Unit 1

Entrepreneurship

Q1) What is Entrepreneurship? Write its concept.    5

A1) Entrepreneurship refers to the method of making a replacement enterprise with associate degree innovative plan and bearing any of its risks, with the read of creating the profit. It's associate degree act of seeking investment and production chance, developing and managing a business venture, therefore on undertake production perform, composition inputs like land, labor, material and capital, introducing new techniques and product, distinguishing new sources for the enterprise.

Entrepreneurship may be a method of actions of associate degree businessperson WHO may be a person forever in search of one thing new and exploits such concepts into paid opportunities by acceptive the danger and uncertainty with the enterprise. Entrepreneurship involves 3 aspects-

1. Entrepreneur: The one that initiate (the plan /the thought / the concept) and take risk of promoting the business idea.

2. Entrepreneurship: it's the method of initiating the business plan or promoting the business venture. He undertakes all the danger connected with the new venture like risk of loss, risk of rejection within the market different connected risks.

3. Enterprise: it's the business venture started by the businessperson to undertake business activities.

Some samples of businessperson area unit entrepreneur (Microsoft), Warren Buffet (Hathaway), Gordon Moore (Intel) Steve Jobs (Apple Computers), Jack Welch (GE) GD Birla, Jamshedji Tata (TATA), Dhirubhai Ambani (Reliance), Ritesh Agarwal (OYO) etc.

Concept

The figure 1 shows the concept of entrepreneurship-

Figure 1: Concept of Entrepreneurship

Entrepreneurship comes from the French word "entrepreneur", and both German uternehmen mean individuals who are funeral directors, that is, individuals who endanger new ventures. Entrepreneurship is a dynamic activity that helps entrepreneurs make changes in production innovation, production processes, new uses of materials, manufacturers in the market, and more. It is a spiritual attitude to effectively innovate to overcome and achieve risks and uncertainties. S

Entrepreneurs are economic transformation agents with the knowledge, skills, initiatives, motivation and innovation to reach their goals. He identifies and seizes opportunities for financial gain. He is a risk carrier, organizer and innovator.

According to economists: Entrepreneurs are those who combine workforce, materials and other resource assets to create socially viable products, as well as those who bring about change, innovation and new order.

According to management: Entrepreneurs have the vision and action plan to achieve this.

Q2) State the characteristics of Entrepreneurship.    8

A2) Following are the characteristics of entrepreneurship are:

1. Risk bearing concept

This is the most popular and best concept. "Entrepreneurship is the ability to take unlimited risk."

This revealed that entrepreneurs have to take different kinds of risks in order to set up and run a new company.

These risks are associated with changes over time and price fluctuations.

There is uncertainty in entrepreneurship as a conceptual ability. In addition, by elaborating on it, we made a slight distinction between risk and uncertainty.

According to this, "uncertainty carries risks and is neither predicted nor insured.

The ability to take such risks and provide guarantees against uncertainty is entrepreneurship.

2. Innovative concept

According to this concept, an entrepreneur is a developed country economy, whose parents have something new in the economy. "

Innovation is a specific tool for entrepreneurship.

In this concept, entrepreneurship is considered an adaptation of various innovations in the industry, of new production systems or technologies, new products, new markets, new marketing methods, new quality raw materials, new packaging, and methods. A new mix is ​​being used.

Therefore, this is considered a modern entrepreneurial concept.

3. Concept of management skills

Scholars who support this concept have transformed entrepreneurship into the ability of management skills.

Entrepreneurship as an ability to inspect, manages, and direct.

Similarly, entrepreneurship as a management skill, as well as the ability to take risks.

4. Concept of creativity and leadership

According to this concept, entrepreneurship as a creative activity and it is a function of progressive leadership. "

Similarly, entrepreneurship is the quality of developing institutional resources, developing human capabilities, performing creative activities, and coordinating new ideas.

He believes that efficient leadership creates new ideas with creativity that can be used economically.

With a high entrepreneurial spirit, creativity is also expanding.

5. Concept of high achievement ability

Entrepreneurship is a concept of high achievement, which requires the ability to innovate and make decisions at risk.

Ability to work in the latest way.

Ability to make decisions during uncertainty.

What's more, he also envisions high-level performance inspiration to make men entrepreneurs.

6. Professional concept

Modern business professionals embrace entrepreneurship as a professional concept.

They have the view that entrepreneurship may develop through education and training.

Management ability may be learned through education and training, as well as entrepreneurship may be developed through education and training.

As a result, governments and private organizations are implementing a variety of training programs for entrepreneurial development.

7. Organization and coordination concept

Entrepreneurship is an economic element that organizes and coordinates different sources of production. Entrepreneurship as "the ability to organize a company".

8. Business-oriented concept

Under this concept, entrepreneurship is expressed as an individual's business-oriented entrepreneurial spirit, encouraging them to become entrepreneurs, think about business, develop plans and programs, and set up a company.

9. Result-oriented concept

According to this concept, entrepreneurship is nowadays called result-oriented.

Well, it's not that important, what effort was made to reach the goal, how much effort was put into it, and more importantly what the outcome was.

In the business world, only those who succeed in achieving their goals are recognized as entrepreneurs.

10. Concept of personality, identity, or role transformation process

Entrepreneurship is not only about adopting new jobs and behaviours, but also about changing personality and establishing new identities through it.

Q3) The most obvious form of entrepreneurship is starting a new business. Explain.                                                                                                                                                          8

A3) Entrepreneurship is the act of becoming an entrepreneur, meaning "working person" in French. Entrepreneurs gather resources such as innovation, financial and business insights to turn innovation into an economic good. The most obvious form of entrepreneurship is starting a new business. However, in recent years the term has been extended to include social and political forms of entrepreneurial activity.

The concept of entrepreneurship has many meanings. As an extreme example, an entrepreneur is a highly qualified person whose pioneers change and has characteristics found in only a small part of the population.

According to AH Cole, "entrepreneurship is the deliberate activity of an individual or a group of related individuals to initiate, maintain, or expand profits from the production or distribution of economic goods or services. “

Entrepreneurship promotes small businesses in society. The government has accepted the fact that SMEs play an important role in the country's economic development. Most economists today agree that entrepreneurship is a necessary factor in stimulating economic growth and employment opportunities in all societies. Small businesses are an integral part of our future economic prosperity for the following reasons:

Job Creation: Entrepreneurship development is seen as a means of job creation through the promotion of SMEs. India is a much more developed and positive country than the countries of the Third World and has the potential to lead to entrepreneurship development activities. However, India can benefit from well-documented success experiences in developed countries such as the United States, Japan and the United Kingdom in the areas of job creation and SME promotion. Steady growth in consumer spending, growing retail sales, a strong housing market, continued expansion of the services sector, low inflation and rising labour costs, and falling interest rates have contributed to the healthy environment for SMEs. In India, government policy, political and economic environment greatly encourages the establishment of new and small businesses. Self-employed and small industry schemes have been further liberalized in the last decade.

SME Dynamism: Good dynamism is one of the characteristics of SMEs. The quality of this dynamism has its roots in the essence of SMEs. The structure of small businesses is less complex than that of large businesses, which facilitates faster and smoother communication and decision making. This increases the management flexibility and agility of small businesses. Small businesses also often allow owners with a stronger entrepreneurial spirit than hired business owners to tackle risks and challenges.

Balanced economic development: SME promotion requires relatively little investment and is easy to implement in rural and suburban areas. This will create additional jobs in these areas and prevent the movement of people from rural to urban areas. Since the majority of people live in rural areas, much of our development efforts should therefore be directed to this sector. SMEs utilize local resources and are ideal for rural and undeveloped sectors. This also leads to industrial diversification, reduced concentration of economic power and balanced regional development.

Enterprise Innovation: Enterprises need to be innovative for survival and improved performance. SMEs are considered to have a relatively high need and ability to innovate. SMEs are not faced with the constraints imposed by large investments in existing technologies. Therefore, they are free and forced to innovate. The development of entrepreneurship is accelerating the pace of growth of SMEs in India. As the number of SMEs increases, innovation will increase and Indian industry will compete in the international market.

Q4) Write the functions of entrepreneurship.     8

A4) Following are the functions of entrepreneurship:

1. Take the initiative

Entrepreneurship is an active activity that takes actions that others may not even notice.

This unique feature of entrepreneurship provides our civilization with a wide variety of products, behaviours, production techniques and more.

Therefore taking the initiative with such purpose and qualification is a major function of entrepreneurship in all economies.

2. Organize resources

Organizing involves identifying the resources needed to realize a particular idea. Resources include human and inhuman resources.

Organizing entrepreneurship increases productivity, promotes new ventures, distributes and supervises work and responsibilities, and removes barriers to work.

Therefore, entrepreneurship is the fur of taping tools that envision indigenous skills and resources for productive purposes.

3. Identify opportunities and prospects

Entrepreneurship searches for activities of value that make an economic and social contribution.

It identifies new opportunities in the field of socio-economy that have beneficial prospects. Therefore, entrepreneurs are called seekers of hope for blind spots, and this feature has brought great benefits to our society and entrepreneurship.

4. Risk taking

Entrepreneurship takes the risk of new ventures.

For innovative action in the field of production technology of new products and new raw materials used for production in volatile markets.

In addition, it also takes the risk of theft, robbery, snatching market depression and hooligans that may be related to new entrepreneurship. This is a major function of entrepreneurship in developing countries.

5. Decision making

Entrepreneurship is a new initiative, so we need to determine multivariate issues that affect new ventures.

Entrepreneurship needs to determine the quality of the equipment used, prices and their fluctuations, shortages, capital structure, project feasibility, organizational structure, management philosophy and more.

We know that decision making is a process and that the entrepreneurial spirit for success n goes through this process.

6. Technology transfer and adaptation

Entrepreneurship around the world brings technology invented by different visitors around the world and makes it appropriate by making the necessary adjustments to local conditions.

This function of entrepreneurship involves identifying the right technology with market potential and adapting it to the local environment.

From time to time, technology uses indigenous materials that reduce cost and resource waste. This entrepreneurial spirit virtually unites the world in terms of homogeneous technology.

7. Innovation

Entrepreneurship innovates new production processes or technologies, markets, sources of new materials, management, strategies or technologies, investment opportunities, etc., which Schumpeter (1934) calls a fundamental feature of entrepreneurship.

In a changing environment, entrepreneurs find the most feasible opportunities for ventures and improved or clear technologies that give them new opportunities for competitive advantage and prosperity.

Innovation is a creative way to add new utilities to existing situations and products. Entrepreneurship through innovation creates innovative products and businesses for human society.

8. Fostering autonomy

Entrepreneurship is the exposure of the creative ability to provide personal satisfaction and independence. The unique freedom to think differently is the driving force of entrepreneurship.

In this way, entrepreneurship promotes autonomy to create something new and valuable by applying devoted effort and time.

9. Social responsibility

The entrepreneurial spirit of its innovative technology somehow facilitates human effort. Reopen closed industry with innovative management strategy and technology

It also motivates new entrepreneurs and attracts them to engage in entrepreneurial ventures.

Entrepreneurship offers new products and ideas that give society momentum and diversity.

Therefore, entrepreneurship fulfils its social responsibility to protect the well-being, interests and financial interests of society. It also promotes community standards by providing work and amenities.

10. Public relations

Entrepreneurship is a new venture that requires social acceptance by regulators and the general public.

Through public relations, governments and those subject to entrepreneurship are confident that they will allow entrepreneurs to accept and implement entrepreneurial ventures.

History tells us that many entrepreneurs were ignored, forced, and even eliminated because of their entrepreneurial activity. Public relations are an important function of entrepreneurship, as failure is costly.

Q5) What risk does an entrepreneurship face?     5

A5) Following are the risk taken by entrepreneurship is:

1. Lack of stable Paycheque

Entrepreneurs make obscene amounts – true. But no one will be Steve Jobs for a day, a couple of months. The road is long, not to mention very uncertain and risky.

It's pretty black and white. You need to quit your current job, abandon your career, and dive deep into entrepreneurship. There used to be a stable source of income, but now there is no guarantee.

This is the most serious risk that emerging entrepreneurs need to consider before the final plunge. Because even in the first few months, or even the year, you have to work hard to maintain your company, rather than thinking of tremendous or stable income.

Many entrepreneurs rely on working part-time on independent gigs, at least initially. By doing so, they can get a reliable safety net.

2. Beware of competitors

Despite fierce competition, all entrepreneurs decide to float and start their business. But there are other forms of competition that may not be so easy to face.

Take Uber as an example. It's very clear how the company is disrupting the market, or more precisely the taxi market. This is one risk you have to take on your entrepreneurial journey.

Unfortunately, like our competitors, there is no way to prevent confusion. Entrepreneurs want to be able to work hard at risk and come out unharmed.

There are some cases where a company went bankrupt completely due to the turmoil. The same thing happened to "Blockbuster" when Netflix disrupted the market and forced them to file for bankruptcy protection.

3. Currency fluctuations

Globalization is rampant today. There is no mistake. And all entrepreneurs are trying to enter the foreign market very sensitively by increasing their outreach.

However, this scenario paves the way for one of the most common entrepreneurial risks: uncertain currency fluctuations. If this fluctuation somehow goes against your favour, you will have to worry about rising exchange rate losses.

4. Cyber ​​security risk

One of the most common entrepreneurial risks in the world today, in particular, is cyber security risk.

Everyone knows the dramatic impact it can have on your company if your sensitive information is leaked. People without the proper authority should have no access to important, sensitive employee and company data.

We recently confirmed the impact of the Cambridge Analytica scandal and the involvement of big names like Facebook in the data breach scandal. This was followed by public resentment towards Facebook and its CEO Mark Zuckerberg. And that wasn't the end.

5. Maintaining a stable customer pipeline

It's hard enough to convince the first client, but it's not easy to maintain a stable customer pipeline, even when your business is up and running.

It's also a bit difficult to get people to trust you when you're in the early stages of your business. To get a stable lead flow in your pipeline, you need to work on building a large network of loyal communities and prospects.

6. Trust business partners or key employees

Many entrepreneurs overlook this, but trusting key employees and business partners is one of the most common entrepreneurial risks.

One is that it is unlikely that you will have a large number of employees when you are just starting out. Instead, you probably only have a business partner and a few employees.

To get things up and running, you need to put a lot of trust in your business partners or key employees. Now, this risk is unavoidable because there are not many options at this stage of life.

There are numerous issues that can arise if this trust turns out to be irrelevant. First, a trusted employee or partner knows a great deal of important data and information about the company. In addition, putting all absolute trust in one person's abilities can also lead to timeline failures.

7. Sacrifice private capital

Want to be an entrepreneur? It is amazing!

But did you think about the funding you would need to start your own business venture?

I think you rely heavily on external funding, but not all entrepreneurs can do that. Often, you try to dispel your own personal savings to fund your business venture.

This is one of the most common entrepreneurial risks, as it is even more burdensome.

If God forbids, your business venture won't work, and you may not even have a reliable safety net. This is actually a big risk, but once things start to recover, you'll be happy to take this risk.

8. Invest in your personal time and health

If you think being an employee robs you of your social life and maximum time (and health), you haven't seen anything yet.

Being an entrepreneur is a tedious task that robs you of much. At first, you may feel that the entire business venture is just stealing resources without giving anything in return. Lack of revenue and profits can have a negative impact on your mental and physical health, but since you've started a business, don't give up in the meantime.

Think of this as just a few obstacles in the path.

Always keep in mind that you are not the only one taking this risk. In fact, it's one of the most common entrepreneurial risks. But if all goes well, it turns out to be a risk worth taking.

Q6) What is business risk? What are its types?     8

A6) Business risk is the exposure a company or organization has to factor(s) that will lower its profits or lead it to fail. Anything that threatens a company's ability to achieve its financial goals is considered a business risk. There are many factors that can converge to create business risk. Sometimes it is a company's top leadership or management that creates situations where a business may be exposed to a greater degree of risk.

However, sometimes the cause of risk is external to a company. Because of this, it is impossible for a company to completely shelter itself from risk. However, there are ways to mitigate the overall risks associated with operating a business; most companies accomplish this through adopting a risk management strategy.

When a company experiences a high degree of business risk, it may impair its ability to provide investors and stakeholders with adequate returns. For example, the CEO of a company may make certain decisions that affect its profits, or the CEO may not accurately anticipate certain events in the future, causing the business to incur losses or fail.

Business risk is influenced by a number of different factors including:

• Consumer preferences, demand, and sales volumes
• Per-unit price and input costs
• Competition
• The overall economic climate
• Government regulations

There are different types of risks that entrepreneurs face, from the beginning of an entrepreneur's journey to the eventual turn of their ideas into a successful venture. Below are the different types of entrepreneurial risk.

1. Financial risk

All entrepreneurial ventures need the money to bring their ideas to fruition. Therefore, a significant risk facing entrepreneurs is arranging funds. This can be in the form of a loan, capital arranged with the help of family or friends, or the entrepreneur's own savings. You need to have a good financial plan to prevent entrepreneurs from going bankrupt. Therefore, you need to take the calculated risk.

2.     Strategic risk

This is another risk associated with entrepreneurship dealing with the construction of the right strategy. Each business needs a nearly perfect business plan. However, even a well-thought-out business plan can lead to failure. As a result, the strategy becomes invalid. Companies that succeed in adapting to changing environments and new challenges can survive difficult times, but others fail.

3.     Technology risk

In the digital age, it is imperative to constantly upgrade and embrace new technologies. These disruptive technologies can change the entire entrepreneurial game by mitigating complex processes. On the contrary, those who are reluctant to change their traditional way of working and do not invest in new technologies can suffer significant entrepreneurial risks. Accepting technology is a time consuming process, especially if entrepreneurs work in a highly competitive industry.

4.     Market risk

Entrepreneurial risk can also arise from market-based factors. For example, when the economy is growing and blooming, customers may be attracted to buying luxury goods. This leads to an increase in demand for luxury goods. On the other hand, a downturn can significantly reduce demand for such products, leading to serious risks faced by entrepreneurs. In such scenarios, tools such as market research, research, and analysis help entrepreneurs manage entrepreneurial risk efficiently.

5.     Compliance risk

When entrepreneurs plan to start a business in the country, they must be aware of land laws. Companies need to comply with existing legislation and adapt to the ever-changing legal environment. This is one of the significant entrepreneurial risks that entrepreneurs may face. Laws that favour or disagree with the industry can change the course of its success.

6.     Reputation risk

The main risk associated with entrepreneurship is related to the reputation of the company. When a company's reputation is damaged, its profits drop sharply. Customer credibility is reduced and the image is further damaged. In addition, the company cannot find talented employees who hesitate to work in unrepeated places.

7.     Operational risk

This entrepreneurial risk arises when a company is unable to carry out its day-to-day operations efficiently. As a result, the overall productivity of the company is reduced. This can also be due to human failure or process failure. External events, such as natural disasters, can also affect a company's operational efficiency.

8.     Competition risk

To be successful as an entrepreneur, it is important to be aware of your competitors. If there are not enough competitors in the industry, it may mean that the demand for related products is not sufficient. In addition, entrepreneurs must be able to take swift action to patent innovative ideas and products before their competitors can take advantage of them.

Q7) What is Entrepreneur? Discuss its features.     8

A7) A bourgeois is a personal UN agency creates a replacement business, takes most of the risks, and enjoys most of the rewards. The method of beginning a business is thought as entrepreneurship. Entrepreneur’s area unit typically thought-about sources of innovators, new ideas, products, services, and businesses / procedures.

Entrepreneurs play a crucial role in any economy by exploitation the talents and initiatives required to predict wants and conveyance nice new concepts to the market. The entrepreneurial spirit that has evidenced eminent in taking the danger of making a start up is rewarded with profit, fame, and opportunities for continuing growth. Unsuccessful entrepreneurship ends up in loss and reduced penetration of stakeholders within the market.

Features:

1. Curiosity

Successful entrepreneurs have the curiosity that enables them to continually search for new opportunities. Curious entrepreneurs don't settle for what they suppose they recognize, however raise difficult queries and explore completely different ways.

In Entrepreneurship necessities, entrepreneurship is delineated because the "process of discovery."

Valuable discoveries will simply be unnoticed if you're not willing to raise queries and challenge the establishment.

2. Structured experiment

With curiosity, the requirement for structured experiments arises. As new opportunities arise, entrepreneurs have to be compelled to run tests to work out if they're value following.

For example, if you have got an inspiration for a replacement product or service that meets underserved demand, you would like to create certain that your customers are willing to acquire it. To do this, you would like to try to to an intensive marketing research, perform pregnant tests to validate your ideas, and verify if your ideas have potential.

3. Ability

The nature of business is continually ever-changing. Entrepreneurship is Associate in Nursing unvarying method, with new challenges and opportunities rising all over. It’s virtually not possible to arrange for all eventualities. Entrepreneurs have to be compelled to assess and adapt to things so they'll keep their business moving forward within the event of unforeseen changes.

4. Decisiveness

To achieve success, entrepreneurs should create tough selections and support them. As a frontrunner, you're answerable for guiding your business, from finance and strategy to resource allocation.

Being definitive doesn't essentially mean having all the answers. If you wish to be Associate in Nursing bourgeois, it suggests that creating difficult selections and having the arrogance to identify them. The choice to require corrective action is equally necessary if the results prove unfavourable.

5. Team building

Great entrepreneurs recognize their strengths and weaknesses. Build a balanced team that enhances your skills instead of limiting your shortcomings.

In several cases, it's the entrepreneurial team, not the individual; World Health Organization drives the venture for fulfilment. Once beginning your own business, it is important to be enclosed by teammates World Health Organization have complementary skills and contribute to common goals.

6. Risk tolerance

Entrepreneurship is usually related to risk. It's true that entrepreneurs have to be compelled to take risks to launch a venture, however we have a tendency to additionally have to be compelled to take steps to attenuate it.

When launching a replacement venture, several things will fail, however several things will go well. Consistent with Entrepreneurship necessities, it is important for entrepreneurs to actively manage the risk-reward relationship and position the corporate to "benefit upwards."

Successful entrepreneurs are happy to encounter some risk so as to relish the rewards of their efforts. However, risk tolerance is closely tied to efforts to mitigate risk.

7. Snug although you fail

In addition to managing risk and creating calculated selections, entrepreneurship needs some comfort against failure.

It is calculable that just about seventy fifth of recent start ups can fail. The explanations for failure are huge and canopy everything from defective business models to lack of focus and motivation. Several of those risks will be avoided, however some are ineluctable.

Successful entrepreneurs are acquainted with failure just in case of failure. Concern doesn't hold them back, however the possibilities of success move them forward.

8. Persistence

Many made entrepreneurs are proud of the possibilities of failure, however that does not mean they provide up simply. Rather, they see it as a chance to be told and grow in failure.

Throughout the entrepreneurial method, several hypotheses end up to be wrong, and a few ventures fail altogether. a part of the success issue for Associate in Nursing bourgeois is that the temperament to be told from mistakes, keep asking queries, and last till they reach their goals.

9. Innovation

Many attribute it to the concept that innovation is inextricably joined to entrepreneurship. Typically this can be often true. A number of the foremost made start ups have adopted existing merchandise and services and have considerably improved them to fulfil the ever-changing wants of the market.

Innovation could be a hallmark of some, however not all, entrepreneurs. Fortuitously, it is a reasonably strategic thinking which will be nurtured. By developing strategic thinking skills, you'll be able to notice innovative opportunities and be ready for a made venture.

10. Long focus

Finally, the majority contemplate entrepreneurship to be the method of entrepreneurship. The first stages of a venture's launch are vital to its success, however once the business is operational, the method doesn't finish.

Entrepreneurship Essentials states, "It's easy to start a business, but it's hard to grow a sustainable and substantive business." Some of the greatest opportunities in history were discovered long after the venture was launched. "

Entrepreneurship is a long-term endeavour, and entrepreneurs need to focus on the process from start to finish for long-term success.

Q8) What is entrepreneur? What are the qualities for successful entrepreneur?                                                                                                                                             8

A8) A bourgeois is a personal UN agency creates a replacement business, takes most of the risks, and enjoys most of the rewards. The method of beginning a business is thought as entrepreneurship. Entrepreneur’s area unit typically thought-about sources of innovators, new ideas, products, services, and businesses / procedures.

Entrepreneurs play a crucial role in any economy by exploitation the talents and initiatives required to predict wants and conveyance nice new concepts to the market. The entrepreneurial spirit that has evidenced eminent in taking the danger of making a start up is rewarded with profit, fame, and opportunities for continuing growth. Unsuccessful entrepreneurship ends up in loss and reduced penetration of stakeholders within the market.

The top five qualities of a successful entrepreneur are:

1. Resolute motivation and passion

Passion is the most important quality of a successful entrepreneur.

No one can achieve anything without a passion for achieving that goal. As a result of this absolute passion, motivation begins to emerge in the entrepreneur's mind as entrepreneurs take on new tasks and learn new things to achieve their goals.

Motivation keeps you bleeding, helping entrepreneurs stay hopeful and overcome obstacles as they move toward their goals. That's why successful entrepreneurs are passionate and motivated by a whole new attitude.

2. Self-discipline

This is one of the most important characteristics of a successful entrepreneur.

If an entrepreneur can accomplish an important task (whether he is happy with it or not), he can achieve higher success.

Self-discipline basically means mastering your inner self and your inner emotions, creating a sense of responsibility to get the job done, and nurturing your own direction.

3. Risk-taking ability

Entrepreneurship is about taking risks. Entrepreneurs have the ability to take greater risks to achieve greater success, but not all risk takers are successful entrepreneurs.

Successful entrepreneurs know when to take risks and which risks are beneficial or harmful to the company or himself.

All entrepreneurs plan before taking risks, develop Plan B (in the event of an accident), and establish a good basis for the outcome of the risk.

4. Creative thinking

A successful entrepreneur is a creative thinker, and her mind is always filled with ideas. This radical ability to think of a wide range of new ideas helps entrepreneurs start different types of businesses in their own creative ways.

5. Persistence

Persistence is the most basic and essential quality of successful entrepreneurs, as even good entrepreneurs experience failures and hurdles. But with tenacity, you can regain yourself and keep moving towards your goals.

These five qualities will help you become the successful entrepreneur you are aiming for. Look for these qualities of your own and keep progressing daily for the benefit of yourself and your company.

6.  Confident

One quality of productive entrepreneurs that individuals in real time notice is their confidence. Entrepreneurs do not rise if they will or are definitely worth the success. They’re assured in their information of constructing their business productive. They’re assured in everything they are doing.

7. Open mind

Entrepreneurs acknowledge that each event or scenario may be a business chance. Ideas regarding advancement and potency, talent skills, and potential new businesses are perpetually being generated. They’re perpetually trying to find new ways that to enhance their current systems and processes. Entrepreneurs have the mysterious ability to imagine merchandise that solves issues, which can appear not possible currently. They need the power to visualize everything around them and focus it on their goals.

8. Aggressiveness

Many businesses were based to understand that entrepreneurs will do a higher job than others. They have to win within the sport they play and within the business they produce. Entrepreneurs emphasize their journal of success. To be sensible at business, entrepreneurs have the power to explore all their choices and stay willing to pursue their goals. They’re willing to just accept any challenges they will face so as to form them even higher.

Q9) Write the functions of entrepreneurial.      5

A9) Entrepreneurial function

1. Organizational function: Organization is part of management, including establishing the intentional structure of the roles of people within an organization. Entrepreneurs are responsible for organizing the activities necessary to produce goods and services.

2. Conceptualization of new opportunities and possibilities: Entrepreneurs play an effective role in identifying possible opportunities for production purposes. He is always looking for investment opportunities.

3. Risk-taking: He takes risks related to his investment. He / she faces many risks in his / her entrepreneurial efforts. To face the risks, he / she develops long-term plans and policies and makes innovative efforts.

4. Decision making: Entrepreneurs make investment decisions. Investment decisions include the selection of assets in which money is invested. Business decisions, on the other hand, include procurement of machinery and equipment, product quality, product pricing, product diversification, and optimal capital structure decisions.

5. Technology Transfer: Entrepreneurs play a very important role in transferring technology from available sources. In developing countries, entrepreneurs seek to adopt the right technology.

6. Implementation of innovation: Bringing newness to venture activities through innovation of new production processes, development of new markets, identification of new management methods, etc.

7. Utilization of experience: Entrepreneurs utilize not only their own experience, but also the experience of successful entrepreneurs of others, especially in other countries.

8. Manager role: Successful entrepreneurs are also efficient managers. They perform administrative functions of planning, organization, guidance, and management.

Q10) What is entrepreneur? Discuss the types of entrepreneur?   5

A10) An entrepreneur is typically an individual who creates a new business, plays an active role in its operations, assumes most of the financial risk, and enjoys most of its success. The process of creating a new business is known as entrepreneurship and is often driven by new ideas for products or services. 

The idea of an entrepreneur continues to evolve and expand, from the founder of a start up to a small business owner to the leader of a corporate organization. As entrepreneurship becomes more critical to the human work experience, it’s essential to understand how and why it works.  

An entrepreneur is a person who pursues an opportunity, often commercially driven, to bring a new product or service to market with limited resources and high risk. The process of creating a new business is entrepreneurship, also defined as organizing limited resources to capitalize on a business opportunity. In short, an entrepreneur is someone who identifies a need for a new product, process, or service and builds a business around that need.

• Alternate definition: Entrepreneur refers to the founder of a business who has assumed all financial risk and uncertainty for the business in the long term.
• Alternate names: Businessperson, founder

A common type of entrepreneurial pursuit is a startup, which is a business entity created by an entrepreneur after they have identified a compelling opportunity for growth. According to the Center for American Entrepreneurship, growth is the primary objective for entrepreneurs who launch startups—more so than being one’s own boss.

1. Innovative Entrepreneurs:

These area unit the inventors of latest ideas, new product, new production strategies or processes, discovering potential markets and restructuring the corporate. These area unit business leaders and contribute considerably to the country's economic development. Innovative entrepreneurs have the bizarre foresight to acknowledge the demand for merchandise and services. They’re forever able to take risks as a result of the relish the joy of the challenge, and each challenge has some risks related to it. Rattan Tata is claimed to be associate degree innovative businessperson UN agency launched the Tata Nano automobile at a reasonably low value.

b.    Imitation Entrepreneurs:

Imitation entrepreneurs area unit people who instantly copy new inventions created by innovative entrepreneurs. These don't introduce on their own. They solely imitate the technologies, processes and strategies pioneered by others. These entrepreneurs area unit in places wherever resources and industrial bases area unit scarce as a result of their unable to come up with new innovations. Therefore, they're appropriate for underdeveloped areas wherever they will mimic a well-established combination of inventions in developed areas so as to bring a boom to their business.

c.     Fabian Entrepreneurs:

These forms of entrepreneurs’ area unit sceptical regarding the changes which will be created to the organization. They are doing not begin the invention; however solely adjust once they're glad with the success rate. They look forward to a short time till the innovation is well tested by others and doesn't cause vital losses thanks to failure.

d.    Drone Entrepreneurs:

These entrepreneurs area unit terribly conservative and do not wish to form changes to their organization, thus hesitate to form changes. They’re pleased with their current business mode and do not wish to alter although they suffer losses.

Therefore, this classification is predicated on the disposition of entrepreneurs to make and embrace innovative ideas.

Q11) What are the factors that improve entrepreneurship? What are the challenges for Indian entrepreneur?                                                                                                  5

A11) Factors that improve entrepreneurship

1. Encouragement plan by government authorities

The Government of India is also encouraging interest in entrepreneurship. We have launched a "Start up India" campaign to support entrepreneurial initiatives. Schemes have emerged to promote world-class innovation hubs and youth self-employed opportunities. The focus is especially high in technology-driven areas. The Government of India recognizes that entrepreneurship can boost the economy and improve the financial position of the people of the country. Such a belief in entrepreneurship from India's highest institutions leads to the development of interest in this area among the youth of the country.

2.     Rise of technology

Technology has made India a software powerhouse. It has the second largest number of Internet users in the world. In addition to this, work uncertainty fuels people's interest in having their own business. The industry is constantly in need of innovation to move forward, and start-ups are emerging to help companies solve their unique problems and increase efficiency in areas such as artificial intelligence and machine learning.

3.     Female entrepreneur

The wave of entrepreneurs is also being driven by female entrepreneurs who are opening up niches for themselves. Start-ups such as Zivame, Kaaryah, YourStory and POPxo have become successful ventures. Led by the female founders, they meet the market needs of their respective segments.

Challenges for Indian entrepreneurs

1. Financing for business

The challenge for start ups is to raise money for their business. To do this, you need a reliable business plan and a strategy for how to enter the market. When start-ups are convinced of the potential success of a venture, they raise money from venture capitalists.

2.     Knowledge of how to run a business

It may seem easy, but every venture needs to have a good plan in the first place. Various business schools have started entrepreneurship courses to meet the requirements of interested students who want to become entrepreneurs. These courses help students understand their expectations correctly and prepare for an entrepreneurial career.

3.     Keep up with technology

This is important for start-ups in the technology sector. It's important that they keep track of the latest technology and stay ahead of the curve. Innovations are happening every day these days, and technology is quickly becoming obsolete. They need to keep improving their products and bring new and innovative products to their customers. Innovation needs to be useful to customers. They need to do good research to support the launch of their product. If a product does not meet the needs gap of the market, even the most advanced technology cannot succeed in the market.

4.     Quality of human resources

Business success depends on the people who work for it. The right combination of people is important. These people should be trained for their work profile. For example, marketing managers need to understand the industry and its customers and plan marketing campaigns accordingly. You also need work experience to perform your job properly. In addition, they need to have the right attitude and a keen interest in working to the fullest.

Entrepreneurship thrives in a facilitating environment that drives business growth. Entrepreneurship is very important to a booming economy, as entrepreneurs are not looking for work, but are job creators for the rest. With the right support, India's entrepreneurship can lead to India's economic growth and people's prosperity.

Today, many Indians are on the cusp of start ups, which is driving economic growth and improving domestic employment. With such a thriving community and increasingly ambitious entrepreneurs coming in, we also need to learn from the existing ecosystem on how to succeed in this area. One of the great ways to do that is to take an entrepreneurship certificate program that will give you important knowledge to succeed in this area.

Q12) What are the needs required for an entrepreneur?   5

A12) Many ideas have been born and some are great, but the big question is whether they are filling existing gaps or the individual needs that form the target customer. Many entrepreneurs assume that all interesting and good ideas are not only viable as business proposals, but always viable. This is not the case.

Keep an eye on your goals

Sometimes you can't concentrate on what you want to achieve. The daily challenge of running a new business with a small team and a limited time frame is high. Still, it's important to remember the goals you're defining and working on. That's because it helps you readjust if you get out of orbit.

Making money is important

You may have started a venture as a passion or idea that needs to take a bigger form. But you need to make money to make your venture sustainable and emerging. It takes time, but it is necessary for a venture to grow without losing its commitment to be economically viable or profitable.

Maintain an agile business plan

Sometimes you get hooked on your business plan and can't revise it based on changing needs of the venture itself. Therefore, remember that your business plan is very important and provides a roadmap. However, if you need to change roads, we also change the roadmap, so it's a good idea to use a business plan to drive your strategy. However, maintaining flexibility is just as important so that the strategy is fed back into the plan and changed as needed.

People are important

Talent is very important whether you are hiring a small number of employees or a large number of employees. Appropriate personnel are needed at all levels of the organization.

These are some great tips to help new entrepreneurs embark on this exciting journey.

Q13) Write the difference between entrepreneurship and entrepreneur. 5

A13) To further explore the main differences between entrepreneurship and entrepreneurship, we need to make the following point-by-point comparisons based on different angles and terms.

1. Entrepreneurship is often the founder of a company, but entrepreneurship ranges from a single project to multiple projects to create a variety of employment opportunities in society.
2. If an individual wants to set up a $ 1 million company, this vision is entrepreneurial, but the individual who visualizes it is entrepreneur.
3. Entrepreneurs innovate / develop some unique products or services or technologies, but the process / means for innovating or discovering that a product or service is entrepreneurial.
4. An entrepreneur is a leader, motivator, or director who guides an organization towards its vision, but the tactics or practices by which an entrepreneur guides an organization is entrepreneurship.
5. Entrepreneurs are risk takers who are always ready to take risks in order to make a company profitable and serve society, but on the other hand, because there are several segments in which entrepreneurs must take risks, these Risk-taking practices are entrepreneurial.
6. Entrepreneurship is the coordinator who establishes coordination between the various important requirements of an organization, but the process of coordination is entrepreneurship.
7. Entrepreneurship is an initiative that initiates various initiatives to improve an organization, while the initiatives taken are entrepreneurial spirit.
8. An entrepreneur is someone who is planning specific activities related to marketing, finance, sales, and technology, whereas the entrepreneurial spirit is planning.
9. Entrepreneurship is usually the step of starting a new business or company that is responsible for identifying opportunities, while entrepreneurship is usually not only responsible for launching and running a new venture, but also for the risks associated with the business.
10. Entrepreneurship is an administrator, but entrepreneurship is an administrator.
11. Entrepreneurship is the creator, and entrepreneurship is creation.
12. Entrepreneurship is an engineer, but entrepreneurship is technology.

Q14) Who can be a manager? What is the difference between entrepreneur and manager?                                                                                                                                            8

A14) Managers, on the other hand, are not the owners of the company. Instead, he is the person responsible for managing and managing departments of groups or organizations of people. His day-to-day work is to manage employees and keep the organization running smoothly.

Managers need to have some of the same qualities as an entrepreneur, such as leadership, accountability, and determination. He must also be a good manager of people. Therefore, qualities such as warmth and empathy are also very important for managers.

Difference between Entrepreneur and Manager are:

1. The main difference between an entrepreneur and a manager is their position in the company. An entrepreneur is a visionary person who turns an idea into a business. As he is the owner of the business, he bears all financial and other risks. Managers, on the other hand, are employees and work on salaries. Therefore, he does not have to take any risks.
2. The focus of entrepreneurs is to start a business and later expand it. Managers focus on the day-to-day smooth functioning of their business.
3. Achievements are the main motivation for entrepreneurs. But for managers, motivation comes from the power that accompanies their position.
4. The reward for all the efforts of an entrepreneur is the profit he earned from the company. Since the manager is an employee, his compensation is the salary he withdraws from the company.
5. The entrepreneur can be informal and casual in his role. However, the manager's approach to all issues is very formal.
6. Entrepreneurs are risk takers in nature. He needs to take the calculated risk to further promote the company. Managers, on the other hand, hate risk. His job is to maintain the status quo of the company. Therefore, he cannot afford to take risks.

Q15) Throw some lights on Economic theory of an entrepreneur.  8

A15) Economic Theories

G.F. Papanek and J.R Harris are economists who encouraged financial theory.       According to them, financial incentives are the principle force for entrepreneurial activates. A few critical financial theories of entrepreneurship are mentioned below

1)  RISK BEARING THEORY OF KNIGHT

There are sure dangers which are measurable and the opportunity of such chance may be statistically anticipated and for this reason such dangers may be insured. Example of insurable dangers encompasses robbery of commodities, hearth place withinside the enterprise, unintentional loss of life etc. On the alternative hand, there are sure dangers which cannot be calculated.

The opportunity in their incidence cannot be statistically ascertained. Such dangers encompass dangers related to modifications in prices, call for and supply. These dangers are non-insurable. Prof. Knight opined that the earnings is the praise for bearing the non-insurable dangers and uncertainties. Uncertainty-bearing is one of the maximum critical capabilities in a dynamic economy. The entrepreneur bears the uncertainty concerned withinside the enterprise.

The salient factors of Knight’s concept include:

i. According to the concept, the entrepreneur earns natural income for bearing the uncertainty.

Ii. The chance of uncertainty or non-insurable dangers can't be statistically estimated.

Entrepreneurs adopt dangers of various levels in line with their cap potential advert inclination. The concept shows that the extra unstable the character of company, the better stage of earnings earned with the aid of using the marketers.

Iv. Profit is the praise of the entrepreneur for bearing uncertainties and dangers. Hence, it needs to be part of the ordinary cost.

v. The praise of the entrepreneur is uncertain. Entrepreneur ensures hobby to lender of capital, wages to employees and hire to the landlord.

Vi. The stage of uncertainty in enterprise may be decreased with the aid of using making use of the method of consolidation. The overall stage of uncertainty may be decreased with the aid of using pooling man or woman instances.

F.H. Knight’s concept is one of the maximum state-of-the-art theories to provide an explanation for delivery of entrepreneurship primarily based totally on earnings. But, the concept suffers from positive drawbacks as pointed with the aid of using the critics.

i. The function of an entrepreneur has now no longer been elaborately supplied with the aid of using the concept. The entrepreneur’s pastime has been restrained to uncertainty bearing. Modern enterprise sports are one-of-a-kind. Often, there may be a dichotomy among possession and management. These elements have now no longer been taken into consideration.

Ii. The uncertainty-bearing concept mentioned the idea of earnings in a indistinct way. The actual estimation of earnings for the entrepreneur has now no longer been supplied withinside the concept

Iii. Profit as residual earnings of the entrepreneur has been criticized.

Iv. Critics sense that uncertainty-bearing need to know no longer be dealt with like different elements of manufacturing like land, labour and capital. It is a mental idea and need to be dealt with in a one-of-a-kind manner.

2) THEORY OF ADJUSTMENT OF PRICE- The adjustment of charges is the principle function of the entrepreneur. According to Kirzner, alertness to disequilibrium is the distinguishing traits of an entrepreneur. Alertness permits a few people to interfere withinside the marketplace with the aid of using converting the charge even as different people definitely reply to marketplace with the aid of using converting their shopping for and promoting plan in lieu of the brand new charge.

Kirzner in addition keeps that the number one function of financial concept is to provide an explanation for behaviour in phrases of functional human motion and take into account to that volume functional human moves can have interaction to supply surprising earnings.

3) HARVARD SCHOOL THEORY- According to this college concept, entrepreneurship takes a functional pastime which initiates, keep or increase an earnings incomes company in interplay with the inner scenario of the enterprise or with the financial, political and social occasions surrounding the enterprise. This concept emphasised styles of sports.

a) The organisation or co-ordination pastime and

b) The sensitivity to the environmental traits that have an effect on choice making.

4) INNOVATION THEORY OF SCHUMPETER- Joseph Schumpeter propounded the famous revolutionary concept of entrepreneurship. Schumpeter takes the case of a capitalist closed financial system that's in desk bound equilibrium. He believed that marketers disturb the desk bound round glide of the financial system with the aid of using introducing an innovation and takes the financial system to a brand new stage of development. The sports of the marketers constitute a scenario of disequilibrium as their sports ruin the recurring round glide.

Innovation may want to contain any of the subsequent:

i. Innovation of recent products.

Ii. Innovation in novel strategies or methods of manufacturing.

Iii. The beginning up of a brand new market.

Iv. Entrepreneurs would possibly locate new supply of deliver of uncooked materials

v. Innovation in control. This method reorganization of an industry

Criticisms:

Schumpeter’s concept has been subjected to the subsequent criticisms:

i. Critics sense that the concept over emphasised on progressive features of the entrepreneur. It omitted the organizing factors of entrepreneurship.

Ii. Schumpeter had absolutely omitted the chance-taking characteristic of the entrepreneur, which can't be omitted. Whenever an entrepreneur develops a brand new mixture of things of manufacturing, there's sufficient chance involved.

Iii. The concept is greater relevant in advanced nations only. In growing nations there's a paucity of progressive entrepreneurs.

Iv. The concept does now no longer offer the reason as to why few nations have greater entrepreneurship expertise than others.

Despite of the entire above criticisms Schumpeter’s concept is taken into consideration as a landmark withinside the enlargement of entrepreneurship theories.

5) LEIBENSTEIN’S X-EFFICIENCY THEORY- The idea of X-performance turned into brought through Harvey Leibenstein a referred to economist in1966 in his article titled “Allocative performance vs. X-performance”. This is likewise called X-inefficiency. In popular X-inefficiency refers back to the distinction among the premiere green behaviour of enterprise in concept and the located behaviour is exercise which happens as a result of distinct elements.

X-performance refers back to the effectiveness with which a given set of inputs are used to provide outputs. If a specific company is generating the most output it can, given the assets it employs with the nice to be had technology, it's miles stated to be technical-green. X-inefficiency happens whilst technical-performance isn't achieved. Whenever an enter isn't used correctly the distinction among the real output and the most output as a consequence of that enter is a degree of the diploma of X-performance.

Harvey Leibenstein had cited that for allocative performance the entire economic system turned into taken into consideration while in case of X-performance simply precise agencies and industries are to be taken into consideration.

X-performance arises both due to the fact the company’s assets are used withinside the incorrect manner or due to the fact they may be wasted, that is, now no longer used at all.

The entrepreneur has been entrusted roles; first the position of an opening filler and 2nd an enter completer. The manufacturing characteristic typically has positive deficiencies. These deficiencies and hole get up due to the fact all of the elements of manufacturing characteristic can't be marketed. The entrepreneur has been entrusted the task to fill the gaps withinside the market. The 2nd position of the entrepreneur is entering completion. The entrepreneur has to mobilize all of the to be had inputs in an effort to enhance the performance of current manufacturing strategies.

Leibenstein recommended sorts of entrepreneurship. First kind is the ‘Routine entrepreneurship’ which includes the essential features of control of enterprise. Second kind is that of the ‘New entrepreneurship’ which includes progressive entrepreneurship.

The concept has many novel contributions however has been criticized on following counts:

I. The specific have an effect on which the X-performance has on output of an corporation can't be determined.

II. The concept is much less predictable in comparison to ordinary theories.

Q16) Explain the psychological theory of entrepreneur.    8

A16) PSYCHOLOGICAL THEORIES

According to the psychologists, entrepreneurship is maximum possibly to emerge whilst a society has enough deliver of person owning precise mental traits. The theories proposed through McClelland and Hagen fall beneath essential mental theories. They are defined below-

1) DAVID MCCLELLAND THEORY OF HIGH ACHIEVEMENT   - This concept turned into advanced through David. McClelland. McClelland involved himself with monetary boom and the elements that have an effect on it. In this context, he attempts to locate the inner elements i.e. “human values and reasons that lead guy to make the most opportunities, to take gain of beneficial alternate conditions.” That is why he offers significance to the progressive traits of entrepreneurial position. The entrepreneur is involved with want for fulfilment (n-fulfilment).

The n-fulfilment is referred to as “a preference to do well, now no longer a lot for the sake of social reputation or prestige, however for the sake of an internal feeling of private accomplishment.”

It is that this reason of n-fulfilment that courses the moves of entrepreneur. People with excessive n-fulfilment behave in an entrepreneurial way. So it's far higher to expand n-fulfilment amongst people to make sure excessive scale of monetary development. In exercise, n-fulfilment reason is inculcated via toddler rearing practices, which pressure requirements of excellence, cloth warmth, self-reliance, education and coffee father dominance.

McClelland recognized traits of entrepreneurship. First doing matters in a brand new and higher way. Secondly, choice making beneath uncertainty.

This reason is known as because the tendency to attempt for achievement in conditions regarding an assessment of one’s overall performance with regards to a few preferred of excellence. People having excessive want for fulfilment are much more likely to be successful as marketers.

According to McClelland, people with excessive want fulfilment will now no longer be inspired through financial incentives however that financial rewards will represent a image of fulfilment for them. Similarly, they're additionally now no longer fascinated a great deal for social popularity or status however their last purpose is non-public accomplishment. That is why McClelland shows that so that you can improve the extent of fulfilment motivation, dad and mom have to set excessive requirements for his or her children

Critical Evaluation:

Research research at the mental roots of entrepreneurship monitor that excessive fulfillment orientation guarantees the achievement of marketers. But the empirical gear of idea utilized by McClelland are located to be pretty suspect and one wonders how some of the folks who are judged to have excessive n-fulfilment should achieve using it in exercise withinside the modern growing international locations except reinforced through different reinforcing circumstances.

2) E. E. HAGEN’S THEORY (EMPHASIS ON WITHDRAWAL OF STATUS RESPECT): E. Hagen tried to formulate a principle of social extrade. The principle of social extrade explains that once individuals of a few social agencies experience that their values and standing aren't reputable through the society, they flip to innovation to get the honour of the society. According to Hagen, entrepreneurship is a feature of repute withdrawal. This principle affords that a category which misplaced its preceding status or a minority organization has a tendency to expose competitive entrepreneurial drive.

Hagen postulates 4 sorts of activities which could produce repute withdrawal:

(i) Displacement of a conventional elite organization from its preceding repute through some other conventional organization through bodily force.

(ii) Denigration of values, symbols via a few extrade withinside the mindset of advanced organization.

(iii) Inconsistency of static image with a converting distribution of monetary strength and.

(iv) Non-attractiveness of predicted repute on migration to a brand new society.

Hagen in addition opined that innovative innovation or extrade is the fundamental characteristic of monetary boom. He describes an entrepreneur as a innovative trouble shooter inquisitive about matters withinside the sensible and technological realm. Such form of person feels a experience of extended satisfaction while dealing with a trouble and tolerates ailment without discomfort.

In conventional societies, positions of authority are granted on the idea of repute, in place of person ability. That is why, Hagen visualised an progressive personality.

There are 4 responses which determine the personality-

(i) Retreatist – One who combines to paintings withinside the society however stays detached to his paintings and position.

Ii) Ritualist – One who adopts a form of shielding behaviour and acts withinside the approaches everyday and authorized in his society however and not using a hopes of enhancing his position.

(iii) Reformist- One who foments a revolt and tries to set up a brand new society?

(iv) Innovator- A innovative person who's in all likelihood to be an entrepreneur.

Innovation calls for creativity and such innovative people purpose monetary boom. In exercise innovative personalities emerge while the individuals of a few social agencies revel in the withdrawal of repute respect. Whenever there may be any withdrawal of repute respect, it might supply upward push to innovation an  innovative person who's in all likelihood to be an entrepreneur.

Critical Evaluation:

The principle acts to differentiate among entrepreneurship and intra-preneurship. There are various factors withinside the corporation which encourage the executives and specialists to perform a little progressive behaviour main to new merchandise and services. Actually, they're now no longer ruled through repute withdrawal.

The principle most effective shows that the people, who had loved social status during their histories, fall right into a retreats segment and with an urge to regain that misplaced repute end up entrepreneurial personality. The principle additionally presupposes a long time angle for entrepreneurial boom approximately 3 to 5 generations for the emergence of entrepreneurship.

But surely it does now no longer happen. In India, first era marketers are pretty a hit of their entrepreneurial behaviour. J.P. Gour of Jai Prakash Industries and Sunil Mittal of Bharti organization etc. may be noted on this context.

Q17) State the Sociological Theory of an entrepreneurship.   8

A17) The supporters of sociological theory say that the entrepreneurial activities are affected from social status hierarchy and values. Individuals’ position, tradition, cultural values, mobility and social status etc. are thoroughly effected to entrepreneurship development. The sociological theories depend on this concept.

Two important social and cultural theories are:

1) MAX WEBER THEORY OF SOCIAL CHANGE

According to Weber, “A person who lives in which community, religion and follows the conventions and religious values.”

All these things completely affect by their professional life, energy, livelihood and enthusiasm.

In other words, Max Weber is connected with the emergence and success of entrepreneurs with social ethical values systems. He also associated the

Entrepreneurship development with protestants and other non-convents.

According to him, non-convents groups are those groups who give pressure on capitalism, money rationality and thinking. They were almost successful in creating entrepreneurs, wealth collection, technology, capital formation and economic development.

“The modern economic development is explained to a greater extent, by the social factors as discussed in the foregoing lines. This becomes more prominently evident when we contrast the Indian culture with that of the western of particularly of the American culture. Even if we contrast the different sub cultures within the same larger society, the story of economic development is explained.”

Weber says that the religious beliefs and moral values are basically affected to people’s attitude, view trust and thinking pattern and people’s selected occupational pursuits as per earlier things.

Highlighted Points:

i. Entrepreneurship development is based on Protestants.

Ii. Selection of occupation pursuits is effected from religious and social values.

Iii. Religious and moral values are affected to people’s attitude, thinking power.

2)B. F. HOSELITZ’S CULTURE THEORY OF ENTREPRENEURSHIP

According to Hoselitz, “The development of industrial entrepreneur is based on only which type of society is there.”

a. Social process is not static.

b. Sufficient employment pattern is available.

c. Encourage to entrepreneurs for personality development.

Hoeslitz says, “Culturally marginal groups plays an important role in encouraging the economic development of any nation.”

He think that the marginal persons are more able in making creative adjustment in changed situations and during the adjustment process they make efforts in bringing real innovations in social behaviour. In addition to this, he emphasised on development of personal qualities for entrepreneurial develop¬ment.

According to Hoselitz, “Managerial skill and leadership qualities are important factors for entrepreneurship. Besides this, education, training, social values, behaviour and social behaviour/institutions play a crucial role in personality development.”

Highlighted Points:

i. Entrepreneurship development is based on social progress and employment patterns.

Ii. Personality development is an essential quality for entrepreneurship development.

Iii. Culturally marginal groups are important characters for development process.

Iv. Marginal groups are having the ability of innovation.

v. Managerial ability and leadership quality is must for entrepreneurship development.

Q18) Explain the role of an entrepreneurship in socio- economic environment.                                                                                                                                            8

A18) Role of entrepreneurship in socio-economic environment:       

The entrepreneurial pastime relies upon a complicated and ranging mixture of socio-monetary, political, mental and different elements. Entrepreneurship isn't always an inborn quality; it's far a made of surroundings. To be successful, an entrepreneur has to stay dynamic and accountable to the complete surroundings. Environment is a mixture of numerous dynamic, complicated and uncontrollable outside affects inside which an entrepreneur has to function. In case of favorable enterprise surroundings, entrepreneurship evolved hastily. Environment creates demanding situations, pressures, risks, opportunities, profits and threats for the entrepreneur. Entrepreneur desires a rational imaginative and prescient on his element to take benefits of those converting conditions.

The monetary surroundings sporting activities possibly the maximum direct and on the spot have an impact on of enterprise surroundings. They consist of capital, uncooked substances and markets etc. Further, sort of financial system whether or not evolved, growing, or underdeveloped, prices of financial savings and investment, increase fee of G.N.P in line with capita income, extent of exports and imports stability of bills position, charge degree, prices of inflation, deflation and mirrored image approach of shipping and verbal exchange additionally have an effect on the financial system of the united states.

The crucial factors of monetary surroundings and their affects can be mentioned as follows:

(1) Economic System: Economic System of a rustic can be capitalist, socialist, democratic or mixed. Economic machine determines the character and scope of entrepreneurship. It additionally influences mobilization of assets. In the capitalist machine, entrepreneur-deliver evolved hastily even as socialist financial system creates issue withinside the manner of entrepreneurship. Entrepreneurs can paintings independently withinside the capitalist financial system which isn't always so withinside the socialist financial system.

(2) Economic Conditions: Economic circumstance of a rustic can be of evolved, growing and underdeveloped. The nature of Entrepreneurship is decided through the extent of improvement of financial system. ‘In evolved financial system, marketers ought to adopt progressive sports for survival and increase however withinside the growing and underdeveloped countries, marketers do now no longer take a lot hobby withinside the progressive sports. In those countries, marketers ought to face many issues and demanding situations for his or her improvement,

(3) Structure of Economy: The elements like country wide income, fee of capital formation, improvement of capital market, fee of investment, saving and overseas alternate etc., is the shape of the financial system. The favorable increase of those elements might also additionally sell entrepreneurship.

(4) Trade Cycles: Cycle of inflation and deflation, create many demanding situations and issues withinside the improvement and enlargement of entrepreneurship. Changes in foremost monetary variables like cash income, fee of living, hobby prices, financial savings, credit score availability etc. have an instantaneous effect at the running an enterprise.

(5) Economic Policies and Laws: The authority enacts numerous legal guidelines to modify the enterprise surroundings. Industrial coverage, Licensing coverage, economic coverage, import-export coverage are taken into consideration monetary rules which produce a extraordinary impact at the entrepreneurship sports. Favorable monetary rules and legal guidelines sell the improvement of entrepreneurship.

(6) Financial Resources: Adequate Funds are required for bringing collectively different elements of production. It additionally encourages improvements and creation of latest things. Lack of required capital for commercial sports might also additionally hinder and discourage marketers.

Social outside environmental elements in a rustic additionally workout a huge effect at the emergence of entrepreneurship in a rustic. Social elements in a rustic decide the volume and degree of industrialization, as they have an impact on, the call for of a services or products at a given factor of time. Social elements are sure to have deep have an impact on consumer’s taste, preference, existence and living.

They consist of -

(i) Customs and Religious Traditions: Customs, non secular religion and beliefs additionally have an effect on entrepreneurial increase. In a growing united states like India, there are such non secular traditions which aren't conductive to entrepreneurship. People are fatalists and that they do now no longer want to paintings difficult or do something new. They stay glad with old.

(ii) Family Background: The surroundings of own circle of relatives influences entrepreneurship. Joint own circle of relatives can offer own circle of relatives assets to make investments and make bigger own circle of relatives enterprise. If the daddy is a professional, entrepreneur or businessman, the son is much more likely to go into the identical line due to sure inherent benefits. Mobility of the entrepreneur is motivated through the occupational and social reputation of the own circle of relatives.

(iii) Desire for development and safety of reputation: The choice for development and safety of reputation forces humans to act responsibly. People paintings difficult to keep and enhance their reputation and it contribute to entrepreneurial increase.

(iv) Social Mobility and Social Marginality: There are a few people of the view factor that excessive diploma of mobility is conductive for the emergence of entrepreneurship. Social marginality additionally undoubtedly affects entrepreneurship.

(v) Values: Values are enduring ideals that humans keep approximately morals, equality, freedom, paintings ethic, and so on. When values change, the effect is felt withinside the methods wherein marketers, authorities and society operate.

(vi) Attitude closer to adjustments and Risk-taking: People’s mind-set closer to adjustments, ability and emotions of risk-taking etc. additionally influences the entrepreneurial surroundings. Positive mind-set to undertake adjustments and risk-taken, have an impact on the improvement of entrepreneurship.

(vii) Work Ethics: It is determination or preoccupation with paintings. It is a experience of responsibility and paintings which is wanted for entrepreneurial development. The Japanese have performed superb development due to their dedication of paintings.

(viii) Educational and Technical Know How: Education, entrepreneurship and improvement are very carefully related, as a substitute say they're interrelated. Education is the excellent approach of growing man’s resourcefulness, which embody distinct dimensions of entrepreneurship. It is similarly anticipated that the excessive degree of schooling might also additionally permit the marketers to work out their entrepreneurial expertise extra correctly and efficiently.

Q19) Discuss the environmental factors affecting entrepreneur.  8

A19) People in society live in the umbrella of a particular environment. Therefore, entrepreneurship emerges in the context of the environment of all societies in the world.

Certain factors of the external environment that influence the growth and development of entrepreneurs are still issues that are being discussed among experts.

Several authors have addressed this topic by identifying a set of factors that make up the entrepreneurial environment.

1. Venture capital availability

When starting a new venture, some form of venture funding is usually essential.

In a well-established entrepreneurial environment, one source of venture capital is already successful entrepreneurs in the area.

They will often sympathize with other new ventures as a means of management and finance.

Many venture capital firms have developed their capital base as entrepreneurs.

According to Cooper (1970), an important initial source of capital for many companies is the shares held by the founders of the companies they previously worked for.

In the US electronics industry, executive-to-enterprise stock options can make it economically feasible to leave a company and become an entrepreneur.

In Austin, the atypical situation meant that venture capital was not a significant environmental factor.

Most companies were not capital intensive and were therefore founded with internal funding. The initial capital required was only tens of thousands of dollars

As Hoffman (1972) observes, if a local bank or other local source of funding does not provide a loan due to inexperience in lending to a technology company, the entrepreneur will go elsewhere.

This lack of experience arises from the "economic history" of the region and has a significant impact on lending policies and practices.

Cooper (1970) points out those most new companies raised locally for the following reasons:

The founder was unaware of potential investors in other areas.

Local investors tended to understand and empathize with technology-oriented businesses.

Potential local investors can easily see the background of an aspiring entrepreneur. In many cases, they knew the individual personally.

Investors can stay in close contact with the new company.

Presentations and suggestions to local investors didn't have to be elaborate.

2. Existence of experienced entrepreneurs and incubator organizations

The idea that entrepreneurial activity promotes more activity is the paper of some authors.

Cooper (1970) argues that: "Technical entrepreneurship in a particular area seems to be closely tied to the incubator organization (established company) that is already there.

Unless such an incubator organization exists in the region, it is unlikely that a new technology-based company will be born there. "

When the first tech companies succeed, they begin to change the environment and attract other entrepreneurs.

Naumes (1978) states: Encourage potential entrepreneurs who are already in the area. "

In particular, successful entrepreneurs can leverage the experience and knowledge gained from previous successes and failures. If they study their predecessors, they can understand the formula of success.

Spin-off companies can take advantage of their existing talent pool. If the risks associated with a new company are managed and easily assessed, their talents are more likely to leave a safe position in the area.

The source of debate is whether SMEs or large companies are better incubators for new start-ups.

On the other hand, it can be argued that employment in small businesses exposes potential entrepreneurs to any problems or decisions that entrepreneurs may encounter at startups.

On the other hand, it can be argued that the experience of working for some large companies seems to inspire employees to become entrepreneurial.

Incubator organizations are important to potential entrepreneurs, gain management insights to supplement his technical expertise, and become familiar with customers and suppliers while paying someone else's salary.

The network he develops is tied to the environment of the incubator organization, so when he starts a venture, it tends to be in the same area.

3. Technically Skilled Labor Force

A technically skilled labor force is another important environmental factor conducive to entrepreneurial activity.

In the Twin Cities of USA, the hearing aid industry provided a technical base; many technicians and engineers were employed in the area (Draheim 1972).

Labor skilled in a particular area of the new venture facilitates the formation of new companies.

A Stanford Research Institute (SRI) (1962) study of small businesses in the electronics industry concluded that the “availability of the type of labor required in the industry is one of the most important considerations in determining the location of electronics companies”.

Since a new firm is viewed as a high-risk place of employment, skilled labor is not willing to relocate. The new firm must locate where the labor pool already exists.

4. Accessibility of Suppliers

Although several authors (Cooper 1970, Shapero 1972, Schollhammer and Kunloff 1979) have noted the importance of supplier access to entrepreneurship, no published research has been found to support this proposition.

In some situations, good access to suppliers has likely had a positive impact on the decision to start a company.

One suspects, however, that this is the exception rather than the norm, and that accessibility’ to suppliers is seldom a deciding factor.

The consideration is likely to be highly specific to particular industries, depending upon the bulkiness of raw materials and the degree of personal service desired from suppliers.

Again, little published research is available.

In general, this factor appears to be more significant when the entrepreneurial activity has local rather than national or international scope, or when customers are geographically concentrated. It should also depend on the amount and frequency of personal interaction required by customers.

5. Accessibility of Customers or New Markets

This factor is particularly important when the entrepreneurial activity has local rather than national or international in scope or when customers are geographically concentrated.

It should also depend on the amount and frequency of personal interaction required by customers.

The new entrepreneur found it difficult to enter into a new market or inaccessible market due to its incapacity in respect of lower means and efficiency.

Socio-political as well as cultural barriers also deter entry into a new market. A market structure may be a strong barrier for entrepreneurs to have access to the market.

Therefore, environmental support for having entered into the new market or customers is primacy for the entrepreneurship in any country.

6. Favorable Government Policies

Taxation rates, licensing policies, and other government activities can have a positive or negative’ impact on entrepreneurship.

Several researchers address the governmental influence factor to observe that state and local legislation on taxation and licensing can make one location more attractive than another.

Cooper (1973) maintains that this legislation affects the ability to collect “seed” capital with which to start new ventures. Mahar and Coddington (1965) observe that taxes on business must bear some relationship to the services provided, but assert that if lax costs were the only consideration.

Certain parts of the USA, like Boston. Palo Alto and Los Angeles would never have developed as centers of entrepreneurial activity since California and Massachusetts have high taxes.

Vesper and Albaum (1979) point to the area’s unfavorable business tax structures as deterrents to new start-ups.

Galvin (1978) notes that taxation laws often defer rather than forwarding the decision to start a new business.

7. Proximity of Universities

It is a popular Relief that universities are the source of technical spin-off companies, but this is the exception, not the’ rule.

If it does occur, it is due to the positive encouragement by the administration or its passive acceptance of entrepreneurial activity on the part of the faculty, and the presence of contract research, contract research centers, or laboratories (Shapeno 1972).

Cooper maintains that universities have undoubtedly played a role in attracting able young men and women to particular regions, and sometimes in giving the firms located there competitive advantages in recruiting and retaining these people.

They also provide sources of consulting assistance and opportunities for continuing education for professional employees.

However, the degree to which universities play a central or essential role in technical entrepreneurship appears to vary widely (1973).

Mapes observes that “many professors and laboratory researchers at big universities throughout the country are going into business for themselves. Mostly they take theories that they develop while doing uni­versity research work and put them to practical use in highly specialized new products”.

There is also some evidence that the university spin-off is more likely to succeed than the average new business venture.

One advantage is their connection with university research labs and the government agencies that finance them.

Mapes quotes F. Turman of. Stanford University, the USA as saying “more universities now believe a spin-off is in their enlightened self-interest.

It builds the community as a more attractive place for faculty and students, and it keeps scientists in touch with the engineering problems that exist in the practical world”(1907).

Allison (1965) concedes that schools with strong engineering and science capabilities and policies that encourage entrepreneurship to stimulate new enterprises. The presence of academic institutions, however, may be merely a facilitating factor and not a necessary one.

For example, Dallas did not have a “natural attractiveness” in terms of climate or academic institutions but was able to develop an industrial community by creating a connection between its research centers and the rest of the community.

Hennings’ (1979) empirical investigation of organizational births found the presence of a university to be insignificant.

8. Availability of Land or Facilities

Mahar and Coddington (1965) emphasize the importance of low-cost facilities for newly-formed companies since they have little capital with which to operate.

They recommend the construction of shell-type buildings with easily movable partitions if incubator space is not available in older buildings.

They maintain that high-quality industrial space is also essential since firms usually do not want to worry about the ‘availability of water, power, sewage, roads, or zoning”.

Recent researches in various countries of the world suggest the negative impact that land availability and related factors can have.

Quirt (1978) points out that California-based high-technology companies are not building their new plants in California because of rising labor costs, environmental regulations, high’ business taxes, and generous unemployment compensation rates.

The uncertainty over energy supplies, the absence of industrial revenue bonds, and soaring housing costs also influence decisions to locate plants elsewhere.

9. Accessibility of Transportation

Accessibility to transportation and transportation costs are cited as important environmental factors by several authors. It affects the establishment and progress of the business and industry.

Mahar and Coddington (1965) emphasize the importance of airline transportation while Schary (1979) says that industry type, competition, general and specific location, firm size, product, markets, energy, and regulation affect the importance of transportation to businesses in the certain areas of the world.

It exhibits that transportation along with other variables is a significant contributive factor that influences business decisions.

But it is highly affected by the nature of industry or business.

Cooper (1973) observes that transportation costs may not be very important with many high-technology products but the ability to work closely with customers is sometimes essential.

10. Receptive Population

Cooper (1970) notes that public reception of new issues of stock can “substantially affect the availability of venture capital, an important factor for success. Societal attitudes toward business and entrepreneurship.

Undoubtedly influence individual decisions. Manhar and Cod dington (1965) conclude that it is difficult for a firm lo to operate successfully in an unsupportive environment.

They define an encouraging environment as “an attitude which recognizes that small firms are making important contributions to the economic development of the area (1965).

A supportive population would promote the law, labor and materials supply, financing, distribution and selling of goods or services and promotion of the firm and the product.

11. Availability of Supporting Service

Support services are auxiliary activities that are vital for the operation and survival of new ventures.

Thus, this factor usually affects a firm after the initial formation stage. These services are provided by accountants, tax experts, lawyers, and consultants specializing in new ventures and small businesses.

Naumes (1978) mentions that these advisors understand the typical problems present in starting a new enterprise.

He further opines that they help entrepreneurs overcome many of the initial stumbling blocks to successful new venture initiation.

The existence of supporting services further assures that new ventures will be more successful in the future.

12. Attractive Living Conditions

The cultural, climatologically and recreational amenities are the greatest important factors for the growth and development of entrepreneurial ventures.

A community must become an exciting and attractive place if it is to attract and retain the technical professional workforce that is the chief productive factor in high technology industries.

The highly-trained body of workers is relatively young, highly mobile, in great demand and has a choice of places to work and live, it will not stay in a community that does not have within it a selection of amenities that are available elsewhere (Shapero, 1972).

Mahar and Coddington (1965) mention that primary and secondary schools are very important because qualified people want good educational facilities for their children.

Q20) Write the impact of the environment on the entrepreneurship development.                                                                                                                                            8

A20) The impact of the environment on the entrepreneurship development and growth is to be empirically measured to understand the essentiality of the environmental support for the emergence of entrepreneurship in any society.

Bruno and Tyebjee (1982) suggested a model explain the measurable impact of the environment on the entrepreneurial activity.

They opined that entrepreneurial activity can be measured in terms of three types of outcome: start-up outcome, performance outcome, and residual outcome.

The impact of the environment on entrepreneurship activities and its outcomes are presented in the model.

Start-up outcomes include the number of start-ups, equity and legal structure of start-ups/new ventures, and scale of start-ups. They record the impact of the environment on emerging entrepreneurs.

Available resources and the cost of doing business influence the prospective entrepreneurs to take the venture imitative. The scale, the number and the size of the ventures are also dependent on environmental variables.

Performance outcomes record how entrepreneurs fare in various environments.

Profitability measures such as ROI, ROA, return on sales, growth and market share, ability lo am act new customers, the establishment of a market position arc the indicators of the performance outcomes.

Failure of the firm, of course, is a negative performance outcome.

Residual outcomes occur in the latter stages of the firm’s life cycle. Changes in the capital structure, particularly the exit of venture funds from the equity base, are residual outcomes.

The issue of shares “going public” on the market is another. Merger and acquisition activity is third.

Finally, new start-ups by the firm’s principal and the development of new products, markets, or technologies are evidence of residual entrepreneurial activity.

Environmental influences have been classified into two groups and linked to the three outcome levels. The first group includes the resources necessary to start a firm.

The second group includes factors that influence the cost of doing business.

Resource availability will affect start-up outcomes and residual outcomes.

The projected cost of doing business will influence start-up outcomes, particularly the decision to start a venture, and the realized cost of doing business will influence performance outcomes.