Entrepreneurial Skills - 1 PDF

ENTREPRENEURIAL SKILLS -1 Learning Outcome ❖ To Identify various types of business activities ❖ Understand the meaning of entrepreneurial development ❖ Identify the roles of rewards of entrepreneurship Business Activities A business enterprise is an economic institution as it is engaged in t...

ENTREPRENEURIAL SKILLS -1 Learning Outcome ❖ To Identify various types of business activities ❖ Understand the meaning of entrepreneurial development ❖ Identify the roles of rewards of entrepreneurship Business Activities A business enterprise is an economic institution as it is engaged in the production and/or distribution of goods and services in order to earn profits. Eg- A factory owner,a shopkeeper, a transport company Types of Business activities Business activities are classified into 3 categories Business Activities MANUFACTURING SERVICE HYBRID Manufacturing ❖ Process of transforming raw materials & semi-finished products into finished products. ❖ Eg- cement,sugar,jute Types of Manufacturing business Industries ❖ Analytical - Raw material is broken into several useful materials.Eg- In oil refinery,crude oil is separated into petrol diesel etc. ❖ Synthetical - Two or more materials are mixed to form a new product,Eg- Concrete,gypsum,coal are mixed to produce cement. ❖ Processing - A raw material is processed through various stages to make final product.Eg - cotton is passed through spinning,weaving,bleaching etc ❖ Assembling - manufactured parts or components are combined together mechanically or chemically to produce a new product.Eg- Manufacturing of T.V,washing Machines etc Service ❖ Service type of business provides intangible products(products with no physical form) ❖ Eg - Salons,Repair shops,Schools, Bank Hybrid ❖ Business classified in more than one type of business ❖ Eg - Restaurant : Ingredients for a meal is considered as manufacturing and customer orders is considered as a service Types of business enterprises Non-corporate In Non-corporate the identity of the enterprise is not different from that of its owners.Owners are liable for debts owed by the enterprise. ❖ Sole proprietorship - One person provides the capital,bears the risk.it is a “one-man business” ❖ Joint hindu family firm - firm owned and controlled by a joint hindu family.Senior most male member is called “Karta”. ❖ Partnership - In this form 2 or more (not more than 50)persons enter into a contract to carry on some awful business jointly and to share its profits.A partnership which is set up for a specified time period or specific object is known as joint venture.It is dissolved automatically on the expiry of the period. Corporate In a Corporate form the identity of the enterprise is separate from that of its owners.Owners can’t be held personally liable for debts owed by the enterprise. ❖ Joint stock company - It is an incorporated association of two or more persons.Its continuity is independent of the lives of its members.Management and control lies in the board of directors consisting of the elected representatives of the members ❖ Cooperative society - It is a society organised with the purpose of rendering service to its members and to the public in general.It is organised on the principle of mutual self-help.It has a distinct identity and the liability of its members are limited. Entrepreneurship Entrepreneur is a creator or designer who designs new ideas and business according to the market requirements and passion. Entrepreneurship development Entrepreneurship development is the process of improving the skills & knowledge of entrepreneurs through various training and classroom programs. It is concerned with the study of entrepreneurial behaviour,the dynamics of business set-up, development & expansion of the enterprise.It concentrates more on growth potential & innovation. Characteristics of Entrepreneurship development Purposeful activity - goal -oriented, either to earn money or to serve the society Creative activity - involves introduction of something new or better. Risk bearing activity - those who succeed become celebrities and fail are ridiculed. Organising - organises factors of production,land,labour,capital etc Gap filling - fills the gap between what the society needs and what is available Dynamic process - changes creates opportunities for entrepreneurs Initiative thinking - Entrepreneurship involves taking initiatives Multi-dimensional - Entrepreneurship has several dimensions, eg- economic,social,psychological,cultural etc Roles of an Entrepreneur  Rewards of Entrepreneurship ❖ Independence - An entrepreneur is his own boss.He can take all decisions. ❖ Ambition-fulfilment - Some people want to convert their ideas into a new product or service.Eg-smartphone,electric vehicle ❖ Excitement - Entrepreneurship involves adventure.Some people resign well paid jobs and launch their own venture. ❖ Freedom - Entrepreneurship allows the freedom to try out one’s ideas. ❖ Wealth creation - Successful entrepreneurs create enormous wealth for themselves and their staff ❖ Status - Success in entrepreneurship brings considerable fame and prestige.Narayan Murthy,Elon Musk,Bill gates are known all over the world.