AI-ENTREPRENEURIAL SKILLS-II

 ENTREPRENEURIAL SKILLS-II

Quick Revision Notes

1. The aim of an entrepreneur is to establish an 'Enterprise' and the process of doing it is entrepreneurship. Entrepreneurship is successful if the entrepreneur is creative, innovative and uses the resources that are available in the society or country.

2. Entrepreneurs are very clear with their targets. They visualize, plan and then implement their ideas. They work hard from the beginning and then for extra hours so that they can achieve the best. They are courageous and are always ready to take risks for their business.

3. An entrepreneur has to understand and properly liaison with the government for legal compliance in concern with all the stakeholders of the enterprise. Divide Income: An entrepreneur needs to divide invested business money to many groups and spend some part of it on buying raw materials, paying rents and salaries.

4. Entrepreneurs have several qualities. Some of them are:

Entrepreneurs are very clear with their targets.

They visualize, plan and then implement their ideas.

They work hard from the beginning and then for extra hours so that they can achieve the best.

They are courageous and are always ready to take risks for their business.

They have clear vision of what will be needed in the future and they prepare their next move accordingly.

They are very creative and innovative.

They are problem solvers. They conceive new ideas and achieve innovative solutions.

They have good communication skills for convincing potential stakeholders.

They are updated with the current scenario of the market.

They are dedicated and passionate towards their work.

5. An entrepreneur performs various types of functions in the society Irrespective of its level like:

• Create a new idea for product or service: An entrepreneur tries new innovative ideas that help to increase income.

• Research: An entrepreneur has to do a lot of exploration before starting a business. He finalizes the idea of business only after analyzing the strengths, weaknesses, opportunities and threats for the new business or enterprise.

• Managing the business: An entrepreneur plAns. for the future of its business and accordingly arranges raw material, labour and instructs what to do. He keeps a track to check if the plan is followed property. Entrepreneurs identify the needs and accordingly make plAns. of execution.

• Organizing Resources: According to the need of the project or the business, the entrepreneurs collect information and organize the resources which help their ideas to turn into reality.

• Making decisions: An entrepreneur needs to take decisions everyday. For example, deciding what to produce, how much to produce, where to sell and how their products and services can reach the market through advertisement.

• Execution: After research and organizing resources, entrepreneurs implement their ideas and develop products or services keeping price, people and place in mind.

• Public Relations: A business requires social acceptance by public at large. Public relation is important in order to maintain a good market and generate a sense of faith and reliability in the business or its products.

• Statutory Obligation: An entrepreneur has to understand and properly liaison with the government for legal compliance in concern with all the stakeholders of the enterprise.

• Divide Income: An entrepreneur needs to divide invested business money to many groups and spend some part of it on buying raw materials, paying rents and salaries.

6. We often hear the stories about entrepreneurs, how great their life is and sometimes how bad they are

struggling. Entrepreneurship is a journey and an entrepreneur has to go through many ups and downs.

There are many myths about entrepreneurship that blow up people who have thought of it.

Each entrepreneur looks into demand and then bring ideas. They may take idea that is already in the market and apply fresh new ideas to it.

• Every business idea needs to be very unique and special: Each entrepreneur looks into demand and then brings idea. They may take idea that is already in the market and apply fresh new ideas to it.

• Born Entrepreneurs: Many people assume that entrepreneurs are born not made. But this is not true, entrepreneurship can be learned. It may be in the genes but, it takes self-awareness and hard work to develop the skills that entrepreneurs have.

• Huge Money: It is not necessary that an individual needs a lot of capital to get a business up and running, One can start it as small as he can and gradually can grow his business with proper planning, having business partners or by attracting investors.

• Instant Profit: It is not always a cakewalk. Some companies are immediately successful but some may take some time to reach there and make profit. Entrepreneurship is just like a seesaw and there are many ups and down.

• Must to have a Good Idea: This concept is not entirely false but it is misleading. It is important to have a good idea but factors like having a plan for the execution, talent, leadership and communication are important too.

• Luxuries Future: Growth of a company helps to outsource or recruit employees for the works but there will always be certain responsibilities that an individual needs to work on. When the business is rapidly growing, an entrepreneur devotes more time to the business for future aspects.

• Only Young: One definitely does not have to be young to be a successful entrepreneur. In fact, it has been found that older adults are more involved into entrepreneurship. It is for all ages.

 

7. "The best way to predict the future is to create it" is true for entrepreneurs. Entrepreneurship is full of uncertainty. If anyone accepts that, he is willing to embrace it. Entrepreneurs are independent minded, innovative business people which make them self-starter. An entrepreneur can be an artist, educator, businessman, service sector worker or an inventor. Entrepreneurial careers can be found in just about every field.

New business venture creation includes launching a company, buying a business, taking a franchise, starting a new venture in a family business or commercializing a technology.

One can come up with a new idea, be it a type of themed restaurant or a coaching institute. It depends on the individual, what is his idea and what resources are needed to launch it. Let us now learn about various career options in Entrepreneurship.

Service Business: A service business is a company that provides work performed in an expert manner by an individual or a team. It can be Banking Consulting, Cleaning Education, Insurance, TrAns.portation Services and many more.

• Manufacturing Business: Manufacturing business buys raw material with the intention of using them as ingredients in the making of a new product. It combines raw material and labour in its production. The manufactured goods will then be sold to customers. Hardware making furniture making, etc. are few examples.

• Sole Proprietorship Business: The most common type of business found in India is sole proprietorship. All businesses we see around like the local grocer, carpenter, shopkeeper, etc. are sole proprietorship. It is am ideal choice to run a small scale business.

• Buying a Franchise: A franchise is an agreement between a small business owner (franchisee) and the parent company (franchiser). The parent company gives the right to sell company's product and often provides support like advertisement and supplier relationship in return for a franchise fee and some percent of the profit.

• Copying an Existing Business: Identify a good going local business started by someone else. One can also take help from internet. After researching on it thoroughly and planning for the execution, establish the business. Make sure the business does not violate someone else's trademark, copyrights or other protected intellectual property.

• Work from Home Business: Many small business ideas can be launched from home only. This can be anything from opening a boutique to writing blogs.

Objective Questions

Multiple Choice Questions (MCQs)

1. An entrepreneur is a person who…………………..

a. Advances his/her business                                                                      b. Imports products from outside

c. Does not try out new ideas                                                                      d. Creates jobs

2. Entrepreneurs are……………………………….about the future and always look forward

a. Optimistic                                                                                                       b. Pessimistic

c. Doubtful                                                                                                          d. None of these

3. Entrepreneurship is a process of………………………..

a. Developing business plAns.                                                                     b. Launching and running business using innovation

c. Both a and b                                                                                                  d. None of these

4. …………………………………is the Important function of Entrepreneur.

a. Decision Making                                                                                          b. Creates Jobs and Employment Opportunities

c. Both a and b                                                                                                  d. Healthcare

5. Sam is putting new ideas to grow her business. So, Sam is……………………………

a. Businessman                                                                                                 b. Entrepreneur

c. Shopkeeper                                                                                                   d. Both a and b

6. Entrepreneurship has a crucial role in the………………………………of the society.

a. Evolution                                                                                                        b. Planning

c. Functioning                                                                                                    d. None of these

Ans.wers:

1.       D

2.       a

3.       c

4.       c

5.       b

6.       c

Very Short/Short Ans.wer Questions

A. Fill in the blanks.

1. Most of the successful entrepreneurs are……………………………

2. ………………………………institutions often provide the startup capital.

3. ……………………..combines various factors in a creative way in order to generate products as per the needs of

customers.

4. The most common type of business found in India is ……………………………………..

5. An …………………………………is a person who establishes a business or a venture that generates some value to the

customer and proves to be profitable for him.                                                                     (CBSE Sample Paper, 2020)

Ans.wers

1. Philanthropists            2. Micro-financial            3. Entrepreneur               4. Sole proprietorship   5. Entrepreneur

B. Ans.wer the following questions.

1. How does an entrepreneur help society?

Ans.. a. By using local material/products

        b. By creating jobs for people

        c. As entrepreneurs grow their business, the people working for them and in related businesses also grow.They have more money to live a better quality of life.

2. "Entrepreneurs are born, not made." Do you agree? Why/Why not?

Ans.. Many people assume that entrepreneurs are born not made. But this is not true, entrepreneurship can be learned.

It may be in the genes but, it takes self-awareness and hard work to develop the skills that entrepreneurs have.

3. Why should one become an entrepreneur?

Ans.. a. Chance to do something you love

         b. Chance to become a change maker and contribute to society

4. List any four characteristics of entrepreneurship:                                                                                       [CBSE, 2020]

Ans.. a. Ability to take up risks

        b. Believe in hard work and discipline

        c. Adaptable and flexible to achieve the goals of enhancing quality and customer satisfaction

        d. Knowledge of the product and services and their need or demand in the market

5. What are the myths about Entrepreneurship? Explain any two. [CBSE Sample Paper, 2020]

Ans.. a. The misconception is that every business idea needs to be unique or special-A person can take an idea that

is already there in the market and use with new strategy.

b. Another myth is that lot of money is required to start a business-A person can borrow the capital.

6. Explain any two qualities of an entrepreneur.

Ans.. a. Entrepreneur should have the ability to find different solutions to the problem.

         b. Entrepreneur should create new ideas and be innovative.

7. Write the functions of an entrepreneur. They are:

Ans.. Entrepreneurs perform various functions in a society

• Research          • Plan    • Execution        • Public Relations             • Marketing       • Launch

8. Discuss the two initiatives taken by the government to encourage the creation and growth of new ventures

Ans.. a. Ministry of Skill Development and Entrepreneurship was set up by the Government of India in 2014 b. Educational institutes are providing courses on entrepreneurship.

9. Define the term manufacturing business.

Ans.. Manufacturing business buys raw material with the intention of using them as ingredients in the making of a new product. It combines raw material and labour in its production. The manufactured goods will then be sold to customers. Hardware making, furniture making, etc. are few examples.

10. What career options does entrepreneurship offer?

Ans.. Following are the career options in Entrepreneurship:                                                                                         [MIQ]

Service Business                                               Manufacturing Business                                                Sole Proprietorship Business

Buying a Franchise                                           Copying an Existing Business                                       Work from Home Business

11. Write any two qualities for being a good entrepreneur.                                                         [CBSE Sample Paper, 2022]

Ans.. They are confident. They believe in themselves and their abilities.                                 

• They keep trying new ideas in their business.

12. Entrepreneurship has a positive impact on society. Write down any two.                      [CBSE Sample Paper, 2022]

Ans.. 1. Some of them work towards saving the environment.

         2. Some of them give money to build schools and hospitals.

13. "Entrepreneurs are born, not made." Do you agree with this statement? Justify your Ans.wer.

Ans.. No, this is a myth/misconception about entrepreneurship. Being an entrepreneur starts with a way of thinking One must believe that anything is possible and it shall be achieved. It starts with thinking of an idea that you want to work on, making it different.

14. Name the person who combines factors in a creative manner to penerate value for customers and create wealth.

Ans.. The person who combines factors in a creative manner to generate value for customers and create wealth is

called an "Entrepreneur                                                                                                                                                [CBSE 2022)

15. Name the skill that helps anyone to lead, guide and supervise people who work for the business (CBSE, 2022)

Ans.. Leadership skills