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NATIONAL OPEN UNIVERSITY OF NIGERIA

PLOT 91, CADASTRAL ZONE, NNAMDI AZIKIWE EXPRESSWAY, JABI, ABUJA

FACULTY OF MANAGEMENT SCIENCES

DEPARTMENT OF ENTREPRENEURIAL STUDIES

       2015_2 EXAMINATION

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COURSE CODE: ENT301

CREDIT UNIT: 2

COURSE TITLE: SOCIOLOGY OF ENTREPRENEURSHIP

TIME ALLOWED: 2 HRS

INSTRUCTIONS:

1. Attempt Question One (1) and any other two (2) questions

2. Question 1 carries 30 marks, while the other questions carry 20 marks each

3. Present all points in coherent and orderly manner

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Question 1

1. Critically discuss the two (2) major types of entrepreneur as investigated by Smith in 1967. 4 marks
2. List and explain the negative perceptions about entrepreneurs of the old. 8 marks.
3. Are the perceptions explained in 1b real? If yes or no, clarify them. 8 marks
4. Other than the perceived social status of the entrepreneur, there are the basic personality traits that make the entrepreneur distinct from the general population. List and discuss them. 10 marks

Question 2

1. List the four (4) important descriptions of factors that determine personality that have been proposed by Murray and Kluckhohn and explain the group membership determinants. 12 marks
2. State the two (2) roots of the economic entrepreneurship theory. 8 marks

Question 3

1. Explain Sociological Entrepreneurship Theory. 5 marks
2. Describe anthropological entrepreneurship theory. 7 marks
3. How does sociological entrepreneurship theory defer from anthropological entrepreneurship theory? 8 marks

Question 4

1. List and explain the Factors that influence opportunity-based entrepreneurship. 10 marks

• State and explain the factors that influence resource-based entrepreneurship. 10 marks

Question 5

1. Who is an entrepreneur? 5 marks
2. Explain ‘entrepreneur’ as a risk bearer. 5 marks
3. Explain ‘entrepreneur’ as an innovator. 5 marks
4. State and explain the functions of an entrepreneur. 5 marks

ANSWERS

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QUESTION 1

1(a) Two Types of Entrepreneurs (Smith, 1967) – 4 Marks

Smith (1967) identified two major types:

1. Craftsman Entrepreneur

• Has technical skills and experience 
• Focuses on production rather than expansion
• Conservative and resistant to change

2. Opportunistic Entrepreneur

• Innovative and growth-oriented
• Seeks new opportunities and expansion
• Open to change and risk-taking

1(b) Negative Perceptions of Entrepreneurs (Old View) – 8 Marks

1. Exploitative 

Seen as taking advantage of workers

• Greedy 

Focused only on profit

• Risky and Unstable 

Business seen as uncertain

• Unethical 

Linked with corruption or shortcuts

• Self-centered 

Interested only in personal gain

1(c) Are These Perceptions Real? – 8 Marks

These perceptions are largely outdated and incorrect:

• Modern entrepreneurs contribute to economic growth and job creation 
• Many are highly educated and innovative. 
• Ethical entrepreneurship is now emphasized
• Risk-taking is calculated, not reckless 

1(d) Personality Traits of Entrepreneurs – 10 Marks

1. Risk-taking Ability 

Willingness to take calculated risks

• Innovativeness 

Ability to create new ideas

• Self-confidence 

Belief in personal ability

• Achievement Motivation 

Desire to succeed

• Independence 

Preference for self-direction

 

QUESTION 2

2(a) Personality Determinants (Murray & Kluckhohn) – 12 Marks

Four Determinants

1. Biological Factors 

Genetic and physical traits

• Cultural Factors 

Values, beliefs, norms

• Family Factors 

Upbringing and parenting

• Group Membership Factors (Explain)

Group Membership Determinants

• Personality influenced by social groups (peers, work groups, religion)
• Shapes attitudes, behavior, and values
• Example: Entrepreneurial networks encourage risk-taking

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2(b) Roots of Economic Entrepreneurship Theory – 8 Marks

1. Classical Economic Theory 

Focus on production, distribution, and profit

• Neo-Classical Theory 

Emphasizes market equilibrium and resource allocation

QUESTION 3

3(a) Sociological Entrepreneurship Theory – 5 Marks

• Focuses on social context influencing entrepreneurship
• Includes family, religion, social networks
• Suggests entrepreneurship is shaped by social environment 

3(b) Anthropological Entrepreneurship Theory – 7 Marks

• Focuses on culture and traditions 
• Examines how beliefs and customs influence entrepreneurship
• Emphasizes cultural values and practices

3(c) Differences (8 Marks)

Sociological Theory	Anthropological Theory
Focus on social structure	Focus on culture
Emphasizes institutions	Emphasizes traditions
Looks at social groups	Looks at beliefs and customs

QUESTION 4

4(a) Factors Influencing Opportunity-Based Entrepreneurship – 10 Marks

1. Market Demand 
2. Technological Changes 
3. Government Policies 
4. Education and Skills 
5. Economic Environment 

4(b) Factors Influencing Resource-Based Entrepreneurship – 10 Marks

1. Access to Capital 
2. Human Resources 
3. Infrastructure 
4. Natural Resources 
5. Information and Technology 

QUESTION 5

5(a) Who is an entrepreneur? – 5 Marks

An entrepreneur is an individual who identifies opportunities, organizes resources, and takes risks to create and manage a business venture.

5(b) Entrepreneur as a Risk Bearer – 5 Marks

• Takes responsibility for business uncertainty
• Faces financial and operational risks
• Makes decisions under uncertainty

5(c) Entrepreneur as an Innovator – 5 Marks

• Introduces new products or services
• Improves processes
• Drives economic development

5(d) Functions of an Entrepreneur – 5 Marks

1. Risk-taking 
2. Innovation 
3. Resource Mobilization 
4. Decision-making 
5. Management and Coordination

QUESTION 1

1(a) Notes on Theories of Entrepreneurship (20 Marks)

i. Economic Entrepreneurship Theory

• Emphasizes economic factors as drivers of entrepreneurship
• Entrepreneurs respond to profit opportunities, market demand, and resource availability 
• Rooted in classical and neo-classical economics
• Focus on capital, labour, and production 

ii. Psychological Entrepreneurship Theory

• Focuses on individual mental traits and motivations 
• Entrepreneurs are driven by internal desires such as achievement and independence
• Behaviour shaped by personality and attitudes

iii. Personality Traits Theory

• Suggests entrepreneurs possess distinct traits such as:
  • Risk-taking
  • Self-confidence
  • Innovativeness
• These traits distinguish them from non-entrepreneurs

iv. Locus of Control

• Refers to belief about control over life outcomes
• Internal locus: entrepreneurs believe success depends on their effort
• External locus: outcomes depend on luck or external forces
• Entrepreneurs typically have internal locus of control 

v. Need for Achievement Theory

• Developed by David McClelland 
• Entrepreneurs have strong desire to achieve success and excellence 
• Prefer moderate risks and personal responsibility

1(b) Two Economic Factors Enhancing Entrepreneurship (10 Marks)

1. Access to Capital

• Availability of funds encourages business start-up
• Loans, grants, and investments boost entrepreneurship

2. Market Demand

• High demand for goods/services creates opportunities
• Encourages innovation and business expansion

QUESTION 2

2(a) Definition of Entrepreneur (2 Marks)

An entrepreneur is an individual who identifies business opportunities, organises resources, and takes risks to create and manage a venture.

2(b) Factors Affecting Entrepreneurship Growth in Nigeria (18 Marks)

1. Access to Finance 
2. Government Policies 
3. Infrastructure (power, roads) 
4. Education and Skills 
5. Technological Development 
6. Cultural Attitudes 
7. Market Availability 
8. Political Stability 
9. Corruption 

QUESTION 3

3(a) Evolution of Entrepreneurial Concept (5 Marks)

• Early Period (Cantillon) – entrepreneur as risk bearer
• Classical Economists – focus on production and profit
• Schumpeter – entrepreneur as innovator
• Modern View – entrepreneur as opportunity-seeker and manager

3(b) Cantillon’s Perspectives of Entrepreneur (15 Marks)

1. Risk Bearer

• An entrepreneur operates under uncertainty

2. Resource Organizer

• Combines factors of production

3. Arbitrageur

• Buys at low price, sells at high price

QUESTION 4

4(a) Primary Commodity Era (1914–1960) (10 Marks)

• Economy based on export of raw materials 
• Agriculture dominated (cocoa, palm oil, groundnuts)
• Limited industrial development
• Dependence on colonial trade

4(b) Import Substitution Era (1960–1983) (10 Marks)

• Focus on reducing import dependence 
• Establishment of local industries
• Government intervention in economy
• Protection of domestic industries through tariffs
• Challenges: inefficiency, poor management

QUESTION 5

5(a) Opportunity-Based Entrepreneurship Theory (6 Marks)

• Entrepreneurs identify and exploit market opportunities. 
• Focus on innovation and unmet needs
• Driven by demand and environmental changes

5(b) Resource-Based Entrepreneurship Theory (6 Marks)

• Emphasizes availability of resources (capital, skills, assets) 
• Entrepreneurs succeed based on access and use of resources

5(c) Four Factors Influencing Opportunity-Based Entrepreneurship (8 Marks)

1. Market Demand 
2. Technological Innovation 
3. Government Policies 
4. Fashion/Taste

In conclusion

Kindly note that the above practice questions and answers are not limited to the above questions and answers.

More practice questions and answers will bw updated from time to time. So do well to come back checking for more.

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