Introduction to Social Entrepreneurship

14 Grade 10 Community Service Learning questions on Introduction to Social Entrepreneurship, with worked marking schemes. 14 questions are available on this topic in full.

1. Question 1

   1 mark

   A school-based social enterprise that sells tree seedlings makes a surplus of Sh 20,000 in its first term. Which use of the surplus best supports the long-term survival of the enterprise?

   A. Donating all of it to a feeding programme in a neighbouring school

   B. Buying more seed and a water tank so that more seedlings can be raised next term

   C. Sharing all of it equally among the members as a reward for their work

   D. Keeping all of it in the bank untouched until the group finally closes down

   (1 mark)

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2. Question 2

   2 marks

   State two sources of start-up capital available to a youth social enterprise in Kenya.

   (2 marks)

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3. Question 3

   1 mark

   What mainly separates a social entrepreneur from a volunteer who helps at the same community project?

   A. The volunteer always works longer hours than the social entrepreneur

   B. The volunteer is always paid a salary for the work done

   C. The social entrepreneur carries the financial risk of running a venture that must earn its own income

   D. The social entrepreneur is not allowed to work together with other people

   (1 mark)

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4. Question 4

   2 marks

   Define the term 'social enterprise' and give one example of a social enterprise found in a Kenyan community.

   (2 marks)

   Marking scheme

   Award 1 mark for the definition and 1 mark for a valid example. Definition (1 mark): a business or venture that sells goods or services to earn its own income, but whose main purpose is to solve a social, economic or environmental problem in the community, with most of the surplus put back into that purpose (accept any wording carrying both the trading and the social-purpose elements). Example (1 mark): any TRUE-to-life example, such as a youth group making briquettes from farm waste and selling them cheaply; a women's group sewing and selling reusable sanitary towels for school girls; a group collecting and recycling plastic waste into fencing posts; a community water kiosk selling clean water at a low price; a group weaving baskets from water hyacinth. (2 x 1 = 2 marks)

5. Question 5

   1 mark

   A charity in Machakos gives out free water tanks paid for by donors. Nearby, a social enterprise sells low-cost tanks and uses the profit to supply more tanks. What is the main advantage the social enterprise has over the charity?

   A. It is not required to keep any financial records

   B. It does not need a trading licence from the county government

   C. It can keep running even when donor funding comes to an end

   D. It reaches a larger number of households in its very first month

   (1 mark)

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6. Question 6

   3 marks

   Outline three ways in which a social enterprise can measure the social good it has done, rather than only the money it has made.

   (3 marks)

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7. Question 7

   4 marks

   Explain four personal qualities that a successful social entrepreneur should have.

   (4 marks)

   Marking scheme

   Award 1 mark for each quality correctly named AND briefly explained, to a maximum of 4. Any FOUR of: creativity - sees a new way of using what is already available, such as turning farm waste into fuel; empathy or concern for others - feels the problem faced by neighbours and wants it solved; willingness to take risks - puts own savings and time into an idea that may fail; persistence or resilience - keeps going when sales are low or the first attempt fails; good communication - able to persuade residents, leaders and customers to support the venture; honesty and integrity - handles the group's money openly and keeps records; ability to plan and manage resources - works to a budget and a timetable; teamwork - works with others rather than alone. (4 x 1 = 4 marks)

8. Question 8

   6 marks

   A women's group in Bungoma runs a social enterprise that sews reusable sanitary towels for school girls, but the enterprise is struggling. Explain three challenges such an enterprise is likely to face, and for each suggest one way of overcoming it.

   (6 marks)

   Marking scheme

   Award 1 mark for each challenge correctly explained and 1 mark for a solution that matches it, to a maximum of 3 challenges and 3 solutions. Any THREE matched pairs, for example: (a) Shortage of start-up capital for cloth and machines - members save together through a chama or table banking, or apply to a youth or women's enterprise fund. (b) Customers cannot afford the price - sell in smaller packs, set an affordable price, or arrange for schools and the county to buy in bulk. (c) Competition from cheap imported disposable towels - stress the saving from a towel that can be washed and reused, improve finishing and packaging. (d) Members lack sewing or costing skills - arrange short training with a local tailor or a nearby TVET institution. (e) Poor record keeping means the group cannot tell whether it is making a loss - keep a simple cash book and count stock every month. (f) Members are also busy with farm and family work - draw up a duty roster so production continues. (3 x 2 = 6 marks)

9. Question 9

   1 mark

   A social enterprise in Kakamega makes cooking briquettes from sugarcane waste. At the end of the year it reviews its performance. Which pair of results would best show that it is succeeding as a social enterprise?

   A. A large profit and a long list of donors willing to give more money

   B. Many employees and a newly purchased company vehicle

   C. A small trading profit and a fall in the number of trees cut for firewood in the village

   D. High sales and a large bank loan approved in its name

   (1 mark)

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10. Question 10

    1 mark

    Which behaviour best shows that a Grade 10 learner is thinking like a social entrepreneur?

    A. Copying a friend's tuck shop idea because that shop is already making money

    B. Noticing that girls miss lessons for lack of sanitary towels and starting a low-cost supply group

    C. Waiting for the county government to come and clear the rubbish at the market

    D. Choosing the idea that earns the highest profit, whatever it does to the river nearby

    (1 mark)

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11. Question 11

    5 marks

    Suggest five measures a school-based social enterprise can take to make sure it continues operating after the founding members leave school.

    (5 marks)

    Marking scheme

    Award 1 mark for each workable measure, to a maximum of 5. Any FIVE of: recruit and train learners from lower classes each year so that there is a succession; write down simple rules or a constitution showing how the group is run; keep proper written records of income, expenditure, customers and suppliers so a new team can take over; open a group bank account with more than one signatory; reinvest part of the surplus in tools, stock and equipment that remain with the school; appoint a teacher patron to provide continuity between classes; write down the process or recipe so that the knowledge does not leave with the founders; build steady relationships with regular customers and suppliers; hand over formally, with a report and stock-taking, at the end of each year. (5 x 1 = 5 marks)

12. Question 12

    1 mark

    A youth group in Homa Bay dries and packs omena for sale, and uses most of the surplus to pay school fees for orphaned children in the village. Which feature best shows that the group is running a social enterprise rather than an ordinary business?

    A. It does not keep records of its sales and expenses because it is a community group

    B. It earns income from trading but directs most of the surplus to solving a community problem

    C. It sells its products more cheaply than every other trader in the market

    D. It depends on donations from well-wishers in order to stay open

    (1 mark)

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13. Question 13

    1 mark

    A social enterprise in Kisumu makes and sells low-cost water filters to poor households in the lakeside villages. A town trader offers to buy the whole stock at once and resell it in the city at three times the price. Which decision best fits the purpose of a social enterprise?

    A. Stop selling the filters altogether, because a social enterprise is not allowed by law to make a profit

    B. Sell the stock to the trader, because the highest profit is always the best choice for any enterprise

    C. Sell the stock to the trader, because the village households can wait for a later batch

    D. Continue selling to the village households, because they are the people the enterprise exists to serve

    (1 mark)

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14. Question 14

    3 marks

    A youth group at the shores of Lake Victoria harvests water hyacinth and weaves it into baskets and mats for sale. Explain three ways in which this enterprise benefits the surrounding community.

    (3 marks)

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