Entrepreneurship Definition and Characteristics

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Questions and Answers

What is entrepreneurship?

The process by which individuals pursue opportunities without regard to resources they currently control.

Who are entrepreneurs?

People who take risks and put useful ideas into practice.

What is the academic definition of entrepreneurship according to Stevenson & Jarillo?

Entrepreneurship is the process by which individuals pursue opportunities without regard to resources they currently control.

Which of the following are characteristics of an entrepreneur? (Select all that apply)

Vision-oriented Signup and view all the answers

Entrepreneurs rely on fate or luck.

False Signup and view all the answers

Name a common trait of entrepreneurs.

Risk takers Signup and view all the answers

Which of the following is NOT a common challenge faced in entrepreneurship?

Flexible regulations Signup and view all the answers

Match the following descriptions with the correct term:

Businessman = A person who starts a business on an old concept Entrepreneur = A person who brings a unique idea to run a startup Signup and view all the answers

An entrepreneur creates the market for their own _______.

business Signup and view all the answers

What must be conducted after the initial screening of business ideas?

In-depth examination of the chosen ideas. Signup and view all the answers

Which of the following is NOT one of the objectives mentioned?

Promote the business idea Signup and view all the answers

What does feasibility literally mean?

Whether some idea will work or not. Signup and view all the answers

A project must be viable only in technical terms.

False Signup and view all the answers

Feasibility analysis involves examining the ______ aspects of a business.

operations, financial, HR and marketing Signup and view all the answers

What are some resources that can assist in the feasibility study?

Technical Consultancy Organisations (TCOs), district-wise industrial potential surveys, and published project reports. Signup and view all the answers

Which of the following is an essential aspect of market analysis?

Identifying market demand Signup and view all the answers

Study Notes

Entrepreneurship Definition

Entrepreneurs pursue opportunities regardless of resources they currently control.
Entrepreneurship is the process of turning an idea into a business.

Entrepreneur Characteristics

Vision-oriented individuals.
High need for achievement.
Control their lives.
Undertake moderate risks for high returns on investments.
Able to manage ambiguity.
Productive and efficient.

Entrepreneur Traits

Risk takers.
Flexible.
Knowledgeable.
Independent.
Energetic.
Creative.
Dynamic leader.
Responsive to suggestions and criticisms.
Resourceful.
Initiators.
Persistent.

Entrepreneurship Challenges

Knowledge gap between developed and developing markets.
Differences in accounting systems across countries.
Variable rates of return.
Non-convertibility of currencies.
Communication gaps.
Language barriers.

Additional Entrepreneurship Challenges

Political unrest and legal concerns.
Cultural differences.
Discrepancies in technology use.
Market complexity.
Supply chain concerns.
Lack of specific infrastructure.
Financial market volatility.

Businessman vs Entrepreneur

Businessman: Starts a business based on an existing concept or idea.
Entrepreneur: Brings a unique idea to life and creates a new market for their business.
Businessman: A market player.
Entrepreneur: A market leader, being the first to start their type of enterprise.

Introduction

Setting up a business involves careful planning and examination of business ideas.
Feasibility analysis is crucial to determine the viability of an idea from various perspectives: techno-economic, financial, and legal.
A well-crafted business plan serves as a roadmap for successful venture, whether funding is required or not.
Starting a new business is challenging and requires awareness of potential problems.

Objectives

Conduct a feasibility analysis of a proposed business idea, considering marketability, technical viability, funding, and legal aspects.
Prepare a business plan.
Understand basic startup problems.

Project Feasibility Study

Feasibility analysis determines the viability of a project, assessing market demand, investment requirements, funding sources, and technical feasibility.
It examines operational, financial, HR, and marketing aspects of a business before it begins.
Feasibility is a multi-faceted concept; a project must be viable from a technical, economic, and commercial perspective.
Projects that are technically possible may not be economically viable.
Feasibility analysis requires specific skills that may require professional help from organizations like HARDICON (Haryana-Delhi Industrial Consultancy Organisation).
District-wise industrial potential surveys from SISIs (Small Industries Service Institutes) and DICs (District Industries Centres) can be a good starting point.
Project reports published by the directorate of industries and private consulting firms can also be helpful.
It is crucial to re-validate assumptions and findings of existing reports and avoid simply jumping into a project based on them.

Market Analysis

Market Analysis focuses on understanding the aggregate demand for a product or service and the potential market share that can be captured.
Customer support is essential for the project's success.
Defining the target market is crucial, as the entire universe cannot be the market.

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Description

This quiz explores the key concepts of entrepreneurship, including the definition, characteristics, traits, and challenges faced by entrepreneurs. Understand what makes a successful entrepreneur and the various obstacles they encounter in different markets.