eship Flashcards
reasons of starting an enterprise:
- To solve a Problem: Some organizations are formed to solve the problem of the
customers, or the government or the society. For example, there are some software like
Grammarly which are available to correct the spelling and grammatical errors. - To exploit an idea: Sometimes an enterprise is started to provide the benefit to the
society from an idea. The inventions are taken up to a platform where they can serve
the public. For example, the advertising agencies sell idea to the companies who cannot
make advertisements on their own. - To fill a gap: Some enterprises are being formed because there is a difference in the
existing product and the expected product. These enterprises mainly focus upon the
innovations. For example, The IBM felt the gap between the already existing mobile
phones and the expected smart phones and launched the mobiles with e-mail facility.
characteristics of a business entrepreneur
- Risk seeking - the entrepreneur is risk seeking as he/she gets an adrenaline rush from
risk. It satisfies the adventure needs, and failure different disappoint the entrepreneur. - Problem identifying - entrepreneur is sensitive to people’s problems and empathizes
worth them. This motivated him to seek solution to the problems. - Solution seeking- entrepreneur is skilled and educated, thus capable of findings,
producing and providing solutions to problems within limited resources
char. of ent. continued
Innovative- thinking out of the box and unconditionally stands an entrepreneurial
venture out from other businesses. Innovation also requires him to find solutions in such
a way so as to sustain own business as well as the environment.
5. Motivated - an entrepreneur is enthusiastic and is not demotivated by failures. He
introspects to find the shortfalls and builds an improved structure by learning from
mistakes.
6. Self-critical- entrepreneur is self- critical and is willing to learn from other
achievements. He critically examines each of his own ventures and aims to beat himself.
7. Good communicator- an entrepreneur is good at communication and convincing
skills. This helps him acquires initial funding as well as market his innovations.
8. Excellent leader- entrepreneurship requires cultivation of leadership skills, as it
requires proper delegation of duties to be performed by group members, thus enabling
the entrepreneur to direct his energies to more important issues.
define eship
Entrepreneurship can be defined as the process of developing, organizing and running a
business activity with the motive of earning the profits. In order to generate the profit, the
entrepreneur has to undertake many risks. It can be termed as the art of creating a business and
generating the employment for others.
Benefits of Entrepreneurship
Helps in creating the jobs: Entrepreneurship is a process where the business activities
are undertaken. To perform these activities a well skilled and competent staff is
required. The entrepreneurial activities require human resources those who can make
the enterprise successful. Therefore, such kind of activities create jobs in the market.
2. Innovation: The new ventures are started to take the new and innovative products to
the public. The entrepreneurship leads to the innovations and development in the
existing offerings. It has been observed that some of the latest technologies are a result
of the new businesses.
3. Change: Entrepreneurs are known for their unique thinking. They brought changes to
the society. They just follow their instinct and ready to take the risk. Entrepreneurs like
Steve Jobs and Bill gates are the greatest examples of game changers.
Adds to the Society: The entrepreneurial activities always help the society to grow.
They bring a lot of changes and improvements in the standard of living. They introduce
new products to the public. They also make many activities convenient for the people.
For example, the services on urban clap for the people who do not have time to search
for such services physically.
5. Nation Building: As it creates the job and a huge profit for the entrepreneur, it creates
a wealthy nation also. As per a report by Global Entrepreneurship Monitor the
entrepreneurial activities rise from 5.3% in 2020 to 14.4 % in 2021. Also, the Business
Ownership rate has risen to 8.5% in 2021 from 5.9 % in 2020
PROCESS OF ENTREPRENEURSHIP
problem solving
idea generation
feasibility studies
planning
launch
growth
problem solving
The first step in entrepreneurship is to find the need, want,
problem or deficiency in the society. The problem should be general to people and should
be approachable. Understanding of the environments and sensitivity to public sentiments
provides opportunities to the entrepreneurs.
The entrepreneurship’s need arises because of the gaps in the market. The entrepreneur
identifies the interest area and the audience he needs to cater. Then he analysis the
environment and identifies the need
idea generation
Idea generation- idea to provide solution to problems is the second step to a start-up.
The idea should be sustainable to the environment, sensitive to the society and compliant
with the legislation. The process of idea generation involves the techniques like group
brainstorming and solo brainstorming.
* Group brainstorming: It is the process of collecting ideas from different group
members according to their experience and views. It helps the organization to have
diverse views on the same topic.
* Solo brainstorming: It involves the entrepreneur to think and work upon various
alternatives to reach to the final idea.
feasibility study
Feasibility study- Feasibility test is the study of viability of the idea in terms of cost
benefit and sustainability over the long term. It includes the following studies which can
help the entrepreneur to make the decision.
Sample study: Before starting the business, a sample study is conducted to know the
reaction of audience.
field survey: A survey is done beforehand so that the field can be studies easily.
planning
lanning- Planning is the initial most step-in execution of idea. It starts with acquisition
of funds, resources and labour and transformation of the energies to delivery of goods
and services in conformity to public needs and wants. The entrepreneur analyses the
different sources of funds and resources so that he can acquire them in the most profitable
manner.
Acquisition of Funds: The entrepreneur has to decide among different types of funds
like equity, debentures and, long term loans etc.
Resource Allocation: The Entrepreneur has to decide about the recruitment of its human
resources in the most efficient manner. He/she also need to decide about the Plant and
Machinery, from where they can be acquired at the minimum cost.
launch
Launch- Once the feasibility tests are done, and the opportunity is clear to the
entrepreneur, and sufficient funds have been collected, he then plans the launch of his
idea, through his enterprise. This is called the final execution process. The
implementation of the plans needs the perfect synchronization among its system,
structure and the people. The execution of the plan involves all the departments to work
rigorously towards the achievement of the desired/planned goals.
growth
Growth- Entrepreneurship is about constant evaluation and improvement. The
entrepreneur then seeks new ideas for inculcating in his enterprise, to render it competent
and sustainable in uncertain environments. Evaluation is an important part of any process
as it allows the entrepreneur to know the results of his/her efforts. If any kind of variance
is detected then some corrective actions are to be taken to improve the results.
Large Company Entrepreneurship
Large Company Entrepreneurship is a type of entrepreneurship where the life cycles of the
organization are already defined. It means they have to continuously work upon the
improvement of their products and services due to the prevailing competition and customer
expectations. Mostly, such kind of entrepreneurships are a result of small business or scalable
Start-up entrepreneurships.
Features of Large Company Entrepreneurship
Features of Large Company Entrepreneurship
1. Innovations: In this type of entrepreneurship, owners mainly focus upon the
innovations and work towards the society upliftment.
2. Acquisition: they usually acquire small business entrepreneurship and scalable startup entrepreneurship to increase their geographic accessibility.
3. Sustainability: These entrepreneurships are more sustainable than other types of
businesses due to its large scale.
Advantages of Large Company Entrepreneurship
. Availability of Resources: The Large company enterprises usually start with a high
level of investment. The resources are easily available in this type of entrepreneurship.
It has been observed that most of the small businesses and Scalable start-ups fail due to
the non – availability of resources. But in the case of large-scale businesses, they raisethe funds from the big investors and make everything readily available before the
commencement of the business.
2. Brand name: In Large company entrepreneurship, the brand is usually a wellestablished name in the market which gives a great edge to the entrepreneurs. Starting
a business with an unknown name is not an easy task as it takes years to establish a
goodwill in the market. But this struggle is not involved in the large company
enterprises.
3. Better Team: As the funds are enough to run the business, this type of entrepreneurship
takes the experts from each and every area. A good team is built up which is competent
and capable of taking the business to new heights. A good team means a good result.
4. Innovation: Innovation acts as the blood for any kind of company. A firm cannot
survive for a long period of time if it cannot innovate. A Large company has the courage
to take the bold moves and work in a risky environment.
