Director of Distance Education

Swami Vivekanand Subharti University, Meerut

MASTER OF BUSINESS ADMINISTRATION

Assignment Report

Director of Distance Education

Swami Vivekanand Subharti University, Meerut

 Name of student :- ASHISH KUMAR

 Course Code :- MBA- 401
 Course Title :- Entrepreneurship and Small
Business Management
 Assignment No. :- MBA-401/2023
 ENROLL MENT NUMBER :- CR2212390164
 ROLL NUMBER :- C0422R001270
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Q1. What do entrepreneurs do that distinguishes them from other
persons involved in business?

ANS. Entrepreneurs are individuals who engage in the process of

creating and managing a new venture, taking on financial risks in the hope
of achieving profit and success. Several characteristics and actions
distinguish entrepreneurs from others involved in business:

1. Innovation and Creativity: Entrepreneurs are often known for

their innovative and creative thinking. They identify opportunities
and develop unique solutions to address market needs,
introducing new products, services, or business models.

2. Risk-taking: Entrepreneurs are willing to take calculated risks.

They understand that success often involves uncertainty and are
comfortable taking risks to pursue their vision. However,
successful entrepreneurs typically assess and manage risks
strategically.

3. Vision and Long-Term Focus: Entrepreneurs have a clear vision

of what they want to achieve with their venture. They are forward-
thinking, setting long-term goals and working towards them, even
in the face of short-term challenges.

4. Proactive and Action-oriented: Entrepreneurs are proactive in

identifying opportunities and problems. They take initiative and are
action-oriented, quickly adapting to changing circumstances and
making decisions to drive their ventures forward.

5. Persistence and Resilience: Building a successful business often

involves facing setbacks and failures. Entrepreneurs exhibit
persistence and resilience, learning from their experiences and
continuing to pursue their goals despite obstacles.

6. Flexibility and Adaptability: Entrepreneurs operate in dynamic

environments and need to adapt to changing market conditions,
customer preferences, and technological advancements. They are
flexible in their approach and open to adjusting their strategies as
needed.
 7. Passion and Commitment: Successful entrepreneurs are
passionate about their ventures. This passion fuels their
commitment and dedication, helping them navigate challenges and
stay focused on their goals.

8. Networking and Relationship Building: Entrepreneurs

understand the importance of networking and building
relationships. They establish connections with mentors, advisors,
investors, and other entrepreneurs, leveraging these relationships
to gain insights, support, and opportunities.
9. Financial Acumen: Entrepreneurs need to manage finances
effectively. This includes budgeting, financial planning, and making
informed decisions about funding, investments, and revenue
generation.
10. Leadership Skills: Entrepreneurs often assume leadership
roles within their organizations. Effective leadership involves
inspiring and guiding a team, fostering a positive and productive
work culture, and making decisions that align with the company's
vision.
While these traits are commonly associated with entrepreneurs, it's
essential to recognize that individuals can develop and cultivate
entrepreneurial skills over time, and not all successful business people
embody every characteristic listed above. Entrepreneurship is a diverse
field, and different approaches can lead to success based on individual
strengths and the nature of the business.

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Q2. Describe the significance of triggering events in

entrepreneurship. Give examples.

ANS. Triggering events in entrepreneurship are pivotal moments or

circumstances that serve as catalysts for the initiation, growth, or
transformation of a business venture. These events can create
opportunities or challenges, prompting entrepreneurs to take decisive
actions. Understanding the significance of triggering events is crucial for
entrepreneurs to capitalize on opportunities, navigate challenges, and
adapt to changing circumstances. Here are examples of triggering events
in entrepreneurship:

1. Technological Advances:

Example: The widespread adoption of a new technology, such as the

emergence of the internet or advancements in artificial intelligence,
can trigger opportunities for entrepreneurs. E-commerce businesses,
online platforms, and tech startups have emerged as a result of such
technological shifts.

2. Market Trends and Consumer Behavior

Changes:

Example: A shift in consumer preferences or behavior, such as a

growing demand for sustainable products or a preference for online
shopping, can be a triggering event. Entrepreneurs may seize the
opportunity to create businesses that align with these trends.

3. Regulatory Changes:

Example: Changes in government regulations, such as the

legalization of a previously restricted industry (e.g., cannabis or ride-
sharing services), can create new market opportunities for
entrepreneurs to enter and innovate.

4. Economic Downturns or Recessions:

Example: Economic challenges can lead to cost-cutting measures in

traditional industries, prompting entrepreneurs to identify more
efficient and innovative solutions. Many successful startups, including
Airbnb and Uber, emerged during the economic downturn of 2008.

5. Emergence of Competing Technologies:

Example: The introduction of new technologies that compete with

existing ones can create opportunities for disruption. For instance, the
advent of electric vehicles challenging traditional gasoline-powered
cars is a triggering event for entrepreneurs in the transportation
industry.
 6. Personal Experiences or Passion:

Example: Personal experiences, hobbies, or passions can be

triggering events for entrepreneurship. An individual with a passion
for fitness might start a health and wellness business, while someone
with a love for food might launch a restaurant or food-related venture.

7. Access to Funding:

Example: Securing significant funding or investment can be a

triggering event, enabling entrepreneurs to scale their operations,
invest in research and development, or enter new markets.

8. Partnerships or Collaborations:

Example: Forming strategic partnerships or collaborations with other

businesses or organizations can be a triggering event, providing
entrepreneurs with access to new resources, markets, and expertise.

9. Personal Life Changes:

Example: Personal life events, such as a relocation or a major life

transition, can lead individuals to reassess their career paths and
become entrepreneurs. For instance, starting a business in a new
location to address unmet local needs.

10. Industry Disruptions:

Example: Disruptions within an industry, such as changes in supply

chain dynamics or the introduction of new business models, can
create opportunities for entrepreneurs to introduce innovative
solutions.

Understanding and responding effectively to triggering events is a key

aspect of entrepreneurial agility and adaptability. Entrepreneurs who
can recognize and capitalize on these events are better positioned to
navigate the dynamic landscape of business and contribute to the
success and sustainability of their ventures.
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Q3. How is small business management different from
entrepreneurship?
ANS. Small business management and entrepreneurship are related
concepts, but they involve different focuses and approaches. Here are
some key distinctions between small business management and
entrepreneurship:

1. Primary Focus:

 Small Business Management: The primary focus of small business

management is on the efficient and effective operation of an existing
business. It involves day-to-day activities such as planning,
organizing, staffing, directing, and controlling resources to achieve
specific business goals. Small business managers aim to maintain
stability and consistency in their operations.

 Entrepreneurship: Entrepreneurship, on the other hand, is focused

on the creation and development of new ventures. It involves
identifying opportunities, taking risks, and innovating to bring new
products, services, or business models to the market. Entrepreneurs
are typically associated with the initiation of something new and the
pursuit of growth and expansion.

2. Innovation and Risk-Taking:

 Small Business Management: While small business managers may

implement incremental improvements and changes, their primary
concern is often the day-to-day operation of the business. They tend
to prioritize stability and may be less inclined to take significant risks
or pursue radical innovations.

 Entrepreneurship: Entrepreneurs are known for their willingness to

take risks and their focus on innovation. They actively seek out
opportunities to introduce new ideas, products, or services, often
disrupting existing markets or creating entirely new ones.
 3. Scale and Growth:

 Small Business Management: Small business management is often

associated with maintaining a manageable scale. The goal may be to
run a profitable and sustainable business without necessarily aiming
for rapid growth or expansion.

 Entrepreneurship: Entrepreneurship often involves a focus on

growth and scalability. Entrepreneurs seek to build businesses that
can scale, either in terms of market reach, revenue, or impact.
Expansion and growth are integral to the entrepreneurial mindset.

4. Ownership and Control:

 Small Business Management: In small businesses, ownership and

control are typically more centralized. Owners or managers may have
a hands-on approach to decision-making and day-to-day operations.

 Entrepreneurship: Entrepreneurs may start with a high level of

ownership and control, but as their ventures grow, they might need to
navigate issues related to delegation and organizational structure.
Successful entrepreneurs often develop strategies to scale their
ventures without losing control entirely.

5. Motivation and Vision:

 Small Business Management: Small business managers may be

motivated by the desire for stability, financial security, and a
sustainable lifestyle. Their vision is often centered around managing
a successful business with a steady customer base.

 Entrepreneurship: Entrepreneurs are often motivated by a vision of

creating something new, bringing about positive change, or
addressing unmet needs in the market. Their motivation extends
beyond financial considerations to include a passion for their ideas
and a desire to make a significant impact.
 6. Role in the Economy:

 Small Business Management: Small businesses play a crucial role

in the economy by providing employment opportunities and
contributing to local communities. Their impact is often more
localized.

 Entrepreneurship: Entrepreneurial ventures can have a broader

impact on the economy, fostering innovation, creating new industries,
and generating employment on a larger scale. Successful
entrepreneurs often become drivers of economic growth.

While these distinctions help clarify the differences between small business
management and entrepreneurship, it's important to note that the two
concepts are not mutually exclusive. Entrepreneurs may engage in small
business management as their ventures mature, and small business
managers may adopt entrepreneurial strategies to adapt to changing
market conditions. The distinction lies in the primary focus and mindset
associated with each concept.
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Q4. Why would an entrepreneur be concerned about harvesting a

business that has not yet been started?
ANS. Harvesting a business refers to the process of realizing the
value of an investment in a business by selling it, taking it public, or
implementing another exit strategy. Typically, the concern about harvesting
a business arises after the business has been established, grown, and
reached a certain level of maturity. However, in certain entrepreneurial
contexts, there may be reasons for an entrepreneur to be concerned about
harvesting a business even before it has been started. Here are some
possible scenarios:

 Investor Expectations:

If an entrepreneur is seeking external funding or partnership from

investors, those investors may have specific expectations regarding
the potential exit strategy. Investors often want to know how they will
eventually realize a return on their investment. Addressing this
concern upfront can be crucial in attracting the right investors.

 Strategic Planning:

Some entrepreneurs may have a clear strategic vision for their

business from the outset, including the eventual exit strategy.
Understanding the potential exit options and planning for harvesting
can inform the overall business strategy, helping entrepreneurs make
decisions that align with their long-term goals.

 Alignment with Personal Goals:

Entrepreneurs may have personal reasons for wanting to harvest a

business early on. For example, if an entrepreneur has a specific
financial goal or a desire to start multiple ventures, the consideration
of harvesting could be part of the initial business planning process.

 Leveraging Intellectual Property:

In certain industries, entrepreneurs may be focused on creating and

monetizing intellectual property rather than building a long-term
operational business. In such cases, harvesting the business could
involve licensing or selling the intellectual property rights once they
are developed.

 Building for Acquisition:

Some entrepreneurs may enter the business with the intention of

building a startup with attractive features for potential acquirers. This
could involve developing innovative technology, acquiring a
substantial user base, or creating valuable partnerships that make the
business appealing to larger companies.

 Market Dynamics and Trends:

 Entrepreneurs who closely follow industry trends may identify
opportunities to start a business with the intention of capitalizing on a
specific market condition or trend that is expected to lead to
acquisition or consolidation in the industry.

 Serial Entrepreneurship:

Serial entrepreneurs, individuals who repeatedly start, grow, and sell

businesses, may be concerned about harvesting a business before it
has been started if their overall business strategy involves quickly
moving from one venture to the next.

 Government Programs or Incentives:

In some cases, entrepreneurs may be motivated to start a business

with the intention of taking advantage of government programs or
incentives that encourage the growth and sale of certain types of
businesses.

While these scenarios highlight why an entrepreneur might be concerned

about harvesting a business that has not yet been started, it's important to
note that these considerations are more commonly associated with
entrepreneurs who have a specific vision or strategy in mind before
launching their ventures. In many cases, entrepreneurs focus on building
and growing their businesses before seriously contemplating exit strategies
such as selling or going public.
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Q5. Explain why people who own a small business may not enjoy
pure Independence.
ANS. While owning a small business offers a level of independence
and autonomy, the reality is that small business owners may not always
enjoy pure independence due to various factors. Here are some reasons
why the notion of pure independence may be tempered for small business
owners:

 Financial Dependence:
Small business owners often rely on external sources of funding,
such as loans, investments, or credit lines, to start or expand their
businesses. This financial dependence can create obligations and
commitments to lenders or investors, influencing decision-making and
limiting absolute independence.

 Customer and Market Dependencies:

Small businesses depend on customers and the broader market for

their success. Customer preferences, market trends, and economic
conditions can significantly impact business operations. Small
business owners may find themselves adapting their products or
services to meet market demands, which can limit their independence
in shaping the direction of the business.

 Regulatory Compliance:

Small businesses are subject to various regulations and compliance

requirements imposed by local, state, and federal authorities.
Adhering to these regulations is essential for legal and operational
reasons, and failure to comply can have serious consequences.
Navigating regulatory frameworks may restrict certain business
decisions, reducing the absolute independence of the business
owner.

 Supplier and Vendor Relationships:

Small businesses often rely on suppliers and vendors for the

procurement of goods and services. These relationships can
influence inventory management, pricing strategies, and overall
business operations. Dependence on specific suppliers can limit the
flexibility and independence of small business owners.

 Employee Dependence:

Small businesses require a team of employees to function effectively.

While having a dedicated workforce is essential, it also means that
business owners must consider the needs and expectations of
employees. Decisions related to hiring, management practices, and
 workplace policies can impact the level of independence a business
owner has.

 Competition and Market Forces:

Small businesses operate within competitive environments where

market forces, industry trends, and the actions of competitors can
shape the landscape. Adapting to changing market conditions may
require small business owners to make strategic decisions that align
with market dynamics, limiting complete independence.

 Technology and Infrastructure Dependence:

Reliance on technology and infrastructure, such as online platforms,

payment systems, and communication tools, is common for small
businesses. Changes in technology or disruptions to essential
infrastructure may necessitate adjustments in business operations,
reducing absolute independence.

 Economic Factors:

Economic factors, including inflation, interest rates, and economic

downturns, can significantly impact small businesses. Economic
challenges may force business owners to make decisions that
prioritize survival or financial stability over the pursuit of complete
independence.

 Personal and Work-Life Balance:

Small business owners often invest significant time and energy into
their ventures. Balancing personal life with business responsibilities
can be challenging, and personal commitments may influence
business decisions. Achieving a work-life balance may require
compromises that affect the owner's sense of pure independence.

While small business owners may not enjoy pure independence, they do
benefit from the ability to shape their business's direction, make strategic
decisions, and create a work environment aligned with their values. The
challenges mentioned highlight the interconnected nature of businesses
within broader economic and social contexts, emphasizing the importance
of adaptability and strategic decision-making for small business success.
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