IDENTIFICATION AND CHARACTERISTICS OF ENTREPRENEURS Emergence of First Generation Entrepreneurs, Environmental Influence and Women Entrepreneurs. Conception and Evaluation of Ideas, Their Sources and Decision Making, Choice of Technology - Collaborative Interaction for Technology Development. Qt) Ans. : ) Who is an entrepreneur? [May - 2016] Entrepreneur is a person, who started the business on his own ability or idea and assumes significant accountability for the inherent risks and the outcomes. Entrepreneur is a successful leader who combine factors of production (i.e., land, labour, capital, material) to often create and market new goods or services. According to Oxford English Dictionary, “entrepreneur as one who undertakes an enterprise. Especially a contractor acting as an intermediary between labour and capital production is an entrepreneur”. What are the qualities of successful entrepreneur? [May/June - 2015] ‘ According to James J. Berna, the following are the qualities of a true entrepreneur, (1) He should be an enterprising individual. He should be energetic, resourceful alert to new opportunities, able to adjust to changing conditions and willing to assume risks involved in change. (2) He should be interested in advancing technologically and in improving the quality of his products. (3) He should be interested in expanding the scale of his operations and he reinvests earnings to this end. OUTASTUPDATES? ‘Your ssc ou pltrm—: Q3) What are the basic characteristics of entrepreneur? [May - 2016) [May/June - 2015) The characteristics of entrepreneur are, An entrepreneur should have a clear objective, the nature Ans. (1) Clear Objectives : of the goods to be produced and subsidiary activities to be undertaken. 4 successful entrepreneur may have the ability to make profit. (2) Business Secrecy : An entrepreneur must be able to guard business secrets, Leakage of business secrets to trade competitors is a serious. matter which should be carefully guarded against by an entrepreneur. Technical Knowledge : An entrepreneur must have a reasonable level of technical knowledge. Technical knowledge is the one ability that most people are able to acquire if they try hard enough. @) Accepting Challenges : Due to the competitive environment an entrepreneur (4) has the ability to take the challenges for the-development of the production and business. (8) Organized Ability : There must be ability to organize all activities in order to achieve desired result in enterprise. If there is no ability to organize, it is impossible to achieve the desired result. Q4) What are the attributes of entrepreneur? [May/June - 2015] Ans.: For successful entrepreneur following attributes play an important role, (1) Passion of the Business : The number one characteristics shared by successful entrepreneur is a passion for the business. This passion typically stems from the entrepreneur's belief that the business will positively influence people's lives. (2) Product/Customer Focus : A second defining characteristics of successful entrepreneurs is a product/customer focus. An entrepreneur's keen focus on products and customers typically stems from the facts that most entrepreneurs are at heart, craft people. (3) Tenancy Despite Failure : Because entrepreneurs are typically trying something * new, the failure rat is naturally high. A defining characteristics for successful entrepreneurs is their ability to preserve through setbook and failures. Execution Intelligence : The ability to fashion a solid business idea into a viable because is a key characteristics of successful entrepreneurs. OUTASTUPDATI ‘Your ssc ou pltrm (4)05) 6) Ans, : write briefly about first generation entrepreneurs. [May - 2016] (or) Who is first generation entrepreneur? Give an example. : [May/June - 2015] : First generation entrepreneur is an individual who jis creative and innovative in nature and he uses these skills and. establishes an industrial unit. He is basically an innovator, who amalgamates various technologies in order to. produce a new product or a service. : A first generation entrepreneur is one who starts industrial unit by means of an innovative skill. He is essentially an innovator, combining different technologies to produce a marketable product or service. He has no entrepreneurial back ground in his family. First generation entrepreneurs are typically more risk-taking and less brand- aware, they put a lot of trust on their gut, hence they have a higher chance to succeed or fail equally. The first generation entrepreneurs are definitely bolder, as basically they have nothing to lose are the one’s who have taken substantial risks in their lives. Example : Sachin Bansal and Binny Bansal launch a e-commerce website retailing books as “Flipkart” in October 2007. Today, approx 20% stake they hold, along with the top management company. Today they immence with different category of product availability and lead as top successful entrepreneur in India. How an entrepreneur choose the right technology required for the business? [May/June - 2015] The choice of technology selection with respect to todays entrepreneurs are based on the following criteria, (1) Ufility : The first criterion is utility. Is the technology actually useful? (2) Environment : The second criterion is environmental soundness, using the word environment in the broadest sense. Does the technology create costs for unwilling third parties? 3) Autonomy : A third criterion is autonomy. Does the technology make people Passive and powerless, or does it help them to do more for themselves? OUTPASTUPDATES ‘Your ssc ou pltrmee reneur? a7) Ans. a8) Ans. : 1 (1), Motivator : An entrepreneu What are essential characteristics of entrep! + must be a great motivator. He should motivat, ms and groups and must also take care. that the groy form tea eae sides this, an entrepreneur mys, i is. Be rs are motivated on a regular basis. membe! : ‘ fe individual seek8 growth ang also create such an environment wherein thi experiences career development. confidence is an important skill of an entrepreney an : Self (2) Self-confidence ployees to achieve without which will not be in a position to motivate his em collective goals or a common goal. (3) Long-term Involvement : The minimum number of years. an entrepreneur must invest in one’s own business varies from 5 to 7 years. One must not expect any miracle to take place over night or in a short span of time. The entrepreneurs must be determined and committed once they get into the business. High Energy Levels : An entrepreneur must be energetic and dedicated as the (4) success of any individual is highly dependent on the efforts and hardwork he used to put in his tasks. (5) Persistent Problem Solver : Creativity is an essential element in entrepreneur's characteristics. An entrepreneur needs to be ambitious to accomplish a task or solve a problem. What entrepreneuiial available for engineers graduate? [May - 2016] An engineer does intoned to wait for a company to employ, but can start a career as entrepreneur. There are several business can start by an engineer graduate as an entrepreneur as, (1) Mechanical : From automobile to light switches, heating, air. conditioning et (2) Civil : Construction with technological revolutionary usage, new structural concept, design. (3) Electronics and Communication : Telecom products and.services. (4) Electrical and Electronics : Electrical products, air compressor manufacturing: battery, voltage stabilizer making, cathode ray tube manufacturing etc. OUTASTUPDATES? ‘Your ssc ou pltrm_ 9) Ans. to) Ans. : What entrepreneurial available for engineers graduate? [May - 2016] n engineer does intoned to wait for a company to employ, but can start a career as entrepreneur. There are several business can start by an engineer graduate as an entrepreneur as, a) @) (3) @) Mechanical : From automobile to light switches, heating, air conditioning etc. Civil : Construction with technological revolutionary usage, new structural concept, design. Electronics and Communication : Telecom products and. services. Electrical and Electronic: Electrical: products, air compressor manufacturing, battery, voltage stabilizer making, cathode ray tube manufacturing etc. What are the leadership attributes of entrepreneur? [May - 2016] The various leadership attributes ofsentrepreneur are, (4) (2) (3) (4) (5) G 7 (8) Leader with a vision. Well communicated. Support and guide employee. Self-believes. Integrated about work and efficiency. Full possibility to perform well. Responsible with their own consideration. Risk taker. OUTASTUPDATES? ‘Your ssc ou pltrm. ~~ [XSF IDENTIFICATION AND CHARACTERISTICS OF ENTREPRENEUp, Q11) What do you mean by entrepreneur? What are its characteristics? Answer + Entrepreneur is a person, who started the business on his own ability or idea ang assumes significant accountability for the inherent risks and the outcomes. Entrepreney, 'S @ successful leader who combine factors of production (i.e., land, labour, capital, Material) to often create and market new goods or services. According to Oxford English Dictionary, “entrepreneur as one who undertakes ay enterprise. Especially a contractor acting as an intermediary between labour and capital Production is an entrepreneur”. According to Adam Smith “entrepreneur as a person who only provides capital without taking: active part in the leading role in the enterprise”. The characteristics of entrepreneur are, (1) Clear Objectives : An entrepreneur should have a clear objective, the nature of the goods to be produced and subsidiary activities to be undertaken. A successful entrepreneur may have the ability to make profit. (2) Business Secrecy : An entrepreneur must be able to guard business secrets, Leakage of business secrets to trade competitors is a serious matter which should be carefully guarded against by an entrepreneur. (3) Human Relation Ability : The most important factors contributing to the success of an entrepreneur are emotional stability, personal relations, consideration and tactfulness. An entrepreneur must maintain good relation with his customers. He must also maintain good relations with his employees as he is to motivate them to perform their jobs at a high level of efficiency. (4) ‘Communication Ability : Communication ability is the ability to communicate effectively: * Good communication also means that both the sender and the receiver understand each other and are being understood. An entrepreneur who can effectivelY communicate with customers, employees, suppliers and creditors will be more likely to succeed than the entrepreneur who does not. (5) Technical Knowledge : An entrepreneur must have a reasonable level of technical knowledge. Technical knowledge is the one ability that most people are able acquire if they try hard enough. (6) Ability to Take Risk : There must be ability to take risk because if an enterprise tae risk then there is a chance for profit compared to that enterprise who does not hav ability to take risk. His business cannot survive long. OUTASTUPDATES? "Your seve our lation, \4 (7) Ability to Innovate : Entrepreneur should be of innovative nature that he must introduce something new in the economy. They constantly put their efforts in introducing new product, ‘new method of production, opening new market and recognizing the enterprise. He should look for profitable opportunities and have an ability to exploit or utilize the faster production. (8) Accepting Challenges : Due to the competitive environment an entrepreneur has the ability to take the challenges for the development of the production and business. (9) Organized Ability : There must be ability to organize all activities in order to achieve desired result in enterprise. If there is no ability to organize, it is impossible to achieve the desired result. 12) How an entrepreneur identify the opportunity? Answer : Entrepreneurship scholars recognize the situated nature of opportunity identification/ creation. Entrepreneurs do not identify or create opportunities in a context free vacuum. Rather, their perceptions of the context in which they are embedded shape the nature of the opportunities they consider to be plausible and attractive. Examining how entrepreneurs understanding of their own historical context shapes the situated nature of the opportunities they identify as plausible and attractive: constitutes one promising avenue for research. Such research could examine how entrepreneurs’ own understandings of history, such as the analogies or lessons they draw for the past shape their perceptions of possible futures: Example : Such research might examine how entrepreneurs draw “lessons” from the past and apply these in judging the plausibility of opportunities to the future using analogies or stories. Likewise, it might examine how their interpretations of the attractiveness or unattractiveness of conditions in the past shape their judgements about futures that are Worth pursuing. Such’ an approach would also inherently entail exploring how entrepreneurs interpretations of the history are used to deal with the uncertainty of entrepreneurial futures. IDENTIFYING aN ENTREPRENEUR It was emphasized that some of these qualities are extremely difficult to screen for. There is no objective test of entrepreneurial ability which can guarantee a high degree °f accuracy and there is unlikely to be one in the foreseeable future. Opinions are therefore likely to differ about whether a given individual has entrepreneurial ability, Some People may overestimate a person’s ability and others underestimate it. This means that the identification of an entrepreneur is itself a judgmental activity. naan : :(1) Law of Self-Esteem : Various hypotheses can be made about oe identiticatiog entrepreneurs. The simplest of them may be called the ia of Self-esteem. Tasso! basically, that everyone has a higher opinion of his own judgment than anyong ¢ does. This means that many people who believe themselves to be entrepreng will not be recognized as such by other people. On the other hand, it denies Possibility that a true entrepreneur may so underestimate himself that he decing to become an éntrepreneur when he really should do so. Potential entreprenge may be excluded from entrepreneurship by lack of financial backing or by ote. barriers to entry, but do not exclude themselves by self-effacement. (2). The Law of Arrogance : This asserts that no one thinks anyone else has what it tate, to be an entrepreneur. According to the second law, anyone who thinks that hep an entrepreneur can be sure that everyone else disagrees with him. The secon law is some what extreme, however, as It ignores the fact that, In the long run at least, an entrepreneur can acquire a reputation for successful devision making ang thereby acquire the confidence of others. It also ignores the fact that there are. both formal and informal methods of Screening people for entrepreneurial qualities. The’ formal mothods include in dejth Interviews and the assessment of performance in simulated business situations, the informa! methods rely on continuous observation of the individu> at “close quartes’ and are open mainly to family and friends. None of these methods is guaranteed to succeed, but they do allow favourate assessments of other people to be made, progress only tentative ones. The following analysis therefore accepts only the first law and rejects the second, It recognizes that the identification of entrepreneurs is judgmental. The most favourable assessment of an individual is likely to be his own, followed (at some distanct, Possibly) by that of his family and friends. On the whole, the most sceptic assessments are likely to be made by those who have had no contact with tte individual at all G19) Explain various essential qualities of an entrepreneurs. [MaylJune - 2014 Answer : According to Professor B.C. Tandon, a true entrepreneur possesses the followit? main qualities, (1) Capacity to Assume Risk and should Possess Sellsconfidence : The entrepreneur shoul assume risk (according to Joseph A. Schumpeter, the entrepreneur is a risk-takef! and have self-confidence. He is willing to invest money and wait for returns. AS able administrator, he has to full the needs of the employees by giving ba Promptly, lending interest to thé persons who supplied capital and keeP | organization going smoathy. A true entreprencur is one who possesses vimast | QUTASTUPDATESE on the employees, honesty, integrity, ability to take rational judgement, forbear@™ ‘Your sucess, ou platfrm and wisdom. p{@) Technical Skill, Ready to Adopt New Opportunities Inclined to Accept Change and Capacity to Initiate Things : The entrepreneur should always be ready to change and adopt new technology. To get over the problems that are obstructing his way, the entrepreneur has to wisely allocate work among the employees and gain confidence From them. In underdeveloped countries like India, the entrepreneur should always search of new technology in order to keep pace with latest taste of the customers. The success depends on the entrepreneur's ability in changing and adopting himself to new conditions and technology. Technical skill consists of finding new goods and methods of producing existing goods and services. In other words, the entrepreneur must find out new combinations involving new products, new methods of production, development of new market and utilization of new source of raw materials and a new form of an organization. (9) Capacity to Raise Funds and Other Resources : A successful entrepreneur is one who has the capacity to mobilize various resources in the ecofomical way to achieve the desire objectives. He should always concentrate on costs reduction and profit maximization. He must procure funds copious to the needs of the organization, He must be able to choose the best and required labour to run the unit to the full capacity. (4) Capacity to Administer and Organize the Unit : The entrepreneur has to apply the principles of organization carefully to run the unit smoothly. For this, he must always introduce new ideas in the organization. He must choose right type of people to Tight positions. The entrepreneur must give proper training and other facilities to the labour and he should raise the productivity of labour. He should employ technical staff whenever they are required and he should not sacrifice quality in production for the sake of cost. According to J.B. Say, the entrepreneur should possess judgement, perseverance and.a knowledge of the world as well as business. He must possess the art of Superintendence and administration. According to James J. Berna, the following are the qualities of a true entrepreneur, (2) He should be an enterprising individual. He should be energetic, resourceful alert to new opportunities, able to adjust to changing conditions and willing to assume Fisks involved in change. (2) He should be interested in advancing technologically and in improving the quality of his products. (3) He should be interested in expanding the scale of his operations and he reinvests earnings to this end. OUTASTUPDATES? ‘Your ssc ou pltrmz Q14) “Entrepreneur's are made not born”. Give an overview. [May/June . 21g Answer ; It is a commonly held view that entrepreneurs are born, not made © that what teag Someone to become a successful entrepreneur has more to do with their personality ang innate qualities than anything learned through formal education. Entrepreneurs are made not born. It is part of a deeply held cultural beliet that the Qualities that make up entrepreneurs, like creativity, irigenuity and passion, are the resuit of innate personal qualities, Although there is some truth to this, it is not the whole story, In fact, belief in this half-story may be the reason why many people (maybe even You) do not pursue their entrepreneurial passions and why many more do not consider their current work entrepreneurial. As a child, Dhirubhai Ambani set up a stall to sell bhajias at the village fair to Supplement the meagre earnings of his family. While still in high school, Steve Jobs started selling ‘blue boxes’ that would allow you to piace free calls (let’s not get into the legalities of that), to fylow students. Richard Branson started a youth-culture magazine at the age of 16, However, for every Richard Branson, Steve Jobs or Dhirubhai Ambani there are several others who transformed from being employees. The main quality of entrepreneurship is innovation, which is not obtained naturally. Innovation is a new product, a new technology, a new source and a new market. Successful entrepreneurs shi ‘are some very common characteristics that are highly distinguishable. Many successful entrepreneurs are ext business ideas. individual. remely passionate about theif This passion is what motivates them to go above and beyond an ordinary After all, the sense of innovation is not grown natural |, it comes, from opportunities: When there is problem, there is opportunities, The second quality of entrepreneurship is ex; Posteriority. About GO percent of the entrepreneurial leaders are “transitioned” and th humber one ranking factor of success is the experience as the employee. People can lea” terminologies and skills for business evoked as their language and the procedures running a business become his or her conditional refl operating business effectively and efficiently. From entrepreneur can easily tackle the key of a problem of his or her business. Perience, which is exactly extracted from » the previous experience, T e and forecasting the developm' OUTASTUPDATES? ‘Your ssc ou pltrmThe third quality of entrepreneurship is knowledge, which is not inborn but acquired from education. “ And if experience is the best education, the classroom is not far behind, Higher education was ranked the number one factor by almost one-third of respondents, just behind employee experience” . Entrepreneurs are facing with various of challenges from finance, operation, organization and laws. However along with the risk appetite entrepreneur should have a strong belief in self. He should always believed in my ability to define my own destiny. This personal belief in a way helps to. overcome any fear involved in taking up new challenges and putting himself in what most would consider a risky situation. [Xs EMERGENCE OF FIRST GENERATION ENTREPRENEURS Q15) Write about emergence of first generation entrepreneurs. Answer + First generation entrepreneur is an individual who is creative and innovative in. nature and he uses these skills and establishes an industrial unit. He is basically an innovator, who amalgamates various technologies in order to Produce a new product or a service. First Generation Entrepreneurs is a synonym for New Entrepreneurs. They are actually the wealth creators arid fresh leaders. The only deviation between them is that a new entrepreneur can invest a small amount with the risk of losing it while an established one is ‘Risk-Safe’. Though the fear of investment is attached with both of them and both demands for dedication and involvement of works. For them, all days are not the same, consistency the most importance. Undoubtedly, “First Generation Entrepreneurs” will have to face hurdles and that’s obvious. They are the fellows who continually asks themselves, (1) ‘How to stay motivated throughout the day?’ (2) ‘How to overtake/surpass the competitors?’ (3) ‘How to be more productive?’ (4) "How to be successful? A first generation entrepreneur is one who starts industrial unit by means of an Mnovative skill. He is essentially an innovator, combining different technologies to produce ® marketable product or service. He has no entrepreneurial back ground in his family. First generation entrepreneurs are typically more risk-taking and less brand-aware, they put a lot of trust on their gut, hence they have a higher chance to succeed or fail equally, The first generation entrepreneurs are definitely bolder, as basically they have Nothing to lose are the one’s who have taken substantial risks in their lives. First generation one is the intangible exposure, experience they can get while STowing up’ seeing the 1st generation of entrepreneurs grow, work, toil and maybe even Scale, ————- OUT[ASTUPDATES? "Your seve our lation,thi little more about survival o> Being a first-generation entrepreneur makes things 2 itt * Buide for those who want to chart their own course and be their own boss. i Years From now, kids may look back at these successful entrepreneurs and will copy them. Kick stay your journey to being a successful entrepreneur with these habits: Read a lot, set shox. term and long-term goals, connecting with positive people, being humble. Get ready fo, these hurdles if choose to walk down this path. (23009) ENVIRONMENTAL INFLUENCE AND WOMEN ENTREPRENEURS Q16) Who is a women entrepreneur? Explain the role of women in todays competitive world? Answer: The word “Women Entrepreneur” are defined by the government of India is as follows, Women entrepreneurs can be defined as a person who can initiate, organize as well @S operate a business enterprise a part from this she can innovate, imitates or adapts an economic activity for running a business. “Women Entrepreneur is one who runs an enterprise owned and controlled by her and having minimum financial interest’ upto 51% of the capital and giving atleast 51% of the employment to women’. According to Kamal Singh, “A women entrepreneur can be defined as a confident, innovative and creative woman capable of achieving self economic independence individually or in collaboration, generates employment opportunities for others through initiating, establishing and running the enterprise by keeping pace with her personal, family and social life”. Women entrepreneurs are those women who generate business ideas or select the best opportunity, mobilize resources, combine the factors of production, undertake risks and operate the enterprise in the most effective manner with a view to earning,proft. A women entrepreneur is expected to perform the following functions as a role, (1) Assumption of Risks : The woman entrepreneur assumes all Possible risks of business. Such risks are in the form of changes in tastes of consumer: and new innovations. Such risks can be minimized if wo use their skills and judgment. Thus, risks-bearin: of a woman entrepreneur, s, techniques of production men take proper initiative 9 remain the most’ important function (2) Business Decisions : The woman entrepreneur has to decide the nature of type of Products to be produced. She enters a particular industry which offers her the best Prospects and products and products those goods which she thinks will pay her te most and employs those methods of production which seems most profitable to he She effects suitable changes in the size of the business, its location, techniques * Production and does everything that is needed for the develooment af her business OUTASTUPDATES? "Your seve our lation,(3) Function of Innovation : The woman entrepreneur conceives ideas for the improvement in the quality of product line. She considers the economic viability and technological feasibility in bringing about improved quality. For example, the introduction of different kinds of electronic gadgets. Managerial Functions : The woman entrepreneur performs the managerial functions though the managerial functions are different from entrepreneurial functions. She formulates production plan, arranged finance, purchases raw material, provides production facilities, organizes the sales and also undertakes the task of personnel management. 4) Frederic Harbison has explained five major functions of women entrepreneurship as follows, (1) Initiating an idea to start up a new business enterprise. (2) Managing business risk and uncertainties. (3) Introducing or imitating innovations. (4) Coordinating, administrating and controlling. (5) Supervision and leadership. _ Irrespective ‘Of gender, entrepreneurs have to perform common functions, some of are, (1) Risk-bearing. (2). Organization. (3)_Innovations. nceencntgeninen Q17) Explain the scope of entrepreneurship for women in India setting the context of developing and growing economic freedom. [May - 2016] Answer : The scope of entrepreneurship for women in India setting in the context of developing and growing economic freedom are, : (1) Women entrepreneur can be a risk bearer is specific in nature. The entrepreneur assumes all possible risks of business which emerges due to the possibility of changes in the tastes of consumers, modern techniques of production and new inventions. Such risks are not insurable and good to calculate. In simple terms such risks are known as uncertainty concerning a loss. (2) Exploration of the prospects of starting a new business enterprise. (3) Undertaking of risks and handling of economic uncertainties involved in the business. (4) They can Co-ordination, administration and control in high efficient manner. OUTASTUPDATES? "Your seve our lation,(5) (6) ”) (8) ata) —— a 4 Women entrepreneur make the highly involvement of Supervision and leadershiy_ Innovative development of product is applicable with the Introduction Of & ney method of production technology which is not yet tested by experience in the bran, of manufacture concerned. They can make a strong convictions and self motivation to grow with a positive result oriented. They may Undertaking of risks and the handling of economic uncertainties involve in business. Explain in detail about opportunities and challenges of women entrepreneurs in Indian context? [May - 2016) Answer : qa) (2) (3) (4) (5) (6) (7) The various opportunities of women entrepreneurship in Indian context are, Free Entry into World Trade : Today women are highly skilled to apt the various challenges and gain leadership possibilities in organization which leads to free entry into world trade, Improved Risk Taking Ability : Woman entrepreneurship make more deliberate effort in order to exist as risk taking abilities which improve the women’s credibility and “efforts. Restrictions : To develop women based society to coexist in male dominant environment, government providing the different benefits to increase its consideration by removing restriction throughout the nations. Technology and Inventions Spread into the Werld : Women are well educated with the technical possibilities and change according to the society which increase the use of technological and innovations use and spread throughout the world. Competitions : Promotion of healthy completions among nations leads to high opportunities among women entrepreneurs, Support : They also gain the opportunity with the establishment of other nation@! and international institutes to support business among nations of the,world. Social and Cultural Developments : Women’s entrepreneurs are highly involve in Soc! and cultural development of society. It has increased the various considerations 24 change in social and cultrate trade and benefits, OUTASTUPDATES? ‘Your ssc ou pltrmmale cou a) @ There is no doubt that women entrepreneurs have to face more problems than their nterparts, some of them are, Lack of Confidence and Motivation : The educational qualifications alone do not give the confidence. Invariably, the family members cause de-motivation. Lack of Knowledge about Business Opportunities : A majority has no information about the market place. Lack of Knowledge of Formulating a Business Plan : Most of them are does'nt know @) about the formation of business plan. (Involving market survey, project finalization, business projection etc.). 4) Lack of Information : Lack of information about Procedures and sources of assistance in setting up @ business, including funding, legal formalities etc. (8) back of Knowledge : Lack of knowledge about managing the ‘enterprise, including areas like accounting, marketing, handling people etc. (6) Problems in Offering Margin Money and Guarantees : To avail of institutional funding. It is difficult to raise margin money unless the woman has some savings of her own. Normally a woman only has her ‘Streedhan’ in the form of gold jewellery, which she would never offer as a security. It is also difficult to find a guarantor. (7) Marketing : Marketing is another weak area for women entrepreneurs. Though they may be able to match the product quality and service levels as compared to male entrepreneurs, when it comes to aggressive marketing, they fall short. (8) Lack of Infrasiructure : Majority of women work from home, which limits the scope of the business. An industrial estate situated for.away from home puts physical strain on the women entrepreneur. Q18) What are the favourable conditions and challenges for women entrepreneurs in India? [May/June - 2045] Answer : Following are the reasons for favourable conditions for women entrepreneurs, (2) Innovative thinking: ) New challenges and opportunities for self fulfillment. 88) Employment generation. (4) Freedom to’take own decision and be independent. () Family occupation, ) Need for additional income. 8) Bri () Bright future of their wards. OUTASTUPDATES? ‘Your ssc ou pltrm(9) Role model to others support of family members (10) Education and qualification self identity and social status (11) They want to assume new and fresh challenges and opportunities for self-Fulfilimen (22) They want to prove their personalities in an innovative, daring and competitive jg, (43) They want to undertake changes to control the balance between their Families responsibility and business obligations. (14) Increasing standard of living, For remaining answer refer Q.No. 18. 020) Discuss the importance of women as an entrepreneur? Answer Following are the importance of Women entrepreneurs, 1) Economic Needs : It is observed that this motive is most dominant, specially, in ow income group where about 82 percent of women consider it is the primie motive because of obvious reasons. Approximately, 25 percent of women entrepreneurs from middle income group have economic a motive. (2) Utilization of Own Experience and Technical Education : Amongst the women entrepreneur, with education in Science and Technology, this is the dominant motiv® for 75 percent, while amongst others it plays a minor role. (3) Husband's / Family's Interest and Support : This is the reason why 50 percent of women come forward to become entrepreneurs. In case of unmarried women, the family interest is observed in 18 percent of cases. This helps to acquire higher grout responsibility. (4) Availability of Free Time and Finance : About 60 percent of the housewives tumed” entrepreneurs feel that their children have grown up and they. have free time whic! Promotes them to start their business ventures. Amongst the women of higher middle class, this motive is stronger, ith 5 apart from free time money is also available ™ them. 1 (8) Satisfaction of Personal Ego : This motive’ is present in more qualified women 25 "2 ed as those from higher middle class. Women's ego is often the reason to bécome “ ! entrepreneur as they want to do things on thelr own. Some of them also 2 % 7 to why their husbands should bear their burden. Thus, it is basically their se*** = OUTASTUPDATES?= independence that motivates them towards entrepreneurship. Nospeeee exeCONCEPTIONS AND EVALUATION OF IDEAS, THEIR SOURCES AND DECISION MAKING 21) Define idea and also explain various sources of idea. [May - 2016] Answer = ‘The word idea comes from Greek word idea which means “form, pattern,”. An idea is a thought or collection of thoughts that generate in the mind. An idea is usually generated with intent, but can also be created unintentionally. Ideas often form ‘during brainstorming sessions or through discussions. An ideas are usually interpret as mental representational images of some object. Ideas can also be abstract concepts that do not present as mental images: The task of promotion began with the search for a suitable business ‘opportunity. The idea may originate from various sources example, success story of a friend or relative, demand for certain products, chances of producing a substitute for an imported article, visits to trade fairs and exhibitions, study of project profiles and industrial potential surveys, meetings with Government ‘agencies etc. The idea may relate to the starting of a new business or to take over an existing enterprise. The idea should be sound and workable, so-that it may be exploited. It should yield a reasonable return on investment and the one which can be covered into a business. The promoter has to be imaginative and foresighted to discover a business idea. A business idea may be discovered from the following sources, (1) Developments in other Nations : People in underdeveloped countries generally follow the fashion trends of developed countries. Therefore, an entrepreneur car, discover good business ideas by keeping in touch with developments in advanced nations. Sometimes, entrepreneurs visit foreign countries in search of ideas for new product/processes. Trade delegations, various chambers of commerce, etc. visit foreign markets to explore foreign collaborations and other types of busines ideas. XN (2) Prospective Consumers : A consumer knows best what he wants and the habits/tastes which are going to be’ popular in the near future. Contacts with prospective consumers can also reveal the features that should be built into a product/service. These days good business firms generally conduct a survey among prospective consumers before choosing the product to be’ manufactured. OUTASTUPDATES? ‘Yeur sce. om ptr@) @) 6) (6) Development in Other Nations Prospective ‘Customers Government Organisation Sources of Business 5 We 3 4 Trade Fairs Study of and Project Exhibitions Profiles BEER WT Sources of Business Idea Study of Project Profiles : Various Government and private agencies publish periodic profiles of various projects and industries. These profiles describe in detail the technical, financial and market requirements and prevailing position. A careful scrutiny of such project profiles are very helpful in choosing the line of business. Market Surveys : Market survey is an important source of business idea. It needs to be practical and relevant to the business. Careful observation of markets can reveal a business idea. Market surveys can also reveal the demand and supply position for various products. It is necessary to estimate future demand and take into account anticipated changes in fashions, income levels, technology etc . logy etc. Trade Fairs and Exhibitions : National and international trade fairs a ry good source of business ideas. At these fairs, producers and dealers ieee concerned ec industry put up their products for display and/or sal le. A . es information about new products/machines. Ne visit to these fairs provid! i er production, collaboration, dealership, etc. m, Gotiations for the purchas ‘ay also be made at these fairs. Government Organizations : Several Government organizati ssist entrepreneurs in discovering ahd evaluating business ia a Dee aero baile state industrial development investment corporation, te saree tai ney organizations, investment centres, export promotion councils, nee niet assistance in technical, financial, marketing and other ae oo ce = usinesses. OUTASTUPDATES? ‘Your ssc ou pltrm— —— 22) What are the sources of idea for suitable entrepreneur in engineering field? : [May - 2016] Answer: Entrepreneurs, ever alert to opportunities that inhabit the external and internal environments around them, often spot potential opportunities that others simply cannot recognize. Where do they find inspiration. All of the following places, (1) Trends : Trends signal shifts in the current paradigm (or thinking) of the major population. The close observation of trends - whether societal, technological, economic or governmental and the valuable insights that emanate therefrom constitute an abundant source of potential entrepreneurial ideas. (i) Social Trends : Aging demographics, health and fitness growth, senior living. (i) Technology Trends : Mobile (cell phone) technology, e-commerce, internet advances. (iii) Economic Trends : Higher disposable incomes, dual wage-earner families, performance pressures. (iv) Government Trends : Increased regulations, petroleum prices, terrorism. (2) Unexpected Occurrences : Successes or failures that, because they were unanticipated or unplanned, often prove to be major sources of an innovation. The infamous 9/ 11 terrorist attack on the United States is a good example of an unexpected occurrence, it produced an influx of innovative solutions to new homeland security challenges. (3) Incongruities : Incongruities exist in the gap between expectations and reality. For example, when:Fred Smith proposed overnight mail delivery, he was told, “If it were that profitable, the U.S. Post Office would be doing it. “It turned out Smith was right. © An incongruity existed between the assumption that a new, faster level of mail service would never make economic sense, given that mail delivery was, at the time, a three- day affair. So Smith started FedEx. (4) Process Needs : Venture capitalists of ten refer to process need in the market place as “pain” and to innovative solutions to these needs as “painkillers.” When the need is to do something better, innovative new medical devices, heal their foods, more effective pharmaceuticals and timesaving devices can be the result. (5) Industry and Market Changes : Continual shifts in the market place caused by changes advancements in technology and growth in the structure, ries are sources of emerging opportunity. try, wherein patient care has and preventive medicine have in consumer attitudes, design or definition of markets or indust An example can be found in the health care indus| undergone radical changes and at home health care replaced hospitalization and surgery as primary focus oie OUTASTUPDATES' "Your seve our lation,~ ideas for Q23) What are the techniques of evaluation of new product ideas fo entrepreneurs, [May/June - 2019 Answer : It is also necessary that an entrepreneur uses several methods to generate ang test new ideas. The methods generally used are : (1) Focus Group : In this method a group of individuals discuss and .provide information in a structured format to arrive at new business ideas. A leader or a moderator sites with group of people and discussions are held in a free and frank manner regarding new ideas for industries or services. Characteristics of focus group are, () Leader acts as a moderator of creative thinking of focus group. (The group generally consists of 10 to 14 participants and all members take part in the discussions. (ili) The new ideas are directed towards market needs of today and needs of tomorrow. (W) The groups consisting of end users generally give ideas for new products, () The groups also give how the product should be marketed, how should be Packaged and how the advertisement be made The data received from various groups may be analyzed on realistic basis or quantitatively to short list the new ideas. Use : The method is generally used for choosing apparel designs, jewellery designs, cosmetics, health care products and the like. Applicability : For generating new ideas the method of discussion with focus groups is less time consuming and a practical approach. (2) Brainstorming : Brainstorming is a grou; P method for obtaining new ideas and business solutions. (i), The group should be informed of the broad areas of the subject or area of discussions. (il) The group should consist of people drawn én such as marketing, production, quality control handling, taxation and the like. The group al of officers, supervisors from the organizati Om different streams of knowled9® |, planning, finance, costing, stores SO should consist of different level on, OUTASTUPDATES? ‘Your ssc ou pltrmGil) The brainstorming session. should be held in a good. place with ambience. So, that the group comes open with their ideas. (iv) The member should have no inhibitions about their status in the organization or department where they serve. The session should be frank and be fun. The brainstorming sessions are held where no individual or group dominate the , discussions and no boss subordinate relationship. (v) Day dreaming or wild ideas to be encouraged. (vi) There should not be any negative comments or criticisms against any particular individuals or groups or departments, Applicability : This method is extensively used for generating ideas for new product packing and distribution. | Reverse Brainstorming : A method similar to brainstorming is used wherein the criticism is allowed for obtaining new ideas. In this method the focus is given on the negative aspects. such as, “how the idea fails” or “why the product be changed”. By asking | questions the new ideas are generated by innovative thinking. The way of negating } and generating discussions dver the problems is called Reverse Brainstorming. (3) Check List : The new ideas for the business are developed based on discussions on list of related issues. A specific area of discussions is listed by entrepreneur and a list of questions, suggestions and statements are developed for in-depth discussions and arrive at a business idea. The type of questions for a particular product may be, () Who uses’ the product? How it is used? Why at all items is used? (i) What are the new ways of usage of the product? (ii) Can the product be modified for better value to the customers? (iv) What are substitutes available in the market? How they are competitive? Can we combine the features to develop a new product? (v) Can a copied and improved product will add value? (4) Problem Inventory Analysis : It is a method of obtaining new ideas and solutions for business by focusing on the problems. In this case the individuals are used similar to focus groups for generating new business ideas. The group discusses a category of products, (i) The group is given the problems that are commonly felt by consumers, dealers, transporters and general public, k (ii) The discussions are more focused and related to a particular product and problem Suggested by many on the particular product. (ii) The method may not give many times new, entirely new, product ideas but it may add to the value of the existing product. OUTASTUPDATES? "Your seve our lation,