12th Real Eship 12334

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The miracles take a little longer SHAFI SIR
COACHING CENTRE
Near Car Plaza
K.P Road Anantnag
Entrepreneurship
For Class 12TH
BY
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SHAFI SIR
{M.COM(K.U)}
(KU Entrance Topper)

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UNIT .1
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Topic 1:Introduction of Entrepreneurship:

Entrepreneurship may be defined as the visualization and realization of new ideas by
insightful individuals, who are able to use information and mobilize resources to
implement their vision. Entrepreneurship is the ability (i,e knowledge and skills) of a
person to translate ideas of commencing a business unit into reality by setting up a
business on ground to serve the needs of society and the nation ,in the hope of profits.
The concept of entrepreneurship can be understood properly by the below given
diagram.
Entrepreneur:
Entrepreneur is a person responsible for setting up a business or an enterprise. He has
the significant skill, creativeness and innovative mindset by which he looks for higher
achievements. He is a catalytic agent of change and works for the good of people.He
doesn’t wait opportunities to come his way rather he goes out and search for attractive
opportunities __identify them, explore them and then exploit them in a most creative
manner.
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Entrepreneurship:
Entrepreneurship is the process of designing, launching and running a business
efficiently and effectively. It is the ability and quality of an entrepreneur to identify an
investment opportunity and to organize an enterprise in order to contribute for the real
economic growth. It is an attempt to create value through identification of business
opportunity by mobilizing _ human, financial and material resources.
Enterprise:
Enterprise is the outcome or result of entrepreneurship process performed by an
entrepreneur. An enterprise is a business organization that is formed which provides goods
and services, create jobs, enhancing national income thus contributing to the sustainable
economic development.
Topic2: Characteristics or features or competencies of

an entrepreneur?
Following are the main characteristics of an entrepreneur:
(A) Innovative:Innovation means creating something new or enhancing value

of some exiting product.Innovation is the basic feature of an entrepreneur.
Entrepreneurship is an automatic and creative response to changes in the
environment.As an innovator, entrepreneur has to introduce new products, create new
markets, apply new processes of production,discover of new and better source of
rawmaterials and developing a new and better form of industrial organization.
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(B) Risk Taker:Risk means Variability in expected return. Starting a new

enterprise always involves risk and trying to do something new and in different
manner is also risky. A successful entrepreneur is bestowed with the ability of taking
of responsibility for loss that may occur due to unforeseen contingencies of the future.
Thus, entrepreneur is risk taker instead of risk averse.
(C) Initiative: One of the most fundamental competencies required for the
entrepreneurs is the ability to take initiative. It is rather the first step in the enterprise.
An entrepreneur has to be keen observer of the society, the commercial trends, the
product types, the change dynamics and the consumer trends. He must not be one who
resist change but the one who willingly accept the change and extract the benefits
therefrom.
(D) Vision and Foresight:Entrepreneur is one who has eye on long run
instead of restricting to short run. He focuses on long run and devise the potential
strategies in order to get the sustainable competitive advantage over the rivals.
(E) Leadership:An entrepreneur has to issue orders and instructions and

counsel his sub-ordinates in their work with a view to improve their performance and
achieve predetermined objectives. To be a successful leader an entrepreneur must
possess the qualities of drive and personal integrity.
(F)Ambition:It is easy to give up when going gets tough, but the most successful
entrepreneurs persist because of their ambitious nature. They want to succeed ,and
they thrive on reaching small milestones that are stepping stones to their major goal.
Topic 3:Entrepreneurial opportunities : Meaning .

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Opportunity:
Opportunity is an external positive trend. It is an attractive project idea which an
entrepreneur accepts as a basis of investment decision. Opportunity is a favorable or
advantageous circumstance or a combination of circumstances. Thus Opportunity is a
chance of progress or advancement.
Entrepreneurial Opportunity:
Entrepreneurial opportunity is an economic idea which can be implemented to create a
business enterprise, earn profits and ensure future growth. Entrepreneurial
Opportunity motivates an entrepreneur to accept a particular project and make
investment in order to get adequate and attractive rate of return.
Thus Entrepreneurial opportunity is an idea that can be economically exploited and

it leads to:
Establishment of enterprise,
Attainment of Acceptable rate of return, and
Achievement of Potential future growth.
Entrepreneurial opportunity is the point at which identifiable consumer demand meets

the feasibility of satisfying the demanded product or service . In the field of
entrepreneurship ,specific criteria need to be met to move from an idea into an
opportunity.It begins with developing the right mindset__ a mindset where the
aspiring entrepreneur sharpens their senses to consumer needs and wants , and
conduct research to determine whether the idea can become a successful new venture.
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Topic 4 : Elements / Factors/ Criteria for choosing an

entrepreneurial opportunity?
We know that entrepreneur refers to individual who undertake the risk of starting new
enterprise. He always search for change – responds to it and exploit it as opportunity.
Thus he is the one, who converts situation into opportunity and believes that market is full
of opportunities.
As the entrepreneur cannot select each and every opportunity randomly .He has to
choose most feasible and optimal opportunity from among different alternatives in
order to get the competitive edge in long run.
Following are the basis for selecting entrepreneurial opportunity:
(1) Assured Market Scope: Before selecting a particular opportunity ,an

entrepreneur must determine the possible market of proposed opportunity . A
detailed market investigation is done in order to figure out if there is a market for
the opportunity----and how big that market is.
(2) Attractive and Acceptable Rate of Return:Perhaps profitability

is one of the most important criteria of viable entrepreneurial opportunity. The
proposed opportunity must be such that it fetches adequate rate of return . Aim of
having the sustainable competitive advantage without having a significant earnings
is a mere day dream.
(3) Practicability of Idea:Another important criteria for selecting a particular

opportunity is its practicability. The proposed opportunity must be executable and
attainable an not a mere imaginary thing .
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(4) Potential Future Growth:Growth potential is an organization’s future

ability to generate larger profits ,expanding its operations and making integration
with various levels of supply chain. Growth potential is a barometer for future
success. Thus ,before selecting a particular opportunity ,an entrepreneur must
determine the potential success of proposed opportunity.
(5) Ability of anEntreprenuer to encash it:Success of a particular

opportunity does not only depend on nature of opportunity , it matters a lot that
how much the person has got ability to extract the benefits from opportunity. Thus
before selecting a particular opportunity , an entrepreneur must make sure that his
inner potential and caliber matches with the requirements of proposed opportunity.
Topic 5: Sensing of Entrepreneurial Opportunity:

Meaning ,Objectives and importance:
Meaning:
To Sense means to recognize or to feel any subject matter. Sensing of entrepreneurial
Opportunity is the process of perceiving the needs and problems of the people &
society and finding its creative solutions. It is the process of recognizing the needs
and requirements of market ,transform them into opportunity and exploit them by
creating a viable business setup .Thus with the help of this process , a prospective
entrepreneur is able to figure out opportunity which would be suitable for him in terms
of customers to be served and profits expected.
Importance of Sensing of environment:

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8
Following are the main importance of sensing of entrepreneurial
opportunity:
(1 )Helps to findout real problem and demand of

Economy: Entrepreneur performs a detailed investigation of market in order to
know the real situation of market with the aim to find out what customers actually
want and how they can be satisfied in the best possible manner. Problems and their
causes need to be figured out properly, because it may be a case that what we
consider a problem might be a mere symptom of a critical problem. Therefore, aim
of entrepreneur is to determine the actual problems .
(2) Determining the performance of existing

opponents:with the help of sensing of environment, potential entrepreneur is
able to analyze the performance of rivals for identifying the scope of opportunity.
He wants to find out all the spots which the competitors have left untouched or
finding the weak areas of opponents which could be exploited in a best way.
(3) Supports to determine the financial requirement

of
proposed project:We know that an opportunity could only be encashed
when it is backed by the availability of significant amount of financial resources i,e
capital . Entrepreneurs do perform the process of sensing of opportunity for
estimating the financial requirements of the proposed project.
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(4) Helps to get knowledge about the potential growth

of
proposed industry: With the help of sensing of entrepreneurial opportunity
,entrepreneur aims to find out the possibilities of short term and long term
development in the areas of economy.
Topic 6: Factors / Elements involved in sensing of

entrepreneurial opportunity:
Factors of sensing of entrepreneur opportunity
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Ability To Perceive Ability To Harness different

and sources of knowledge and Vision And
information Creativity
Preserve the basic idea
* Problem
* Change Sources
* Invention
* Competition
(A) Ability to Perceive and preserve basic idea: Spotting of an

idea often triggers the process of sensing an opportunity. However, every idea
doesnot create an opportunity. For the sake of clarity, we can assume that an
opportunity is an idea that is based on what consumers want. Basic idea emerge
from different sources as discussed below:
(a) Problems:When an idea revolves around a problem faced by the people

,the solution is most often a business opportunity .The main job of a
successful entrepreneur is to make a detailed analyses of market in order to
become aware about the problems existing in economy and accordingly
come up with a suitable solution. E.g security problem in mobile phones and
introduction of i-phone.
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(b) Change:We know an entrepreneur is one who don’t resist change but
accepts , responses and exploits it as an opportunity. Any change ,be it
social, legal or technological can usher in new business opportunities. E.gA
mobile manufacturing has to develop such type of smart phones featured
with 5g instead of 4g network connectivity in order to survive in this cut
throat competition.
(c) Invention: Inventions include creating new things of value as well as

new & creative processes that add value to existing products or services.
Entrepreneurs don’t remain restricted to their current status quo ,they
initiates Research and Development (R&D) activities to come up with the
most viable good or service.
(d) Competition:Competition is the situation in which two or more parties

(doing a related business) compete with each other in such a way that one
party gains at the loss of other .Entrepreneur always creates something
different with a view to capture a large share of market.
(B) Ability to harness different sources of knowledge and

information:An entrepreneur requires to gather information from different
sources such as magazines, newspapers, trade directories,
researchfindings,seminars ,customers ,suppliers, govt publications, annual reports
of companies etc. Then the data and information so collected is examined and
evaluated in such a way that a potential opportunity is extracted therefrom.
(C) Vision and Creativity: Vision means a preferred future. And creativity means art
of creating a new thing or art of behaving in a distinct way. One of the most
striking behavioral characteristics of an entrepreneur is his creativity.
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Entrepreneur must creatively identify the proposed idea to provide a creative

solution to the needs of customers.
Topic 7: Process / steps in sensing of entrepreneurial

opportunity:
Following diagram clearly discloses the four stages in sensing of
entrepreneur opportunity.
(A) Opportunity Spotting:Under this step ,an entrepreneur performs the

function of spotting an opportunity by analyzing the needs and problems that exist in
the environment. An opportunity may be derived from the needs and problems of the
society.Thus an entrepreneur must be keen and alert and aware of all the changes in
the external environment ,so that he can identify opportunities and find the suitable
strategies to capitalize the opportunities at the earliest.
(B) Creativity and Idea:After the opportunity is identified , the next step is the
evaluation of the idea _ which is received from different sources to find out a creative
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solution.A deep and detailed study and analysis of every potential opportunity is done
so that entrepreneur could reach to the proposed destination.
(C) Innovation and Product:After the evaluation of different potential

opportunities , the next step is to identify the product through innovation. The product
selected among various alternatives should be such that it can provide benefits in the
long run.
(D) Project Business:Thisstepis concerned with commencement of a proposed

project and nurturing its success.Thus under this step ,an entrepreneur is able to
convert raw paper planning into a desired result.
Topic 8 : Key Roles of an Entrepreneur:
(1)Opportunity Spotter:
The main attribute of an entrepreneur is that he is an opportunity spotter. He make a
detailed analysis of the economy in order to determine the actual need and problem
and transform it into an opportunity. He don’t wait to opportunity to come his way,
rather he go out and search for the opportunities _ identify them , respond them
and exploit them in the best way.
(2)Project Champion:
Entrepreneur is the one who has a mindset of taking an initiative of establishing a
business enterprise. He is bestowed by the features like boldness, bravery ,
creativeness, risktaker and analytical thinker etc. On the basis of these traits , he
has a dream and convert that dream into reality thereby.
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(3)Promotes Capital Formation:Entrepreneurs promote capitalformation

by mobilizing the idle savingsof public. They employ their own as well as borrowed
resources for setting up their enterprises. Such type of entrepreneurial activities lead
to value addition and creation of wealth, which is very essential for the industrial and
economic development of the country.
(4)Favorable Balance of Trade and Balance of Payment:
Entrepreneurs help in promoting a country's export-trade, which is an important
ingredient of economic development. They produce goods and services in large scale
for the purpose earning huge amount of foreign exchange from export in order to
combat the import dues requirement. Hence import substitution and export promotion
ensure economic independence and development.
(5)Creates Large-Scale Employment Opportunities:
Entrepreneurship and its activities provide the maximum employment potential. Large
numbers of persons are employed in entrepreneurial activities in the country. The
growths in these activities bring more and more employment opportunities.
(6)Provides innovation:
Entrepreneurship provides new ideas, imagination and vision to the enterprise. An
entrepreneur is an innovator as he tries to find new technology, products and markets.
He increases the productivity of various resources. The entrepreneur stands at the
Centre of the whole process of economic development. He conceives business ideas
and puts them into effect, to enhance the process of economic development.
Topic 9: Environment Scanning: Meaning &

Importance:
Meaning:
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Environment Scanning is the careful monitoring of an organization’s internal and

external environment for detecting early signs of opportunities and threats that may
influence its current and future plans. All the factors and forces (whether internal or
external) are taken into cognizance under environment scanning. 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 adopt the suitable
strategy to overcome the threats and capitalize the potential opportunities .
Environmental Scanning is a research process in which business collects all types of

relevant information that help the business in making decisions regarding expanding
or entering new markets or formulating of plans and strategies. It can be described as
keeping eye on external or internal environment and analyzing the information to
identify future threats and opportunities.
Environment scanning is a concept from strategic management by which business

gathers information from the environment in order to get sustainable competitive
advantage. Thus the main crux of environment scanning is to provide knowledge and
insights and to impart different thinking to be used in management planning and
decision making.
Importance of Environment Scanning:

Sensitivity to environmental factors is crucial for an entrepreneur. If a company is able
to adapt to its environment, it would succeed in the long run. For example, Sony is
failing to understand the changing trends in mobile phones and therefore losing its
market share. The benefits of understanding the relevant environment of business are:
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(1) First Mover Advantage:By keeping in touch with the changes in the
external environment, an enterprise can identify opportunities and find
strategies to capitalize the opportunities at the earliest. Thus environment
analysis helps an enterprise to take advantage of early opportunities instead of
loosing them to competitors.
e.g Maruti Udyog LTD become the leader in small car market as it was the first
to recognize the need for small cars in India.
(2) Early Warning Signals:Environment awareness serves as an early warning

signal. It makes a firm aware of impending threat or crisis so that the firm can
take timely actions to minimize the adverse effects.
(3) Strategy formulation and decision making:Environment

scanning provides relevant information about the business environment. It helps
in identifying threats and opportunities in the market. These can serve as the
basis of formulation of strategies to counter threats and capitalise on
opportunities in the market.
(4) Environmental analysis / coping with

change:Entrepreneurare expected to cope with rapid changes in the
environment .A keen watch on the trends in the environment would help
sensitize the entrepreneur to changing technology, competition, government
policies and changing needs of the customers. E.g Shift from 4g to 5g --refer
lecture notebook for this example.
(5) Continuous learning and public image:Environmental

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analysis serves as broad based and ongoing education for business executives .It
keeps them in touch with the changing scenario so that they can never caught
unaware. An enterprise can improve the image of his business by showing that
it is sensitive to its environment and responsive to the aspiration of public.
Topic 10: Approaches of environment scanning:

Environment scanning is a concept by which business gathers information from
environment to achieve a sustainable competitive advantage. The objective of the
analysis is to provide knowledge and insights and to impart different thinking to be
used in management planning and decision making.
Following are the approaches used in environment scanning:
(1) Systematic Approach:Under this method , a systematic method is

adopted for environmental scanning. The information regarding market and
customer, govt policy, economic, technological and social aspects are
continuously collected. Thus, information which is pertaining to business and
industry is collected regularly to monitor changes and provide proactive
response as a counter act. A firm can obtain information from different sources
(Internal and external-----.) ,butNote>Refer lecture note book for clarification
it should be ensured that the information is reliable and accurate. Hence ,it is important
that information should be verified for correctness before it is processed and decisions are
taken on the basis on it.
(2) Ad-hoc Approach: Under this approach , organization may conduct
special surveys and studies to deal with specific environmental issues from
time to time .Such surveys and studies may be conducted when an organization
has to undertake special projects ,evaluate existing strategies or to devise a new
strategies. A cause and effect relationship is established regarding the specific
problem. This is mainly done through brain storming. Note Refer
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lecture note book for brain storming.

(3) Processed form Approach:To adopt this approach ,organization uses
information in processed form available from different sources both inside and
outside organization. Normally ,the information obtained from secondary
sources is processed and used as per the requirements of business. The main
sources of secondary sources of data are Research papers, records of
companies, government publications,publications by various financial
institutions,formal studies conducted by strategic planners etc.
Topic 11:Factors influencing entrepreneurial

environment:
In any business organization ,there is an internal and external environment. They
comprise all the factors that can affect the growth and success of a business concern.
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The business environment consists of two levels i,e micro environment and
macro environment.
A broad factor analysis assesses and summarizes the five macro –
environmental factors--- Political, Economical, Social &cultural ,Technological,
Legal and Ecological.
(1) Political:It is concerned with general stability of the country in which an

enterprise is expected to perform and the political philosophy of party in
power towards the business. Political forces define the business climate by the
constraints they impose and by the activities they permit. Political factors
include.
(a) Political Philosophy,

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(b) Political Atmosphere, (c) Quality of leadership.

(2) Economical: The economic environment is the sum total of the economic
conditions and the nature of economy in which the business has to operate and
compete. The economic environment will dictate a lot of decisions of the firm.
The size of market will depend on the economic environment. The purchasing
power of the potential customer will also depend on factors of economic
environment like income levels, savings ,credit availability. Following are the
main ingredients of economic environment:
• Economic Condition.
• Economic System.
• Economic Planning.
• Economic Infrastructure.  Capital
• Labour.
(3) Social and Cultural:The social
andcultural environment in which the firm operates can be a major factor in
the success or failure of the firm. This type of environment comprises of many
dynamic factors such as values ,traditions, social attitudes, religion, family
background, education etc.It is very important to understand the social
attributes such that the goods and services are in tandem with the social
environment . Otherwise,the company could face a backlash and run into
losses.
(4) Technological:Technological change generally refers to the
advancement in the production and manufacturing process of different goods
and services. This technological change brings both opportunities and threats
to a business . There is always advantage for assessing the technological
environment and embracing the new technology. On the other side, there is
always threat for remaining static by following existing status quo.
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(5) Legal:A sound legal system is essential to the success of any business .So
the country must have a sound and functioning legal system with laws that
equally protect both consumers and manufactures. An organization is obliged
to follow different laws existing in economy such as: company laws,
consumer laws , royalty law, intellectual property rights laws ,environmental
laws etc.
(6) Ecological:Ecological factors influencing business are connected to
actions and processes necessary to protect natural environment and in the
same time maintain or increase efficiency of the corporation. Ecology often
take form of so called corporate environmentalism i.e the business operations
and methods are eco-friendly.
Topic 13: Process of environment scanning:

Following are the steps in environment scanning:
(1) Identification: It is the first step of environment analysis . Under this step
,the analyst identifies all the environment variables or forces which can
influence the profitability and functioning of the business . Under this step , an
analyst figure out only the relevant information so that the vague, ambiguous
and irrelevant data can be avoided at the beginning.
(2) Monitoring: The next step of this process is to analyze the effect of all the
identified relevant factors on the different aspects of business . After analyzing
these factors ,following outcomes emerge:
• A specific description of all the relevant factors,
• Identification of areas for further and detailed studies, and 
Identification of trend and pattern of the industry.
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(3) Forecasting: Forecasting is important for the identification of future threats

and opportunities, and formulation of plans and strategies accordingly. Under
this step ,environment analyst predicts the future events and their impact on the
basis of data collected. Forecasting covers analysis of all the aspects of
business environment viz PESTLE.
(4) Assessment: In the last step ,all the factors ,identified in previous steps ,are
assessed in terms of their impact on organization’s performance and
profitability. The degree of impact varies from factor to factor. Some factors
provide opportunity while other pose threat to the organization.
Topic 14:Disadvantages / Limitations/Demerits of

Environment Scanning:
Environment Analysis has the following limitations:
(1) Unexpected and unanticipated Events: The future events and

factors which may affect an organization are unpredictable and uncertain.
These events and factors cannot be predicted and quantified accurately.
(2) Part of Strategy Formulation: The environment analysis is only a
part of strategic formulation process which is based on various inputs.
Hence, it does not guarantee the effectiveness of the organization.
(3) Inaccurate Data: The process of environment analysis is based on the
data which is collected for the definite purpose. But it may be possible that
the data used for forecasting or predicting future event is inaccurate which
may lead to the mere wastage of resources instead of getting a desired
objective.
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(4) Involves money and cost: The process of environmental analysis

involves time and money. It is a lengthy process that includes ; identification ,monitoring,
forecasting , and assessment of different factors and environmental variables.
(5) Based on Assumptions: The whole process of environmental analysis
is based on certain assumptions which may or may not be true . There is
basic assumption in forecasting that there is a pattern of happening of an
event. This assumptions may not be held true in all cases.
Topic 15: Market Assessment : Meaning and significance:
Meaning: Market assessment or market analysis is a critical study of the potential,

a new product or service or idea has in the market where it is to be launched. It is a
comprehensive analysis of company’s competitors , consumers and market trends in order
to get the knowledge about the needs of the markets and the barriers and pitfalls he may
face. It is thorough analysis of the market to check the needs and requirements of any new
or existing idea , product , or service before making strategies to start working on it and
investing in it.
Significance or importance:
(1) Decision making technique: Market assessment helps an organization in making
various marketing and promotional decision to provide a supplement in reaching
the desired destination.
(2) Business Planning: Market assessment has a substantial importance while

drafting various business plans. It provides a required amount of information
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regarding various issues such as which opportunity is to be chosen ? What are the
future challenges that the org may come across etc.
(3) Controlling Technique: Marketing assessment is used as a controlling technique

to find the weak spots which needs to be focused upon. Thus market analysis
helps in achieving the proactive behavior for getting the job done in most feasible
and optimal way.
(4) Large scale production: market assessment helps an organization to get the
economies of scale by producing the stipulated amount of products to satisfy the
need and demand of growing market.
(5) Pattern of consumption: With the help of market assessment an organization

and forecast the present and prospective demand of the market. Thus market
assessment helps in getting the idea regarding the pattern of consumption.
Topic 16: Stages in the process of Market Assessment?

Importance of Sensing of environment:
Following are the five stages of market assessment:
(1) Market Need Assessment: This stage is also known as Idea Stage. Under
this stage , an entrepreneur make a detailed analysis of the market in order
to get the substantial information regarding the potential market of a
proposed product .
(2) Market Study: This stage also known as feasibility stage is concerned with
the process investigation of prospective buyers of a product, such as their
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needs and preferences , buying ability, buying behavior and attitude etc. (3)
Market Plan: Also known as development stage .The purpose of a marketing
plan is to ensure that marketing activities are relevant and timely to achieve
an organization's objectives. The focal point of market plan is to decide the
target market to cater, promotion policy to be adopted and distribution channel to
be adopted.
(4) Market Validation Stage: This stage is also known as launching stage. The
aim of this stage is to launch the product in actual market to know the
reaction of different customers . The important benefit of this stage is the
quick response to rectify the market mistakes at the initial stages.
(5) Growth: The objective of this stage is to cater the huge share of market
instead of sticking to a particular location .Thus the aim of entrepreneur is to
enhance the market share by following the important strategies such as
expansion, diversification ,integration etc.
Topic 17 : Methods or Techniques of Market

Assessment?
(1) Market Survey: Market survey is the survey, research and analysis of the
market for a particular product/service which includes the investigation into
customer inclinations. A study of various customer capabilities such as
investment attributes and buying potential. Market surveys are tools to
directly collect feedback from the target audience to understand their
characteristics, expectations, and requirements.
(2) Statistical Method: Under this method of market assessment , some

statistical tools and techniques are used to predict the demand for the
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proposed product. These statistical tools provide quantitative results to the

market related problems. These methods include Correlation analysis,
Regression analysis , time series analysis etc.
(3)Leading Indicator Method: Under this method , an entrepreneur uses

technical analysis in order to predict the market trend and pattern. He uses
different indicators in order know the possible moves in the market .Such as
candlestick chart ,line chart ,bar chart etc.
Topic 18 : Factors affecting identification of entrepreneurial
opportunities?
(1)Entrepreneurial alertness factor: It is a predisposition to observe and be responsive
to information about objects, incidents, and patterns of behavior in the environment, with
special sensitivity to unmet needs and interests, and novel combinations of resources.
Entrepreneurs constantly search about for opportunities that have been overlooked so that
they can be the first mover and take the first mover advantage.
(2) Prior Knowledge: People tend to discover opportunities from the information that is
related to the information they already know. Prior knowledge and experience are the
primary source of searching for opportunities. Entrepreneurs narrowed their search to
areas where they had specific prior knowledge.
(3) Social Networking: Entrepreneurs’ network is vital in opportunity identification.
The main contribution of network to identifying potential venture opportunities is from
information gathered from social exchange of ideas. People with widespread networks
discover more pungent opportunities than those businessmen who do not have social
networks.
(4) Creative Factor: There is a link between creativity and entrepreneurship and are
sometimes refer to be same. Most successful entrepreneurs identify opportunities that
others do not see due to the special creativity attribute they possess. These creative
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attributes has a lot to do in business decision making and therefore very significant in
opportunity- identification process.
Topic 18 : Meaning and Sources of Idea Generation?
Meaning : Idea generation or ideation is the act of forming ideas. It is a creative process
that encompasses the generation, development and communication of new thoughts and
concepts, which become the basis of innovation strategy.
Sources of Idea Generation:

(1) Brainstorming: Brainstorming is a method of generating ideas and sharing
knowledge to solve a particular commercial or technical problem, in which participants
are encouraged to think without interruption. Brainstorming is a group activity where each
participant shares their ideas as soon as they come to mind. At the conclusion of the
session, ideas are categorised and ranked for follow-on action.
(2) Market Research: Market research is the process of systematic
gathering ,recording and analyzing of data about customers ,competitors and the market.
Market research can help to create a business plan, introduce a new product or service,
expand into new markets and so on.
(3) Role Playing: In this technique , the participants take up roles to play. These roles
are different from the ones they usually play. It adds an element of fun and helps in
getting innovative ideas. E.g employees are asked to play a role of customer.
(4) Collection of information: Market information enables an entrepreneur to have the
know how about the market trends, moves current and potential demand etc. Thus a lot of
information about the market can be obtained by different sources such as advertisements,
newspapers, brochures, catalogues etc.
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(5) Collaboration: This technique is self – explanatory. Here an entrepreneur

collaborates with others to come up with ideas. If an entrepreneur collaborate with a
diverse group of people ,there is every likelihood that ideas are unique.
(6)Reverse Thinking: As is very clear from the name itself ,this technique asks us to
think oppositely. Instead of working on the problem in front of us, we work on the exact
opposite of it . This technique helps in getting an overall picture of the problem
concerned.
Topic 19 : Factors affecting selection of an enterprise?

The selection of a suitable form of ownership organization is an important
entrepreneurial decision because it influences the success and growth of a business —
e.g., it determines the decision of profits, the risk associated with business, and so on. As
discussed earlier, the different forms of private ownership organization differ from each
other in respect of division of profit, control, risk, legal formalities, flexibility, etc.
1. Nature of business activity:
This is an important factor having a direct bearing on the choice of a form of ownership.
In small trading businesses, professions, and personal service trades, sole-proprietorship is
predominant. The finance, insurance, and real estate industries seem to be suited to
partnership form of organization. Similarly large chain stores, multiple shops,
superbazaars, engineering companies are in the form of companies.
2. Scale of operations:
The second factor that affects the form of ownership organisation is the scale of
operations. If the scale of operations of business activities is small, sole proprietorship is
suitable; if this scale of operations is modest — neither too small nor too large —
partnership is preferable; whereas, in case of large scale of operations, the company form
is advantageous.
3. Capital requirements:
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Requirement of capital is closely related to the type of business and scale of operations.
Enterprises requiring heavy investment (like iron and steel plants, medicinal plants, etc.)
should be organised as joint stock companies. Enterprises requiring small investment (like
retail business stores, personal service enterprises, etc.) can be best organised as sole
proprietorships. Likewise ,firms which require medium amount of finance should be
organized as partnership firms.
4. Degree of control and management:

The degree of control and management that an entrepreneur desires to have over business
affects the choice of ownership organisation. In sole proprietorship, ownership,
management, and control are completely fused, and therefore, the entrepreneur has
complete control over business. In partnership, management and control of business is
jointly shared by partners. In a company, however, there is divorce between ownership
and management.
5. Degree of risk and liability:
The sole proprietor is personally liable for all the debts of the business to the extent of his
entire property. Likewise, in partnership, partners are individually and jointly responsible
for the liabilities of the partnership firm. Companies have a real advantage, as far as the
risk goes, over other forms of ownership.
Topic 20 : Steps in setting up of an enterprise?

Step1: Self discovery: The first step in the establishment of an enterprise is the self
discovery. Under this step ,an entrepreneur makes his own analysis to understand who I
am ? And what I am capable of? The purpose of business is basically to make profit.
Knowing this, it seems the smartest thing to do in choosing and running a business is
finding a profitable venture that you can do.
Step 2: Opportunity spotting:. After an entrepreneur has made his own analysis, the
next step is to search for different alternatives. The process of identifying opportunity
involves identifying the needs and wants of the customers, scanning the environment,
understanding the competitor’s policy etc. Before setting up a business unit, an
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entrepreneur is supposed to make a detailed investigation of the market to spot the

favorable situations and exploit them as opportunity.
Step 3: Evaluation and selection of alternative: After the identification of

various alternatives, the next step is to make a comprehensive evaluation of each and
every alternative and choose the most feasible and optimal one. A detailed feasibility
study is done in order to determine whether the project is financially, economically and
technically viable or not.
Step 4: Raising of capital : After the most optimal business opportunity is chosen
and its due feasibility analysis is done thereby ,the next step is to raise the required capital
for initiating the business operations. Due care must be given to the fact the sources of
capital should be selected in such a way that overall cost of capital is minimum. Thus it is
appropriate to make a judicious mix of debt and equity for raising the capital.
Step 5: Starting Business and ensuring Growth: The final step is to initiate the
business operations and manage the business operations in such a way that the scarce
resources of the organization are utilized optimally . The business must ensure growth by
having the expansions, diversifications and integrations in order to have the competitive
advantage over the rivals.
Topic 21 : Licensing – meaning and objectives?

Meaning: A license is a written permission issued by the govt. to an industrial
undertaking to manufacture specified articles included in the schedule. In India entry for
starting an industry was not subjected to industrial licensing till the passing of Industrial
Development and Regulation Act (IDRA Act)1951. The IDRA made it compulsory to get
an industrial license for carrying on business . However small scale sector were free from
licensing.
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In year 1969,a new Monopolistic and Restrictive Trade Practices (MRTP) Act was
passed and a new dimension was added to industrial licensing requirements of clearance
under MRTP Act before licensing under IDRA Act.
Objectives: Following are the main objectives of licensing:

(1) To have planned development through appropriate regulations and control.
(2) To get balanced industrial growth & development through establishment of units
in remote areas.
(3) To ensure govt. control over industrial activities in India.
(4) To prevent concentration of industrial and economic power through monopoly.
(5) To protect and promote the small scale sector.
(6) To conserve foreign exchange.
End of First unit
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UNIT 2 ND
Topic 22: Meaning and Features of Business Planning:

Meaning: Planning is a process of deciding in advance the objectives to be achieved and
developing appropriate courses of action to achieve these objectives within a given time period.
Planning is deciding in advance what to do , when to do ,how to do, where to do and who is going to do
the job. It is an intellectual process which lays down an organization’s objectives and acts as roadmap
for reaching to proposed destination efficiently and effectively.
Features of Planning: Following are the main features of planning:

(1)Planning is a Goal Oriented: Planning focuses on defining the goals of the
organization, identifying alternative courses of action and deciding the appropriate action plan,
which is to be undertaken for reaching the goals. Planning seeks to achieve certain activity , thus
it is a purposeful activity. (2)Planning is Pervasive Function: Planning is pervasive in the
sense that it is required at all levels of management as well as in all departments of the
organization .Though scope of planning is different at different levels but it exists every where and in
every type of organization (irrespective of their nature , size and level of activity).
(3) Continuous Function: Planning is an ongoing process , it is a regular and permanent

activity in an enterprise. Thus it goes on without breaks and gaps. An entrepreneur has to plan its
activities regularly in the light of changing environment---it is hence never ending process as the
plans are framed, executed and followed by another plan. (4) Intellectual Process :
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Planning requires application of the mind involving foresight. Planning is an intellectual activity,
which requires logical and systematic thinking rather than guess work. (5) Planning
involves Decision Making: Planning essentially involves choice from among
various alternatives and activities. If there is only one possible goal or a possible course of action, there
is no need for planning because there is no choice.
Topic 23: Importance of Planning: Below given points clearly

disclose importance of planning:
(1)Planning reduces the risk of uncertainty: Planning is an activity, which enables a
manager to look ahead and anticipate changes. Thus it enables an organization to get a picture of
possible future events and situations and draft a counter act -- hence reduces risk of uncertainty.
(2)Removes chaos and confusion: Planning ensures clarity in thoughts and actions and
define comprehensively the authority and responsibility relationship . Therefore, with the help of
planning, everyone is well known about his role and duty, thus eliminates the role ambiguity .
(3)Makes Activities Meaningful: When goals are clearly defined , actions becomes
meaningful. Managers and employees know how their activities relate to the goals of organization.
They understand importance of their activities and relationship among different tasks.
(4) Bridges gap between ability and willingness to do: Planning provides the
standards against which the actual performance is to be measured. These standards are set as per
the individual capacity and ability….thus their remains no room for the chance that there is gap
between ability and willingness.
(5) Planning facilitates decision making: Planning involves setting targets and
predicting future conditions, thus helping in taking rational decisions from alternative courses of
action.
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Topic 24: Steps / Process of Planning:
(1)Setting objectives: Plans are prepared to achieve certain objectives or goals. Therefore, the
first step in planning is to define and describe clearly the objectives of the organization as a whole .
Thus objectives are set for the entire organization and each departments, units and employees. (2)
Developing Planning Premises: Planning is a future oriented activity and the future is
uncertain therefore the managers are required to make certain assumptions while drafting plans for the
organization. These assumptions about the future are called premises, these are the base material upon
which plans are drawn and acts like the boundaries for org.
(3) Identifying alternatives: Once objectives are set, assumptions are made then Managers
must discover all the alternative courses of action which may be used in accomplishment of objectives.
While identifying alternatives , only suitable alternatives must be taken into account(Known as Law of
Limiting Factor). (4) Evaluation and Selection of alternative: Once the alternatives
are identified , the next step is to make detailed evaluation of each and every alternative and select the
best one thereby. While selecting the alternative following elements are considered ; Associated risk,
expected return, cost and benefit analysis etc.
(5) Formulating Derivative Plans: Once the basic plan set ,the next step is to formulate
the derivative / sub plans which can help out in getting the main objective achieved. Example of
derivative plans are policies, rules ,procedures , budgets etc.
(6) Securing Cooperation: Successful implementation of plans require the understanding ,

consent and cooperation of the concerned employees. Thus under this step , formulated plans are
communicated to all employees such that they are aware of what is expected from them and why? (7)
Follow-up Action: After the plans are properly communicated to all the employees , the next
step is to make practical implementation of the plans. This step also includes continuous monitoring of
plans to find out deviations from plans and taking corrective actions thereby.
Topic 25: Limitation of Planning:

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(1)Uncertain Future: As the planning is done for the future and no one is in a position to
determine the future with cent percent assurity . an unexpected and unaccounted event may arise which
may make whole planning null and void.
(2) Little scope for creativity: Top management does planning and middle management
does implementation of plan but they are not allowed to deviate from plan and thus creativity of these
managers get reduced.
(3) Rigidity : In an organization, a well-defined plan is drawn up with specific goals to be

achieved within a specific time but managers may not be in a position to change it. Hence people
remain stuck with their plans , even if there is change in environment .Thus , it makes an organization
rigid. (4) Personal Element : As the planning is done by people , thus their remains a chance
that people may draft plans that may suit their own interests instead of organizational objectives .
(5) Costly Process : Huge costs are involved in terms of time, money and energy in the
formulation of the plan. Detailed plans require scientific calculations to a ascertain data. Sometimes
costs incurred on planning doesn’t justify the benefits derived. Thus planning is a costly process.
Topic 26: Types of Plans:
(1)Objectives: Objectives are the end results, which the management seeks to achieve, by its
operations. They may be designed as the desired future position that the management would like to
reach. The first and foremost step of the planning process is setting organizational objectives. E.g.
Getting 20% return on Investment.
(2) Strategies: It is a comprehensive and integrated plan which indicates the desired future of an
organization ,thus it is a blue print of an organizations proposed destination. Strategies are action
oriented and suitable for specific course of action. e.g selection of distribution channel. It is generally
for long run but is has a short run consequence also.
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(3) Policies: A policy is a general statement that guides decision making. Policies define the
boundaries within which the decisions can be made and directs the actions towards the achievement of
objectives. Objectives indicate the destination and policies provides the roots to achieve them. E.g.
selling goods on cash basis only.
(4) Procedures: Procedures are routine steps, detailing the exact manner in which a work is to
be performed. They indicate which work is to be done in which sequence. The sequence of actions to
be taken are generally to enforce a policy and to attain pre-determined objectives. •E.g. Recruitment
process of a company. (5) Methods: Methods provide the prescribed ways or manner in which a
task can be performed considering the objective. Selection of proper method saves time, money, efforts
and increases efficiency. They serve a uniform norms to guide and control operation and performance.
E.g. Method of charging the depreciation.
(6) Rule: Rules are specific statement that inform what is to be done and what not to be done in
various circumstances. Rules are rigid and doesn’t allow flexibility and thus ensures discipline in the
organization. E.g. ‘No smoking in the office premises’.
(7) Programmes: A programme may consist detailed list of the objectives, policies, procedures,
rules, tasks, physical and human resources that outlines a company .Thus they provide a
comprehensive platform for implementation of different organizational plans. They create a link
between companies current status quo and its proposed destination.
(8) Budget: A budget is a statement of expected results expressed in numerical terms for a definite
period in the future. E.g. sales budget, production budget
Topic 27: Introduction of Project Report:

The project report is a document that contains all information regarding the proposed project. It is
served as a blueprint of all operations to be undertaken for attaining the desired results. The project
report is basically the business plan of action and clearly describes its goals and objectives. It is one
that helps in converting the business idea into a productive venture without any chaos or confusion as it
defines strategies for project execution.
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Information from various aspects like technical, financial, economic, production and managerial are
together constituted in project report for better understanding. It describes all inputs required for the
accomplishment of a project so that they can be arranged accordingly at the right time.
The project report is an essential tool available with management for proper monitoring of operations
and helps them in recognizing any problems. Managers through project reports are able to estimate all
costs of operations and possible profitability of the proposed project.
Topic 28: Meaning of Project Report:

A Project Report is a document which provides details on the overall picture of the proposed
business. The project report gives an account of the project proposal to ascertain the prospects of the
proposed plan/activity.
Project Report is a written document relating to any investment. It contains data on the basis of which
the project has been appraised and found feasible. It consists of information on economic, technical,
financial, managerial and production aspects. It enables the entrepreneur to know the inputs and helps
him to obtain loans from banks or financial Institutions.
The project report contains detailed information about Land and buildings required, Manufacturing
Capacity per annum, Manufacturing Process, Machinery & equipment along with their prices and
specifications, Requirements of raw materials, Requirements of Power & Water, Manpower needs,
Marketing Cost of the project, production, financial analyses and economic viability of the project.
Topic 29: Characteristics of Project Report:
1. Scope: The project report gives a clear picture of what is to be done or to be achieved. It describes
the goals of the proposed project and activities to be undertaken for achieving these goals. 2.
Resource: It shows the means or resources required to meet the desired scope. Project report serves
as the roadmap which tells the direction in which business should go for attaining its goals. 3.
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Time: The project report denotes the standard time required for the completion of each and every
task of the proposed project. When an organization has stipulated time frame for every activity, there is
every likelihood that activities shall be finished in due time .
4. Quality: The project report explains the desired standards to be achieved by the completion of all
tasks. Limit of deviations that can be accepted from these defined standards are also contained in this
report. 5. Risk: Risk is an unavoidable factor associated with every business and needs to monitored
properly. The project report considers all risk factors that may arrive at the completion of the proposed
project and also tells the ways for recovering from these factors and managing them.
Topic 30: Need / Importance / Objectives / Purpose of

Project Report:
1. Selecting Best Investment Proposal: Project report is an efficient tool for analyzing
the status of any investment proposal. It shows the expected profitability and risk associated with the
project and this way helps in choosing the best option.
2. Approval of Project: It is essential for registration or approval purposes of the proposed

project. Different authorities like District industries center, Directorate of industries, Government
departments, etc. require project reports for giving approval.
3. Tracking: The Project report assists in tracking the current activities of the project. It helps
team members and other stakeholders to check the project progress from time to time and helps in
finding out any deviations against the original plan.
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4. Visibility: Another important advantage of having the project report is that it gives full
insight into the project. It gives a clear description of activities to be undertaken and avoids any
confusion or disorder. 5. Risk Identification: Identification of risk is a significant step for the
completion of every project. The project report enables in spotting the risk early and taking all
corrective actions timely. 6. Cost Management: Project report helps in managing the expenses
through regular reporting of all activities. It sets the standard cost of every operation in advance and
helps in finding out any deviation in these costs through tracking of the project.
7. Financial Assistance: It is an important tool for availing financial assistance from financial
institutions or fund providers. The project report enables financial institutions in judging the
profitability of the proposed project and then takes the decision accordingly for approving the funds.
8. Test Business Soundness: Project report helps in testing the profitability and soundness of
the proposed project. It tells the total estimated costs, possible income and risk associated with any
proposal.
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T
opic 30: Contents / Formulation / Requirements of a
Project Report:
Following are the contents of a project report:
1. General Information : A project report must provide information about the details of the
industry to which the project belongs to. It must give information about the past experience, present
status, problems and future prospects of the industry. It must give information about the product to be
manufactured and the reasons for selecting the product.
2. Executive Summary: The project report should indicate the organization structure and
pattern proposed for the unit. It must state whether the ownership is based on sole proprietorship,
partnership or Joint Stock Company. It must provide information about the bio data of the promoters
including financial soundness. The name, address, age qualification and experience of the proprietors
or promoters of the proposed business must be stated in the project report.
3. Project Description : A brief description of the project must be stated and must give
details about the following: Location of the site, Raw material requirements, Target of production,
Area required for the work shed, Power requirements, Fuel requirements, Water requirements,
Employment requirements of skilled, semi-skilled and unskilled labour, Technology selected for the
project, Production process, Projected production volumes, unit prices,
4. Marketing Plan: The project report must clearly state the total expected demand for the
product. It must state the price at which the product can be sold in the market. It must describe the
mode of distribution of the product from the production unit to the market. Project report must state the
following: Type of customers, Target markets, Nature of market, Market segmentation, Future
prospects of the market, Market share of proposed venture, Demand for the product in the local,
national and the global market, distribution channels to be used for distributing the product etc. . 5.
Capital Structure and operating cost : The project report must describe the total capital
requirements of the project. It must state the source of finance, capital structure(Debt & Equity mix)
and its associated costs and terms. Working capital requirements must be stated and the source of
supply should also be indicated in the project.
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6. Financial Aspects: In order to judge the profitability of the business a projected profit and
loss account and balance sheet must be presented in the project report. It must show the estimated sales
revenue, cost of production, gross profit and net profit likely to be earned by the proposed unit. In
addition to the above, a projected cash flow statement must be prepared to know inflow and outflow of
cash. Break- even point and rate of return on investment must also be stated in the project report. Thus
project report must state whether the business is financially and economically viable.
7. Technical Aspects: Project report provides information about the technology and technical
aspects of a project. It covers information on Technology selected for the project, Production process,
capacity of machinery, pollution control plants etc.
8. Project Implementation : Every proposed business unit must draw a time table for the
project. It must indicate the time within the activities involved in establishing the enterprise can be
completed. 9. Social Responsibility: The proposed units draws inputs from the society. Hence
its contribution to the society in the form of employment, income, exports and infrastructure. The
output of the business must be indicated in the project report.
Topic 31: Meaning of Project Appraisal:
Project appraisal is the structured process of assessing the viability of a project or proposal. It
involves calculating the feasibility of the project before committing resources to it. It is a tool that
company’s use for choosing the best project that would help them to attain their goal. Project appraisal
is a cost and benefits analysis of different aspects of proposed project with an objective to adjudge its
viability.
Project appraisal is a tool which is used by companies to review the projects completed by it. This is
done to know the effect of each project on the company. This means that the project appraisal is done
to know, how much the company has invested on the project and in return how much it is gaining from
it.
Project appraisal means the assessment of a project. Project appraisal is made for both proposed and
executed projects. In case of proposed projects , project appraisal is called “ex-ante analysis” and in
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case of executed projects , it is called “ Post -ante analysis”. Therefore , project appraisal is a tool
used by firms to know the viability and feasibility of project.
opic 32: Methods / Elements of Project Appraisal:
1. Financial Analysis: The purpose of financial analysis is to identify the characteristics and
to determine the financial feasibility of a project. Such analysis involves estimates about project costs
and revenues and the funds required for the project. It seeks to find out whether the project will
generate revenues to realize the ultimate objective for which it is undertaken.
2. Economic Analysis: Under Economic analysis , the aspect highlighted include

requirements for raw-material, level of capacity utilization, anticipated sales , anticipated expenses and
the probable profits.
3. Market/Marketing Appraisal: In marketing appraisal the emphasis is on ascertaining

the demand projections of the business under perusal. The examination of whether the demand
projections are in tune with the ground reality is done. Further, the adequacy of the marketing
infrastructure is assessed by evaluate the distribution network, transport facilitates, stock levels,
promotional efforts etc. 4. Technical Appraisal: In this the focus is on the technical aspects. It
is basically an appraisal of the technical feasibility ascertained by the entrepreneur. In this the overall
appraisal of the technology and the manufacturing process, location decisions, decisions related to
plant and machinery, and also the raw materials and other inputs is done.
5. Social Analysis: The proposed units draws inputs from the society. Hence its contribution to
the society in the form of employment, income, exports and infrastructure is analysed. This aspect also
includes Ecological analysis in order to appraise the environmental effects of proposed project.
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Topic 33: Common Errors in Project Report Appraisal:

Following are the errors which generally arise while formulating the project report:
(1) Product selection: It is noticed that many a times entrepreneurs do commit a mistake of
selecting a wrong product for their enterprise. They randomly choose product without considering
about its market potential, future growth, availability of raw-material, labour, technology etc.
(2) Capacity Utilization Estimates: The entrepreneurs usually make over-optimistic

estimates of capacity utilization. Their estimates are based on a completely false premises. The
estimates are made in complete disregard of present – enterprise performance, prevailing market
conditions etc. (3) Market Study: Product production is ultimately meant for eventual sale.
Hence, market study of the product assumes a great importance as it gives the idea about proposed
demand and supply. But entrepreneurs might bypass this crucial element , and ignore this task and put
their firm into dark world of risk and uncertainty. (4) Location Selection: Many a times
entrepreneurs choose such kind of location site for their business where from they can avail different
financial incentives, subsidies and concessions by Govt. for commencement of business disregarding
other factors like market, raw-material and manpower availability.
(4) Selection Of Ownership Form: Many enterprise fails because they choose inappropriate
ownership type for their business .
Topic 34: Objectives of Project Report Appraisal:

Project appraisal a major tool for an analysis of any proposed project. If helps in identifying the
projected costs and estimated profit with the following objectives :
1.To identify the probable costs and anticipated profit from the project underway.
2. To finally realize the ultimate goods of the project.
3 . To collect various relevant information on the basis of which the success or failure of project be as
curtained.
4. To make Assessment of a project in terms of its economic, social and financial viability
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T
5. To apply standard yardsticks for determining the rate of success or failure of a project.
6. To arrive at specific conclusions regarding the project.
7. To select suitable technology
8. To determine the requirement different resources such as capital, machinery, manpower, material
etc.
9. To mobilise the capital in most efficient and effective manner
opic 35: What is feasibility report ? What are Content of

scope to feasibility report:
A feasibility report is a written document which is prepared in order to judge the viability of the
proposed project. It involves some form of consultation with different stakeholders in order to get
valuable opinion and advise. It is research based evaluation of different alternatives and selecting the
most feasible one such that strategic fit can be achieved. Thus it is based on the philosophy of
modelling and testing of alternatives, and choosing the optimal one.
A feasibility study is an analysis that considers all of a project's relevant factors—including
economic, technical, legal, and scheduling considerations—to ascertain the likelihood of completing
the project successfully.
Contents of scope of Feasibility report:
(1) Drafting Organisation and executive summary.
(2) Determining and evaluating Market Potential of proposed
project.
Discussed
(3) Resource requirement. Discussed inin
previous
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(4) Technology previous Topics Topics

(5) Standard time of completion
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The miracles take a little longer SHAFI SIR

(KU Entrance Topper)

Topic 1:Introduction of Entrepreneurship:

Topic2: Characteristics or features or competencies of

Following are the main characteristics of an entrepreneur:

(A) Innovative:Innovation means creating something new or enhancing value

(B) Risk Taker:Risk means Variability in expected return. Starting a new

(E) Leadership:An entrepreneur has to issue orders and instructions and

Topic 3:Entrepreneurial opportunities : Meaning .

Thus Entrepreneurial opportunity is an idea that can be economically exploited and

Entrepreneurial opportunity is the point at which identifiable consumer demand meets

Topic 4 : Elements / Factors/ Criteria for choosing an

Following are the basis for selecting entrepreneurial opportunity:

(1) Assured Market Scope: Before selecting a particular opportunity ,an

(2) Attractive and Acceptable Rate of Return:Perhaps profitability

(3) Practicability of Idea:Another important criteria for selecting a particular

(4) Potential Future Growth:Growth potential is an organization’s future

(5) Ability of anEntreprenuer to encash it:Success of a particular

Topic 5: Sensing of Entrepreneurial Opportunity:

Importance of Sensing of environment:

(1 )Helps to findout real problem and demand of

(2) Determining the performance of existing

(3) Supports to determine the financial requirement

(4) Helps to get knowledge about the potential growth

Topic 6: Factors / Elements involved in sensing of

Factors of sensing of entrepreneur opportunity

Ability To Perceive Ability To Harness different

(A) Ability to Perceive and preserve basic idea: Spotting of an

(a) Problems:When an idea revolves around a problem faced by the people

(c) Invention: Inventions include creating new things of value as well as

(d) Competition:Competition is the situation in which two or more parties

(B) Ability to harness different sources of knowledge and

Entrepreneur must creatively identify the proposed idea to provide a creative

Topic 7: Process / steps in sensing of entrepreneurial

(A) Opportunity Spotting:Under this step ,an entrepreneur performs the

(C) Innovation and Product:After the evaluation of different potential

(D) Project Business:Thisstepis concerned with commencement of a proposed

Topic 8 : Key Roles of an Entrepreneur:

(3)Promotes Capital Formation:Entrepreneurs promote capitalformation

Topic 9: Environment Scanning: Meaning &

Environment Scanning is the careful monitoring of an organization’s internal and

Environmental Scanning is a research process in which business collects all types of

Environment scanning is a concept from strategic management by which business

Importance of Environment Scanning:

(2) Early Warning Signals:Environment awareness serves as an early warning

(3) Strategy formulation and decision making:Environment

(4) Environmental analysis / coping with

(5) Continuous learning and public image:Environmental

Topic 10: Approaches of environment scanning:

(1) Systematic Approach:Under this method , a systematic method is

lecture note book for brain storming.

Topic 11:Factors influencing entrepreneurial

(1) Political:It is concerned with general stability of the country in which an

(a) Political Philosophy,

(b) Political Atmosphere, (c) Quality of leadership.

Topic 13: Process of environment scanning:

(3) Forecasting: Forecasting is important for the identification of future threats

Topic 14:Disadvantages / Limitations/Demerits of

(1) Unexpected and unanticipated Events: The future events and

(4) Involves money and cost: The process of environmental analysis

Topic 15: Market Assessment : Meaning and significance: