1. What is the main purpose of a social enterprise?
To solve social or environmental problems while being financially sustainable
To operate only as a charity that depends entirely on donations
To avoid paying taxes by using a vague mission
To maximize profits for private owners only
Explanation:
A social enterprise combines a social or environmental mission with business activities so it can fund its work and continue operating without relying only on donations.
2. Which statement best describes a clear mission statement for a Kenyan youth-run social enterprise?
To postpone planning until we have more members
To improve clean water access in our local Nairobi estate by building and maintaining community taps
To sell as many products as possible across East Africa
To copy other successful businesses without changes
Explanation:
A good mission is specific about the social problem, the location, and what the enterprise will do; this example is clear and actionable for a youth-run initiative.
3. When planning a social enterprise, why is it important to identify stakeholders?
Stakeholders should be ignored to speed up decisions
Stakeholders always provide free money
Identifying stakeholders helps in understanding who is affected and who can support or block the project
Only external consultants are stakeholders
Explanation:
Knowing stakeholders (beneficiaries, funders, local leaders) helps design services that meet needs and build partnerships that support the enterprise.
4. Which method is best for a 15-year-old team to find out if their social product is needed in a Kenyan community?
Wait until after launching nationally
Carry out simple surveys and talk to community members and local leaders
Assume everyone will like it because friends did
Only post about it on international websites
Explanation:
Talking directly with community members and doing basic surveys provides real information about needs and helps design a product that actually helps people.
5. What is a value proposition in social enterprise planning?
A legal document filed with the court
A plan to spend all donations on events
A government tax form
A short description of how your product or service benefits the community and is different from others
Explanation:
The value proposition explains the specific benefit your enterprise offers and why people should choose it over other options.
6. Which of these is a sustainable revenue source for a Kenyan social enterprise?
Relying solely on an expired grant application
Only expecting one-off donations every year
Taking money from community members without transparency
Selling affordable services or products to customers while reinvesting profits in the mission
Explanation:
Generating income from sales creates a steady revenue stream that can support the mission over time, making the enterprise more sustainable.
7. What is the difference between outputs and outcomes when measuring impact?
They are the same and can be used interchangeably
Outputs are long-term changes; outcomes are the number of products made
Outputs are the activities or products delivered; outcomes are the changes those activities create for people
Outcomes are financial reports; outputs are marketing plans
Explanation:
Outputs (e.g., number of workshops) are immediate results, while outcomes (e.g., improved skills) show the real effect on beneficiaries.
8. Which budgeting item is a fixed cost for a small social enterprise in Kenya?
Monthly rent for a workshop space
Pay-per-use transport for deliveries
Cost of raw materials that change with sales
Casual labour paid per event
Explanation:
Fixed costs stay the same regardless of how much you produce or sell; rent is typically a fixed monthly expense.
9. Why should a social enterprise pilot its project before scaling up?
Piloting wastes time that should be used to expand quickly
Pilots are only for large multinational companies
To test ideas, learn what works in the local Kenyan context, and reduce the risk of failure when scaling
Because pilots guarantee immediate profit
Explanation:
Pilots let teams try their ideas on a small scale, gather feedback, and fix problems before investing more resources.
10. Which legal form might be suitable for a community-run social enterprise in Kenya focused on member benefits?
A foreign multinational company
A private sole trader operating secretly
An unregistered informal group that never communicates with members
A cooperative society registered under the Cooperative Societies Act
Explanation:
Cooperatives are designed for member-based enterprises where members share benefits and decision-making; they are common in Kenya for community initiatives.
11. What is a simple indicator a youth social enterprise could use to measure success in reducing school absenteeism?
Percentage decrease in days absent among participating pupils over a term
Amount of money spent on snacks
Number of unverified stories received
Number of social media followers
Explanation:
This indicator measures the actual change (outcome) the project aims for and is specific, measurable, and relevant to absenteeism.
12. Which partnership would most likely help a Kenyan social enterprise provide vocational training to youth?
Working with a local technical training institute and county youth office
Only relying on anonymous internet advice
Avoiding local partners to keep control
Partnering with an unrelated online gaming company abroad
Explanation:
Local training institutes and county offices have facilities, expertise, and networks that can support youth vocational training effectively.
13. What does ‘break-even’ mean for a small social enterprise?
When donations stop completely
When total income equals total costs so the enterprise is not losing money
When profits become so high you stop working
When all volunteers leave the project
Explanation:
Break-even is the point at which revenue covers all costs; reaching it is important for financial sustainability.
14. Which pricing strategy helps a social enterprise balance affordability and sustainability?
Never charging anything because people can pay
Using a sliding-scale price or cross-subsidising so low-income users can access services
Setting the highest possible price regardless of the community
Always undercutting competitors until you run out of money
Explanation:
Sliding-scale pricing and cross-subsidy models allow access for those who need it while keeping the enterprise financially sustainable through other paying customers.
15. What role does a simple business model canvas play in planning a social enterprise?
It replaces the need to talk to beneficiaries
It helps summarise key parts of the plan (customers, value, costs, revenue) on one page
It is a legal contract with partners
It is a painting used for fundraising events
Explanation:
The business model canvas is a practical tool to capture the main elements of your enterprise, making planning and communication easier.
16. Which risk should a social enterprise plan for when operating in rural Kenya?
Transport difficulties during rainy seasons affecting deliveries
Having too many volunteers wanting to help
Receiving too many awards
Sudden change in colouring of brand logo
Explanation:
Seasonal transport problems are a real operational risk in rural areas and need contingency plans such as flexible schedules or local distribution points.
17. Why is transparency important when managing funds in a social enterprise?
Transparency scares away supporters
It builds trust with beneficiaries, donors, and partners and helps prevent misuse of funds
It makes accounting more difficult
It allows secret spending
Explanation:
Clear records and open reporting show stakeholders that money is used responsibly, which is crucial for reputation and future support.
18. Which monitoring activity would help improve a social enterprise delivering clean cookstoves in Kenya?
Visiting households to check stove use, satisfaction, and any problems after installation
Counting only the number of stoves made without follow-up
Only posting photos on social media
Removing stoves from homes to test them again
Explanation:
Follow-up visits give information on actual usage, benefits, and issues, which helps improve product design and service delivery.
19. What is an example of an impact investor’s interest in a Kenyan social enterprise?
Providing capital to enterprises that generate measurable social benefits as well as financial returns
Only wanting a fast, maximum financial return no matter the harm
Demanding illegal business practices
Giving money only if the enterprise operates secretly
Explanation:
Impact investors seek both social/environmental impact and financial sustainability; they support ventures that measure and report impact.
20. Which SMART goal is appropriate for a youth-led enterprise addressing school nutrition in a Nairobi slum?
Only focus on advertising rather than meals
Serve unlimited meals without tracking numbers
Improve nutrition someday with no plan
Increase the number of nutritious school lunches served to 300 pupils each school day within the next 6 months
Explanation:
This goal is Specific, Measurable, Achievable, Relevant, and Time-bound (SMART), making it useful for planning and tracking progress.
21. Which is an ethical consideration when running a social enterprise in a Kenyan community?
Promising services you cannot deliver to attract donors
Respecting local customs, obtaining consent, and being honest about what you can do
Using private information of beneficiaries for profit
Ignoring community leaders to show independence
Explanation:
Ethical practice includes respect, consent, and honesty, which protect beneficiaries and maintain the enterprise's reputation.
22. How can social media help a Kenyan social enterprise reach more customers or supporters?
By sharing stories, photos, and simple updates that show impact and attract volunteers or customers
By never posting anything and hoping people find you
By selling contact lists illegally
By posting false success stories to get quick funds
Explanation:
Honest, regular social media updates can increase awareness, attract supporters, and show the real results of your work.
23. What is the importance of a simple risk management plan for a school-based social enterprise?
To avoid any form of planning
To make the project secretive
To identify likely problems and set actions to reduce their chance or impact
To ensure nobody asks questions about the project
Explanation:
Risk planning helps the team prepare for and respond to problems (e.g., funding gaps, equipment failure) so the enterprise can continue operating.
24. Which funding mix is healthy for a small social enterprise in Kenya?
A mix of earned income, small grants, and local partnerships
Only relying on prize money from competitions
Unlimited borrowing from friends without records
100% dependent on a single donor forever
Explanation:
Diversified funding reduces risk: sales provide steady income, grants can support growth, and partnerships add resources and credibility.
25. Why is community involvement important when designing a social enterprise project in Kenya?
Community involvement slows everything down so it should be avoided
It allows outsiders to take control
It guarantees immediate profit without effort
It ensures the project fits local needs, increases ownership, and improves chances of success
Explanation:
Involving community members leads to solutions that are relevant, accepted, and more likely to be sustained.
26. What is prototyping in the context of social enterprise planning?
Posting a flyer without producing anything
Building a simple version of your product or service to test with users and get feedback
Selling copied products from other companies
Creating the final large-scale product without testing
Explanation:
A prototype allows you to learn quickly what works and make improvements before investing more time and money.
27. Which is a good exit or sustainability plan for a youth social enterprise after initial support ends?
Keeping everything secret so nobody else can continue
Relying only on one temporary sponsor forever
Training local community members to run the project and building local revenue sources to continue activities
Shutting down immediately and abandoning beneficiaries
Explanation:
Sustainability plans that build local capacity and income sources help the project continue when external support ends.