ASSIGNMENT
1                                                                                                                           
                                                                      B.P.E.M                                                                   
                                                                    
Question and Answers: - 
Q1. Define  entrepreneur and explain the different types of  entrepreneurs?   
Ans.:  
Entrepreneur: -  
An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying
most of the rewards. The entrepreneur is commonly seen as an innovator, a source of new ideas,
goods, services, and business/or procedures. 
Meaning: -  
The entrepreneur is defined as someone who has the ability and desire to establish, administer and
succeed in a startup venture along with risk entitled to it, to make profits. The best example of
entrepreneurship is the starting of a new business venture. The entrepreneurs are often known as a
source of new ideas or innovators, and bring new ideas in the market by replacing old with a new
invention. 
It can be classified into small or home business to multinational companies. In economics, the profits
that an entrepreneur makes is with a combination of land, natural resources, labor and capital. 
   In a nutshell, anyone who has the will and determination to start a new company and deals with all the
risks that go with it can become an entrepreneur. Listed below are few types of entrepreneurs. 
Types of entrepreneurs are: - 
 Small Business Entrepreneurship: - 
Small business entrepreneurship is the idea of opening a business without turning it into a large
conglomerate or opening many chains. A single-location restaurant, one grocery shop, or a retail
shop to sell your handmade goods would all be an example of small business entrepreneurship.
These individuals usually invest their own money and succeed if their business turns a profit, which
they live off of. They don't have outside investors and will only take a loan if it helps continue the
business. 
 
 Scalable Startup: - 
These are companies that start with a unique idea; think Silicon Valley. The hopes are to innovate
with a unique product or service and continue growing the company, continuously scaling up as time
moves on. These types of companies often require investors and large amounts of capital to grow
their idea and reach multiple markets. 
 Large Company: - 
Large company entrepreneurship is a new business division created within an existing company. The
existing company may be well placed to branch out into other sectors or it may be well placed to
become involved in new technology. CEOs of these companies either foresee a new market for the
company or individuals within the company generate ideas that they bring to senior management to
start the process. 
 
 Social Entrepreneurship: - 
The goal of social entrepreneurship is to create a benefit to society and humankind. They focus on
helping communities or the environment through their products and services. They are not driven by
profits but rather by helping the world around them. 
 
  
Q2. Explain the internal and external factor of entrepreneur motivation? 
Ans: - 
Motivation: - 
 Motivation is an inner spirit that activates and direct our behavior towards our goal. 
 
Internal Factor of Entrepreneur is: - 
1. Desire to do something new. 
2. Become independent. 
3. Achieve what one wants to have in life. 
4. Be recognized for one’s contribution. 
5. One’s educational background. 
6. One’s occupational background and experience in the relevant field. 
 
External Factors of Entrepreneur is: - 
1. Government assistance and support. 
2. Availability of labor and raw material. 
3. Encouragement from big business houses. 
4. Promising demand for the product. 
 
Q3. What are the problems of starting a new venture? How can it be solved? 
Ans: - 
The problems of starting a new Venture are: - 
1.Poor Market Research: - 
You have a brilliant idea, but without a proper market-research backing, your launch and growth
strategy might be adversely impacted. Before investing, do a little market research: find out the size of
your target market, existing competition, and viability of your product/service in current market
conditions. 
2.Lack of proper Business Plan: - 
Writing a proper business plan will help you with: - 
 Focus the mission and vision of your business. 
 Highlight the customer problem your business is solving. 
 Define the target customer and market opportunity. 
 Outline how the business will run. 
 What the budget should be and realistically project how much money the business
will potentially make. 
 Don’t rush into new markets without a clear focus and a good business plan based on
solid market research and competitive analysis. 
 
3.Poor Marketing Strategy: -  
Once you have defined your target market, you need to devise an effective marketing strategy. Print
advertisements, TV and radio commercials could be costly for you at this stage when you are just
starting. If you believe that your potential customers can be targeted online, then reach out to them
through social media marketing or user-generated review sites. 
        For a non-social network audience, ads in the cable TV, hand-outs with local newspapers and
pamphlets displayed in local prominent stores/restaurants can be very effective. Assess the options
that will work the best for you. 
4.Cash Flow: -  
The majority of small businesses fail due to a cash crunch. A common mistake that most entrepreneurs
make is to assume immediate profitability that results either in the risk of raising insufficient capital
 or investing heavily (and often unnecessarily) in luxuries like premium-priced office furniture, top-of-
the-line computer and telephone systems, hiring more employees than needed etc. 
Being optimistic is good, but be cautious about spending unnecessarily and start saving for a rainy day
like slow sales, market recession and slow/bad debts. Keep in mind, even during cash flow problems
you will still have employees and suppliers to pay. 
5.Pricing: -  
One of the most common problems of new businesses is that they offer lower prices to beat the
competition. Large companies cut costs by purchasing in bulk and through exclusive supplier
contracts and better logistic planning. Therefore, these companies can offer rock-bottom prices for
their goods and services. It’s useless to compete with them by slashing your prices as it will only eat
up your profits. Instead, concentrate on offering fair market value for your products, providing
excellent customer service and better marketing. 
6.Maintaining Work-Life Balance: - 
A start-up is a serious commitment. Most entrepreneurs are seen working around-the-clock to cater to
the overwhelming demands of the business. This stress often spreads into your personal life adding
additional pressures. Remember, your family and friends are your support group who will see you
through the tough times. It’s a good idea to make a work schedule and strictly adhere to it to strike the
right balance between your work and personal life. 
 
7.Organizing the Company: -  
It might be regarding the process of business set up, choosing a good location for your business, or
taking into account applying and obtaining special permits/licenses to run your business; they all sum
up to how you have perceived your business concept and organized your priorities. You can always
avoid these problems by consulting a mentor, hiring people or buying programs that can help you
organize. 
While there are many potential pitfalls, how you handle those problems will codify your
entrepreneurial skills and business acumen. The best solution is to take the time to do proper research
and planning when setting up your business to avoid most of the common issues. 
 
 
 
 
 
Solutions for the problems to start a new Venture are: - 
 
1. Market Research: - 
 Before launching the business, it is important for startups to carry out a thorough research by
investigating from suppliers to taxes to competitor prices. This approach is the bedrock for a
successful business, which needs to be viewed in holistic way so that vision for the product is aligned
with the identified target audience. Writing effective SBA business plan helps startups to define what
their business is, the market it serves, how it will conduct operations, and the money it will make and
spend. 
 
2.Lack of proper Business Plan: - 
Today’s digital technology has opened a broad spectrum of avenues for marketing in the form of
electronic, print, online, mobile, and video advertising. Startups more than ever need to be adept at
creating innovative marketing plans, placing advertisements, and letting people know the worth of
their products or services. To put it simply, a good marketing strategy has vision, mission, and
business goals. It should be able to explain the position and role of a business’s products or services in
the market. Proper marketing strategy fundamentally entails efficiency with which customers are
 approached and encouraged their future loyalty towards the product or service. Technology giant
Apple Inc. is successful because of its unique marketing strategy that makes its products user friendly
and highly intuitive. Steve Jobs had the vision that people will not use Apple’s products, they will
experience them. 
 
3.Cash Flow: - 
As a rule of thumb, startups should always find ways of minimizing their costs. Invoice factoring is
another way of speeding up the account receivable processes in startups. In this digital age when
invoice payments are made through mobile phones, there is no harm to request immediate payments
from clients. It is also very important to secure credit before any business needs it as they can easily
find out how much cash they will likely need to survive. Finally, using accounting software to keep
tab on money coming in and out of the business is also a good idea. 
 
4.Company Members: - 
A dedicated team with a diverse skill set is very important for the startups to grow and succeed. There
should be a proper synergy, coordination, and communication among the members of a team. Any
team is formed by the individuals who have different range of capabilities with identical focus. This
arrangement allows the members to help each other, learn from each other, and put a concerted effort
in order to achieve success. Diversity and dedication of a team drives innovation. 
 
5.Competition: - 
The good thing of competition is that it forces the businesses to come out with the best. There is, in
fact, a whole gamut of opportunities exists for entrepreneurs because switching costs for most
customers are low and many are willing to try new, relatively untested products or services. To
overcome competition, startups should research and analyze their niche industry; should be unique and
different in approach; and should be able to create, implement, and track their business and marketing
plan. 
The challenges and problems are inevitable as far as the success journey of a startup is concerned.
They need to be resilient and focused towards keeping their values intact no matter what the
circumstances are. It is, therefore, to anticipate difficulties and pitfalls beforehand. 
Q4. What do you mean by Business plan? Explain the benefits of developing a business plan? 
Ans: -  
Business Plan: - 
A written document describing the nature of the business, the sales and marketing strategy, and the
financial background, and containing a projected profit and loss statement. 
Meaning: - 
A business plan is also a road map that provides directions so a business can plan its future and helps it
avoid bumps in the road. The time you spend making your business plan thorough and accurate, and
keeping it up-to-date, is an investment that pays big dividends in the long term. 
Your business plan should conform to generally accepted guidelines regarding form and content. Each
section should include specific elements and address relevant questions that the people who read your
plan will most likely ask. 
Operating without a business plan is not usually a good idea. In fact, very few companies are able to
last very long without one. There are definitely more benefits to creating and sticking to a good
business plan—including being able to think through ideas without putting too much money into them
and, ultimately, losing in the end. 
A good business plan should outline all the projected costs and possible pitfalls of each decision a
company makes. Business plans, even among competitors in the same industry, are rarely identical.
But they all tend to have the same basic elements, including an executive summary of the business and
 a detailed description of the business, its services, and its products. It also states how the business
intends to achieve its goals. 
The plan should include at least an overview of the industry of which the business will be a part, and
how it will distinguish itself from its potential competitors. 
Benefits of Business Plan is: - 
1.See the whole business: - 
Business planning done right connects the dots in your business so you get a better picture of the
whole. Strategy is supposed to relate to tactics with strategic alignment. Does that show up in your
plan? Do your sales connect to your sales and marketing expenses? Are your products right for your
target market? Are you covering costs including long-term fixed costs, product development, and
working capital needs as well? Take a step back and look at the larger picture. 
2.Strategic Focus: -  
Startups and small business need to focus on their special identities, their target markets, and their
products or services tailored to match. 
3.Set priorities: -  
You can’t do everything. Business planning helps you keep track of the right things, and the most
important things. Allocate your time, effort, and resources strategically. 
4.Manage change: - 
With good planning process you regularly review assumptions, track progress, and catch new
developments so you can adjust. Plan vs. actual analysis is a dashboard, and adjusting the plan is
steering. 
5.Develop accountability: -  
Good planning process sets expectations and tracks results. It’s a tool for regular review of what’s
expected and what happened. Good work shows up. Disappointments show up too. A well-run
monthly plan review with plan vs. actual included becomes an impromptu review of tasks and
accomplishments. 
6.Manage cash: - 
 Good business planning connects the dots in cash flow. Sometimes just watching profits is enough.
But when sales on account, physical products, purchasing assets, or repaying debts are involved, cash
flow takes planning and management. Profitable businesses suffer when slow-paying clients or too
much inventory constipate cash flow. A plan helps you see the problem and adjust to it. 
7.Strategic alignment: -  
Does your day-to-day work fit with your main business tactics? Do those tactics match your strategy?
If so, you have strategic alignment. If not, the business planning will bring up the hidden mismatches.
For example, if you run a gourmet restaurant that has a drive-through window, you’re out of
alignment. 
8.Milestones: - 
 Good business planning sets milestones you can work towards. These are key goals you want to
achieve, like reaching a defined sales level, hiring that sales manager, or opening the new location.
We’re human. We work better when we have visible goals we can work towards. 
9.Metrics: - 
 Put your performance indicators and numbers to track into a business plan where you can see them
monthly in the plan review meeting. Figure out the numbers that matter. Sales and expenses usually
do, but there are also calls, trips, seminars, web traffic, conversion rates, returns, and so forth. Use
your business planning to define and track the key metrics. 
10.Realistic regular reminders to keep on track.: - 
 We all want to do everything for our customers, but sometimes we need to push back to maintain
quality and strategic focus. It’s hard, during the heat of the everyday routine, to remember the
priorities and focus. The business planning process becomes a regular reminder. 
 
  
 
Q5. What  do you mean by Environment scanning? Explain the benefit of Environment scanning? 
Ans: 
Environment Scanning: - 
A process of gathering, analyzing, and dispensing information for tactical or strategic purposes. The
environmental scanning process entails obtaining both factual and subjective information on the
business environments in which a company is operating or considering entering 
Meaning: - 
In any business organization, there is an internal and external environment. They comprise all the
factors that can affect the business of a company in any way. And they also present opportunities for
the business to grow and threats that may harm the business. So, these environments need constant
monitoring. This is where environmental scanning comes into the picture. 
Environmental scanning meaning is the gathering of information from an organizations internal and
external environment, and careful monitoring of these environments to identify future threats and
opportunities. It is the analyses of all factors that may affect the future of the organization. 
Now that we know the environmental scanning meaning, let us see the purpose. The purpose of this
process of environmental scanning is to provide the entrepreneur with a roadmap to the changes
likely to happen in the future. So, this way they can adapt the business to overcome the threats and
capitalize on the opportunities coming their way. 
Benefits of Environment Scanning are: - 
1. HELPS IN ACHIEVING OBJECTIVES: - 
When a company neglects to adjust its strategy to the business environment, or does not react to the
demands of the environment by changing its strategy, the company cannot achieve success in
attaining its objectives. However, environmental analysis enables the business enterprises to study
the environment and formulate the strategies accordingly, which will result in successful attainment
of objectives. 
2. IDENTIFICATION OF THREATS: - 
Business Environment analysis and diagnosis give businessmen time to anticipate opportunities and
to plan to take optional response to these opportunities. It also helps strategies to develop an early
warning system to prevent threats or to develop strategies, which can turn a threat to the firm’s
advantage. 
3. HAPPENINGS IN THE MARKET PLACE: - 
Every firm should be in constant touch with the market place and should be aware of what is
happening in the marketplace. If the company fails to adjust or react to the demands of the
environment, by changing their strategies, it can’t achieve corporate objectives. 
4. THREATS INHERENT IN ANY OPPORTUNITY: - 
Business Environmental diagnosis helps the businessmen in two ways. 1. He can ascertain the
possible threats to the business. This will enable him to take proper preventive measures. 2. He can
identify the opportunities and avenues in which the businessman can operate successfully and
achieve the object. 
5. FORECASTING THE FUTURE: - 
Changes in the environment are often frequent and all of a sudden. Moreover, such changes cannot
be predicted precisely well in advance. Again, the entrepreneur can anticipate only a few of such
changes and not all. If the anticipations and expectations are precise and accurate, the decisions are
likely to be better. Hence business environment analysis helps to forecast the future prospects of the
business concern. 
6. THREATS AND OPPORTUNITIES: - 
Some factors of the environment present threats to the company’s present strategy and the
accomplishment of the objectives. While some factors, on the other hand, present greater
 opportunities for a great accomplishment of the objectives. A thorough analysis of the environmental
factors shall enable the analyst to recognize the inherent risk involved and also enable him to take
advantage of the opportunities. 
In every threat there is an opportunity and, in every opportunity, there is a threat. By properly
analyzing the environment and anticipating the changes likely to occur in the environment, the
business manager can estimate the future and adjust his plans accordingly. Of course, not all the
future events can be anticipated but some can and are, the extent to which the expectations are
accurate, managerial decisions are likely to be better. Moreover, the process of environmental
analysis reduces the time pressures on a few which are not anticipated. 
Q6. Explain the different stages in a new product development? 
Ans: 
Product Development: - 
 It is the process of bringing a new product to the marketplace. ... Innovative businesses thrive by
understanding what their market wants, making smart product improvements, and developing new
products that meet and exceed their customers' expectations. 
 
The Steps are: - 
1.Idea generation: -  
The new product development process starts with idea generation. Idea generation refers to the
systematic search for new-product ideas. Typically, a company generates hundreds of ideas, maybe
even thousands, to find a handful of good ones in the end. Two sources of new ideas can be
identified: 
 Internal idea sources: the company finds new ideas internally. That means R&D, but
also contributions from employees. 
 External idea sources: the company finds new ideas externally. This refers to all kinds
of external sources, e.g., distributors and suppliers, but also competitors. The most important
external source are customers, because the new product development process should focus
on creating customer value. 
 
2.Idea screening: - 
The next step in the new product development process is idea screening. Idea screening means nothing
else than filtering the ideas to pick out good ones. In other words, all ideas generated are screened to spot
good ones and drop poor ones as soon as possible. While the purpose of idea generation was to create a
large number of ideas, the purpose of the succeeding stages is to reduce that number. The reason is that
product development costs rise greatly in later stages. Therefore, the company would like to go ahead
only with those product ideas that will turn into profitable products. Dropping the poor ideas as soon as
possible is, consequently, of crucial importance. 
3.CONCEPT DEVELOPMENT AND TESTING: -  
To go on in the new product development process, attractive ideas must be developed into a product
concept. A product concept is a detailed version of the new-product idea stated in meaningful
consumer terms. You should distinguish 
 A product idea à an idea for a possible product 
 A product concept à a detailed version of the idea stated in meaningful consumer
terms 
 A product image à the way consumers perceive an actual or potential product. 
4.MARKETING STRATEGY DEVELOPMENT: -  
The next step in the new product development process is the marketing strategy development. When a
promising concept has been developed and tested, it is time to design an initial marketing strategy for
the new product based on the product concept for introducing this new product to the market. 
The marketing strategy statement consists of three parts and should be formulated carefully: 
  A description of the target market, the planned value proposition, and the sales,
market share and profit goals for the first few years 
 An outline of the product’s planned price, distribution and marketing budget for the
first year 
 The planned long-term sales, profit goals and the marketing mix strategy. 
5.BUSINESS ANALYSIS  
Once decided upon a product concept and marketing strategy, management can evaluate the business
attractiveness of the proposed new product. The fifth step in the new product development process
involves a review of the sales, costs and profit projections for the new product to find out whether
these factors satisfy the company’s objectives. If they do, the product can be moved on to the product
development stage. 
In order to estimate sales, the company could look at the sales history of similar products and
conduct market surveys. Then, it should be able to estimate minimum and maximum sales to assess
the range of risk. When the sales forecast is prepared, the firm can estimate the expected costs and
profits for a product, including marketing, R&D, operations etc. All the sales and
costs figure together can eventually be used to analyses the new product’s financial attractiveness. 
6.PRODUCT DEVELOPMENT: - 
The new product development process goes on with the actual product development. Up to this
point, for many new product concepts, there may exist only a word description, a drawing or perhaps
a rough prototype. But if the product concept passes the business test, it must be developed into a
physical product to ensure that the product idea can be turned into a workable market offering. The
problem is, though, that at this stage, R&D and engineering costs cause a huge jump in investment. 
The R&D department will develop and test one or more physical versions of the product concept.
Developing a successful prototype, however, can take days, weeks, months or even years, depending
on the product and prototype methods. 
Also, products often undergo tests to make sure they perform safely and effectively. This can be
done by the firm itself or outsourced. 
In many cases, marketers involve actual customers in product testing. Consumers can evaluate
prototypes and work with pre-release products. Their experiences may be very useful in the product
development stage. 
7.Test marketing: - 
The last stage before commercialization in the new product development process is test marketing. In
this stage of the new product development process, the product and its proposed
marketing programmed are tested in realistic market settings. Therefore, test marketing gives the
marketer experience with marketing the product before going to the great expense of full
introduction. In fact, it allows the company to test the product and its entire marketing programmed,
including targeting and positioning strategy, advertising, distributions, packaging etc. before the full
investment is made. 
The amount of test marketing necessary varies with each new product. Especially when introducing a
new product requiring a large investment, when the risks are high, or when the firm is not sure of the
product or its marketing programmed, a lot of test marketing may be carried out. 
8.COMMERCIALISATION: - 
Test marketing has given management the information needed to make the final decision: launch or
do not launch the new product. The final stage in the new product development process
is commercialization. Commercialization means nothing else than introducing a new product into the
market. At this point, the highest costs are incurred: the company may need to build or rent a
manufacturing facility. Large amounts may be spent on advertising, sales promotion and other
marketing efforts in the first year. 
Q7. Explain the concept of Marketing Mix and 4P’s of Marketing Mix? 
Ans: 
 Marketing Mix: - 
The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or
product in the market. The 4Ps make up a typical marketing mix - Price, Product, Promotion and
Place. However, nowadays, the marketing mix increasingly includes several other Ps like Packaging,
Positioning, People and even Politics as vital mix elements. 
 
The 4P’s of Marketing Mix are: - 
1.PRODUCT: - 
Product refers to a good or service that a company offers to customers. Ideally, a product should
fulfill an existing consumer demand. Or a product may be so compelling that consumers believe they
need to have it and it creates a new demand. To be successful, marketers need to understand the life
cycle of a product, and business executives need to have a plan for dealing with products at every
stage of their life cycle. The type of product also partially dictates how much businesses can charge
for it, where they should place it, and how they should promote it in the marketplace. 
Many of the most successful products have been the first in their category. For example, Apple was
the first to create a touchscreen smartphone that could play music, browse the Internet, and make
phone calls. As of November 2018, Apple stopped providing public sales figures for the iPhone.
However, as of November 1, 2018, total sales of the iPhone equaled $2.2 billion. Apple revealed that
it had sold its one billionth iOS device on November 22, 2014. And in 2018, the company announced
they were approaching selling their two billionth iOS device.12 
2.PRICE: - 
Price is the cost consumers pay for a product. Marketers must link the price to the product's real and
perceived value, but they also must consider supply costs, seasonal discounts, and competitors'
prices. In some cases, business executives may raise the price to give the product the appearance of
being a luxury. Alternatively, they may lower the price so more consumers can try the product. 
Marketers also need to determine when and if discounting is appropriate. A discount can sometimes
draw in more customers, but it can also give the impression that the product is less exclusive or less
of a luxury compared to when it is was priced higher. 
UNIQLO, headquartered in Japan, is a clothing manufacturer of global casual wear. Like its
competitors—other famous causal wear brands such as Gap and Zara—UNIQLO creates low-price,
daily-use garments. 
What makes UNIQLO unique is that it creates innovative, high-quality products. It is able to
accomplish this by procuring its fabric from its material manufacturer partners, securing stable, high-
quality materials at low cost by ordering in large volumes, and continuously seeking the highest-
quality and lowest-cost material in the world. The company also directly negotiates with its
manufacturers and has built strategic partnerships with high-quality and innovative Japanese
manufacturers. 
UNIQLO also outsources its production to partner factories; because it doesn't own its own factories,
it has the flexibility to change production partners if the best production location changes over time.
Finally, the company employs a team of skilled textile artisans that it sends to its partner factories all
over the world for quality control. In addition, production managers visit factories once a week to
resolve quality problems.3 
3.PLACE: -  
When a company makes decisions regarding place, they are trying to determine where they should
sell a product and how to deliver the product to the market. The goal of business executives is always
to get their products in front of the consumers that are the most likely to buy them. 
In some cases, this may refer to placing a product in certain stores, but it also refers to the product's
placement on a specific store's display. In some cases, placement may refer to the act of including a
product on television shows, in films, or on web pages in order to garner attention for the product. 
 The 1995 movie Goldeneye was the seventeenth installment in the James Bond movie franchise. It
was the first Bond movie not to feature an Aston Martin car. Instead, the British actor
Pierce Bresnan got into a Z3 by BMW. Although the Z3 was not released until months after the film
had left theaters, BMW received 9,000 orders for the car the month after the movie opened.4 
4.PROMOTION: - 
PROMOTION INCLUDES ADVERTISING, PUBLIC RELATIONS, AND PROMOTIONAL STRATEGY. THE GOAL
OF PROMOTING A PRODUCT IS TO REVEAL TO CONSUMERS WHY THEY NEED IT AND WHY THEY
SHOULD PAY A CERTAIN PRICE FOR IT. 
Marketers tend to tie promotion and placement elements together so they can reach their core
audiences. For example, In the digital age, the "place" and "promotion" factors are as much online as
they are offline. Specifically, where a product appears on a company's web page or social media, as
well as which types of search functions trigger corresponding, targeted ads for the product. 
The Swedish vodka brand Absolut sold only 10,000 cases of its vodka in 1980. But by 2000, the
company had sold 4.5 million cases, thanks in part to its iconic advertising campaign. The images in
the campaign featured the brand's signature bottle styled as a range of surreal images: a bottle with a
halo, the bottle made of stone, or as the outline of trees on a ski slope. To date, this Absolut
advertising campaign is one of the longest-running continuous ad campaigns of all time, from 1981
to 2005. 
Q8. Define Social Entrepreneur and their characteristics? 
Ans: 
Social Entrepreneur:- 
A social entrepreneur is someone who has decided to turn his or her entrepreneurial bent onto the
social realm, to undertake an initiative that will benefit the greater number of people, not just a few
shareholders or stakeholders. 
 
The Characteristics are:- 
1.Healthy Impatience:- 
A social entrepreneur shows a healthy impatience with the way things are, according to Duke
University’s Fuqua School of Business, in a report by its Center for Advancement of Social
Entrepreneurship. 
CASE notes that socially minded entrepreneurs want to change things right away, know it can be
done, and are sometimes frustrated that bureaucracy and the lack of political will, among others,
impede on social changes that could benefit the masses. 
2.Zeal:- 
Socially oriented entrepreneurs interlock zeal and passion, especially at the initial stages of a short-
term project or long-term initiative. They tend to believe wholeheartedly in their projects, and
therefore it is not unusual for them to log 80-hour weeks. 
This characteristic is also seen in business entrepreneurs, who initially work tirelessly on their
initiatives. 
3.The desire to Change Others:- 
At the core of every social entrepreneur is an unwavering willingness to change others, especially
people with whom he or she works. 
That desire to alter mindsets also extends to people in power, as seen, for example, in the case of
Mohammed Yunus, the founder of the Grameen Bank, which did so much to revolutionize the world
of microfinance and enable lending to previously disenfranchised populations. 
4.Commitment to Improve Social Welfare:- 
Social entrepreneurs are socially committed first and foremost – that is a no-brainer. 
But what differentiates them from, say, a company engaging in CSR, is their ability to fully devote
their time, energy and meager resources to make sure things actually change for the better. 
 A business can use corporate social responsibility (CSR) – which entails everything from charitable
donations to community work – to improve social welfare, but critics also point out that some for-
profit entities use CSR as a public-relations tool. 
5.Innovation:- 
Innovation is present in the minds of successful social entrepreneurs. They embrace technology fully,
finding new ways to make things, deliver products and services, heal people, improve their lives…
you name it. 
The idea is to use expertise and competence acquired in the business world to change mindsets and
improve or save the lives of millions around the world. 
6.Practicality When Solving Problems:- 
Social entrepreneurship has no profit motive, but that does not mean social entrepreneurs don’t pay
attention to budgetary constraints. 
In fact, they do – and most of them always seek effective and efficient ways to operate their
organizations. They have to, otherwise, they will vanish as fast as they appear on their social and
economic landscape. 
The bottom line is that competent social entrepreneurs find smart ways to solve problems without
breaking their bank – which, again, is not really the case because they don’t have that much money
to start with, and therefore there is no real bank. 
7.Risk Taking:- 
Risk taking is essential in social entrepreneurship – and in any kind of entrepreneurship, for that
matter. 
It takes a special mindset to wake up one day and say you want to change things in this world. The
risk becomes even greater if you have no money, don’t have a posh social background, leave your
day job, or embark on a project that could cost you your livelihood…or even your life. 
8.Philanthropic Bent:- 
A social entrepreneur generally has a philanthropic bent, meaning he or she is not necessarily driven
by money or fame. 
Also, he or she tends to distribute whatever profits are made to the socially disadvantaged, or
reinvest the excess cash in the organization. 
The idea is to grow the entity by enlisting more people, so more people can be positively affected,
more lives can be saved, and much more social value can be created in the long term. 
9.Lack of Megalomania:- 
This characteristic is similar to the previous one. 
Social entrepreneurs don’t always a megalomaniac personality, imbued with themselves or their
work. They care deeply about their cause, otherwise, they would not risk everything to pursue it in
the first place. 
But there is no “me, me, always me” drive here, a desire to shine always and everywhere. The
charitable cause being the most important thing, these entrepreneurs don’t have a problem letting
others shine, especially their team members or others involved in local projects. 
10.Faith in Team Work:- 
Teamwork is essential for social entrepreneurs. In a sector in which there often is not enough money,
resources or expertise, the only resources available are people – and time, if you can call it a
resource. 
Therefore, social entrepreneurship revolves around the concept of crowdsourcing, tapping into a
team of faithful workers along with volunteers scattered around the world to identify worthy
projects, fund them and undertake them. 
Q9.Explain  the role and function of National Institute for entrepreneurship and small business
development? 
Ans: 
The National Institute for Entrepreneurship and Small Business:- 
 The National Institute for Entrepreneurship and Small Business Development is a premier
organization of the Ministry of Skill Development and Entrepreneurship, engaged in training,
consultancy, research, etc. in order to promote entrepreneurship and Skill Development. 
The role of National Institute for Entreprenurship and small business is:- 
1. To standardize and systemize the processes of selection, training, support and
sustenance of potential and existing entrepreneurs. 
 
2. To support and motivate institutions/organizations in carrying out training and other
entrepreneurship development related activities. 
 
3. To serve as an apex national level resource institute for acelarating as well as
enhancing the process of entrepreneurship development, to measure the impact of the same
within different strata of the society. 
 
4. To provide vital information and support to trainers, promoters and
entrepreneurs by organizing research and documentation activities relevant to
entrepreneurship and skill development. 
 
5. To create a holistic environment to train the trainers, promoters and
consultants in diverse areas of entrepreneurship and skill Development. 
 
6. To offer consultancy nationally/internationally for promotion of entrepreneurship
and small business development at national and international level. 
 
7. To provide national/international forums for interaction and exchange of
ideas for policy formulation and its refinement at various levels. 
8. To share experience and expertise in entrepreneurship development across national
frontiers to create awareness on it at national level. 
9. To interchange international experience and expertise in the field of
entrepreneurship development for mapping its development at international levels too. 
The Function of National Institute for Entrepenurship and small Business 
 
1. To standardize and systemize the processes of selection, training, support and
sustenance of potential and existing entrepreneurs. 
 
2. To support and motivate institutions/organizations in carrying out training and other
entrepreneurship development related activities. 
 
3. To serve as an apex national level resource institute for acelarating as well as
enhancing the process of entrepreneurship development, to measure the impact of the same
within different strata of the society. 
 
4. To provide vital information and support to trainers, promoters and
entrepreneurs by organizing research and documentation activities relevant to
entrepreneurship and skill development. 
 
5. To create a holistic environment to train the trainers, promoters and
consultants in diverse areas of entrepreneurship and skill Development. 
 
 6. To offer consultancy nationally/internationally for promotion of entrepreneurship
and small business development at national and international level. 
 
7. To provide national/international forums for interaction and exchange of
ideas for policy formulation and its refinement at various levels. 
 
8. To share experience and expertise in entrepreneurship development across national
frontiers to create awareness on it at national level. 
 
9. To interchange international experience and expertise in the field of
entrepreneurship development for mapping its development at international levels too. 
 
 
 
 
 
Q10.Define Business Ethics? Explain the approach to managing Ethics? 
Ans: 
Business Ethics:- 
Business ethics is the study of appropriate business policies and practices regarding potentially
controversial subjects including corporate governance, insider trading, bribery, discrimination,
corporate social responsibility, and fiduciary responsibilities. The law often guides business ethics,
but at other times business ethics provide a basic guideline that businesses can choose to follow to
gain public approval. 
Meaning:- 
Business ethics concerns ethical dilemmas or controversial issues faced by a company. Often,
business ethics involve a system of practices and procedures that help build trust with the consumer.
On one level, some business ethics are embedded in the law, such as minimum wage, insider trading
restrictions, and environmental regulations. On the other hand, business ethics can be influenced by
management behavior, with wide-ranging effects across the company. 
Example:- 
Consider an employee who is told in a meeting that the company will face an earnings shortfall for
the quarter. This employee also owns shares in his firm. It would be unethical for the employee to
sell his shares, since he was subject to insider information. Alternatively, if two large competitors
came together to gain an unfair advantage, such as controlling prices in a given market, this would
raise serious ethical concerns. 
The approach to managing Ethics are:- 
1.Utilitarian approach:- 
In this approach, managers analyse the effects of decisions on people affected by these decisions.
The action rather than the motive behind the action is the focus of this approach. Positive and
negative results are weighed and managerial actions are justified if positive effects outweigh the
negative effects. Pollution standards and analysing the impact of pollution on society is
management ethics code under utilitarian approach. 
2.Moral rights approach:- 
In this approach, managers follow ethical code which takes care of fundamental and moral rights of
human beings; the right to speech, right to life and safety, right to express feelings etc. In the
context of business organisations, managers disclose information in the annual reports necessary for
welfare of the people concerned. The nature, timing and validity of information is taken into
account while reporting information in the annual reports. 
3.Social justice approach:- 
According to this approach, managers’ actions are fair, impartial and equitable to all individuals and
groups. Employees are not distinguished on the basis of caste, religion, race or gender though
distinction on the basis of abilities or production is justified. For example, all employees, males or
females with same skills should be treated at par but it is justified to treat employees who produce
more differently from those who produce less.