BHALOTIA CLASSES (9883034569/9330960172) [For B.com 1% Sem 2023-24] [New]: [Subjective] Entrepreneurship Development [75 Marks. Contents S.No. Chapters Page Number 1 Syllabus & Content 01-04 2. Introduction [10 +10+5+5+2+2+2+2+2 (Focus) 05-26 3 Public & Private system: [5+5+2+2+2+2+2] 27-37 4, Sources of Business ideas: [10 +10+5+5+2+2+2) 38 - 53 5 Mobilizing Resources: [10+ 5+5+2+2] 54-62 6 Mock Test paper (Set A) 63 - 64 QUESTION PATTERN: 10 Questions of 2 Marks Each (out of 15) 5 Questions of 5 Marks Each (out of 8) 3 Questions of 10 Marks Each (out of 5) 1st Semester Crash Course Per Subject: = 750; All Subjects: % 2,500. Almost Daily Classes till last Day of Exam. Online, offline & recorded all options. Offline classes at Girish park centre. Contact office for details BOOK PRICE: = 100ADMISSION GOING ON FOR B.com Crash course: PER SUBJECT: = 750 ALL SUBJECTS: = 2500 SYLLABUS OF OLD BATCH HAS BEEN COMPLETED. NOW RESTART CLASSES FROM THE VERY BEGINNING. 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(Ravi BhalotiaBhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) Entrepreneurship Development: Syllabus ‘Tutorial examination: 25 marks; Semester-end Examinations: 75 marks ‘Uniti: Introduction [10 + 10+5+5+2+2+2+2+2=40 Marks approx] [BHALOTIA] Entrepreneur: meaning, features, fuit€HOHS and different types (Innovative, imitating, Fablany Girone, social, intrapreneur, technopreneur, ecopreneur)_ ; Entrepreneurship Meaning, elements, determinants and importance, ged for creativity and innovation in Entrepreneurship; Role of family business in India, The contemporary role models in Indian business [including Weiner Enliepieneur]: their values, business philosophy and behavioural orientations, Conllict in family business and its resolution. Unit-2: Public & Private system: [2 +24 2+2+2+5+5=20 Marks Approx] [BHALOTIA] Public and private system of stimulation, support and sustainability of entrepreneurship, requirement, availability and access to finance, marketing assistance, technology, and industrial accommodation, Role _of industrieventrepreneur’s associations and sel help groups, The concept, role and functions of business incubators, angel investors, venture capital and private equity fund, Unlt.3: Sources of Business ideas: [10-+10+54+5 +2+ 2+ 2= 36 Marks Approx] [BHALOTIA] ‘Sources of business ideas [concept and features] and tests of feasibility [concept and objective), innovation life cyele, creative process, Significance of writing the business plan/project proposal; Concept, importance and contents of business plan/project proposal; Designing business processes, location, layout, operation, planning & contol; preparation of feasibility study report and project report [Unit to be studied along-with Case Studies as far as practicable] Unit-4: Mobilizing Resources: [10+ 5_+5 +2 +2 = 24 Marks Approx] [BHALOTIA| ‘Mobilizing Resourees for GiitrepreneuNhip||Need for finance in entreprenewship, Mito Small and ‘Mcaiare RSA AISSIMICARIAG, advantages and disadvantages, SEIMUBEMobilizing resources for stat-up Accommodation and utilities; Preliminary contracts with the vendors, suppliers, bankers, principal customers, SG PFOBIERT|metods to solve startup problems 1:t Semester Crash Course Per Subject: = 750; All Subjects: ¥ 2,500. Almost Dail last Day of Exam. ly Classes till Online, offline & recorded all options. Offline classes at Girish park centre. Contact office for details —1- Admission going on for B.com all Sem crash course. Per Subject: 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) U 1: Introduction to Entrepreneurship Development Entrepreneurship has been derived from which word? [2 Marks] [BHALOTIA] Who is an Entrepreneur? [Very Important for 2 Marks] [9883034569] [99% ][BHALOTIA] What are the Characteristics of entrepreneurs? (Ianportant for 10 Marks)**** [67%] [BHALOTIA] Discuss the Personal Qualities (traits, characteristics) of an Entrepreneur, [10 Marks] [BHALOTIA] What are the functions of an entrepreneur? (VVD10 Marks)********[99%] [BHALOTIA] Discuss the four Types of entrepreneur. (clearance Danhof’s classifications) (5 Marks)***[33%] Who is Innovative Entrepreneur? [2 Marks] [BHALOTIA] [BHALOTIA] 8. Whois Adoptive or mitative Entrepreneur? [2 Marks] [BHALOTIA] 9. Who is Fabian Entrepreneur? (2 Marks] dimp)**** [67%] [BHALOTIA] 10. Who is Drone Entrepreneur? [2 Marks] (VVI***[90%] /BHALOTIA] 11, What do you mean by Social Entrepreneurship? [2M] [BHALOTIA] [9883034569/93309601 72] 12. Who is Intrapreneur? (imp) [2 Marks}** [90% ][ BHALOTIA] 13, What do you mean by Technopreneur? [2 Marks] [BHALOTIA] 14, What do you mean by Ecopreneurship? [2 Marks] [BHALOTIA] 15, Distinguish between Entrepreneurship and Intrapreneur. [5 Marks] 16. What is Entrepreneurship? (imp for 2 Marks)***[90%]{[BHALOTIA]} 17. What are the Four Key Elements of Entrepreneurship? imp for 5 Marks)**##*# (67% 18, What are the determinants of entrepreneurship? [5M] [BHALOTIA] 19. Discuss the importance of Entrepreneurship [10M] [BHALOTIA] 20, What do you mean by Creativity? [2 Marks] [Lmp]****** [67%] 21, What do you mean by Invention? [2 Marks} [BHALOTIA] [9883034569/9330960172] 22, What do you mean by Innovation? [2 Marks] [BHALOTIA] 23. Discuss the relation between Creativity, innovation and entrepreneurs. [2 Marks] 24. Explain the different steps (Stages) (Process) of creativity. [VVI) 10 Marks] **#*#*#{99%] 25. Explain the different steps of innovation process. [5] [BHALOTIA] 26. What do you mean by Family Business? [2 Marks] [BHALOTIA] 27, What are the advantages of family business? (BHALOTIA) (9883034569) [5 Marks] [BHALOTIA] 28. What are the Disadvantages of family business? (BHALOTIA) (9883034569) [5 Marks] 29. What are the Characteristics of Family Business? [5 Marks] [9883034569/93309601 72} 30. What are the different types of Family Business? (BHALOTIA) (9883034569) [5 Marks] 31. Define Women Enttepreneur (2 Marks) [BHALOTLA] 32, What are the Problems (Challenges) for Women Entreprenews? (RKB) (10 Marks) [BHALOTIA] 33. Discuss the Role of family business in India. [5M] [BHALOTIA] 34. Discuss the sources of conflict in family business. (Important)**** (5 Marks 35. Discuss the Conflict resolution techniques in family business. [10 Marks] La hMawne —2-~ Admission going on for B.com all Sem crash course. Per Subject: 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) Unit 2: Public & Private system of entrepreneurship 36. What do you mean by Stimulation in the context of entrepreneurship? [2 Marks] [BHALOTIA] 37, What do you mean by support in the context of entrepreneurship? [2 Marks] 38. What do you mean by sustainability in the context of entrepreneurship? [2 Marks] [VVT] [99%] 39, What do you mean by Public system of Stimulation? [2 Marks] [BHALOTIA] 40. What do you mean by Private system of Stimulation [2 Marks] 41, What is industrial Estates? [2 Matks] [9883034569/9330960172] 42. Discuss role of industries in Entrepreneurship? [2 M] [BHALOTIA] Discuss the role of entrepreneur's association of India (EIA). [5 Marks] What are Self Help Groups? [2 Marks] (VV1) [99%]*** IS. What are the characteristics ofa good SHG? [5 M] 46. Discuss the role of Self Help Groups (SHGs)? [5 M] [BHALOTIA] 47. WI 2 vv) * 48. Discuss the role and funetions of business incubators? [5 Marks] ‘What are the different types of business incubator? [5 Marks] . Who isan Angel investor? (2 Marks] (VVD) [99%]** Discuss the features of Angel investor? [5 Marks] [BHALOTLA] 52. Discuss the advantages of Angel investor? [5 Matks] [BHALOTIA] . What do you mean by Crowd funding? (BHALOTIA) (9330960172) [2 marks] (imp)***** What do you mean by Venture Capital? [2 Marks] (VVD) [99%]** Discuss the features of Venture Capital. [5 Marks] Discuss the role of Venture capital? [5 Marks] [BHALOTIA] 57. What do you mean by Private equity fund? [2 Marks] (important) [67%] the role and functions of Private equity fund. [5 Marks} 59. Discuss the features of Private equity find, [5 marks] [9883034569/93309601 72] 60. What do you mean by Seed Capital? [2 Marks] (imp) [90% Unit 3: Sources of Business ideas 61. What do you mean by Business idea? (VV) (2 Marks) [99% /*######* 62. What are the Sources of Business Ideas? (10 Marks) (VVI) **#*#**** (95%) 63. What are the features of Business ideas? [80 %] [10 Marks] (important)** 64. What do you mean by Feasibility Study? [2 Marks] [Very Important]********* 65. What is the Purpose (Objectives) of a Feasibility Study? [5 Marks] 66. Discuss the Importance of Feasibility Study. [5 Marks] [BHALOTIA] [9883034569/9330960172] —3- Admission going on for B.com all Sem crash course. Per Subject: 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) 67. What are the different 's of feasibility test? [10 Marks [Very Important]***** [85% 68. What Is Included in a Feasibility Study Report? [5M] 69. Steps to Do a Feasibility Study [5 Marks] [BHALOTIA] 70. Short Questions on feasibility study [2 marks each] [BHALOTIA] 71. What is Innovation Life Cycle? [2 M] (imp) (75%)***** 72, What are the stages of the innovation life eyele? [5 marks] [60%] **** 73. What is an Innovation adoption Life Cycle? [5 Marks 80%)***** 74, What is the creative process? 75. What is innovation? [BHALOTIA] [9883034569/9330960172] 76. What is invention? 77. What do vou mean by Business Plan/Project Proposal? [2 Marks] [Very Imp|**** (90%, 78. Discuss the Importance (Significance) of writing the business plan / project proposal (RKB) [10 Marks] [BHALOTIA] [9883034569/9330960172] 79. Distinguish between feasibility report & Business Plan? [2 Marks] 80. What are the Contents of business planv project proposal? [10 Marks] [Important] [67%]****** 81. What do you mean by business process design? (BHALOTIA) [2 Marks] [Lmportant] [67%]****** 82. What are the factors to be considered in selecting Location in Business Process Design [5 Marks] 83, What is Plant Layout? [Imp for 2 Marks]**#####"# 84, What are the different types of Plant Layout? [BHALOTIA] 85. Discuss the steps of preparation of feasibility study report, [5 Marks] [BHALOTIA] 86. Discuss the steps of preparation of project report, [9883034569/93309601 72] Unit 4: Mobi ng Resources 7. What do you mean by resource mobilization? (Very Important for 2 Marks) [99%|**#*#*# Discuss the need for finance in entrepreneurship. [5] [BHALOTIA] ‘What is meant by Micro, Small and Medium Enterprises? (Very Imp) [2 Marks]**** |. What are the types of MSME? (Very Imp) [2 Marks]**** ‘What are the advantages of Micro, Small and Medium Enterprises? (5 Marks} (imp) (45%)* What are the disadvantages of Micro, Stall and Medium Enterprises? (imp) (45%)* ‘What is a Startup? (Very Imp) (2 Marks) (80%) **** (BHALOTIA) (9883034569 What are the different types of Resources required for a Startup Business (mp) (10 Marks) (67%) What are the accommodation and utilities Required for Start-up? (5 Marks) What do you mean by Preliminary contracts? (2 M) [BHALOTIA] Discuss the Preliminary contracts entered by entrepreneur with the different parties. [5 Marks] . Discuss the different Basic Start-up Problems? (Important) [10 marks] [Very Imp]****** Discuss the different methods to solve startup problems? (5 Marks) SESRRERBSL ESBS —4~ Admission going on for B.com all Sem crash course. Per Subject: 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) Unit 1: Introduction to Entrepreneurship Development Entrepreneur: meaning, features, functions and different types (Imovative, iinitating, Fabian, drone, social, intraprenewr, technopreneur, ecoprencur) ;Entrepreneurship Meaning, elements, determinants and importance; eed for creativity and innovation in Entreprenewship, Role of family business in India; The contemporary role ‘models in Indian business [including Women Entrepreneur]; their values, business philosophy and behavioural orientations; Conflict in family business and its resolution. 41. Entrepreneurship has been derived from which word? [2 Marks] [BHALOTIA] [9883034569/9330960172] Entrepreneurship is derived fiom the French word “Entreprendre,” which means ‘to undertake,” “to pursue opportunities”, or “to fulfill needs and wants through innovation and starting businesses.’ The word first appeared in the French dictionary in 1723, It is believed that the Irish Banker operating in France, Ricardo Cantillon, was the first person who used the word ‘entreprendre’ in economies as “an agent who assembles material/inputs for producing goods at a specific price and through coordination of those inputs produces goods whose sales price is uncertain in comparison with production cost.” 2. Who is an Entrepreneur? [Very Important for 2 Marks]**********[BHALOTIA] [9883034569] [99%] ‘The word entrepreneur is derived from French word “Entreprendre” and the German word Entrepreneur is a person who tries to create something new, searches new opportunities, bears risk, unites various factors of production like land, labour and capital carries innovations and from his skill and farsightedness faces unforeseen circumstances and thereby earns profits. Entrepreneurs are the pioneers who are instrumental in the economic development, growth and development of and prosperity of a country, In the words of Jean-Baptiste, “An entrepreneur is one who brings together the factors of ‘production and combines them into a product”. Joseph A Schumpeter defines an entrepreneur as one who innovates, aises money, assembles inputs and sets the organization going with the ability to identify them and opportunities, which others are not able to fulfill such economic opportunities”. Jhumpeter (1965), defined entrepreneurs as, “individuals who exploit market opportunity through technical and/or organizational innovation.” — 5 - Admission going on for B.com all Sem crash course. Per Subject: 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) 3. What are the Characteristics of entrepreneurs? (Very Important for 10 Marks)**** [80%] [BHALOTIA] [9883034569/9330960172] An entrepreneur should possess all such characteristics with the help of which he can perform various responsibilities successfully, The following eharacteristies are (a) Innovator: The entrepreneur locates ideas and puts them into effect in the process of economic development. Innovation may occur in the following forms (@) The introduetion of new goods Gi) The introduction of new methods of production (iii). The opening of a new market. (iv) The conquest of a new source of supply of raw-material (v) The camying out of the new form of organization of any industry. (b) Risk-taker: An entrepreneur is a calculated risk-tasker. He enjoys the excitement of a challenge but he does not gamble, An entrepreneur avoids low-risk situation because there is a lack of challenge and he avoids high-risk situation because he wants to succeed. He likes achievable challenges. (© Qreaniser: An entrepreneur has to bring together various factors of production, minimize losses and reduce the cost of production, Initially, he may take all the decisions but as the enterprise grows, he starts delegating the authority, He produces that best results as an organizer (@ Creative: Creatively, as field knowledge, seeks to explain how humans, either individually or collectively, reach solutions that are both novel and useful. Innovation means the effort to create purposeful ventures (© Motivator: An entrepreneur is an achievement-oriented person, not “money hungry’. He works for his desire for challenge, accomplishment and service to others. It motivates the other (© Technical Competent: An entreprencur who has a high level of administrative ability, mental ability, communication ability, human relations ability and technical knowledge can be more suecessful than person with low level of these abilities. A dynamic entrepreneur must also be interested in changing, the pattern of production to suit the requirements, — 6 - Admission going on for B.com all Sem crash course. Per Subject: 750; All:Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) (@) Self-confident: It is necessary for an entrepreneur to be self-confident. He should have faith in himself only then he can trust others. (i) Socially Responsible: The changing environment calls for a socially conscious entrepreneur who is not threatened by progress of others. On the contrary, he acts in full awareness of social repercussions of his actions. His entrepreneurial ability may create jobs for others. (@) Optimistie: An entrepreneur should approach his task with a hope of success and optimistic attitude He attempts any task with the hope that he will succeed rather than with a fear of failure. Such a hope of success enhances his confidence and drives him towards success. (Communication Ability: An entreprenzur must possess the quality of communicating effeetively in wiitten and oral communications. Good communication also means that both the sender and the receiver understand and are being understood (&) Decision-Making: An entrepreneur must be clear and creative when it comes to decision-making, He must believe in himself and should be possessing ability to take decisions effectively, Decisions taken should be based on quantitative facts, Decisions which effect organisaton’s future and are likely to be irreversible must be taken with great care © Business Planning: The decision to become an entrepreneur is the first step followed by the choice of the product. As the business venture is undertaken, need for planning arises. It is the rigor and thoroughness of the business plan which could be behind the successful entrepreneur throughout iis venture’s life. (in) Visionary: An effective visionary performs two key roles : (i) A charismatic role which involves establishing support for a vision and direction. He inspires and empowers his employees for support. Secondly, he plays an architectural role in order to build an appropriate organization structure. He has to look after various finetions of management and discharge them effectively. —7- Admission going on for B.com all Sem crash course. Per Subject: 750; All:Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) 4 cuss the Personal Qualities (traits, characteristics) of an Entrepreneur. [10 Marks] [BHALOTIA] [9883034569/9330960172] (Very imp) [80%]**** The Qualities of an entrepreneur are as follows: 1. Clarity An entrepreneur should have clarity. Its essential for entrepreneurs to have laser-focnsed clatity on their goals, their zone of genius and their vision, It’s extremely easy to get pulled off track by different opportunities, an endless stream of ideas or the next shiny strategy. Clarity challenges you to focus on spending your limited energy only on tasks that will create momentum in your desired direction. 2. Self-Confidence The best advice I received as a young entrepreneur was, “You have to leam to fail every day.” Since no one likes to fail, entrepreneurs in 2022 need bottomless reservoirs of self-confidence to keep bouncing ‘ack stronger. Cultivating this self-confidence is helped by surrounding yourself with people who have gone farther down the entrepreneurial path than you. You become the company you keep. The first quality is flexibility in every aspect of the business; a strategic approach, client outreach and offerings. Cultivate flexibility by talking to people with different experiences in other markets, and if you can go to foreign countries, it would even be more enriching, Must-have skills are innovation and speaking different languages. 4. Self-Awareness Knowing yourself very well so that you can focns and prioritize is key. You will have clarity if you know your core values (compass), your strengths and your blind spots (toolbox) and where you want to go (map). Clarity beats donbis every time. So you can move forward, adapt, be agile, rebound and move toward a goal aligned with you Adaptability ‘The No. | quality an entrepreneur needs to succeed in 2022 is the ability to be adaptable. This means being able to identify opportunities and seize them quickly. Tt also means being able to change course when necessary and always be leaming, Entrepreneurs can cultivate this quality by being open to new ideas, constantly seeking out new knowledge and taking risks. 6. Emotional Intelligence An entrepreneur should have emotional intelligence. As a leader, it’s important to be aware of your own emotions when handling the natural ups and downs of entrepreneuship. As well, having emotional infelligence makes it easier to communicate with your team and independent contractors, Both your consumers and team want to be heard and understood and feel seen more than anything else — 8 ~— Admission going on for B.com all Sem crash course. Per Subject: 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) Curiosity An entrepreneur should cultivate curiosity—an insane desire to learn from customers, clients and those around them. The way you cultivate curiosity is to embrace having a “beginner's mind.” This requires an openness to the issues and challenges at hand and an acceptance that you don’t have all the answers, Even if you do have answers, stay open to other possibilities. It’s about constantly leaming and being open to the lessons involved in the journey. - Discipline Discipline is key. An environment without a prescribed structure, processes or supervision requires self Jeadership to be disciplined in order to get things done; push through challenges; think outside the box to access resources; network and build connections, keep plodding without immediate rewards; and frequently trust your own judgment to prioritize projects. Resolve The resolve it takes to forge through that first year or two is hard to quantify and essential to an entrepreneur when getting started, especially in the cwrent economic environment. How will you hold yourself accountable for results? What action steps will you implement to drive your KPIs? How will you persevere and flex where needed when not meeting your goals? Prepare in advance and keep your resolve high 10. Consistency Our business rises and falls based not on what we do once ina while, but on the daily practices, habits and processes we utilize to acquite clients, diive sales and operate with efficiency and effectiveness. Whenever I work with an entrepreneur, the starting point is their daily business routine. - 11. Self-Development Know how fo build a business that can operate without you, especially in a erisis. It requires a multi- pronged approach from financing to systems and processes to human (and other) resources. Most importantly, it needs self-development, so you know what you truly want and what you ean unlock that supports these areas to flourish independently of you. That becomes a sustainable and aware business 12. Humility To show humility, it is a question of always questioning yourself To question yourself is to be able to evolve, to find areas for improvement. For an entrepreneur, having humility demonstrates leadership and creates strong partnerships to build the future of the company. 13. Persistence Persistence is the most important quality in 2022, With so much in flux, and a tone of overwhelm and negativity in the extemal environment, entrepreneurs amust be single-minded in their purpose and passionate about their possibilities. They must persist every single day to execute the next strategy, market their produet or service, encourage their team members and make a difference for others. [_— 9- Admission going on for B.com all Sem crash course. Per Subject: 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) 5. What are the functions of an entrepreneur? (Very Important for 10 Marks)********[99%] [BHALOTIA] The following are the main functions of an entrepreneur (a) Idea Generation: The first and the most important function of an Entrepreneur is idea generation. Idea generation implies product selection and project identification. Idea generation is possible through vision, insight, keen observation, education, experience and exposure. This needs scanning of business environment and market survey. (b) Determination of Business Objectives: Entrepreneur has to state and lay down the business objectives. Objectives should be spelt out in clear terms. The entrepreneur must be clear about the nature and type of business, ie. whether manufacturing concer or service oriented unit or a trading business so that he can very well carry on the venture in accordance with the objectives determined. by him, (©) Raising of Funds: All the activities of the business depend upon the finance and henee fund raising is an important function of an entrepreneur. An entrepreneur can raise the fund from internal source as well as external source. He should be aware of different sources of fimds. He should also have complete knowledge of government sponsored schemes such as PMRY, SASY, REAP etc. in which he can get government assistance in the form of seed capital, fixed and working capital for his business (@ Procurement of Machines and Materials: Another important funetion of an entrepreneur is to procure raw materials and machines. Entrepreneur has to identify cheap and regular sources of raw auaterials which will help him to reduce the cost of produetion and face competition boldly. While procuring machineries, he should specify the technical details and the capacity. He should consider the warranty, after sales service facilities ete, before procuring machineries. (c) Market Research: Market research is the systematic collection of data regarding the prodnct which the Entrepreneur wants to manufacture, Entrepreneur has to undertake market research, persistently to know the details of the intending product, i.e, the demand for the product, size of the market/customers, the supply of the product, competition, the price of the produet ete (© Determining form of Enterpri: upon the nature of the product, volume of investment etc. The forms of ownership are also proprietorship, partnership, Joint Stock Company, co-operative society etc. Determination of Entrepreneur has to determine form of enterprise depending ownership right is essential on the part of the entrepreneur to acquire legal title to assets, 750; All: 2500) = 10— Admission going on for B.com all Sem crash course. Per SubjeBhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) (g) Recruitment of Manpower: To carry out this function, an entrepreneur has to perform the following activities. @ Estimate man power requirement for short term and long term Gi) Laying down the selection procedure. Gii) Designing scheme of compensation. Gv) Laying down the service mules (W) Designing mechanism for training and development (i) Implementation of the Project: Entrepreneur has to develop schedule and aetion plan for the implementation of the project. The project smust be implemented in a time bound manner. All the activities fom the conception stage to the commissioning stage are to be accomplished by him in accordance with the implementation schedule to avoid cost and time over run, He has to organize various resources and coordinate various activities. This implementation of the project is an important function of the entrepreneur. All the above fimetions of the entrepreneur can precisely be put into three categories of innovation, risk bearing, and organizing and managing functions, 6. Discuss the four Types of entrepreneur. (clearance Danhof’s classifications) (Imp for 5 Marks)*** [33%] Danhof classifies Entrepreneur into four types 1. Innovative Entrepreneur: This category of entrepreneur is characterized by sinell of innovativeness. This type of entrepreneur senses the opportunities for introduction of new ideas, new technology, discovering of new markets and creating new organizations Adoptive or Imitative Entrepreneur : Such entrepreneurs imitate the existing entrepreneur and set their enterprise in the same manner. Instead of imnovation, he may just adopt the technology and methods innovated by others Fabian Entrepreneur: These are entrepreneurs that are very careful in their approaches and cautions in adopting any changes. They are not prone to sudden decisions and try to shy away from any innovations or change that doesn’ fit their narrative Drone Entrepreneur: These are entrepreneurs who do not like a change. They are considered as. ‘old school”. They want to do business in their own traditional or orthodox methods of production and systems. Such people attach pride and tradition to even outdated methods of doing business. = 11— Admission going on for B.com all Sem crash course. Per Subje : 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) 7. Who is Innovative Entrepreneur? [2 Marks] [RKB] Innovative entrepreneurs create a new business by introducing a new product, service, or business model never seen before in the market. Moreover, such entreprenews are willing to take risks. They often have a umique approach and a clear vision on how to grow their businesses and execute that vision, In addition, stich entrepreneurs are often pushing boundaries and making a change in the world with their unique ideas. Types of innovat entrepreneurs Here are some popular types of innovative entrepreneurs (@) Social entrepreneurs (b) Startup entreprenewss (©) Enterprise entrepreneurs 8. Who is Adoptive or Imitative Entrepreneur? [2 Marks] Imitative entrepreneurship refers to the process of creating a business by copying or adapting an existing concept or business model, These entrepreneurs take an existing business idea, product, or service and replicate it. This is often done with slight modifications in a different market or location. One of the main advantages of imitative entreprenewship is that it requires less investment in research and development. Imitative entrepreneurs need to nevertheless differentiate themselves from existing businesses, otherwise they risk being seen as copycats 9. Who is Fabian Entrepreneur? [2 Marks] (imp)**** [67%] These are entrepreneurs that are very careful in their approaches and cautions in adopting any changes. ‘They are not prone to sudden decisions and try to shy away from any inmovations or change that doesn’t fit their namative. These entrepreneurs have the following characteristics (@) Accept and stick to traditional methods (0) Work for a family-owned business, (©) Careful (@ Display sisk-aversion. (©) A clear, strict, and basic strategy. 10. Who is Drone Entrepreneur? [2 Marks] (VVI)***[90%] ‘These are entrepreneurs who do not like a change. They are considered as “old school’. They want fo do business in their own traditional or orthodox methods of production and systems. Such people attach pride and tradition to even outdated methods of doing business. While they may have a sense of pride and tradition associated with their approach, they are also at risk of losing relevance and stagnating in a rapidly evolving business environment, This resistance to change can limit their growth potential and keep them confined to small-scale ventures — 12~ Admission going on for B.com all Sem crash course. Per Subject: 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) 411. What do you mean by Social Entrepreneurship? [2M] Social enfreprencuiship stands for recognizing a social problem and using entiepreneurial principles, processes and operations for effecting a social change. Social entrepreneurs have innovative solutions to the most pressing social problems. Creativity and imovation are their most important tools. Social entrepreneurship mobilizes the ideas, capacities, resources and social arrangements required for long-term sustainable social transformation. Social entrepreneurship is a catalyst for social change. Social entrepreneurs are pioneers of innovations that benefit humanity at large. They are ambitious and persistent, and experts in tackling major social issues and offering new ideas for large scale change. 12. Who is Intrapreneur? (imp) [2 Marks]** [90%] RKB An inrapreneur is an employee who is tasked with developing an imovative idea or project within a company. The intrapreneur may not face the outsized risks or reap the outsized rewards of an entrepreneur, ‘however, the intrapreneur has access to the resources and capabilities of an established company. Intrapreneurs are employees of a company who are assigned to work on a special idea or project. They are given the time and fieedom to develop the project as an entrepreneur would. 13. What do you mean by Technopreneur? [2 Marks] “A technopreneur is an entrepreneur who is technology savvy, creative, innovative and dynamic, dares to be different and takes the unexplored path, and very passionate about his work”, He takes challenges and sttives to lead his life successfully, He has no fear of failure and henee takes failure as a leaming experience, a stimulator to see things differently A Technopreneur undergoes an organic process of continual improvement and tries to redefine the dynam digital economy. Technopreneurs make use of technology fo come out with innovative products through a process of commercialization Potential technopreneurs are equipped with both technical and business skills. 14. What do you mean by Ecopreneurship? [2 Marks] Ecopreneuiship also known as “Green Enisepreneuship’ is most simply referred fo as the development of enterprise through entrepreneurship, while incorporating an envizonmentally responsible perspective into the operations and goals of the entrepreneur ‘The term ‘ecopreneurship’ began to be widely used in the 1990s. It is otherwise referred to as “environmental entrepreneurship”. Ecopreneurship is a term coined to represent the process of principles of entrepreneurship being applied to create businesses that solve environmental problems or operate sustainably. Schuyler ~ “Ecoprenenrs are entrepreneur's whose business efforts are not only driven by profit, but also by a concer for the environment” — 13- Admission going on for B.com all Sem crash course. Per Subject: 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) 15. Disting hh between Entrepreneurship and Intrapreneur. [5 Marks] [BHALOTIA] [9883034569] Basis of difference Entrepreneur Intrapreneur 1. | Ownership Entrepreneur is owner of the enterprise. Intrapreneur is dependent entrepreneur who performs the on task of innovation. Status An entrepreneur is independent in | The intrapreneur is dependent his operations. upon entrepreneur. Capital Entrepreneur himself forms capital | Inttapreneur does not form capital formation 4. | Risk Entrepreneur beats the risk involved | Anintrapreneur does not fully in an enterprise bear the risk involved in an enterprise. 5. | Operation An entrepreneur operates fiom outside Intrapreneur operates fom within the organisation. 6. | Guarantee of Entrepreneur gives guarantee to Infrapreneur himselfisa manager, Z J a so he manages from within. wvestment the investors for their investinent | on of guarantee does not aise. - Entrepreneur manages the 7. | Management . Intrapreneur is a professional enterprise from outside. ‘manager g. | Professional Entrepreneur need not pos Intrapreneur must possess qualification professional qualification professional qualification. — 14— Admission going on for B.com all Sem crash course. Per Subje : 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) 16. What is Entrepreneurship? (imp for 2 Marks)***[90%] In the early 19th cenfmy, the French economist Jean-Bapliste Say provided @ broad definition of entreprenewrship, saying that it "shifts economic resources out of an atea of lower and into an area of higher productivity and greater yield” Entrepreneurship is the ability and readiness to develop, organize and run business enterprise, along with any of its uncertainties in order to make a profit. The most prominent example of entrepreneurship is the starting of new businesses, Entrepreneurship is the creation or extraction of economic value. Entrepreneurship is a dynamic process of vision, change and creation. Entrepreneurship is the act of being an entrepreneur, or the owner or manager of a business enterprise who, by risk and initiative, attempts to make profits Entrepreneurship is the dynamic process of creating incremental wealth This wealth is created by individuals who assume the major risks in terms of equity, time, and/or career commitment of providing value for some prodnet or service 17. What are the Four Key Elements of Entrepreneurship? (imp for 5 Marks)****** [67%] Four Key elements of entrepreneurship include innovation, organization, risk and vision, Innovation An entrepreneur is the key source of innovation and variation in an economy. Itis actually one of the most important tools of an entrepreneurs success, They use innovation to exploit opportunities available in the market and overcome any threats. Risk-Tal Entrepreneurship and risk-taking go hand in hand. One of the most important features of entrepreneurship is that the whole business is run and managed by one person. So there is no one to share the risks with. Vision ‘Vision or foresight is one of the main driving forces behind any entrepreneur. It is the energy that drives the br forward by using the foresight of the entreprenew. Itis what gives the business an outline for the future ~ the tasks to complete, the risks to take, the culture to establish, etc. Organization In entrepreneurship, itis essentially a one-man show. The entrepreneur bears all the risks and enjoys all the rewards, And sure he has the help of employees and middle-level management, yet he must be the one in ultimate control, This requires a lot of organization and impeccable organizationel. skills, ne — 15~ Admission going on for B.com all Sem crash course. Per Subject: 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) 18. What are the determinants of entrepreneurship? [5M] Determinants Chassification Factors: Enabling Those determinants that enable the ‘Seed capital determinants entrepreneur with his business and (Current capital would be specific to his nature of Location operations Labour and Marketing, Driving Those determinants that drive the Accessibility Factors determinants entrepreneur towards his goals Social factors and providing him the needed 'fire’ to Motivational factors achieve them and sustain his business by setting a bar for himself Propel Those determinants that propel the ‘Applied knowledge determinants entrepreneur in his joumey and Business management skills ensure that he keeps to it, crosses Entrepreneurial approach the bar and raises the bar to ensure Personal attitude both survival and growth of Business related attitude business ‘Support and guidance 19. Discuss the importance of Entrepreneurship [10M] Enfieprencurship 1s important because it has the following benelits 1.Creation of job opportunities Entrepreneurs start new firms, which may mean more job prospects for individuals. Entrepreneurship usually creates new jobs at every level 2.Creation of new businesses Entrepreneurship is essentially the ownership of @ business by a single person. The entrepreneurs can run the vast majority of these enterprises entirely by themselves. In every economy, entrepreneurship typically offers a diverse range of initiatives that lead to the creation of new businesses 3ulnnovation It creates new product lines and improves product quality, ideas, technologies and markets and usually makes life easier for both the entrepreneurs and the consumers. 4.Leads to better sta of living Entrepreneurship, by its innovative nature, can create a wide range of comunodities in different areas. They can meet even the most specific needs. Since entreprenemsship usually creates new jobs and generates income for a family, entrepreneurship can help improve your standard of living = 16— Admission going on for B.com all Sem crash course. Per Subje : 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) S.Supports res ‘ch and development Before introducing a new product o service in the market, an in-depth investigation and testing of the product is typically necessary. As a result, an entrepreneur works with research organisations and institutions and provides funding for research and development. 6.Promotes community development Entrepreneurs ean help bring unity and build goodwill among individuals who have common goals and interests, Entrepreneurs may also help finance charities. Their goods and services often lead to the social and economic well-being of communities. Leads to increased productivity Entrepreneurs can make current businesses more competitive by offering lower pricing and a wider range of products, Existing firms may rethink their strategies, increase the quality of their products, lower expenses and become more efficient. 8.Creation of national wealth Entrepreneurship usually plays a key part in contributing to the country's national economy by generating wealth and paying taxes, which generally adds to a country's gross domestic product (GDP), 9.Contributes to social welfare Entrepreneurship also brings about social integration and reforms by connecting and helping people. It helps provide income to poor and marginalised sections of the society and allows them to fulfil their basic needs. By being inclusive of all people regardless of their differences, entrepreneurship can often create a sense of connectedness, 0. What do you mean by Creativity? [2 Marks] [Imp]****** [67%] [BHALOTIA] [9883034569] Definition of Creativity The ability of an individual, group or organisation to generate new ideas and discover novel approaches of looking at problems and opportunities it referred to as Creativity. Creativity is the characteristic of a person to generate new ideas, alternatives, solutions, and possibilities ina unique and different way. Creativity is important to entrepreneurs because it is the fist stage in the process of innovation, providing the stimulus for opportunity discovery and new venture creation. As new entrants, entreprenemrs often justify themselves upon the same dimensions as creativity: novelty, usefulness, and appropriateness —17- Admission going on for B.com all Sem crash course. Per Subject: 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) 21. What do you mean by Invention? [2 Marks] [RKB] Invention is the creation of something that has never been made before and is recognized as the product of some unique insight, Invention is the physical creation of a new concept or idea, It is defined as The czeation of an idea to do or make something without verification that it works, or is commercially valuable Invention cannot occur without creativity, but just creativity is not enough to properly develop an idea 22. What do you mean by Innovation? [2 Marks] [RKB] When creativity leads to a new commercial approach of solving problems or enriching the society, it is referred to as Innovation, Innovation ties everything together in business. Imovation is the suecessful exploitation of new ideas, It involves tuming an invention into a commereial success and encouraging its widespread use, This is the stage where bold ideas, once properly developed, are brought to the public eye. Innovation is an act of application of new ideas to which ereates some value for the business organization, ‘government, and society as well. Better and sinarter way of doing anything is immovation, It could be the introduction of * New technology * New produet line or segment © Anew method of prodnction * Animprovement in the e In Brief: a ; we sai Invention is the creation of a new idea or concept, ing product n between Creativity, innovation and entrepreneurs. [2 Marks] [BHALOTIA] Crealivityis thinking new things, and innovation is doing new things. > Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities. > Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance people’s lives or to enrich society. Creativity — Thinking new things Innovation — Doing new things Entrepreneurship — Crating value in the marketplace ENTREPRENEURSHIP = CREATIVITY + INNOVATION — 18~ Admission going on for B.com all Sem crash course. Per Subject: 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) 24. Explain the different steps (Stages) (Process) of creativity. [Very Important for 10 Marks]*******[99%] Idea » ? ’ 'Germination Preparation » Incubation Mumination Verification ‘The process of creativity involves five steps 1. Idea germination, 2. Preparation, 3. Incubation, 4. Illumination and 5. Verification, Idea germination: Thisis the seeding stage of a new idea. Itis the stage where the entrepreneur recognises that an opportunity exists. The idea germination takes place according to interest, ewiosity of the entrepreneur according to which opportunity is explored and exploited to its best potential. Preparation: On the basis of the idea, interest and curiosity the need is adjudged by the entrepreneur and he starts Jooking for the answer to implement the idea. Ifthe idea is to launch a new product or service then market research is conducted. Incubation: This is the subconscious assimilation of information, This is the transition period. The entrepreneur starts thinking about the idea and implementation in his sub-conscious mind. ‘Wumination: In this period of illumination the idea re-surfaces in realistic way and entrepreneur comes out with viable plan to give practical shape by collecting raw- material, amanging finds, policy-making for the implementation of idea Verification: Also called the validation or testing stage. This is where the idea is verified to prove that it has value, This is the most difficult phase of creativity as obstacles begin to appear. This is the developing stage in which knowledge is developed into application. — 19- Admission going on for B.com all Sem crash course. Per Subject: 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) 25. Expl: the different steps of innovation process. [5] Innovation It is the process of entreprenenrship which involves the translation of a useful idea into an application which has commercial value. It takes persistent effort to work out analytically the details of the enterprise or service, to develop marketing strategies, to organize finances and strategize operations. Elements in the innovation process: Analytical Planning Organising Implementation Commercial Resources Application Analytical planning: Carefully identifying the product or service features, design as well as the resources that will be needed. Resource organization: Obtaining the requited resources, materials, technology, lnuman or capital resources. Implementation: Applying the resources in order to accomplish the plans and delivering results. ‘Commercial application: The provision of value to customers, reward employees, and satisfy the stake holders, 26. What do you mean by Family Business? [2 Marks] Family business, as the name suggests, s the business which is actively owned, operated and managed by two or more members of the single-family, Here, members nay be related by blood, marriage or adoption. Basically, ina family business * Single-family owns majority percentage of ownership # Possess voting contol, + Has power over strategie decisions, + Has the involvement of multiple generations of the same family and © Senior management of the firm is drawn fiom the same family. Examples (Company (Country = |Industry [Family Name Reliance Industries India |Conglomerate |Ambani ‘Tata Group India |Conglomerate Tata — 20— Admission going on for B.com all Sem crash course. Per Subje : 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) 27. What are the advantages of family business? (BHALOTIA) (9883034569) [5 Marks] [BHALOTIA] The advantages a family-owned business are as follows (a) Stabi since there is longevity in the leadership position, there is stability in a family-owned Dnsiness, In these businesses, a leader stays in the position for years with different life events like retirement, illness or death triggering the change at the top. (©) Commitment: Family businesses have a greater inclination toward commitment and accountability than non-family firms due to their need for business as well as the family. These characteristics foster benefits like understanding the industry, organisation and job, effective marketing and stronger customer relationships. (©) Flexibility: While non-family businesses have delineated responsibilities for individual roles, the members of family businesses can take on tasks outside of their pre-determined roles. (@) Long-term Outlook: Non-family firms have to draw goals for the coming quarter, while family firms can think of the goals decades ahead. This long-term perspective can foster clear decision making culture throughout the business 28. What are the Disadvantages of family business? (BHALOTIA) (9883034569) [5 Marks] [BHALOTIA] The disadvantages a family-owned business are as follows (@) Lack of Family Interest: Sometimes, future generations are not interested in participating in the business, This might result in unenthusiastic, apathetic and disengaged workforce management. (©) Conflicts Between Family Members: The relationship between family members, family history and the almost blurred boundary between work life and family life can be conflicting. Family connections make these issues more complex. (©) Lack of Structure: Since family businesses depend on trust and loyalty, they may lack proper internal rules as well as external corporate law. (@) Nepotism: Some family businesses promote the family members for senior managerial positions, even though these members lack the education, skills and potential to embrace those responsibilities. This is a drawback that negatively impacts the company’s success (©) Succession planning: Many family-run businesses lack clearly defined succession plans. In the case of an emergency need to appoint a successor due toa scandal, illness or death, it might become hard for the business to decide upon the snecessor — 21 - Admission going on for B.com all Sem crash course. Per Subject: 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) 29. What are the Characteristics of Family Business? [5 Marks] [BHALOTIA] [9330960172/9883034569] Some of the main elements and characteristics of family business are- (a) Members: Family business management is conducted by a group of individuals who are also the members of a single family is the owner and runs the enterprise (©) Position of members The role and position of the family members in the business enterprise depend upon the relationship between the members. (©) Control: The family exercises control over the enterprise since the family is the major shareholder in the company. (@) Mutual Interest: The family members who hold key positions in the business are supposed to influence the business policies as determined by the mutual interest of the firm and the family. (©) Involving Multiple Generations: The family looks afler the business management and operations, and thus the rein is passed from one generation to the next () Mutual Trust: All family members must have mutual trust in every involved member sinee they ‘have a mutual origin, the same values, business orientation and ethics (g) Integrity and Transparency: These characteristics are built by strong moral principles and determination toward business goals and honesty in transparency in business. 30. What are the different types of Family Business? (BHALOTIA) (9883034569) [5 Marks] [BHALOTIA] ‘There are in general tee types of family businesses. They are as follows- (a) Family Owned Business: This kind of business refers to the one which controls the size of the significant and contolling ownership stake. This stake is controlled and owned by the family members. (>) Family Managed and owned Business: In these businesses, a single family or an individual member of the family owns the controlling stake of the business. The major owner allows the family to create and decide upon the objectives, policies and methods, (©) Family Led and Owned Business: In this kind of business, while the owner can belong to the family or a member of the family, at least another family member should be a member of the company’s board of directors. The family member can therefore influence major strategies, direction and plans. — 22— Admission going on for B.com all Sem crash course. Per Subje : 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) 31. Define Women Entrepreneur (2 Marks) [BHALOTIA] ‘Women enfreprencuis may be defined as a woman or a group of women who initiate, organise and run a ‘business concern, ‘Schumpeter — “Women entrepreneurs are those women who innovate, initiate or adopt a business activity”. Government of India - “A woman entrepreneur is defined as an enterprise owned and controlled by a woman having a minimum financial interest of 51 percent of the capital and giving at least 51 percent of the employment generated in the enterprise to women.” 32. What are the Problems (Challenges) for Women Entrepreneurs? (RKB) (10 Marks) [BHALOTIA] Women entreprenews encounter two sets of problems, viz, general problems of entrepreneurs and problems specific to women entrepreneurs. These are discussed as follows (a) Stiff completion: Women entrepreneurs do not have organizational set-up to pump in a lot of money for canvassing and advertisement, Thus, they have to face stiff competition for making their products with both organized sector and their male counterparts. Such a competition ultimately results in the liquidation of women enterprises. (b) Family ties: In India, it is mainly a women’s duty to look after the children and other members of the family. Man plays a secondary role only. In case of married women, she has to strike a fine balance between her business and family. Her total involvement in family leaves little or no energy and time to devote for business. Support and approval of husbands seem necessary condition for women’s entry into business, Accordingly, the edncational level and family background of husbands positively influence women’s entry into business activities. (© Male-dominated society: Male chanvinism is still the order of the day in India. The Constitution of India speaks of equality between sexes, But in practice, women are looked upon as abla, i.e, weak in all respects. Women suffer from male reservations about a woman’s role, ability and capacity and are treated accordingly. In nutshell, in the male-dominated Indian society, women are not treated equal to men. This, in tum, serves as a barrier to women entry into business. (@) Problem of finance: Finance is regarded as “life-blood” for any enterprise, be it big or small. However, women entreprenenrs suffer from shortage of finance on two counts. Firstly, women do not generally have property in their names to use them as collateral for obtaining funds from extemal sources. Thus, their access to the external sources of finds is limited. Secondly, the banks also consider women less creditworthy and discourage women borrowers on the belief that they can at any time leave their business, — 23 — Admission going on for B.com all Sem crash course. Per Subject: 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) (©) Scarcity of raw material: Most of the women enterprises are plagued by the scarcity of raw material and necessary inputs, Added to this is the high prices of raw material on the one had, and getting raw material at the minimum of discount, on the other. The failure of many women co-operatives in 1971 engaged in basket making is an example of how the scarcity of raw material sounds the death-knell of enterprises run by women, (Q) Low risk-bearing ability: Women in India lead a protected life. They are less educated and economically not sel£dependent. All these reduce their ability to bear risk involved in running an enterprise. Risk-bearing is an essential requisite of a successful entrepreneur. (@) Legal formalities: Women entrepreneurs find it extremely difficult to comply with various legal formalities in obtaining licenses etc (h) Limited mobility: Unlike men, women mobility in India is highly limited due to various reasons. A single woman asking for room is still looked upon with suspicion, Cumbersome exercise involved in starting an enterprise coupled with the officials’ humiliating attitude towards women compels them to give up the idea of starting an enterprise (@ Lack of education: In India, around three-fifths (60%) of women are still illiterate, Mliteracy is the root cause of socio-economie problems. Due to the lack of education and that too qualitative education, Women are not aware of business, technology and market knowledge. Also lack of education causes Jow achievernent motivation among women, Thus, lack of education creates problems for women in setting up and running business enterprises. 33. Discuss the Role of family business in India. [5M] Around the world, family-owned businesses form the backbone of a comy’s economy, driving growth and contributing to development. Family businesses in India have a rich history with multi-generational such businesses surviving through the ages to become an indispensable part of India’s economic Tandseape. Today, about 85% of all incorporated businesses in India are family businesses. They continue to have a massive impact on India’s economic growth — including contributing to the national GDP, creating jobs, and assisting in the nation-building process. Some of the largest and most profitable companies to come out of India are family-run enterprises. Some of these which have existed for over a lmndred years have evolved into global business conglomerates and they have put Indian business on the world map, Family businesses play a pivotal role in the Indian economy through their contributions to the country’s business growth and stability. Family businesses in India account for a whopping 79 percent of the national GDP. — 24 - Admission going on for B.com all Sem crash course. Per Subject: 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) 34, Discuss the sources of conflict in family business. (Important)**** [5 Marks] [BHALOTIA] The top sources of conflict are (a) Personality Differences: Family businesses that fail to acknowledge and accommodate differences in the personalities of individuals involved are more prone to conflict (b) Sibling Rivalries: If sibling rivalry persists even after the children’s entry into the family business domain this can lead to bitterness among the members (©) Communication: Unclear, partial and infrequent communication can be a source of conflict as it could lead to misunderstanding among family members. (@ Decision Making: Lack of clarity about / in the Decision Making process or the decision-making authority can be a potential cause for conflict (¢) In-Laws: In-laws and spouses may have different perspectives and interests. Unless their terms of engagement with the business is clarified this could be another source of conflict. (8) Succession: If a leader has not been jointly voted as a successor, it is likely to be source of conflict during the leadership transition stage as there may be many aspirants for the position. 35. Discuss the Conflict resolution techniques in family business. [10 Marks] [BHALOTIA] 1. Create a formal family council A fami ing together and keeping the li communication open, families can lead_more satisfied lives. Family councils help children learn to voice opinions respectfully, be responsible, leam problem-solving skills, and make decisions cooperatively with others, The family couneil is council is a valuable tool for families. By c es of (@) A meeting of family members at a routine time and place, (b) A time for family concerns & Business issues to be discussed. (©) A chance for each family member to express opinion, thoughts or feelings (@) A joint effort to make family decisions A family council deals with both positive and negative issues that affect the family. Some examples are: (a) Recognition of achievements: Family members! achievements and successes can be recognized in the family couneil. (b) Problem solving: Problems and solutions can be discussed in a clear and organized manner (©) Planning and decisions. (@) Family involvement: Family members can discuss what chores need to be done, who will do them, and how to share these responsibilities, jecision-making: All members of the family have a voice in family plans and — 25- Admission going on for B.com all Sem crash course. Per Subject: 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) Fai A family constitution is a charter that documents the values and principles of a family business. The contents of a family constitution underline the values and principles of the business while also providing reference points for decision-making concerning ownership and management. Since no family has the same composition or structure, a family constitution will vastly differ. Even in terms of conflict resolution, a family constitution will address the tribulations that that particular business can possibly take as per its past history. ‘The primary objective of a family constitution is to articulate the shared vision and goals that characterize the business, including unique features of both the family and the business espoused, akin to a corporate nission statement. Also in similar fashion to a corporate mission statement, a family constitution would define the organization and its reason for existence, as well as identifying the primary demographic it caters to. ‘amily Meetings Family meetings are opportunities for parents and children to discuss important issues, strengthen communication, reinforce values, and nurture positive relationships. Family meetings are opportunities for parents and children to discuss important issues, strengthen communication, reinforce values, and nurture positive relationships. ‘The purpose of a family meeting is to foster open communication among family members, It is a safe place where everyone is free to say what they think and feel as they cooperate to make decisions and solve problems, A structured meeting helps this to happen when a family is ready for it. 4. Family Retreat Family retreat weekends are a combination of traditional recreational activities like hiking and fishing with therapeutic workshops, peer-to-peer discussion groups and expressive arts and music activities A family business retreat is often a multiple-day event that brings together key people in the business for anin-depth discussion about topics important to the business's future. ‘amilv association or family organization or family assembly Family associations can be organized on different levels, such as immediate families--which include a husband and wife and their children, grandparent families--which include the descendants of siblings, and ancestral families--which include the descendants of an earlier common ancestral couple. 6. Conflict Resolution Training Conflict resolution is a skill that can be learned and developed for use in multiple settings with employees, vendors, and customers. Training uses the specific, real life conflicts inhibiting success and offers improved conunumication skills to break through barriers and to speed and deepen leaming — 26— Admission going on for B.com all Sem crash course. Per Subje 750; All: 2500)Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) Unit 2: Public & Private system of entrepreneurship. Public and private system of stimulation, support and sustainability of entrepreneurship. Requirement, availability and access to finance, marketing assistance, technology, and industrial accommodation, Role of industries/entrepreneur’s associations and self-help groups, The concept, role and functions of business incubators, angel investors, venture capital and private equity fund, 36. What do you mean by Stimulation in the context of entrepreneurship? [2 Marks] [BHALOTIA] In the context of entrepreneurship Development, stimulation refers to the act of identifying & motivating individuals , who possess a certain level of imagination & creativity, to leam & gain insights about practical business strategies, such that they become competent enough to provide for their customers, In the context of entrepreneurship, stimulation means to providing Encouragement to budding entrepreneur. 37. What do you mean by support in the context of entrepreneurship? [2 Marks] [BHALOTIA] In the context of entrepreneurship, Support refers to the act of assisting the entrepreneurs in various forms (e.g. Financial, Marketing, Technical etc.), The various initiatives adopted by the Government & non- Government organisation has resulted in many innovative & feasible entrepreneurial ideas being generated at various levels. 38. What do you mean by sustainal 'y in the context of entrepreneurship? [2 Marks] [Very Important] [99%] In the context of entrepreneurship, sustainability refers to the act of continuous, efficient & profitable maintenance of the activities of a venture over the long period Sustainability is the process of maintaining change in a balanced environment, in which the exploitation of resources, the direction of investments, the orientation of technological development and institutional change are all in harmony and enhance both current and future potential to meet human needs and aspirations. Activities for sustaining Entrepreneurshi (a) Helping in modemization or substitution of existing products (b) Facilitating quality testing & quality improvement mechanism at low cost. (6) Creating forums for entrepreneurs to share their mutual problems. —27-— Admission going on for B.com all Sem crash course. Per Subject: 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) 39. What do you mean by Public system of Stimulation? [2 Marks] [BHALOTIA] [9330960172/9883034569] In the context of entrepreneurship, a "public system of stimulation" typically refers to goverment-led initiatives, programs, and policies designed to encourage and support entrepreneurial activities within a society. These efforts aim to create a conchicive environment for business innovation, startup development, and economie growth. Normally it works through:- © Incenfives-Financial & non-financial given for the encouraging business * Subseed- Single lump-sum allowed from national interest ‘Assistance - Supporting elements provided by various sectors for development of Entrepreneurship * Direct support provided by the Govt © Indirect support provided by the Govt Approaches of public system of stimulation (a). Providing Tax holidays (b) Reduction of rate of interest (c) Abolition of monopoly privileges (@) Providing funding 40. What do you mean by Private system of Stimulation [2 Marks] [BHALOTIA] [9330960172/9883034569] In the context of entrepreneurship, a "public system of stimulation” typically refers to govermment-led initiatives, programs, and policies designed to encourage and support entrepreneurial activities within a society. These efforts aim to create a conducive environment for business imovation, startup development, and economic growth. Examples: () Industrial and entrepreneurship association, the association formed by an industrial group with the purpose of supporting and protecting the rights of industry and people associated with it. () Self-help group, the voluntary association group formed by poor people with the purpose of mutual help is called a self-help group. Approaches of priv system of stimulation (@) Crowd funding (b) Angel Investing (©) Encouraging intrapreneurship — 28— Admission going on for B.com all Sem crash course. Per Subje : 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) 41. What is industrial Estates? [2 Marks] [BHALOTIA] ‘An industrial estate has been definedas a method of “organizing, housing and servicing industry. a planed clustering of industrial enterprises offering standard factory building erected in advance of demand and a variety of services and facilities to the occupants”. In other words, an industiial estate is a tract of land subdivided and developed according to a comprehensive plan for the use of a community of industrial enterprises. It is a planned clustering of industrial units offering standard factory buildings and a variety of services and facilities to entrepreneurs. 42. Discuss role of industries in Entrepreneurship? [2 M] ‘The main Role of the establishment of industrial estates are as follows: (a) Provide infrastructure and accommodation facilities to the entrepreneurs, (®) Encourage the development of sinall-scale industries in the country; (©) Decenttalise industries to the rural and backward areas, (a) Encourage acceleration in surroundings of major industrial units, and (©) Develop entrepreneurship by creating a congenial climate to run the industries in these estates/area township, ete 43. Discuss the role of entrepreneur's association of India (EIA). [5 Marks] [BHALOTIA] [9330960172] Entrepreneurship today has become a very dynamic, growing and increasingly robust field as compared. to previously where little attention was given to technology, structure, influence or connections for growth, the markets were traditional as compared to now-a- days. Recognizing this gap this Association is formed in order to convey through mentors, leaders and practitioners who could share ideas, lessons leamed and networks in order to increase their impact. EAI aims to reach the otherwise unreachable, and serve the previously undeserved communities throughout our world. Entrepreneurs Association of India (EAL) is the most wiique and versatile platform in the country for all spheres of Entrepreneurs (potential as well as flourishing), Students, StartUps, StartUp aspirants, Youth, ‘Wemen, people of all age groups in and outside India to come together as a whole with the aim to achieve growth and development of their Community, District, State and ultimately Our Country, India EAI mainly focuses on development and growth of Entrepreneurs! Start ups /Young aspirants on District and Community levels across the nation, which has never happened before and thus distinguishing EAT above all from the league —29- Admission going on for B.com all Sem crash course. Per Subject: 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) 44, What are Self Help Groups? [2 Marks] (VVI) [99%]*** ‘A Self-help group (SHGs) is a community-based group with 10-25 members. Members are usually women fiom similar social and economic backgrounds, all voluntarily coming together to save small sums of money, on a regular basis. They pool their resources to become financially stable, taking loans fiom their collective savings in times of emergency or financial scarcity, important life events or to purchase assets, Self-help Groups (SHGs) are informal associations of people who come together to find ways to improve their living conditions. They are generally self-governed and peer-controlled, 45. What are the characteris: Ss of a good SHG? [5 M] A well-functioning SHG would have the following features: (a) Membership: 15-20 members (b) All members belonging to the same socio-economic strata (©) Astrong bond of affinity (@ Competent leadership (@) Members should attend all the meetings, save and participate in all activities voluntaily, (D) Should be a socially viable institution (g) Involvement of women in decision making and promoting leadership qualities among women 46. Discuss the role of Self Help Groups (SHGs)? [5 M] The advantages (Role) of SHGs are as follows: @ 1HGs incentivise banks to lend to poor and marginalised sections of society Ddecause of the assurance of retums. (b) Voice to marginalised — SHGs have given a voice to the otherwise underrepresented and voiceless sections of society. (©) Social Integrity ~ SHGs help eradicate many social ills such as dowry, alcoholism, early marriage, ete, (@) Gender Equality— By empowering women SHGs help steer the nation towards true gender equality. (©) Pressure Groups — SHG act as pressure groups trough which pressure can be mounted on the government to act on important issnes (f) Enhancing the efficiency of government_schemes — SHGs help implement and improve the efficiency of govemment schemes. They also help reduce coruption through social audits, (g) Alternate source of livelihood/employment — SHGs help people eam their livelihood by providing vocational training, and also help improve their existing sonrce of livelihood by offering tools, ete ‘They also help ease the dependency on agriculture (b) Impact on healthcare and housing ~ Financial inclusion due to SHGs has led to better family planning, reduced rates of child mortality, enhanced matemal health and also helped people fight diseases better by way of better nnttition, healthcare facilities and housing. (@ Banking literacy — SHGs encourage people to save and promote banking literacy among the rural segment, inanci Inclusion, — 30— Admission going on for B.com all Sem crash course. Per Subje : 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) 47. Who is a Business Incubator? [2 Marks] (VVI) [99%]** A business incubator is an organization that helps new and startup businesses to develop by providing services such as management training, office space, access to financing, and networking opportunities. The purpose of a business incubator is to accelerate the successfull development of new businesses and. help them to survive and grow. An incubator is a facility designed to nurture and accelerate the growth of new businesses. It typically provides resources such as office space, access to mentors and investors, shared services, and other resources to help entrepreneurs launch their business. Incubators typically offer a variety of services, such as educational programs, mentoring, networking, and access to capital. Incubators also provide a supportive environment where entrepreneurs are encouraged to take risks and learn from their mistakes. 48. Discuss the role and functions of business incubators? [5 Marks] [BHALOTIA] [9330960172] ‘The importance of business incubators for local communities and international business is one reason the business model has persevered and continues to change. Incubation programs offer everything from job creation to important innovation. 1. Creates Employment Opportunities Business incubation programns result in job growth. For this reason, many higher education organizations offer a business incubation program for their students. 2. Pushes Economic Development Along with job creation, incubators spur economic development in different industries and boost the economy. Without access to valuable resources, mentorship, and education, small businesses may not be able to get off the ground, Local economic development incubators are the catalyst for growth, 3. Offers Financial Perks Business incubators can help new companies save on operating costs, This can come in the way of providing a shared physical facility or kitchen. 4. Provide Access to Funding Business incubators give startups accountability and trustworthiness that may not be there without their support, Incubators may also help businesses meet angel investors and connect with investment banks. ‘The incubation process can include financial management and financing options, — 31 - Admission going on for B.com all Sem crash course. Per Subject: 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) 5. Gives V: ble Guidance d_ Advice One of the biggest roles offered by business incubators is mentorship and management training. Mentors can help develop the viability of the product or service G. Connects People Together Business incubators provide networking opportunities and access to experts in the field. These types of connections are difficult to build for other startups, not in the incubator 7. Access to Higher Education Resources A business incubator focuses on providing educational training for management and staff. 49. What are the different types of business incubator? [5 Marks] [BHALOTIA] [9330960172/9883034569] There are a number of business incubators that have focused on particular industiies or on a particular business model, earning them their own name ‘This list is incomplete; you can help by expanding it * Physical business incubator- Incubators that operate and interact with the firms fiom their physical office space are called Physical business ineubator- © Virtual business incubator — (online business incubator) Virtual incubators In comparison with traditional incubators, virtual incubators offer no physical workspace or office support. Instead, they offer online access to a network of entrepreneurs, investors and advisors, as well as support to help match other entreprenential needs to professional advice * Kitchen incubator - a business incubator focused on the food industry © Public ineubator - a business incubator focused on the public good ‘+ Seed accelerator - a business incubator focused on early startups © Corporate accelerator - a program of a larger company that acts akin to a seed accelerator © Startup studio - a business incubator with interacting portfolio companies © Hybrid Incubator- A business incubator that combines virtual incubator with on-premise activities 50. Who is an Angel investor? [2 Marks] (VVI) [99%]** An angel investor (also known as a business angel, informal investor, angel fimder, private investor, or seed investor) is an individual who provides capital to a business or businesses, including startups, usually in exchange for convertible debt or ownership equity. Angel investors often provide support to startups at a very early stage (when the risk of their failure is relatively high), once or in a consecutive ‘manner, and when most investors are not prepared to back them. — 32 - Admission going on for B.com all Sem crash course. Per Subject: 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) Most angel investors are relatively wealthy individuals who are looking for a higher rate of return than. can be found in more traditional investment opportunities. They search for startups with intriguing ideas and invest their own money to help develop them further Angel investor is a broad term that refers to a variety of people who invest in various ways, including the following: + Family and fiiends © Wealthy People © Groups © Crowdfinding: 51. Discuss the features of Angel investor? [5 Marks] Features of angel investors are as follows: (@) High net worth persons: — Angel investors are ustully high net worth persons who happen to invest their personal wealth in start-ups. They may include professionals such as doctors, lawyers, sports persons etc, business associates such as executives, suppliers, customers and even other entreprenews. (b) Investment in small star-up firms: - An angel investor is typically interested in investing his or her money in small start-up business that has high growth prospects: (c) Investment in Equity- Angel investors in retum for their funding take equity shares in the start-ups business. Sometimes they accept convertible debentures in exchange of their investments, (d) Own Decision Making: - They make their own decision about the investment in start- ups. (©) Local or Regional Investing: - Most angels tend to invest in local or regional start-up firms. (O Advisory Role: - Inanany cases, the angel investors provide insight and advice to the start-ups, and thus happen to play an active role in its management 52. Discuss the advantages of Angel investor? [5 Marks] Presented below are the advantages of angel investments (@) Connections Angel investors in India are well-connected in a business as they connect the entrepreneur to new clients, business partners, and funding options. (b) Expert Investors: With angel investment, you can have extensive sectoral knowledge. ‘They may be business owners with expertise and experience in the same industry and provide you with guidance for success © Extended Support: Angel investors must be encouraged by the position to contribute the maximum that they can. In addition, adding their name to the business profile may raise funding — 33 - Admission going on for B.com all Sem crash course. Per Subject: 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) (@ Big bankroll: If the small firm needs more money, it may consult the angel investor for additional contributions. Even when an establishment cannot secure finance fiom the bank or other financial agency, they may get support fiom angel investors. (©) Provide funds to small start-ups: Angel investors provide fiunds to small start-ups in exchange of ownership equity finance in high risk untied projects (0) Provide seed capital to finance innovation: They provide seed capital to finance innovations even in the pre-start up stage and in early stage of the start-ups. (@) Active role in the management of the start-ups: They play an active role in the management of the start-ups, even though their primary jobs not to build up the firm. (hb) Extensive external contact network: An angel helps a start-up by bringing an extensive extemal contact network, including potential customers, vendors and financing institutions, 53. What do you mean by Crowd funding? (BHALOTIA) (9330960172) [2 marks] (imp)***** ‘Crowdfunding is the use of small amounts of capital from a large number of individuals to finance a new business venture, Crowdfunding makes use of the easy accessibility of vast networks of people through social media and crowdfunding websites to bring investors and entreprenemss together, with the expanding the pool of investors beyond the traditional circle of potential to increase entrepreneurship by owners, relatives, and venture capitalists 54. What do you mean by Venture Capital? [2 Marks] (VVI) [99%]**[BHALOTIA] [9330960172/9883034569] © Venture capital (VC) is a form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential Venture capital financing is finding provided to companies and entrepreneurs, It can be provided at different stages of their evolution, although it often involves early and seed round funding, © Venture capital generally comes fiom well-offinvestors, investment banks, and any other financial institutions. However, it does not always take a monetary form; it ean also be provided in the form of technical or managerial expertise * Venture capital funds manage pooled investments in high-growth opportunities in startups and other early-stage firms and are typically only open to accredited investors — 34— Admission going on for B.com all Sem crash course. Per Subje : 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) 55. Discuss the features of Venture Capital. [5 Marks] Features of venture capital are as follows: (@) Form of equity investment :-It is type of equity participation, which takes the form of share capital in growing firms. (b) Risky Capital: Venture capital investments are made in new, innovative and untried projects. Hence this capital is also referred to as Risk Capital. (©) Early stage finance :-It is a mode of financing start-up ventures for which it difficult to raise funds the formal sources at their early stage of existence. @_ Long term investment: -Long term investments, which ate made in businesses, happen to have high growth potential. (©) Highrate of return: - Venture capitalists typically eama very high rate of retum on their investments. ‘The key is to compensate the huge risks that they take by investing in new and untied ventures. (£) Coupled with managerial assistance: -The venture capital investment is combined with managerial assistance that is provided by the venture capitalists to the entrepreneur. They provide marketing, technology, planning and management expertise to the firm. 56. Discuss the role of Venture capital? [5 Marks] Venture capitalists have the following role (a) Venture capitalists provide capital to high-growth potential companies in exchange for an equity stake. (b) They target firms that are already generating revenue and are seeking additional finds to commercialize their ideas (©) Venture capitalists nurture the growth of the companies they invest in, with the aim of cashing out with a substantial return on investment (@)_ Venture capitalists risk investing in such companies to earn a massive retum on investments when these companies become successful (©) They pool money from various sources, including wealthy individuals, insurance companies, pension funds, foundations, and corporate pension finds, to ereate a fund that they control (f) Venture capitalists control where the money in the fund is invested, usually in businesses or ventures that most banks or capital markets avoid dhe to the high degree of risk. (g) They carn money through management fees and carried interest, with a percentage of the profits paid to company that is managing the private equity fuund, and the rest going to the limited partners who invested in the fund. — 35 - Admission going on for B.com all Sem crash course. Per Subject: 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) 57. What do you mean by Private equity fund? [2 Marks] (important) [67%] [BHALOTIA] [9330960172] Private equity is a broad term used to describe various Kinds of finds that accumulate money from an assembly of investors in order to generate a huge pool of money, which are then used to acquire stakes in various portfolio companies. A private equity fimd is a general partnership formed by private equity firms ‘These firms pool money, which is utilized to invest in matured private companies Private equity is an altemative investment class and consists of capital that is not listed on a public exchange. Private equity is an alternative form of private financing, away fom public markets, in which funds and investors directly invest in companies or engage in buyouts of such companies. Private equity investment comes primarily from institutional investors and accredited investors, who can dedicate substantial sums of money for extended time periods. 58. Discuss the role and functions of Private equity fund. [5 Marks] [BHALOTIA] [9330960172/9883034569] Eunctions: (a) These funds typically make capital investments in relatively mature companies that seek such growth capital to expand, restructure operations or enter new markets. (®) These fimds sometimes provide venture capital support to small, early stage emerging businesses that are deemed to have high growth potential. (©) Private equity typically provides working capital to the target businesses to stinmlate expansion, invest in new product development ete (@) Private equity provides the capital infusion required to replace and upgrade obsolete equipment. (©) With the expertise that private equity funds provide, businesses can gain access to markets that aay have been closed to them when they operated ona smaller scale. (Private equity funds help mitigate risks of individual managers by diversifying its assets across a pool of managers. —36- Admission going on for B.com all Sem crash course. Per Subject: 750; All: 2500Bhalotia Classes (9883034569): ED 1sem (Crash course @ 750/subject) 59. Discuss the features of Private equity fund. [5 marks] Features: - (a) Limited Liability Firms: - Private equity funds are typically formed by limited liability partnership firms (b) Professionally managed: - private equity fund is raised and managed by investment professionals, (©) Eund Providers the major sources of funds are institutional funds and aceredited investors, (@ Investment in matured firms: - This finds pool money to invest in matured private companies, which typically happen to be unlisted companies. (© Long investment horizon: - typically, private equity funds have a fixed investment horizon, which is typically 10 years phus few years of extension. (O Nature of investment securities: - Private equity funds may invest directly in equity secuities of the target investment, in the form of mezzanine debt or in both equity and debt. 60. What do you mean by Seed Capital? [2 Marks] (imp) [90%] [BHALOTIA] [9330960172/9883034569] Seed capital is required for financing the pre-start stage of firms Le. financing of ideas that have not yet come to market Seed capital is the initial amount of money an entrepreneur uses to start a business. Often, this money comes from family, friends, early shareholders or angel investors. Seed capital is typically used to support the planning ofa busines selling a product or service, It nonmally covers expenses until the business can make money and thereby attract more investors 1°‘ Semester Crash Course up to the point when the company starts Per Subject: 750; All Subjects: = 2,500. Almost Daily Classes till last Day of Exam. Online, offline & recorded all options. Offline classes at Girish park centre. Contact office for details FOR SUGGESTIONS/MOCK TEST/ALL UPDATES: Join telegram: https://t.me/CU_bcom_1sem Join telegram: https://t.me/bhalotia —37- Admission going on for B.com all Sem crash course. Per Subject: 750; All: 2500