1. What do you mean by Entrepreneurship ? What are its features ?
Ans - Entrepreneurship refers to the concept of developing and managing a business venture in order to gain profit by taking several risks in the corporate world . Simply put entrepreneurship is the willingness to start a new business .
Features - 1. Economic - Entrepreneurship is an economic activity because it involves the creation and operation of an enterprise with a view to creating value or wealth by ensuring optimum utilisation of resources .
2. Related to innovation - Entrepreneurship involves a continuous search for new ideas . Entrepreneurship compels an individual to continuously evaluate the existing modes of business operations so that more efficient and effective systems can be evolved and adopted .
3. Profit Potential - " Profit potential is the likely level of return or compensation to the entrepreneur for taking on the risk of developing an idea into an actual business venture ". Without profit potential , the efforts of entrepreneurs would remain only an abstract and a theoretical leisure activity .
4. Risk Bearing - The essence of entrepreneurship is the 'willingness to assume risk ' arising out of the creation and implementation of new ideas. New ideas are always tentative and their results may not be accurate and positive .
2. What are the relationship between Entrepreneurship and Management ?
Ans - 1. A manager , just like an entrepreneur needs to be an immediate and efficient decision maker at their relevant levels.
2. Both the manager and the entrepreneur needs to be excellent at communal skills . This is essential to persuade people to work with them .
3. Just as an entrepreneur , to be effectual as a manager , a person needs to accomplish himself with self - reliance . This self- belief inspires other people as well and makes them want to work for the company .
3. What are the functions of an Entrepreneur ?
Ans - 1. Decision Making - The primary task of an entrepreneur is to decide the policy of production . An entrepreneur is to determine what to produce , how much to produce , how to produce , where to produce , how to sell and so forth .
2. Management Control - In past times management and control of the business is done only by the entrepreneurs . But nowadays , people use to higher number of managers for the management of the organisations .
3. Division of Income - The next major function of the entrepreneur is to make necessary arrangement for the division of total income among the different factors of production employed by him .
4. Risk taking and bearing of risks - Broadly there are two kinds of risk which he has to face . Firstly , there are some risks, such as risks of fire , loss of goods in transit , theft etc. which can be insured etc. These are known as measurable and insurable risks . Secondly , the another type of risk which cannot be insured is the uncertainty .
5. Innovation - The innovation is the important function of entrepreneur because the business environment is changing day by day so to keep up with it there is a need to innovate the rules , policies and planning of the organisation regularly .
4. What are the process of Entrepreneurship Development ?
Ans - 1. Learn about the business idea - It is the starting process of entrepreneurship . Once , an individual has generated the idea for a business , he / she , will subsequently need to evaluate and identify its business opportunities . Hence , he /she has to learn more about the business and its consumers .
2. Thorough Evaluation - Before moving forward , entrepreneurs need to evaluate a business idea or opportunity thoroughly . An entrepreneur can do it by himself/ herself by following the steps -
a. Whether an opportunity or idea is worth investing or not .
b. What are the requirements for this product ?
c. Is it feasible or not based on its cost ?
d. What are the competitive advantages ?
e. Associated risks .
3. Business Plan - After identifying the opportunity and gathering information about it , and entrepreneur needs to create a comprehensive business plan to make most of this opportunity . It is one of the vital stages of entrepreneurship development process.
4. Finding resources- Once the entire business plan is ready , the next step of entrepreneurship development and management is to locate sources of finance and human resources .
5. Framing out the Management Structure - It is a crucial concept of entrepreneurship development . After raising funds and hiring the required employees , this is the next process on the list . An entrepreneur must frame out the hierarchy in the organisation . Thus , it becomes easier to resolve any problem through this chain of command .
6. Plant the future - Once a business is up and running smoothly , an entrepreneur has to consider its future . In this process the entrepreneur has to set goals for the future and get ready for the uncertainties that he / has to face .
5. What are the Entrepreneurship Competencies ?
Ans - 1. Opportunity - seeking and initiative - Entrepreneurs seek opportunities and take the initiative to transform them into business situations .
2. Persistence - When most people tend to abandon an activity successful entrepreneurs stick with it.
3. Commitment - Entrepreneurs keep their promises , no matter how great the personal sacrifice .
4. Demand for efficiency and quality - Entrepreneurs try to do something better , faster or cheaper .
5. Taking calculated risks - Taking calculated risks is one of the primary concepts in entrepreneurship .
6. Goal setting - This is the most important competency because none of the rest will function without it . Entrepreneurs set goals and objectives which are meaningful and challenging .
7. Information seeking - Entrepreneurs gather information about their clients, suppliers, technology and opportunities .
8. Systematic planning and monitoring - Systematic behaviour means acting in a logical way . Planning is deciding what to do . Monitoring means checking .
9. Persuasion and networking - Entrepreneurs influence other people to follow them or do something for them .
10. Independence and self- confidence - Entrepreneurs have a quiet self- assurance in their capability or potential to do something .
6. What are the Entrepreneurial factors ?
Ans - Internal factors - These include the following factors -
1. Desire to do something new .
2. Become independent .
3. Achieve what one wants to have in life .
4. Be recognized for one's contribution .
5. One's educational background .
6. One's occupational background and experience in the relevant field .
External Factors -
These include -
1. Government assistance and support .
2. Availability of labour and raw material .
3. Encouragement from big business houses .
4. Promising demand for the product .
