Q1.
Solve any 5
a) Define entrepreneur, entrepreneurship and enterprise.
b) Define innovative entrepreneur.
c) Expand N-Ach./N-pow./N-Aff./N-Aut.
d) Define business model.
e) What is social sector?
f) What is mobility of entrepreneurs.
g) Define Networking in business.
h) List two ways an entrepreneur can prevent business failure
a) Define entrepreneur, entrepreneurship and enterprise.
• Entrepreneur: an individual who identifies a business opportunity and
takes on the risk and responsibility of starting and running a business
venture.
• Entrepreneurship: the process of creating or starting a new business
venture or developing an existing one, often involving innovation and
risk-taking.
• Enterprise: a business or organization established to provide goods or
services to customers, typically with the goal of generating a profit.
b) Define innovative entrepreneur
• Innovative entrepreneur: An entrepreneur who introduces new or
improved products, services, or processes to the market, often through
creative thinking and problem-solving.
c) Expand N-Ach./N-pow./N-Aff./N-Aut.
• N-Ach: Need for Achievement, a psychological concept referring to an
individual's desire for success, accomplishment, and the attainment of
challenging goals.
• N-Pow: Need for Power, a psychological concept referring to an
individual's desire to influence, control, or have an impact on others.
• N-Aff: Need for Affiliation, a psychological concept referring to an
individual's desire to establish and maintain positive relationships with
others.
• N-Aut: Need for Autonomy, a psychological concept referring to an
individual's desire for independence, freedom, and control over their own
life and work.
d) Define business model.
Business model: a plan or strategy for how a company will generate revenue
and make a profit. It typically outlines the company's target customers, value
proposition, revenue streams, cost structure, and key resources and partnerships.
e) What is social sector?
Social sector: a term used to describe organizations and businesses that aim to
address social or environmental issues, often using a nonprofit or social
enterprise model. Examples include charities, NGOs, and social enterprises.
f) What is mobility of entrepreneurs.
Mobility of entrepreneurs: the ability of entrepreneurs to move easily between
different locations, often in search of new business opportunities, resources, or
markets. This can refer to physical mobility or the ability to connect and
network with others in different locations using technology.
g) Define Networking in business
Networking in business: the practice of building and maintaining relationships
with other individuals and organizations in order to gain information, resources,
and support for business purposes. This can involve attending events, joining
groups, or using social media and other online platforms to connect with others
in the industry.
h) List two ways an entrepreneur can prevent business failure
Two ways an entrepreneur can prevent business failure:
1. Conduct market research and test the viability of the business idea before
investing significant resources or launching the business.
2. Maintain financial discipline and regularly monitor and manage cash flow
to ensure the business has adequate funds to operate and grow.
Q2) Solve any two.
a) Examine the role of SISI in Entrepreneurship Development.
SISI, or Small Industries Service Institute, is a government organization in India
that provides support and assistance to entrepreneurs and small business owners
in developing and growing their businesses. SISI plays an important role in
entrepreneurship development by offering a range of services and resources to
entrepreneurs, including:
1. Entrepreneurship training: SISI provides training programs and
workshops to help aspiring entrepreneurs develop the skills and
knowledge needed to start and manage a successful business.
2. Market research and analysis: SISI conducts market research and
provides entrepreneurs with information about the demand for their
products or services, as well as insights into market trends and
competition.
3. Financial assistance: SISI offers guidance on funding options and helps
entrepreneurs access loans and other financial resources to support their
businesses.
4. Technical support: SISI provides technical support and assistance to
entrepreneurs in areas such as product development, quality control, and
technology adoption.
5. Networking and collaboration: SISI facilitates networking and
collaboration among entrepreneurs, providing opportunities for them to
connect with potential partners, customers, and suppliers.
Overall, SISI plays an important role in creating a supportive environment for
entrepreneurship development in India, particularly for small businesses that
may otherwise lack the resources and support they need to succeed. By
providing a range of services and resources to entrepreneurs, SISI helps to
promote innovation, create jobs, and drive economic growth.
b) Compare and contrast between network and alliances in business.
Both networks and alliances are important ways for businesses to collaborate
and work together towards shared goals. However, there are some key
differences between these two concepts.
Networks refer to a group of individuals, businesses, or organizations that are
connected through a variety of relationships, such as personal connections,
shared interests, or professional affiliations. Networks can be informal, such as
social networks or industry associations, or formal, such as business incubators
or accelerator programs. The goal of a network is typically to share knowledge,
resources, and support to help members achieve their individual goals.
Alliances, on the other hand, are formal partnerships between two or more
businesses that come together to achieve a specific objective, such as a joint
marketing campaign or a collaborative research and development project.
Alliances are typically more structured than networks, with clear guidelines and
expectations for each partner's roles and responsibilities. The goal of an alliance
is usually to create a competitive advantage by leveraging the strengths and
resources of each partner.
In terms of their benefits and drawbacks, networks can offer a more flexible and
informal approach to collaboration, allowing businesses to tap into a wider
range of resources and expertise. However, networks may lack the structure and
focus of an alliance, and may not be as effective at achieving specific goals.
Alliances, on the other hand, offer a more structured and focused approach to
collaboration, but may be more limited in terms of the resources and expertise
available.
Overall, the choice between networks and alliances will depend on the specific
goals and needs of the businesses involved. Both approaches can be effective in
fostering collaboration and driving business success, and businesses may choose
to use both strategies depending on the situation.
c) Write in your own words - Entrepreneurial Competencies.
Entrepreneurial competencies refer to the skills, traits, and behaviors that are
required for individuals to successfully identify and exploit business
opportunities, create and grow new ventures, and navigate the challenges of
entrepreneurship. These competencies can be categorized into several different
areas, including:
1. Opportunity recognition: This refers to the ability to identify and evaluate
business opportunities, and to determine which opportunities are worth
pursuing.
2. Innovation: This involves the ability to create and develop new products,
services, or processes that offer unique value to customers and
differentiate the business from competitors.
3. Risk management: This refers to the ability to assess and manage risk,
and to make informed decisions about when to take risks and when to
avoid them.
4. Resource management: This involves the ability to effectively manage
and allocate resources, such as time, money, and personnel, to achieve
business objectives.
5. Networking and collaboration: This refers to the ability to build and
maintain relationships with other individuals and organizations, and to
collaborate effectively to achieve shared goals.
6. Leadership and management: This involves the ability to lead and
manage teams, to communicate effectively, and to inspire and motivate
others.
7. Resilience and adaptability: This refers to the ability to persevere in the
face of challenges and setbacks, to learn from failures, and to adapt to
changing circumstances.
Overall, entrepreneurial competencies are essential for individuals who want to
start and grow successful businesses. By developing and strengthening these
competencies, entrepreneurs can improve their chances of success and
overcome the many challenges and obstacles that are inherent in the
entrepreneurial journey.
Q3) Solve any one.
a) The Social Entrepreneurs are governments’ best friend-Evaluate the
statement.
The statement "The Social Entrepreneurs are governments’ best friend" can be
evaluated from different perspectives.
On one hand, social entrepreneurs can be seen as a valuable asset for
governments in addressing social and environmental issues. Social
entrepreneurs often operate in areas where governments have not been able to
provide adequate solutions or where public services are lacking. Social
entrepreneurs can bring innovative and effective solutions to social problems,
and they can also work with communities and stakeholders to create long-term
sustainable change.
In addition, social entrepreneurs can also create jobs, promote economic
growth, and contribute to the development of local economies. This can be
particularly valuable for governments that are looking to promote economic
development in specific regions or industries.
On the other hand, social entrepreneurs may not always align with the interests
or priorities of governments. Some social entrepreneurs may be critical of
government policies and may advocate for alternative approaches to addressing
social and environmental problems. Additionally, social entrepreneurs may not
always have the resources or capacity to scale their solutions to a level that can
have a significant impact.
Overall, while social entrepreneurs can be a valuable partner for governments,
they are not always a panacea for social and environmental challenges. It is
important for governments to recognize the potential benefits of working with
social entrepreneurs while also being mindful of their limitations and potential
challenges.
b) Illustrate the Objectives of The National Institute for Entrepreneurship
and small business Development (NIESBUD) for Entrepreneurship
Development
The National Institute for Entrepreneurship and Small Business Development
(NIESBUD) is an apex organization established by the Ministry of Skill
Development and Entrepreneurship, Government of India, to promote
entrepreneurship and small business development in the country. The objectives
of NIESBUD for entrepreneurship development are as follows:
1. To provide training and education: NIESBUD aims to provide training
and education programs to aspiring entrepreneurs and small business
owners. These programs are designed to impart knowledge and skills
related to various aspects of entrepreneurship, such as business planning,
marketing, financial management, and legal compliance.
2. To promote entrepreneurship culture: NIESBUD seeks to promote an
entrepreneurship culture in the country by encouraging and supporting
entrepreneurial activities. The institute organizes various events,
workshops, and seminars to promote entrepreneurship and create
awareness about the benefits of starting a small business.
3. To provide consultancy services: NIESBUD offers consultancy services
to entrepreneurs and small business owners in areas such as project
identification, technology selection, market research, and export
promotion. These services are aimed at helping entrepreneurs make
informed decisions and achieve their business goals.
4. To provide incubation support: NIESBUD provides incubation support to
start-ups and small businesses by offering facilities such as office space,
training, mentoring, and networking opportunities. This support is aimed
at helping entrepreneurs establish and grow their businesses in a
conducive environment.
5. To promote international cooperation: NIESBUD aims to promote
international cooperation in the field of entrepreneurship and small
business development. The institute collaborates with international
organizations, governments, and academic institutions to exchange
knowledge, expertise, and best practices related to entrepreneurship.
Overall, the objectives of NIESBUD are to promote entrepreneurship, facilitate
the development of small businesses, and create a conducive ecosystem for
entrepreneurial growth in the country.
Q4) Solve any one.
a) Discuss the Theory of Profit by Knight, Theory of Social change by
Everett Hagen. Cite examples supporting the theories.
Theory of Profit by Knight:
The Theory of Profit by Frank H. Knight is based on the concept of risk-taking
by entrepreneurs. Knight argues that profits are the reward for taking on
uncertainty and risk in business ventures. According to Knight, entrepreneurs
invest their resources in uncertain projects, which may or may not yield profits.
Therefore, the profit is the compensation that entrepreneurs receive for bearing
the risk of uncertainty in their business ventures. Knight's theory also
emphasizes the importance of information in decision-making, as entrepreneurs
must have access to information that helps them make informed decisions in
uncertain situations.
Example: A classic example of the theory of profit is the success story of Steve
Jobs and Apple. Steve Jobs took a risk by investing in a new and innovative
product line, the personal computer, which was not yet widely accepted at that
time. However, he was able to create a successful business venture by taking on
the uncertainty and risk associated with the technology. The profits he received
were the compensation for taking on the uncertainty and risk of a new product
line in a nascent market.
Theory of Social Change by Everett Hagen:
The Theory of Social Change by Everett Hagen is based on the concept of
cultural evolution. Hagen argues that social change occurs as a result of cultural
adaptation to new circumstances. According to this theory, cultures are not
static but constantly evolving, and they adapt to new environments or situations.
Hagen identified four stages of cultural evolution: survival, growth, expansion,
and decay. In each stage, cultures must adapt to new circumstances and
overcome challenges in order to survive.
Example: An example of the Theory of Social Change is the evolution of the
music industry. The introduction of new technologies such as the internet and
digital music players has disrupted the traditional music industry. However, the
industry has adapted to these changes by shifting its focus to digital sales,
streaming services, and live performances. This adaptation has enabled the
industry to survive and even thrive in the face of new challenges, demonstrating
the importance of cultural adaptation in social change.
b) Evaluate the opportunities available in case of Export Oriented Units (EOU)
with reference to support by Government agencies
Export Oriented Units (EOUs) are business entities that are set up in India with
the sole objective of producing goods and services for export. These units enjoy
several benefits and opportunities, including support from Government
agencies. Below are some of the opportunities available in case of EOUs with
reference to support by Government agencies:
1. Financial support: EOUs are eligible for several financial incentives such
as capital subsidies, interest rate subsidies, and reimbursement of central
and state taxes. These incentives are provided to encourage the growth of
exports and to make Indian products competitive in the global market.
The Government of India also provides financial support to EOUs for
developing and upgrading infrastructure, which can include roads, power,
water supply, and telecommunication facilities.
2. Simplified procedures: EOUs are allowed to import capital goods and raw
materials duty-free. They are also exempted from paying sales tax, central
excise duty, and service tax on goods and services used for export
production. The Government has also simplified the procedures for
export and import clearance for EOUs, which makes it easier for them to
conduct business.
3. Export promotion: The Government of India provides several export
promotion schemes to EOUs, such as the Export Promotion Capital
Goods (EPCG) Scheme and the Duty-Free Import Authorization (DFIA)
Scheme. These schemes provide benefits such as the exemption of
customs duties and the provision of export incentives. The Government
also provides export credit insurance, which protects EOUs from losses
arising from non-payment by foreign buyers.
4. Technical support: EOUs can access technical support from Government
agencies such as the National Institute of Design (NID), the National
Institute of Fashion Technology (NIFT), and the Indian Institute of
Packaging (IIP). These agencies provide technical assistance in areas
such as product design, packaging, and quality control.
Overall, the opportunities available in case of EOUs with reference to support
by Government agencies are significant. The Government of India has
implemented several policies and schemes to encourage the growth of exports
and to make Indian products competitive in the global market. EOUs can take
advantage of these policies and schemes to enhance their competitiveness and
expand their export markets.
Q5) Solve any one.
a) Amit runs his own enterprise in an area on the outskirts of Kota, Rajasthan.
He manages a collective of people with disabilities who make Rajasthani
puppets in a traditional style, mainly selling to tourists through local shops,
and pays them a basic salary as well as a profit share. The puppets are all
made to Amit’s own designs, and are quite different to the standard items
in most tourist stores. His quirky designs and their popularity with shoppers
have come to the attention of Manish, who runs a relatively large factory
producing puppets and other tourist-friendly wares. Manish approaches
Amit to suggest that he buy his enterprise, including his designs, and that
Amit and his employees all come and work at Manish’s factory. He is
offering a lot of money, and Amit doesn’t know whether he wants to
maintain his independence or go for the security offered by a lump cash
sum and guaranteed employment. He uses a SWOT analysis to take a
snapshot of his current situation and help him consider the decision:
Read through the case study and develop a SWOT Analysis for
Amit’s business decision.
SWOT Analysis for Amit's business decision:
Strengths:
• Unique product designs and high popularity among tourists
• Strong collective of people with disabilities who are loyal to Amit and his
enterprise
• Established supply chain through local shops in the area
• Strong personal connection with employees and community
Weaknesses:
• Limited financial resources and access to capital
• Dependence on local shops for sales
• Lack of resources and infrastructure for scaling production and expanding
the enterprise
Opportunities:
• Potential for increased sales and revenue through partnership with
Manish's factory
• Access to larger market through Manish's existing distribution network
• Possibility for expanded production and resources with the support of
Manish's factory
Threats:
• Risk of losing independence and creative control over product designs
• Possibility of conflicts with Manish over business decisions and
management
• Uncertainty over job security and potential changes in working conditions
for employees
Overall, Amit's SWOT analysis highlights the potential benefits and drawbacks
of partnering with Manish's factory. While the partnership may offer
opportunities for increased revenue and access to larger markets, it also poses a
threat to Amit's independence and creative control over the enterprise.
Additionally, the potential impact on employees and working conditions must
also be carefully considered. Ultimately, Amit will need to weigh the benefits
and risks of the partnership and make a decision based on his personal priorities
and goals for the enterprise.
b) Examine the role of EDII in Entrepreneurship Development.
The Entrepreneurship Development Institute of India (EDII) is a non-profit
organization that was established in 1983 with the aim of promoting and
supporting entrepreneurship development in India. Over the years, EDII has
played a crucial role in fostering entrepreneurship and developing the
entrepreneurial ecosystem in India. Below are some of the key roles of EDII in
entrepreneurship development:
1. Training and Capacity Building: EDII offers a wide range of training and
capacity building programs to aspiring entrepreneurs, including short-
term and long-term courses, workshops, and seminars. These programs
cover various aspects of entrepreneurship, such as business planning,
finance management, marketing, and innovation. EDII also provides
training to trainers who can further spread the knowledge and skills of
entrepreneurship in their respective regions.
2. Research and Policy Advocacy: EDII conducts research and analysis on
various aspects of entrepreneurship, such as the challenges faced by
entrepreneurs, the impact of entrepreneurship on the economy, and the
policy environment for entrepreneurship development. Based on its
research, EDII advocates for policies and measures that can support the
growth and sustainability of the entrepreneurial ecosystem.
3. Incubation and Mentorship: EDII provides incubation support to startups
and aspiring entrepreneurs, including access to infrastructure, funding,
and mentorship. The incubation support provided by EDII helps
entrepreneurs to validate their business ideas, build their network, and
gain access to markets and resources.
4. Networking and Collaboration: EDII facilitates networking and
collaboration among entrepreneurs, investors, policymakers, and other
stakeholders in the entrepreneurial ecosystem. This helps entrepreneurs to
build their network, gain access to funding and resources, and learn from
the experiences of other entrepreneurs.
5. International Partnerships and Exchanges: EDII collaborates with
international organizations and institutions to promote entrepreneurship
development and knowledge sharing. Through its partnerships and
exchanges, EDII provides opportunities for entrepreneurs to gain
exposure to international markets, technologies, and best practices.
Overall, EDII has played a significant role in promoting entrepreneurship
development in India through its various programs and initiatives. Its efforts
have helped to create a conducive environment for entrepreneurship and have
contributed to the growth and sustainability of the entrepreneurial ecosystem in
India.
