Class XI

BUSINESS STUDIES

CHAPTER 1 (ENTERPRISE)
 Key points to look back at:

⚫Purpose of business activity

⚫Appropriateness of legal structure: sole trader,
partnership, private limited companies, public
limited companies, franchises, co-operatives, joint
ventures and changes from one to another business
structure (link:
https://www.handhaccountants.com/accountancy-a
dvice/should-i-be-a-sole-trader-partnership-llp-or-li
mited-company/
)
 Cont.

⚫Different types of goods (consumer and producer)

⚫Factors of production and scarcity problems
⚫Concept of added value and creating value (One of
the ways of increasing value added is through
reducing cost. Reference link:
https://www.youtube.com/watch?v=Txt_l5dKgtk)
⚫Opportunity cost in the industry and daily life
 Role of entrepreneur in a business

⚫ Had an idea for a new business

⚫ Invested some of their own savings and capital
⚫ Accepted the responsibility of managing the business
⚫ Accepted the possible risks of failure
(Can also be referred to as functions/characteristics of
an entrepreneur)

What is the difference between a businessman and an

entrepreneur? (
https://www.youtube.com/watch?v=iwOYGLS3Qhw)
 Characteristics of successful entrepreneurs

⚫Innovation
⚫Commitment and self-motivation
⚫Multi skilled
⚫Leadership skills
⚫Self-confidence and an ability to bounce back
⚫Risk taking

For other characteristics of a successful entrepreneur

refer to this link:
https://www.youtube.com/watch?v=YEhhqqCFxog
 Major challenges faced by entrepreneurs

⚫Identifying successful business opportunities

⚫Sourcing capital (finance)
⚫Determining a location
⚫Competition
⚫Building a customer base

For better insight refer to this link:

https://www.youtube.com/watch?v=tncLmP1Id9Q
 Why do new businesses often fail?

⚫Lack of record keeping

⚫Lack of cash and working capital
⚫Poor management skills
⚫Changes on business environment

For better understanding refer to this link:

https://www.youtube.com/watch?v=iAfNeQfVD6M
 Common types of entrepreneurial business

⚫Primary, secondary and tertiary/service sector

Impact of enterprise on a country’s economy:
⚫Employment creation
⚫Economic growth
⚫Innovation and technological change
⚫Exports
⚫Personal development
⚫Increased social cohesion
 Social enterprise

⚫What is a social enterprise?

⚫Objectives: Economic, Social and Environmental
Link for better understanding:
https://www.youtube.com/watch?v=EpmBTDeTSH
g