serious consequences.
We recognise that candidates may not cover all topics in the syllabus in the same
depth, but you need to be aware that examiners are free to set questions on any
aspect of the syllabus. This means that you need to study enough of the syllabus
to enable you to answer the required number of examination questions.
The syllabus can be found in the Course information sheet in the section of the
VLE dedicated to this course. You should read the syllabus very carefully and
ensure that you cover sufficient material in preparation for the examination.
Examiners will vary the topics and questions from year to year and may well set
questions that have not appeared in past papers – every topic on the syllabus is
a legitimate examination target. So although past papers can be helpful in
revision, you cannot assume that topics or specific questions that have come up
in past examinations will occur again.
If you rely on a question spotting strategy, it is likely you will find yourself
in difficulties when you sit the examination paper. We strongly advise you
not to adopt this strategy.
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MN3194 Entrepreneurship – Zone A
Important note
relevant section.
Comments on specific questions

Question 1
a) Describe on what basis Schumpeter differentiates founders from
entrepreneurs. (5 marks)
b) Discuss how entrepreneurship can be a catalyst to structural change.
(5 marks)
Reading for this question

The material for this question is outlined in Chapters 1 and 2 of the subject guide.
Approaching the question

a) Candidates are expected to discuss the different definitions of
entrepreneurship as outlined in the subject guide and contextualise on
which basis Schumpeter differentiates founders from entrepreneurs in
detail. Further, they are expected to discuss how the term entrepreneurship
has evolved and how its meaning has shifted over time. An excellent
response would also include an explanation why founders are not
entrepreneurs but entrepreneurs can also be founders.
b) Candidates are expected to discuss the role entrepreneurship plays in
bringing structural change about. The candidate is required to illustrate
structural change in detail for instance by discussing the impact of
entrepreneurship on short, medium, and long-term employment effects and
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on productivity as set out in the subject guide. An excellent answer would

refer to the concept of the ‘Innovator’s Dilemma’ by Clayton Christensen
and link that concept back to a wider societal and socioeconomic context.
Question 2
a) Discuss how governments can utilise entrepreneurship to facilitate
economic development. (5 marks)
b) Discuss how innovation performance levels of EU member states
correlate to economic growth rates. (5 marks)


Candidates are required to provide an in-depth analysis of the different measures
and tools governments use to enhance private sector development. A good answer
would include a detailed discussion how an entrepreneurship ecosystem can be
developed through entrepreneurship friendly policies. An excellent answer would
draw on a case study in the subject guide and include four different examples of
entrepreneurship friendly policies and highlight how they interlink with each other to
facilitate economic development as a result.
Candidates are expected to explain how economic growth rates correlate to

different innovation performance levels across EU member states as set out in the
subject guide. A good answer would include a discussion about The Europe 2020
strategy which seeks to increase employment and economic growth and how it is
intended to develop a sustainable social market economy in the EU. A further point
to be highlighted should be the underlying assumption that innovation is a driving
force in the economic development of nations (European Commission, 2019).
An excellent answer would critically analyse the four different hypotheses of Crudu
(2019) and why he questions this underlying assumption. Further, a concluding
discussion of the findings of the case study by Crudu how innovation performance
levels of EU member states correlate to economic growth rates is expected.
Question 3
a) What are the key drivers for social entrepreneurship? (5 marks)
b) Discuss the advantages of a hybrid enterprise over a non-profit social
enterprise? (5 marks)
The material for this question is outlined in Chapter 4 of the subject guide.

Candidates are required to come up with a clear definition of social
entrepreneurship and substantiate their definition. Further, it is required to discuss
the concept of ‘Social entrepreneurship’ as discussed by Martin and Osberg (2007)
and highlight why it is difficult to settle on a single definition. An excellent answer
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would also include a discussion of Schumpeter’s concept of ‘creative destruction’

and how this can be linked with the impetus of creating social good. Thoughts
should further be given to why the former results in the concept of 'creative social
destruction’ as a transformational force to society. Explaining how social
entrepreneurship promises a sustainable payoff with a wider impact than an
exclusively commercial one is expected, too.
Candidates are expected to initially contextualise the problem many social

entrepreneurs face whilst seeking to address a problem in society but oftentimes fail
to develop a financially sustainable business model. Candidates are then required
to discuss the dichotomy between social and profit-oriented entrepreneurship and
provide suggestions on how to overcome the issue of having to finance the
business. The candidate would need to give examples of how to operate a
financially sustainable business model and explain why operating a hybrid
enterprise model is more advantageous than a pure social enterprise. An excellent
response would stress the fact that the impact of a social enterprise is correlated
with its level of financial health. A discussion how a social enterprise can be
operated in a dual way by pursuing both commercial and social objectives including
an example by relying on the methodologies in the subject guide would be an
excellent addition.
Question 4
a) Discuss what approach you would take to developing a viable business
model. (5 marks)
b) How would you mitigate the biggest risk to new multi-sided market
business models? (5 marks)

The Candidate is required to develop a viable business model and describe each
step succinctly and in an sequential manner. The Candidate is expected to start out
with a business idea and use the Maslow’s pyramid of needs, as provided in
Chapter 5 of the subject guide, to justify their decision. Then, the successful
candidate is expected to analyse their business idea with the Four Factor Value
Matrix by Kuppers (2016) in order to make sure the business idea holds up against
the four factors. In addition to that it is also expected to describe at least one
business model and their associated revenue stream to demonstrate the viability of
the business model. An excellent response would combine multiple business
models resulting in a hybrid business model that is capable of generating different,
independent revenue streams for a startup.
The Candidate is expected to conduct a thorough risk assessment of the multi-

sided market business model and highlight its weaknesses and strengths.
Moreover, the Candidate is expected to use real-world examples to illustrate their
point. The successful Candidate would be expected to highlight the necessity for a
multi-sided market having to grow all sides of the market in lockstep and be
cognisant of the risk of falling short on satisfying one side of the market. An
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excellent response would include a detailed risk mitigation strategy on how to

address the biggest risk factor of a multi-sided market platform.
Question 5
a) Discuss which strategy yields the highest benefits on group-level when
the cost of competing for market share is high on individual level. (5
marks)
b) Explain how competition drives innovation in relation to resources
available. (5 marks)

a) The Candidate is required to discuss the theory of collaboration,
competition, and competitive collaboration as set out in Chapter 6 of the
subject guide and demonstrate the ability to distill the best strategy possible
as a result. A good answer would include contrasting the key principles of
collaboration with the key principles of competition in the context of the
question. An excellent answer would include an illustration of the
Candidate’s strategy similar to the Prisoner’s Dilemma including an outline
of all possible costs and opportunity costs involved.
b) The Candidate is expected to demonstrate a fundamental understanding of
the dynamics between the concept of resource availability and innovation.
A good answer would include a discussion as to why people opt for
coopetition although they may be competitors in a market. It is further
required to explain why access to resources is important for organisms and
how that necessity impacts the decision making both on individual and on
group level. An excellent answer would include a cost-benefit analysis of
the same strategy in two different scenarios.
Question 6
a) What is the difference between the value proposition (VP) and the
unique selling proposition (USP)? (5 marks)
b) Explain what each of the blocks of the Business Model Canvas by
Osterwalder should be used for. (5 marks)

a) The Candidate is required to explain the differences between a value
proposition (VP) and the unique selling proposition (USP). A value
proposition represents the value a company promises to deliver to a
customer. It is also a statement that introduces the company’s product or
services. It summarises what the company stands for and why the customer
should buy the product. The value proposition should be an easy to
understand and brief statement (Twin 2019). The Unique Selling
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Proposition (USP), also called Unique Selling Point (USP), refers to any
factor or aspect of a product or a service that differentiates it from the
competition and also highlights it’s unique benefit to the customers. It
should answer the question: “How is the product or service different from
that of your competitors?” Taking the preceding competitor analysis into
account this should not be a difficult task. In the article Unique Selling
Proposition (USP) by Entrepreneur Europe (2019) the authors recommend
for the business owner to take a step back and put themselves into his
customers' shoes.
b) The Candidate is expected to be cognisant of each of the building blocks of
the Business Model Canvas developed by Alexander Osterwalder. A good
answer would entail all a description of all the building blocks and its
purpose. An excellent answer would include a sample business idea for
which each of the building blocks will serve for illustrative purposes.
Question 7
a) You have been hired as a startup consultant by a startup that is building
an invitation-only audio-chat social networking app. They are now
looking to break into the market of your home country. Your initial task
is to size up the market. Justify which methodologies you would
choose. (5 marks)
b) Your client is now looking to develop a strategy to grow the market
share of the female 16 - 26 year-old customer market segment. What is
your route-to-market strategy? (5 marks)

a) The Candidate is required to develop a strategy to create a market
research design taking the tools and methods into account as discussed in
the course reader. A good answer would entail a detailed market research
plan including KPIs and an agile framework. An excellent answer would
include a detailed analysis of different methodologies in the context of the
particular business model of the startup and how these methodologies
relate back to the commercial objective of the startup.
b) The Candidate is required to develop a detailed strategy on the basis of the
tools and methods outlined in Chapter 9 and 10 of the subject guide. A
good response would include various targeted measures to unlock new
revenues from the specific target segment. An excellent answer would
include a critical discussion of the viability of the measures and methods
applied and what potential ethical considerations may have to be
considered that could potentially jeopardise the strategy.
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Question 8
a) The Minimum Viable Product (MVP) of the startup you are working for
is 85% complete but the company ran out of money. Without the MVP
the company is unable to launch. What strategies can you apply to
validate the business model at the current stage to attract new
investors? (5 marks)
b) The startup you work for was able to raise capital and successfully
complete the MVP and are now in the process of finding a market.
Discuss various marketing strategies and channels and which one you
would choose. (5 marks)
The material for this question is outlined in Chapters 5, 9, 10, 11 of the subject
guide.

a) The Candidate is required to develop a convincing strategy to validate the
business model. Strategies can range from modifying the business model,
combining various business models, including specific strategies such as
versioning or adopting a multi-tiered tiered approach to specific customer
development strategies. At this stage the Candidate is required to
demonstrate a high level of creativity in their thinking when it comes to
designing a well-rounded strategy in order to be convincing enough for
investors to secure an investment. A good answer would include a
combinatory approach touching on several strategies as outlined in
Chapters 5, 9, 10, and 11. An excellent answer would further include a
strategic roadmap including risk mitigation and alternative models to secure
new investors.
b) The Candidate is required to develop a customised roadmap by drawing
upon the various techniques and strategic approaches as outlined in the
subject guide. A good answer would include a logical approach outlining the
causality between several measures and their impact. It would be further
required to discuss the pros and cons of different channels and a clear
reasoning as to why certain channels have been selected. An excellent
answer would also include a discussion of additional risk factors including a
risk mitigation strategy.
Question 9
a) You are a startup consultant and your client, a newly established
African haute couture platform is looking to establish itself in the
Ghanaian market. You are now tasked to come up with a value
proposition geared towards the local market. (5 marks)
b) One year later, the new business took off and the haute couture
platform is now looking to diversify its revenue streams. You are tasked
to develop three additional revenue streams including new value
propositions. (5 marks)
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The Candidate is required to develop a compelling value proposition as for the
haute couture platform established in Africa by taking into account not only the local
market conditions but also the specific target market in a continent with a population
that has an exceptionally young median age (below 20). A good answer would
include the thought process of how the value proposition has been developed.
Thoughts should be given to the preceding market research strategy and how
conclusion of the same can be drawn in support of developing a value proposition.
An excellent answer would also include a discussion about how a value proposition
can effectively turn a prospect customer into a paying customer. Further, the
Candidate should clearly identify who the customers are, what their main problems
are.
The Candidate is required to build upon their developed value proposition and
enhance the proposition by diversifying its target market. It is required to develop
additional revenue streams in line with the new value propositions and make use of
the various techniques as set out in the subject guide. A good answer would include
additional revenue streams that include adjacent verticals of a fashion platform
which can be easily integrated. An excellent answer would further take the specific
market conditions into consideration and include a more horizontal approach
addressing different target markets beyond the adjacent markets. Creative thinking
and a business savvy mindset will be rewarded.
Question 10
a) The platform management is looking to raise venture capital. The pre-
money valuation is $30,000,000 with two co-founders holding 30% of
the shares each and two investors holding 20% respectively. Now, the
platform receives a venture capital injection of $10,000,000. 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? (8 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. (7 marks)
The material for this question is outlined in Chapter 15

a) The successful Candidate is required to produce the following results:
i.post-money valuation: $40,000,000
ii.Founder A: 22.5%, $9,000,000; Founder B: 22.5%; $9,000,000
iii.Venture capital firm: 25%, $10,000,000
b) The Candidate is expected to describe the five most required skill sets the
company in the present case would require and detail the background and
skill set each advisory board member would bring to the table. For a good
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answer the Candidate is required to highlight the potential short falls of the
company upon the venture capital injection and opine as to why the capital
injection would create a shortfall in skills with the company. An excellent
response would also include a future outlook of how the advisory board
composition may add value in its entirety including a potential draft strategy.
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MN3194 Entrepreneurship – Zone B
Important note
relevant section.
Comments on specific questions

Question 1
a) Describe what Drucker means by ‘Creative destruction’. (5 marks)
b) Discuss how entrepreneurship can advance technological
advancement. (5 marks)

a) The Candidate is expected to explain Drucker touches on the concept of
‘Creative destruction’ and contrast the concept with other definitions as set
out in the subject guide in order to build a more contextual picture of
Drucker’s views. A good answer would touch on the theory of economy and
society which sees change as normal and indeed as healthy. A good
answer would further explain why doing something different is better than
doing what is already being done following Drucker. An excellent answer
would include a discussion as to what extent entrepreneurs are involved in
the actual process of innovation or whether entrepreneurs only utilise the
process of innovation in order to pursue their commercial objective.
b) The Candidate is required to demonstrate a comprehensive understanding
as to why and how entrepreneurship in general contributes to technological
advancement. A good answer would include a brief case study where a
certain piece of technology is being discussed which has advanced
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primarily through entrepreneurship as discussed in the subject guide. An

excellent answer would also include a discussion of the dynamics between
technological advancement and entrepreneurship and which one of the two
forces drives the other.
Question 2
a) Discuss how private sector development can be facilitated through
entrepreneurship. (5 marks)
b) Discuss how economic growth rates are correlated with innovation
performance levels in EU member states. (5 marks)

a) The Candidate is expected to demonstrate a comprehensive understanding
as to how the public sector can facilitate private sector development
through fostering entrepreneurship. A good answer would include a
discussion highlighting the relationship between entrepreneurship,
innovation, and the motivation for entrepreneurship in correlation with the
level of economic development of the countries of the European Union (EU)
as set out in the subject guide. An excellent answer would further include
the key elements of an entrepreneurship ecosystem including the economic
and political conditions required for entrepreneurs to set up businesses and
also what deters entrepreneurship.
b) The Candidate is required to touch upon the case study about the
European Union as described in the paper titled ‘The Role of Innovative
Entrepreneurship in the Economic Development of EU Member Countries’
(Crudu 2019) in Chapter 2 of the subject guide. A good answer would
include a discussion about the different factors that drive innovation
performance levels across various EU member states and why these can
differ. An excellent answer would include how economic growth rates are
correlated with innovation performance levels across various EU member
states and how the key findings of the study could potentially mean for
policy makers looking to implement entrepreneurship policies as a result.
Question 3
a) Discuss what motivates people to become social entrepreneurs?
(5 marks)
b) Discuss how one of the key barriers for growth for social entrepreneurs
can be overcome. (5 marks)

a) The successful Candidate is expected to discuss the different motivations
as to why people decide to become a social entrepreneur and how social
entrepreneurship differs from for-profit entrepreneurship. A good answer
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would include a deep dive into the motivational aspects of social

entrepreneurship in particular in the context of the current threats the global
community faces. This could range from sustainability, geopolitical conflicts,
or simply environmental topics. An excellent answer would further link
Schumpeter’s concept of ‘Creative destruction’ with the impetus of creating
social good resulting in ‘creative social destruction’ and outline its
transformational benefit to society.
b) A good answer would include a discussion about the key challenges social
entrepreneurs face and how those can potentially be overcome. A critical
reflection on the paper by Hirzel (Harvard Business Review, 2013) is
welcomed as part of the discussion as well as an outline of the different
challenges the three major variations of hybrid organisations face in
accordance with definitions of the Schwab Foundation (2019). An excellent
answer would also include a discussion as to why social enterprises are
too small to support the growth they need and a compelling strategy on how
social entrepreneurs can source and utilise external support.
Question 4
a) You are tasked with implementing two key performance indicators to
measure social entrepreneurship. Justify your choices. (5 marks)
b) Develop a business model based on the Four Factor Value Matrix and
discuss each factor. (5 marks)

a) The successful Candidate is required to develop a matrix to measure social
entrepreneurship on the basis of the Four Factor Value Matrix (Kuppers,
2016) as well as on the guidelines as set out in the subject guide. A good
answer would include two key performance indicators supported by a
discussion as to why those particular indicators have been chosen. An
excellent answer would also take a risk mitigation strategy into account.
b) The Candidate is required to explain the Four Factor Matrix (Kuppers,
2016) and then develop a business model on the basis of the examples as
set out in the subject guide. A good answer would include a compelling
argument as to why the business model has been chosen as well as why
the specific market has been selected. It is required for the Candidate to
outline at least two different revenue streams including two different cost
structures. An excellent answer would include a detailed risk mitigation
strategy for each of these outlined revenue streams as well as explain the
inherent human need the business model intends to address.
Question 5
a) Discuss which strategy yields the highest benefits on the individual
level when a business competes for market share. (5 marks)
b) Explain how Darwin’s principle ‘survival of the fittest’ can be integrated
in the strategy decision making process of a business. (5 marks)
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a) The Candidate is required to propose the best strategy possible a business
should potentially adopt when it competes with other businesses for market
share in exactly the same market. As set out in the subject guide there are
different concepts available based on the theories of collaboration,
competition, and competitive collaboration which need to be sufficiently
applied by the Candidate. A good response would include a brief case
study to which the above theories will be applied to illustrate the point. An
excellent answer would further include a potential strategic framework
including a project time horizon with various trigger conditions for each
individual theory.
b) A good answer would include how Darwin’s principle ‘survival of the fittest’
can be integrated in the strategy decision making process of a business
when including potential trigger conditions. As set out in the subject guide,
Darwin’s concept is directly applicable to the market a business operates in.
An excellent answer would include how a business can utilise Dawin’s
principle and discuss how a business can develop a set of strategies to
retain access to resources compared to individual organisms.
Question 6
a) What distinguishes the unique selling proposition (USP) from the value
proposition (VP)? (5 marks)
b) Discuss how an entrepreneur can apply the model of resource
equivalence to gain a competitive advantage over a competitor. (5
marks)

a) The Candidate is expected to outline the difference between a unique
selling proposition (USP) and a value proposition (VP) by using an example
of their choice. A good answer would explain the exact difference between
a USP and a VP by using an example the Candidate is free to introduce to
his response. An excellent answer would also include a discussion where
both concepts overlap and why people oftentimes confuse the two
concepts.
b) A good answer would include a discussion about the concept of resource
equivalence by Bergena and Peteraf (2002) on the basis that a firm can still
have a competitive advantage over the competition despite having a high
resource equivalence with a competitor when it comes to satisfying
customer’s needs. The Candidate is expected to draw up a resource
equivalence matrix and highlight how the concept can be utilised by an
entrepreneur in his effort to gain a competitive advantage. An excellent
answer would also include what can be learned through the resource
equivalence matrix both about the competition, the market, and about one’s
own business.
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Question 7
a) You got hired by a startup that is selling customised one-off travel
insurances through a mobile phone app. Your initial task is to size up
the market of your home country. Discuss which methodologies you
would choose. (5 marks)
b) The startup is now looking to develop a strategy to target the 29 - 39
year-old digital nomad segment. What is your route-to-market strategy?
(5 marks)
The material for this question is outlined in Chapter 8, 9, and 10 of the subject
guide.

a) The Candidate is required to develop a market research strategy including
various techniques and tools as set out in the subject guide. A good answer
would include a step-by-step roadmap including relevant data points and a
discussion about the underlying reasoning as to why these data points and
segments have been choses. An excellent answer would include a detailed
explanation and what conclusions can be drawn from the research on how
the data relates to the commercial objective of the startup.
b) A good answer would include how this particular market segment can be
targeted and what methods can be applied to generate revenues from this
particular segment. A good answer would further include the concept of
Customer Development and how the concept can be utilised in order to
start testing various hypotheses in the target segment. An excellent answer
would further illustrate the entire process of Customer development,
Hypothesis testing, and Customer validation as set out by Blank and Dorf
(2012) and Majaski (2019).
Question 8
a) The Minimum Viable Product (MVP) of your startup is 50% complete but
one investor pulled out leaving the company in financial distress. A
local accelerator is able to provide financing provided the MVP has
been validated. What is your market validation strategy? (5 marks)
b) Your startup has joined the accelerator cohort and is looking to take
the product to the market. Develop a three-step route-to-market
strategy. (5 marks)
The material for this question is outlined in Chapters 8, 9, and 10 of the subject
guide.

a) The Candidate is required to outline a detailed step-by-step market
validation strategy including the reasoning for each step. A particular focus
would have to be given how an accelerator can enhance that process. A
good answer would include a bullet point roadmap for the market validation
strategy including the potential value add of an accelerator. An excellent
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answer would include a potential risk mitigation strategy and one alternative
roadmap.
b) The Candidate is required to develop a three-step route-to-market strategy
by making references to the methods outlined in the subject guide. It is
expected to make references in particular to the concepts of Customer
development, Hypothesis testing, and Customer validation as set out by
Blank and Dorf (2012) and Majaski (2019). A good answer would include
various customer relationships strategies and the underlying reasoning for
each step. An excellent answer would further include a risk mitigation
strategy and outline alternative pathways for each of the three steps.
Question 9
a) You joined a startup that brokers sharia-compliant Islamic financial
products to residents in the USA. You are now tasked to come up with
a value proposition geared towards the Islamic community. Give two
examples. (5 marks)
b) One year later, the startup took off and the platform is now looking to
diversify its revenue streams. You are tasked to develop a new unique
selling proposition (USP). (5 marks)
The material for this question is outlined in Chapters 8, 9, and 12 of the subject
guide.

a) A good answer would include two compelling value propositions geared
towards the specific target market which is based within a non-Islamic
cultural environment. Special consideration should be given to the fact that
members of the Islamic community in the USA are unable to use financial
products available in the USA. An excellent answer would also address an
additional dimension between the non-Islamic and the Islamic cultural
context and include that in the USP such as gender, faith, or family.
b) A good answer would include the business success as part of the USP in
order to enhance the level of credibility of the platform and how this could
potentially unlock further revenue streams. An excellent answer would also
include additional inter-cultural dimensions and carefully incorporate those
into the USP. Perhaps looking into adjacent cultural verticals of the US
American society could be included.
Question 10
a) The startup management is looking to raise venture capital. The pre-
money valuation is $10,000,000 with two co-founders holding 40% of
the shares each and two investors holding 10% respectively. Now, the
platform receives a venture capital injection of $10,000,000. 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?
17
iii. How much equity holds the venture capital firm in % and $ after
the capital injection? (8 marks)
b) The platform is looking to scale into North Africa and is looking to form
an advisory board. What types of advisors would you recommend and
justify your decision? (7 marks)

a) The successful Candidate is required to produce the following results:
i. post-money valuation: $20,000,000
ii. Founder A: 20%, $4,000,000; Founder B: 20%; $4,000,000
iii. Venture capital firm: 50%, $10,000,000
b) The Candidate is expected to describe the most required skill sets the
company in the present case would require breaking into the North African
market and detail the background and skill set each advisory board
member would bring to the table. For a good answer the Candidate is
required to highlight the potential short falls of the company upon the
venture capital injection and opine as to why the capital injection would
create a shortfall in skills with the company. An excellent response would
also include a future outlook of how the advisory board composition may
add value in its entirety including a potential draft strategy for the North
African market.
18

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Examiners’ commentaries 2021

Examiners’ commentaries 2021

What the examiners are looking for

Beginning: present the main argument in the introductory paragraph.

Examination revision strategy

Many candidates are disappointed to find that their examination performance is

Examiners’ commentaries 2021

MN3194 Entrepreneurship – Zone A

Comments on specific questions

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on productivity as set out in the subject guide. An excellent answer would

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Candidates are expected to explain how economic growth rates correlate to

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would also include a discussion of Schumpeter’s concept of ‘creative destruction’

Candidates are expected to initially contextualise the problem many social

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The Candidate is expected to conduct a thorough risk assessment of the multi-

excellent response would include a detailed risk mitigation strategy on how to

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Examiners’ commentaries 2021

MN3194 Entrepreneurship – Zone B

Comments on specific questions

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primarily through entrepreneurship as discussed in the subject guide. An

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would include a deep dive into the motivational aspects of social

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Reading for this question

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