(i) What is an enterprise:

Enterprise : An Enterprise is a business entity established by an entrepreneur for

a.producing goods and (or) services
b.providing employment opportunities
c.adding value to the national income
d.improving exports
e.providing the economic development of the country.

(ii) Who is an Entrepreneur? Watch Video🎥

Entrepreneur : An entrepreneur is

a.an innovator of new ideas

i.to creates new products or services

ii.to creates new products or services

b.exploits an opportunity

c.commercializes his innovation

(i) Explain any two advantages of being an Entrepreneur? Watch Video

The following are few advantages of being an entrepreneur.
1.
They can work as per their choice and on any idea and not confined to someone’s
instructions.
2.
For the entrepreneurs who love to take high risks, the entire process is an exciting
adventurous journey.
3.
The luxury of being your own boss and freedom working under someone else.
4.
Their earnings will be worth of their own efforts. They’ll not be judged by a fixed salary for
their worth.
5.
The feeling contributing a product or service that is unique and original
Q.2. (ii) Explain any two disadvantages of being an Entrepreneur?
The following are few disadvantages of being an entrepreneur.
1.
Owing to the fact that the enterprise will be entirely innovative and first of its kind, it is
difficult to find employees with the right experience. They’ve to tackle the employees who
may not have much insight into what is happening or the employees with little or not
experience on the given task.
2.
A consistent income like salary is not guaranteed.
3.
The entrepreneur being the decision maker, he has to be much more cautious as even a small
wrong decision taken can have huge impact on the enterprise.
4.
An entrepreneur has to work much more than regular working hours and should be ready to
tackle any emergencies at any time.
5.
The benefits of a salaried job like medical insurance, holidays etc will not be available,
especially during the initial phase of starting the enterprise.

Q.2. (iii) Differentiate between entrepreneur and entrepreneurship. Watch Video

The following is the differentiation between an entrepreneur and entrepreneurship
Entrepreneur
Entrepreneurship
1. An entrepreneur is a person or a group of persons who establishes an enterprise, take the
risks, accumulates all the resources required to carry out production or perform services and
creates an innovative product or service.
1. Entrepreneurship refers to all actions executed by the entrepreneur to establish an
enterprise.
2. An entrepreneur is a person or group of persons who try to innovate new products or
services.
2. Entrepreneurship is the process of innovating new products or services and streamline the
resources required to commercialize these products or services.
3. Entrepreneur will be constantly trying to innovate and bring about changes with respect to
factor proportions.
3. Entrepreneurship is the process followed to create value.

(i) Describe entrepreneurial functions of an entrepreneur? Watch Video

An entrepreneur should possess the following following entrepreneurial functions.
1.
Innovation: An entrepreneur should be innovative enough to bring about the change in a
product or service or means of production or raw material used in the production. They
should innovate and bring about a change in one or more of these. They should innovative
enough to recognize the commercial value in their innovation and extract economic
advantage from it.
2.
Risk-Taking: They should be ready to face any unexpected risk while going through the
entrepreneurship process. The should be intelligent enough to diversify the risk in
a.
production
b.
investment
c.
expansion of the enterprise
3.
Building of Organization: The entrepreneur should have enough organizing and managing
skills to utilize the resources with minimum loss and bring down the production costs. Being
the sole decision maker for the enterprise, the entrepreneur should be able to make decision
regarding which parts of the business need to expanded and where the investment should go
to.

(i) Describe the process of entrepreneurship? Watch Video

1.
Self-Discovery: One should first discover that one has potential to become an entrepreneur
and what it takes to be an entrepreneur. A careful analysis
a.
What makes one enjoy?
b.
What are their strengths?
c.
What are their weaknesses?
d.
What is their experience?
e.
How closely they can relate their expertise to commercially viable opportunities.
2.
Identifying the opportunities: The next step is to identify the opportunity. This can be done
through careful analysis of
a.
Wants
b.
Needs
c.
Day to day problems
d.
Day to day challenges
and then tackle those which are not yet addressed or which require significant improvement.
3.
Generate the ideas and Evaluate them: In this step innovative ideas to address the
opportunities in the previous step are generated. The entrepreneur’s experience and creativity
plays a critical role in this step. The various ideas thus generated as further filtered down to
one.
4.
Planning: In this step the entrepreneur entrepreneur performs extensive research and
determines the various resources to convert his ideas into a commercial enterprise. He then
prepares a business plan to market his venture.
5.
Raising the initial capital: The business plan is then discussed with various partners, investors
and venture capitalists. To convince the fund contributors and gain their confidence, the
entrepreneur might required to present a prototype of the product or service or he may have to
test-prove the marketing strategy.
6.
Start-Up: In this phase the entrepreneur will
a.
Start the enterprise
b.
Building a customer base
c.
Ensuring that the marketing is going good.
d.
Develop a plan for carrying out the regular operations of the enterprise.
7.
Growth: In this phase teh entrepreneur will
a.
Develop a strategic plan
b.
Implement the plan
c.
Making changes to accommodate the changes in the market
8.
Harvest: In this phase, once the enterprise is stable and running profitably, the entrepreneur
will sell out his enterprise and harvest the rewards. After this many entrepreneurs start
focusing on their next venture to tackle new problems/wants/needs/challenges. It is an
ongoing process.

(i) Who is an Intrapreneur? Watch Video

An Intrapreneur or a corporate entrepreneur is a person, who has entrepreneurial
competencies and who innovate the products or services for the organization he/she is
working for. The intrapreneur or corporate entrepreneur is usually an employee of a large
organization who uses the resources and capabilities of the organization, rather than their
own, to put their innovative ideas to practice and align their goals to the organizational goals.

(ii) Define Entrepreneurial Motivation. Watch Video

Entrepreneurial motivation is the process that motivates an entrepreneur to
a.
always stay in the direction of their goal
b.
bring about the best of their efforts
c.
consistently hanging around their goal
to achieve their entrepreneurial goal.

Q.1. (iii) What do you mean by competency? Watch Video

Competency : Competency refers to a set of well defined behaviours that act as a road-map to
a.
recognize
b.
measure
c.
and develop
all the necessary behaviours required by a person to perform a job or achieve a goal.

Q.1. (iv) Which value provides goal direction to entrepreneurs? Watch Video
The value ‘Respect for work’ provides the goal direction for an entrepreneur and guides and
direct them to pursue a career or path where in the growth and development is highly in
proportion to the level of efforts they put in.

“We can appoint an employee but not an entrepreneur.” Describe difference between an

employee and an entrepreneur in the light of this statement. Watch Video

Feature
Entrepreneur
Employee
1. Motive
To start an enterprise for personal satisfaction and to commercially exploit their innovative
products or services.
Provide service in an enterprise of their choice and work as per their aptitude and get a
secured employment.
2. Role
Owner of the enterprise and the sole decision maker.
Servant in the enterprise with limited authorities.
3. Responsibilities
They bear all the risk and constantly working for the enterprise.
They do not bear the risk and work for only specified work hours.
4. Benefits
They take all the profits earned by the enterprise. The profit is uncertain at times. In addition
to this they enjoy the success of the enterprise.
They take fixed salary. Sometimes they get bonus, if any, during special occasions or
depending on their performance. Their takeaway income is limited. They can not have the
sense of ownership of the enterprise.
5. Innovation
They are constantly watching for the changes in the market and the environment to innovate
better products or services and to drive the organization towards its goal.
They perform their day to day activities of the job and meet the targets set by the business.
6. Qualification
They should possess the entrepreneurial qualities like
a.
Self-motivated
b.
Creative and Innovative
c.
Ability to gauge the future
d.
risk-taking
e.
risk-bearing
f.
Persistence
They should have an educational qualification depending on the nature of the job. For
instance, an engineer should have a degree in B.E/B.Tech/M.Tech, a manager should have an
M.B.A in production or marketing etc. The qualities like being creative, persistent would be
an added advantage.
(vi) Differentiate between an Intrapreneur and Entrepreneur. Watch Video
Intrapreneur
Entrepreneur
1. They’re employees of an enterprise.
1. They’re owners of an enterprise.
2. They do not bear any risk associated with the entrepreneurship.
2. They are risk-bearing and risk-taking.
3. They are instructed to work on a special project or idea.
3. They’re motivated to innovate a new product or service or put an idea into practice.
4. They use the resources and capabilities of their organization.
4. They risk all of their own resources and capabilities
5. Their success is at the disposal of the management of the organizations.
5. They’re their own bosses and work their way towards their success.
6. They work for the best of the interest of the organization.
6. They setup the organization as per their interest.
7. These are growing class of 21st century employees.
7. These are growing class of 21st century entrepreneurs.

(vii) Explain the following Entrepreneurial Competencies: a) Persistence Watch Video

Many of the entrepreneurial ventures are unique and new. So, they need a very close watch.
Once the product or service is in place, it should be marketed. If the market for the new
product does not exist, the entrepreneur should find new ways to create the market, for selling
their product or service. During this process, they encounter many hurdles. The entrepreneur
should be highly persistent in their efforts and should not give up. Thus persistence is a vital
entrepreneurial competency that the entrepreneur should possess.
Q.3. (vii) Explain the following Entrepreneurial Competencies: b) Leadership Watch Video

Many of the entrepreneurial ventures are unique and new. From the start of the enterprise to
the stage where the product or service is introduced into the market, there is lot of uncertainty
associated and the entire enterprise has to go through many hurdles and roadblocks. During
this, it is essential to guide and motivate the team towards the goal. To achieve this the
entrepreneur should possess effective leadership qualities to keep the team focused on the
goal of the enterprise. As a leader, the entrepreneur should exhibit
⁕
strong will power
⁕
effective business acumen
⁕
and communication skills
to drive the enterprise towards the goal, during difficult times.
Q.3. (vii) Explain the following Entrepreneurial Competencies: c) Systematic planning Watch

Video
Every enterprise requires the availability of resources like
a.
Time
b.
Funds
c.
Labour
The entrepreneurs gather funds majorly from their personal savings. They put all their efforts
and time to establish their enterprise. Any deviation in the planning of the enterprise’s
activities will be disastrous and result in the collapse of their dream. In order to put all of
these resources to the optimum use, and to spend them in the right direction, they should
prepare a detailed systematic planning. They should strictly implement this systematic
planning to drive all of their resources towards the goal.

(ix) Define Business Ethics? Why is it important to an entrepreneur. Watch Video

Watch Video
While conducting business, the enterprise should guard itself from potentially controversial
issues such as
a.
Aversion from corporate social responsibility
b.
Bribery
c.
Corporate Governance
d.
Discrimination
e.
Exploitation by insider trading
f.
Fiduciary responsibilities
The study of proper business policies and practices related to the above controversial issues is
know as ‘Business ethics’. Business ethics are often guided by law. Sometimes they provide
the basic framework that business choose in order to gain public acceptance.
The entrepreneur, while doing the business, interact with the social environment. The
entrepreneur’s success purely depends on how the external environment perceives his idea.
Any sort of non-adherence to business ethics is likely to put them on the verge of fatality. The
should adopt what is termed as ‘Social Entrepreneurship’, ‘Corporate social responsibility’,
‘Social corporate entrepreneurship’.
Focusing completely on the business problems is likely to overlook ethical problems. So,
they should be cautious. Non-adherence to business ethics has crashed the business giants
like Enron, WorldCom, Anderson etc. So, it is essential for the entrepreneur to adhere to
‘Business ethics’ for the success of the enterprise.
Once the business is successful, few of the ethical standards that help the entrepreneur to
retain their success are
a.
Appropriate measures to maintain quality and quantity standards
b.
Bearing the environmental responsibilities
c.
Conforming to the labour laws.
d.
Discouraging the child labour
e.
Efficacious usage of the natural resources

xi) Explain types of entrepreneurs on the basis of motivation. Watch Video

Based on the motivation, the entrepreneurs are segregated as
1.
Spontaneous: They are self-motivated and also known as natural entrepreneurs. They
undertake entrepreneurship for personal satisfaction in work, ego or status. They are highly
creative.
2.
Induced: These entrepreneurs undertake entrepreneurship to grab the opportunities that come
their way like government’s support for prospective entrepreneurs etc. Some times, the
circumstances like unemployment or not satisfied by their current job will also force them to
adopt entrepreneurship.
3.
Motivated: These entrepreneurs are highly ambitious and are motivated by their desire to put
their talent or skill into practical use. They adopt the entrepreneurship as they’re confident of
their idea turning into a successful venture. They’re further motivated when their innovative
product or service is adopted by the market and bring them profits.

(ii) Motivation is a process, explain by a model. Watch Video

Motivation is an essential process. The following model explains the motivation process. Its
various components can be summarised as follows.
1.
Unsatisfied Need: Every human being has an instinct to satisfy their needs or desires or
expectations. Sometimes the needs are satisfied and sometimes they are unfulfilled. This
leads to tention.
2.
Tention: Unsatisfied needs cause tension in a person. To gt rid of tension they will start
searching for ways.
3.
Drives: Searching for relief from tension leads them to the drives that relieve the tension.
4.
Search behaviour: These drives lead to certain search behaviour to find means to satisfy their
needs.
5.
Need fulfilled: The need is fulfilled once the means to satisfy their need is found.
6.
Reduced tension: Once the need is satisfied, the tension is reduced.
Once the satisfactions is completed, new unsatisfied needs will arise. This process continues.

(vi) Explain any four entrepreneurial competencies Watch Video

1. Creativity and Innovation: Innovation and creativity are the the most important core values
of entrepreneurs. While creativity guide an entrepreneur to dream about creative ideas to
improve an existing product or service or solve a problem, innovation guides them to put
their ideas into practical use.
An entrepreneur exhibits innovation by
1.
Being unique and original in their solution.
2.
Contributing critical inputs for a new idea
3.
Develop or Improve the existing products or services
4.
Evaluating the new ideas
5.
Focusing on the solution even when failure occurs
6.
Go for a continuous search for problems in the society (so that they can resolve them)
2. Enterprise Launching: Entrepreneurs should possess the competency to identify the
opportunities and make best use of the resources at their disposal, by launching an enterprise.
This trait is what stands them apart from the crowd.
3. Enterprise Management: Managing an enterprise is a crucial competency that an
entrepreneur should possess. The success of the enterprise depends on the the level of an
entrepreneur’s expertise in enterprise management. They should be well acquainted with
various functions in the management like
a.
Planning
b.
Organizing
c.
Staffing
d.
Directing
e.
Leadership
f.
Communication
g.
Motivation
4. Information seeking: The amount of information an organization has at its disposal plays a
crucial role in the success of the organization. The entrepreneur should gather the information
about changing trends in consumer behaviour, market demand, new technology being
introduced, competitor analysis etc. This helps them in decision making process, thus driving
the organization towards its goal.
5. Initiative: This is one of the basic competency that every entrepreneur should possess.
Taking initiative in the starting point in an entrepreneurial process. The entrepreneur should
be vigilant of the consumer behaviour, market dynamics, launch of new products to spot an
opportunity. Once the opportunity or idea is spotted they should take the initiative to start the
entrepreneurial process. Once the entrepreneurial process is started they should increase the
pace to establish an enterprise.
6. Leadership : Many of the entrepreneurial ventures are unique and new. From the start of
the enterprise to the stage where the product or service is introduced into the market, there is
lot of uncertainty associated and the entire enterprise has to go through many hurdles and
roadblocks. During this, it is essential to guide and motivate the team towards the goal. To
achieve this the entrepreneur should possess effective leadership qualities to keep the team
focused on the goal of the enterprise. As a leader, the entrepreneur should exhibit
a.
strong will power
b.
effective business acumen
c.
and communication skills
to drive the enterprise towards the goal, during difficult times.
7. Persistence: Many of the entrepreneurial ventures are unique and new. So, they need a very
close watch. Once the product or service is in place, it should be marketed. If the market for
the new product does not exist, the entrepreneur should find new ways to create the market,
for selling their product or service. During this process, they encounter many hurdles. The
entrepreneur should be highly persistent in their efforts and should not give up. Thus
persistence is a vital entrepreneurial competency that the entrepreneur should possess.
8. Persuasion and Influencing Others: While performing various entrepreneurial functions,
the entrepreneur has to deal with various individuals and institutions. They should be able
persuade their ideas and influence others so that other people are ready to accept their
products are services. To do so they’ve to be well acquainted with the innovative features of
their products or services and how their products much better than those prevailing in the
market.
9. Problem solving: The entrepreneurs start their enterprise to commercialize a new product
or service. As the product or service is new and the enterprise is just started, there will be lot
of obstacles they would come across in the path of their goal. They should be capable of
coming up with a number of different solutions to the problem at hand. They should seek
alternate strategies and solutions. They should possess strong problem solving skills to
achieve this.
10. Quality Performance: They should have a tendency to maintain quality standards in their
products or services. They can achieve this by establishing their own standards or adopt the
standards set by others. Maintaining high quality standards will help them to win the
consumer loyalty.
11. Risk taking and risk management: As the area into which the entrepreneur is venturing is
new, there lot of uncertainty associated at various levels. This poses risk at various stages of
entrepreneurial process. The entrepreneur should be risk taking to move ahead. At the same
time, after they’ve started the enterprise and the risk surfaces, they should be capable of
managing the risk.
12. Systematic Planning : Every enterprise requires the availability of resources like
a.
Time
b.
Funds
c.
Labour
The entrepreneurs gather funds majorly from their personal savings. They put all their efforts
and time to establish their enterprise. Any deviation in the planning of the enterprise’s
activities will be disastrous and result in the collapse of their dream. In order to put all of
these resources to the optimum use, and to spend them in the right direction, they should
prepare a detailed systematic planning. They should strictly implement this systematic
planning to drive all of their resources towards the goal.

(vii) Explain features of attitudes Watch Video

The following are the features of the attitude.
1.
Acquired: The attitude is not acquired by birth. During childhood we acquire the attitude
mostly from the family members. As we grow, we start acquiring the attitude from the
society. We acquire the attitude gradually (not instantaneously). The process of acquiring the
attitude remains throughout the life span.
2.
Behaviour: People behave in accordance to their attitude. In the absence of an influence,
people with certain attitude behave in an intended way.
For instance, when you enter a mobile store, you want to purchase a specific model of a
certain company in the absence of any external influence. Attractive ads displayed in the
store can influence you and change your behaviour(to purchase a different model or a phone
of a different company). Even the sales man/girl might influence you to purchase a different
model or brand. But in the absence of these external intervention to change your behaviour,
you behave as per your attitude.
3.
Concealed or Invisible : Attitude is purely psychological and is not externally visible.
However, depending on the behaviour a person exhibits towards a commodity or person or
country, we can guess the attitude of a person. For instance, depending upon the interest
shown by a student on a specific subject, we can infer that the student has a positive attitude
towards that subject or faculty.
4.
Pervasive: An individual acquires an attitude through the social interaction with different
individuals in the society. Different incidents and interactions with others form different
attitudes in a person. Thus the attitude is not just developed by a person and many external
factors are involved in forming an attitude in a person.
For instance the experience a person had after using a cell phone might form a positive or
negative attitude towards the manufacturing company of that phone.
Another example is the experience a person had with the water in a restaurant a restaurant
might form a positive or negative attitude about the restaurant itself.
Thus it is clear that the attitude is pervasive by nature.