Part – 1
The process of developing business plan, launching and running a business using innovation to meet customer needs and to make a profit is entrepreneurship.
- Entrepreneurship and society
Society is described as an aggregate of people living together in a community, who associate for various engagements including business. The definitions of the two concepts shows clearly that there is a direct relationship between the two. The beauty of entrepreneurship in a society is that as businesses prosper the impact the businesses create also increases. It is due to entrepreneurial activity that the society is provided with goods and services. In turn, society provides market for products and services provided by the entrepreneur.
Positive impact of Entrepreneurship on society
- Accentuates economic Growth
- Fosters Creativity
- Stimulates Innovation and Efficiency
- Creates Jobs and Employment Opportunities
- Solves the problems of the society
- Encourages welfare of the society
- Role of society in boosting Entrepreneurship
- Creates needs and demands
- Provides raw materials
- Enables financial support
- Creates a need for education
- Catalyzes policy formation and reform
- Facilitates networking
- Supports infrastructure development
- Common Entrepreneurship activities related to society
Social Entrepreneurship :
In social entrepreneurship research is conducted to completely define a specific and core social problem. Many social problems are tackled by social entrepreneurs such as low reach of quality education, health and sanitation, unemployment, child labour etc.
Agricultural Entrepreneurship can be defined as being primarily related to the marketing and production of inputs and products used in agricultural activities. Farmers have benefited the most with rise in agricultural entrepreneurship as it has led to low-cost innovations in farming processes.
Women entrepreneurship is the process where women organise all the factors of production, undertake risks, and provide employment to others.
Small Scale Entrepreneurship:
Small scale entrepreneurship refers to starting industries in which manufacturing, trading, providing services, productions are done on a small scale or micro scale. These businesses serve as the backbone of many developing countries.
- Qualities of an Entrepreneur
In order to be successful, an entrepreneur must be very hard working. Successful entrepreneurs adapt to the habit of hard work from a very early stage.
Successful entrepreneurs should have a positive approach to life. They should not be afraid of any adverse situations in business. They should think optimistically about the future of the business.
Successful entrepreneurs like to function at their own will and rules. They dislike being guided by others. They do not prefer working for others and are the masters of their own.
Entrepreneurs should possess a high level of energy as they have to put in more hard work and time for making their venture a success.
An entrepreneur should have a strong belief in his/her abilities. He must not deviate from his/her decisions too early in case success is delayed rather he must trust his/her competencies and hard work.
Successful entrepreneurs never quit his/her venture even if s/he fails. They keep on finding ways to succeed. They show perseverance in their pursuit. They never give up early.
- Functions of an Entrepreneur
Organization Building and Management:
Organization building is about bringing together different factors of production and allocating these resources to bring down costs and losses. An entrepreneur builds the organization by taking various steps such as hiring employees, organizing the factors of production, sourcing finance etc.
Risk-taking is about taking responsibility and planning for a loss or mishap that may occur in the future due to unforeseen contingencies. An entrepreneur plays the function of developing a certain risk-taking appetite and taking calculative risks to reduce adverse consequences.
Entrepreneurs innovate by introducing new concepts, products, services, designs, ideas etc. They may introduce something new and innovative in any branch of economic activity. In today’s world, a new business cannot survive and sustain without innovating in some manner. An entrepreneur foresees a potentially profitable opportunity and innovates in the effort to exploit it.
- Promotional Functions
The first step towards entrepreneurship is the discovery of a business idea. An entrepreneur comes up with a business idea and thinks about ways to implement it. Usually, entrepreneurs work around the process of idea discovery by exploiting natural resources, finding a market need or calculating the profit potential.
While coming up with ideas can seem like an easy process, the challenge is to understand if the idea has the potential to turn into a viable business venture. For this, an entrepreneur conducts research, investigates and evaluates an idea considering various factors and estimates the total demand for a new product or service.
Assembling the Requirements:
Some basic business requirements include infrastructure or office space, human resources, key vendors or partners, working capital etc. No matter what is the type of the business, an entrepreneur has to work towards assembling and organizing all the requirements once he/she is sure about the practicality and profitability of the proposition. Once this function is performed, the project is set to start smoothly.
Raising capital for a business is one of the core functions that entrepreneurs perform themselves, not just at the initial stage of the business, but even to grow and scale the business. First, the requirements of finances are estimated. Next, the sources from which capital will come are determined.
Questions and Answers
- Who is an Enterpreneur?
Ans. An entrepreneur is a person who is self-employed, is willing to take a calculated risk and brings in a new idea to start a business.
- Define the term Entrepreneurship.
Ans. The process of developing a business plan, launching and running a business using innovation to meet customer needs and to make a profit is entrepreneurship.
- Define Enterprise.
Ans. An Enterprise is a project or undertaking that is bold and fulfills a need of the society which no one has ever addressed.
- What are the positive impacts of Entrepreneurship on the society?
- Increase economic growth
- Fosters creativity
- Stimulates innovation and efficiency
- Create jobs and gives employment opportunities
- Solve the problems of the society
- Encourages welfare of the society.
- Fulfills ever growing and ever changing demands of the society.
- Give any three entrepreneurship activities related to our society.
Ans. Small Scale entrepreneurship :This kind of entrepreneurship refers to starting industry in which manufacturing, trading, services and production all are done on a small scale for micro scale. Such businesses serve as the backbone of many developing countries.
Agricultural entrepreneurship : It can be defined as being primarily related to the marketing and production of inputs and products used in agricultural activities. Farmers have been benefited the most with the rise in agricultural entrepreneurship as it leads to low cost innovation in farming processes.
Women entrepreneurship : It is the form of entrepreneurship where women organizes all the factors of production, undertaker and provide employment.
- Define the term `hard work’ as a quality of entrepreneurship.
Ans. An entrepreneur must be very hardworking to become successful. Successful entrepreneurs adapt to the habit of hard work form a very early stage. The ability of hard work makes it possible to move them towards the achievement of their objectives.
- Name the types of Entrepreneurial functions.
- Organization building and Management
- Risk taking
- Name the types of Promotional functions.
- Idea discovery
Multiple choice Questions
- Some common entrepreneurship activities related to society includes.
a) Social Entrepreneurship b) Women Entrepreneurship
c) Agricultural Entrepreneurship d) All of the above
Ans. All of the above
- Which of the following is an important role played by society to boost Entrepreneurship?
a) Provides raw material b) Creates needs and demand
c) Both (a) & (b) d) None of the above
Ans. Both (a) & (b)
- The adverse impact of Entrepreneurship on society is
a) Degradation b) Economic growth
c) Innovation d) Efficiency
- Which of the following is a quality of Entrepreneurship?
a) Optimisitic b) Independent
c) Self confident d) All of the above
Ans. All of the above
- Which of the following is not the step taken by an entrepreneur to build up an organization?
a) Finance and Accounts b) Production and operation
c) Marketing d) Human Resource Management
Ans. Production and operation
- Some positive impacts of entrepreneurship are ___
a) Fosters Creativity b) Create job opportunities
c) Problem-solving d) All of the above
Ans. All of the above
- Which of the following is not a promotional function of an entrepreneur?
a) Taking risk b) Idea discover
c) Detailed Investigation d) Financing
Ans. Taking risk
- Full form of HRM is _____
a) Human Research and Marketing b) Human Research Manager
c) Human Resource Management d) None of the above
Ans. Human Resource Management
Fill in the Blanks
- Entrepreneurship has the potential to bring a difference in the mindset and skills of an individual.
- Entrepreneurship can be described as starting a business using resources available to a person.
- As the business prospers its impact on the society also increases.
- Successful entrepreneurs show perseverance in their pursuit.
- Entrepreneurs innovates by introducing new concepts, products, services etc.
- Raising capital for a business is one of the core function that entrepreneurs perform themselves.
- The basic objective of a trading is to meet the economic, social and cultural needs of its members.