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In addition to the
above he is also
Change agent
Problem solver
Pace setter
Excellence seeker
Marketing executive
Concept promoter
2.
3.
4.
Resourcing
5.
Establishing an enterprise.
6.
7.
All these functions are known as entrepreneurial functions. The success and the quality of the output of the
performance of the entrepreneur depends on how well he performs these functions. Therefore these functions
performed describe the intensity fo the relationship fo the entrepreneur with the enterprise. For this reason, we can
say that the relationship between the entrepreneur and entrepreneurship can be described as that between the body
and the soul.
More revision on Entrepreneurial Functions
3. What are the unique characteristics of an entrepreneur?
4. Why is entrepreneurship important for a country?
Entrepreneurship is important for a country because entrepreneurship facilitates the rate of development of a country
by significantly contributing to the following factors.
Increasing productivity.
ii.
iii.
Economical
Physical
Political
Psychological
Spiritual
Social
To satisfy these needs, every human being is continuously engaged in a variety of activities. For performing these
activities, people need
continuous innovation
Production
Distribution
Maintenance
Modification
Improvement
in such and services to enable people to perform the required human activities. Thus the entrepreneurial
opportunities and human activities are positively associated in terms of nature, growth and continuity. In other words,
entrepreneurial opportunity lies in meeting human needs.
More revision on Entrepreneurial Pursuits and Human Activities
7. What are the social motives in entrepreneurial motivation?
Definition: Motivation is regarded as the inner state that energizes activities and directs or channels behavior
towards the goal. It can also be seen as a process that arouses action, sustains the activity in progress and that
regulates the pattern of activity.
The motives can be categorizes as social and psychological motives.
Few of the social motives are
Self esteem
Social acceptability
Competence building
Wealth generation
Self actualization
Motives are not necessarily the gifts of heredity but are the outcome of the individuals interactions with others or the
society.
More revision on Entrepreneurial Motivation
8. Why are entrepreneurs moderate risk takers?
9. Mention a few rules for effective communication.
10. Name any three central level financing institutions supporting entrepreneurs.
Sell goods : people selling clothes, electronic goods, food items, industrial goods, automobiles etc come
under this class.
Sell services : people who provide engineering services, medical services, legal services, educational
services etc come under this class.
They will be able to analyze the patterns which are not usually ignored by others.
Opportunity spotter
Project champion
or create or craft business opportunities (by innovating new products/services that are not already in
existence)
3.
4.
5.
Problems: When a problem exists and an idea leads to a solution to resolve that problem, it
business.
Inventions: Invention of new products or services leads to new business opportunities.
Competition: Competetion often results in emergence of new and better ideas that result in new
business opportunities.
Various sources like magazines, journals, books, seminars, trade shows, family members, customers, friends etc
help in getting information that helps in evolution of basic ideas.
b.
Bring together various sources of information and knowledge, and analyze it to the best possible extent. The
analysis helps in the identification of the right opportunity to start a new business.
c.
Creativity in innovating a solution and vision. The entrepreneur should be able to creatively identify an idea
to generate a valuable solution to a problem. Once the solution is identified their vision to convert the solution
into business opportunity help them to move forward, overcoming all the obstacles. They constantly
2. What are the major categories of entrepreneurial ideas? Discuss them with an example each from your
observations and reading.
The (sources of) entrepreneurial ideas can be majorly classified under the following four categories.
1.
2.
Problems: Most often an innovative solution to a problem leads to an entrepreneurial business opportunity.
Cable telephones were a major limitation interms of mobility. They were always confined to a limited area and
communication was very limited. This lead to the research for mobile and wireless technology that lead to the
emergence of cell phones.
Change: A change in either
3.
4.
Social
Legal or
Technological
Scanning Of Environment
Important Note :The latest notes is available at class 12 Entrepreneurship
2.
The interface between spotting and product-identification is the evaluation of various crucial environment
parameters.
5. What does the word scan mean?
Literally, scan means to examine closely. It is especially used in the context of searching for something.
Scanning of the environment: To be of economic value, the entrepreneurial oppportunity identified should
be compatible with the following environmental factors:
Cultural
Developmental
Economic
Financial
Legal
Political
Social
Generation of ideas: The scanning of the environment help in collecting different ideas. This leads to an
innovative product or service. This entire process is called Generation of ideas.
3.
Identification of product or service: After generating the idea for an innovative product or service, the
entrepreneur should evaluate the product or service. If the product or service exists in the current market, there
should identify strong reason to introduce the product into the market. If the product or service is entirely new,
they should take necessary steps to introduce it into the market.
2. What do you understand by Scanning of Environment?
Scanning of environment is the first step in the sensing of entrepreneurial opportunity. It is required to ensure that
the identified entrepreneurial opportunity is compatible with various environmental factors as described below.
Developmental and institutional factors: The encouragement and guidance of various governmental and
enterprize. The health of the economy will also determine the various means of financing the business.
Financial Factors: The fnnds required for starting up an enterprise requires a close examination of the
business concept. This will ensure that the product or service is compatible with the needs of the population
living in a specific region.
Legal factors: Starting an enterprise involves fulfilment of various legal requirements. Thus the environment
has to closely scanned for legal factors.
Political Factors: Various govermental policies prevailing in the society will affect the setting up of the
enterprise. Thus a thorough scanning of the political factors is required.
Developmental and institutional factors: The encouragement and guidance of various governmental and
enterprize. The health of the economy will also determine the various means of financing the business.
Financial Factors: The fnnds required for starting up an enterprise depends on the availability financial
institutions and other sources of funding and the policies followed by them.
Social and cultural factors: Evaluating the social and cultural factors plays a vital role and requires that the
enterprise is compatible with the needs of the population living in a specific region.
Legal factors: Starting an enterprise involves fulfilment of various legal requirements. Thus these factors
b.
A major portion of the opportunities are from the environment. A close examination of the surroundings may
help a person about the lack of facilities that the people are suffering from. For instance, a person might notice
that there is scarcity of cooking gas supply and the power supply and starts a business to sell solar operated
cooking equipment and heating equipment thus capitalizing the opportunity. Capitalizing opportunities like this
will not be possible if the entrepreneurs are not sensitive to the surrounding environment.
A similar example will be that of an entrepreneur who senses that the demand for a seasonal events like those of
marriages, national or religious celebrations can be capitalized.
The nature of the enterprise is solely dependent on the environment. A person can not start a business to
sell modern wear like Jeans and T-Shirts in a village environment where in the demand for traditional wear is
more and vice versa. Similarly a person can not start non-vegetarian food supply in the geographical regions
where in the majority of the population is vegetarian. Such mistakes wont happen if the entrepreneur has a
greater sensitivity to the conditions prevailing in the surrounding environment.
c.
The success of the enterprise depends on its ability to meet the consumer needs.
Usually in winter there is demand for heating equipment or woolen clothes. Cotton clothes have less demand. It
is the opposite in summer. An entrepreneur should have greater sensitivity to such facts and should be able to
meet the demand from the consumers.
2. Why is scanning of environment considered as an interface between spotting and product identification?
Support your answer with at-least one example.
Im still in the process of preparing an answer for this
Generation of Ideas
Economic factors
c.
d.
Political factors
b.
i.
tastes
ii.
problems
iii.
wants
iv.
and preferences.
They should be alert and open so as not to miss an opportunity to grab a new idea.
Thus by being keen and alert entrepreneurs gather information which will help them to innovate better products or
services by meeting the customer demands.
7. How are idea fields useful in generation of ideas?
Idea fields are useful in the generation of ideas in the following ways
a.
They increase the awareness of the entrepreneur about various fields
b.
c.
d.
They form convenient frames of reference to simplify the process of idea generation.
.
8. What is trading? What advantage does it possess over manufacturing?
Purchasing goods and services and then selling them to consumer for a profit is called as trading. It has the
advantage of
a.
easiness to launch
b.
Gardening
ii.
Painting
iii.
Transport
iv.
Workshop
v.
Maintenance
vi.
Security
vii.
Catering
viii.
Cleaning
b.
Advertisement
ii.
Book-keeping
iii.
Computer center
iv.
Courier service
v.
Photocopy
vi.
Printing
vii.
Stationary supply
viii.
Telecom center
c.
Those that are help the commercial establishments to cater to their regular day to day requirements like
i.
Bill Collection
ii.
Repairs
iii.
Maintenance
iv.
Pest Control
v.
Water Supply
vi.
vii.
Travel arrangements
Consonance
with values
2.
Environmental protection
3.
Judicious
Basic Ideas
b.
Evaluation
b.
knowledge
c.
Close examination
c.
d.
Synthesis
d.
competency
Keep their products/services competent and take actions depending on the demand in the market.
demand
2.
supply
3.
The information gathered by the marketing agencies also comes in handy in this regard.
The marketing survey analysis provides us valuable information on various factors like
1.
Gap between demand and supply ex: Demand for LPG gas is more and supply is less. Ideas for alternative
sources of energy like solar.
2.
Scope for manufacturing a product indigenous, if it is being imported. Currently various electronic
components are imported. Or for treatment of certain diseases, people visit foreign countries.
3.
Scope for improving various services. Food deliver system or bill collection system requires an
improvement.
4.
Scope for the production of products with lower/cheaper cost. Solar panels are very expensive.
Entrepreneurship.
Im still in the process of preparing an answer for this
Product Identification
What is the first sign that specifies that a person possesses entrepreneurial talent?
The first sign that specifies that a person possesses entrepreneurial talent is the ability to spot or identify an
entrepreneurial opportunity or idea.
Which qualities set an entrepreneur much ahead of others?
While most of the persons are good at just perceiving the ideas, the entrepreneur is good at perceiving the ideas
backed by appropriate action to convert those ideas into potential business opportunities. This sets the entrepreneur
way ahead of others.
Which personality traits drive an entrepreneur to convert spotted opportunities into commercially feasible
opportunities?
The following personality traits drive an entrepreneur to convert spotted opportunities into profitable business
ventures.
1.
Talent: He/She should have minimum levels of innovative and creative skills and should be able to perceive
a long term futuristic vision which help him to gauge future prospects of the idea.
2.
Temperament: Temperament helps the entrepreneur to implement the identified idea into a profitable
project. Temperament is exhibited through
a.
determination
3.
b.
c.
enthusiasm
d.
e.
Any other qualities that put him into action to convert the idea into venture.
Technique: He/She should have/know various techniques to manage various resources like money, men,
material, machines and more importantly time
Why should the entrepreneur be very careful while generating the ideas?
The entrepreneur should be very careful while generating the ideas because the implementation of the idea without a
detailed investigation, without consulting the experts, could result in losses.
What is investigation of ideas?
Investigation of ideas is a series of activities performed to gauge the potential of the idea to convert it into
economically viable opportunity.
Why should an entrepreneur consider the investigation of the idea?
After idea generation it is essential for the entrepreneur to consider the investigation of the idea to gauge its
economic viability. Directly jumping into implementation after generating the idea could result in a failed venture. So
investigation of the idea is critical.
Which factors play a key role in deciding the price of a product or service?
Unit cost of a product for a particular operation and whether this cost is comparable with similar unit cost of the
product for this operation will determine the sales price of the product.
Define annual turnover.
The total sales of a product or service in a year is defined as the annual turnover of the company.
Define market assessment.
The study of various critical aspects like quality of the product, supply sources and delivery mechanism is considered
as the market assessment.
Define feasibility report.
Feasilbility report is the report prepared considering all the key factors that contribute to the entrepreneurial success
of the product or service under consideration.
Give an account of talent, temparament and technique contribute to the entrepreneurial process.
1.
Talent: He/She should have minimum levels of innovative and creative skills and should be able to perceive
a long term futuristic vision which help him to gauge future prospects of the idea.
2.
Temperament: Temperament helps the entrepreneur to implement the identified idea into a profitable
project. Temperament is exhibited through
a.
determination
b.
c.
enthusiasm
d.
e.
Any other qualities that put him into action to convert the idea into venture.
3.
Technique: He/She should have/know various techniques to manage various resources like money, men,
material, machines and more importantly time
What are all the factors that play key role in testing an idea.
The following are the factors that play a key role in the testing of an idea.
1.
Product or service identification.
2.
3.
Scale of operation
4.
Cost involved
5.
Level of competition
6.
Technological challenges
7.
What role does the market supply play on the business idea?
Market supply refers to the comprehensive details of the total quantity of the product made available in the market by
all existing competitors. Along with the current players, we should take into account the future players that are likely to
etner the market. If the product or service is seasonal, it is usual practice that the supply will increase during the
season. These kind of fluctuations should also be taken into consideration. All these existing players are competitors
to the entrepreneur. So, the entrepreneur should pay special and deep attention to their current manufacturing
capacity, fluctuation in the supply from them, the financial standing, the good will of their product or service.
For example, when an entrepreneur wants to start a garment industry, they should thoroughly investigate all the
existing brands available in the market, the manufacturing capacity, their popularity in the market, the increase in the
demand during the festive season, holidays, seasonal changes etc.
What is the impact of market on the entrepreneurship business idea?
The market will influence the business idea in the following ways:
a.
Demand: There should be demand for the product. The demand usually depends on the size of the market
in which the product is being launched. Demand assessment also requires the study of the target consumers of
the product or service, their preferences and any other parameters that are likely to impact the demand for the
product.
b.
Market supply and nature of competition: The entrepreneur should calculate the total supply of the
product, the current competitors, future competitors, fluctuations in the supply to meet the corresponding
fluctuations in demand, financial standard of the competitors, their goodwill in the market etc. All these factors
should be deeply studied.
c.
d.
Cost and Price: Unit cost of the product for a given operation play a critical role while identifying the product
and also in determining the price. The cost born by the competitors interms of transportation delays, wastage,
maintenance of inventory should be studied to take advantage of these factors and present a competitive price.
Product Innovation and changes: The entrepreneur should study the innovations and changes being
introduced in the same sector by the other entrepreneurs who are already int eh market or about to enter the
market. Changes in the technology should be closely monitored as these changes are likely to reduce the cost in
improve the quality there by bringing competitive advantage.