UNIT 4: ENTREPRENEURIAL SKILLS

Q1. Who is an entrepreneur?

An entrepreneur is a person who establishes a business or a venture that generates some value
to the customer & proves to be profitable for him.
Q2. What is entrepreneurship?
Entrepreneurship can be described as starting a business by using the resources available to a
person.
Q3. What is the relationship between an entrepreneur and society?
An entrepreneur needs a society to establish a business and at the same time society cannot
function without the presence of entrepreneurs.
Q4. What are the qualities / characteristics of a successful entrepreneur?
1. Leadership: An entrepreneur is essentially a leader. They have to lead a team
for achievement of goals.
2. Risk taking: Business risks are unpredictable but still an entrepreneur, with rational
planning and firm decisions bears the risks.
3. Goal - oriented: Entrepreneur is goal oriented. He sets a goal to achieve. After reaching
one goal he proceeds to another goal.
4. Decision –maker: Entrepreneur is regarded as decision maker. He has to take
many decisions to put his business idea into reality.
5. Highly optimistic: A successful entrepreneur is always optimistic and is not disturbed by
the present problems faced by him.
6. Create a new method, idea or product
Q5. What are the role / functions / significance / characteristics of a
successful entrepreneur?
1. Great achievers: Entrepreneurs are high achievers. They are willing to work hard to
achieve something.
2. Reinventing organization: An entrepreneur continuously works to reinvent his
organization.
3. Job creation: Entrepreneur creates job opportunities for the youth. He is the founder
of small scale units, which creates jobs in society.
4. Visionary leader: An entrepreneur has a good vision and sense of mission.
5. Economic prosperity: Entrepreneurs create jobs, wealth and capital in the country.
6. Managing the business
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7. Divide income
Q6. Give few myths and reality of entrepreneurship.
S. No. Myths
1 It is easy to start a business.
2 Lot of money is needed to start a new
business.
3 A startup cannot borrow from banks.
4 Talent is more important than industry.
5 Most startups are successful.
6. Every business idea needs to be unique
or special.
7. Only a person having a big business is an
entrepreneur.
Reality
Starting successful business is very
difficult and challenging.
Business can be started with limited
money. In the beginning you can hire
space and equipments.
You can raise loans from banks.
The nature of industry chosen by an
entrepreneur has a great effect on
success and growth.
Large percentage of startups fails.

8. Entrepreneurs are born, not made.

Q7. Give advantages of entrepreneurship as a career.

The main advantages of entrepreneurship as a career are as follows:
1. Independence: An entrepreneur is his own boss. He can take all decisions himself.
2. Excitement: Entrepreneurship involves adventure. Some people resign their well paid
jobs and launch their own business due to excitement.
3. Freedom: Entrepreneurship allows the freedom to try out one’s own ideas.
4. Wealth creation: Successful entrepreneurs create enormous wealth for themselves and
their staff.
5. Status: Success in entrepreneurship brings considerable fame and prestige.

Q8. Give disadvantages of entrepreneurship as a career.

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 1. Risk 2. Hard work 3. Uncertain income
4. Problem of finance 5. Incompetent staff
Q9. A person who becomes an entrepreneur goes through a career process. Explain.
1. Enter - When an entrepreneur is starting, they are just entering the market to do business.
2. Survive - There are many entrepreneurs in the market. The entrepreneur has to remain in a
competitive market.
3. Grow - Once the business is stable, an entrepreneur thinks about expanding his or her
business.
Q10. What is entrepreneurship development? What are its objectives?
Entrepreneurship development is the process of strengthening the skills and knowledge of
new and existing entrepreneurs. It involves various training programs, which empowers them
to run their business effectively and efficiently.
Objectives of entrepreneurship development are:
1. Developing the motivational needs of entrepreneurs.
2. Training entrepreneurs to develop the required skills and gain knowledge for running
and managing a new business.
3. Supporting entrepreneur in creating effective business plans.
4. Providing financial help from banks and other financial institutions.

Q11. What is the role of society in boosting entrepreneurship?

Society plays a role in boosting entrepreneurship by:
1. Creates needs & demands
2. Provides raw materials
3. Enables financial support
4. Creates a need for education
5. Supports infrastructure development.
Q12. Define the meaning of a career.
A career is a line of work that a person takes for life.
Q13. What are the different types of employment to earn our living?
There are two ways in which one can earn a living:
1. Wage employment: Wage employed people are people who work for a person or an
organization and get paid for that work.

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 2. Self-employment: Self-employed people are those who start businesses to satisfy the needs
of people. A self-employed person is always trying to make his/her business better by
taking risks and trying new ideas is an entrepreneur.
For example, a doctor who works for a hospital is a wage employed person. If the same doctor
has their own clinic, he or she is a self-employed person.
Q14. Differentiate between businessman and entrepreneur using an example.
Businessman: Self-employed people who start businesses to satisfy the needs of people.
Entrepreneur: A self-employed person who always try to make his/her business grow by taking
risks and trying new ideas. An entrepreneur is a person who does whatever it takes to make the
business successful.
Example: Ramya and Ramu both own plant shops.
Ramu sits at his shop every day. When customers come, he sells to them.
Ramya walks around and gets customers to her shop. She also sells seeds and flowers with her
plants. Ramya is working to do more and grow her business. She has also added a different idea to
her business.
So, Ramya is an entrepreneur and Ramu is a businessman.
Q15. How entrepreneurs help in the growth of the society around them?
OR
what do entrepreneurs do when they run their business?
Entrepreneurs help in the growth of the society around them in the following manner:
1. Fulfil Customer Needs: Demand means a product or service that people want.
Entrepreneurs find out what people want. Then, they use their creativity to come up with a
business idea that will meet that demand.
2. Use Local Materials: Entrepreneurs use the material and people available around them, to
make products at low cost.
3. Help Society: Entrepreneurs have a positive relationship with society. They make profits
through activities that benefit society. Some entrepreneurs work towards saving the
environment, some give money to build schools and hospitals. This way, the people and
area around them becomes better.

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 4. Create Jobs: With the growth of a business, entrepreneurs look for more people to help
them. They buy more material, and from more people. They also hire more people to work
for them.
5. Sharing of Wealth: Wealth means having enough money to live a comfortable life. As
entrepreneurs grow their business, the people working for them and in related businesses
also grow.
6. Lower Price of Products: As more entrepreneurs sell the same product, the price of the
product goes down. For example, when more mobile phones were getting sold in India, the
cost of the phone became lesser.
Q16. Role of entrepreneurs in society by reading Bharti’s story.
Bharti, the Jewellery Queen
Bharti is a young woman from Bihar. Many girls in her area like to wear earrings. She buys jute
from a farmer and makes earrings from that. Her business is called Manavi Natural Handicrafts.
She sees that most women in her village do not work. So, she hires two women to help her. As her
orders increase, she buys more jute. She hires three more women to work for her. The farmer, and
the women working for her now earn more money. They are able to save money for their future.
• Do you think Bharti is an entrepreneur?
Yes, she tried to make her business grow by identifying the needs of the society and fulfilling
them by expanding her business.
Tick the correct answer for each question.
1. What demand did Bharti identify in her village?
(a) People in her village wanted Jute
(b) Girls in her area liked to wear earrings
(c) The villagers wanted more water
2. What is the local resource that Bharti used?
(a) Jute (b) Water (c) Sand
3. How is Bharti helping her village grow?
(a) By buying jute from the local farmer who can now earn more money
(b) By providing jobs to local women
(c) Both (a) and (b)
4. How was she creating more jobs?
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(a) By selling earrings to women without a job
(b) By buying jute from the local farmer
(c) By providing jobs to local women
Q17. What is the difference between a misconception and reality? Give an example.

A myth, or a misconception, is a false belief or opinion about something.

Reality is the state of things that exists, is real.

For example, if we think tall people run faster than short people, we have a misconception. It is
not true. The truth is that short people can also run fast.

Q18. Write against the option if the business idea is of self-employment or wage
employment.

(a) Cooking in a restaurant - wage employment

(b) Owning a clothing business - self-employment

(c) Having a dosa selling stall - self-employment

Q19. Match each story below with the misconception about entrepreneurship.

Ans: Story 1 --- (c)

Story 2 --- (b)
Story 3 --- (a)
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Q20. Match the columns:

Ans:
1. Grow
2. Survive
3. Enter
Q21. State whether the following statements are True or False
1. Entrepreneurs can create jobs in the market. True
2. When many entrepreneurs sell mobile phones in a market, the prices of phones increase. False
3. Entrepreneurs identify a need in the market and build a product or service for it. True
Q22. A. Here are some stories of some entrepreneurs. Tick the option for the quality they
are showing.
1. Ravi’s customer comes to his store and starts shouting at him. He does not get angry. He
listens to what his customer is saying. He is ____________.
(a) hardworking
(b) confident
(c) patient
(d) prying new ideas
2. Susheela decides to sell her company tyres in Sri Lanka. It does not sell and she has a loss.
She apologises to the people who work for her. She says she will plan better next time. She
_______________________.
(a) takes responsibility for your mistakes
(b) think before making decision
(c) does not give up
(d) is creative
3. Ali has a diamond factory. He pays his employees on the 1st of every month.
(a) Creates a new product
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(b) Manages the business
(c) Takes risk
4. Mary buys bulbs for her business from Noida. She learns that bulbs are cheaper in
Faridabad. So, she decides to start buying bulbs from there.
(a) Makes decisions
(b) Divides income
(c) Takes risk
5. Rehnuma has two people who work for her. Every day, she spends one hour with them to
learn about what they’ve done that day.
(a) Creates a new product
(b) Divides income
(c) Manages the business

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