UNIT-V Entrepreneurship: Creativity and Innovation in Business.

Creativity and
Entrepreneurship Sources and Methods of Ideas Planning and Development of
Programmes fcological Entrepreneurship. International Business Opportunities.
Entrepreneurship: Entrepreneurship is a process of actions of an entrepreneur who is a
person always in search of something new and exploits such ideas into gainful opportunities
by accepting the risk and uncertainty with the enterprise.
According to Joseph Schumpeter, “Entrepreneurship as defined essentially consists in doing
things that are not generally gone in the ordinary course of business routine.”
According to Peter F. Drucker, “ Entrepreneurship occurs when resources are redirected to
progressive opportunities not used to ensure administrative efficiency”. He further states
that entrepreneurship is not natural. It is not creative. It is work entrepreneurship requires
entrepreneurial management.
Characteristics of Entrepreneurship: Entrepreneurship is characterized by the
following features:
1. Ability to take a risk: Starting any new venture involves a considerable amount of
failure risk. Therefore, an entrepreneur needs to be courageous and able to evaluate and
take risks, which is an essential part of being an entrepreneur.
2. Innovation: It should be highly innovative to generate new ideas, start a company and
earn profits out of it. Change can be the launching of a new product that is new to the
market or a process that does the same thing but in a more efficient and economical way.
3. Visionary and Leadership quality: To be successful, the entrepreneur should
have a clear vision of his new venture. However, to turn the idea into reality, a lot of
resources and employees are required. Here, leadership quality is paramount because
leaders impart and guide their employees towards the right path of success.
4. Open-Minded: In a business, every circumstance can be an opportunity and used for
the benefit of a company. For example, Paytm recognised the gravity of demonetization
and acknowledged the need for online transactions would be more, so it utilised the
situation and expanded massively during this time.
5. Flexible: An entrepreneur should be flexible and open to change according to the
situation. To be on the top, a businessperson should be equipped to embrace change in a
product and service, as and when needed.
6. Know your Product: A company owner should know the product offerings and also
be aware of the latest trend in the market. It is essential to know if the available product
or service meets the demands of the current market, or whether it is time to tweak it a
 little. Being able to be accountable and then alter as needed is a vital part of
entrepreneurship.
Importance of Entrepreneurship: The following are the reasons for significance of
entrepreneurship:
1. Creation of Employment: Entrepreneurship generates employment. It provides
an entry-level job, required for gaining experience and training for unskilled workers.
2. Innovation: It is the hub of innovation that provides new product ventures, market,
technology and quality of goods, etc., and increase the standard of living of people.
3. Impact on Society and Community Development: A society becomes
greater if the employment base is large and diversified. It brings about changes in society
and promotes facilities like higher expenditure on education, better sanitation, fewer
slums, a higher level of homeownership. Therefore, entrepreneurship assists the
organisation towards a more stable and high quality of community life.
4. Increase Standard of Living: Entrepreneurship helps to improve the standard
of living of a person by increasing the income. The standard of living means, increase in
the consumption of various goods and services by a household for a particular period.
5. Supports research and development: New products and services need to be
researched and tested before launching in the market. Therefore, an entrepreneur also
dispenses finance for research and development with research institutions and
universities. This promotes research, general construction, and development in the
economy.
Creativity: Creativity is a human capacity, which pays high attention to studies and
thinking. It is either a natural gift or is acquired also. This way, it creates new methods of
working place of traditional methods, for achieving general objectives. While putting stress
on the importance of creativity in entrepreneurship.
Types of Creativity: The following are the types of creativity:
1. Essence Creativity: When a company comes out with a new idea or concept
which leads it to several new opportunities and gives a new direction to its business, is
called essence creativity.
2. Expressive Creativity: It deals with expressing ideas and concepts in new ways.
Creativity that one comes across in activities that involve expressive communication
such as advertising, sales promotion, packaging, product design etc.
3. Existential Creativity: It brings about a qualitative change in the way the
organization and its people exist. Existential creativity enables the members of the
 organization to pursue growth, realize their potential and strive for noble yearnings like
Maslow’s self-actualization.
4. Entrepreneurial Creativity: Entrepreneurial Creativity is about coming up with
innovative ideas and turning them into value-creating profitable business activities.
5. Empowerment Creativity: Empowerment means enhancing the status of
external stakeholders and the society at large. This is achieved by enhancing authority,
influence, competencies, personality, growth and development of others. External
holders are customers, unions, suppliers, creditors, bankers, regulations and the general
public at large.
The Role/Significance of creativity in business: Creativity is a crucial skill for an
entrepreneur, and helps in devising interesting processes and products. Now the question is
what makes creativity so crucial and impactful for an entrepreneur. Let’s have a look and try
to understand the importance of creativity:-
1. Optimal utilization of employee potential: An entrepreneur utilizes full
employee potential by encouraging creativity in workplace. There might be an ocean of
ideas which are being dormant and ready to be utilized. By tapping on such creativities,
an entrepreneur can reap results in the form of profitability, financial strength, and
effective decision making.
2. Competitive advantage: Creativity leads to generation of novel and innovative
ways of doing business. Exploring new niches and generating new ideas lead to
efficiency and eventually give an entrepreneur the required edge over the competition.
3. Product development: Creativity encourages new ways of developing an
existing product or service, thereby optimizing business activities in the organization. A
creative entrepreneur knows how to make improvements in the deliverables of an
enterprise.
4. Changing the status quo: Creativity enables an entrepreneur to get new
perspectives towards business processes or financial/operational problems. It is creativity
that helps an entrepreneur to abandon status quo and follow a path of immense
discoveries. Creativity ignores ‘’usual’’ or ‘’normal’’, and lets an entrepreneur think
outside of the box. Traditional solutions are shut and new, interesting, & versatile options
are explored. It leads to ‘’Thinking the Unthinkable’’.
5. Developing new niches: It is also very important for an entrepreneur to analyse
the traditional business approach and come up with new aspects of doing business
activities. This can lead to a change in the methods of manufacturing or service delivery
 or supply chain, and so on. This all generates new niches for a potential business and
leads to success.
Innovation: According to Stephen P. Robbins, “Innovation is a new idea applied to
initiating or improving a product, process or services.
According to Peter Drucker. “ Innovation means by which the entrepreneur either creates
new wealth producing resources or endows existing resources with enhanced potential for
creating wealth”
Types of Innovation: The following are the types of innovation:
1. Product innovation: It consists of changes in product attributes with a change in
how the product is noticed by consumers
2. Process innovation: It consists of changes regarding the product or the service
production process. It does not necessarily have an impact on the final product but
produces benefits in the production process, generally increasing the productivity and
reducing costs. Example:
3. Business model Innovation : It consists of changes in the business model which
means the way the product or the service is offered to the market. It does not necessarily
imply changes in the product or even in the production process but in the way as it is
brought to the market
4. Incremental Innovation: It reflects small continuous improvements in products
or product lines. It generally represents small improvements in benefits noticed by the
consumer and it does not change significantly the business model or the way the product
is consumed.
5. System Innovation: It leads to systemic changes in both social (values,
regulations, attitudes etc.) and technical (infrastructure, technology, tools, production
processes etc) dimensions, System innovation may include elements or combinations of
all types of innovations (product, process, marketing,)
6. Complementary Innovation: It is the development of a new product or process
which increases the demand for the product or process in question. It offers something
new and changes the structure of the business.
7. Radical Innovation: It represents a drastic change in the way that the product or
the service is consumed. It generally, brings a new paradigm to the market segment that
modifies the existing business model, Example: the evolution of the music CD to digital
files in MP3 extension.
The Role/Significance of innovation in business: Successful innovation should be
a part of your business strategy, where you can create a culture of innovation and make a way
for creative thinking. Innovation is a facilitator of entrepreneurship; innovative ideas are what
will make a start-up competitive and here are some important benefits of innovation in
business:
1. It´s a tool to solve problems: You need to come up with far-sighted, creative
ideas and innovative solutions to solve certain problems in your business. Thinking
outside the box is crucial to find an answer you’ve never come up with. This way you
can deal with solving stubborn issues and come up with effective entrepreneurial
solutions.
2. Productivity rises: To become more productive you need to start finding a new
process. In order to work smarter, think creatively, focus on what things you should keep
and what things should be erased. Also, don´t forget about the programs and workflows
that can be used to increase productivity.
3. Beat Your Competitors: When you think innovatively, it becomes very easy to
be competitive. If you put in a little creativity and you will easily come up with
revolutionary ways to design products and connect with customers. Also, creativity will
help you to implement the best marketing techniques that will help your business grow.
Differences between Creativity and Innovation:
S.N Creativity Innovation
o
1 Creativity is dreaming of new Innovation means making those dream
things come true.
2 The thinking up of new things and Innovation is the process of converting
concepts can be termed creativity these thoughts into practical usage.
3 Creativity is that if something new Innovation is to make improvements to
has been brought into existence. something which already exists.
4 Creativity is generating ideas Innovation is bringing these ideas to life.
5 Creativity is related to experience innovation is related to observation
Idea Generation/ Idea Planning: Idea generation is the creative process or procedure
that a company uses in order to figure out solutions to any number of difficult challenges. It
involves coming up with many ideas in a group discussion, selecting the best idea or ideas,
working to create a plan to implement the idea, and then actually taking that idea and putting
it into practice. The idea can be tangible, something you can touch or see, or intangible,
something symbolic or cultural.
Sources of Ideas Planning: Entrepreneurs frequently use the following sources of ideas
for planning:
1. Consumers: The potential consumer should be the final focal point of ideas for the
entrepreneurs. The attention to inputs from potential consumers can take the form of
informally monitoring potential ideas or needs or formally arranging for consumers to
have an opportunity to express their concerns. Care needs to be taken to ensure that the
new idea or the needs represents a large enough market to support a new venture.
2. Existing Companies: with the help of an established formal methods potential
entrepreneurs and intrapreneurs can evaluate competitive products & services on the
market which may result in new and more market appealing products and services.
3. Distribution channels: Members of the distribution channels are familiar with
the needs of the market and hence can prove to be excellent sources of new ideas. Not
only do the channel members help in finding out unmet or partially met demands leading
to new products and services, they also help in marketing the offerings so developed.
4. Government: It can be a source of new product ideas in two ways firstly, the
patent office files contain numerous product possibilities that can assist entrepreneurs in
obtaining specific product information, and secondly, response to government
regulations can come in the form of new product ideas.
5. Research & development: Entrepreneur’s own R&D is the largest source of
new idea. A formal and well-equipped research and development department enables the
entrepreneur to conceive and develop successful new product ideas.
Methods of Ideas Planning: Even with the wide variety of sources available, coming
up with an idea to serve as the basis for the new venture can still be a difficult problem. The
entrepreneur can use several methods to help generate and test new ideas, including focus
groups, brain storming and problem inventory analysis.
1. Focus groups: Group of individuals providing information in a structured format is
called a focus group. The group of 8 to 14 participants is simulated by comments form
other group members in creatively conceptualizing and developing new product idea to
fulfil a market need.
2. Brainstorming: A group method of obtaining new ideas and solutions is called
brainstorming. The brainstorming method for generating new ideas is based on the fact
that people can be stimulated to greater creativity by meeting with others an d
participating with organized group experiences. Although most of the ideas generated
from the group have no basis for further development, often a good idea emerges.
3. Problem inventory analysis: Problem inventory analysis uses individuals in a
manner that is analogous to focus groups to generate new product ideas. However instead
of generating new ideas themselves, consumers are provided with a list of problems in a
general product category. They are then asked to identify and discuss products in this
category that have the particular problem. This method is often effective since it is easier
to relate known products to suggested problems and arrive at a new product idea then to
generate an entirely new idea by itself.
4. Reverse brainstorming: Similar to brainstorming, but criticism is allowed and
encouraged as a way to bring out possible problems with the ideas.
5. Synectics: Synectics is a creative process that forces individuals to solve problems
through one of four analogy mechanisms: personal, direct, symbolic and fantasy. This
forces participants to consciously apply preconscious mechanisms through the use of
analogies in order to solve problems.
6. Gordon method: Gordon method is a method of developing new ideas when the
individuals are unaware of the problem. In this method the entrepreneur starts by
mentioning a general concept associated with the problem. The group responds with
expressing a number of ideas.
7. Checklist method: Developing a new idea through a list of related issues is
checklist method of problem solving.
8. Free association method: Developing a new idea through a chain of word
association is free association method of problem.
9. Forced relationship: Forced relationship is the process of forcing relationship
among some product combination. It is technique that asks questions about objects or
ideas in an effort to develop a new idea.
10. Collective notebook method: It is method in which ideas are generated by
group members regularly recording ideas.
11. Heuristics: It is method of developing a new idea through a thought process
progression.
12. Value analysis: Value analysis is developing a new idea by evaluating the worth
of aspects of ideas.
13. Attribute listing: This is an idea finding technique that requires the entrepreneur
to list the attributes of an item or problem and then look at each from a variety of
viewpoints.
Entrepreneurship Development Programmes(EDP): Entrepreneurial Development
Programme (EDP) may be defined as a programme designed to help a person in
strengthening his entrepreneurial motives and in acquiring skills and capabilities necessary
for playing his entrepreneurial role effectively and efficiently. It is therefore necessary to
promote his understanding of motives, motivation pattern, impact on behaviour and
entrepreneurial values.
Objectives of EDP: The following are the objectives:
1. To promote first generation businessman and industrialists
2. To create awareness about availability of resources
3. To promote small, cottage & local industries
4. To encourage self-employment tendencies
5. To provide knowledge about government plans and programmes
6. To make a successful entrepreneur
7. To provide training to operate business
8. To create awareness about marketing
9. To develop entrepreneurs in all areas of the country
10. To remove doubts of entrepreneurs, give solutions and suggest remedies of problems
Role/Importance of EDP: EDPs comprise a number of programmes which provide the
prospective entrepreneurs with information regarding the scope of new business, the process
of starting new ventures, the mode of preparation of project reports, and the sources of
finance. They aim at developing human resources and inducing motivation and competence
in the prospective entrepreneurs. They cause proper utilization of local resources, more
employment generation, promotion of small enterprises and the overall development of an
area.
1. Capital Formation: An entrepreneur mobilises idle savings of the public and puts
them to productive use. Thus, he helps in capital formation. This is very essential for the
industrial and economic development of a country.
2. Employment Opportunities: EDPs enable prospective entrepreneurs in the setting
up of their own enterprises. This enables them to get self-employment. By setting up more
and more enterprises by the entrepreneurs, both on small and large scale, many job
opportunities are created for others.
3. Local Resources: The proper use of local resources promote the progress and
development of the area at lower cost. EDPs help in the proper use of local resources by
providing guidance, assistance, education and training to the prospective entrepreneurs.
4. Balanced Regional Development: EDPs help in accelerating the pace of
industrialisation in remote and backward areas. Thus, they reduce the concentration of
economic power in the hands of a few. This results in the development of backward areas
and balanced regional development.
5. Improved Per Capita Income: EDPs promote the setting up of more enterprises.
This will help in the generation of more employment and income.
6. Improved Standard of Living: Entrepreneurs now make efficient use of the
resources and produce better quality products at lower costs. The consumers get better
quality products at lower prices. This leads to improved standard of living of the society.
7. Economic Independence: Entrepreneurs can produce wide variety of better quality
goods and services at competitive prices. They enable a country to earn foreign exchange
by selling these products in the foreign market. This helps in promoting economic
independence of the country.
8. Preventing Industrial Slums: EDPs can help in preventing spread of industrial
slums. They can support entrepreneurs for setting up their enterprises in industrially
backward areas. This will help in reducing pollution.
9. Social Tension: EDPs can help the unemployed youth for setting up enterprises by
providing proper guidance, training and assistance. This results in self-employment and
prevention of social tension and unrest.
10. Overall Development: EDPs promote setting up of various types of enterprises which
mutually require the outputs of other. This leads to the overall development of an area.
Institutions supporting EDP’s: The most prominent organisations in India include the
following organisations:
1. Indian Institute of Entrepreneurship (IIE): HE is an autonomous organization
under the Ministry of Skill Development & Entrepreneurship. The Institute is engaged in
providing training, consultancy, and conducting research activities in Small and Micro
Enterprises (SME), with special focus on entrepreneurship development.
2. Entrepreneurship Development Institute of India (EDII): EDM situated in
Ahmedabad is a non-profit autonomous organisation. It has been sponsored by financial
institutions such as IDBI, IFCI, ICICI, and SBI. It is also assisted by the government of
 Gujarat. EDII has been assisting the creation of centers for entrepreneurship development
and institutes of entrepreneurship development in various states of the India.
3. Centre for Entrepreneurship Development CED, Gujarat: CED was
established in1979 by the Gujarat government. Its EDP is one of the oldest
entrepreneurship development programme in India.
4. National Institute of Small Industry Extension Training (NISIET)

Hyderabad: It is an autonomous body under Ministry of industry. NISIET has been

providing training, conducting research and consultancy activities for the development of
small industry.
5. Rural Development and Self-Employment Training Institute
(RUDSET): RUDSET has been jointly sponsored by Canara bank and Syndicate bank.
It is engaged in promotion of entrepreneurship.
6. Development Commissioner (MSME) under Ministry of Micro, Small

& Medium Enterprises: The Govt, of India through Development Commissioner

(MSME) under Ministry of Micro, Small & Medium Enterprises has been undertaking
various programmes related to entrepreneurship development. These programmes
include a large number of vocational and entrepreneurship development programmes and
other related programmes for entrepreneurship and skill developme
E-Business Venture: E-business or Online business means business transactions that take
place online with the help of the internet. The term e-business came into existence in the year
1996. E-business is an abbreviation for electronic business. So, the buyer and the seller don’t
meet personally.
Components of Electronic Business: The core components of e-business
are information, communication, and transaction. Business partners use digital networks (i.e.
public or private communication networks) to conduct business processes using innovative
technologies to improve efficiency. Three key areas are particularly important for e-business:
1. E-procurement: The electronic sourcing of products and services by companies,
focused on reducing costs and effort.
2. Online stores: The electronic sale of products and services via appropriate platforms,
such as online stores.
3. Online marketplaces: Electronic commerce via digital networks, connecting the
buyers and suppliers of products and services.
4. Online communities: Electronic communication network between individuals and
organizations, which supports data and knowledge sharing as well as the preparation of
transaction decisions.
5. Online companies: Electronic business cooperation for connecting individual
company services, resulting in a virtual business with a common transaction offer.
Function of electronic business: The most important role of electronic business is
“electronic value creation” – the generation of electronic added value. The forms of
electronic added value are usually distinguished in the following way:
1. Structuring value: An online offer achieves an overview of a large quantity of
information
2. Selection value: An online offer provides specific database information upon
request
3. Matching value: An online offer makes it possible to merge inquiries from
supplier and buyers more efficiently
4. Transaction value: An online offer makes a business more efficient
5. Coordination value: An online offer allows different providers to better combine
their services
6. Communication value: An online offer improves communication between
different consumers
Types of e-business: Now there are actually many types of e-Businesses. It all depends on
who the final consumer is. Some of the types of e-commerce are as follows :
1. Business-to-Business (B2B): Transactions that take place between two
organizations come under Business to business. Producers and traditional commerce
wholesalers typically operate with this type of electronic commerce. Also. it greatly
improves the efficiency of companies.
2. Business-to-Consumer (B2C): When a consumer buys product from a seller then
it is business to consumer transaction. People shopping from Flipkart, Amazon, etc is an
example of business to consumer transaction. In such a transaction the final consumer
himself is directly buying from the seller.
3. Consumer-to-Consumer (C2C): A consumer selling product or service to
another consumer is a consumer to consumer transaction. For example, people put up ads
on OLX of the products that they want to sell. C2C type of transactions generally occurs for
 second-hand products. The website is only the facilitator not the provider of the goods or
the service.
4. Consumer-to-Business (C2B): In C2B there is a complete reversal of the
traditional sense of exchanging goods. This type of e-commerce is very common in
crowdsourcing based projects. A large number of individuals make their services or
products available for purchase for companies seeking precisely these types of services or
products.
5. Consumer-to-Administration (C2A): The Consumer-to-Administration model
encompasses all electronic transactions conducted between individuals and public
administration. Some examples of applications include
 Education – disseminating information, distance learning, etc.
 Social Security – through the distribution of information, making payments,
etc.
 Taxes – filing tax returns, payments, etc.
 Health – appointments, information about illnesses, payment of health services,
etc.
6. Business-to-Administration (B2A): This part of e-commerce encompasses all
transactions conducted online by companies and public administration or the government
and it varies agencies. Also, these types of services have increased considerably in recent
years with investments made in e-government.
Advantages of e-business: There are actually innumerable advantages of e-Business, the
most obvious one being the ease of doing business. Some of the major advantages of e-business
are as follows :
1. Easy to Set Up: It is easy to set up an electronic business. You can set up an online
business even by sitting at home if you have the required software, a device, and the
internet.
2. Cheaper than Traditional Business: Electronic business is much cheaper
than traditional business. The cost taken to set up an e-business is much higher than the
cost required to set up a traditional business. Also, the transaction cost is effectively less.
3. No Geographical Boundaries: There are no geographical boundaries for e-
business. Anyone can order anything from anywhere at any time. This is one of the
benefits of e-business.
4. Government Subsidies: Online businesses get benefits from the government as
the government is trying to promote digitalization.
 5. Flexible Business Hours: Since the internet is always available. E-business
breaks down the time barriers that location-based businesses encounter. As long as
someone has an Internet connection, you may be able to reach and sell your product or
service to these visitors to your business website.
Limitations of e-Business: But it isn’t all good news. E-business does have certain
disadvantages when compared to the traditional way of doing business. Some of the limitations
of e-business are as follows :
1. Lack of Personal Touch: E-business lacks the personal touch. One cannot touch or
feel the product. So it is difficult for the consumers to check the quality of a product.
Also, the human touch is missing as well. In the traditional model, we have contact with
the salesperson. This lends it a touch of humanity and credibility. It also builds trust with
the customer. An e-Business model will always miss out on such attributes.
2. Delivery Time: The delivery of the products takes time. In traditional business, you
get the product as soon as you buy it. But that doesn’t happen in online business. This lag
time often discourages customers. However, e-businesses are trying to resolve such issues
by promising very limited delivery times. For example, Amazon now assures one-day
delivery. This is an improvement but does not resolve the issue completely
3. Security Issues: There are a lot of people who scam through online business. Also, it
is easier for hackers to get your financial details. It has a few security and integrity issues.
This also causes distrust among potential customers.
New Venture Management: Venture management is a business management practice
that focuses on being both innovative and challenging in the realm of introducing what could
be a completely new product or entering a promising newly emerging market.
Venture management is an innovative and challenging business practice, referring to the
undertaking of the risk that is involved in experimenting with new business opportunities. It
generally involves launching an entirely new business product, service, or practice. Venture
management might also focus on introducing some innovation in existing products or
practices.
Entrepreneurial Leadership in Turbulent Times: The following are the reasons
for entrepreneurial leadership in turbulent times:
1. Dynamic Personality: A leader should possess charming and cheerful personality
bubbling with life and vitality. He should have good health, cool temperament, optimistic
outlook, conversational ability and decent behaviour.
2. Intellectual Capacity: A leader should have the ability to think scientifically,
analyse and interpret clearly and concisely different business problems.
3. Initiative: A successful leader has to undertake suitable sequence of actions at
appropriate time by applying intrinsic ideas. He should have new ideas and methods of
doing things with scientific bent of mind. He should possess initiative and creative ability
(ability to inspire, teach and guide people) so as to secure subordinates’ willing co-
operation.
4. Foresight: A successful leader should be imaginative, visualising potential trends and
developing his policies and programmes with foresight based on logical reasoning.
5. Emotional Stability: A leader should have balanced temperament. For having
emotional tranquillity, a leader should overcome moodiness, inconsistency and
disappointment.
6. Flexibility: A leader should have flexible bent of mind and should never think that his
decision is always final. He should be prepared to listen to the viewpoints of others.
Flexibility and open mindedness make the leader more identified with the group.
7. Sense of responsibility: A leader must bear the burden of all his decisions upon
himself. Authority and responsibility go together. A leader possesses authority and he
must also be responsible.
8. Character: A leader should be a man of character. He should be a symbol of faultless
character and conduct. His actions and attitudes should be morally justifiable. He should
also be honest.
9. Optimistic: A leader is optimistic by nature with an ability to think positively in all
spheres.
10. Self-awareness: The ability to “lead” (as it were) one’s own self prior to leading other
selves similarly.
11. Result-orientation: Which means directing every action towards a mission-
prioritizing activities to spend time where results most accrue
12. Charismatic inspiration: Leader should have the charismatic inspiration-
attractiveness to others and the ability to leverage this esteem to motivate others.
13. Technical knowledge: A leader should be well conversant with technical aspects of
the activities undertaken by the business enterprise. Technical knowledge about the
business will enable him to take right decisions on different matters relating to the
business.
14. Organising Ability: The main aim of a successful leader is to get the things done
through the efforts of others. He should possess organisational qualities thereby inspiring
the efforts and energies of people for accomplishing the aims of the business. He should
have capabilities of bringing together men, machines, materials and money in the best
possible manner and use these resources in the most profitable manner.
15. Ability to deal with people: Leadership is primarily concerned with managing
people. The leader should have insight into psychological problems of human
relationships such as aptitudes, emotions, abilities and interests etc. He has to inspire and
motivate the personnel.
16. Ability to judge and decide promptly: A leader should possess the ability to
judge others. A successful leader is one who understands the matter quickly, weighs the
relative worth of alternative courses of action and reaches proper decision which is in the
best interest of the business.
Ecological Entrepreneurship /Ecopreneurship/ Ecopreneur: The term
ecopreneur is derived from two words “entrepreneur” and “ecology”. An entrepreneur whose
business efforts are not only driven by profit, but also by a concern for the environment. The
terms such as Sustainopreneur, environmental entrepreneur and eco capitalists are the other
terms of ecopreneur.
Characteristics of Ecopreneur: The following are the characteristics:
1. They all undertake business ventures which involves a measure of risk.
2. They must identify feasible business opportunity.
3. Their activities must have a positive impact on the environment.
4. The degree of intentionality separates ecopreneurs from accidental entrepreneurs.
Driving forces behind Ecopreneurship: The following are the driving forces;
1. Global Population growth: Ecopreneurs realize that as the resources and land area
is limited, so it is their responsibility to ensure that there are enough resources not only to
fulfil the needs of the current population which is growing continuously, but also for the
future generations. Hence, they should find ways to conserve energy, materials, and
resources by developing new technologies or finding ways to control birth rate and
finding ways to meet the food and shelter demand for the growing population in order to
make sustainability possible.
2. Increasing life expectancy: Ecopreneurs value life, not only their own and of
family members, but of the whole humanity. They want everyone to live a longer and
 healthier life, that is why they develop products and ways to increase life expectancy
such as healthier food, purified water etc.
3. Climate Change: Climate shapes the way we live on this planet and the way we live;
work and play are advertently changing the climate. The pollutants released in the air due
to the use of fossil fuels is adversely affecting the climate. In order to sustain the climate,
ecopreneurs are involved in finding alternate ways to produce energy such as using wind,
water and solar energy.
4. Resource Scarcity: The diminishing natural resources are a great issue as we will be
left with no natural resources if we do not sustain them. In order to sustain them,
ecopreneurs constantly look for alternatives by recycling them or using a cheaper,
abundantly available resource if possible.
5. Lack of equity in the world: The people of the world are living a continuum, with
one end which has all the facilities of the world including the best quality food, water
and home, while on the other end are people who do not even have the basic necessities
of life. Ecopreneurs wan to make sure that every living being on the world is treated
equally so that no one is deprived of anything. That is why they are active members if
movements such as WTO and also find ways to produce goods and services affordable
by everyone. They are also involved in philanthropic acts such as giving charity
donations to help the deprived people of the society.
International Business Opportunities: The following are the various opportunities
for international business:

1. Exporting: Exporting means producing/procuring in the home market and selling

in the foreign market. Exporting is not an activity just for large multinational
enterprises; small firms can also make money by exporting. In recent days, exporting
has become easier though it remains a challenge for many firms.
2. Licensing: A licensing is an agreement whereby a licensor grants the rights to
intangible property (patents, inventions, formulas, processes, designs, copyrights, and
trademarks) to another entity (licensee) for a specified period and in return, the
licensor receives a royalty/fee from the licensee.
3. Franchising: Franchising is basically o specialized form of licensing in which the
franchiser not only sells the intangible property to the franchisee but also insists that
the franchisee agrees to abide by strict rules as to how it does business.
4. Joint venture: A joint venture entails establishing a firm that is jointly owned by
two or more independent firms.
5. Management Contracts: A firm in one country agrees to operate facilities or
provide other management services to a firm in another country for an agreed-upon
fee.
6. Turnkey projects: In a turnkey project, the contractor agrees to handle every
detail of the project for a foreign client, including the training of operating personnel.
At completing the contract the foreign client handles the ‘key’ of a plant that is ready
for full operation
7. Strategic international alliances: A strategic international alliance is a
business relationship established by two or more companies to cooperate out of
mutual need and to share risk in achieving a common objective.
8. Direct foreign investment: Direct foreign investment is another important form
of international business. Companies may manufacture locally to capitalize on low-
cost labor, to avoid high import taxes, to reduce the high cost of transportation to
market, to gain access to raw materials, or to gain market entry.