entrepreneurship skills 1

Question 1

Entrepreneurs

Answer 1

Economists define an entrepreneur as someone, who
brings in resources, labour, material and other assets
into profit making combinations.

Psychologists define an entrepreneur as a person,
who is, typically, driven by a psychological force, which
creates a desire to obtain or attain something.

Question 2

Entrepreneurship development

Answer 2

Entrepreneurship development refers to the process
of enhancing entrepreneurial skills and knowledge
through structured training and institution building
programmes.

An entrepreneurship
development programme must be designed in a way so
as to help aspiring entrepreneurs recognise and design
unique and innovative business opportunities based on
an analysis of local conditions and their own skills.

Question 3

Training in entrepreneurship development needs to
include support for

Answer 3

(a) entrepreneurship orientation
and awareness,

(b) development of competencies (knowledge, skills and attitudes) necessary to recognise
a market opportunity and organise resources to meet it,
and

(c) improvement of business performance for growth
and competitiveness.

Question 4

entrepreneurship

Answer 4

an economic
process, where an idea is generated or an opportunity
is created, refined, developed and implemented, while
being exposed to uncertainty to realise a profit by
effective utilisation of resources

Question 5

Characteristics of entrepreneurship

Answer 5

• It is an economic activity done to create, develop
  and maintain a profit-oriented organisation.
• It begins with identifying an opportunity as a
  potential to sell and make profit in the market.
• It deals with optimisation in utilisation
  of resources.
• It is the ability of an enterprise and an
  entrepreneur to take risks.

Question 6

Qualities of a successful entrepreneur

Answer 6

• Initiative: An entrepreneur must be able to
  initiate action and take advantage of an opportunity.
• Willingness to take risks: In any business,
  there is an element of risk involved.
• Ability to learn from experience: An entrepreneur
  may make mistakes. However, once an error
  is committed, it must be tried that it is not
  repeated as it may lead to heavy losses.
• Motivation: Once you get motivated to do
  something, you will not rest until you complete
  it.
• Self-confidence: For achieving success in
  life, a person needs to have confidence in
  oneself.
• Hard work: The
  entrepreneur has to be vigilant so as to identify
  the problems and solve them as early as
  possible.
• Decision making ability: In running an
  enterprise, an entrepreneur has to take a number
  of decisions.

Question 7

Business entrepreneurs

Answer 7

• These are entrepreneurs, who undertake business
  and trading activities and are not concerned with the
  manufacturing work.
• The product may be existent in a foreign market but
  the person is able to stimulate demand for the same in
  local market.

Question 8

Service entrepreneurs

Answer 8

These entrepreneurs either create a new market for
their services or provide a service in an existing market.

Question 9

Industrial entrepreneurs

Answer 9

An industrial entrepreneur is, essentially, a manufacturer,
who identifies the needs of customers and creates products
or services to serve them.

Question 10

Agricultural entrepreneurs

Answer 10

Agriculture has always been considered as a low-yielding
entrepreneurship. Agriculturists have now introduced
new and innovative technology to maximise the yield,
giving birth to agriculture entrepreneurship.