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CU-BBA-SEM-V-Entrepreneurship Development-Second Draft

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Description: CU-BBA-SEM-V-Entrepreneurship Development-Second Draft


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First Published in 2021 All rights reserved. No Part of this book may be reproduced or transmitted, in any form or by any means, without permission in writing from Chandigarh University. Any person who does any unauthorized act in relation to this book may be liable to criminal prosecution and civil claims for damages. This book is meant for educational and learning purpose. The authors of the book has/have taken all reasonable care to ensure that the contents of the book do not violate any existing copyright or other intellectual property rights of any person in any manner whatsoever. In the event, Authors has/ have been unable to track any source and if any copyright has been inadvertently infringed, please notify the publisher in writing for corrective action. 2 CU IDOL SELF LEARNING MATERIAL (SLM)

CONTENT Unit – 1: Concept Of Entrepreneurship .......................................................................................... 4 Unit – 2: Types Of Entrepreneurs ................................................................................................. 16 Unit – 3: Characteristics Of Entrepreneurial Leadership.............................................................. 27 Unit – 4: Environmental Scanning................................................................................................ 39 Unit – 5: Process Of Generating Business Ideas .......................................................................... 52 Unit – 6: Techno-Economic Feasibility Studies ........................................................................... 66 Unit – 7: Ancillary Industry Development ................................................................................. 100 Unit – 8: Entrepreneurial Opportunities ..................................................................................... 112 Unit – 9: Entrepreneurship Development ................................................................................... 139 Unit – 10: Government Policy .................................................................................................... 170 Unit – 11: Schemes ..................................................................................................................... 186 Unit – 12: Marketing Support ..................................................................................................... 200 Unit – 13: Sources Of Finance.................................................................................................... 214 Unit – 14: Intrapreneur................................................................................................................ 247 3 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT – 1: CONCEPT OF ENTREPRENEURSHIP STRUCTURE 1.0 Learning Objectives 1.1 Introduction 1.2 Meaning 1.3EmergenceofEntrepreneurial class 1.4 Summary 1.5 Keywords 1.6 Learning Activity 1.7 Unit End Questions 1.8 References 1.0 LEARNING OBJECTIVES After studying this unit, you will be able to  Explain the origin of entrepreneurship.  Explain the concept of entrepreneurship.  Define entrepreneurship and its relevant segments.  Interpret entrepreneurial classes. 1.1 INTRODUCTION Entrepreneurship is the carrying out of a fresh organization or restructuring an organization, which has already been into existence. It is often a complicated enterprise so consequently numerous enterprises find loads of difficulties in survival. This is an entirely different field involving unique personality traits on the part of the entrepreneur, such as good communication skills, patience, foresightedness, and many more traits, which heads his personality to a brighter side. Entrepreneurism has various forms such as sole trading, partnership, etc. India’s economic development strategy immediately after Independence was based primarily on the Mahalanobis model, which gave preference to the mining, agriculture, investment goods sector, with secondary importance accorded to the services and household goods sector. Earlier entrepreneurs had to obtain a location permit prior to the start of their company. Bribery and Corruption followed soon after.A slow pace of development was reflected in the late 1950s and early 1960s, in 1980 India began to liberalize imports and 4 CU IDOL SELF LEARNING MATERIAL (SLM)

encouraged small and medium scale entrepreneurs. Further, the economic reforms were introduced in 1991, led to the economic focus changing from an agro based economy to an industrialized economy. Indian entrepreneurs started focusing on expanding their markets and acquiring more customers. Now India is taking part in global entrepreneurship as well. Given recent economic reforms, India'sGDP has also arisen from 21 % to 33 %, and India's foreign exchange reserves have reached over $200 billion. The emergence of entrepreneurism in India’s future economic development is a pointer to INDIA’s growth story. Indian government has been supporting establishment of successful start-ups with its well- thought of policies, over the last 5 years. Its main policy pillars are funding support and incentives, industry-academic partnership and simplification & handholding. Indian tech starts up industry is a big target for visionaries like Google, who has recently launched an India-focused mentorship and boot camp program for start-ups building both business-to-consumer (B2C) and business-to-business (B2B) tech products. The mentorship initiative named ‘Solve for India’ was initially launched in pilot mode in India last year along with participation from Google Developers’ Launchpad Accelerator team.Launchpad Accelerator is a global project that helps start-ups build and scale their products through mentorship from Google network of investors, mentors, industry professionals and representatives from Google Inc. Around 10 Indian tech start-ups are a part of this initiative, which are working on products around Indic languages, healthcare, fintech, agritech and online content among others. Some of them are Nebulaa, SlangLabs, PregBuddy, LegalDesk, PaySack, Vokal, FarMart, Meesho, Pratilipi and M-Indicator. Liberalisation of the economy sent forth the first generation of entrepreneurs who established such brand names as Infosys, Bharti, Kotak, ICICI, among many others. These ventures opened a whole new scale of job opportunities forIndia’s educated young. Realising the potential of businesses in creating jobs, successive governments have lent policy support to entrepreneurs as well. New policies towards encouraging micro or small businesses such as making loans easier for them has changed the face of entrepreneurship in India. 1.2 MEANING OF ENTREPRENEURSHIP Entrepreneurship is the act of creating a business or businesses while building and scaling it to generate a profit.But as a basic entrepreneurship definition, that one is a bit limiting. The more modern entrepreneurship definition is also about transforming the world by solving big problems. Like bringing about social change or creating an innovative product that challenges the status quo of how we live our lives on a daily basis. 5 CU IDOL SELF LEARNING MATERIAL (SLM)

What the entrepreneurship definition doesn’t tell you is that entrepreneurship is what people do to take their career and dreams into their hands and lead it in the direction they want. It’s about building a life on your own terms. No bosses. No restricting schedules. And no one holding you back. Entrepreneurs are able to take the first step into making the world a better place for everyone in it, including themselves. An entrepreneur is a person who sets up a business with the aim to make a profit.This entrepreneur definition can be a bit vague, but for good reason. An entrepreneur can be a person who sets up their first online store on the side or a freelancer just starting out. The reason why they’re considered entrepreneurs, though some disagree, is because where you start out isn’t necessarily where you’ll end up. An entrepreneur is someone who starts a side hustle that can eventually create a full-time, sustainable business with employees. Same with the freelancer. If your entrepreneurial mind-set is focused on creating a profitable business, you fit the entrepreneur definition. But the entrepreneur meaning involves much more than being a business or job creator. Entrepreneurs are some of the world’s most powerful transformers. From Elon Musk sending people to Mars to Bill Gates and Steve Jobs making computers part of every household, entrepreneurs imagine the world differently. Entrepreneur Definition Any person running huge production projects without any kind of threat, but with the aid of economic funds provided by the government or private players was known as an entrepreneur. Hirsch, Peter and Shepherd revealed that first entrepreneur definition took Marco Polo as an example of an upcoming entrepreneur who made the greatest attempt of establishing the trade routes. According to Merriam-Webster's online dictionary, \"An entrepreneur is one who organizes, manages, and assumes the risk of a business or an enterprise\". An entrepreneur as an organizer who controls, systematize, purchases raw materials, arranges infrastructure, throw in his own inventiveness, expertise, plans and administers the venture. This is in fact the essence of Entrepreneurism. What is the Meaning of Entrepreneurship? The meaning of entrepreneurship involves an entrepreneur who takes action to make a change in the world. Whether start up entrepreneurs solve a problem that many struggle with each day, bring people together in a way no one has before, or build something revolutionary that advances society, they all have one thing in common: action. It’s not some idea that’s stuck in your head. Entrepreneurs take the idea and execute it. Entrepreneurship is about execution of ideas. The Emergence of Entrepreneurial Class in India 6 CU IDOL SELF LEARNING MATERIAL (SLM)

Ancient India was known across the world for its affluence and wealth. Traders from all over the world travelled to India to take part in this affluence. Be it the Mughals, the Portuguese, the Turks or the British – all of them ventured into Indian boundaries for various financial reasons. While over a long period of time, the entrepreneurial drive among Indians was notably absent, modern India has risen up to the task again. Even those who have little or no entrepreneurial experience are choosing to take part in an entrepreneurship management course to gain theoretical knowledge as well as practical experience before starting their entrepreneurial journey. It is notable how Indian entrepreneurship is seeing a rise these days. The country stands third in the list of countries with the fastest-growing list of start-ups. The first two countries are the USA and the UK. The digitization of India has led to an ever-increasing interest in the online market. Both urban and rural India are seeing a boom in the way internet-based apps and products are interacting with the people. Salient Features and Characteristics  Initiative: An entrepreneur takes actions that go beyond job requirements or the demand of the situation.  Opportunity seeking: An entrepreneur is quick to see and seize opportunities. He/she does things before he/she is asked to work by people or forced by situation.  Persistence: An entrepreneur is not discouraged by difficulties and problems that come up in the business or his/her personal life. Once she sets a goal she is committed to the goal and will become completely absorbed in it.  Information seeking: An entrepreneur undertakes personal research on how to satisfy customers and solve problems. He/she knows that different people have different capabilities that can be of help to them. He/she seeks relevant information from his/her clients, suppliers, competitors and others. He/she always wants to learn things which will help the business to grow.  Demand for quality and efficiency: An entrepreneur is always competing with others to do things better, faster, and at less cost he/she strives to achieve excellence.  Risk taking: Are you afraid of uncertainties? Then you cannot be an entrepreneur. Entrepreneurs are not high-risk takers. They are also not gamblers; they calculate their risks before taking action. They place themselves in situations involving moderate risk so they are moderate risk takers.  Goal setting: An entrepreneur sets meaningful and challenging goals for him/herself. An entrepreneur does not just dream. Him/she thinks and plans what he/she does. He/she is certain or has hope about the future. 7 CU IDOL SELF LEARNING MATERIAL (SLM)

 Commitment to work: An entrepreneur will work long hours after into the night just to be able to keep his/her promise to his/her client. He/she does the work together with his/her workers to get a job done. He/she knows how to make people happy to work for him/her due his/her dynamic leadership.  Systematic planning and monitoring: An entrepreneur plan for whatever he/she expects in the business. He/she does not leave things to luck. He/she plans by breaking large tasks down into small once and puts time limits against them. Since and entrepreneur knows what to expect at any time he/ she is able to change plans and strategies to achieve what he/she aims at.  Persuasion and networking: An entrepreneur acts to develop and maintain business contacts by establishing good working relationship. Uses deliberate strategies to influence others.  Independence and self-confidence: Most entrepreneurs start business because they like to be their own boss. They are responsible for their own decisions. 1.3 EMERGENCE OF SOCIAL ENTREPRENEURSHIP IN INDIA Social Entrepreneurship as the concept was coined long ago but has been in the corporate parlance in the recent past only. With the empowerment and awareness of the citizens of the developing world, a new revolution has started, particularly among the youth of the world. This revolution is the growth of Social Entrepreneurship – the form of entrepreneurship where profits are not the end result, but just the means to achieve the end result of social upliftment and further empowerment. Factors Leading to Increase in Entrepreneurship Encouraging Schemes by the GovernmentAuthorities Government of India is also encouraging the interest in entrepreneurship. It has launched a ‘start-up India’ campaign that provides support to entrepreneurial initiatives. Schemes have been floated to promote world-class innovation hubs and self-employment opportunities for the youngsters. The focus is especially high in technology-driven areas. The government of India realises the potential that entrepreneurship holds in giving a boost to the economy and uplifting the financial status of the people of the country. Such faith in entrepreneurship from the highest body in India leads to the development of interest in this field among the youth of the country. The Rise of Technology Technology has led to India becoming a software power. It has the second-highest number of internet users in the world. In addition to this, the uncertainty regarding jobs is fuelling people’s interest in having their own business. Industries are in constant need for innovation 8 CU IDOL SELF LEARNING MATERIAL (SLM)

to move forward and start-ups are coming up in fields like artificial intelligence and machine learning to help businesses solve their inherent issues or to bring in more efficiency. Female Entrepreneurs The entrepreneurial wave is also being driven by women entrepreneurs who are carving a niche for themselves. Start-ups like Zivame, Kaaryah, YourStory and POPxo have become successful ventures. Led by women founders, they are answering the market needs in their respective segments. Challenges for Indian Entrepreneurs Raising Funds for the Business The challenge for any start-up lies in raising funds for the business. To do so, they need to have a dependable business plan and a strategy on how they want to enter the market. Start- ups get funds from venture capitalists once they have convinced them about the venture’s potential for success. Knowledge on How to Run a Business As simple as it may seem, any venture needs to have a good plan, to begin with. Various business schools have started entrepreneurship courses to answer the requirements of interested students who seek to become an entrepreneur. These courses help the students get their expectations right and prepare themselves for a career in entrepreneurship. Keeping Up with Technology This point is important for start-ups in the technology sector. It is important for them to keep track of the latest technology and stay ahead of the curve. These days, technological innovations are happening every day leading to technology getting obsolete quickly. They need to keep on improving their products and give new and innovative products to their customers. Innovations need to be useful for customers. They need to have good research backing their product launches. If the product does not answer any need gap in the market, then it will not be successful in the market even if there is cutting edge technology behind it. Quality of Human Resources Any business’ success is dependent on the people who work for it. It is critical to have the right mix of people. These people should be trained for their job profiles. For example, a marketing manager should understand the industry and its customers and accordingly plan marketing campaigns. They should also have practical experience in performing their jobs properly. Additionally, they should have the right attitude and keen interest in doing their work to the best of their abilities. Entrepreneurship thrives in a conducive environment that facilitates the growth of a business. It is crucial for a booming economy to have entrepreneurs since they do not seek jobs but are 9 CU IDOL SELF LEARNING MATERIAL (SLM)

the job creators for the rest of the people. With the right support, India’s entrepreneurship story can lead to its economic growth as well as the prosperity of its people. Many Indians are now jumping onto the start-up bandwagon and that is fuelling economic growth as well as improving employment within the country. With such a thriving community and more and more aspiring entrepreneurs coming in, there is a need also to learn from the existing ecosystem about how to succeed in this space. One of the big ways to do it is by undergoing entrepreneurship certificate programs which will allow you to gain the knowledge that is critical for success in this area. Meanwhile here are some important tips from the entrepreneurship community in India.The idea should meet an existing need. Many ideas arise and while several are great, the big question to ask is if it is filling an existing gap or need for individuals who form the target customers. Many entrepreneurs assume that all interesting or good ideas are necessarily implementable as well as viable as business propositions. This is not the case. Keep your Eyes on the Goals At times it becomes easy to lose focus of what you want to achieve. The day to day challenges of running a new business with small teams and limited time frames are high. Even so, remembering the goals you defined and are working towards is important because that will help you re-align if you ever move off-track. Making Money is Important You might have started the venture as a passion or an idea that needed to take a bigger shape. But you need to make money to keep your venture sustainable and afloat. Even though it takes time, not losing your commitment to making it financially viable or profitable is what it takes for the venture to grow. Keep a Business Plan that is Agile Sometimes we are so enamoured by our own business plan that we fail to revise it based on the changing needs of the venture itself. So remember that a business plan is crucial and gives you the roadmap. But when the road might need to change, so does the roadmap and hence using business plans to drive your strategy is a good idea. But keeping them flexible to ensure that your strategy is also feeding back into the plan and changing it if needed, is as important. People are Crucial Whether you decide to hire a small or a large set of employees, talent is critical. At all levels of the organization, you need to have the right set of people. These are some big tips that can serve as guidelines for any new entrepreneur as he or she embarks on this exciting journey. 10 CU IDOL SELF LEARNING MATERIAL (SLM)

1.4 SUMMARY  Entrepreneurship refers to the concept of developing and managing a business venture in order to gain profit by taking several risks in the corporate world. Simply put, entrepreneurship is the willingness to start a new business.  Entrepreneur is an ‘undertaker’ in the literal sense of the word. Its usage in French language can be traced much before the emergence of activities generally associated with entrepreneurs today. Entrepreneurship is neither a science nor an art. It is a practice. It has a knowledge base. Knowledge in entrepreneurship is a means to an end.  Entrepreneurship is important, as it has the ability to improve standards of living and create wealth, not only for the entrepreneurs but also for related businesses. Entrepreneurs also help drive change with innovation, where new and improved products enable new markets to be developed.  An entrepreneur is a person who is devoted to search something new and exploit the novel notions and visions into gainful opportunities by bearing the risk involved in the process. The entrepreneur conceives the idea of an enterprise, lives with it, and finally establishes the enterprise. Entrepreneurship refers to the process of activities undertaken by an entrepreneur.  While there is no silver bullet guaranteeing the success of any business enterprise, there are three components that have a significant impact on entrepreneurial success, namely: understanding the myth of passion, acknowledging the role of an effective mentor, and recognizing the importance of a personal and business.  Entrepreneurship students actively learn how to make critical decisions throughout their stay in school. They are often tasked to provide solutions to a certain set of customers with varying cases, ultimately helping them develop their critical thinking and problem-solving abilities.  Our 4-P framework of entrepreneurship hinges on 4 Ps, the four major components of entrepreneurship: Pioneer, denoting the entrepreneur as an innovator or champion for innovation; Perspective, denoting the entrepreneurial mindset; Practice, denoting the entrepreneurial activities; and Performance, denoting the outcome.  Entrepreneurship can be viewed as recognizing change, pursuing opportunity, taking on risk and responsibility, innovating, making better use of resources, creating new value that is meaningful to customers, and doing it all over again and again.  The benefits of entrepreneurship extend beyond the businesses they establish. Entrepreneurs improve the lives of individuals and communities, as well as 11 CU IDOL SELF LEARNING MATERIAL (SLM)

the overall economy. Entrepreneurs have been instrumental in spurring social change and improving the way people live and work.  The advantages of entrepreneurship include the ability to shape one's own business, control of one's own working habits, and significant stock in the venture. Disadvantages include a lack of guarantee of success and the heightened responsibility of owning a business.  The entrepreneur conceives the idea of an enterprise, lives with it, and finally establishes the enterprise. Entrepreneurship refers to the process of activities undertaken by an entrepreneur. 1.5 KEYWORDS  Entrepreneur/Entrepreneurship - An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The process of setting up a business is known as entrepreneurship. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures  Venture - A business enterprise or speculation in which something is risked in the hope of profit; a commercial or other speculation: Their newest venture allows you to order their products online. The money, ship, cargo, merchandise, or the like, on which risk is taken in a business enterprise or speculation.  Profit - Profit is the money earned by a business when its total revenue exceeds its total expenses. Any profit a company generates goes to its owners, who may choose to distribute the money to shareholders as income, or allocate it back into the business to finance further company growth.  Start-Up - The term start-up refers to a company in the first stages of operations. Start-ups are founded by one or more entrepreneurs who want to develop a product or service for which they believe there is demand.  Incubator - Business incubator is an organization that helps start-up companies and individual entrepreneurs to develop their businesses by providing a full-scale range of services starting with management training and office space and ending with venture capital financing 1.6 LEARNING ACTIVITY 1. Collect the details of different types of women entrepreneurs. ___________________________________________________________________________ ___________________________________________________________________________ 12 CU IDOL SELF LEARNING MATERIAL (SLM)

2. Collect the best different business ideas for entrepreneurship? ___________________________________________________________________________ ___________________________________________________________________________ 1.7 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What do you mean by entrepreneurship? 2. Define Entrepreneurship. 3. Name any five Indian entrepreneurs. 4. Name five features of entrepreneurism. 5. What are the challenges for Indian entrepreneurs? Long Questions 1. Briefly give an introduction on entrepreneurship. 2. Explain the emergence of entrepreneurial class in India? 3. Explain the challenges for Indian entrepreneurs. 4. Explain the features and characteristics of entrepreneurism. 5. What are the factors leading to increase in entrepreneurship? B. Multiple Choice Questions 1. Which of the following shows the process of creating something new? a. Business model b. Modelling c. Creative flexibility d. Innovation 2. When was the entrepreneur was distinguished from capital provider? a. Middle ages b. 17th century c. 18th century d. 19th and 20th century 3. Which of the Family business always interested to handover the change of his business to? 13 CU IDOL SELF LEARNING MATERIAL (SLM)

a. Indian administration officers b. Professional managers c. Next generation d. None of these 4. What is the EDP (Entrepreneurship Development Programs) is required to help? a. Existing entrepreneurs b. First generation entrepreneurs c. Future generation entrepreneurs d. None of these 5. Why should an entrepreneur do a feasibility study for starting a new venture? a. To identify possible sources of funds b. To see if there are possible barriers to success c. To estimate the expected sales d. To explore potential customers Answers 1-d, 2-c, 3-c, 4-b, 5-b 1.8 REFERENCES References  Grossman, G. M. (1983). International trade, foreign investment, and the formation of the entrepreneurial class (No. w1174). National Bureau of Economic Research.  Zhao, Y. (2012). World class learners: Educating creative and entrepreneurial students. Corwin Press. Textbooks  Desai, V& Kaur, K. (2007). Entrepreneurship Development and Management.  Desai, V& Rai, U. (2008). Entrepreneurship Development and Business Communication. Himalaya Publishing House.  Tiwari, A. (2007). Entrepreneurship development in India. Sarup& Sons. Websites  entrepreneurship/20312 14 CU IDOL SELF LEARNING MATERIAL (SLM)


UNIT – 2: TYPES OF ENTREPRENEURS STRUCTURE 2.0 Learning Objectives 2.1 Introduction 2.2 Innovative Entrepreneur 2.3 Imitating Entrepreneurs 2.4 Fabian Entrepreneurs 2.5 Drone Entrepreneurs 2.6 Summary 2.7 Keywords 2.8 Learning Activity 2.9 Unit End Questions 2.10 References 2.0 LEARNING OBJECTIVES After studying this unit, you will be able to:  Know different classification of entrepreneurs.  Explain nature of their activities.  Define their objective towards establishing business units.  Interpret what makes them to take risks and enjoying benefits. 2.1 INTRODUCTION An entrepreneur is a person who has a role of an industrialist and forms an organization for the commercial use. He is a change agent who transforms the demand into supply by forecasting the needs of the society. Entrepreneurs that manage to keep the work-life balance healthy. Superstar: An entrepreneur with a strong personality and a lot of charisma. They build their business around their personal brand. Artiste: The creatively inclined entrepreneurs. Entrepreneurship is the act of being an entrepreneur or “one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods.” An individual may start a new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. Entrepreneurship, with its emphasis on innovation, is seen to be the means by which both businesses and economies achieve 16 CU IDOL SELF LEARNING MATERIAL (SLM)

sustained competitive advantage. The course will focus on company start-ups and growth of firms. It will cover the financing and venture capital aspect of entrepreneurial practice. First, it aims at enabling you to turn an idea into a revenue-generating business, in various contexts: for example, in a corporate setting, family business, or start up. As such, the course is likely to offer you valuable guidance and management tools for your future careers as business leaders.Entrepreneurship is the ability and readiness to develop, organize and run a business enterprise, along with any of its uncertainties in order to make a profit. The most prominent example of entrepreneurship is the starting of new businesses. Types of Entrepreneurs  Innovative entrepreneur: These are the ones who invent the new ideas, new products, new production methods or processes, discover potential markets and reorganize the company’s structure. These are the industry leaders and contributes significantly towards the economic development of the country.The innovative entrepreneurs have an unusual foresight to recognize the demand for goods and services. They are always ready to take a risk because they enjoy the excitement of a challenge, and every challenge has some risk associated with it. Ratan Tata is said to be an innovative entrepreneur, who launched the Tata Nano car at a considerably low cost. Example: Founded in 2003, Tesla sought to innovate the automobile market by launching a line of affordably priced cars that were entirely electric, which hadn't been done successfully on a large scale until then. By 2019, Tesla had reportedly sold 367,849 units globally, a 50% increase over the year before. Because of how early Tesla was to the market, the company enjoys massive market share in a rapidly growing industry. While Teslas are still largely unaffordable to working-class families — prices start at around $36,000 — the market is expanding, and continued innovation may bring prices down to where it becomes a more widely available mode of transportation.  Imitating entrepreneurs: The imitating entrepreneurs are those who immediately copy the new inventions made by the innovative entrepreneurs. These do not make any innovations by themselves; they just imitate the technology, processes, methods pioneered by others.These entrepreneurs are found in the places where there is a lack of resources or industrial base due to which no new innovations could be made. Thus, they are suitable for the underdeveloped regions where they can imitate the combinations of inventions already well established in the developed regions, in order to bring a boom in their industry. Example: Walton B.D. has introduced its motorbikes, refrigerators, televisions and other electronic appliances in Bangladesh not being the original inventor of those products. 17 CU IDOL SELF LEARNING MATERIAL (SLM)

 Fabian entrepreneurs: These types of entrepreneurs are sceptical about the changes to be made in the organization. They do not initiate any inventions but follow only after they are satisfied with its success rate.They wait for some time before the innovation becomes well tested by others and do not result in a huge loss due to its failure. Example: Kodak, a company that happened to be the market leaders in producing analogy cameras but they did not realize the change and the introduction of the Digicam. For what they lost their leadership, having lost the leadership they have diversified the business in producing the Digicams instead of producing Analog cameras.  Drone entrepreneurs: These entrepreneurs are reluctant to change since they are very conservative and do not want to make any changes in the organization. They are happy with their present mode of business and do not want to change even if they are suffering the losses.Thus, this classification is done on the basis of the willingness of an entrepreneur to create and accept the innovative ideas. Example: City cell Telecom Bangladesh, in spite of having knowledge about their market fall they have not yet changed their business policy. 2.2 INNOVATIVE ENTREPRENEURS What Makes an Entrepreneur Innovative? Innovative entrepreneurs possess a variety of skills that enable them to be successful at bringing to life new business ideas. They communicate well, in a timely manner and with the right information. They can position new products in crowded marketplaces. They win negotiations and build high-performance teams. They strategize to their own advantage and to the consternation of their competitors. And their decisions are backed by sound financial analysis.Entrepreneurs must often innovate to compete. Their success often hinges on bringing to market a new product or service that is better in some way. This is the DNA of innovation: the reinvention of something that brings competitive advantage. Entrepreneurs are constantly re-imagining the business world in innovative ways, and in ways that are more effective or efficient. The innovation of the personal computer, the introduction of the smartphone, the creation of a network that brings everyone together, and the list goes on. Entrepreneurs have been bringing to market new ideas for centuries. They have been the champions of innovation since before the word “entrepreneur” was coined. They are uniquely talented individuals who possess a diverse set of skills that promote new business success. The skills that will get them started include financial acumen, knowledge of market forces, effective communication, active listening, strategic thinking, network building, negotiation, leadership and motivation, time management and being agents of change. Skill #1: Financial Acumen 18 CU IDOL SELF LEARNING MATERIAL (SLM)

Innovative entrepreneurs have a keen understanding of how to manage money and how to use financial assets to start, grow and maintain a business. They understand financial statements like balance sheets and income statements. Innovative entrepreneurs can use financial performance metrics to assess a business' financial health. Their strong financial acumen gives them insight into how to turn a good idea into a profitable business. Skill #2: Knowledge of Market Forces Another key skill that innovative entrepreneurs have is an understanding of market forces. That is, they understand how the business environment will impact the success of a new business. They are skilled at assessing supply and demand for their new product or service. Innovative entrepreneurs understand their competitors, and they understand why they have a competitive advantage. Another market force that innovative entrepreneurs understand is a customer’s power and influence. Customers often expect higher quality products and services at lower prices. The innovative entrepreneur can assess the value of a new business and position it so that customers will ultimately pay more. Skill #3: Effective Communication One of the most important skills that innovative entrepreneurs possess is the ability to communicate in a way that builds relationships, fosters problem resolution, increase productivity and provides clear direction. Effective communication enables an entrepreneur to actively engage partners, employees and other stakeholders in the promotion of new business ideas. When communicating effectively, innovative entrepreneurs listen actively and ask relevant questions so they can better understand how do get things done. They are clear and provide concise feedback which enables them to be perceived as empathetic and trustworthy. Entrepreneurs who communicate well are the driving force behind the successful execution of key business initiatives. Skill #4: Active Listening Innovative entrepreneurs are active listeners. They know when to talk and when to listen. They listen with all of their senses. Innovative entrepreneurs use both verbal and non-verbal massages to convey that they are listening. By active listening, they not only know what is said but allow the speaker to understand that they are truly hearing what is said. They have good eye contact and provide feedback to the speaker creating a more open and honest conversation. They will also ask the right questions that help clarify the speaker’s intent. By being an active listener, an entrepreneur can build trust and establish a rapport with colleagues, team members and business associates. Skill #5: Strategic Thinking 19 CU IDOL SELF LEARNING MATERIAL (SLM)

Innovative entrepreneurs use strategic thinking to position themselves in a competitive market. Having a strategy is an invaluable skill for innovative entrepreneurs. Thinking must be clear and actionable for an entrepreneur to be successful. Strategic thinkers bring new ideas to the table. Then, they follow up their ideas with an execution plan that includes the resources required to bring their idea to life. Strategic thinkers can see how their ideas fit into the bigger picture. Skill #6: Network Building Another skill that innovative entrepreneurs use is their ability to connect with others through an extensive and diverse network. This ability to build and actively engage a useful network enables entrepreneurs to quickly find the best quality resources and attract the best talent to their teams.Networking improves the efficiency of new business ventures. New products and services reach the market faster and have a greater likelihood of success when they are backed by entrepreneurs with effective networking skills. Skill #7: Negotiation Innovative entrepreneurs’ profit from being a good negotiator. Skilled negotiators can broker the best deals between parties who have differing interests. Entrepreneurs must be skilled negotiators because the success of their business hinges on whether or not others see the value in it. An innovative entrepreneur prepares and has all the information that is needed to build a good argument. They are willing to compromise. Are well prepared and understand the value of alternative solutions. They can find common ground on any debatable issue. Innovative entrepreneurs do not have a lot of time to spend resolving conflicts. So, they must address conflict quickly and not waste time refereeing counterproductive stalemates. As good negotiators, innovative entrepreneurs are often skilled at persuasion. They can present information in a way that motivates a purchase. They spend their time persuading others to change their minds, to buy their products or services, to invest in their ideas, and to complete projects on time. Skill #8: Leadership and Motivation Innovative entrepreneurs are great leaders. They have the skills to motivate others to listen, believe and follow. They lead with empathy, decisiveness, trustworthiness, transparency, consistency and clarity. They do not shy away from difficult tasks or challenging conversations. They are committed to the well-being of the team. And this is why they inspire followers. Innovative entrepreneurs must be strong leaders because their path is uncharted, and the way forward is sometimes uncertain. So, they must possess the courage, prudence and vision that motivates others to join them on their unpredictable journey. They must be the example that others want to follow. 20 CU IDOL SELF LEARNING MATERIAL (SLM)

Skill #9: Time Management There is always more to do and less time to do it. So, it is important for entrepreneurs to manage their time well. Innovative entrepreneurs understand time management. They spend the right amount of time on tasks so that goals are met, and their ideas come to fruition. Skill #10: Change Agents Innovative entrepreneurs are agents of change. They gather the resources and forge the relationships that are necessary to bring about long-lasting change. They transform the business landscape for the better by offering best-in-class products and services that have never been offered before. Innovative entrepreneurs know what the world wants before they even know it. Final Thoughts These are the skills of an innovative entrepreneur uses to mitigate risk. These are the skills they use to heighten their flexibility, drive passion and boost creativity. Without these skills, they are less passionate and less likely to achieve great business success. With these skills, they are innovative entrepreneurs. 2.3 IMITATING ENTREPRENEURS Imitative entrepreneurs are particularly suitable for the under-developed regions for bringing a mushroom drive of imitation of new combinations of factors of production already available in developed regions. It is very difficult to make a new method of production for developing countries. As innovative entrepreneurs adopt new methods of production. So, developing countries need to choose the imitative ones to reduce the risk of loss. In a developing country, the people do not take a chance in using the new product for what the innovators do not take a chance of inventing new products. Innovation is the driving force in development; without innovative entrepreneurs, we would not have most of the tools and services, but Developing countries need imitative entrepreneurs because of implementation perfectly. In our country also, a large number of such entrepreneurs are found in every field of business activity and they fulfil their need for achievement by imitating the ideas introduced by innovative entrepreneurs. Development of small shopping complexes is the work of imitating entrepreneurs. All the small car manufacturers now are the imitating entrepreneurs. Example: Walton B.D. has introduced its motorbikes, refrigerators, televisions and other electronic appliances in Bangladesh not being the original inventor of those products. 21 CU IDOL SELF LEARNING MATERIAL (SLM)

2.4 FABIAN ENTREPRENEURS Fabian entrepreneurs or not like innovative entrepreneurs and adaptive entrepreneurs. They will follow in the footsteps of other successors. They will change the methods of their business slowly. These entrepreneurs are not aggressive. They don't like to do radical changes in the business model. They fear if they made any changes to the business model that will affect the business negatively. They are the second-generation Entrepreneur and they are very sceptic about taking a step unless and until they are definite, it would be a loss, if not steps are not taken in time. They only imitate if they see fit and have a clear and broad picture of things. They are do not prefer to take risk, are very rigid and fundamental in there thinking to take risks. They mostly follow the traditional method and do not prefer to change. Example: Fabian are more applicable in the Indian rural agriculture environment, where traditional acquired land is passed down to their successors, the new Landlord try to run their business in a pre-historic manner with traditional methods of book keeping and less changes. 2.5 DRONE ENTREPRENEURS Drone Entrepreneurs: These entrepreneurs are reluctant to change since they are very conservative and do not want to make any changes in the organization. They are happy with their present mode of business and do not want to change even if they are suffering the losses. Drone entrepreneurs are those who refuse to adopt and use opportunities to make changes in production. They will not change the method of production already introduced. They will only follow traditional methods. They may even Suffer losses but also they will not be ready to make changes in production. It is a traditional type of entrepreneurship. A drone entrepreneur has a great prospect not only in the present but in the future as well. Drone entrepreneurs are at a loss as they refuse to make any changes to the existing production system. These entrepreneurs are conservative or orthodox in their outlook. They never like to get rid of their traditional timber business and traditional timber machinery or business systems. Along with the environment, society has changed a lot, yet they always feel comfortable with the old science of their production. They are lagging behind as they continue to work in traditional ways and resist change. Drone entrepreneurs are at a loss as they refuse to make any changes to the existing production system. 22 CU IDOL SELF LEARNING MATERIAL (SLM)

2.6 SUMMARY  Most people think of an entrepreneur as someone with dreams of becoming a titan of industry. While many would-be entrepreneurs have lofty goals, most hope only to create a successful business, whether that success spans the globe or reaches no farther than their local community.  Types of entrepreneurships range from hometown storefront businesses to technological innovations that can change the world.  These snapshot profiles of various entrepreneur types demonstrate the range of opportunities available to people who dream of starting their own business.  An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The process of setting up a business is known as entrepreneurship. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures.  We define entrepreneurial management as the practice of taking entrepreneurial knowledge and utilizing it for increasing the effectiveness of new business venturing as well as small- and medium-sized businesses.  An entrepreneur is a person who starts a new business and usually risks his own money to start the venture. Examples of well-known entrepreneurs include Bill Gates, Steve Jobs, Mark Zuckerberg, Pierre Omidyar, Arianna Huffington and Caterina Fake.  Change, Need, Solution, Stakeholder, Value, and Context: These six core concepts are fundamental to the practice of business analysis.  Entrepreneurship is a process of creating an enterprise by taking a financial risk in order to get a profit, whereas management is the art of getting things done through proper planning, organizing, directing, and controlling.  The three stages of the Lean Start-upEvery lean start-up’s path is different, but all of them will go through the three stages: 1) Problem/solution fit, 2) Product/market fit, and 3) Growth stage.  An entrepreneur should be highly energetic and motivated. ... Passion, resourcefulness, willingness to improvise and listen to others and strong determination to succeed is what makes an entrepreneur successful. And this is what you have to keep in mind as well if you want to be a successful entrepreneur yourself. 23 CU IDOL SELF LEARNING MATERIAL (SLM)

2.7 KEYWORDS  Fabian Entrepreneur: Fabian entrepreneurs are those individuals who do not show initiative in visualizing and implementing new ideas and innovations wait for some development which would motivate them to initiate unless there is an imminent threat to their very existence.  Imitating Entrepreneurs: These entrepreneurs are people who follow the path shown by innovative entrepreneurs. They imitate innovative entrepreneurs because the environment in which they operate is such that it does not permit them to have creative and innovative ideas on their own.  Innovative Entrepreneur: Individual who has the ability to undertake to create innovative products according to the changing demands of the market.  Drone Entrepreneurs: These are those who refuse to adopt and use opportunities to make changes in production. They will not change the method of production already introduced. They will only follow traditional methods. They may even Suffer losses but also they will not be ready to make changes in production.  Adaptive entrepreneurs Refers to entrepreneurs' alertness to opportunities and having a high degree of flexibility in business transactions through quick response to changes in the business environment 2.8 LEARNING ACTIVITY 1. Can a researcher be an entrepreneur? If yes, what type of entrepreneur they can become? ___________________________________________________________________________ _____________________________________________________________________ 2. What are the kinds of objectives constituting the objectives of entrepreneurship? ___________________________________________________________________________ ____________________________________________________________________ 2.9 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What do you mean by Fabian entrepreneurs? 2. What do you mean by Drone entrepreneurs? 3. What do you mean by Innovative entrepreneur? 24 CU IDOL SELF LEARNING MATERIAL (SLM)

4. Write any two features of Innovative entrepreneur? 5. Write any two importance of Fabian entrepreneur? Long Question 1. What are the types of entrepreneurs? Explain in detail? 2. Explain the importance of Fabian entrepreneur? 3. Explain the importance of Innovative entrepreneur? 4. How is innovative entrepreneur differing from Fabian entrepreneur? 5. Difference between drone and innovative entrepreneur? B. Multiple Choice Questions 1. Which of the following types of entrepreneurs is given by C.Danhof? a. Trading entrepreneurs b. First generation entrepreneurs c. Agriculture entrepreneurs d. Innovative entrepreneurs 2. What are the types of entrepreneurs who imitate only when they are sure that failure to do so would result in a loss of the relative share in the enterprise? a. Trading entrepreneurs b. Fabian entrepreneurs c. First generation entrepreneurs d. Innovative entrepreneurs 3. What are the conventional approach, whichthey are not ready to change their existing production methods even if they suffer losses? a. Drone entrepreneurs b. Fabian entrepreneurs c. First generation entrepreneurs d. Innovative entrepreneurs 4. What are the type are entrepreneurs are found in the field of small trading and manufacturing concerns? a. Trading entrepreneurs b. Business entrepreneurs c. First generation entrepreneurs d. Innovative entrepreneurs 25 CU IDOL SELF LEARNING MATERIAL (SLM)

5. In underdeveloped countries, Which of the following entrepreneur is local mobile phone companies use the same technology used by big companies to manufacture their product? a. Trading entrepreneurs b. Agriculture entrepreneurs c. Imitative entrepreneurs d. Innovative entrepreneurs Answers 1-d,2-b,3-a,4-b,5-c 2.10 REFERENCES Reference  Filion, L. J. (2004). Operators and visionaries: differences in the entrepreneurial and managerial systems of two types of entrepreneurs. International Journal of entrepreneurship and small Business, 1(1-2), 35-55.  Andersson, T., Curley, M. G., & Formica, P. (2010). Types of entrepreneurs. In Knowledge-driven entrepreneurship (pp. 131-152). Springer, New York, NY. Textbook  Fortunato, M. W. (2015). Entrepreneurship, innovation and regional development.  Chhikara, M. S. (2010). Enterprise, Entrepreneurship and Small Business. Vision, 14(3), 224.  Petrovskaya, I., Zaverskiy, S., &Kiseleva, E. (2017). Attitude to entrepreneurship in Russia: Three-dimensional institutional approach. Advances in Systems Science and Applications, 17(2), 29-43. Websites     26 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT – 3: CHARACTERISTICS OF ENTREPRENEURIAL LEADERSHIP STRUCTURE 3.0 Learning Objectives 3.1 Introduction 3.2 Risk Taking 3.3 Decision Taking 3.4 Business Planning 3.5 Summary 3.6 Keywords 3.7 Learning Activity 3.8 Unit End Questions 3.9 References 3.0 LEARNING OBJECTIVES After studying this unit, you will be able to:  Explain the risk taking quality of entrepreneurs.  Explain decision making aspect of entrepreneurs.  Define planning of business aspects from entrepreneurs.  Perceive intellectual qualities of entrepreneurs. 3.1 INTRODUCTION An increasingly complex business environment, where rapid changes in technology, competition, regulation and customer needs are the norm, has led to the search for new ways in which organizations can develop the right capabilities by which they can continuously anticipate the need for change.In particular, effective entrepreneurial leadership is becoming increasingly important in ensuring that organizations adapt quickly to changes in today’s fast moving global economy. But what is entrepreneurial leadership and what does it mean for those working with such an individual? 27 CU IDOL SELF LEARNING MATERIAL (SLM)

Various studies have shown entrepreneurial leadership is actually not one particular trait but actually a range of different personal attributes. These include the ability to anticipate, envision, maintain flexibility, think strategically and work with others to initiate changes that will create a viable future for the organization. However, the most critical defining factor is that good entrepreneurial leaders care about their organizations and their people but this is a difficult balancing act in ensuring that they can work closely with their staff whilst maintaining a leadership role. For example, they need to be friendly, approachable and treat them like equals whilst remaining sufficiently distant to exert authority. They also ensure that their team are empowered to make decisions, are aware of the rewards and penalties of not achieving their objectives but also trust the leader’s judgement. They do not impose their solutions on their teams or exclude or suppress potential. Rather they encourage their staff to be creative and to find their own solutions to problems. Most importantly, the authority of entrepreneurial leaders does not come from the position they are given but from their expertise and values. Having a fancy job title does not make someone a leader. Instead, such individuals gain respect by leading through example, empowering their teams and nurturing leaders at all levels to ensure that the organization is successful even when they are not around. One of the key characteristics of such individuals is that they constantly challenge the status quo to see whether they are doing the right things or if what they are doing can be done better or cheaper.Entrepreneurial leaders do not just identify the problem. Instead, they determine the solution and ensure that the required actions get implemented. They also do not let the difficulty of making tough decisions deter them from doing that which will improve the organization. Such individuals set the tone and determine the values of the organization they lead, being careful in ensuring that everything they do reflects the values they espouse and they encourage their people to examine their own values. Most important of all, entrepreneurial leaders are focused on developing others around them and create a sense of urgency within the organization and a mission worth achieving. They set goals that stretch people’s abilities, develop a spirit of teamwork and build confidence. Even when there is no immediate problem, entrepreneurial leaders will often stir things up by breaking down established bureaucratic procedures or setting new stretch targets and goals. As a result, success is usually not measured in quantitative terms but in less tangible ways such as when everyone in the organization feels that they come to work excited and are proud to be associated with the organization. 28 CU IDOL SELF LEARNING MATERIAL (SLM)

3.2 RISK TAKING Taking risks is scary, whether you’re going all-in during a friendly game of poker or quitting your long-time career to pursue one of your promising business ideas. Most people tend to avoid risks, when possible, because inaction is often safer than action, but most successful people will tell you they got to where they are because they were willing to take risks no one else was -- whether that was developing a product nobody else thought would work or investing a sum of money everyone else thought was crazy. Still, taking risks is intimidating, especially for new entrepreneurs. But it’s more complicated than just “doing something that might turn out bad.” To feel more comfortable taking risks and make more informed risk-based decisions, keep these five considerations in mind. Risks every entrepreneur must take Risk-Taking is Inherent in Entrepreneurship If you aren’t prepared to take risks, you have no business being an entrepreneur. Entrepreneurship is fundamentally linked to risk-taking. You’ll need to invest some of your personal capital into a growing business -- in most cases. You’ll stake your reputation on an unproven idea. You’ll sacrifice a steady pay check for the first several months to a year -- again, in most cases. And from there, every decision you make carries some small risk -- your new hire might leave in a month, your lead generation strategy might fail, your new approach might anger one of your best clients, and so on. Accepting risk as a part of the deal, and you need to be ready for that as you enter the entrepreneurial world. There are Different Types of Risks I’m not just referring to “big risks” and “small risks” here -- though those exist, too. There are calculable risks, which involve a series of knowns that allow you to reasonably predict the odds of success. For example, you might be able to infer from historical data that there’s a 30 percent chance a tradeshow’s attendance will dip to a point that makes your attendance unprofitable. There are ambiguous risks, which involve some knowns and some unknowns, which complicate your decision-making process. Most business risks fall into this category, because so many factors, like consumer behavior and economic shifts, are difficult to quantify or predict. Then there are complete unknown risks, which arrive when you bring something truly unique to the market. Knowing the differences between these risks can help you better understand how “risky” your decisions at certain points actually are. Some of your Risks won’t Pay Off The optimistic risk-taker will always see things as half-full; a 50-percent rate of success is “pretty good odds” and a 75 percent rate of success is a “sure thing.” This is compounded by 29 CU IDOL SELF LEARNING MATERIAL (SLM)

the cultural idea that risk taking is generally a rewarding strategy. However, don’t be fooled into thinking that all risks are good risks or that always taking the risky option will pay off. Some risks -- even carefully calculated ones will fail. Instead of ignoring this fact to overcome your apprehension toward risk, embrace it. Let yourself accept the possibility of failure, and when you do fail, don’t take it personally -- learn from the experience and move on. We’re inherently Biased toward Predicting Disaster There are two inherent biases in the human mind that skew our perceptions of risk. The first is that we tend to exaggerate the possibility for failure. In raw estimates (with limited numerical data), people tend to pessimistically predict failure more than real situations would warrant. The second is that we greatly exaggerate the consequences of those failures -- we envision the worst-case scenario, when the reality is far more manageable. Keep this in mind when imagining the negative possibilities associated with your risks. Risk is a Differentiator Some risks offer the promise of higher value. Some risks offer smaller potential consequences than others. Some risks could make or break your business. But there’s one key element all risks have in common: They’re differentiators. Because most people are unwilling to take risks, the risk-takers of the world naturally stand out in the crowd, and as we all know, entrepreneurs and businesses that stand out are the only ones with a shot at breakout success. Even if you end up failing, you’ll end up “failing in style,” so to speak and you might reveal more opportunities for yourself just because you were willing to stand out and break away from the norm. Hopefully, these facts have transformed your perceptions of “risk” as a general concept, even if only slightly. It takes time to get to know the complexities and nature of risk, and even more time to get comfortable taking them, but eventually it will become second-nature to you. Focus on the known factors when you can, accept ambiguities -- and understand that failure is never the end of the road. 3.3 DECISION TAKING As an entrepreneur, you must make different types of decisions on the everyday basis. You must choose directions. Also, you must solve problems. You must take actions. The decision- making process is one of the most critical processes in your company. Simply, you as an entrepreneur will make decisions about everything. Some decisions are more influential on your overall business processes, but some of them are small decisions without significant effect on your business as a whole. 30 CU IDOL SELF LEARNING MATERIAL (SLM)

Let’s try to describe the decision-making process that you can use in your business as an entrepreneur. Decision-Making Process As I have already said, the decision-making process is one of the most critical processes in your business. You can see different types of this process in reality, but generally, they all have the same purpose – effective and efficient decision that will bring results to your business. The most common used approaching in the decision-making process is according the following steps. Recognize the Problem – the Gap First things, first. Every decision-making process starts with the problem or some discrepancy that exist between the desired and current state. You have the desired state, and you have an existing state. The difference between these two is the gap or problem that you must solve through the decision-making process. In this step, you can start with your vision about the desired state of your company and goals you want to achieve. Here are some questions you need to answer as a part of this step in your decision-making process. What are the most critical desired states for your small business? How close is your small business to these states? Why are you close or not close to the desired states? What are the most significant problems here? Analyse the Problem After you find possible problems that require solutions you can start with the analysis of already defined problems. How these problems impact on the achievements of your small business? At the end of this step, you will need to have a list of possible problems sorted by their urgency for the solution. In your analysis, you need to find causes and how the problem impact on your small business. If the impact of the problem is higher, also the importance of the problem will be higher. Define Possible Solutions This is the step when you need to start brainstorming all possible solutions for a given problem, or problem you want to solve with those solutions. For the most critical problems, you analyse in the previous step, create possible solutions. 31 CU IDOL SELF LEARNING MATERIAL (SLM)

When you think about solutions, also think about the causes of the problems. If you don’t remove the causes, your solutions will be only a temporary solution. Your decision-making process needs to include possible causes of each identified problem. Analyse all Possible Solutions Because in the third step you come to more than one possible solution for a given problem, in this step you need to analyse all proposed solutions to rank them and make a decision that you will implement in the future. This step will need to give you the rankings of all possible solutions from the best ones at the top to the worst ones at the end of your list for each problem you discover at the beginning of the decision-making process. Select the Best Solution for the Application Now is time for the real decision. The final result from the decision-making process is a selection of the best possible solution to the problem.What will you implement as a solution for the given problem? The answer to this question will be the decision you are making. Implement the Decision We can’t talk about decision-making process without the implementation of the decision you have made. You will not finish the job until you don’t implement what you have decided. Can you solve the problem only by discovering the solution and making the right solution? No, you will not solve your problem. You need to implement the solution and check the results to see if the specific solution really solves the identified problem. As you can see the overall process described above can be divided into the following four parts (see figure 3.1 below.) Figure 3.1: Decision Making Process 32 CU IDOL SELF LEARNING MATERIAL (SLM)

3.4 BUSINESS PLANNING A business plan is crucial to anyone who’s starting a business. The business plan will serve as a guide to help entrepreneurs stay on the right track towards their goals and at the same time, to make potential investors and lending institutions see their business as lucrative. Developing a business plan requires a lot of time, effort, and planning. Here are some of the steps to help you create a business plan for your business. Executive Summary The executive summary is an outline of your business’ goals and purpose. This part of your business plan includes a brief description of your products and services, a summary of objectives, a justification for viability, a description of the market, growth potential, and an overview of funding requirements. Keep in mind that this section of your business plan is crucial, therefore, you need to get it right. Your executive summary must clearly describe how your business can provide solutions to a particular problem and make a profile. Objectives & Overview As an entrepreneur, for this part, you only need to summarize your current operation, which is easy. Put it into detail including your products and services, how you make them, how you deliver them, how you manage them, etc. For an existing business, this section is longer compared to new businesses. Make sure to emphasize all the important aspects of your products and services that make your business unique. Additionally, make sure to add in the full scope of what you do and what you don’t do. Business Environment Your business plan must have a clear explanation of the business environment. Share an analysis of your current and upcoming competitors, how you compare to them, and any regulations that govern your business. You may also highlight your current or anticipated industry changes. Financial Statements As an entrepreneur, you should be able to include at least three to five years of financial statements. Furthermore, this section of your business plan must also contain the current analysis of profit and loss and cash flow. Throw in at least one year’s worth of pro forma statements and you can move on to the next section. This becomes increasingly important if your business plan requires finance in the forward periods, notes Melbourne Finance Experts director Shaun Hoskin. With lenders being restrictive in lending to businesses, to increase your likelihood of successful funding having well documented financial statements will allow the bank to appropriately understand your risk profile and likelihood to meet your lending obligations. 33 CU IDOL SELF LEARNING MATERIAL (SLM)

Growth Strategy This section is important to investors because it will tell them how you plan to grow and the work that you plan to do to achieve the growth that you want. Detail here how your business will grow to capture market opportunities and how your business is changing to meet the marker’s new opportunities. Developing a business plan for an existing business may seem easy at first, but it needs dedicated time and effort to create a business plan that will captivate investors and financial institutions. Not only will that, continuously updating your business let you see the growth of your business and areas for improvement that will allow you to develop better strategies. So, make sure to do regular updates on your business plans. It’s an effective way to stay on top of things regarding your business 3.5 SUMMARY  Growing a business requires a diverse set of skills, but the one trait that ties them all together is leadership.  Entrepreneurs transform an idea into a product or service that has value to customers. Each step in the process from creating the business plan to achieving profitability calls for a range of organizational and interpersonal skills, all of which depend on leadership.  Adaptability, persistence and hard work, these are the keys to success in small business, but they are three important attributes no matter what your endeavour opportunity seeking, persistence, commitment to work contract, risk-taking, demand for efficiency and quality, goal seeking, in- formation seeking, systematic planning and monitoring, persuasion and networking, self-confidence.  Entrepreneurial competencies are associated with the entrepreneurs' ability to be innovative, creativity, be able to identify opportunities, identify strengths and weaknesses.  What is Entrepreneurship? Entrepreneurship is the process by which individuals pursue opportunities without regard to the resources they currently control. The essence of entrepreneurial behaviours is identifying opportunities and putting useful ideas into practice.  Taking calculated risks is one of the primary concepts in entrepreneurship. This is the most important competency because none of the rest will function without it. Entrepreneurs set goals and objectives which are meaningful and challenging.  Entrepreneurial competencies are defined as underlying characteristics possessed by a person, which result in new venture creation. These characteristics include generic 34 CU IDOL SELF LEARNING MATERIAL (SLM)

and specific knowledge, motives, traits, self-images, social roles, and skills that may or may not be known to the person.  So, our definition of an entrepreneurial personality is: An entrepreneurial personality sees opportunities and exploits them by creating value for themselves and others, sustainably.  The essence of entrepreneurial behaviour is identifying opportunities and putting useful ideas into practice. -The set of tasks called for by this behaviours can be accomplished by either an individual or a group and typically requires creativity, drive, and a willingness to take risks.  Innovation: Entrepreneurial behaviour is also key to innovation, the process of applying and disseminating new products, ideas, and institutional changes throughout society. Both sides need the inclination to change the status quo to be part of the innovation process.  The main motivation for entrepreneurs to overcome the barriers of economic pressure and uncertainty, according to Schumpeter, were the prospects of upward social mobility into the capitalist class. 3.6 KEYWORDS  Risk Talking: Ask most successful entrepreneurs, and they'll tell you their business success was influenced by taking a risk at some point. Taking risks is the way to create opportunity and progress. When an entrepreneur takes certain risks the competition is not willing to take, they can become leaders in their field.  Decision Making: One of the most important traits of being an entrepreneur is being able to take quick decisions that more often than not, decide the fate of your company. At the helm of the company, entrepreneurs often have to take that one decision at the right time which can define the future of their company.  Business Planning: A business plan is a written document that describes in detail how a business—usually a start-up—defines its objectives and how it is to go about achieving its goals. A business plan lays out a written road map for the firm from marketing, financial, and operational standpoints.  Opportunity Seeking: The ongoing process of considering, evaluating, and pursuing market-based activities that are believed to be advantageous for the firm. Prior experience informs the process, but it may also limit it: opportunity seeking calls for continuous reconsideration and adaptive learning.  Business Viability: means that a business is (or has the potential to be) successful. A viable business is profitable, which means it has more revenue coming in than 35 CU IDOL SELF LEARNING MATERIAL (SLM)

itsspending on the costs of running the business. If a business isn't viable, it's difficult to recover 3.7 LEARNING ACTIVITY 1. List the qualities required for becoming the entrepreneur? ___________________________________________________________________________ _____________________________________________________________________ 2. Write importance of entrepreneur’s skill required for development of organization? ___________________________________________________________________________ _____________________________________________________________________ 3.8 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What are characteristic of entrepreneur leadership? 2. What do you mean by risk taking? 3. What do you mean by decision taking? 4. What do you mean by business plan? 5. What are the differences between leader and boss? Long Questions 1. What are the factorsinfluencing the decision-making process? 2. What is a business plan? Explain its process? 3. What are the characteristics ofentrepreneur leadership? 4. Explain the process of decision-making process? 5. What are the risks required to be taken by being an entrepreneur? B. Multiple Choice Questions 1. Which of these is true about entrepreneurs? a. Entrepreneurs are born, not made. b. Anyone can start a business. c. Entrepreneurs are gamblers. d. All of these are true about entrepreneurship. 36 CU IDOL SELF LEARNING MATERIAL (SLM)

2. Which of the following is not true about entrepreneurs? a. Starting a business is risky and often ends in failure. b. Money is the most important start up ingredient. c. Entrepreneurs are their own bosses and completely independent. d. All of these are myths about entrepreneurs. 3. Which of these characteristics has not been associated with entrepreneur's success? a. Commitment and determination b. Creativity, self-reliance and ability to adapt c. Leadership d. Motivation to fail 4. What is the business plan? a. Helps determine the viability of your enterprise. b. Helps you obtain financing. c. Guides you as you plan and organize. d. All of these. 5. What is Leadership? a. The ability to influence a group in goal achievement b. An inherited trait c. Not something that can be learned d. A trait held by all manager Answers 1-e,2-e,3-b,4-d,5-a 3.9 REFERENCES Reference  Timmons, J. A. (1978). Characteristics and role demands of entrepreneurship. American journal of small business, 3(1), 5-17.  Mueller, S. (2011). Increasing entrepreneurial intention: effective entrepreneurship course characteristics. International Journal of Entrepreneurship and Small Business, 13(1), 55-74. 37 CU IDOL SELF LEARNING MATERIAL (SLM)

 Holt, D. T., Rutherford, M. W., &Clohessy, G. R. (2007). Corporate entrepreneurship: An empirical look at individual characteristics, context, and process. Journal of Leadership & Organizational Studies, 13(4), 40-54. Textbook  Kent, C. A., & Rushing, F. W. (1999). Coverage of entrepreneurship in Principles of economics Textbooks: An Update. The Journal of Economic Education, 30(2), 184- 188.  BAKIRCI, H., & ÖÇSOY, K. (2017). An investigation of the activities in science textbooks in terms of the concept of entrepreneurship. Adıyaman University Journal of Educational Sciences, 7(2), 256-276. Websites   process/  entrepreneur.html 38 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT – 4: ENVIRONMENTAL SCANNING STRUCTURE 4.0 Learning Objectives 4.1 Introduction 4.2 Analysis of Business Opportunities 4.2.1 Business Opportunities from Home 4.2.2 Small Business Opportunities 4.2.3 New Business Opportunities 4.2.4 List of Business Opportunities 4.2.5 Business Opportunities near Me 4.3 Summary 4.4 Keywords 4.5 Learning Activity 4.6 Unit End Questions 4.7 References 4.0 LEARNING OBJECTIVES After studying this unit, you will be able to  Explain opportunities available for entrepreneurs.  Define domestic opportunities for entrepreneurs.  Interpret small opportunities for entrepreneurs.  Perceive new business opportunities for entrepreneurs. 4.1 INTRODUCTION In any business organization, there is an internal and external environment. They comprise all the factors that can affect the business of a company in any way. And they also present opportunities for the business to grow and threats that may harm the business. So these environments need constant monitoring. This is where environmental scanning comes into the picture. The environment of a business is extremely dynamic in nature. It is always in a flux, i.e., constantly changing. Which means that the future of the business is also ever changing. And 39 CU IDOL SELF LEARNING MATERIAL (SLM)

the organization must keep a close at its environment via environmental scanning. Let us learn the environmental scanning meaning. It is a complex process. The close study of the internal and external environment of an organization will reveal some very valuable information, i.e., the strengths, weaknesses, opportunities, and threats of a company. Let us take a brief look. Environmental scanning meaning is the gathering of information from an organizations internal and external environments, and careful monitoring of these environments to identify future threats and opportunities. It is the analyses of all factors that may affect the future of the organization.Environmental scanning is a constant and careful analysis of the internal and external environment of an organization in order to detect opportunities, threats, trends, important lessons, and weaknesses which can impact the current and future strategies of the organization. Now that we know the environmental scanning meaning, let us see the purpose. The purpose of this process of environmental scanning is to provide the entrepreneur with a road map to the changes likely to happen in the future. So this way they can adapt the business to overcome the threats and capitalize on the opportunities coming their way.Some Environmental scanning techniques include surveys, interviews, SWOT analysis, market research, etc. These help in the identification of the opportunities and threats that can affect the growth and performance of the organization. Environmental Scanning is an important business tool in any entrepreneurship. When an entrepreneur is coming up with new ideas, plans or innovation of any kind he must first understand if the environment is suitable for this. It helps him develop his creative ideas into actual products that can be offered in the market. So, scanning the environment will help him gauge the acceptance of the product, and the opportunities and threats he may face. Businesses are mainly affected by social, economic, legal, technological and international factors. Environmental analysis is a study of these various influencing factors. Environmental scanning refers to collecting and utilizing the information about prominent trends, patterns, occasions and relationships that can adversely impact the business to determine future opportunities or threats. 4.2 ANALYSIS OF BUSINESS OPPORTUNITIES According to the needs and competition in current business environment, it is essential to make an opportunity analysis of new business venture. An effective opportunity analysis helps to identify the exclusive and most innovative business idea that helps to gain a competitive position in the market place. Therefore, it can be said that the new and innovative idea of business venture should be presented in such a way that helps to obtain all untapped opportunities in an effective way. The basic purpose of the report is to assess the viability of innovative business idea that a business venture presents. The report aims to describe about 40 CU IDOL SELF LEARNING MATERIAL (SLM)

opportunity analysis which includes elements of self-analysis, venture description, market research, industry analysis and technical feasibility study. Along with this, it also includes financial feasibility study, scenario versions and scalability analysis of the new venture. 4.2.1 Business Opportunities from Home When you think of owning and operating a business, you might think about renting commercial real estate, commuting to an office, or managing employees. But with the rise of home businesses, more and more people are discovering ways to use remote work to pursue entrepreneurship with their headquarters at home. In today’s connected world where technology affords us more flexibility in how and where we work, home-based businesses come in a wide variety of forms. Some require you to convert a spare room into a mini-warehouse for products, while others can be run completely online. But generally, you can start these types of businesses using your existing space and means. A home-based business is a venture—whether full-time or run as a side hustle—that you can start and operate using your own home as your base of operations. A few home-based businesses, especially those that sell online and don’t buy and hold lots of inventory, can even be run on the go—you don’t necessarily need to be bound to your home. Naturally, there are pros and cons to consider when deciding whether a home-based business is right for you. Pros  A low investment business idea has fewer overhead costs, plus potential tax deductions you can claim.  The option to sell products or services locally or internationally.  Flexible work/life balance, which is ideal if you’re a stay-at-home parent or a retiree, for example.  You can create a family business where your relations or your spouse can chip in as needed Cons  You may need to convert space in your home to support the needs of your home business (e.g., holding inventory, creating a home office, or storing equipment). The challenge can be doing it without disrupting your life at home.  You still have to comply with any regulations that pertain to the business you want to start (e.g., you may still need to rent a commercial kitchen if you plan to sell food products or a license/permit to hold inventory). 41 CU IDOL SELF LEARNING MATERIAL (SLM)

 Your business may outgrow your home and require you to rent additional space and hire employees.  Working from home offers you a lot of freedom, but it can also be lonely. This might be difficult if you enjoy being around other people. 8 Home-Based Business Ideas you can starttoday While there are plenty of ways to go about starting a home-based business, the following are some of the most approachable paths to creating a home business for yourself. Business Opportunities from Home Drop Shipping One of the best business opportunities from home is drop shipping. Drop shipping has a low barrier of entry, making it a fantastic opportunity for beginners looking to start their first business. In case you don’t know, drop shipping is when a seller sells a manufacturer’s products, but it’s the manufacturer who creates, packages, and ships the products to the customer. Thus, making it a hands-off and inventory-free business. You can sell products in an endless range of niches such as fashion, beauty, pets, home, automotive, and so much more. You can even try one-product store ideas and dropship just a single item. If you’re looking to start an online business, this is one of the most popular business opportunities you can capitalize on today. Consulting Consulting is one of the most common business opportunities. Many specialists start consulting to help a broader range of people with a specific skill. For example, you might be a Facebook Ads expert who educates businesses on how to run effective Facebook Ads. Or you might be a beauty consultant who takes customers shopping to buy the right products for their skin tone. As an expert, you share your expertise with others to help them succeed too. So if you’re looking for some examples of business opportunities from home, think about what skills you excel in. Then, focus on finding people who need help with those. Website Flipping Have you ever visited a website and thought to yourself, “This has so much potential for growth?” Well, you might be able to buy that site, grow it, and then sell it for a profit. That’s called website flipping. You can look for underperforming websites with good potential via manual research or sign up to platforms like Exchange for the purpose. After buying the site, you can improve its earning potential via marketing, SEO, and other tactics. Once the site starts generating more revenue than what it was making when you initially purchased it, you can sell it for a profit. With sites available for as low as $100, this can be a life-changing business opportunity for people with limited capital. Freelancing 42 CU IDOL SELF LEARNING MATERIAL (SLM)

Another business opportunity to consider is freelancing. Instead of consulting where you share your knowledge, in freelancing, you practice your skill for other businesses. If you’re looking for a more hands-off business, you can hire freelancers and delegate the projects to them, so your business scales better. Freelancing is an ideal business opportunity to pursue from home as it often entails remote work such as writing, graphic design, photography, and so forth. For example, a company might hire a team of freelance makeup artists and outsource work for various weddings, photo-shoots, and corporate events. Print on Demand Just as drop shipping is popular, print on demand proves to be a worthwhile opportunity in itself. With print on demand, you design your products, and a manufacturer prints, packages, and ships products to customers for you on your behalf. The creative freedom and hands-off shipping make it one of the best business opportunities in the ecommerce space. The critical difference between print on demand and drop shipping is that with print on demand, you’re selling one of a kind products that nobody else is selling. The challenge is that you might not know what will sell well because you have no one to compare to. But the rewards that you’ll be the only seller make it a business opportunity to jump on. 4.2.2 Small Business Opportunities Small business opportunities are Blogging One of the best small business opportunities is blogging. Blogging is popular because it gives you the opportunity to create many potential sources of income. You could make money from affiliate marketing, ads, information products, physical products, influencer marketing, sponsor-ships, and gated premium content. It’s even possible to earn passive income by publishing articles upfront and placing ads within the content so that you earn whenever a reader clicks on an advertisement. With so many potential income sources, bloggers focus on creating and marketing their content to build their website traffic. They promote via search engine optimization (SEO) and social media to gain new website visitors. Affiliate Marketing Small business opportunities, like affiliate marketing, are pretty common. You can become an affiliate of many top brands. An affiliate marketer earns a commission on every sale he brings into a brand. Some brands like Amazon pay a small percentage of sales for every product an affiliate brings in. Other brands like Shopify pay up to $58 for every customer an affiliate brings in. You can build a blog, create posts on social media, or run ads with your affiliate link to generate sales for the brand you’re promoting. App Creation One of the most popular small business opportunities involves creating apps. You can build entertaining apps, such as addictive games or apps that are useful, such as a to-do list. You’ll 43 CU IDOL SELF LEARNING MATERIAL (SLM)

need to know programming skills for either iOS or Android to become successful in this field. Of course, you can always outsource your app creation to a developer through a freelance website, but this can cost you tens of thousands of dollars upfront for a unique app. A better alternative is to take online app development courses and learn how to build a mobile app from scratch. To promote your app, you can do media outreach, blogging, and back link mentions on popular articles. Online Course Creation Online learning is one of the most significant business opportunities for the coming years. More people are taking to the internet to learn online. The e-learning market is expected to grow to $325 billion by 2025. You can create online courses in various niches. Whether you create the online courses yourself, hire people to create the courses for you, or let course creators use your platform, you can earn money doing this. It’s a worthwhile opportunity right now because it’s already popular and expected to continue growing. Customer Support Many companies out there require help in assisting their customers. So why not create a business by opening your own customer support firm? You can offer to handle queries on behalf of a company via chat, email, and phone. Using help desk software will allow you to manage customer interactions from one central location. If a lot of companies show interest in your services, you can hire remote chat specialists to expand your resources. As your business scales, it might even be possible to set up a remote-friendly customer support business where your staff members work from their homes. 4.2.3 New Business Opportunities 1. Cyber security (Ethical hacker) With most of the world being online, we see a rise in cybercrime. That makes cyber security one of the most important business opportunities to consider. The industry is growing more prominent, and it solves one of the biggest online challenges people have today. There’s also ethical hacking which is slightly different but can help prevent counterattacks or major hacks for big brands. Those who invest in starting a cyber-security business will likely realize it’s a prominent business opportunity. 2. Artificial intelligence Artificial intelligence is one of the new business opportunities that still hasn’t made waves yet. Some fear that robots will take over the world. But artificial intelligence will be part of our society in some form or another. And who knows, maybe humans will become half robotic in some way. The businesses that explore artificial intelligence will be part of one of the future’s biggest industries. Some are hard at work already, but we’ve yet to see what will be made of artificial intelligence, making this an exciting business opportunity to explore. 3. Cryptocurrency investor 44 CU IDOL SELF LEARNING MATERIAL (SLM)

While cryptocurrency has already proven to be one of the most popular business opportunities, it’s still not at its peak. We’re unsure of how cryptocurrency will continue to evolve and grow. However, cryptocurrency investors may end up winning big if more companies and banks accept cryptocurrency as payment. Of course, there are always risks involved, and you may lose more than anticipated. But all great business opportunities have risks. Just be sure to do your homework first. 4. Automation One of the new business opportunities you can jump on is automation. We’ve seen automation-focused businesses grow substantially. Whether you’re automating retargeting ads or a repetitive task, the automation tools created can help save people time and money. And that’s why people end up becoming customers. It solves a significant problem. And those are the best business opportunities to go after. 5. 3D printing 3D printing is another exciting technology that is generating business opportunities left and right. You can buy a few 3D printers (new or second hand, depending on your budget) and offer various services to different companies. One popular service is developing prototypes, where you print a product model so that the client can just test the waters with its features. You can attract small businesses by providing such services since they need to test product quality while keeping costs low. Contrary to popular belief, the price of 3D printers has come down considerably due to an increase in supply from Chinese manufacturers. 4.2.4 List of Business Opportunities 1. Real estate investing Real estate can be tricky as housing prices don’t always go up. We’ve also seen a major real estate market crash happen in our lifetime. However, the money you make from owning several rental properties can be enough to help you live a comfortable life. This business opportunity is too good to pass up. As the properties get paid off by the renters, you can choose to sell the properties if the value has gone up. To save on taxes, you can also reinvest the money earned into buying a bigger property such as a duplex or condo. 2. Dog walking business The pet industry is one of the biggest industries. With so many people owning dogs, we’ve seen the rise in dog walking businesses. Dog walking is a business opportunity that works well in major cities. You can choose to walk packs of five or fewer dogs of the same size. As dog owners become more informed about the separation anxiety their pets experience, they turn to dog walking services to help their dogs socialize and get some fresh air. This business opportunity has already proven to be popular, so it’s a worthwhile one to start if you’re passionate about dogs. Sites like Rover and Barkly Pets are great for landing your first few clients. 45 CU IDOL SELF LEARNING MATERIAL (SLM)

3. Housekeeping business In major cities, people continuously search for housekeepers and cleaners to keep their home tidy while they’re at work. Housekeeping poses a potential business opportunity for a savvy marketer. If you know how to find potential customers, you can hire cleaners to clean those customers’ homes. You’ll pay the cleaners an hourly fee. However, you can earn a sizable income from the rate you change your customers. And at scale, the dollars add up. 4. Tutoring business Business opportunities are common in the education space. So many people want to learn. That’s why tutoring businesses are still popular. If your goal is to create a job for yourself, you can be the tutor. However, if you’re looking to own the business, you can hire teachers to educate younger students. You’ll simply need to find customers for online teaching. The more customers you have, the bigger your business will grow. You can rent out office space for a couple of hours in the evening instead of investing in your own office space to cut costs. This can help you build a sustainable business. 5. Influencer services One of the most modern business opportunities involves influencer marketing. If you have a massive social media following, you can partner with other businesses to promote their products to your audience. When starting out, you might partner with affiliate programs to see how well your audience grows. And as your audience scales, more business opportunities come your way. You can focus on building various accounts. Maybe one where you build yourself or a pet as an influencer. Then perhaps another where you build fan pages for a specific topic or niche. 6. Photography business Do you always carry your camera with you, and enjoy taking candid pictures? Yes? Then a photography business might be a perfect option for you. To succeed in this field, make sure to focus on a niche that has good demand. Wedding photography is popular because many grooms and brides want to capture the events and moments on their big day. But even if you’re not interested in weddings, there’s no shortage of areas to specialize in. Want to gain more attention for your work? You can contribute to the Brust library, a stock image website helping entrepreneurs find images to use for their business. 4.2.5 Business Opportunities near Me 1. Uber or Lyft driver If you’re looking for local business opportunities, you can become an Uber or Lyft driver. Keep in mind that this business opportunity is popular right now. But with the expectation that there will be self-driving cars in the future, this business opportunity may be short-lived. But if you love capitalizing on business opportunities fast, you can start a driving service 46 CU IDOL SELF LEARNING MATERIAL (SLM)

using Uber or Lyft to find clients. This is particularly helpful for limo drivers who are looking to earn more income beyond what they can earn from a limousine company. 2. Food delivery If you’re continually Googling ‘business opportunities near me,’ you might’ve noticed that food delivery services are growing quite big. You can choose to drive, bike, or walk for your food delivery business. And you don’t necessarily be the person delivering food to capitalize on this business opportunity. You can also own the business by hiring people who’ll deliver the food to customers. If you own a convenience store or restaurant, you can sell the food, snacks, or drink people are ordering. This can be a way to expand your business’ reach. 3. Rent on Airbnb Airbnb renting is one of the most attractive business opportunities in the local business niche. It can be challenging to find people to rent your unit or spare bedroom to. So, broadening your audience and renting to travellers is an excellent opportunity to capitalize on. You can charge a price that’s on par or close to the cost of a hotel’s day rate. Thus, if you were booked up for the whole month, you would’ve made more overall than if you were renting out to a tenant the traditional way as standards are different. 4. Open a food truck Many entrepreneurs are passionate about food. That’s why so many people aspire to open up a restaurant. However, with rent fees being sky-high in popular cities and competition fierce, many restaurants end up failing in only a couple of years. Thus, opening up a food truck is an excellent business opportunity for aspiring restaurant owners. It allows you to serve your own dishes but with a much lower risk. 5. Become a personal shopper If you have good knowledge of fashion or another field, you can offer to become a personal shopper for people in your locality. This is where you shop for people who are too busy or simply unable to buy products from themselves. Knowledge of what’s trendy and what’s outdated can help you stand out from other personal shoppers in your area. You can also go the extra mile by encouraging your clients to experiment with something you think would enhance their look and confidence. 4.3 SUMMARY  The most life-changing business opportunities are the ones you explore. Recognizing an opportunity is only one part of the equation. The other important part is taking that first step to start the business. 47 CU IDOL SELF LEARNING MATERIAL (SLM)

 Let these business opportunities serve as a guide for what has potential. And try to choose the one that is aligned with your skills and passion. Which opportunity will you jump on today? Let us know in the comments.  Environmental scanning refers to collecting and utilizing the information about prominent trends, patterns, occasions and relationships that can adversely impact the business to determine future opportunities or threats.  Environmental scanning allows the firm to make the best decision keeping in mind the success and growth of the business. They point out all the threats and weaknesses. And they also identify the strengths of the firm.  How often should an environmental scan take place? An organization needs to analyse changes in the market and the surrounding environment continuously, but for environmental scanning specifically, quarterly scanning helps organizations stay ahead of potential problems and adapt to a changing marketplace as it evolves.  Gathering data deliberately through market research studies; Having informal conversations with other executives; Reading secondary sources such as web articles, newspapers, magazines and journal literature; Monitoring demographic data;  Start scanning the relevant areas, using environmental scanning techniques like SWOT analysis, PESTLE analysis, interviews, surveys, focus groups, market research etc. Weed out the unnecessary information and organize the relevant findings. You can make use of an affinity diagram to quickly categorize the data.  Environmental scanning includes both looking at information (viewing) and looking for information (searching). Research in organization science suggests that it might be helpful to distinguish between four modes of organizational scanning: undirected viewing, conditioned viewing, informal search and formal search. 4.4 KEYWORDS  Environmental Scanning:Environmental scanning is the ongoing tracking of trends and occurrences in an organization's internal and external environment that bear on its success, currently and in the future. The results are extremely useful in shaping goals and strategies.  A Business Opportunity: Refers to in the simplest terms, is a packaged business investment that allows the buyer to begin a business.(Technically, all franchises are business opportunities, but not all business opportunities are franchises).  Drop shipping: Drop shipping is a retail fulfilment method where a store doesn't keep the products it sells in stock. Instead, when a store sells a product using the drop 48 CU IDOL SELF LEARNING MATERIAL (SLM)

shipping model, it purchases the item from a third party and has it shipped directly to the customer.  SWOT: SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT Analysis is a technique for assessing these four aspects of your business. You can use SWOT Analysis to make the most of what you've got, to your organization's best advantage.  Blogging: Blogging refers to writing, photography, and other media that's self- published online. Blogging started as an opportunity for individuals to write diary- style entries, but it has since been incorporated into websites for many businesses. 4.5 LEARNING ACTIVITY 1. Write any five business opportunities available from home? ___________________________________________________________________________ ___________________________________________________________________________ 2. List few business opportunities available for new entrepreneur? ___________________________________________________________________________ ___________________________________________________________________________ 4.6 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What do you mean by business opportunities? 2. What do you mean by environmental scanning? 3. What are the tools available for environment scanning? 4. What do you mean by drop shipping? 5. What do you mean by blogging? Long Questions 1. What isenvironmental scanning? Explain the pros and cons of environmental scanning? 2. Explain the small business opportunities in detail? 3. Discuss about the new business opportunities available for the new entrepreneurs? 4. What are business opportunities available from home? Explain in details. 5. Explain the tool available for environmental scanning? 49 CU IDOL SELF LEARNING MATERIAL (SLM)

B. Multiple Choice Questions 50 1. Why is environmental scanning done? a. For setting a vision b. For finding/scanning a problem c. For gathering the responses of the business d. For deriving the creativity and innovation 2. What environmental scanning include? a. Internal b. External c. Environment d. None of these 3. What does the internal environmental scanning include? a. Structure (Chain of command) b. Culture (beliefs, expectations, values) c. Resources (Assets, skills, competencies, knowledge) d. All of these 4. What is early identification of opportunities? a. Does not make a difference b. Always results in success c. Handles the problems without any hurdles d. Gives an edge to an organization 5. What are opportunities does society gives us? a. Power to think b. Express thoughts and feelings c. Both A and B d. None of these Answers 1-c,2-c,3-d,4-b,5-c CU IDOL SELF LEARNING MATERIAL (SLM)

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