Unit 7 Entrepreneurship

Give long answers to the following short response questions (SRQs).

Q.1. How well does the entrepreneur fit the entrepreneurial profile?

Ans: What is an Entrepreneur?

An entrepreneur is a person who starts or own a business, organizes and manages it taking on financial risks for the sake of profit. He who shifts economic resources out of an area of lower and into the area of higher productivity and greater yield.

A brief summary of characteristics one successful entrepreneur must possess are:

1. Desire for responsibility.

Entrepreneurs feel a deep sense of personal responsibility for the outcome of ventures they start. They prefer to be in control of their resources and they use those resources to achieve self-determined goals.

2. Preference for moderate risk.

Entrepreneurs are not wild risk-takers but are instead calculated risk-takers.

3. Self-reliance.

Entrepreneurs must fill multiple roles to make their companies successful, especially in the early days of a start-up.

4. Confidence in their ability to succeed.

Entrepreneurs typically have an abundance of confidence in their ability to succeed and are confident that they chose the correct career path.

5. Determination.

Some people call this characteristic “grit,” the ability to focus intently on achieving a singular, long-term goal. Studies show that grit is a reliable predictor of achievement and success, whether the goal involves launching a successful business or successful entrepreneurs.

6. Desire for immediate feedback.

Entrepreneurs enjoy the challenge of running a business, and they like to know how they are doing and are constantly looking for feedback.

7. High level of energy.

Entrepreneurs are more energetic than the average person. That energy may be a critical factor given the incredible effort required to launch a start-up company.

8. Future orientation.

Entrepreneurs have a well-defined sense of searching for opportunities. They look ahead and are less concerned with what they did yesterday than with what they might do tomorrow.

9. Skill at organizing.

Building a company “from scratch” is much like piecing together a giant jigsaw puzzle. Entrepreneurs know how to put the right people together to accomplish a task.

10. Value of achievement over money.

One of the most common misconceptions about entrepreneurs is that they are driven wholly by the desire to make money. To the contrary, achievement seems to be entrepreneurs’ primary motivating force; money is simply a way of “keeping score” of accomplishments-a symbol of achievement.

Q.2. Interpret the advantages and disadvantages that the entrepreneur sees in owning a business.

Ans: The benefits of entrepreneurship.

Driven by these personal characteristics, entrepreneurs establish and manage small businesses to gain control over their lives, make a difference in the world, become self-fulfilled, reap unlimited profits, contribute to society, and do what they enjoy doing.

The drawbacks of entrepreneurship.

Entrepreneurs also face certain disadvantages, including uncertainty of income, the risk of losing their investments (and more), long hours and hard work, lower quality of life until the business gets established, high-stress levels, and complete decision-making responsibility

Q.3. Conclude the advice that could be offered to someone who is considered to launch a business.

Starting a business is exciting but also challenging. It takes good planning, preparation, and commitment. Here’s some advice for getting started:

Research and Check Your Idea:

Before jumping in, carefully research your business idea to make sure it can work. Study the market to understand customer needs, competition, and trends. Get feedback from potential customers and mentors to confirm that there’s real demand for your product or service.

Make a Strong Business Plan:

Create a plan that covers your goals, target customers, marketing, operations, and finances. This plan will act as a guide to help you make decisions and stay on track. Update your plan as your business grows.

Focus on What Makes You Unique:

Think about what makes your business different from others. Whether it’s special features, high quality, great service, or competitive prices, make sure your customers know what sets you apart. Try to solve specific problems or meet needs that other businesses aren’t addressing.

Build a Support Network:

Surround yourself with people who can support and guide you, like mentors, advisors, and other entrepreneurs. Experienced people can give helpful advice and insights. Join networking events or groups to connect with others and find useful resources.

Start Small and Grow Slowly:

Don’t try to do too much too soon. Start with a small, simple version of your business, test it out, and get customer feedback. Focus on reaching early goals and building a solid base before expanding.

Focus on Customer Experience:

Make customer satisfaction a priority. Listen to feedback, respond to needs, and try to exceed their expectations. Building strong relationships with customers can lead to repeat sales and referrals, helping your business grow.

Stay Committed and Positive:

Running a business takes hard work and persistence. Stick to your goals even during tough times. Celebrate small successes, stay positive, and remember that success often takes time and effort.

Q.4 Articulate the main reason for young people to be involved in business.

Ans: Young people have many reasons to get into business, each influenced by their personal goals, dreams, and opportunities. Here are some main reasons why young people may choose to start their own businesses:

A Chance to Be Creative:

Starting a business lets young people use their creativity, follow their passions, and bring their ideas to life. Unlike regular jobs, owning a business allows them to create unique products or services that reflect their interests and skills.

Desire for Independence:

Many young people like the idea of being their own boss. Running a business gives them control over their work, lets them make their own decisions, and offers flexibility. This freedom is appealing to those who want to shape their own future.

Making a Positive Impact:

Younger generations often want to make a difference. Starting a business gives them a way to tackle social issues, support important causes, and create positive change.

Building Financial Security:

Starting a business can lead to financial independence early in life. Instead of following a traditional career path, a successful business can bring high earnings, ownership, and long-term financial benefits.

Using Technology and Digital Platforms:

Young people are comfortable with technology, which they can use to start and grow businesses more easily. With tools like e-commerce and digital marketing, they can reach customers worldwide, cut costs, and even compete with larger companies.

Q.5. Enlist contributions that small businesses make to our economy.

Small businesses are essential for economic growth, innovation, and job creation, helping both local communities and the larger economy. Here are some of the main ways they contribute:

1. Creating Jobs:
   Small businesses provide a large number of jobs, hiring people across different fields and helping reduce unemployment. By hiring locally, they support household incomes and increase spending, which boosts the economy.
2. Encouraging Innovation:
   Small businesses often bring fresh ideas, new products, and innovative business models. Their creativity and willingness to take risks lead to advancements that can improve industries and benefit society.
3. Supporting Local Communities:
   Small businesses help make communities stronger by offering goods and services that meet local needs. They often support community events, charities, and projects, which builds a sense of connection and improves quality of life.
4. Promoting Economic Diversity:
   By offering unique products and services, small businesses increase competition and reduce dependence on large companies. This gives consumers more choices, keeps prices fair, and encourages economic growth.
5. Creating Wealth and Opportunities:
   Small businesses help people achieve financial independence by turning ideas into income-generating companies. This builds wealth for individuals and families, supporting economic mobility and creating a culture of entrepreneurship.
6. Contributing to Trade:
   Small businesses also export products and services, which helps them grow beyond local markets. Through digital tools and e-commerce, they can reach international customers and add to global economic growth.

Select the suitable answer for the following Multiple Choice Questions (MCQs).

1. Which are the function of an entrepreneur?

a) Risk bearing

b) Innovation

c) Organizing and managing

d) a, b, c

2. An entrepreneur enters in to business to improved quality product by their invention and discoveries comes under

a) Technical entrepreneur

b) Professional entrepreneur

c) Novice Entrepreneur

d) a, b, c

3. An entrepreneur who introduces new ideas, methods of production and discovers a new market is called as

a) Technical entrepreneur

b) Innovative Entrepreneur

c) Novice Entrepreneur

d) a, b, c

4. Entrepreneurship can……..the Gross National Product

a) Increase

b) Decrease

c) Neither increase nor decrease

d) None of a, b, c

5. Entrepreneurship can ……the Unemployment

a) Increase

b) Neither increase nor decrease

c) Decrease

d) a, b, c

6. A stable and dynamic political environment play

a) Positive role in business growth

b) Negative role in business growth

c) No role in business growth

d) None of a, b, c

7. A business plan is a written summary of:

a) Proposed business venture

b) Its operational and financial details

c) Its marketing opportunities and strategy

d) a, b, c