Chapter 3: Entrepreneurship Development Balbharati solutions for Organisation of Commerce and Management (OC) 12th Standard HSC Maharashtra State Board

Chapter 3: Entrepreneurship Development


Select the correct option and rewrite the completed sentence:


The word 'entrepreneur' is derived from the _________ word 'entreprendre'

Japanese

English

French


Solution: 

The word 'entrepreneur' is derived from the French word 'entreprendre'


'Entreprendre' means to _________

Undertake

Enterprise

Businessman


Solution: 

'Entreprendre' means to Undertake 


Start Up India is an initiative of the_______________

RBI

Government of India

World Bank

Solution: 


Start-Up India is an initiative of the Government of India


___________ is the idea of bringing urban residents to rural areas, by empowering to local communities, both socially and economically.

Options

Agro tourism

Medical tourism

Entertainment


Solution: 

Agro tourism is the idea of bringing urban residents to rural areas, by empowering to local communities, both socially and economically.


Match the pair:

Group 'A'

Group 'B'

A. Gap filling function

1.2016

B. Entrepreneur

2. Employment

C. Agro tourism

3. Old methods of production

D. Technology

4. 2019

E. Startup India

5. Self-motivated

 

6. Rural tourism

 

7. Entrepreneurship

 

8. Latest knowledge

 

9. Necessity Based

 

10. Medical tourism



Solution: 

B. Entrepreneur

5. Self-motivated

C. Agro tourism

6. Rural tourism

D. Technology

8. Latest knowledge

E. Startup India

1.2016



Write a word or phrase or a term which can substitute the following:


An undertaking or adventure involving uncertainty and risk and requiring innovation.

Solution: 

An undertaking or adventure involving uncertainty and risk and requiring innovation – Enterprise.


Explanation:

An enterprise is an organisation or industry that works for earning profits. It undertakes the innovation of goods and services along with the risk involved.


A function of creating something new for an economic activity.

Solution: 

A function of creating something new for economic activity. - Innovation


A person who is an innovator who introduces new combinations of means of production.

Solution: 


A person who is an innovator who introduces new combinations of means of production. - Entrepreneur


Explanation:

An entrepreneur is an innovator, as he introduces a new combination of means of production. This combination of means of production can be made by introducing new products, new techniques, new markets, new sources of raw materials, etc.


The process of enhancing entrepreneurial skills and knowledge through structured training and institution-building programs.

Solution: 


The process of enhancing entrepreneurial skills and knowledge through structured training and institution-building programmes – Entrepreneurial development programme


Explanation:

Entrepreneurial development refers to the development of entrepreneurial skills and knowledge through various training and development programmes. The prime objective of entrepreneurial development is to enlarge the base of the entrepreneurs so as to increase the pace at which new ventures are started.


The process that motivates a person into action and induces him to continue the course of action for the achievement of goals.

Solution: 


The process that motivates a person into action and induces him to continue the course of action for the achievement of goals – Entrepreneurship.

 

Explanation:

Motivation is the process of encouraging or urging employees to perform to the best of their capabilities so as to achieve the desired goals of the organisation. It is a continuous process, as human wants are unlimited and never ending.

 

An employee who has an authority and support of the organisation to implement his creative ideas.

Solution: 

 

An employee who has an authority and support of the organisation to implement his creative ideas -  Entrepreneur

 

State whether the following statement is True or False.

 

An entrepreneur should not be ready to work hard.

True

 False

 

 

Agritourism can support the agricultural economy.

True

False

 

 

A successful businessman takes a calculated risk.

True

False

 

 

Entrepreneurship is a full-time job that requires dedication and hard work.

True

False

 

 

Startup India is an initiative of the Government of France.

True

False

 

 

Find the Odd one out:

 

Communicator

Innovator

Self-starter

Inactive

 

 

Trekking

Wildlife study

Horseback riding

Indoor games

 

 

Innovation

Lack of communication

Development of market

Determining the objectives

 

 

Complete the sentence:

 

An entrepreneur is a person who starts a ____________.

Solution: 


An entrepreneur is a person who starts a Business/Enterprise.

 

'Start- up' India initiative was launched in ____________

Solution: 

 

'Start- up' India initiative was launched in - 2016.

 

Select the correct option.

(Innovation, Niche tourism, Agro tourism, Enterpreneurship)

Group A

Group B

l) The idea of bringing Urban resident to agricultural farm

_________________

2) Agro- tourism is a form of

_________________

3) __________________

To introduce new combination of products & features

4) ___________________

A full time job which requires, dedication & Hard-work.

 

Solution: 

 

Group A

Group B

l) The idea of bringing Urban resident to agricultural farm

Agro-tourism

2) Agro- tourism is a form of

Niche tourism

3) Innovation

To introduce a new combination of products & features

4) Entrepreneurship

A full-time job which requires, dedication & Hard-work.

 

Answer in one sentence.

 

What is Agro - tourism?

Solution: 

 

Agro - tourism offers tourists a chance to reconnect with the land and provides a "hands-on experience" with local foods.

 

Who is 'Entrepreneur'?

Solution: 

 

An entrepreneur is "a person who starts a business and is willing to risk loss in order to make money".

 

Who described 'Entrepreneurship' as the founding of a private enterprise?

Solution: 

 

In 1848, the famous economist John Sturt Mill described 'Entrepreneurship' as the founding of a Private enterprise. 

 

Correct the underlined word & rewrite the sentence.

 

The word 'Entrepreneur' comes from the German verb entreprendre, it means' to undertake'.

Solution: 

 

The word 'Entrepreneur' comes from the French verb entreprendre, it means' to undertake'.

 

Entrepreneurs try to make home a better place where the needs of consumers can be satisfied.

Solution: 

 

Entrepreneurs try to make Market a better place where the needs of consumers can be satisfied.

The loan taken under the stand-up India scheme is repayable in ten years.

Solution: 

 

The loan taken under the stand-up India scheme is repayable in seven years.

 

Explain the following term/concept:-

 

Entrepreneur

Entrepreneurs are the people who have the courage to offer and to share an idea or a product or a service with the world. They try to make the market a better place where the needs of consumers can be satisfied.

Agro-tourism

Agro-tourism focuses on travel that is empowering to local communities, both socially and economically. Agro-tourism can support the agricultural economy when local producers can no longer compete economically.

 

Start-ups

A start-up is defined as an entity having its headquarter in India, which was opened less than 10 years ago and has an annual turnover of fewer than Rs.100 crores. Start-up India is an initiative of the Government of India. It was launched in 2016.

 

Stand-ups

The objective of the Stand-Up India scheme is to facilitate bank loans between Rs.10 lakh and Rs.1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise.

Intrapreneur

An intrapreneur is an employee who has the authority and support of his company/employer to implement his own innovative and creative ideas. His idea or product may or may not earn immediate revenue for the company. Still, the employee keeps receiving his salary.

 

Study the following case/ situation and express your opinion.

 

Mr. Soham is a young MBA degree holder, Mr. Navin is a B.Com graduate. Mr. Soham is willing

to start a dairy farm at his village. Mr. Navin is willing to work as a cashier in a Private Company.

i) Find out the dream of Soham and Navin.

ii) State anyone feature of Entrepreneur.

iii) To become a successful entrepreneur, which qualities Mr. Soham should have?

Solution: 

i) The dream of Soham is to become an entrepreneur and the dream of Navin is to take up a job in a private company and get a fixed income as salary.

ii) An entrepreneur is a person who is willing to take risk in order to earn money and start a business.

iii) To become a successful entrepreneur Mr. Soham should have qualities like innovator, creator, reactive, and risk bearer.

 

Answer in brief.

 

Define entrepreneur. Explain the functions of entrepreneur.

Solution: 

 

Definition: Webster dictionary gives a definition, "An entrepreneur is a person who starts a business and is willing to risk loss in order to make money."

Functions fo entrepreneur.

1) Innovation:

An entrepreneur is basically an innovator. He introduces new combinations of means of production. He must introduce new products or bring changes in the existing products. Customers are satisfied with new products or new features in the existing products. Innovation is also necessary to solve problems that arise in the business.

 

2) Determination of Objectives:

An entrepreneur has to determine the aims and objectives of the business. There may be difference between primary and secondary objectives of the enterprise. He can change these objectives as per the market situations.

 

3) Development of Market:

The entrepreneur has to find out different ways for marketing the products and services of his enterprise. He can conduct surveys or research to understand the customer's demand. When the markets are developed constantly, the demands of the consumers will increase.

 

4) New Technology:

In global world, everyday there is an invention of new technology. Introduction of new technology will always result in growth of business e.g. new machinery, advanced technology, new and scientific methods of production, etc.

 

5) Good Relations:

It is necessary to maintain healthy working atmosphere in an organization. It depends upon the efficient relations between subordinates and superiors. Co-ordination among the employees is the key of success.

 

6) Organizing Funds:

Entrepreneur needs to find out different financial resources because adequate and continuous finance is always necessary for business. Good and honest relations with the investors is necessary for every business.

 

7) Taking Decisions:

An entrepreneur has to take wise decisions for his enterprise. Timely and correct decisions are also important and necessary for a proper business plan. He should always consider the pros and cons before taking any business decision.

 

 

Define entrepreneur. Explain qualities of successful entrepreneur.

Solution: 

 

Definition: 

Webster dictionary gives a definition, "An entrepreneur is a person who starts a business and is willing to risk loss in order to make money."

 

Successful business people have many Qualities in common with one another.

 

1. Disciplined :

These individuals are focused on making their businesses work, and eliminate any hindrances or distractions to their goals. An entrepreneur has comprehensive strategies and outlines the tactics to accomplish them. A successful entrepreneur is disciplined enough to take steps every day towards the achievement of his objectives.

 

2) Confidence :

The entrepreneur does not ask questions about whether he can succeed or whether he is worthy

of success. He is confident with the knowledge that he will make his businesses succeed. He shows confidence in everything he does.

 

3) Open Minded :

Entrepreneurs realize that every event and situation is a 'business opportunity. Ideas are constantly being generated about workflows and efficiency, people skills, and potential new businesses. He has the ability to look at everything around him and focuses it towards his goals.

 

4) Self Starter :

An entrepreneur knows that if something needs to be done he should start it himself. He sets the parameters and makes sure that projects follow that path. He is proactive, not waiting for someone to give him permission.

 

5) Competitive :

Many companies are formed because an entrepreneur knows that he can do a job better than others. He needs to win the game of business. An entrepreneur will highlight his own company's track record of success.

 

6) Creativity :

One aspect of creativity is being able to make connections between seemingly unrelated events or situations. The entrepreneur often comes up with solutions which are the synthesis of other items. He will repurpose products to market them to new industries.

 

7) Determination :

An entrepreneur is not thwarted by his defeats. He looks at defeat as an opportunity for success.

He is determined to make all of their endeavors succeed, so will try and try again until it does. A successful entrepreneur does not believe that something cannot be done.

 

8) Strong communication skills :

The entrepreneur has strong communication skills to sell the product and to motivate employees. A most successful entrepreneur knows how to motivate his employees so the business grows overall. He is very good at highlighting the benefits of any situation and coaching others to their success.

 

9) Strong work ethic :

The successful entrepreneur will often be the first person to arrive at the office and the last one to leave. He will come on his days off to make sure that an outcome meets his expectations. His mind is constantly on his work, whether he is in or out of the workplace.

 

10) Passion :

Passion is the most important trait of a successful entrepreneur. He genuinely loves his work. He is willing to put in those extra hours to make the business succeed because there is a joy his business gives which goes beyond the money. The successful entrepreneur will always be reading and researching ways to make the business better.

 

Justify the following statement.

 

Entrepreneurship is the best source for self- employment.

Solution: 

 

(1) Intellectual capabilities: 

An entrepreneur is a creative thinker. He always thinks more creatively and better than others. He always gives innovative ideas which are the sign of his intellectual capabilities. He has the ability to analyze any situation and take the proper decisions.

 

(2) Future vision: 

The entrepreneurs have the ability to foresee the future market conditions. He can take appropriate decisions by considering the recent market situation and changes in market conditions. He must have knowledge of the external business environment. This enables them to take timely actions.

3) Technical knowledge: 

The entrepreneur should have advanced technical knowledge about the products and services, plans of production, etc. An entrepreneur should also update his technical knowledge from time to time to understand the latest changes that take place in technology.

(4) Risk-bearing capacity: 

This is one of the main characteristics of an entrepreneur. He should be calculative in taking a risk. He should be prepared to face challenges and look for opportunities in every adverse situation of the business.

Thus Entrepreneurship is the best source of self-employment.

 

A successful businessman takes a calculated risk.

Solution: 

 

A successful businessman should be calculative in taking a risk. He should be prepared to face challenges and look for opportunities in every adverse situation of the business. He should be self-confident to achieve his organizational goals. He should always keep himself confident and motivated to face various obstacles and come out victorious every time in every challenge he faces. A businessman has to undertake many risks including fall in prices, changes in fashion, earthquake, etc. All these risks cannot be insured with insurance companies. A risk that cannot be insured against and measured is called uncertainty. A businessman buys factors of production at certain prices to combine their contributions into the products and then sell those products at uncertain prices in the future. Thus, a Successful businessman takes a calculated risk.

 

Entrepreneur must be a good communicator.

Solution: 

 

An entrepreneur needs to communicate effectively with different people like customers, suppliers, creditors, employees, etc. from time to time. He should have good communication skill and command over the language he speaks, to be able to express his ideas and strategies effectively. Good communication skills mean proper understanding between sender and the receiver of the message.

 

An entrepreneur must be an innovator.

Solution: 

 

Innovation is a dynamic change brought by an entrepreneur by bringing new combinations of factors of production. Innovation by the entrepreneur is a must for the development of an organization. An entrepreneur can be an innovator in many ways. They are :

(1) Introduction of a new product: 

Entrepreneur through his dynamic skill and intelligence create new products by fulfilling innovation to commercialization by embedding it in an environment where it did not exist previously.

 

(2) Introduction of a new method of production: 

By introducing new and latest technology an entrepreneur brings new life and energy in methods of production. The introduction of new technology, new machinery, scientific methods of production will save money and time for the organization.

 

(3) Opening of a new market:

An innovative entrepreneur creates and opens new avenues, new ideas with new products. It opens a new market which is not existing previously.

 

(4) Carrying out new forms of organization for industry: 

An innovative entrepreneur is the one who discovers new methods and new materials. He utilizes inventions and discoveries in order to make new combinations.

Thus, the entrepreneur must be an innovator.

 

With creativity, farmers can expand their Agro-tourism Business.

Solution: 

 

With creativity, farmers can expand their Agro tourism business through recreation, fun, entertaining activities. The valuable activities which farmers can do creatively are :

 

(1) Outdoor recreation: 

The farmer can add value and can expand their agro-tourism business by outdoor recreation like trekking, fishing, hunting, wildlife study, horseback riding, etc. All such activities are the point of attraction for a tourist and this can be enjoyed with family and friends too.

 

(2) Educational experiences : 

Farmers can also be more creative in farming tours, rice plantation, cooking classes on chulha. All such activities help customers to get the hands-on experience which they enjoy adding educational values.

 

(3) Entertainment:

Entertainment through harvest festivals like 'Hurda Party in Maharashtra, local dances, folk songs is recreation also the main attraction for a customer for agro-tourism. Entertaining activities such as a contest, adult and children classes, games, etc. can be arranged. This innovative touch helps the farmer to expand their business.

 

(4) Hospitality services: 

Hospitality services like farm stays, guided forms make a customer happier. The farmer can add value to guest experience by offering them refreshments, fresh fruits, juice, fresh food, etc.

 

A happy customer will definitely return and also spread good word of mouth to their family and friends. Thus, with creativity, farmers can expand their agro-tourism business.

 

Attempt the following

 

Explain the characteristics of Entrepreneurship Development?

Solution: 

 

Meaning:

Entreprenuership is a purposeful activity of an individual or a group of associated individuals, undertaken to initiate, maintain and aggrandize profit by production and distribution of economic goods and services.

 

Characteristics of Entrepreneurship

Entrepreneurship is a process of setting up a new business organization. It is the process where one decides to build a business career by finding the market options and mobilizing the available resources. The following are the characteristics of entrepreneurship.

 

1) Innovation- 

Entrepreneurship is an innovation. The introduction of new combination of various factors of productions is innovation. A new product arrives in the market, uses new production technology, discovers new source of supply of raw materials and opens a new market for the specific product. In view of changing taste of consumers from time to time, entrepreneurship focuses on the research and development to produce goods to satisfy the customers.

 

2) Economic activity- 

An entrepreneur produces a new product for the customers as per their needs. He feels the need of this to satisfy human wants and as well in exchange earn a better livelihood. It is a systematically planned activity as per the skills and knowledge of entrepreneur. Hence entrepreneurship is an economic activity.

 

3) Organization Building- 

It is an activity where various factors of production have to be organized. Place utility, time utility, form utility etc. has to be considered to collect them under one roof for new production.

 

4) Creative activity- 

Innovation should have a strong support of creativity. Introducing creativity in producing something new is a big challenge for the entrepreneur. Thus creativity is an essential part of entrepreneurship.

 

5) Managerial skill and leadership- 

A person who wants to be a successful entrepreneur should have more passion of doing something new than just earning profit. Leadership and managerial skills are the most important facets of entrepreneurship. Other skills can be considered secondary. An entrepreneur must have the ability to lead and manage.

 

6) Skillful management- 

The success of any entrepreneurship depends on the management of the organization. With professional management and skilled managers, entrepreneurship becomes successful activity.

 

7) Risk Bearing- 

Uncertainty is defined as a risk which cannot be insured against and is incalculable. Entrepreneur is an agent who buys factors of production at certain prices, in order to combine them into a product, to sell them at uncertain prices in future. Thus they too are risk-bearing agents in production.

 

8) Gap filling function- 

The most significant feature of entrepreneurship is gap filling. It is the entrepreneur's job to fill the gap or make up the deficiencies which always exist in the knowledge about the production function.

 

 

What is Enterpreneurship Development Program ?

Solution: 

 

ENTREPRENEURSHIP DEVELOPMENT PROGRAMMES (EDP)

An entrepreneurship development program has been defined as 'a program designed to help a person in strengthening his entrepreneurial motive and in acquiring skills and capabilities necessary for playing his entrepreneurial role efficiently'.

EDP is a device through which people with latent entrepreneurial traits are identified, motivated to take up new industrial ventures, trained in managing the unit, and guided in all aspects of starting a venture/an enterprise.

EDP was first introduced in Gujarat in 1970 and was sponsored by the Gujarat Industrial Investment Corporation. The EDP's are based on McClelland's experiments in the Kakinada District of Andhra Pradesh where businessmen were provided with motivation and training.

The EDP includes the following steps:

1) Arrangement of Infrastructure.

2) Selection of potential entrepreneurs.

3) Identification of enterprise.

4) Actual training program

5) Selection of training personnel.

6) Selection of method of training.

7) Actual training.

8) Monitoring and follow-up.

 

Objectives of EDP:

The following objectives of EDP are identified.

1) To foster entrepreneurial growth in the country.

2) Optimum use of available resources.

3) Development of backward regions and improving the economic status of socially disadvantaged groups.

4) Generation of employment opportunities.

5) The widening base for small and medium scale industries.

 

Answer the following

 

Define entrepreneur. Explain characteristics of entrepreneur

Solution: 

 

Definition:

Webster dictionary gives a definition, "An entrepreneur is a person who starts a business and is willing to risk loss in order to make money."

 

Characteristics of entrepreneur.

Entrepreneurs have some special characteristics like creative thinking, imagination, enthusiasm, sincerity etc. The characteristics of an entrepreneur may be briefly stated as follows:

 

1) Intellectual Capabilities:

An entrepreneur is a creative thinker. He has reasonably good intelligence. He has ability to analyze business situations. This ability will help him to take proper decisions.

 

2) Future Vision:

The entrepreneur has a good foresight about future market situation. He should also have knowledge about external business environment. This will help him to take proper decisions according to the situations and changes in the market. So, he can take timely actions for the same.

 

3) Hard Work:

An entrepreneur is ready to work hard. It is more necessary when a new venture is started. He has to work for long hours. Many a times he has to handle the main areas of business independently. This will make him successful.

 

4) Technical Knowledge:

An entrepreneur has good technical knowledge about his business. The entrepreneur has the ability to update himself with the latest knowledge about the product, process and technology.

 

5) Communication Skills:

An entrepreneur needs to communicate with different people like customers, suppliers, creditors, employees, etc. He must be able to express his ideas and strategies effectively. It is necessary that there is a proper understanding between the sender and the receiver of the message.

 

6) Highly Optimistic:

An entrepreneur has to always think positively. He is always hopeful and confident about the market situations even in failure times. Such positive attitude helps him to run his business successfully.

 

7) Risk bearing capacity:

Successful entrepreneur takes calculated risks. He is ready to face challenges and always seeks new and more opportunities.

 

8) Self Confidence:

An entrepreneur has self-confidence. He has positive desires to achieve his goals. Such self-motivation keeps him strong and confident to face various obstacles.

 

Define an entrepreneur. Explain its functions?

Solution: 

 

Definition: Webster dictionary gives a definition, "An entrepreneur is a person who starts a business and is willing to risk loss in order to make money."

Functions fo entrepreneur.

1) Innovation:

An entrepreneur is basically an innovator. He introduces new combinations of means of production. He must introduce new products or brings changes in the existing products. Customers are satisfied with new products or new features in the existing products. Innovation is also necessary to solve problems that arise in the business.

2) Determination of Objectives:

An entrepreneur has to determine the aims and objectives of the business. There may be difference between primary and secondary objectives of the enterprise. He can change these objectives as per the market situations.

 

3) Development of Market:

The entrepreneur has to find out different ways for marketing the products and services of his enterprise. He can conduct surveys or research to understand the customer's demand. When the markets are developed constantly, the demands of the consumers will increase.

4) New Technology:

In global world, everyday there is an invention of new technology. Introduction of new technology will always result in growth of business e.g. new machinery, advanced technology, new and scientific methods of production, etc.

 

5) Good Relations:

It is necessary to maintain a healthy working atmosphere in an organization. It depends upon the efficient relations between subordinates and superiors. Coordination among the employees is the key to success.

 

6) Organizing Funds:

Entrepreneur need to find out different financial resources because adequate and continuous finance is always necessary for business. Good and honest relations with the investors is necessary for every business.

 

7) Taking Decisions:

An entrepreneur has to make wise decisions for his enterprise. Timely and correct decisions are also important and necessary for a proper business plan. He should always consider the pros and cons before taking any business decision.

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