INDIAN SCHOOL AL WADI AL KABIR

Class: XI Department: Commerce Date of submission:

Worksheet 1 Topic: Entrepreneurship concept & 05/05/2020

functions

1.Define entrepreneurship.
Ans: Entrepreneurship may be defined as a systematic innovation which consists of the
purposeful and organised search for changes, and a systematic analysis of the
opportunities that such change might offer for economic and social transformation.

2.Distinguish between entrepreneur and entrepreneurship.

Ans:
Entrepreneur Entrepreneurship
i) A person who bears the risks, unites i)entrepreneurship is the set of activities
various factors of production. performed by an entrepreneur.
ii) carries out creative innovations. ii) process of identifying opportunities in
iii) attempts to bring about change in terms the market place and marshalling the
of factor proportions, resources.
iii) It is the attempt to create value.

3 ENTREPRENEUR is a person who develops and owns his own enterprise is a

moderate risk taker and works under uncertainty for achieving the goal.
Fill in the above blanks.

4. An entrepreneur is a person who starts an enterprise. The process of creation is

called entrepreneurship . The entrepreneur is the actor and entrepreneurship is the
_act____.
The outcome of the actor and the act, is called the enterprise_.
Fill in the blanks.

5. It is the basic function of an entrepreneur. The entrepreneur has to introduce new

combinations of the means of production, new product, new market for a product and
new sources of raw material. They introduce something new in any branch of
economic activity. He/she foresees a potentially profitable opportunity and tries to
exploit it.

Identify the entrepreneurial function mentioned above.

Ans: Innovation:

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6. It refers to taking responsibility for a loss that may occur due to unforeseen
contingencies in the future.
Give the correct response
A.Risk taking. B. Organisation Building. C. Discovery of an idea D. Planning

7. “Assembling requirements” is one of the steps in this function.

(i)Identify the function.
(ii)Explain the other steps taken in this function.
Ans: (i) Promotional functions
(ii) a)Discovery of an idea: The entrepreneur visualizes that there are opportunities for a
particular type of business and it can be profitably run. The idea may be to exploit new areas of natural
resources, more profitable venture, or an existing line of business. He/she develops the idea with the
experts in the field, and if they are convinced, then he/she will go ahead with more exhaustive
analysis.
b)Detailed Investigation: The entrepreneur will estimate the total demand for the product. After
determining the prospective demand for goods, he/she will think of arranging finances for the venture,
along with the availability of power, labour, raw materials and machinery.

8.Match the following.

1.Motivation (a)It is the process which enables the entrepreneur to
get his/her company’s policies implemented and take
corrective action if performance is not according to
the predetermined
standards.
2.Controlling (b)It is the basic managerial function of an
entrepreneur. It helps in determining the course of
action to be followed to achieve various
entrepreneurial objectives.
3.Directing (c)It is the psychological process of creating an urge
among the subordinates to do certain things or behave
in the desired manner.
4.Planning (d)It is concerned with carrying out the desired plans.
It initiates organised and planned action, and ensures
effective performance by subordinates towards the
accomplishment of
group activities.
1- (c ) 2- (a) 3 – (d) 4- (b)

9. Explain any two advantages of being an Entrepreneur?

Ans: i. Rational salary: Entrepreneurs work on their own and earn the money they should be earning
for their efforts rather than being getting paid by working for someone else.
ii. Freedom: Entrepreneurs can work on any idea which they feel and it can eventually turn out to be
a successful venture.

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10. It refers to the exchange of ideas, feelings, emotions, knowledge and information
between two or more persons. It is the process by which an entrepreneur
imaginatively directs/guides and influences the work of others in choosing and
attaining specified goals by mediating between the individual and organization in
such a manner that both will get the maximum satisfaction.
(i)Identify the functions of entrepreneurs stated above.
(ii) Discuss any two commercial functions of the entrepreneur.
Ans: (i) Communication and Leadership.
(ii) (a) Production: It is the key function of an entrepreneur. The activities of production are
independent of the size of the undertaking. It is the creation of goods and services. It consists of
manufacturing, ancillary and advisory activities.
(b) Finance: It is the most important aspect in all enterprises. It remains a focus of all business
activities. The need for money is continuous. It starts with the setting up of an enterprise and remains
at all times. The development and expansion of an enterprise rather needs more commitment for
funds. It is the duty of the entrepreneur to look and analyse into the various sources of finance and
appropriately arrange for them as and when required.

11. “Entrepreneurs, in their drive and pursuit to create something new, at times,
results in causing major loss to the Nation’s natural resources. Shouldn’t they be
discouraged? Justify giving reasons for your answers.
Ans: No, entrepreneurs should not be discouraged. . Economic growth depends on the rate of
innovation in the economic field, which in turn, depends on the number and quality of entrepreneurs
in the society. The number of entrepreneurs emerging in all fields, but more needs to be done for
increased economic growth in our country.
The need for Entrepreneurship can be highlighted as follows:
i) Life-line of a nation: No country can progress without the development of entrepreneurship. Every
country is trying to promote its trade so that it is able to share the benefits of development. Therefore,
entrepreneurship is the yardstick to measure the level of development of a country.
ii) Provides innovation: Entrepreneurship provides new ideas, imagination and vision to the
enterprise. An entrepreneur is an innovator as he tries to find new technology, products and markets.
He increases the productivity of various resources.
iii) Change of growth /Inclusive growth: An enterprise operates in a changing environment. The
entrepreneur moulds the enterprise in such a changing environment. The latter moulds not only the
enterprise, but also alters the environment itself, to ensure the success of the enterprise.
iv) Increased profits: Profits can be increased in any enterprise, either by increasing the sales revenue
or reducing cost. To increase the sales revenue is beyond the control of an enterprise.
Entrepreneurship, by reducing costs, increases its profits and provides opportunities for future growth
and development.
v)Employment opportunities: Entrepreneurship and its activities provide the maximum employment
potential. Large numbers of persons are employed in entrepreneurial activities in the country.
vi) Social Benefits: It is not only beneficial to the business enterprise, but to the society at large. It
raises the standard of living by providing good quality products and services at the lowest possible
cost. It also makes the optimum use of scarce resources and promotes peace and prosperity in the
society.

12. Many entrepreneurs believe a set of myths about entrepreneurship. Explain the
myths associated with entrepreneurship.
Ans: The myths associated with entrepreneurship are discussed below:

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a)Starting a business is easy Actually it is not. Most people, who begin the process of starting a
company, fail to get one up and running. It takes few years to have positive cash flow after starting
the business. But small entrepreneurships are comparatively easier to start.
b) It takes a lot of money to finance a new business: The typical start-up only requires about
Rs.1,50,000. The successful entrepreneurs, who don’t believe the myth, design their businesses to
work with little cash. They rent instead of buying and they turn fixed costs into variable costs by
paying people commissions instead of salaries.
c) Start-ups can’t be financed with debt: Actually, debt is more common than equity. A lot of
entrepreneurs use debt rather than equity to fund their companies.
d) Banks don’t lend money to start-ups: This is another myth. Banks and various government schemes
have been implemented with the idea of providing finance to budding entrepreneurs.
e) Most entrepreneurs start businesses in attractive industries: It is not true, there are many
entrepreneurs who think differently and take up ventures with are unconventional and uncommon
with a high risk and they turn out to be successful.
f) The growth of a start-up depends more on an entrepreneur’s talent than on the business: This is not
true as the industry that an entrepreneur chooses to work has a huge effect on the risks that it will
grow.
g) Most enterprises are successful financially: This is also another myth. Entrepreneurship creates a
lot of wealth, but it is very unevenly distributed. A typical entrepreneur earns less money than he/she
otherwise would have earned, working for someone else.

13. Describe the process of entrepreneurship?

Ans: The process of entrepreneurship:
i) Self-Discovery: Entrepreneurs learn what they enjoy doing, also examine their strengths and
weaknesses. This stage also involves examining work experience and relating it to potential
opportunities.
ii) Identifying opportunities: Looking for needs, wants, problems, and challenges that are not yet
being met, or dealt effectively.
iii) Generating and evaluating ideas: Using creativity and past experience to devise new and
innovative ways to solve a problem, or meet a need, and then narrowing the field to one best idea.
iv) Planning: Researching and identifying resources needed to turn the idea into a viable venture.
Doing the research in the form of a written business plan preparing marketing strategies.
v) Raising Start-up capital: Using the business plan to attract investors, venture capitalists and
partners. This stage can involve producing prototypes or test-marketing services.
vi) Start-Up: Launching the venture, developing a customer base, and adjusting marketing and
operational plans as required.
vii) Growth: It involves developing and following strategic plans, adapting to new product/
market/branches.
viii) Harvest: It means selling the product and harvesting the rewards. For many entrepreneurs, this
also means moving on to new venture and new challenges.

14.State the disadvantages of entrepreneurship.

Ans: The disadvantages of entrepreneurship are as follows:
a) Salary: Starting an own business means one must be willing to give up the security of a regular pay
that would have been received in case of employment.
b) Benefits: There will undoubtedly be fewer benefits, especially when considering that the business
is just starting off.
c) Work schedule: The work schedule of an entrepreneur is never predictable; an emergency can come
up in a matter of a second and late hours may become the norm.
d) Administration: All the decisions of the business must be taken by the entrepreneur so the fear of
a wrong decision can have its own effect.

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e) Incompetent staff: Entrepreneurs may find themselves working with employees who are
incompetent and lack experience. This can affect the speed and quality of work.

15. Using the business plan to attract investors, venture capitalists and partners. This
stage can involve producing prototypes or test-marketing services.
(a)Identify the step in Entrepreneurship Process referred above.
(b)Discuss the steps that follows the step identified in (a).
Ans: (a) Raising Start-up capital.
(b) Start-Up: Launching the venture, developing a customer base, and adjusting marketing
and operational plans as required.
Growth: It involves developing and following strategic plans, adapting to new product/
market/branches.
Harvest: It means selling the product and harvesting the rewards. For many
entrepreneurs, this also means moving on to new venture and new challenges.

16. Differentiate between Entrepreneurial functions and Managerial functions of an

Entrepreneur?
Ans:
Entrepreneurial Functions Managerial Functions
The types are innovation, risk taking and It includes planning, organizing, staffing,
organization building. directing, leadership, motivation, coordination,
communication and controlling.

To perform these functions, entrepreneurs To perform these functions, entrepreneur should

should possess technical knowledge and possess managerial knowledge and experience.
experience in innovative field.

17. Shivi, a dropout from 10thstd is forced by her mother to start working as a domestic
help. Shivi agrees on the condition to do only „cooking‟ in 2-3 houses. One family
turns out to be Punjabi, other Gujrati and the third one is Rajasthani. She cooked their
kind of food for a year and to everyone’s surprise, she expressed her desire to open up
a small eating joint of her own. All alone, determined, she finally opens “Apna Bhoj”,
a small eating joint with her savings and it became a hot spot because of the fusion food
platter being offered. Do you think Shivi is an entrepreneur? Give reasons for your
answers.
Ans: Yes, Shivi is an entrepreneur, as she has the desire to open her own enterprise, for which
she arranged finance on her own, from her savings and she also took the risk and innovated
different types of food products.

18. Karsan Bhai Patel, the creator of Nirma Washing Powder, who was working as a
factory chemist in Gujarat Mineral Development Corporation, started making detergent
powder in his kitchen for poor rural women of Gujarat and selling his product by
visiting different villages. His efforts culminated in the whitish yellow detergent
powder named Nirma. The idea behind was need and the problem of the society that
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could not afford other brands of detergent powders because of their high cost. Today,
Nirma is one of the world’s biggest detergent powder manufacturer. The brand sells
over 8 lakh tonnes annually. It holds 40% of the Indian market, with a turnover of more
than Rs. 2500/- crores. This is creative effort and risk taking ability of a person who
turned out to be an entrepreneur. The strength of being capable is the plus point in an
entrepreneur.
Explain the promotional functions of the entrepreneur mentioned above.

Ans: The promotional functions are as follows:

i)Discovery of an idea: The entrepreneur visualizes that there are opportunities for a particular type
of business and it can be profitably run. The idea may be to exploit new areas of natural resources,
more profitable venture, or an existing line of business. He/she develops the idea with the experts in
the field, and if they are convinced, then he/she will go ahead with more exhaustive analysis.
ii)Detailed Investigation: The entrepreneur will estimate the total demand for the product. After
determining the prospective demand for goods, he/she will think of arranging finances for the venture,
along with the availability of power, labour, raw materials and machinery.
iii)Assembling the Requirements: After making sure that the proposition is practical and profitable,
the entrepreneur proceeds to assemble the requirements. He persuades some more people to join him
on board. He may also be required to acquire some patent rights if he has invented something new.
The entrepreneur selects the factory site, decides about plant and machinery and contacts suppliers of
raw materials.

19. Mansukhbhai Prajapati remoulded his family‘s struggling pottery business to

produce the Mitticool range of ingenious earthenware, including a fridge that works
without electricity. That headline proved to be a game-changer for Wakaner- based
potter, Mansukhbhai Prajapati, who literally picked up the pieces to begin afresh on a
remarkably innovative idea — the Mitticool refrigerator, which is made of mud/clay
and works without electricity. Originally from Morbi village in Rajkot, South Gujarat,
Prajapati, a tenth standard dropout, began working at a tea-stall after his father
discouraged him from entering the family‘s pottery business as the income was
negligible. Later, he became a supervisor at a roof-tile manufacturing company and
eventually, in 1989, returned to his passion for pottery by producing tavdi or tawa
(frying pan) from clay.

Identify the qualities of entrepreneur mentioned in the above case study.

Ans: Develops and owns his own enterprise.
Is innovative.
Is prepared to withstand the hard life.
Is prepared to withstand the hard life.
Persistently tries to do something better.

20. “Innovation is the hallmark of Entrepreneurship”.

Why is “innovation” referred as the basic function of an entrepreneur?
Ans: It means act of doing something new. As an innovator an entrepreneur can:
Introduce new combinations of the means of production.

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 Introduce new products.
Find new market for the product.
Identify new source of raw material.

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