Q.1.a) Explain the concept of Entrepreneurship? What are the barriers to the Entrepreneurship?

Ans:

Concept of Entrepreneurship:

Entrepreneurship is the dynamic process of creating incremental wealth. This wealth is created by
individuals who assume the major risks in terms of equity, time, and/or career commitment of
providing value for some product or service. The product or service itself may or may not be new or
unique but value must somehow be infused by the entrepreneur by securing and allocating the
necessary skills and resources. Also, it was generally recognized that entrepreneurs serve as agents
of change, provide creative, innovative ideas for business enterprises and help businesses grow and
become profitable. Whatever the specific activity they engage in, entrepreneurs in the twenty-first
century are considered the heroes of free enterprise. Many of them have used innovation and
creativity to build huge enterprises. Entrepreneurship is now regarded as “Pioneer ship” of
business. The history of the early industrial development and trade and subsequent innovation in
any country is largely the history of its entrepreneurs. It describes people with the pioneering spirit,
intuitive and inspiration and a willingness to work hard and take risks. They are the energetic self-
starters who make it their mission to meet business challenges, independently and are restless in
working for someone else, for a salary.

In a nutshell, concept of entrepreneurship can be understood as under:

(i) Entrepreneurship involves decision making, innovation, implementation, forecasting of the

future, independency, and success.

(ii) Entrepreneurship is a discipline with a knowledge base theory and is an outcome of

complex socio-economic, psychological, technological, legal and other factors.

(iii) It is a dynamic and risky process.

(iv) It involves a fusion of capital, technology and human talent.

(v) Entrepreneurship is equally applicable to big and small businesses, to economic and non-

economic activities.

(vi) Different entrepreneurs might have some common traits but all of them will have some
different and unique qualities.

(vii) Entrepreneurship is a process. It is not a combination of some stray incidents.

(viii) It is the purposeful and organized search for change, conducted after systematic analysis of
opportunities in the environment.

(ix) Entrepreneurship is a philosophy and is the way one thinks, one acts and therefore it can exist
in any situation, be it business or government or in the field of education, science & technology.

(x) Entrepreneurship is a creative activity.

(xi) It is the ability to create and build something from practically nothing.

(xii) It is a knack of sensing opportunity where others see chaos and confusion.

(xiii) Entrepreneurship is the attitude of mind to seek opportunities, take calculated risks and derive
benefits by setting up a venture.

(xiv) It is made up of activities to conceive, create and run an enterprise.

(xv) Entrepreneurship is a dynamic process of vision, change and creation.

Barriers to the Entrepreneurship:

i) Finance

We are all bustling with ideas that are unique and can make for an amazing business start-up. But
no matter how good your idea is, you will always need stable finances and funding from the
investors to begin the process and take the first step towards your journey of entrepreneurship.

And getting a sound financial investment or funding can be one of the biggest Barriers to
Entrepreneurship as many of banks, private investors, angel investors, and organizations find it
quite difficult to believe in the start-up ideas owing to the risk of failure and losing their money.

ii) Fear of not to be a success

We all go through the fear of failure. And if the fear is associated with the risks and stakes taken in
the stream of business and entrepreneurship, the level of fear elevates There is a fear if we are on
the right track, is the idea worthwhile, will there be profit, will I find investors, and various such
fears and tensions act as the Barriers to Entrepreneurship.

iii) No strategic plan in place

Lack of proper planning and strategy in place is one of the most common Barriers to

Entrepreneurship. Many of us think to build a business out of a hobby without having any sort of
long term and short term vision and plan in mind.

Running a fully-fledged business or being an entrepreneur requires a huge amount of skill set,
passion for excelling, strategic vision, the mission to accomplish the goals, market research, and a
lot more.

Right from the target market, finances, human resources, to a proper strategic plan is required to
build a successful business or a brand in the market.

iv) Human resource issues

Entrepreneurs cannot handle and run a business alone by themselves. We require the support of
human resource to carve a niche in the market.

Employees with the required knowledge, expertise, and experience are needed for the efficiency of
the business processes and high levels of productivity.

First of all, it is quite difficult to find the employees that share the same vision and wavelength of
the business. Plus paying a hefty annual or even a monthly retainer income is a problem of the start
up’s as the finances at hand are always limited, and the overheads and expenses are also to be
taken care of. And secondly, it is also difficult to manage human resources as each of us work with a
different mind-set and perspective. Hence, human resources and employees can be as one of the
Barriers to Entrepreneurship.

v) Stringent rules and regulations of the market

It is not very easy for entrepreneurs to enter the new market as there are quite many rules and
regulations imposed by the government authorities. Plus there are various laws and compliances to
be adhered to such as taxation, environmental regulations, licenses, property rights, and much
more than act as the Barriers to Entrepreneurship. Some of the countries have many corrupt
officials that act as a hindrance for the new entrepreneurs and start-up brands to start or expand
their business in the new market. And if the brand is planning to expand its business  operations in
any of the foreign countries, it gets even more difficult.

vi) Fewer opportunities

Even though there is a lot of talent pool in the market with the aspiring entrepreneurs buzzing with
the ideas, but the opportunities presented to them are quite less and fewer. Reasons such as
nepotism and corruption act as the Barriers to Entrepreneurship with not many vital and lucrative
opportunities.

vii) Lack of capacity

Even if there are opportunities presented to the aspiring entrepreneurs, there is a lack of capacity in
some them to embrace the opportunities with open arms. The reasons can vary from lack of
knowledge, lack of education, lack of willingness, lack of strategic knowledge, and cultural
hindrances amongst others; but the factor of motivation and zeal gets missing.

To start a new business venture amidst all the risks and market-related issues, it requires a lot of
hard work, passion, and high capacity to handle all of it.

viii) Less market experience

The experts always mention that one should never rush in setting up a business. It is quite
necessary to gain a relative amount of work experience by working in the industry domain or sector
of choice and as per the education levels. It also helps to sharpen the required expertise and find
the ground in the career graph.
Once the person is ready to take risks and have a relative amount of market exposure, he is ready
to take the entrepreneurial plunge.

ix) Lack of risk-taking capacity

It is always said that entrepreneurs never sail in safe waters and are never confined to their comfort
zones. Lack of risk-taking capacity is the psychological mind-set and perspective towards the
business and acts as one of the major Barriers to Entrepreneurship.

The budding entrepreneur has to have a structured and organized approach towards the various
business elements and should risks rather than averting them.

x) Corrupt business situations

As mentioned earlier, if the business situations and the environment are not very supportive and
corrupt for the young and aspiring entrepreneurs, it acts as one of the top Barriers to
Entrepreneurship.

Bribing, rampant corruption, unfriendly ties of government with other nations, inconsistent laws,
stringent compliances, and enforcing regulations that are unhealthy and negative in their approach
hamper the growth of businesses in the country. Russia is one of the examples of having an
unhealthy and unsupportive business environment.

xi) Inadequate training

With no proper education, development, training, entrepreneurial skills, and technical know-how

acts as the Barriers to Entrepreneurship.

xii) Lack of practical knowledge

Having a strong educational background is just not enough to pursue business as it requires
practical knowledge as well to stay relevant amidst the various market cycles. And many
entrepreneurs lack practical knowledge.
Q.2.C) Nature of International Entrepreneurship:

Ans:

According to McDougall and Oviatt, “International Entrepreneurship is a combination of innovative,

proactive, and risk-seeking behaviour that crosses national borders and is intended to create value
in organizations.“   

When an Entrepreneur goes to other countries to run and operate their business, then it is known
as International Entrepreneurship. These are the industries that cross the national boundaries of
their nation. These types of Entrepreneurship include exporting of goods, licensing as well as
commencing a sales office in other countries. Under this, an Entrepreneur operates all the business
activities out the boundaries of the nation and it indicates the development of the business
internationally.

Most of the businesses across the national border to establish value and grow the business. A
different set of innovative activities performed by most of the businesses across the borderlines and
enhance those opportunities to create some creative products and services.
In short words, International Entrepreneurship defined as the development of a new venture on a
global basis, and their operation domain is considered international from the very beginning stages
of operations.

Famous Examples Of International Entrepreneurs

There are many industries that have produced numerous international entrepreneurs Coca-Cola,
Nike, MacDonald, BMW, Puma, Philips and Tata etc. But most famous entrepreneurs are came from
techy world, who started there business from a small ventures but then took it to international
level. Some examples are
 Apple- Steve Jobs
 Google- Larry Page and Sergey Brin
 Microsoft- Bill Gates
 Facebook- Mark Zukerberg
 Yahoo- Jerry Yang and David Filo
 Amazon- Jeff Bezos
 Alibaba- Jack Ma
 Tiktok- Zhang Yiming

Importance of International Entrepreneurship

For the satisfaction of foreign customers, they have to produce the products that meet the
demands internationally. One important thing that every Entrepreneur has to consider is the quality
of the products in global as well as domestic markets and fulfill all the requirements of the potential
customers. Customer satisfaction is important to run the business smoothly.
Thus, International Entrepreneurship is of utmost importance for the people living across various
areas of the nation. Let us have a look at some of the vital points due to which the international
Entrepreneurship is considered on top.

 A Decline in domestic Market

If the sales of products are low in the domestic market, then the Entrepreneur has a very effective
option to sell the same at the global market. Thus, they can sell their products in the international
market as per the demand instead of wasting such products by keeping them in the warehouse.
 Maturity Stage
First off, an Entrepreneur should grow their business within the domestic nation, and then, the best
time to move forward for international business is when it reaches the maturity stage. When the
business is well-developed in own nation, then it is more significant to choose international
Entrepreneurship.
 Reduce Manufacturing Costs
The majority of the companies have fixed costs at a high level that can also be helpful to lower the
manufacturing cost of the products. When the products are selling in the global market, then a
large number of units are required and hence, the manufacturing cost reduces.
 Enhance Reputation
As the products are selling in the international market, then it is obvious that there is a positive
impact on the reputation of the business and it helps to establish a professional image of the
business. Not only reputation but also they can compete with other firms that are engaged in the
same arena.
 Meet the Quality Expectations
Entrepreneurs who want to fulfill all the expectations of their foreign customers have to provide a
high quality of products to meet the expectations of their customers. An international Entrepreneur
will not only in the global market but also produce premium quality products in the national
market.
 Customer Relationship Management
Through the expansion of the business out of the borderlines, an international Entrepreneur learns
how to inculcate the habit of customer relationship management. So, it improves the relationship
between the business and its potential customers. Moreover, it develops respect and become
sensitive towards all sort of customers and develop foreign habits.
 Hire Employees Globally
As the business is going to expand its arms across other nations, then it is obvious that there is a
need to hire staff that is from that particular location. It is helpful to deal with the customers of that
nation as the employees can easily understand the demand of people residing over there. So,
international Entrepreneurship creates a large number of employment opportunities at various
locations across the nationwide. Thus, they can look internationally and begin developing an
outlook from a global perspective.
Q.2.

Corporate entrepreneurship or Intrapreneurship is an important element in large and medium

organizations. Intrapreneurship exists within the organizations. It plays important role in
organizational and economic development. Intrapreneurship leads not only to new ventures, it leads
to other innovative activities and orientations such as development of new products, technologies,
services, strategies and competitive postures. In good or bad economic times, companies seek
innovations to remain competitive. Intrapreneurs are more intelligent and have ability to perceive
the big picture. They are self-motivated, and optimistic. These people are action oriented and move
quickly to get things done.