Bangladesh University of Professionals (BUP)

Assignment
On
Entrepreneurship Development
Code: ALD 3105

Prepared for,
Takrima Jannat
Lecturer, BUP

Prepared by,
Name ID
Md Tanjil Islam 2025171052
Shawrea Reme 2025171070
Sabera Sultana Suchona 2025171036
Maisha Bente Ziad Tazvi 2025171086
Md Ashraful Islam 19251106
Question 1: What are the risks and challenges of that business?

Grocery store: The owner of grocery store has many ricks and challenges. The most
common risks are no liabilities protection, financing and business credit is harder to procure,
selling is a challenge, unlimited liability, raising capital can be challenging and lack of
financial control and difficulty tracking expenses. Grocery store is individually liable for the
debts of their business. A business creditor who sues successfully for nonpayment may be
awarded the proprietor's personal assets. In our local area they sales diversion of products.
They sale rice, pulse, sugar, salt, spices, toothpaste, soap, and other grocery products.
Sometime products arrive late or wholesaler does not deliver products in appropriate time. In
this situation customers purchase products from alternative shop. Contemporary pandemic
situation owner lost his customers. The seller does not sale products to middle or lower
family because of raising products price.
The major challenge in this type of business a new product in the market is to inform the
customers. Many times, seller contain alternative products in same brand with customers
preference. Customers purchase different brand because they used to their preferable brand.

Fruit seller: The business of selling food is sole proprietorship in our local area. Fruit seller
in our local area take ricks and challenges. Fruit seller opinion fruit is perishable product. It
decomposes quickly. When seller purchases 10 kg fruit for selling to customer then 2 kg of
fruit rot. Another risk of fruit seller is proper preservation. Lack of preservation is major risk
in this type of business.
Sale fruit in proper time is the major challenge. The must consider selling varieties of fruit if
seller really want to succeed in their fresh fruit selling business. Suppose someone will walk
down to those who come with different types of fruits rather than a few type ones.They like
to buy different types of fruits. Also, there is a higher tendency that the customer will buy
more fruits than he/she budgeted to buy when a customer sees different fruit types. That’s
why always look for fruit varieties, that way you will attract more customers while going out
to buy your fruits. It’s also important to increase your sell so that you can fill your target
according to your business plan.

Books and stationary shop: In the stationery shop, especially pens, books, notebooks,
staplers, calculators, pencils, and similar items useful in studies are sold. But nowadays
people who keep stationery shop have started keeping greeting cards, wedding cards, and gift
cards too. Simply put in the stationery shop, seller can also keep small things for people to
use. The start up of the year selling grow intensely but the mid of the year selling more
reduce. It is the major risk
Some time students want different edition of same book. For the reason keep different edition
books in the stationary. Many students need old books so contain used book for selling books
for customer.
Question 2: What are the risk minimization strategies of that business?

Prioritize: The first step in creating a risk management plan should always be to prioritize
risks and threats. they can do so by using a somewhat universal scale based on each risk's
likelihood of happening:
1. Very likely to occur
2. Some chance of occurrence
3. Small chance of occurrence
4. Very little chance of occurrence
Of course, a risk that falls into the top category should take priority over the others, and a
plan to prevent, or at least mitigate, these risks should be put into place. However, there is a
catch. If a risk falls into a lower rung yet presents the potential for more financial damage,
then it should take priority.
Implement a Quality Assurance Program: A good reputation is imperative if entrepreneur
want a sustainable business. Customer service is key to success. Be sure to test his products
and services to assure the highest quality. By testing and analyzing what he is offering, he
will have an opportunity to make necessary adjustments. Also, strongly consider taking it a
step further by evaluating his testing and analyzing methods.
Limit High-Risk Customers: If an entrepreneur just getting started, immediately implement
a rule that customers with poor credit must pay ahead of time, which will avoid complications
down the road. To do this, he must have a procedure to identify poor credit risks far in
advance.

Reason for becoming entrepreneur:

They embrace opportunity: As an entrepreneur, he is good at spotting opportunities and
running towards them wholeheartedly. Though there are usually risks involved in any
opportunity, entrepreneurs are willing to take them on if they feel it will be worth their time
and grow their business. Opportunities such as a new contact or a new client, or access to a
better supplier or vendor, are the lifeblood of an entrepreneur. Where some people may run
away from an opportunity out of fear, entrepreneurs are motivated enough to know when it
feels right to say yes and dive in headfirst.
They seek freedom and control: As an entrepreneur, he can seek the freedom to be his own
boss while also exercising complete control over every facet of your business. This
preference is often why conventional jobs aren’t a great fit for entrepreneurs, as they offer
neither and may not feel like much of a challenge. Like anything in life, being a successful
entrepreneur requires a healthy balance between freedom and control, especially as the
business grows and the work becomes more challenging. Entrepreneurs often must weigh the
freedom and control of being their own boss with their responsibility.
Improving standard of living: By creating productive organization, an entrepreneur helps in
making a wide variety of goods available to the society which results into higher standards of
living for the people.
They want a lifestyle: Another fact of entrepreneurship is that an entrepreneur is own boss
of his business and he can set his own work hours. As an entrepreneur, he get to embrace odd
work hours and report to only himself. he can also set his work schedule to complement his
best working hours.