Chapter ll

LITERATURE REVIEW

This chapter provides discussion and details about Sentiments of student

entrepreneurs. This review is made to provide ideas, explanations, and guidance

to people, especially students and readers of this research how a Students

entrepreneur runs their own business despite struggles and how to overcome

them.

Entrepreneurship

The capacity and willingness to develop organize and manage a business

venture along with any of its risks in order to make a profit. The most obvious

example of entrepreneurship is the starting of new businesses. In economics,

entrepreneurship combined with land, labor, natural resources and capital can

produce profit. Entrepreneurial spirit is characterized by innovation and risk-

taking, and is an essential part of a nation's ability to succeed in an ever

changing and increasingly competitive global marketplace. Entrepreneurs are

frequently thought of as national assets to be cultivated, motivated, and

remunerated to the greatest possible extent. Great entrepreneurs have the ability

to change the way we live and work. If successful, their innovations may improve

standards of living, and in addition to creating wealth with entrepreneurial

ventures, they also create jobs and contribute to a growing economy.

Entrepreneurship is important for a number of reasons, from promoting social

change to driving innovation (Shobhit Seth, 2019).

Entrepreneurial Strategies

In today’s ever changing business climate, an entrepreneur can easily

become overwhelmed. It’s vital, though, to stay focused on your goals for the

company. Even with a firm strategy in place, every entrepreneur should do these

six things to clear a path to success: First is to Study the competition. As an

entrepreneur, you need to know who your competitors are. You also should

understand the rival product or service that is being offering. This knowledge will

help you better market your product or service to stand out, perhaps even using

your competition’s weaknesses to your advantage. Second is to conserve cash

no matter how good business is. Frankly put, live as cheaply as possible.

Entrepreneurs should be as conservative with their money as possible to be able

to deal with any rough patch that arises. Conserving several months' worth of

operating expenses in the bank will help you survive most unforeseen

circumstances. Third is to research new products and services. Understand

emerging products or services on the horizon that could improve your business.

Fourth is to listen to customer feedback and adapt. Salespeople know the adage

"always be closing," referred to by the acronym ABC. Entrepreneurs have an

acronym, too: Always is adapting, or ABA. But entrepreneurs can evolve their

business only when they're listening to customer feedback. It may not mean

much if one customer doesn’t like your product but if this is true for many of them

and they're requesting another feature, listen and be ready to adapt. Whether
you're adapting your marketing plan, simplifying a product or responding to new

trends, pay attention to customer feedback. Last is to respond to change. In

business change is inevitable and those capable of responding are flexible and

versatile. An entrepreneur must be prepared to accept change and adapt

business operations accordingly. Be flexible. If a shift in your product or service is

warranted, don't be left behind. Realize from the start that where you are is likely

not to be where you’ll end up. A lack of adaptability can result in loss in

customers, profits and even business failure. As an entrepreneur, understand

that the world is evolving rapidly. Even a company founded a year ago could

change the world today (Timothy Sykes, 2017).

Entrepreneurial Skills of Student

Entrepreneurial skills are to be inculcated from various dimensions and

one way is to build it as part of the education system. Entrepreneurship skills

should be developed as life skills rather than an economic activity. Knowing that

entrepreneurship skills are to be inculcated in students, for the betterment of the

individual and the society, the next question that rises is, "What are the

entrepreneurship skills that needs to be built in students?" There are four

categories of entrepreneurship skills sets: First is Entrepreneurship skill, these

help us to recognize the economic opportunities and act upon them. This

includes inner discipline, ability to take risk, being innovative, change-oriented

and persistence. Second is Technical skill, these help in producing a successful

business product or service. The technical skills that are to be backed up for a

successful entrepreneur includes operations specific to industry,

communications, design, research and development, environmental observation.

Third is Management skills, these are the ones that help in administering the

company and helps in day-to-day management of the company. The

management skills that are required are planning, decision making, motivation,

marketing, finance and selling. Personal maturity skills: These include self-

awareness, accountability, creativity and emotional skills. To conclude, it does

not mean that every individual is to turn into an entrepreneur, but it is essential

that each and every individual develops the entrepreneurial skills within, in order

to succeed in the various endeavors of life. Thus it is vital to build

entrepreneurship thinking skills in students from their school age (Adam Hayes,

2019).

Entrepreneurs Create Social Change

Through offering unique goods and services, entrepreneurs break away

from tradition and reduce dependence on obsolete systems and technologies.

This results in an improved quality of life, improved morale, and greater

economic freedom. For example, the water supply in a water-scarce region will,

at times, forces people to stop working to collect water. This will impact their

business, productivity, and income. Imagine an innovative and automatic pump

that can fill people's water containers automatically. This type of innovation

ensures people are able to focus on their jobs without worrying about a basic

necessity like water. More time to devote to work translates to economic growth.

For a more contemporary example, Smartphone and apps have revolutionized

work and play across the globe. Smartphone are not exclusive to wealthy
countries or people. As the growth of the Smartphone market continues,

technological entrepreneurship can have a profound, long-lasting impact on the

world. Moreover, the globalization of technology means entrepreneurs in lesser-

developed countries have access to the same tools as their counterparts in richer

countries. They also have the advantage of a lower cost of living, so a young

entrepreneur from an underdeveloped country can compete with a multi-million-

dollar existing product from a developed country. Entrepreneurs are frequently

thought of as national assets to be cultivated, motivated, and remunerated to the

greatest possible extent. Great entrepreneurs have the ability to change the way

we live and work. If successful, their innovations may improve standards of living,

and in addition to creating wealth with entrepreneurial ventures, they also create

jobs and contribute to a growing economy. Entrepreneurship is important for a

number of reasons, from promoting social change to driving innovation Shobhit

Seth, (2019).

Entrepreneurs Add to National Income

Entrepreneurial ventures help generate new wealth. Existing businesses

may remain confined to existing markets and may hit the glass ceiling in terms of

income. New and improved products, services or technology from entrepreneurs

enable new markets to be developed and new wealth to be created. Additionally,

increased employment and higher earnings contribute to better national income

in the form of higher tax revenue and higher government spending. This revenue

can be used by the government to invest in other, struggling sectors and human

capital. Although it may make a few existing players redundant, the government
can soften the blow by redirecting surplus wealth to retrain workers.

Entrepreneurs are often thought of as national assets to be refined, motivated

and remunerated to the greatest possible extent. Entrepreneurs can change the

way we live and work. If successful, their revolutions may improve our standard

of living. In short, in addition to creating wealth from their entrepreneurial

ventures, they also create jobs and the conditions for a flourishing society.

Entrepreneurship capital is defined as "a region's endowment with factors

conducive to the creation of new businesses" and it exerts a positive impact on

the region's economic output. Regions with a higher level of entrepreneurship

capital show higher levels of output and productivity, while those lacking

entrepreneurship capital have a tendency to generate lower levels of output and

productivity. The impact of entrepreneurship capital is stronger than that of

knowledge capital. Evidence indicates that entrepreneurial capital plays a very

important role in the production function model presented (Rahul Baijal, 2016).