Unit 3

Entrepreneurial behaviour

Q1) What is innovation? What are the features of it?    5

A1) Innovation is the technique of taking an innovative concept and turning it right into a beneficial product, provider or paintings approach. It implies doing new things, It consists of creation of latest merchandise, introduction of latest markets, software of latest approach of production, discovery of latest and higher re assets of uncooked substances and growing a brand new and higher shape of commercial corporation. Innovation can be used at the software of know-how produced through research. Innovation isn't the same as invention. Invention implies discovery of latest ideas, new merchandise and new strategies while innovation refers back to the software of innovations to make new mixtures and thereby produce pride and profit. According to Paul E. Plsek, “Innovation is the first, practical, concrete implementation of a concept performed in a manner that brings broad-based, extrinsic popularity to a man or woman or corporation.” In the phrases of Peter F. Drucker, “Innovation is the method through which the entrepreneur both creates new wealth-generating assets and endows current assets with improved capacity for growing wealth. ‘

CHARACTERISTICS OF INNOVATION

The traits of innovation are-

(i) Innovation implies action, now no longer simply conceiving new ideas.

(ii) It is a technique of changing, experimenting, remodelling and revolutionizing.

(iii) It is a key issue of entrepreneurial activity,

(iv) It is a “innovative destruction”.

(v) It ends in technological modifications and employment growth*

(vi) It is a pervasive attitude, feeling, an emotional state, an ongoing dedication to newness,

Q2) Write the relationship between innovation and entrepreneur.  5

A2) Relationship between innovation and entrepreneur

Increasingly, creativity and innovation are visible as being the important thing to survival in an ever-greater aggressive and international economy. In reality extrade and innovation have become a ‘manner of life’ for maximum marketers. An entrepreneur continually takes a non-public duty for encouraging any form of progressive concept, product, or technique withinside the enterprise. Peter Drucker has rightly determined that “Innovation is the particular device of marketers, the method through which they make the most modifications as an possibility for a special enterprise or a special provider.

It is able to being provided as a discipline, able to being discovered and practiced. Entrepreneurs want to look purposefully for the reassets of innovation, the modifications and their signs that imply possibilities for a success innovation. Kid they want to understand and follow the Principles of a success innovation.” Drucker is of the opinion that an entrepreneur is person who continually searches for modifications responds to it and exploits it as a possibility. Innovation is handled as a device of entrepreneurship. R.M. Kanter says, “Winning in enterprise nowadays needs innovation” and such is the stark truth going through nowadays s marketers.

In the dynamic, chaotic global of world competition, marketers should create new services and products and undertake new technology, ifthey are to compete successfully, The corporation that isn't always innovative and progressive might not survive. Thus, marketers are seeking out approaches to inspire and foster in creativity and innovation on each the man or woman and the assignment level. Thus it is able to be concluded that innovation and marketers are imperative to every other. Both are vain and incomplete in absence of 1 another.

Q3) What is entrepreneurial behaviour? Write the characteristics of entrepreneurial behaviour.                                                                                                                8

A3) Behaviour is a manifestation of what a person thinks feels and acts. An entrepreneur is a creative person. Need for self actualization as manifested in the need for achievement forces him to create something new, a new product, a new way of doing things, a new source of raw material, a new market etc. Behaviour is always caused and is never spontaneous. Behaviour is basically goal-oriented. Entrepreneurial Behaviour includes the goal-oriented acts or decisions of an entrepreneur. The entrepreneurial behaviour means the manners or way in which the entrepreneur deals with its total environment: internal and external. It is the way or approach to look at the physical and human resources and the society. The entrepreneurial behaviour is a view of or orientation towards risk-bearing, innovation, achievement, goal-setting, ethics, social responsibility, motivation, challenges and values of human society, and other psychological elements.

Characteristics of entrepreneurial behaviour

The entrepreneurial behaviour is different from the capitalist’s behaviour. The capitalists assume a traditional or conservative approach. He believes in “safe-playing” while investing his money in the enterprises. He is concerned mainly with his share of interest on his investment. On the other hand, entrepreneur loves to take risk and tends to establish a new enterprise and adopts a new technology, or a new product, or tries to find cut a new raw material. He is always looking out for a new thing or a new method. He is a high achiever. He is guided mainly by achievement motivation.  Main characteristics of entrepreneurial behaviour may be summarized as follows:

(1) Initiative Behaviour: It is the entrepreneur who takes or imitates the first move towards setting up of an enterprise. Entrepreneur basically is an innovator who carries out new combinations to initiate and accelerate the process of economic development.

(2) Challenge accepting behaviour: Entrepreneurs take problem as a challenge and put in their best for finding out the most appropriate solution for the same. They will first of all understand the problem and then evolve appropriate strategy for overcoming the problem.

(3) Assertive Behaviour: An assertive person knows what to say, when to say, how to say and whom to say. He believes in his abilities and ensures that others fall in line with his thinking, aimed at promoting the interests of the organisation.

(4) Persuasive Behaviour: A successful entrepreneur through his sound arguments and logical reasoning is in a position to convince others to do the works the way he wants them to do. It is not physical but intellectual force he will use for convincing others.

(5) Effective Monitoring: Entrepreneurs ensure that everything is carried out in their organizations as per their wishes. They ensure regular monitoring of the working so that the goals of the organisation are achieved in best possible manner.

(6) Looking for Opportunity: An entrepreneur is always on the lookout or searching for opportunity and is ready to exploit it in the best interests of the organisation.

(7) Persistence: An entrepreneur is never disheartened by failures. He believes in the Japanese proverb ‘Falls even times, stand up eight’. He follows Try-Try Again for overcoming the obstacles that come in the way of achieving goals.

(8) Information Seeker: A successful entrepreneur always keep his eyes and ear open and is receptive to new ideas which can help him in realizing his goals.

(9) Quality Consciousness: Successful entrepreneurs do not believe in moderate or average performance. They set high quality standards for themselves and then put in their best for achieving these standards. They believe in excellence, which is reflected in everything they do.

(10) Recognizing the importance of Business Relationships: Entrepreneur acts to build report or friendly relationships with customers. He sees interpersonal relationships as a fundamental business resource. He places long-term goodwill over short-term gain.

Q4) Discuss the psychological factors that affect the entrepreneurial behaviour.                                                                                                                                                          8

A4) Psychological factors that affect the entrepreneurial behaviour.

The behaviour of an entrepreneur is dependent largely on his psychology and motives which are the main determinants of behaviour. These motives are based on needs for survival and growth. The movements of an entrepreneur are affected by the psychological background. Many theorists Akouri, McClelland, Javillionar & Winter have given views related to psychological factors as follows:

(1) Achievement Motive: Achievement motive is most important for an entrepreneur. It is this motive which motivates people to do something different and extraordinary so that one may feel that he has achieved or created something which others are not able to do. Lt motivates an entrepreneur to take an initiative for innovation. It also makes one personally responsible for his actions and performances. It helps to develop self-reliance and develops the spirit of risk-taking which is very -essential part of entrepreneurial behaviour; one will not establish a unit unless he is prepared to take risk.

(2) Desire to Influence Others: Strong desire of the need for power, helps a person to become a successful institution builder, Thus, it is necessary that an entrepreneur must have the ability of self-management with a strong will power. Thus, they possess a strong desire towards the need of influencing others.

(3) Desire for Independence: Entrepreneur possesses strong desire for independence and it is only due to this desire that they are motivated to start a new business. According to psychologists, the feeling of independence is acquired by them through the family atmosphere. Due to this they do not want to work under anyone rather they like to work independently.

(4) Innovation:  This is an important psychological factor Of entrepreneurs. Generally, an entrepreneur does those acts which are not taken up by other persons. They transform the creative ideas into useful applications. Accordmg to Schumpeter, a person is an entrepreneur only when he is an innovator, engaging himself in an innovative behaviour. Thus, innovative behaviour is an entrepreneurial behaviour,

(5) Hope for Success: Entrepreneurs are always hopeful for future success. They work for being successful which enlightens them with the confidence, positive attitude and high energy level. Hope for success makes their behaviour strong and stable.

(6) Calculated Risk Taking: Entrepreneur is a person who is always in a position to accept challenging job, He works on those projects only, which are risky but have a probability of success through their efforts. He does not rely on those ventures, which totally depends on chance. In other words, the entrepreneur believes in calculated risk-taking.

(7) Immediate feedback: Entrepreneur wants immediate feedback of the progress of his entrepreneurial targets so that he can improve the way of achieving the targets and his behaviour changes according to the situations.

(8) Self-Efficacy: An entrepreneur has a drive for self-efficacy. They want to become the problem solver, instead of problem avoiders. They do not want to copy others but they want others to copy them. Further they feel proud of their achievements and live in the present.

(9) Self-Expression: The desire for self-expression appears to be a common thread and may help explain why so many men and women prefer to work for themselves than for someone else.

(10) Self Confidence: Entrepreneurs believe in themselves. They have confidence that they can outdo anyone in their field. They tend not to accept the status quo, believing instead that they can change the facts. Often, they insist the odds are better than the facts would justify. They have winning habits. On the basis of self-confidence, they become overachievers.

Q5) Write the psycho theory of Joseph A. Schumpeter Theory.   5

A5) According to Joseph A. Schumpeter, the effective function of an entre­preneur is to start innovation in venture. This theory is also called innovation theory or dynamic theory. According to this theory, the entrepreneurs emerges because of individuals having certain psychological elements i.e., will power, self-intuitions, tolerance capacity. The entrepreneur is a person who has creative nature.

He regarded the entrepreneurship as a catalyst who checks the static conditions of the economy, there by initiates and thrusts a process of economic development i.e., innovation. He carries economy to new height of develop­ment.

This innovation includes:

1. Introduction of new goods,

2. Introduction of new methods of production,

3. Opening of a new market,

4. Discovering a new source of raw materials,

5. Carrying out a new source of an organisation.

Although, this theory also included other characteristics i.e., risk taking, superintendence and coordination, he emphasised that these attributes without the ability to innovate will not make an individual as an entrepreneur.

According to him, the following characteristics that appear in the behaviour of an entrepreneur are as follows:

1. An institutional capacity to see the things in a way which afterwards proves to be true.

2. Energy of will and mind to overcome static habits, desires and emotions.

3. The capacity to withstand social opposition.

According to him, an entrepreneur is an innovator who desires to earn profit through innovation. An entrepreneur is neither technical man nor a capitalist but simply an innovator. He introduces something new in the economy. He is motivated by establishing his psychological power. An entre­preneurship is formed for establishing his industrial empire. He has burning desires for creative activities.

He makes a distinction between innovator and inventor. An inventor discovers new methods and new material whereas an innovator is one who utilises or applies inventions and discovers to produce better quality goods that give greater satisfaction to customer and high profit to entrepreneurs. In this way, an entrepreneur is an innovator.

Schumpeter made it clear that an entrepreneur doesn’t have a single person but equal to an organisation. “What matter is the behaviour not the actor?” He emphasised more on technological innovations rather than on organizational innovations. “Entrepreneurs are certainly not economic men in the theoretical sense.”

Critical Evaluation of J. A. Schumpeter Theory:

In this theory, the main theme is the innovation. He makes a distinction between an innovator and an inventor. According to him, an inventor discovers new methods and new materials. But an innovator is one who applies inventions and discovers in order to make new combination.

With the help of new combination, he produces a newer and better goods which yields satisfaction as well as profits. Schumpeter’s concept of entrepreneurship is quite broad based. It includes not only the independent businessmen but also executives and managers who actually undertake innovative functions.

Q6) Explain David C. McClelland theory.     8

A6) David C. McClelland has given a particular concept of entrepreneurship. According to him, needs for high achievement is an essential feature of entrepre­neurial behaviour. According to McClelland, “Burning desire of need for achievement attracts an entrepreneur for activities.”

The primary basis of the development of an entrepreneurship is achieve­ment orientation. The capacity of becoming an entrepreneur develops due to desire of reaching heights of excellence and specific performance.

For achieving heights of excellence and specific performances, an entre­preneur needs rational thinking, new combinations, deep thinking, power etc. The achievement motive is uncalculated through child rearing practices, which stress standards of excellences, material warmth, self-reliance training a low, further dominance. Individuals with high achievement motive tend to take keen interest in situation of high risk desire for responsibility and a desire for a Concrete measure of task performance.

His views can be expressed by means of the following points:

a. Ideological Values,

b. Family Socialisation,

c. Need for Achievement,

d. Entrepreneurial Behaviour.

The following elements which are focused by McClelland are as follows:

a. Achievement Orientation,

b. Height of Excellence,

c. Imagination Power,

d. New Combination.

According to McClelland, needs for high achievement drives individual towards entrepreneurial activities. High achievement need can be developed through child rearing and schooling practices. People with high achievement need are not motivated by monetary rewards only, such people regard profit as a measure of success whereas people with low achievement needs are moti­vated by monetary rewards.

People with a high need for achievement derive satisfaction from achieving goals. High achievers want immediate feedback on their power performances. He has been able to establish the desirability of high need for achievement for entrepreneurial success in the economic development of country.

A drive to influence others and situations. It refers to one’s desire to influence and dominate other through use of authority. Goal’s achievement is less important than the means by which goals are achieved. McClelland and his associates have found that people with high power needs have a great concern for exercising influence and control.

McClelland theory is not free from criticism:

1. There is strong evidence to indicate from politics and religion that adult behaviour can be molded or drastically altered in a relatively short time.

2. The contention that needs are permanently acquired.

Inspite of the above discussion, this theory highlights the importance of matching the individual and the job. People with high achievement needs success on work i.e., challenging, satisfying, stimulating and complexing. People with low achievement needs stability security and predictability.

Critical Evaluation of David McClelland’s Theory:

The psychological roots of entrepreneurship reveal that high achievement orientation ensures the success of entrepreneurs. But the empirical tools of concept used by McClelland are found to be highly suspect.

Empirical investigation also needs the following:

(1) It is necessary to create a climate to enable the children to grow and become individuals with high achievement.

(2) It is possible to improve the performance of existing entrepreneur through imparting proper training and education.

Q7) Discuss Everett E. Hagen theory.      5

A7) Everett E. Hagen has also given a particular concept about an entre­preneurship. He has developed the theory of withdrawal of status. Hagen says, “Entrepreneurship is a function of status withdrawal.”

“Creativeness of disadvantaged minority group is the main source of entrepreneurship.” —Everett E. Hagen

Hagen considers “withdrawal of status respect as the trigger mechanism of change in personality formation” as entrepreneurship status withdrawal is the act of seeing on the part of some social group. The origin of this concept of psychological theory of entrepreneurship is based on Samurai community of Japan.

According to Hagen’s concept status withdrawal as fall of status of social group is the primary cause of personality development. Hagen identifies the following four types of events that can produce status withdrawal and prestige fall.

(1) Displacement of valued symbols.

(2) Denigrations of status symbols with a changing distribution of economic power.

(3) Inconsistency of status symbols with a changing distribution of economic power.

(4) No acceptance of expected status on migration to a new society.

Hagen opined that creative innovation or change is the basic feature of economic growth. He describes an entrepreneur as a creative problem shooter interested in things in the practical and technological realm. Such type of individual feels a sense of increased pleasure when facing a problem and tolerates disorder without discomfort. In traditional societies, position of authority are granted on the basis of status, rather than individual ability. That is why he visualized an innovative personality.

There are 4 responses:

(1) One who combines to work in the society but remains indifferent to work and position is called Retreats.

(2) One who adopts a kind of defensive behaviour and acts in the ways accepted and approved in his society but with hopes on of improving his position is called Ritualist.

(3) One who forms a rebellion and attempts to establish a new society is called Reformist.

(4) A creative individual who is likely to be an entrepreneur is called Innovator.

Innovation requires creative and such creative individuals cause economic growth. Whenever there is a withdrawal of status respect, it would give rise to birth of innovation of a creative individual who is likely to be an entrepreneur.

Critical Evaluation of E. Hagen’s Theory:

This theory acts as dis­tinction between entrepreneurship and intrapreneurship. There are different factors within the organisation which motivate the executives and professionals to do some innovative behaviour leading to new product and services.

Actually, they are not governed by status withdrawal. The theory only suggests that the people who had enjoyed social standing at some stage in their histories fall into a retreats phase with an urge to regain the lost status and emerge as an entrepreneurship personality.

Q8) State John H. Kunkel theory.       5

A8) John H. Kunkel has also given a particular concept about entrepreneurship. He has presented a theory of entrepreneurial behaviour in connection to the development of entrepreneurship. Kunkel’s theory is concerned with the expressed activities of individuals and their relations to the previous and present surroundings, social structures, physical conditions and behavioural patterns determined by reinforcing and opposing present in the context.

Hence, entrepreneurial behaviour is a function of surrounding and social struc­tures, both past and present and can be readily influenced by the manipulative economic and social incentives.

Kunkel, “The supply and development of an entrepreneur depends upon the existence and extensiveness of four structure i.e., limitation structure, demand structure, opportunity structure, and labour structure.”

He has given stress on the following four types of structure for the deve­lopment of entrepreneurship:

1. Demand structure,

2. Opportunity structure,

3. Labour structure,

4. Limitation structure.

The description of each point is given as follows:

1. Demand Structure- The demand structure is of economic nature. This structure is changing day by day according to economic progress and govern­ment policies. The behaviour of individual can be made enterprising by affect­ing the main elements of demand structure.

2. Opportunity structure- The opportunity structure is formed by combination of supply of capital, managerial and technical skill production methods, labour and market, training opportunity establishment of an enterprise and conducting different activities.

3. Labour structure- The labour structure is directed by several factors such as source of livelihood, traditional outlook and life ambitions. The quality of labour influences the emergence and growth of entrepreneurship. Rather than capital intensive, labour intensive will serve our interest in a better manner. The problem of labour immobility can be solved by providing infrastructural facilities including efficient transportation wherever an entrepreneurship is promoted.

4. Limitation structure- We can say that the limitation structure is social and cultural. This structure affects the development of an entrepreneur.

Critical Evaluation of Kunkel Theory:

The theory assumes the ideal structures for the supply of entrepreneur. But generally there is discrepancy between objectives, structures and the actual incidence of entrepreneurs. It is due to the fact that there are inadequate or incorrect perceptions. In practice, entrepreneurship is also governed by the specific combination of circumstances which are generally not available in the environment.

At last but not the least, we conclude that all the authors i.e., J. A. Schumpeter, David C. McClelland, Everett E. Hagen and John H. Kunkel have given their own opinion on concept of psychological theory of entrepreneurship. This theory presents the certain psychological motives that are responsible for the evolution of entrepreneurship. The main point which is focused on all the theories is on the individual and his personality inference by environment factors in general and internal values in particulars.

Q9) What do you mean by social responsibility?      3

A9) Business ventures are a unit of society in which they operate. These enterprises depend on society for the needed resources like men, material, capital and also for selling their products. In fact, business depends on the society for its existence, growth and promotion. Hence entrepreneurs have a definite social role and responsibility towards the society. Social responsibility denotes the responsibility of the business towards various sections of the society.

Businessmen must consider wider public interest while taking business decisions. A few scholars have defined ‘social responsibility’ in the following way

According to Koontz and O’Donnell, “Social responsibility is the personal obligation of every one, as he acts in his own interest, to assure that the rights and legitimate interests of all others are not infringed.”

In the words of Adolph Berle, “Social responsibility is the business’s responsiveness to public consensus, i.e., the obligation of the business to meet those demands and aspirations of the society about which there is public consensus.” H.R. Bowen defines as “Social responsibility is the obligation to pursue those policies, to make those decisions or to follow those lines of action which are desirable in terms of objectives and values of our society,”

Nicholas Sirpolis has defined social responsibility as: “The circle of care and concern that a business has for the well-being of society. ”

Q10) Write the arguments ‘For’ Entrepreneur’s social responsibility. 8

A10) Arguments ‘for’ entrepreneur’s social responsibility

The arguments supporting a major role for the social responsibility of entrepreneurs are as follows:

(1) Moral Justification: There is a growing realization that it is the moral duty of business houses to serve the society. They enjoy wide economic and social power. Their power should be balanced with social responsibility. Business has the resources and capabilities to solve social problems.

(2) Long-term Self-interest of Business: In the long run, no business enterprise can survive and grow unless it enjoys a good image in the public. The image of the firm can be improved in the eyes of the society by serving their (society) interests.

(3) Public Image: Socially responsible behaviour create a positive public image of an enterprise.

(4) Profitable Opportunities: That Business has little chance of success in a society which is plagued with enormous problems and evils. Business can meet the challenges by converting the problems into profitable opportunities. The securities of a socially responsible company enjoy a wider market among the investors.

(5) Ensuring Law and Order: To maintain law and order in a country, business should shoulder its responsibilities towards the society, otherwise people will resort to anti-social activities which may ultimately harm business. The doctrine of social responsibilities is helpful in ensuring law and order in the society. It is a preventive measure against social disorders.

(6) Balance of Responsibility and Power: Since business entrepreneurs already have a great deal of social power, their social responsibility should be equally great.

(7) Public Expectations: There is a deep conviction that entrepreneur has a clear obligation to the good of the greater society. The business enterprise is expected to be efficient, profitable and at the same time socially responsible.

(8) Interdependence: Society and business affect each other. For example, goods and services provided by the business determine the standard of living in the society. In case business does not produce and supplies goods of good quality at moderate prices, society will react and stop inputs in business. Therefore, it is in the interest of the business to be responsible to its social obligations.

Q11) Discuss the arguments ‘Against’ entrepreneur’s social responsibility.3

A11) Arguments “against” entrepreneur’s social responsibility

The major arguments against the assumption of broad social responsibilities include the following:

(1) Reduction in Total Profits: It is thought that diverting resources away from the firm to socially responsible programmers may undermine the competitive strength of entrepreneur.

(2) Financial Burden on the Institution: Social obligations can be very expensive and may cause entrepreneurs to forgo attractive business investments or even to go out of business.

(3) Lack of Skills: Most entrepreneurs do not have the skills and training to work effectively with social issues.

(4) Lack of Accountability: There is no way to hold entrepreneurs accountable for the outcomes of its social programmes.

(5) Dilution of Purpose: The pursuit of social goals may dilute the economic productivity of the business enterprise.

Q12) Explain the social responsibility of entrepreneur towards different sections of society.                                                                                                                              8

A12) Social responsibility of entrepreneur towards different sections of society

Business enterprise requires discharging social responsibilities not only towards society but also towards other social groups like employees, customers, suppliers, government, creditors, unions and the global community. Social responsibility of entrepreneur towards different sections of society may be summarized as follows:

(1) Social Responsibility towards the Customers: It is truly said that “Customers are the life blood of every business.” The major social responsibility of entrepreneur towards customers includes the following.

(i) Producing and supplying goods at reasonable prices,

(ii) Avoiding creation of artificial scarcities.

(iii) Providing after-sale-services.

(iv) To Furnish needed information to prospective customers concerning product composition and its quality.

(v) To ensure the health and safety of customers,

(vi) To prevent formation of monopolies with the, intention of exploiting customers.

(vii) Revealing truth in advertising and levels.

(viii) To respect the integrity of the culture of the customers.

(ix) To ascertain consumer preferences and consumer satisfaction.

(x) To work within the framework of various consumer laws and legislations.

(2) Responsibility towards the Employees: Employees produce wealth for the business and give their best service and share in the resulting profits. Business entrepreneurs have significant responsibilities towards employees. Entrepreneur’s basic obligations to its employees are:

(i) To provide the opportunity for training, promotion and advancement.

(ii) To provide better working conditions and good physical facilities.

(iii) To place an employee in a position for which he is best suited by his skills and interest.

(iv) To start welfare and profit sharing plans for employees.

(v) To satisfy “employee dignity” by allowing him work freedom, self-realisation. It is the responsibility to treat each employee as an entity and not as in impersonal part of a group of humans.

(vi) To recognize the workers right to a fair wage, a right to  participate in decisions affecting their working life, to membership of a trade union.

(vii) To settle employee’s grievances and disputes smoothly.

(3) Responsibility toward Suppliers and Creditors: Business additionally owns obligation toward providers, sellers and lenders as follows:

(i) All dealings with providers must be on honest phrases concerning price, quality, delivery, fee etc.

(ii) Business need to offer correct and accurate statistics to lenders and providers;

(iii) To keep away from malicious propaganda, price-cutting, cut-throat competition, dangerous combinations, interference in manufacturing and distribution and different cheating alternate practices.

(iv) To keep away from exploitation of small competitors.

(v) To create ok, honest and inter-enterprise relationship.

(vi) To offer statistics concerning exalter ate in habits, style and alternatives of customers, 

(vii) To sell neighbourhood providers.

(viii) To make fee of hobby at suitable time.

(ix) To make suitable use of debt capital.

(4) Responsibilities toward the Community: A few duties of entrepreneur toward the network are as follows:

(i) To preserve, keep and enhance the herbal wealth and assets of the society.

(ii) Economic use of herbal assets in order that those aren't removed at a quicker rate.

(iii) Control of pollutants through imparting important pollutants-manage gadgets withinside the factories, and through facilitating pollutants-manage measures withinside the society.

(iv) Establishing of latest enterprise gadgets in backward regions, and in particular for handicapped humans and weaker sections of the society.

(v) Financial guide for imparting training centers in rural areas.

(vi) Helping in fitness and hygiene programmes withinside the society.

(vii) Creation in their personal townships for you to offer residing locations and centers to their personal workers.

(viii) To offer help on the time of any herbal calamities like flood, drought, famine etc.

5. Responsibilities toward the State and the Nation: Entrepreneurs owe responsibility toward the Government too. Their obligation is:

(i) To obey the rules, guidelines and the legal guidelines set forth through neighbourhood, State and federal governments.

(ii) To pay its dues and taxes to the authorities absolutely and honestly.

(iii) To behaviour enterprise according with authorities policies.

(iv) Not to deprave public servants and democratic processes.

(v) To keep away from shopping for the political choose through any means.

(vi) To assist authorities in universal making plans for nation’s well-being.

6. Responsibilities toward the Business Enterprise itself: Entrepreneur is a trustee of the assets of the society. He has to constantly keep his enterprise green and efficient in order that he can satisfy his duties toward different sections of the society, handiest a, healthful enterprise can carry out its social responsibilities. Thus, marketers should satisfy the, following responsibilities toward the enterprise enterprise:

(i)  To function enterprise efficaciously at minimal cost

(ii) To make efforts for non-stop boom and enlargement of enterprise

(iii) To act as an innovator.

(iv) To keep its wealth-generating assets intact through making ok earnings to offset the threat of financial activity.

(v) He need to constantly, in each selection and action, positioned financial overall performance first. Business can handiest justify its lifestyles and its authority through the financial consequences it produces.

(vi) To inspire inventions.

(vii) To shield the hobby of the enterprise.

(viii) To make most advantageous use of assets.

(ix) He need to attempts to obtain the dreams of the enterprise.

Q13) Write the difference between innovation and invention.   3

A13) The main differences between invention and innovation are:

1. An invention is a phenomenon of a new concept of a device or procedure that has never been manufactured. Innovation is described as the first implementation of a product or process concept.
2. Inventions relate to the creation of the latest products. Innovation, on the other hand, means adding benefits to or migrating to a current product.
3. Invention is the idea of ​​a new concept and demonstrating how it works theoretically. In contrast to innovation, it's about practicing the latest concepts.
4. Invention requires scientific knowledge. Innovation, on the other hand, requires a wealth of expertise in communication, technology and strategy.
5. When a physicist comes up with a new idea, he or she invents something. In contrast, innovation occurs when the need for a new product or an improvement in the current product is identified.
6. A single substance or procedure is the subject of the invention. Innovation, on the other hand, involves the integration of different products and services.
7. However, the invention is limited to the R & D department of the organization. The culture of innovation pervades the organization.