Read the case study carefully and answer all the questions below CASE STUDY BEN KAUFMAN QUIRKY - Making Invention Accessible Ben Kaufman breaker, maker, founder and former CEO of Quirky (www. quirky. com) makes invention accessible. In 2009, Ben launched Quirky to break down barriers to the invention process and allow creative people all over the world to invent together. He has helped hundreds of everyday inventors bring their product ideas to life and forged partnerships with the worlds largest retailers to sell those products. While at Quirky, Ben worked to redefine the way the world thinks about product development and innovation. Passion for Inventing Ben started his entrepreneurial journey early while growing up in New York. He was, he says a terrible student. But it was as a teenager attending school where he developed his first invention. Ben wanted to listen to his iPod while in class while not drawing attention from the teacher. I went home and made a lanyard headphone that concealed the wires, he says. it looked like I was just wearing a keychain, when I was wearing my iPod. While probably not the best move from his grades, this event did sparkle a passion in Ben for innovation and inventing things. Ben soon recognized an opportunity to sell his invention to a larger market. He started his first business, Mophie, named after his golden retriever Molly and Sophie, to sell his mobile accessories. However, ben found that a good idea didnt mean it was easy to create a product. To get the $185,000, he needed to manufacture and distribute his product, he had to ask his parents to refinance their home. The risk paid off as Mophie was successful and grew into a full line mobile accessory, but Ben still thought about how challenging it was to bring his idea to Market. He thought about all of the innovative entrepreneurs with great ideas but lacking in capital to have their products built. Ben knew he was on to a new opportunity. Outsourcing the cost of doing business This inspired Ben to start Quirky, to help bring peoples inventions to life by asking people to submit ideas to the website. It does not matter how detailed or realistic, anyone can submit. Then, Quirky asks site visitors to vote and provide feedback on the ideas, so the inventors can perfect them. The best ideas, as decided by the market, get financed and put into production by Quirky. Instead of having to pay for the expenses of running the business, the investors get a portion of the profit while Quirky runs the business operations. This model is perfect for those who enjoy investing and creating, but would rather not take on the financial risk of starting and running a business. As of 2014, the company grew to almost 300 employees- with offices US, Hongkong and pushed almost 200 products to market that can be found in brick and mortar shops such as Best Buy, The Home Depot and Target. With this success, Quirky, has brought in over $175m dollars in venture funding to grow the company as well. As the company grows, the company has dubbed Ben The Worlds least important CEO to communicate the importance of the community that comes together to cultivate and fund innovation.

Source: Entrepreneurship Texas Review -The cost of Doing Business Chapter 26, Page 487 1.QUESTIONS [100 MARKS]

(a) Ben has all the characteristics of an Innovative entrepreneur. Compare the concept of innovative entrepreneur to that of imitative entrepreneur. [10 MARKS]

(b) As a Lead Entrepreneur, Ben has not forgotten the essence of team spirit which is crucial for the advancement of the venture Mophie to Quirky. Explain the importance of a team for a nascent enterprise. [10 MARKS]

(c) Explain how Schumpeters Gale of Creative Destruction concept in Entrepreneurship is relevant to this business context. [10 MARKS]

(d) Explain the different steps which Ben considered in changing your idea into an opportunity to ensure that the right products were being commercialized? [10 MARKS]

(e) According to you, what pricing strategy would be adaptable in this business context for the commercialization of this new mobile accessories and justify your answer. [10 MARKS]

(f) Identify 4 different ways by which Ben would use to protect his customers who are the inventors, intellectual Property (IP)? [8 MARKS]

(g) Define how the Cash Conversion cycle is important for Mophie and elaborate on its 3 key components as a means of business success. [12 MARKS]

(h) Using examples, differentiate between Venture Capitalists and Business Angels. [10 MARKS]

(i) Explain how a good Business culture is important to Ben for achieve success. [10 MARKS]

(j) Explain the importance of Business Accelerators and Business Incubators for the venture Quirky. [10 MARKS]