UNITV ENTREPRENEURSHIP SKILLS ENTREPRENEURSHIP sKILLS

INTRODUcION
Qieat
wealth entwithiepeneur have the ablily to change the
entiepteneurial ventues,they also creale wayjobswe livecontribute
and work In addition to creatirng
1.1ENTREPRENEURSHIP AND 8OCIETY
Ihe role of an
comforta entiepieneur
and luxurious ia of much
and to a growing
economy.
the giowh of the living to the peopleslgnioffal cance in generating products
particular country.
valuable for providing
ntional income aa well as ralsing the per capita Income
An entiereneur affecta Entrepreneur
of the
plays avital role in
our aoolely inmany ways people.
1) Entrepreneure are
lnovatora
Technology la ohanging very fast, so it leaves an impat on the
nation's workforce.
Enttepreneura observe these ohanges very well and try to fill the gap. (e
hegative consequencea and the lossOB of s0me They see the aja

they occupations
sernse opportunitles in the new landscape. As a result,caused by technology., but
Croate hew products and servicos, Entrepreneurs don't entrepreneurs innovate. They
stop with just innovating one
product or service. They find lated products. They grow by developing new markets.
2) Entrepreneurs croato jobs
As entrepreneurs start new businessos, they need to hire employees. These new
companies provides various types of jobs to the people around. Entrepreneurs create
entirely new industries and opportunities for employment. Zomato and Swiggy are some of
the examples where lookingat the aspect that people are too busy and does not find much
time to go to a restaurant after getting tired, so they made the home delivery of food
possible to people in an economical way. Various delivery boys were hired for providing
delvery to the people.

3) Entroprenours raise Standards of Living

Entrepreneurs see a need in the marketplace and use their innovative talents to find a 6
solution. They start a new business and hire employees. The workers earn an income,
which they spend in the local economy. Allof this creates wealth for the population and
raises the standard of living for everyone involved. Studies from economists show that
increases in productivity improve the standard of living for a population. The process of
entrepreneurship leads to higher productivity.

4) Entreprenours bring Changos in a Socioty/Community societal issues.They build

Socialentrepreneurs apply their innovative instincts toimportant
health problems and financial
profitable businesses that deal with hunger, education,
people with the lowest economic
literacy. Innovators create businesses that target the most to local charities, volunteering
giving
stalus. Entrepreneurs invest in community projects byand building houses. They sponsor
working at kitchens
for food drives or may be by These community-minded businessmen may
green spaces and parks.
cleanups to create and roadway maintenance.
even continue to make donations for park

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1.2
ENTREPRENEURSHIP
An economy can be
It follows a detined
AND ECONOMY
as a general area of
simple rule of demand and
ENTREPRENEURSHIP SKILLS
entrepreneur production, distribution, trade and
comes into action to supply. As soon as a need
important functions an efficiently and profitably satisfyis this
recognized in theConsumpt ioann.
society,
entrepreneur fulfils in the economy: need. Let us see some
1)
Entrepreneur's Contribution
GDP refers to the to the GDP
monetary value of all final goods and
during a specified period services
the entrepreneurs of that time usually a year. These goods and produced
of in an economy
particular economy. In a fast growing services are provided by
entrepreneurs vital role in producing the optimum
play a economy like India, the
response to the demand by the people. If
amount of products and services in
be solely
dependent on the imports and there were no entrepreneurs, the country would
adversely affected. Therefore, the economymultinational
its GDP generation. is hugely companies onand the GDP would be
dependent the entrepreneurs for
2) Foreign
Exchange Earnings
Industries like the handloom and
domestic requirements but also tomany other industries produce
export these goods and earn goods not only to meet the
for the country. This adds to valuable foreign exchange
the economic growth of the
country.
3) Tax Generation
More employment to the people also
This helps the government increase results in more taxable income for the
govenment.
their tax revenues that which they use
development of the for the
country and improve the standard of living of the people.
4) Entrepreneurs help other Industries in the Economy
A-lot of industries use the products of other industries as a raw
material for their finished
products, thus generating even more goods and services as well as more revenue.
1.3 HOW ENTREPRENEURSHIP CONTRIBUTES TO AN INDIVIDUAL
The contribution of entrepreneurship to economy and society directly and indirectly affects an
individual also the working style and thought process of an individual are affected by entrepreneur
toa large extent. Let us understand how an individual is affected by an entrepreneur.
1) Entrepreneurship help fulfilall the customer needs and luxuries in society.
2) Entrepreneurship leads to more stability and a higher quality of community life.
3) Minorities, migrants, and women are safely integrated into entrepreneurship that will help to
develop a well-composed society.
time to time
4) Entrepreneurs also help individuals by solving many problems which they face
by meeting their demands.

1.4QUALITIES OF A SUCCESSFUL ENTREPRENEUR

insatiable thirst
"Being an entrepreneur means to have an
He famOus quote of Richard Branson, one end goal." So as per Branson, ever
and creating. There is simple no
for learning, evolving entrepreneurship. Qualities are:
requirement of
learning and evolving is the key
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 CLASS X

1)
Disciplined:
toward the Successfulof entrepreneurs are ENTREPRENEURSHIP SKILLS
2) achievement their objectives.
Open Minded: disciplined enough to take steps every day
Entrepreneurs
opportunity. They realize that
their goals to achievehave the ability to look at every event and situation is a business
3) higher.
Self-Starter: Entrepreneurs everything around them and focus it toward

themselves. They know that if something

4) set the parameters needs to be done, they should
make sure that projects follow that path. start
and it
Determination:
Entrepreneurs
make allof their endeavors do
not get upset by their defeats. They are
determined to
5) Passion: Passion is succeed, so will try and try
the most important trait of again until t oo.
the successful
WIling to put in those extra hours to make entrepreneurs.
the business succeed because They are
business gives which goes beyond the there is a joy their
1.5MYTHS
money.
ABOUT
EnTepreneurship term ENTREPRENEURSHIP
as a
VIewpolnts that there are quiteencompasses
so many different
personalities, businesses ana
a few myth about what
some common myths of exactly it requires. Let us now highiight
entrepreneurship:
1) Entrepreneurs are born That Way: One of the biggest myths is that
"Dorn that way", usually referring to certain skills they entrepreneurs are
have or the essential need to start a
Company. It is true that some people are born with
skills like being good at public speaking or having a traits that aid their entrepreneurship
before implementing, but in reality, these natural traitsnatural inclination for planning things
still need to be practised and it is
possible to acquire the necessary skills to become a
what you are born with. successful entrepreneur regardless of

2) All you need is aGreat ldea to be a

Successful
usually the foundation of aprofitable and successful Entrepreneur: Indeed, a great idea is
end up failing if they are not properly supported and
business but even the best ideas can
but execution is by far more important, even implemented. Great ideas can be good
average ideas are profitable if executed
properly.

3) Entrepreneurship is an easy way to get Rich:

building Entrepreneurship can be seen as a wealth
process. However, the money that stands to be made
Seen as 'easy' because it usually takes a lot cannot be made the focus or
of dedicated time and effort before
entrepreneurs get the fruits of their labour.
4) Entrepreneurs are their Own Boss: An entrepreneur is his or her own boss but this is
usually misinterpreted to mean entrepreneurs do not have people to answer to, which is a
false notion. For instance, entrepreneurs have to answer to investors if they get external
funding and to some degree, they also have to answer to their employees because they
need to be kept happylsatisfied for the sake of the company. Furthermore, all entrepreneurs
have to answer to their customers. Customers are the most important asset of any business
because customers decide whether a business is satisfying their needs or not.
I3)
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1.6 ROLE OF AN ENTREPRENEUR ENTREPRENEURSHIP SKILLS
All entrepreneurs have
common characteristics and decide to become an
factors or circumstances in tneir lives which made entrepreneur due to the
andoperate a successful business, these them think the way they do their work effectively
are the same as the basic managerial roles,entrepreneurs
like:
should perform certain roles. These roles
1) Innovator or creator:An entrepreneur either develops or
some problems or innovates the use of available creates a product as a solution to
resources in a different way to asolve
problem.
2) Cashflow management: This is essential for the business to
survive. Delays in payment
from customers on one side, and on the other side paying employees, vendors, debt
repayment and office bills can affect small businesses survival.
3) Time management: Owners have to play multiple roles and wear many hats. It's
challenging to plan and balance the time between different roles.
4) Delegation of tasks and authority: Delegating tasks and authority, and getting output
involves people skils, which an entrepreneur must be good at.
5) Decision making: Entrepreneurs make hundreds of decisions every day. It can be stressful
to take the right decision at the right time.
6) Understand the risks involved: An entrepreneur should understand the risks involved and
should be able to bear them too.
7) Taking risks and mitigation: This takes some foresightedness and planning in advance so
that calculated risks are taken for the advantages of the business.

1.7 ENTREPRENEURSHIP AS ACAREER

Entrepreneurs are independent-minded, innovative business people who have various skills,
professional,
which make them self-starters. An entrepreneur can be an artist, educator,
Entrepreneurial careers can be
homemaker, businessman, service sector worker or an inventor.
organization.
found (or created) in just about every field, industry and
choice as a career by asking the
Let us find how to evaluate that entrepreneurship is the right
following questions from yourself:
Ambition: As an entrepreneur, Imust find what my ambition of life is. What |
1) What is my
What will give me utmost satisfaction in life? Entrepreneurs know their aim of
want to do?
role they want to play.
life by analyzing which is the most suited
Strengths: An entrepreneur knows some how to
Adjectives Describe my of
2) Which Three adjectives like honesty, empathy and creativity
are
describe his inner strength. The
entrepreneur must possess.
the major adjectives that an
he
dream job: An entrepreneur also dream of a job or business that he thinks
3) What is my
can do or is interested in doing.
Entrepreneurship
risk can I bear with reference to investment and income:
4) How much
and income generated. The entrepreneur should clearly
involves risk in terms of money business but it should not make the
entrepreneur
essential part of
understand that risk is an
feel depressed.
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5) Where will I be aftertwo ENTREPRENEURSHIP SKILLS
his business and should years: An
of action later will be. think where entrepreneur
he will
should also see the future perspective of
be after a
sparn of time and
further what his line

6) How much
time | need to
entrepreneur's life. Helshe devote for work: Time is an important part of an
has to devote allIhismy time initially towards implementation of his
plan and then only
proper plan execution can be
1.8 done.
An FINANCING OPTIONS FOR STARTUPS
entrepreneur
The source of
must know how to avail the finance for the business which is very challenging.
his/her
Funds for a startup finances should be known to an entrepreneur prior to his business only.
business can be taken from the following sources:
1) Equity Financing
2) Debt Financing
3) Government grant and support
1.8.1 Equity Financing
of equity., The one who is funding
Cquty Financing means raising funds against share
total equity. For example, if reliance has
Devomes a co-Owner of startup having share in
equity then that means reliance is the
Invested in your startup against 45% share of the
are left with 55% share of the equity. Equity
Owner of 45% share of your company and you of equity
sources. It means there are three types
Tihancing typically comes from three
financing:
who want to
investors: They are generally private individuals or associations
1) Angel OWnership
high funds into your company and are sometimes looking for alarge
invest
one time to help business excel.
percentage. Sometimes the investment is done

Venture capital firms: These firms publicly invest funds into very promising startups.
2)
(or other small investors): These private investors put a relatively
3) Friends and family business in exchange for relatively small
pieces of the
smallamount of money into your
pie.
paid back
1.8.2 Debt Financing
borrowing a fixed sum from a lender, which is then
Debt Financing involves forms from many types of
organizations. They
comes in many
with interest. Debt financing
include:
institutions.
of credit from banks or other financial
1)Secured lines lenders like Bond Street.
banks or alternative
2) Term loans from
startup
Government Grant and Support schemes to support the emerging
1.8.3 new
Government has started
various
government is an aid to promote the
support by the
entrepreneurs. This grant and [5]
 CLASS X
entrepreneurs who are trying to benefit the society. Startup India ENTREPRENEURSHIP SKILLS
the Government of India for
generation of employment and wealth Scheme is an initiative by
Startup India is the development and innovation of creation. The goal of
the employment rate in India. Benefits of products and services arnd is increasing
Finance support, Governmernt tenders, Startup India Scheme is Simplification of Work.
by Prime Minister Shri Networking opportunities. Startup India was
Narendra Modi on 16th January 2016 launched 100
noo
1.8.4 Somo Important Government Loan
Scheme for small Busine
MUDRA Loans: Micro-units Development and Refinance s

established by the government of India to provide businessAgency

finance
(MUDRA) is an organization
to micro-business units. The
loans under the scheme are given on the pretext of funding the
and startups are often left to their own devices for unfunded'. Since small companies
financing
created the concept of loW-cost credit to such undertakings. their venture, the government has
Credit Guarantee Fund Scheme for Micro and Small
launched in the year 2000 as a monetary support scheme forEnterprises: The CGMSE was first
collateral-free credit for both new and existing business units micro and smallenterprises. It offers
that satisfy its eligibility criteria. The
scheme provides working capital loans up to 10 lakh without any
collateral. However, for all credit
facilities above 10 lakh and up to 1crore only primary security or mortgage of land is obtained.
Stand Up India Scheme: The government of India introduced Stand-Up India
bank loans between 10
lakhs and 1 crore to at least one Scheduled Caste (SC) or a
scheme to facilitate
Tribe (ST) borrower and at least one woman borrower per bank branch for Schedule
setting up ventures.
The startup may be in manufacturing, trading or service sector.