MBA Entrepreneurship Unit 1 PDF

UNIT 01 Introduction to Entrepreneurship Names of Sub-Units Concept of Entrepreneurship, Importance of Entrepreneurship, History and Evolution of Entrepreneurship, Types of Entrepreneurs, Myths of Entrepreneurship, Women Entrepreneurship in India, Technolog...

UNIT 01 Introduction to Entrepreneurship Names of Sub-Units Concept of Entrepreneurship, Importance of Entrepreneurship, History and Evolution of Entrepreneurship, Types of Entrepreneurs, Myths of Entrepreneurship, Women Entrepreneurship in India, Technology and Business Communication Overview The unit begins by explaining the concept of entrepreneurship, its importance and history. Further, the unit explains different types of entrepreneurs. Also, the unit sheds light on myths of entrepreneurship. Thereafter, it discusses the impact of women entrepreneurship in India. Towards the end, the unit explains the importance technology and business communication in an enterprise. Learning Objectives In this unit, you will learn to:  Explain the concept of entrepreneurship  Discuss the importance of entrepreneurship  Discuss the history and evolution of entrepreneurship  List the types of entrepreneurs  Infer the impact of women entrepreneurship in India JGI JAIN DEEMED-TO-BE UNIVERSIT Y Entrepreneurship Learning Outcomes At the end of this unit, you would:  Analyse the importance of entrepreneurship  Enlist various types of entrepreneurs  Explore myths about entrepreneurship  Identify the impact of women entrepreneurship in India  Recognise how technology and business communication leads to business success Pre-Unit Preparatory Material  https://www.youtube.com/watch?v=LB J7hvUzY 1.1 INTRODUCTION Entrepreneurship is the centre of any economic activity and entrepreneurs are the main source of this activity. Undoubtedly, any new product or service is motivated by consumer needs. Likewise, entrepreneurs only fulfil the generated needs of consumers by initiating, designing, developing, and marketing goods or services. It is the eagerness of entrepreneurs that gives birth to a new product. Entrepreneurship is also about setting some new trends. An economy’s development, prosperity, and lifestyle is fundamentally a collective effort and idea of various entrepreneurs directly or indirectly. Entrepreneurship is a significant source of change in all aspects of society. It is also a symbol of business tenacity and achievement. Entrepreneurship can be considered as one the most powerful economic force known to humankind, which empowers individuals to seek those opportunities that are considered as difficult problems by others. 1.2 CONCEPT OF ENTREPRENEURSHIP Entrepreneurship is an age-old phenomenon that shows the relation between an entrepreneur’s vision and its implementation in the business venture. In general terms, any individual who runs a business is known as an entrepreneur. Precisely defining, entrepreneurs are referred to as those individuals who develop their own business by organising, operating and assuming the risk of a business venture. Entrepreneurship pertains to the concept of establishing and managing a business venture to make profit by undertaking various risks in the corporate world. In other words, entrepreneurship is the willingness to establish a new venture. Entrepreneurship is also regarded as a function of perceiving consumer needs and then bringing together the required manpower, material and capital to meet the perceived need. It also refers to the innovative and creative response an economy and business environment receives through the activities and functions of entrepreneurs. Entrepreneurship also refers to the process that involves a new venture set up with the help of composite skills that is the combination of an entrepreneur’s traits and qualities such as risk-taking ability, imagination ability, and ability to combine and exploit factors of production (land, labour, capital, human resource and technology). 18 UNIT 01: Introduction to Entrepreneurship JGI JAIN DEEMED-TO-BE UNIVERSIT Y Entrepreneurship refers to all those activities that an entrepreneur carries out to establish and run the set business enterprise in agreement with the changes in the economic, social and political environments. Entrepreneurship also involves the activities that relate to the anticipation of the likes and dislikes of consumers, feelings and behaviours of consumers, consumer tastes and fashions and the initiation of business ventures to fulfil all these expectations of the consumers. An entrepreneur’s ability to risk assessment and establishing the risky business that fits into the changing economic scenario is known as entrepreneurship. The two major factors that verify entrepreneurship developments are as follows:  Ability of entrepreneurs to take risk  Achievement potential of entrepreneurs The following are some popular definitions of entrepreneurship given by management experts:  Arthur H. Cole has stated that “Entrepreneurship is the purposeful activity of an individual or a group of associated individuals undertaken to initiate, maintain or organize a profit oriented business unit for the production or distribution of economic goods and services.”  D.C. McClelland has identified two characteristics of entrepreneurship. Firstly, doing things in a new and better way, and secondly, decision making in conditions of uncertainty.  Benjamin Higgins has defined entrepreneurship as, “Entrepreneurship means the function of foreseeing investment and production opportunity, organising an enterprise to undertake a new production process, raising capital, hiring labour, arranging for the supply of raw materials and selecting top managers for the day-to-day operation of the enterprise.”  According to Peter F. Drucker, “Entrepreneurship is neither a science nor an art. It is a practice. It has a knowledge base. Knowledge in entrepreneurship is a means to an end. Indeed, what contributes knowledge in practice is largely defined by the ends, that is, by the practice.” 1.2.1 Importance of Entrepreneurship Entrepreneurs are the backbone of any economy. The prosperity of a nation has a direct relation to the development of its economy. It is the responsibility of every nation to ensure economic development to improve the standards of living of the people and eliminate poverty and backwardness. The economic development process involves enhancement in Gross National Product and it depends on the way physical natural resources are utilised by human resources to realise the productive potential of the nation. The growth of a nation needs an increase in the production and level of consumption. The significant reasons why entrepreneurship holds an imperative role in an economy are as follows:  Creates wealth for both the individuals and for the nation: Generally, all individuals who seek business opportunities create wealth by entering into an entrepreneurship. The wealth created by entrepreneurs undoubtedly plays a substantial role in the development of the nation. The business and the entrepreneur contribute in some way to the economy may be in the form of products or services or boosting the GDP rates or tax contributions. Their ideas, thoughts, and inventions are also of a great help to the nation.  Provides employment to huge mass of people: It is very often said that people who do not get employed anywhere start up the entrepreneurial venture. Both new and the existing entrepreneurial establishments are sources of employment to a large number of people. This emphasises on the fact that entrepreneurship is not at all a burden to an economy. Entrepreneurship heads a nation towards better opportunities, which is a significant input to an economy. 19 JGI JAIN DEEMED-TO-BE UNIVERSIT Y Entrepreneurship  Contributes towards research and development system: Contemporary business needs new ideas so entrepreneurs often involve in innovations. Without numerous inventions, the world would have been a much tough place to live in. The curiosity of entrepreneurs to do something unique often gives rise to new products. This ultimately improves technology and assists people in completing work easily.  Creates challenging opportunity for the individuals: Despite being a challenging task, entrepreneurship provides rewards much more than what one anticipates. Entrepreneurs not only enjoy rewards at the financial level but also on an individual level. It is a source of self-satisfaction to the entrepreneur.  Makes the sources of self-sufficiency: Entrepreneurs not only become self-sufficient but also the source of improving standards of living of their employees by providing salary for their work. Entrepreneurs provide the opportunity to individuals to work in their organisation. As individuals get jobs, they get the opportunity of self-sufficiency that is derived in the form of monetary rewards, liberty, and the feeling of contentment from the jobs.  Provides immense evident prospects for self-development: Individuals get the maximum scope for growth and opportunity if they enter into entrepreneurship. Entrepreneurs get motivated by the knowledge and skills they derive with experience. Individuals who work as employees usually deprive form such self-development opportunities. Individuals aspiring to become entrepreneurs also go through a grooming process when they become the entrepreneur. 1.2.2 History and Evolution of Entrepreneurship The history of entrepreneurship is pivotal across the world, even in India. During the pre-colonial era the Indian trade and business was at zenith. Indian’s were deemed prudent and dexterous in smelting of metals such as brass and tin. The Kanishka Empire in the 1st century started nurturing Indian entrepreneurs and traders. Subsequent to that period, around 1600 A.D., India formed trade allegiance with Roman Empire. Gold was pouring from all sides. Then came the Portuguese and the English. They invaded the Indian sea waters and slowly entered the Indian business. They coerced the entrepreneurs to become traders and the Britisher themselves assumed the role of entrepreneurs. This was the key reason for the decline of Indian business during the colonial era. The colonial rule made the Indian outlook and principles rigid. With the establishment of British rule in India, the extent of exploitation further aggravated, though in a much more invisible and discreet in a way. Earlier, during the Moghul rule, the surplus produce and resources were concentrated in the towns within the country but with the coming of the European rulers the surpluses and resources of the subcontinent were drained to other countries converting India into a colony. In 1947, India became an independent nation following years of oppression and struggle that was marked by widespread nonviolent resistance. Economic reforms since 1991 have transformed it into one of the leading economies of the world. However, it still cripples with high levels of penury, illiteracy and destitution. For an entire generation from the 1950s until the 1980s, India followed socialist-inspired policies. The Indian economy was mired in high regulation, protectionism and public ownership, leading to widespread corruption and slow progress. Since 1991, India has inched towards a market- based system. Entrepreneurship in India has revolutionised owing to three dimensions, i.e., favourable framework conditions, well-established government programmes and supportive cultural outlook. 20 UNIT 01: Introduction to Entrepreneurship JGI JAIN DEEMED-TO-BE UNIVERSIT Y 1.3 TYPES OF ENTREPRENEURS The most significant entrepreneurial traits that contribute to the success of entrepreneurs are emotional stability, personal relations, consideration and tactfulness. In other words, the success and failure of an entrepreneur are also related to their ability in maintaining relations with stakeholders and consumers. The types of entrepreneurs are classified in different ways by various authors. The classification helps the potential entrepreneurs to choose their own nature and style of entrepreneurship. Various types of entrepreneurs are as follows:  Business entrepreneur: Business entrepreneurs are individuals who imagine an idea for a new product or service and then set up a business to turn up their idea into reality. They are the ones who strike both production and marketing resources in their search of developing a new business opportunity. Business entrepreneurs may set up a big establishment or a small business unit.  Trading entrepreneur: Trading entrepreneurs are not concerned with the manufacturing of products. They are the ones who undertake trading activities. They identify potential markets, stimulate demands for their product line and create a desire and interest among buyers to go in for their product. They are engaged in both domestic and overseas trade.  Industrial entrepreneur: Industrial entrepreneurs meet the market needs by manufacturing products. They do this by identifying the potential needs of the customers and accordingly tailor the product or services. They work with the possibility of giving shape to their ideas by creating and developing new products. They are product-oriented individuals and often start an industrial unit too for the production of products.  Corporate entrepreneur: Corporate entrepreneurs demonstrate their innovative skills in organising and managing a corporate undertaking. A corporate undertaking implies a form of business organisation that is registered under some law or statute or Act, which provides it a separate legal entity.  Agricultural entrepreneur: Agricultural entrepreneurs undertake agricultural activities such as sowing, raising, reaping and marketing of crops with the help of fertilizers and other inputs of agriculture.  Technical entrepreneur: Technical entrepreneurs are essentially entrepreneurs of “Craftsman type”. They develop a new and improved quality of goods because of their craftsmanship. They concentrate more on production than marketing. They do not care much to generate sales by applying various sales promotional techniques. They demonstrate their innovative capabilities in matters of production of goods and rendering services.  Pure entrepreneur: Pure entrepreneurs are individuals who are motivated by psychological and economic rewards. To achieve personal satisfaction in work, status or ego is the main aim of undertaking entrepreneurial activities by a pure entrepreneur.  Induced entrepreneur: Induced entrepreneurs refer to those individuals who get attracted to policy measures of the government and start up the entrepreneurial venture. The assistance, incentives, concessions and necessary overhead assistance by the government induce individuals to undertake entrepreneurial activities. The force which influences the efforts of entrepreneurs to achieve their objectives is known as motivation. Entrepreneurs are motivated to achieve or prove their excellence in job performance. They are also motivated to influence others by demonstrating their power thus satisfying their ego.  Motivated entrepreneur: New entrepreneurs are individuals who are motivated by the desire for self-fulfilment. They come into existence because of the likelihood of making and marketing 21 JGI JAIN DEEMED-TO-BE UNIVERSIT Y Entrepreneurship some new products for the use of consumers. As the product is developed to a saleable stage, the entrepreneurs are further motivated by rewards in terms of profit and enlarged customer networks.  Spontaneous entrepreneur: Entrepreneurs who start their business out of their natural talent and instinct are called spontaneous entrepreneurs. They are individuals who are discoverers and initiators. Their boldness and confidence motivate them to undertake entrepreneurial activities.  Growth entrepreneur: Growth entrepreneurs are individuals who essentially take up a high growth industry. Such entrepreneurs choose an industry with substantial growth prospects.  Super-growthentrepreneur: Super-growthentrepreneursarethoseindividualswhomakeenormous efforts to take their venture to enormous growth of performance. Their growth performance is identified by the liquidity of funds, profitability and gearing of their venture.  First-generation entrepreneur: First-generation entrepreneurs are those who start an industrial unit by means of an innovative skill. They are essentially innovators, who combine different technologies to produce a marketable product or service.  Modern entrepreneur: Modern entrepreneurs are those who undertake ventures which go well along with the changing demand in the market. They are interested in undertaking only those ventures that suit the current marketing needs.  Classical entrepreneur: Classical entrepreneurs are those individuals who are concerned with the customers and marketing needs through the establishment and growth of a self-supporting venture. They are conventional types of entrepreneurs who work with the aim of maximising the economic return. They first aim to earn a minimum level of profit, which is necessary for the survival and growth of the entrepreneurial venture.  Innovating entrepreneur: Innovating entrepreneurs are characterised by aggressive grouping of information and analysis of results, deriving from an original combination of factors. Individuals belonging to this group are normally aggressive in experimentation by demonstrating cleverness. 1.4 MYTHS OF ENTREPRENEURSHIP Entrepreneurship is a bid to create value by looking out for business opportunity, the management of risk-taking appropriate to the opportunity, and through interaction and management skills to mobilise human, financial and material resources requisite to yield profit. There are some myths pertaining to entrepreneurship which are as follows:  Commencing a business is easy: A majority of people, who initiate the process of starting a business venture, fail to sustain and keep it running. Subsequent to starting a business, only one third of entrepreneurs are able to have a positive cash flow.  Huge amount of finance is required for a new business: A typical start-up only needs about `1,50,000/- to start a business venture. The successful entrepreneurs, who do not believe the myth, carve their business activities to work with limited finance. Astute entrepreneurs tend to rent office space rather than to buy a new place and hold the money. Prudent entrepreneurs turn fixed costs into variable costs by paying people commissions instead of salaries for example; Infosys was started with only `10,000/-.  Banks do not offer loan to start-ups: This is another pervasive myth. Banks and various government institutes have brought in entrepreneurship development schemes with a view to provide finance to budding entrepreneurs.  Entrepreneurs are born: Many people tend to opine that entrepreneurs have intrinsic genetic talents. However, the reality is that a person learns to become entrepreneur. The recent proliferation 22 UNIT 01: Introduction to Entrepreneurship JGI JAIN DEEMED-TO-BE UNIVERSIT Y of college and university courses on the subject supports this point. In the prevailing scenario, entrepreneurship is being successfully taught and preached.  Entrepreneurs need to be tech savvy: It is well known that many high-tech entrepreneurial wizards who have developed their own business mode that is flourishing. Media attention overplays the success of these few high-tech entrepreneurs. Only a small percentage of today’s personal businesses are considered high tech. Entrepreneurs are those who tend to seize the opportunity in the circumstances and capitalise on it. There are many chronicles of people who are merely high school graduate, but have carved a niche for themselves in the business world. 1.5 WOMEN ENTREPRENEURSHIP IN INDIA As per the general concept of an entrepreneur, women entrepreneurs may be defined as the women or group of women who commence, organise and operate a business enterprise. Women entrepreneurs are those women who innovate, create or engage in a business activity. The Government of India defines women entrepreneurs with relation to women’s participation in equity and employment of a business enterprise. Accordingly, women entrepreneurship is defined as “An enterprise owned and controlled by a woman, having minimum financial interest of 51% of the capital and giving atleast 51% of the employment generated in the enterprise to women”. Women entrepreneurs have to perform an array of functions pertaining to establishment of an enterprise. These entail the creation of an idea, its screening, selecting on the type of organisation, developing organisational goals and objectives, planning, fulfilling preliminary and promotional formalities, raising of capital, employing necessary workforce and operating the business. Women entrepreneurs are less in number in India. The role of women was till recently restricted to only kitchen and household activities. However, on account of the several schemes introduced for creation of employment opportunities and for actuating women in business, these activities are now diversifying. Women become both the major contributors as well as the key beneficiaries of industrial development, as entrepreneurs they contribute their bid towards production. Therefore, women have a cardinal role to play in the industrial production as well as in its distribution. Full participation of women in industrial development would ensure effective utilization of labour and other resources and also promote quality production. Women have ventured in and have been successful in different entrepreneurial sectors of electronics, engineering, fashiondesigning, jewellerydesigning, interiordesigning, solarcookers, dairy, foodproducts, handlooms, handicrafts, soaps and detergents, cement, drugs, nurseries, leather, plastics, poultry, garments, fabrics, ceramics, doll-making, catering, textiles, printing, chemicals, pharmaceuticals, transport, communications, computers etc. 1.6 TECHNOLOGY AND BUSINESS COMMUNICATION Before the advancement in technology, business communication was limited to formal business letters and a conversation with the senior staff. In the current era of technological advances, business communications have developed into a new realm. Now, messages are delivered almost at blink of an eye, tasks are allocated and managed by computer programs and communication occurs seamlessly. And advances in technology and business communications have enhanced flow of work and efficiency. In every business, whether big or small, communication forms an indispensable aspect and technology facilitates smooth flow of communication. Internally within an organisation technology streamlines exchange of data between various sections or departments. Externally, technology has made communication simple and ubiquitous. 23 JGI JAIN DEEMED-TO-BE UNIVERSIT Y Entrepreneurship Technology has helped entrepreneurs to streamline the decision making process. Through use of advanced technology business can keep a track of customer buying preferences and market data. Technology in form of business relevant software enables in error free reporting. Entrepreneurs are guaranteed precision with metrics drawn from the finance, marketing and customer engagement departments. Technology assists entrepreneurs to assess crucial data and help a business to evaluate its weak areas and strategise accordingly. Conclusion 1.7 CONCLUSION  Entrepreneurship is also regarded as a function of perceiving consumer needs and then bringing together the required manpower, material and capital to meet the perceived need. It also refers to the innovative and creative response an economy and business environment receives through the activities and functions of entrepreneurs.  Entrepreneurship also refers to the process that involves a new venture set up with the help of composite skills that is the combination of an entrepreneur’s traits and qualities such as risk-taking ability, imagination ability, and ability to combine and exploit factors of production (land, labour, capital, human resource and technology).  Entrepreneurship refers to all those activities that an entrepreneur carries out to establish and run the set business enterprise in agreement with the changes in the economic, social and political environments.  Entrepreneurship also involves the activities that relate to the anticipation of the likes and dislikes of consumers, feelings and behaviours of consumers, consumer tastes and fashions and the initiation of business ventures to fulfil all these expectations of the consumers.  An entrepreneur’s ability to risk assessment and establishing the risky business that fits into the changing economic scenario is known as entrepreneurship.  The curiosity of entrepreneurs to do something unique often gives rise to new products. This ultimately improves technology and assists people in completing work easily.  Individuals get the maximum scope for growth and opportunity if they enter into entrepreneurship.  Entrepreneurs get motivated by the knowledge and skills they derive with experience. Individuals who work as employees usually deprive form such self-development opportunities.  Entrepreneurship in India has revolutionised owing to three dimensions i.e., favourable framework conditions, well-established government programmes and supportive cultural outlook.  Business entrepreneurs are individuals who imagine an idea for a new product or service and then set up a business to turn up their idea into reality. They are the ones who strike both production and marketing resources in their search of developing a new business opportunity.  Industrial entrepreneurs meet the market needs by manufacturing products. They do this by identifying the potential needs of the customers and accordingly tailor the product or services  Corporate entrepreneurs demonstrate their innovative skills in organising and managing a corporate undertaking. A corporate undertaking implies a form of business organisation that is registered under some law or statute or Act, which provides it a separate legal entity  Agricultural entrepreneurs undertake agricultural activities such as sowing, raising, reaping and marketing of crops with the help of fertilizers and other inputs of agriculture. 24 UNIT 01: Introduction to Entrepreneurship JGI JAIN DEEMED-TO-BE UNIVERSIT Y 1.8 GLOSSARY  Employment: A contract between two parties, one being the employer and the other being the employee  Entrepreneur: An individual who organises a business venture and assumes the risk for setting and running up the business venture  Entrepreneurship: An act transforming innovation into economic good  Factors of production: Inputs used in the production process  Innovator: A person or organisation who is the first to introduce something new and better than before 1.9 CASE STUDY: OGE – AN ENTREPRENEURIAL VENTURE Case Objective The case study exhibits how a business opportunity can transformed into a business venture. OGE, a software company, is functioning on the cutting edge of User Experience Design in healthcare. The products and services created at OGE are proven to increase patient engagement experience while improving health outcomes. John, the founder, takes a unique approach to innovation and business ideas. OGE was constituted out of a game studio in Malaysia. The founders saw an interesting opportunity in applying design patterns from games to healthcare applications and developed a psychological model based in part on evolutionary psychology. These insights slowly worked their way into business plans, and ultimately into an operating business. However, John did it a lot differently than most, which might be a large factor in the company’s success today. It was not the idea, inspiration, or even the technology that defined the business rather it was the team, first. Starting with a general idea of where he wanted to go, he built a team, and let the team finds its own way. Why take this approach? If you look at the stats, you see almost all companies fail. About 95% of businesses don’t last longer than five years. The surface reasons for their failures vary widely, but John’s opinion is that if you look beneath the surface, you see these reasons generally boil down to a single factor: a lack of talent in key moments. With this mindset and knowledge, he wanted to focus on building the best team, which can pivot and create new value when confronted with obstacles. Since there is a low amount of venture capital available in Malaysia to build start-ups, John tapped into his network, looking to build a team with the energy and maturity necessary to bootstrap the business from nothing. Starting with the available resources in the initial months, and running off the revenue they brought in, they began to refine the process, technology, and idea over time. The philosophy used in the early days was to make sure that someone always pays for every line of code the team wrote. Instead of trying to find new customers for ready products, the team progressively refined their offering, customer by customer. 25 JGI JAIN DEEMED-TO-BE UNIVERSIT Y Entrepreneurship The team did not know exactly what would form the foundation for a scalable and repeatable product business but certainly, they saw a lot of problems to be solved. They found people who would pay to solve some of those problems. Then, the challenge became how do you keep control of the innovation, own the intellectual property, and continue to build on it? How can you do that and avoid finding yourself trapped in a sequence of unrelated projects? To solve this, OGE was first and foremost careful in structuring their contracts so that the company retained ownership of software IP, and secondly constantly evaluated their projects, customers, and potential customers, looking for commonalities. From those insights, the team crafted its sales and marketing message as a hypothesis to be tested against the market. As an entrepreneur since 1998, John’s past experiences were very pertinent in building the team, developing clientele, and managing it all. By utilising his relationships and past connections, he was able to find the right people he needed. In short, the past experience was a huge contributor to the success they have today. A wide range of experiences from everyone was critical in how clients were handled, and how things were brought to the table for the company’s vision. He was well aware of the fact that for the survival and success of the company with the team-first mentality, the team really needed to perform first with taking benefits of strengths and experiences of others. For inspiration and creativity outside the office, John has many outlets that allow him to be creative. For instance, he has a deep artistic background, playing music, writing poetry, and playing sports such as soccer. He has also practised martial arts, and is trained to be a composer in the past! A huge takeaway here is that John utilises these different experiences, which helped him gain different perspectives on life and business. These different experiences lead to great ideas that he and his team can build upon for clients. To keep track of the innovation in the business, regular off-site meetings are a must for everyone! Getting people out of the flow of the work is great. As well, getting people to, at least for a time, stop working IN the company and spend some time working ON the company. This allows everyone to be a part of crafting the vision, and have buy-in, which is huge for employee morale and overall innovation in the business. On top of that, OGE has a strategic council of senior people in the company, who get together to evaluate progress towards key goals, and a weekly management meeting for a tactical process with what is going on. The founder, John, suggests that if you have an idea that you want to build into a great business, you need a really great team. The wrong team or a poorly constructed team will take any opportunity or business idea in front of them and destroy it, while a great team will always find a way to pivot out of a bad decision. The most important question you can ask yourself is who do I trust with this mission? Not what needs to be done, or how should it be done. Also, getting people working ON the business, instead of IN the business is a real driver of creativity and innovation of the direction they take. Questions 1. How John’s experience was pertinent to the new venture? (Hint: Building the team, developing clientele, and managing it all) 2. What else does an entrepreneur with a good idea need to have a great business? (Hint: A great team) 3. How was John able to find the right people? (Hint: By utilising his relationships and past connections) 26 UNIT 01: Introduction to Entrepreneurship JGI JAIN DEEMED-TO-BE UNIVERSIT Y 4. What were other special skills of John apart from effective team handling? (Hint: Deep artistic background, playing music, writing poetry, etc.) 5. How can poorly constructed team harm a new business? (Hint: By destroying any opportunity or business idea) 1.10 SELF-ASSESSMENT QUESTIONS A. Essay Type Questions 1. Entrepreneurship is also regarded as a function of perceiving consumer needs and then bringing together the required manpower, material and capital to meet the perceived need. Explain the concept of entrepreneurship. 2. Entrepreneurship is important for a country for various reasons, from promoting social change to driving innovation. Discuss the importance of entrepreneurship. 3. The types of entrepreneurs are classified in different ways by various authors. The classification helps the potential entrepreneurs to choose their own nature and style of entrepreneurship. Explain any two types of entrepreneurs. 4. People always get puzzled when it comes to starting an enterprise as there are a number of myths associated with entrepreneurship. Examine a few myths of entrepreneurship. 5. According to a report, there are around 8 million women entrepreneurs in India, and 10% of all formal enterprises are owned by women. Write a brief note on women entrepreneurship in India. 1.11 ANSWERS AND HINTS FOR SELF-ASSESSMENT QUESTIONS A. Hints for Essay Type Questions 1. Entrepreneurship also refers to the process that involves a new venture set up with the help of composite skills that is the combination of an entrepreneur’s traits and qualities such as risk-taking ability, imagination ability, and ability to combine and exploit factors of production (land, labour, capital, human resource and technology). Refer to Section Concept of Entrepreneurship 2. Entrepreneurs are the backbone of any economy. The prosperity of a nation has a direct relation to the development of its economy. It is the responsibility of every nation to ensure economic development to improve the standards of living of the people and eliminate poverty and backwardness. Refer to Section Concept of Entrepreneurship 3. Business entrepreneurs are individuals who imagine an idea for a new product or service and then set up a business to turn up their idea into reality. On the other hand, technical entrepreneurs are essentially entrepreneurs of “Craftsman type”. They develop a new and improved quality of goods because of their craftsmanship. Refer to Section Types of Entrepreneurs 4. Commencing a business is easy, huge amount of finance is required for a new business, banks do not offer loan to start-ups, and so on are some myths of entrepreneurship. Refer to Section Myths of Entrepreneurship 5. The Government of India defines women entrepreneurs with relation to women’s participation in equity and employment of a business enterprise. Refer to Section Women Entrepreneurship in India 27 JGI JAINDEEMED-TO-BE UNIVERSIT Y Entrepreneurship @ 1.12 POST-UNIT READING MATERIAL  https://www.avocor.com/blog/7-advantages-of-technology-in-business-communication/  https://www.business2community.com/tech-gadgets/importance-information-technology- business- today-01393380 1.13 TOPICS FOR DISCUSSION FORUMS  Discuss with your friends how to start a business venture. 28