Level 6
Demonstrate Entrepreneurial skills
July 2025
NEHEMIAH TRAINING AND EDUCATION CENTER WRITTEN
ASSESSMENT
3 HOURS
Candidate information
Name…………………………………………………………………………………
Adm no……………………………………date…………………sign…………
Instructions
1. The paper consists of TWO sections; A & B
2. Answer All questions in the section A and any THREE in section B
SECTION A
Answer all questions from this section
1. Mention THREE functions of the executive summary in a business plan. (3 marks)
2. Give THREE reasons why self-assessment is important before starting a business. (3
marks)
3. Name TWO examples of internal sources of motivation for entrepreneurs. (2 marks)
4. List FOUR forms of business ownership recognized in Kenya. (4 marks)
5. Identify FOUR ways through which ICT supports business growth. (4 marks)
6. Mention FOUR problems commonly encountered by Small Scale Enterprises (SSEs). (4
marks)
7. State any TWO advantages of partnerships over sole proprietorships. (3 marks)
8. What is the purpose of a management/organizational plan in a business proposal? (3
marks)
9. Name THREE elements of effective communication in entrepreneurship. (3 marks)
10. List any TWO government agencies that support entrepreneurs in Kenya. (2 marks)
11. Identify FOUR personal characteristics of a successful entrepreneur. (4 marks)
SECTION B
Answer any THREE questions from this section
12. a) In Eldoret town, a carpenter who started his workshop under a tree 10 years ago now
owns a medium-sized furniture manufacturing workshop. He employs 20 workers,
receives bulk orders, and plans to open branches in neighboring towns. Identify the
business life cycle stage he’s currently in and analyze the characteristics and challenges
he is likely to face at this stage. (10 marks)
b) Peter operates small electronics shop in Busia. He begins using WhatsApp status
updates and a Facebook page to post daily offers, respond to customer inquiries, and
accept M-Pesa payments. After six months, his sales have increased significantly.
Explain how Peter has integrated ICT into his business model and analyze the specific
roles ICT has played in improving his business growth and customer engagement. (10
marks)
13. a) In a national conference on youth employment, the keynote speaker emphasizes that
small-scale entrepreneurs are key to unlocking Kenya’s Vision 2030 goals. She gives
examples of SMEs in value addition, ICT, and the creative economy that are generating
jobs and exports. Critically examine how entrepreneurs contribute to national
development in Kenya. (10 marks)
b) After multiple failed job applications, Wasonga decided to start a boda-boda business
using savings from his college HELB loan. Though modest, his income grew steadily.
He then invested in two more bikes, hired other riders, and began supporting his siblings'
education. Using Wasonga’s journey, explain how self-employment can be a pathway to
financial independence and wealth creation for youth, especially in informal sectors. (10
marks)
14. a) Mr. Waswa recently lost his job as a tour guide in Naivasha due to declining tourist
visits. He now wants to start a business but doesn’t know what kind. He interacts with
many people daily and spends time observing businesses in the market. Describe FIVE
possible sources he can use to generate business ideas and how he can use these to
identify a suitable venture in his community. (10 marks)
b) An investor is considering opening a maize milling business in Siaya County. Before
proceeding, she wants to conduct an environmental scan to understand potential risks and
opportunities. Identify and explain FIVE key factors she should consider when
evaluating the business environment to determine if the location is suitable for the
venture. (10 marks)
15. a) An entrepreneur wants to start a small maize milling business in the rural area and
has been advised to register with relevant authorities to comply with policies that
govern Small Scale Enterprises. Explain any FIVE government policies or regulations
that affect the establishment and operation of Small-Scale Enterprises (SSEs) in Kenya.
(10 marks)
b) Linet started a small soap-making business in her local community but is already
facing challenges such as low sales, lack of skilled labor, and limited access to credit.
Describe FIVE common problems faced when starting and running Small Scale
Enterprises, using Linet’s business as a reference point. (10 marks)
