CU-MCOM-SEM-III-Entrepreneurship

MASTER OF COMMERCE SEMESTER III ENTREPRENEURSHIP

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 Introduction To Entrepreneurship ............................................................................. 4 Unit - 2 The Entrepreneur.................................................................................................... 20 Unit- 3 Business Opportunity Identification ........................................................................ 35 Unit- 4 Preparing A Business Plan ...................................................................................... 52 Unit -5 Capital Strucutre ..................................................................................................... 69 Unit-6 Financial Analysis And Planning.............................................................................. 83 Unit-7 Launching The New Venture.................................................................................... 98 Unit -8 Managing Growth In New Venture ....................................................................... 128 Unit-9 Sources Of Institutional Finance For Entrepreneurs ................................................ 142 Unit-10 Small Business Management ................................................................................ 187 Unit-11 Harvesting Rewards ............................................................................................. 210 Unit-12 State Industries Acts............................................................................................. 225 Unit-13 Employees Provident Fund Act 1948 ................................................................... 253 Unit -14 Bonus Act 1978................................................................................................... 263 3 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 1 INTRODUCTION TO ENTREPRENEURSHIP STRUCTURE 1.0 Learning Objectives 1.1 Introduction 1.2 Meaning and concept of entrepreneurship 1.3 The history of entrepreneurship development 1.4 Role of entrepreneurship in economic development 1.5 Agencies in entrepreneurship management 1.6 Future of entrepreneurship 1.7 Summary 1.8 Keywords 1.9 Learning Activity 1.10 Unit End Questions 1.11 References 1.0 LEARNING OBJECTIVES After studying this unit, you will be able to:  Describe the meaning of entrepreneurship  Identify the role of entrepreneurship in economic development  State history of entrepreneurship development  List the agencies in entrepreneurship management 1.1 INTRODUCTION Entrepreneurship is the art of beginning a business, fundamentally a startup company advertising inventive product, process or service. We are able say that it is an movement full of inventiveness. An entrepreneur sees everything as a chance and shows bias in taking 4 CU IDOL SELF LEARNING MATERIAL (SLM)

choice to abuse the chance. An entrepreneur may be a maker or an originator who plans unused thoughts and trade forms agreeing to the advertise requirements and his/her claim energy. To be a fruitful entrepreneur, it is exceptionally vital to have administrative aptitude and solid group building capacities. Authority traits are a sign of effective entrepreneurs. A few political financial analysts regard leadership, management capacity, and group building aptitudes to be the fundamental qualities of an entrepreneur. An entrepreneur is an trend-setter or a maker who presents something new to the firm or economy. It can be a new method of generation, a modern item, a unused source of fabric, a unused advertise or any other similar innovation. In this way, an entrepreneur is an trailblazer, maker, borrower, buyer, etc. A few celebrated entrepreneurs are Azim Premji, Lakshmi Mittal, and Ekta Kapoor. 1.2 MEANING AND CONCEPT OF ENTREPRENEURSHIP Entrepreneur – Meaning and Definition An entrepreneur is one who innovates, raises cash, gathers inputs, chooses directors and sets the association going with his capacity to distinguish them. Innovation occurs through: (a) The introduction of a unused quality product, (b) A modern product, (c) A disclosure of a new demand and a new source of supply, and (d) By changes within the organisation and management. An entrepreneur in a creating economy is one who begins an industry, undertakes risk, bears uncertainties additionally performs the managerial functions of decision-making and coordination. A most fitting definition of entrepreneur is that, “he could be a man who recognizes and evaluates a new situation in his environment and directs the making of such alterations within the financial frameworks as he considers necessary”. An entrepreneur performs one or more of the following: (i) Sees openings for profitable investments, (ii) Investigates the prospects of starting a manufacturing enterprise, (iii) Gets fundamental mechanical licenses, (iv) Organizes starting capital, 5 CU IDOL SELF LEARNING MATERIAL (SLM)

(v) Gives personal guarantees to the budgetary institution, (vi) Promises to meet the shortages within the capital, and (vii) Supplies technical know-how. In actual practice the term “entrepreneur” is ascribed to all small industrialists, little businessmen, and dealers. All individuals who are profitably locked in in work of manufacturing, distribution or benefit and other divisions are called entrepreneurs. As a catalytic specialist the entrepreneur has got to alter the mentality of the specialists so that they acknowledge radical changes in framework structure and forms which the association is contemplating to present in order to total the rivals. The most critical is to alter the key esteem, convictions and norms established and acknowledged by the workers. These changes are fundamental within the organisation to stretch on productivity, quality, speed, development, client introduction and strengthening. For this reason an entrepreneur is expected to play a pivotal part in creating among the workers essential information, abilities and suitable demeanors, and move forward their performance. Entrepreneur is an organizer and examiner of a trade venture. Entrepreneur lifts financial assets out of a range of lower to an range of higher efficiency and more prominent yield. Entrepreneur is frequently related with an individual who begins his possess modern little business. Concept of Entrepreneurship Entrepreneurship is the energetic handle of making incremental riches. This riches is made by people who accept the major dangers in terms of value, time, and/or career commitment of giving esteem for a few product or service. The item or benefit itself may or may not be unused or one of a kind but esteem must some way or another be imbued by the entrepreneur by securing and designating the fundamental aptitudes and resources. Also, it was by and large recognized that entrepreneurs serve as operators of alter, give imaginative, innovative thoughts for trade ventures and offer assistance businesses develop and ended up profitable. Whatever the particular action they lock in in, entrepreneurs within the twenty-first century are considered the heroes of free enterprise. Many of them have utilized development and imagination to construct gigantic undertakings. Enterprise is presently regarded as “pioneer ship” of business. Agreeing to Diminish E Drucker “Entrepreneurship is characterized as ‘a systematic innovation, which comprises within the deliberate and organized search for changes, and it is the systematic analysis of the opportunities such changes might offer for economic and social innovation” The concept of Entrepreneurship alludes to a special skill or capacity to mobilize the variables of generation – Arrive, work & capital and utilize them to create unused products and services. The history of the early mechanical improvement and exchange and ensuing 6 CU IDOL SELF LEARNING MATERIAL (SLM)

innovation in any nation is to a great extent the history of its entrepreneurs. It depicts individuals with the pioneering soul, instinctive and motivation and an eagerness to work difficult and take dangers. They are the lively self-starters who make it their mission to meet trade challenges, autonomously and are restless in working for somebody else, for a salary. In a nutshell, concept of entrepreneurship can be understood as under: (i) Entrepreneurship includes decision making, advancement, execution, estimating of long- term , independency, and success. (ii) Entrepreneurship could be a discipline with an information base hypothesis and is an result of complex socio-economic, mental, innovative, legitimate and other factors. (iii) It may be an energetic and risky process. (iv) It includes a combination of capital, innovation and human talent. (v) Entrepreneurship is similarly pertinent to big and small businesses, to economic and non-economic activities. (vi) Distinctive entrepreneurs might have a few common characteristics but all of them will have a few diverse and unique qualities. (vii) Business could be a prepare. It isn't a combination of a few stray incidents. (viii) It is the purposeful and organized look for alter, conducted after systematic analysis of openings within the environment. (ix) Business enterprise may be a reasoning – it is the way one considers, one acts and so it can exist in any situation, be it business or government or within the field of education, science & technology. (x) Entrepreneurship can be depicted as a prepare of action that an entrepreneur attempts to set up his enterprise. (xi) Entrepreneurship may be an imaginative activity. (xii) It is the ability to form and construct something from for all intents and purposes nothing. (xiii) It may be a skill of detecting opportunity where others may see chaos, contradiction and confusion. (xiv) Entrepreneurship is the demeanor of intellect to look for openings, take calculated dangers and derive benefits by setting up a venture. (xv) It comprises of various activities included in conception, creation and running an enterprise. 7 CU IDOL SELF LEARNING MATERIAL (SLM)

(xvi) Entrepreneurship may be an energetic handle of vision, alter, and creation. It requires an application of vitality and energy towards the creation and implementation of unused thoughts and creative solutions. (xvii) Basic fixings include the readiness to require calculated risks-in terms of time, value, or career; the ability to define an effective venture team; the creative skill to marshal required resources; In this manner “Entrepreneurship may be an energetic prepare of vision, alter, and creation. It requires an application of vitality and enthusiasm towards the creation and execution of unused thoughts and creative solutions. Essential ingredients incorporate the readiness to require calculated risks-in terms of time, value, or career, capacity to formulate an effective venture group, creative skill to organize required assets, the elemental skill of building a strong business plan and, over all, the vision to recognize opportunity where others see chaos, contradiction, and confusion.” 1.3 THE HISTORY OF ENTREPRENEURSHIP DEVELOPMENT The concept of entrepreneurship played a developmental part within the rise of trade history as a distinct academic field. Since the center of the nineteenth century, financial historians had critiqued the inactive hypotheses of classical and neoclassical economic thought by recording the ways in which the structure of economies had changed over historical time. This early historicism emphasized the ways in which the educate of capitalism and industrialism evolved. By the early twentieth century, in any case, a number of historians and verifiable sociologists had moved past the regulation viewpoint the mindset and agency of business visionaries within the handle of financial change. German verifiable sociologists investigated the role of religion and social relations within the development of present day capitalist states of mind toward financial pick up and financial opportunity (Weber 1904, English interpretation 1930; Simmel 1908, English interpretation 1950; Sombart 1911). By the center decades of the century financial and trade historians were exceptionally locked in in inquiring about the careers of persuasive eighteenth-century business people as a way of understanding the causes of the Mechanical Transformation (Ashton 1939; Wilson 1955; McKendrik 1959, 1964). These studies focused consideration on the inventive organization and subjectivity of individuals within the prepare of financial change. This growing consideration to entrepreneurs as operators of verifiable alter was supported by the theoretical work of Joseph Schumpeter. The Austrian economist’s thoughts made a difference build up entrepreneurship as a substantive zone of authentic inquire about and deepened the significance of the trade historians’ endeavors by connecting business to a hypothesis of economic change. Schumpeter contended that the essence of entrepreneurial 8 CU IDOL SELF LEARNING MATERIAL (SLM)

movement lay within the creation of “new combinations” that disturbed the competitive harmony of existing markets, items, forms and organizations (Schumpeter 1947). The creation of such modern combinations, he expounded, was a consistent source of alter inside markets, industries, and national economies. It underlay the “creative destruction” that supplanted ancient forms of financial exchange with modern shapes in capitalist economies (Schumpeter 1942). Within the decade driving up to his passing in 1950, Schumpeter more than once focused that the experimental think about of entrepreneurship was an intrinsically historical endeavor since the marvel was best caught on in retrospect as a basic component within the process of mechanical and financial alter. Social logical examination of entrepreneurship required to center not as it were on business people and their firms but moreover on worldly changes within the industries, markets, social orders, economies, and political frameworks in which they worked, an mixed approach that history could provide. By the 1940s a number of historians, motivated in huge portion by the Schumpeterian concept of enterprise as an specialist of alter within the economy, started to push empirical trade history past the prior personal ponders of business visionaries to higher levels of conceptualization. The group was driven within the Joined together States by the financial historian Arthur Cole. In 1948, he organized the Center for Investigate on Entrepreneurial History, based at Harvard. Partners of the Center included financial specialists and sociologists as well as history specialists and Cole energized a wide run of approaches to “entrepreneurial history,” counting socio-cultural ponders of entrepreneurial roots, neoclassical financial approaches, and work that centered on the advancement of businesses and organizations. Whereas inquire about in entrepreneurial history took an varied set of directions, the Center and its diary, Investigations in Entrepreneurial History, given the organization mechanisms for bringing this wide-ranging observation together in ways that educated common concepts and hypotheses of entrepreneurship (Sass 1978). Cole (1959, 1968) moreover distributed a few articles and books that attempted to synthesize the experimental investigate and utilize it to address theories of entrepreneurship. By the 1960s, be that as it may, a unmistakable move among American trade and economic historians driven them absent from “entrepreneurial history” and its diversity. In portion, this was due to declining financial and regulation bolster for the Center, which closed its entryways in 1958. Additionally, more youthful business historians were progressively drawn to the more centered organizational and managerial ponders that Chandler (1962) had spearheaded. Chandler was irresolute approximately the independent part of business people in forming the direction of trade improvement. By 1970 a clear move had taken put in American trade history inquire about toward building an “organizational synthesis” of the 9 CU IDOL SELF LEARNING MATERIAL (SLM)

development of the advanced, multi-divisional corporation (Galambos 1970). At the same time, American financial history specialists progressively received standard neoclassical financial hypothesis and quantitative methods in their inquire about, dismissing the variance of “entrepreneurial history” and receiving neoclassicism’s conventional skepticism of entrepreneurship as a concept. Emblematic of this change, the defunct Explorations in Entrepreneurial History was revived as Explorations in Economic History, a publication devoted to the new quantitative, neoclassical studies. The Chandlerian move of the inquire about plan towards the enterprise did not totally displace entrepreneurial history investigate, but it got to be minimal to the most investigate plan of trade history. Entrepreneurship and innovation proceeded to be explored, but enterprise once in a while possessed center organize in such ponders. There was little footing behind utilizing verifiable research to look for broader theoretical conceptualizations of business enterprise. Subsequently entrepreneurship research in business history nowadays is once in a while considered a single coherent field, but or maybe is managed with as portion of numerous diverse subtopics. In the meantime the more seasoned tradition of writing chronicled histories of driving entrepreneurs has proceeded. In spite of the fact that most such histories are hagiographical, this sort proceeds also to contribute well-researched and profoundly contextualized ponders of major entrepreneurial figures such as Dudley Docker (Davenport-Hines 1984), Sir William Mackinnon (Munro 2003), Werner von Siemens (Feldenkirchen 1994), Kiichiro Toyoda (Wada and Yui 2002), Marcus Wallenberg (Olsson 2001), and Admirable Thyssen (Fear 2005). These ponders offer compelling experiences into how entrepreneurial openings were recognized and abused. For case, the biography of Robert Noyce, co-founder of Fairchild Semiconductor and Intel, investigates in profundity the systems of data and financing which allowed the development of the Silicon Valley innovation cluster (Berlin 2005). From a methodological point of view, the essential drawback with such ponders emerges from determining significant generalizations around entrepreneurship from individual cases. The growing research on entrepreneurial cognition in the management literature may provide an opportunity to revisit the research in these biographies from that perspective, to the benefit of both literatures. 1.4 ROLE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT Economic development essentially implies a handle of upward alter whereby the genuine per capita salary of a country increases over a period of time. Entrepreneur plays an imperative part in financial advancement. Entrepreneurs serve as the catalysts within the handle of industrialization and economic growth. Specialized advance alone cannot lead to financial development, unless innovative breakthroughs are put to economic utilize by entrepreneurs. It 10 CU IDOL SELF LEARNING MATERIAL (SLM)

is the business person who organizes and puts to utilize capital, work and innovation. Appropriately, “development does not happen suddenly as a common result when financial conditions in a few sense are right. A catalyst is required and this requires entrepreneurial action to a significant degree, the diversity of activities that characterizes wealthy nations can be credited to the supply of entrepreneurs.” The entrepreneur is the key to the creation of unused enterprises that energize the economy and revive the built up endeavors that make up the financial structure. Entrepreneurs start and maintain the method of financial development within the taking after ways: 1. Capital Formation: Entrepreneurs mobilize the sit out of gear reserve funds of the open through the issues of mechanical securities. Investment of open reserve funds in industry comes about in profitable utilization of national assets. Rate of capital arrangement increases which is essential for fast financial development. In this way, an entrepreneur is the maker of wealth. 2. Improvement in Per Capita Income: Entrepreneurs find and abuse openings. They change over the idle and sit out of gear resources like arrive, work and capital into national salary and riches within the frame of merchandise and services. They offer assistance to increase net national item and per capita wage within the nation, which are critical measuring sticks for measuring economic growth. 3. Era of Employment: Entrepreneurs generate employment both directly and by implication. Specifically, self-employment as an business visionary offers perfect way\">the most perfect way for independent and honorable life. By implication, by setting up huge and little scale trade units they offer jobs to millions. In this way, enterprise helps to reduce the unemployment issue within the country. 4. Balanced Regional Development: Entrepreneurs within the open and private sectors offer assistance to expel territorial incongruities in financial improvement. They set up industries in in reverse regions to profit different concessions and appropriations advertised by the central and state governments. Public sector steel plants and private sector industries by Modis, Tatas, Birlas and others have put the hitherto unknown places on the international map. 5. Improvement in Living Standards: Entrepreneurs set up industries which expel shortage of basic commodities and present unused items. Production of products on mass scale and make of painstaking work, etc., within the little scale division offer assistance to move forward the guidelines of life of a common man. These offer products at lower costs and increment assortment in consumption. 11 CU IDOL SELF LEARNING MATERIAL (SLM)

6. Financial Independence: Entrepreneurship is fundamental for national self-reliance. Industrialists offer assistance to make innate substitutes of up to this point imported items in this manner decreasing reliance on remote nations. Businessmen moreover send out products and services on a huge scale and subsequently win the rare outside trade for the country. Such moment substitution and trade promotion offer assistance to ensure the economic independence of the nation without which political freedom has small meaning. 7. Backward and Forward Linkages: An entrepreneur starts alter which contains a chain response. Setting up of an venture has a few in reverse and forward linkages. For case- the foundation of a steel plant produces a few auxiliary units and grows the request for press metal, coal, etc. These are backward linkages. By expanding the supply of steel, the plant encourages the development of machine building, tube making, utensil fabricating and such other units. Entrepreneurs make an environment of excitement and pass on a sense of reason. They donate an organization its force. Entrepreneurial behavior is basic to the long term essentialness of each economy. The hone of entrepreneurship is as imperative to set up firms because it is to unused ones. 1.5 AGENCIES IN ENTREPRENEURSHIP MANAGEMENT The Government has set up different centres or establishing to give training and development to entrepreneurs, so as to progress their information, states of mind, and aptitudes. For the advancement of entrepreneur a number of specialized organizations have been set up by the state and central goverenments which are as follows:  Small Industries Service Institutes (SISI)  Small Industries Development Organisations (SIDO)  National Small Industries Corporation  Small Industries Extension Training Institute.  Entrepreneurship Development Institute of India  Institute for Rural Management and Adminstration  National Institute for Entrepreneurship and Small Business Development (NIESBUD)  National Alliance of young entrepreneurs (NAYA)  Maharashtra Centre for Entrepreneurship Development (MCED) 12 CU IDOL SELF LEARNING MATERIAL (SLM)

Government plays an awfully vital part in creating entrepreneurship. Government create industries in rural and backward regions by giving different offices with the objective of equalizations regional development. The government set programmes to assist business people within the field of technique, finance, market and entrepreneurial improvement so that they help to quicken and embrace the changes in mechanical development. Various educate were set up by the central and state governments in order to fulfill this objective. A. Institutions set up by Central Government 1. Small industries development organization (SIDO) SIDO was built up in October 1973 presently beneath Ministry of Trade, Industry and Marketing. SIDO is an summit body at Central level for defining arrangement for the development of Little Scale Industries within the country, headed by the Extra Secretary & Development Commissioner (Small Scale Industries)under Service of Little Scale Industries Govt. of India. SIDO is playing a really helpful part for strengthening this vital segment, which has proved to be one of the solid columns of the economy of the nation. SIDO moreover gives expanded bolster through Comprehensive arrange for promotion of rural entrepreneurship. 2. Management development Institute (MDI) MDI is found at Gurgaon (Haryana).It was set up in 1973 and is supported by Industrial Finance Corporation Of India, with targets of moving forward administrative viability within the industry. It conducts management development programs in different fields. In moreover incorporates the programmes for the officers of IAS, IES, BHEL, ONGC and numerous other driving PSU’s. 3. Entrepreneurship development institute of India (EDI) Entrepreneurship Development Institute of India (EDI), an autonomous and not-for-profit established, set up in 1983, is sponsored by summit financial institutions – the IDBI Bank Ltd., IFCI Ltd., ICICI Bank Ltd. and the State Bank of India (SBI). EDI has made a difference set up twelve state-level elite entrepreneurship advancement centres and organizing. One of the fulfilling achievements, be that as it may, was taking business to an expansive number of schools, colleges, science and technology teach and administration schools in a few states by counting entrepreneurship inputs in their educational program. In the universal field, endeavours to create business by way of sharing assets and organizing preparing programs, have made a difference EDI gain honours and bolster from the World Bank, Commonwealth Secretariat, UNIDO, ILO, British Council, Portage Establishment, European Union, ASEAN Secretariat and a few other eminent organizations. EDI has too set 13 CU IDOL SELF LEARNING MATERIAL (SLM)

up Enterprise Improvement Middle at Cambodia, Lao PDR, Myanmar and Vietnam and is in the process of setting up such centres at Uzbekistan and five African countries. 4. All India Small Scale Industries Board(AISSIB) The Small Scale Industries Board (SSI Board) is the apex advisory body constituted to render advice to the Government on all issues pertaining to the small scale sector. It determines the policies and programmes for the development of small industries with a Central Government Minister as its president and the representatives of various organization i.e. Central Government, State Government, National Small Industries Corporations, State Financial Corporation, Reserve Bank of India, State Bank of India, Indian Small Industries Board, on- government members such as Public Service Commission, Trade and Industries Members. 5. National Institution of Entrepreneurship and Small Business Development (NIESBUD), New Delhi It was established in 1983 by the Government of India. It is an apex body to supervise the activities of various agencies in the entrepreneurial development programmes. It is a society under Government of India Society Act of 1860.The major activities of institute are: I) to make powerful procedures and techniques ii) To normalize model schedule for preparing iii) To foster preparing aids,tools and manuals iv) To lead workshops, seminars and gatherings. v) To assess the advantages of EDPs and advance the cycle of Entrepreneurial Development. vi) To assist with supporting government and different offices in executing business visionary advancement programs. vii) To attempt innovative work in the field of EDPs. 6. National Institute of Small Industries Extension Training It was set up in 1960 with its base camp at Hyderabad. The principle goals of public Institute of Small Industries Extension Training are: I) Directing and Coordinating schedules for preparing of little Entrepreneurs. ii) Advising administrative and specialized angles. iii) Organizing workshops for Entrepreneurs and managers. 14 CU IDOL SELF LEARNING MATERIAL (SLM)

iv) Providing administrations in regards to research and documentation. 7. National Small Industries Corporation Ltd. (NSIC) The NSIC was set up in 1995 by the Central Government with the target of helping the little ventures in the Government buy programmes. The organization gives an immense market to the results of little businesses through its advertising network. It additionally helps the little units in sending out their items in far off nations. 1.6 FUTURE OF ENTREPRENEURSHIP Consistently, thousands more choose to go out on a limb and dispatch their own business. This is a reality that accompanies the two positives and negatives to consider – one the one hand, it demonstrates that turning into a business person is a more open vocation way than it at any point has been previously, yet then again, it turns out to be progressively difficult to make far and wide acknowledgment and progress inside exceptionally immersed markets. Luckily, it simply comes down to having the right information to get your business where you need it to be. Most importantly, think about the progressions in computerized patterns. Consistently, we are seeing new web-based media applications and destinations showing up, or new highlights being added by existing locales, which change the way that our intended interest group communicates with the web and the promotions that they are shown while on the web. It is profoundly significant that you watch out for the manner in which your intended interest group acts on the web and how they respond to the world's quick social changes, as both these things impact their purchaser decisions. Recollect likewise to consider the developing craving of shoppers to go through their cash in manners which are ethically and morally valuable, which straightforwardly adds to the accomplishment of social ventures. While proprietors of direction driven organizations may miss out on a level of their benefits from the outset, the allure of social ventures to buyers will decidedly impact their image achievement over the long haul. At last, in case there is a plan of action to watch out for in the 21st century, it's the stage model. We live during a time where everybody can be associated for a wide range of reasons, and stage organizations have utilized this for their potential benefit with extraordinary achievement, particularly inside the most recent ten years. Overall, there has never been a better time to set up your own business, as long as you can keep up with the trends and stand out among the rest. You could be the entrepreneur behind the next global cultural phenomenon. 15 CU IDOL SELF LEARNING MATERIAL (SLM)

In general, there has never been a superior chance to set up your own business, as long as you can stay aware of the patterns and stand apart among the rest. You could be the business visionary behind the following worldwide social wonder. 1.7 SUMMARY Business is the act of framing another business or business venture, ordinarily in an industry or area of the economy with an enormous limit with respect to development. Business venture is by and large inseparable from genius, inventiveness, and the capacity to face determined challenges to present another, untested item or administration into the commercial center. These characteristics are frequently alluded to aggregately as the \"innovative soul.\" Entrepreneurship is driven by the business person, an individual who dispatches and manages the tasks of another undertaking. The business visionary is by and large independently employed, self-inspired, and driven and will take risks to meet their objectives. Not at all like the industrialist, a finance manager who for the most part restricts their job to financing business adventures, the business visionary is the main thrust behind the development of another business and states a lot of authority over the key administration choices. Numerous business people additionally accept accountability for recruiting and overseeing workers. Effective business people will in general be exceptionally gifted at getting sorted out and propelling their workers. 1.8 KEYWORD  Entrepreneur: A person who organizes, operates, and assumes the risk for a business venture.  Entrepreneurship: Entrepreneurship is the process of business creation, from ideation and design through to execution and managing it. A person who starts their own business is called an entrepreneur, and they can be described as entrepreneurial.  Enterprise: Enterprise has two meanings. Firstly, it is another term for a business. Secondly, the term describes an individual who takes the initiative and risk to set up a business.  Entrepreneurial: The adjective form of 'entrepreneur' referring to a person who takes a financial risk in hope of making profit.  Intrapreneurship: Intrapreneurship is where someone displays the traits and characteristics of entrepreneurship while within and being part of a larger company. 1.9 LEARNING ACTIVITY 1. Why is entrepreneurship regarded as a creative activity? 16 CU IDOL SELF LEARNING MATERIAL (SLM)

___________________________________________________________________________ ___________________________________________________________________________ 2. Define Entrepreneurship? Discuss its characteristics and importance? ___________________________________________________________________________ ___________________________________________________________________________ 1.10 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What is the importance of entrepreneurship for an economy? 2. How will you classify entrepreneurship? 3. What are the causes for slow growth of Entrepreneurship in India? 4. Write a short note on DIC (District industries Centre) 5. State a short note on Entrepreneurship development institute of India Long Questions 1. State difference between entrepreneur and entrepreneurship 2. Write some suggestions for the development of Entrepreneurship in India? 3. Write a short note on RIICO & DICs in the development of Entrepreneurship? 4. Discuss the history of entrepreneurship development 5. Describes the agencies in entrepreneurship management 6. Describe the future of entrepreneurship B. Multiple Choice Questions 1. Which of the following inputs is NOT involved in entrepreneurship? a. External locus of control b. Proactive individual(s) c. Opportunity 17 CU IDOL SELF LEARNING MATERIAL (SLM)

d. Risk 2. Entrepreneurship is a creative activity – Said by: a. Joseph b. B. Higgins c. B. F. Hoselitz d. Frederick Harbison 3. The entrepreneur distinguished themselves from capital provider in __________________ a. Middle Ages b. 17th Century c. 18th Century d. 19th Century 4. Importance of Entrepreneurship includes ________________ 18 a. Risk bearing b. Innovation & Profit potential c. All of these d. Economic & dynamic activity 5. A Pre-entrepreneur is… a. Involved in welfare-based entrepreneurship for profit maximization only b. Involved in welfare-based entrepreneurship c. Involved where profit maximization is less important than the collective CU IDOL SELF LEARNING MATERIAL (SLM)

d. Involved in welfare-based entrepreneurship where profit maximization is less important than the collective Answers 1-a, 2-a, 3-c. 4-c, 5-d 1.11 REFERENCES References book  Entrepreneurship: Hisrich, Robert. Michael Peters and Dean Shepherd, Mathew. Tata McGraw-Hill Education, New Delhi 2017.  Entrepreneurship Development: Sangeeta Sharma, PHI, 2017.  Innovation and Entrepreneurship: Peter Drucker, Harper Collins India, 2015.  Entrepreneurship Development and Small Enterprise: Poornima M, Pearson Education, 2014. Textbook references  Entrepreneurship Development: Gordon E and Natarajan K, Himalaya Publishing House, 5th Edition, 2014.  Entrepreneurship A South Asian Perspective: T V Rao, Donald F. Kuratko, Cengage, 1st Edition, 2012.  The Innovators by Walter Isaacson.  Modern Monopolies by Alex Moazed and Nicholas L. Johnson @109.10 Website  www. Yourarticlelibrabry.com  www. Managementstudyguide.com 19 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 2THE ENTREPRENEUR STRUCTURE 2.0 Learning Objectives 2.1 Introduction 2.2 Meaning of entrepreneur 2.3 The skills required to be an entrepreneur 2.4 The entrepreneurial decision process 2.5 Role models, mentors and support system 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:  Describe the meaning of entrepreneurship  Identify the skills required to be an entrepreneur  State the entrepreneurial decision process  List role models, mentors and support system 2.1 INTRODUCTION An entrepreneur is somebody who fosters an endeavour around a development. They deal with the business and expect the danger for its prosperity. 20 CU IDOL SELF LEARNING MATERIAL (SLM)

The meaning of an entrepreneur isn't unchangeable. To more readily get what an entrepreneur is, get familiar with the various kinds of business people, what they do, and attributes you're probably going to perceive among them. The word entrepreneur has its starting point in the French language. A business visionary is one who coordinates, oversees and accepts the dangers of an endeavour. Venture is an endeavour, particularly one which includes least four components (for example land, work, capital and business visionary) of creation as demonstrated underneath. A business person pictures a business, takes intense choices to set up endeavor/venture; Coordinates the different components of creation and gives it a beginning. So it implies the ability to face challenge and advancement in endeavour a financial action. Entrepreneurs are the proprietors of the business/endeavor who contribute/contribute the capital and bear the danger of vulnerabilities during business life. 2.2 MEANING OF ENTREPRENEUR The entrepreneur starts, arranges, oversees and controls the issues of a specialty unit. He is in the focal point of mechanical creation framework. He is the proprietor of the specialty unit and works with the benefit rationale. The expansion of benefit relies upon numerous elements, like the capital yield, nature of the item, request of the item and the inward administration. Yet, over all it requires enterprising expertise in the maker. Kilby inspected different hypotheses of business and called the exertion of getting business venture \"chasing the Heffalump\" (Heffalump is a huge creature which, in spite of astute gadgets, couldn't be caught). In like manner, there has consistently been an ineffective quest for wellspring of dynamic entrepreneurial execution. Kilby has assessed speculations of business and recommended a few standards on which a few snares might be planned. Be that as it may, the word reference importance of the term 'Entrepreneur' is \"the individual, who coordinates, oversees and expects the dangers of a business\". Initially, the term 'entrepreneur' in the French language was utilized to allude to an individual occupied with a main military activity. Cantillon was maybe quick to utilize this idea. As indicated by him, the quintessence of the capacity of a business visionary was to bear vulnerability. Entrepreneur is an individual who purchases factor administrations at specific costs and sells them at dubious costs in future. In the late eighteenth century, Nicolous Bandeau considered the agrarian cultivator a business person and acknowledged him for the fundamental characteristics of hazard taking and advancement. 21 CU IDOL SELF LEARNING MATERIAL (SLM)

J.B. Say underscored the job of Entrepreneur in uniting the components of creation and in facing the challenge engaged with the administration of creation. He ascribes a phenomenal knowledge and imagination to the Entrepreneur. By a wide margin, the most efficient meaning of business was given by Joseph Schumpeter, which was later on advanced by his devotee A.H. Cole. Schumpeter composes that the Entrepreneur is an 'trend-setter' who is described by possibilities of doing new things or getting things done in another manner. He is a monetary pioneer with atavistic determination and sets a 'innovative reaction' to a circumstance and goes about as a boss favorable factor during the time spent financial turn of events. Cole characterizes entrepreneurship as a coordinated succession of activities taken by an individual or a gathering working for singular specialty units in a world portrayed by an enormous proportion of vulnerability. G.H. Evans says that Entrepreneurs are people who start, coordinate and control the undertakings of specialty units that consolidate elements of creation to supply labor and products, regardless of whether the entrepreneurship relates to industry, exchange or calling. In this manner, the normal focuses that all meanings of entrepreneurship have are that it implies an adequate volume of hazard and experience in the business venture under examination, bears extreme authority of taking choices and planning strategies in regards to the enterprise. Development alludes to the groundbreaking thought, which is applied for monetary purposes, either for bringing out new items or new mix of the variables of creation during the time spent creation. The Entrepreneur are trend-setters since they consider new items and strategies and go ahead to utilize them. Fritz Redlich likewise followed the advancement proposition of Schumpeter. However, the advancement theory has now gotten hopeful in character as the majority of the Entrepreneur at the ground level are not pioneers but rather just imitators or fabians. Yale Brozen, following the wording of Clerence Danhof, referenced four sorts of business people: 1. Innovating entrepreneurs: They make forceful amassing of data and have limit with regards to putting an appealing blend of elements of creation. 2. Imitative entrepreneurs: They have status to receive fruitful advancements utilized by the principal bunch. 22 CU IDOL SELF LEARNING MATERIAL (SLM)

3. Fabian entrepreneurs: They are described by alert and incredulity however mirror on the off chance that they feel that the inability to do as such would cause a decrease in the overall situation of the enterprise. 4. Drone entrepreneurs: They are described by refusal to roll out any improvement even at the expense of decreased returns in contrast with others. Mechanical headway, as indicated by Brozen, is conceivable where inventive and imitative kinds of business people are intensely provided. The languor of the last two sorts will baffle the endeavor to propel innovation quickly. This is more genuine especially on account of less created nations. Redlich himself discover the entrepreneurs of Indian subcontinent to be just imitators and cautions them against simple duplicate and duplication of the American sort as it would yield sudden and hindering outcomes. There would scarcely be a business leaders in the Asian and African nations who is a trailblazer in the genuine Schumpeterian sense and maybe none is sufficiently visionary to strike out for a beforehand neglected area. All are imitators and connectors of encounters acquired in the financially further developed nations keeping in see the current states of their own. The innovation they apply is normally acquired from abroad, the lawful stamping rehearses they utilize are variations of those created in cutting edge nations and frequently the products they produce and sell are chosen in view of the activity of 'show impact' through which utilization of the further developed nations becomes promoted and enters the overall interest in developing nations. Subrahmanya, notwithstanding, discovers entrepreneurs of England more imaginative, at all, than their partners in India. Evans likewise dismisses development as a fundamental measure and characterizes business person as \"the individual or a gathering of people in a firm whose capacity is to decide the sort of business that will be directed\". The business person needs to take choices with respect to: (a) the sorts of labor and products to be advertised, (b) the worth of these labor and products, and (c) the customers to be served. 23 CU IDOL SELF LEARNING MATERIAL (SLM)

It should be borne as a main priority that the association that has progressed among industry and logical lab at this point and the developing assortment of market and industry-related examination organizations has decreased the innovational requirements with respect to entrepreneurs. Labs and statistical surveying establishments enhance and investigate for business visionaries just to utilize them in their undertakings. The entrepreneurs presently is to be portrayed as having a character framed of solid will to accomplish, fortitude and status to use assets to the best of capacity, capacity to arrange and deal with the working of big business and capacity to face challenge. The entrepreneurs, be that as it may, is basically worried about little and medium mechanical units. Coleman stresses this view and depends business people with the duty of persistently receiving too little changes on the lookout, both for components and items. Little endeavor in India is characterized as far as beginning speculation limit in plant and hardware and the breaking point is Rs. 10 million. Indian entrepreneurs, in the vast majority of the cases, are not close as far as possible. The greater part of mechanical units are little as far as both size and turnover and work for enormous modern endeavors. The vast majority of the business people here are simple imitators. They don't set out to complete revolutionary changes in undertakings. The outer variables, especially market rivalry and client needs, were the significant spurring factors for limited scope business people to take part in advancements. Remarkable Features of Entrepreneurs: The entrepreneurs' inspiration for innovative movement lies in their exceptional desire for self-acknowledgment. Coming up next are a portion of the significant qualities of an entrepreneur: (I) High requirement for accomplishment (ii) Acquisitiveness (iii) Self-certainty and independent character (iv) Non-closed minded and non-traditionalist character (v) Aggressiveness and hazard bearing capacity (vi) Rationality and sober mindedness 24 CU IDOL SELF LEARNING MATERIAL (SLM)

(vii) Creative and specialized psyche (viii) Adaptability (ix) Managerial expertise and initiative characteristics (x) Administrative capacity (xi) Sound dynamic capacity (xii) High close to home viability (xiii) High obligation to the errand 2.3 THE SKILLS REQUIRED TO BE AN ENTREPRENEUR Regularly, business people may take up a few jobs to fabricate and grow a business. This requires an assortment of range of abilities. Here are a couple of instances of business visionary abilities you should create and dominate: Business management abilities Business management abilities are qualities a entrepreneurs should need to maintain a business and guarantee all business objectives are met. Entrepreneurs with this range of abilities can direct and oversee activities of various offices since they have a decent comprehension of each capacity. Business the board abilities incorporate performing various tasks, assigning obligations and settling on basic business choices. Communication and active listening abilities Each entrepreneur should have the option to discuss viably with customers, colleagues and any remaining partners. Regardless of whether through verbal communication during gatherings or sending reports and messages through messages about the task, entrepreneurs require predominant composed and verbal communication. Aside from relational abilities, business people should be great audience members to comprehend the task's necessity and conversation during project gatherings. Risk taking abilities Having the option to face determined and wise challenges is one of the fundamental entrepreneurs abilities to acquire. Workers with a entrepreneurs mentality never avoid facing challenges since they comprehend that determined dangers bring about enormous achievement. They realize that hazard is a chance to learn and grow a business to a higher level. Bosses need applicants who can face challenges in quest for possible gains and benefit. 25 CU IDOL SELF LEARNING MATERIAL (SLM)

Networking abilities Networking includes assembling and overseeing relationship with different experts to develop and advance a business. Compelling networking abilities open up future freedoms and assist with building a strong brand. networking permits business visionaries to meet similar experts, develop future groups and stay to-date with industry patterns. It is perhaps the best abilities for business people in light of the fact that, through a strong organization, they can meet experts to support their thoughts, access proficient business aptitude and get input on their new pursuit or thought. Basic reasoning abilities Basic reasoning is a entrepreneurs ability that dispassionately investigations the data and reaches a level-headed determination. It assists entrepreneurs with surveying a circumstance and think of a coherent arrangement. Bosses search for competitors with basic reasoning since it tackles issues and fabricate procedures for business development. Normally, a basic scholar is free, capable and intelligent. This expertise assists entrepreneurs with interfacing thoughts, examine data, assess contentions, discover irregularities in work and tackle complex issues. Rather than remembering data, such up-and-comers utilize the data to find significant bits of knowledge. Critical thinking abilities Frequently, business people face testing and unforeseen circumstances. It very well may be an investor declining further financing or a colleague declining to function according to the venture rules; a business person should have magnificent critical thinking abilities to deal with distressing circumstances and smoothly distinguish substitute arrangements. Extraordinary critical thinking abilities guarantee they arrive at their business objective. Creative thinking abilities Creativity is an important yet overlooked ability in the computerized world. Inventive reasoning is the spine for development and it powers workers to think in an unexpected way. Business people with inventive reasoning abilities are never reluctant to attempt arrangements that others may ignore due to dread of disappointment. Such individuals think out-about the-crate and consistently look for contribution from experts in an alternate field for understanding another viewpoint. It is quite possibly the most pursued entrepreneurs abilities since it permits them to see designs (in any event, when there are no examples) and foster imaginative approaches to tackle business issues. Customer service abilities 26 CU IDOL SELF LEARNING MATERIAL (SLM)

Quality client care advances the brand and builds dependability. Despite the business, superb client assistance abilities are fundamental for business achievement. From conversing with customers to talking about subsidizing openings, client assistance abilities assist business people with associating their possible clients. Financial Skills The capacity to deal with assets, evaluate speculations, compute ROI is an absolute necessity for business people. Aside from this, they should realize how to utilize bookkeeping and planning programming to monitor every one of the monetary cycles. By acquiring monetary abilities, business people abstain from overspending and ideally designate assets. Leadership abilities Having the option to move partners, enable the labour force and lead from the front requires great initiative abilities. Commendable pioneers lead by models and can play an influential position and work as a piece of a group. Business visionaries with authority abilities persuade their representatives, oversee activities and agent undertakings to arrive at the business objective. Time management and organisational skills Powerful time usage expands usefulness and puts together your workspace. Entrepreneurs with using time productively and hierarchical abilities comprehend distinctive approaches to focus on errands and stay away from tarrying. For guaranteeing opportune fulfillment of ventures, Entrepreneurs examine their and their group's time, put forth timetable for each assignment, complete need undertakings first, delegate work to other people, make a plan for the day and use innovation to keep the workspace coordinated. Technical abilities Technical abilities are hard abilities that are acquired by utilizing advanced devices and programming. Entrepreneurs should realize how to utilize arranging, promoting and planning programming. Information on programming helps in overseeing projects, following deals and designating a practical spending plan for the venture. 2.4 THE ENTREPRENEURIAL DECISION PROCESS Just a traveller has to pass through a road from starting point to reach to his/her destination point; an individual also needs to pass through a process from present status to become an entrepreneur. In other words, the individual / entrepreneur has to take a number of decisions in sequential order, call it the entrepreneurial decision process, to leave the present status and become an entrepreneur. 27 CU IDOL SELF LEARNING MATERIAL (SLM)

Following is an illustrative decision process individual’s follow to become entrepreneurs: The Enterpreneurial Decision Process Let us discuss these one by one: The Present Status: There is an apt saying: “Change is the law of nature and change is the only permanent thing in this world” Yet, change is often resisted because it involves uncertainty which causes fear. It is due to uncertainty, the present state of affair is considered better than the unknown one after the change. As such, leaving the present status and becoming an entrepreneur (i.e., a synonym of risk and uncertainty) is not easy as it takes a great deal of preparation and courage to do so. Nonetheless, individuals dare it and become entrepreneurs. Broadly, there are two reasons for individuals to become entrepreneurs: (i) By chance, and (ii) By compulsion. As regards choice, individuals working in marketing area become familiar with market and gain experience and, in turn, they decide to start their own business in that market. Sales representatives working in publishing companies generally start their own publishing business and present such example of becoming entrepreneurs by choice. On the other hand, disruption in the present job/status due to retirement, lay-off, and other compulsions also compel people to become entrepreneurs. Thus, the idea and decision to become an entrepreneur, i.e. to start one’s own business enterprise occurs when an individual perceives and realizes that establishing a new enterprise is desirable for him / her. Reasons for Changing the Present Status: Entrepreneurship being a difficult journey, the obvious question is: What are the reasons that people still become entrepreneurs? Researchers have tried to understand and answer these questions. The researchers report that people generally become entrepreneurs because of economic reasons. These include unemployment, completion of education, dislocation, no or less possibility for career and / or economic prosperity, etc. Nonetheless, the personal dislocation is reported as one of the most powerful reasons galvanizing an individual’s will to become an entrepreneur. 28 CU IDOL SELF LEARNING MATERIAL (SLM)

This is duly supported by an increase of 12% in number of new business enterprises in the United States during a lay-off period. Completion of one’s education is reported another major reason for becoming an entrepreneur. Desire for Change from the Present Status to Become Entrepreneur: Evidences are available to believe that the desire to start one’s own enterprise and, thus, become an entrepreneur is spawned by some factors like the culture and family one belongs to and the teachers and peers one comes into contact with. Like elsewhere in the world, there are cultures in India also which place a high value on being entrepreneur. For example, Punjabis and Gujaratis in India represent such cultures which value more on making money, becoming one’s own boss, having more individual opportunities for being successful in career and life. It is, therefore, not surprising to find the more number of enterprises formed by the people belonging to the Punjabis and Gujaratis cultures. This is contrary in the Assamese culture which places low value on being self-employed i.e. entrepreneur and high value on being an employee. As such, the rate and number of new enterprise formation is expectedly low in the Assamese culture. Of late, educational institutions and teachers are also found encouraging individuals to regard entrepreneurship as the desirable and viable career. Concerted efforts are made by the educational institutions to design and develop exciting course curriculum on entrepreneurship and enterprise management to mould and stimulate individuals to become entrepreneurs. For example, Central Board of Secondary Education (CBSE), Nagaland Board of School Education (NBSE), Meghalaya Board of Secondary Education (MBOSE), and Council of Higher Secondary Education (CHSE), Odisha has very recently introduced entrepreneurship as an optional subject at their higher secondary level of education. Somuchso, Jammu & Kashmir State Board of School Education (JKBSE) has just introduced entrepreneurship as a compulsory subject in Class 11 and 12. Not only that, the premier national educational institutions likes Universities, Indian Institutes of Management (IIMs), and the Indian Institute of Technologies (IITs), besides teaching the subject entrepreneurship, have even established Centre of Entrepreneurship and Innovation Incubation to stimulate the students to form their own enterprises. Possibilities to Become an Entrepreneur: No doubt, the desire to form an enterprise needs to be present before forming an enterprise, but just desire to form an enterprise cannot make an individual an entrepreneur. Also needed is possibility, better call it supportive and facilitative structure, to form an enterprise. 29 CU IDOL SELF LEARNING MATERIAL (SLM)

Available literature on entrepreneurship indicates that an individual’s business background, educational background, previous experience, government attitude, availability of finance and market and, of course, one’s role models in business world make it possible to form an enterprise. This is precisely the reason why more enterprises are formed by the individuals belonging to business family background. Similarly, it is also no wonder why more enterprises are established in the places with supporting facilities like roads, communication, transportation systems, utilities, economic and political stability, finance, and market. Finally, to have someone else successful in business as one’s role model also makes enterprise formation possible. The reason is the role model develops the feeling of ‘self- efficacy’ in the individual. That is: “If that person can do and succeed, so can I also.” In other words, entrepreneurs are not born, they develop. It is possible to become entrepreneur. 2.5 ROLE MODELS, MENTORS AND SUPPORT SYSTEM There are various elements which go in building fruitful Entrepreneurs, for example, change from present way of life, youth family climate, schooling, individual qualities, age, work history, good examples and emotionally supportive networks, moral encouraging group of people and expert encouraging group of people which goes in building effective business people (Panda, 2001). As per Hisrich, Peters and Shepherd (2004), perhaps the main elements impacting entrepreneur in their vocation decision is the decision of good examples. Good examples can be guardians, siblings or sisters, family members, or fruitful entrepreneur locally. Good examples can likewise serve in a strong limit as tutors during and after the new pursuit is dispatched. Albeit this help is fundamental for the entrepreneur in each period of the new pursuit, it is maybe generally pivotal during the beginning up stage. Subsequently, the business visionary should construct associations and organizations from the get-go in the business advancement measure. Albeit most organizations are not officially coordinated, a casual organization for good and expert help altogether benefits the business visionary. Moral-Support Network The entrepreneurs should build up an ethical encouraging group of people of loved ones. Their companions are unquestionably the greatest allies. Companions, the vital jobs in this organization, can give ideas, exhortation, consolation, comprehension and help. Family members can likewise be wellsprings of good help, particularly in case they are additionally business people. 30 CU IDOL SELF LEARNING MATERIAL (SLM)

Proficient Support Network The entrepreneurs need exhortation and advice which can be gotten from individuals from an expert encouraging group of people, like coaches, business partners, exchange affiliations and individual affiliations. 2.6 SUMMARY  Business is fundamental for the advancement of any economy. Nations which have prospered quality their ascent to the development of enterprise. Consequently, governments and individuals all around the world need to empower this idea. Business venture is a significant motor of development in the economy. In this exercise, you'll find out about what a business person is and the key attributes and abilities that an effective business person has.  As an exemplary definition, the Merriam-Webster word reference offers the accompanying with respect to the attributes of a entrepreneurs: \"One who puts together, oversees, and accepts the dangers of a business or undertaking.\" However, this does little to successfully portray what's really going on with the job.  Despite the fact that business people come in all shapes and measures and from an assortment of foundations, instruction and work chronicles, a large number of the best entrepreneurs share certain individual qualities. It's easily proven wrong regarding whether these characteristics of a business person will guarantee a positive outcome, yet you can acquire something about the expertise set you may require with the goal that you can prevail in your own enterprising interests. 2.7 KEYWORDS  Founder: The name given to the individual who starts a company.  Innovate: The process of introducing change and new ideas  Market Positioning: How a business presents its products/services in relation to its competitors; higher quality, cheaper etc.  Turnover: A business' total sales income for a year.  Venture Capital: Venture capital is financing that investors provide to start-ups and small businesses that are believed to have long-term growth 2.8 LEARNING ACTIVITY 1. Define entrepreneur 31 CU IDOL SELF LEARNING MATERIAL (SLM)

___________________________________________________________________________ ___________________________________________________________________________ 2. Describe the types of entrepreneurs ___________________________________________________________________________ ___________________________________________________________________________ 2.9 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Who is an Entrepreneur? 2. How will you define entrepreneur? 3. Discuss the skills required to be an entrepreneurs 4. Describe the features of entrepreneurs 5. Define ‘Entrepreneurship’. Describe its characteristics. Long Questions 1. ”Entrepreneurs undertake moderate risks”. Elaborate this statement. 2. State the entrepreneurial decision process 3. Describe the role models, mentors and support system 4. Why is it important for entrepreneurs to develop financial plans for their companies? 5. State the factors that affect entrepreneurship. B. Multiple Choice Questions 1. In real life, entrepreneurs are those that… a. Generate business success through hard and long hours of work b. Robbers that exploit their workers and generate business success c. Generate business success d. Robbers that exploit their workers 32 CU IDOL SELF LEARNING MATERIAL (SLM)

2. A Micro entrepreneur is…. 33 a. A formal-sector entrepreneur with zero to 10 employees b. A formal-sector entrepreneur with 1 to 10 employees c. A formal-sector entrepreneur with zero to 15 employees d. A formal-sector entrepreneur with 1 to 15 employees 3. If an entrepreneur has an internal locus of control, this means that he/she: a. Feels comfortable in an unstructured situation. b. Has a high need for achievement. c. Believes fate is a powerful force. d. Believes that success or failure depends on his/her own actions. 4. Entrepreneurs would be best described as risk: a. Managers. b. Loving. c. rewarders. d. Averse. 5. What is the hallmark of a successful entrepreneur? a. Persistence b. Flexibility c. Risk bearing capacity d. Self-confidence CU IDOL SELF LEARNING MATERIAL (SLM)

Answers 1-a, 2-a, 3-d, 4-a, 5-b 2.10REFERENCES References book  Entrepreneurship: Hisrich, Robert. Michael Peters and Dean Shepherd, Mathew. Tata McGraw-Hill Education, New Delhi 2017.  Entrepreneurship Development: Sangeeta Sharma, PHI, 2017.  Innovation and Entrepreneurship: Peter Drucker, Harper Collins India, 2015.  Entrepreneurship Development and Small Enterprise: Poornima M, Pearson Education, 2014 Textbook references  Entrepreneurship Development: Gordon E and Natarajan K, Himalaya Publishing House, 5th Edition, 2014.  Entrepreneurship A South Asian Perspective: T V Rao, Donald F. Kuratko, Cengage, 1st Edition, 2012.  The Innovators by Walter Isaacson.  Modern Monopolies by Alex Moazed and Nicholas L. Johnson @109.10 Website  www. Yourarticlelibrabry.com  www. Managementstudyguide.com 34 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT- 3 BUSINESS OPPORTUNITY IDENTIFICATION STRUCTURE 3.0 Leaning Objectives 3.1 Introduction 3.2 Business ideas 3.3 Methods of generating ideas 3.4 Opportunity recognition 3.5 Summary 3.6 Keyword 3.7 Learning Activity 3.8 Unit End Questions 3.9 References 3.0 LEANING OBJECTIVES After studying this unit, you will be able to:  Describe the meaning of business idea  Discuss methods of generating ideas  State the opportunity recognition 3.1 INTRODUCTION An entrepreneur steps up to the plate and start the business exercises, by investigating and dissecting or Identification of business openings. He likewise bears the connected dangers. The genuine business visionary isn't hazard focused, rather he is opportunity focused. The entrepreneur investigate monetary and business openings and stay prepared to make the most of those chances. An entrepreneur is an individual who anticipates the chance and attempts to investigate it by presenting another item, another strategy for creation, another market, another wellspring of crude material, or another mix of variables of creation. 35 CU IDOL SELF LEARNING MATERIAL (SLM)

Accordingly, as far as Identification of business openings, the business person is an individual who consistently finds changes, responds to that, and takes its benefits, as a chance. Henceforth, the chance of business opportunity in any enterprising endeavor gets grown just when it has the chance of business attainability. For instance, the idea of contest, showcasing procedure, value strategy future costs according to the nature of the item, size of the market, conceivable outcomes of future turn of events and plans for the offer of the item, and so forth In this way, regardless of whether any pioneering adventure is as a business opportunity or not might be distinguished on the premise following two elements. Regardless of whether the interest is in abundance of the accessible existing stock on the lookout or not. A sensible pace of profit from venture, which is equivalent to the overall pace of return and hazard premium, with regards to explicit business openings. Plus, to validate the business openings, it is additionally fundamental that the previously mentioned elements might be plausible from business, monetary, specialized, creation, and administrative proficiency perspective. Objectives of Identification of Business Opportunities As respects the destinations for Identification of business openings, it very well might be said that the business person consistently makes endeavors to set up new enterprises, with his characteristics, similar to creative mind and inventiveness, additionally builds wellsprings of work, delivers new items, creates financial sources by diminishing expenses, item enhancements and advancements. He puts forth attempts to rapidly give material shape to the productive thoughts, by well thinking about the dangers. That, however he additionally gets accomplishment in beginning new enterprises by distinguishing business openings. Along these lines, coming up next are the goals of the Identification of business openings: 1. Identification of chances by a business visionary, with regards to likely enterprises and to choose his own job, the extent of work, and connections, as per the chances. 2. To oversee the conceivable market of the item or administration to be created. 36 CU IDOL SELF LEARNING MATERIAL (SLM)

3. To choose an undeniable level gathering of supervisors, with the goal that innovative endeavors might be begun. 4. To make an appraisal of monetary assets by making monetary conjectures, with regards to the interaction if mechanical turn of events. 5. To investigate the chances for conceivable section in different regions. 6. To survey the prerequisites of work, capital, and materials for the businesses. 7. To discover the conceivable outcomes of present moment and long haul improvement in different spaces of the economy. 8. To have the craving for specialized information, mindfulness towards new freedoms, and acknowledgment of the changes. 9. To see the potential outcomes of redirecting the accessible assets towards accomplishing the business targets. 10. To distinguish those enterprises, which are not founded on nearby sources, yet which might be financially thought of, taking into account future prerequisites. 3.2 BUSINESS IDEAS Thoughts are the way to development. Without them, there isn't a lot to execute and on the grounds that execution is the way to learning, groundbreaking thoughts are vital for making any sort of progress. Clearly thoughts alone will not get development going, as you should have the option to construct a precise cycle for dealing with those thoughts. The place of ideation isn't just about producing huge loads of them however about focusing on the nature of those too. We concur that it can now and then be hard to think of a greater amount of those top notch thoughts. It's not strange to stall out in our old propensities and schedules when we should make something new. To break out of that groove, we've chosen to investigate thought age all in all just as to present a portion of our number one hints, devices and strategies that can be utilized to create groundbreaking thoughts all the more methodicallly. Thought age is the innovative cycle of creating new techniques to tackle issues and work on the item's conditions or the actual organization. It is without a doubt dependent on factors like thought improvement, bunch conversations, picking the best other option, lastly, executing 37 CU IDOL SELF LEARNING MATERIAL (SLM)

the thought in certifiable situations. The thought shouldn't be useful, and it can likewise be a simple idea. While working a business, a ton of numerous things influence its appropriate working. Appropriate arranging, putting together, coordinating, and controlling are to be never really out the work viably and productively. After every one of these, novel thoughts and compelling conceptualizing are to be done to acquire a lot higher benefits. Thus, to sort out what is should have been finished? How it is to be done, what ways will help in producing higher income is viewed. While some of the time individuals like to work the business with the past techniques, or some accept business is the steadily changing and dynamic one, they make new arrangements, and thoughts are added to improve the potential. Since thoughts are developments that should be possible to change the potential from high to low, when a groundbreaking thought or insight is added to a business, it tends to be seen that it effectly affects the business. Thought age is something that is done to conquer the difficulties in the organization or the business. Thoughts are produced dependent on innovativeness, and the need of the business is viewed. It normally requires numerous individuals, their criticism, and their imaginative thoughts. Then, at that point the determination of the best of the thoughts is then made. The creation of plans then, at that point happens so the shortlisted thought gets executed. Thusly, an imaginative and new thought will be an edge over the contenders. Why is Idea Generation important? At any point considered what the way to development is. The exceptionally key to development is Ideas. Groundbreaking thoughts help in advancing the current circumstances according to the future necessities or prerequisites. These thoughts additionally give an understanding into potential arrangements, may give an answer for an issue prompting new freedoms. What's more, it is finished by a gathering of chiefs, business people, or businesspersons. 3.3 METHODS OF GENERATING IDEAS What is idea generation and why it's significant? Thought age is portrayed as the way toward making, creating and conveying dynamic, concrete or visual thoughts. 38 CU IDOL SELF LEARNING MATERIAL (SLM)

It's the front end part of the thought the board pipe and it centers around thinking of potential answers for apparent or real issues and openings. As referenced, thoughts are the initial move towards making improvement. Us gaining ground as individual people relies upon groundbreaking thoughts. According to the point of view of an individual, novel thoughts can assist you with pushing ahead on the off chance that you feel stayed with an errand or can't take care of a specific issue. Maybe you're searching for better approaches to defeated an innovative square or you're after a superior answer for your concern? Perhaps you need novel thoughts with the goal that you can completely investigate another chance? With regards to your association, producing and gathering novel thoughts from your workers is the most ideal approach to reveal innovative, implicit information. The capacity to make and foster groundbreaking thoughts permits you to: • Stay significant • Make positive change occur in your association Maybe your authoritative objective is to work on your and your group's productivity or you need novel thoughts for improving your item? Notwithstanding your objectives or the kinds of thoughts you're searching for, the reason for groundbreaking thoughts is to further develop the manner in which you work. For a bigger scope, economies rely upon development to drive development and increment prosperity. Development makes new advances and organizations, which give new positions to individuals. Thus, in spite of the fact that development isn't about thoughts alone, they are a significant piece of the condition as there wouldn't be one without the other. Strategies for Idea Generation The chances are that you'd run a meeting to generate new ideas. It has, in any case, been shown that conceptualizing not just requires some investment and prompts less thoughts, yet in addition more terrible thoughts than if similar members had quite recently attempted to think of thoughts without help from anyone else. 39 CU IDOL SELF LEARNING MATERIAL (SLM)

There are a few different reasons why conceptualizing may not be the most ideal approach to think of thoughts. Booking, arranging and archiving the meeting in a usable organization will all occupy significantly additional time. In spite of the fact that there are sure approaches to further develop conceptualizing execution, it's past the point. The fact of the matter is that you shouldn't naturally default to conceptualizing. There are, in any case, some other helpful strategies that may merit offering a chance to challenge traditional reasoning. Since you will require various thoughts, it's nice to have a couple of strategies as a main priority for producing them. A large portion of these ideation strategies can be utilized for more successful conceptualizing yet in addition for other kind of ideation. Thought Challenge Thought challenge is an engaged type of advancement where you raise an issue or opportunity with the expectations of thinking of imaginative arrangements. The mark of thought challenge is to take an interest in ideation and produce thoughts around a pre-characterized subject for a restricted timeframe. It permits you to frame a particular inquiry and direct that inquiry at a particular crowd to get groundbreaking thoughts and interesting expeences. Prior to setting up a thought challenge, characterize what you need to achieve with it. Since there are two sorts of thought difficulties, issue driven and arrangement driven methodologies, you should initially explain whether you're hoping to distinguish difficulties or foster potential arrangements for them. Fig 3.1 Thought Challenge 40 CU IDOL SELF LEARNING MATERIAL (SLM)

While putting together a thought challenge, there are various boundaries that you can decide to accomplish the results you're searching for, like topic, crowd, duties, time, or channels. Remember that thought challenge is the best method when you need to create bunches of groundbreaking thoughts. It may not be the best method to produce thoughts on the off chance that you just include a couple of specialists in your ideation cycle as it's demonstrated to be more valuable for connecting enormous crowds. In spite of the fact that thought challenge empowers you to assemble loads of thoughts quick, cautious arranging sets aside time and probably won't merit the exertion in case there are no assets to execute it appropriately. Likewise, right planning is essential for it to succeed. We've composed an extensive manual for thought difficulties you can peruse by clicking beneath. Rush Technique The SCAMPER strategy is made by Bob Eberle, and is a technique utilized for critical thinking and innovative reasoning. It's an all encompassing method of applying basic speculation to change thoughts, ideas or cycles that as of now exist. The reason for the SCAMPER is to make acclimations to certain pieces of the current thought or interaction to arrive at the best arrangement. It comprises of seven activities that can be utilized to supplant parts all the while: 41 CU IDOL SELF LEARNING MATERIAL (SLM)

Fig 3.2 Rush Technique 1. Substitute – Substitution procedure alludes to supplanting a piece of your item, idea or interaction with another to accomplish far superior result. 2. Combine – The join strategy investigates the likelihood to consolidate two thoughts into a solitary, more powerful arrangement. 3. Adapt – Adaptation examinations the potential outcomes to make the cycle more adaptable and spotlights on other comparable steady upgrades to the thought, interaction, or idea. 4. Modify – Modifying the thought takes a gander at the issue or opportunity according to a greater viewpoint and targets working on the general outcomes, not simply the thought. 5. Put to another use – This methodology centers around discovering approaches to utilize the thought or existing answer for another reason and investigations the potential advantages whenever applied to different pieces of the business. 6. Eliminate – The disposal strategy is very clear: it analyzes the potential results on the off chance that at least one pieces of the idea were wiped out. 7. Reverse – This activity centers around switching the request for exchangeable components of a thought. 42 CU IDOL SELF LEARNING MATERIAL (SLM)

Albeit the SCAMPER procedure was initially intended for meetings to generate new ideas, it tends to be applied to your own points of view too. Regularly, individuals will in general zero in on tracking down the following huge thought. While producing groundbreaking thoughts, it is not difficult to fail to remember that the persistent gradual enhancements are the ones that truly have an effect over the long haul. At the point when you make ideation a consistent practice, you'll have a decent opportunity to win that enormous thought through various little ones. At times, all it might take is to have seen what you've effectively got. Utilizing your current thoughts or cycles as a beginning stage can uncover a ton about your present circumstance, which is what's going on with the Scamper strategy. Inverse Thinking Inverse/switch believing is a procedure that can help you question since quite a while ago held suspicions identified with your business. It's a helpful device to consider on the off chance that you feel your group is left with the regular mentality and concocting those \"out- of-the-container thoughts\" is by all accounts troublesome. Frequently, tracking down the best arrangements aren't found through a straight manner of thinking. In spite of the fact that our cerebrums are wired that way, inverse reasoning can help us question the standard. With this kind of reasoning, you consider the specific inverse of what's typical. You can even think in reverse to discover flighty arrangements. Conceptualize Cards Conceptualize cards are a helpful instrument made by the Board of Innovation for concocting many novel thoughts identified with whatever challenge or issue you are at present working with. Conceptualize cards assist you with considering outer factors, for example, cultural patterns, new innovations, and guideline with regards to your business. This methodology permits you to produce an incredible number of thoughts with little exertion. Albeit large numbers of the thoughts will not bode well, this apparatus can in any case be extremely gainful for getting you out of the trench in case you're experiencing an inventive square. Analogy Thinking 43 CU IDOL SELF LEARNING MATERIAL (SLM)

Similarity believing is a procedure for utilizing data from one source to take care of an issue in another unique situation. Regularly one answer for an issue or opportunity can be utilized to tackle another issue. Similarity thinking can, for instance, be utilized for breaking down a fruitful business, distinguishing what makes it extraordinary, and afterward applying those equivalent standards for your business. This is an easy technique for concocting novel thoughts that are pre-approved. You've likely known about the endless new businesses that are the \"Uber for [insert industry here]\". This is actually the technique all of those organizations has utilized. Nonetheless, albeit this is a simple and instinctive apparatus to utilize, the undeniable mixes are probably going to be exceptionally serious. The previously mentioned methods are a portion of our top picks for creating thoughts yet certainly not by any means the only ones out there. The ones that work for you can be found by testing various alternatives. Managing ideas In spite of the fact that creating thoughts is regularly the simple aspect of development, gathering and overseeing them can be trying without a legitimate apparatus. Since individuals frequently think of novel thoughts without further ado, they ought to be capable gather these thoughts right when they emerge. Numerous individuals utilize computerized or actual scratch pad to record their thoughts in a hurry. This strategy functions admirably when you simply need to make notes for your own utilization. Nonetheless, when you need to impart that data to other people and request criticism for additional improvement, this isn't the best way. On the off chance that you need to affect more individuals in your ideation cycle, you should consider a devoted thought the board apparatus to ensure the entirety of the potential thoughts are gathered in one spot. Idea Management tool As thought the board is a particularly tremendous theme and bigger organizations are continually going to have a large number of thoughts, utilizing a committed thought the executives device frequently bodes well for most organizations. 44 CU IDOL SELF LEARNING MATERIAL (SLM)

A thought the executives instrument fills in as the foundation of your thought the board interaction. It's the place where you'll gather the thoughts, examine them, assess and focus on them, and monitor their advancement, just as the essential course of your ideation exercises. Overseeing thoughts by means of a devoted apparatus is just pretty much as successful as the fundamental interaction behind it. To make ideation a persistent propensity, you should assemble an interaction that makes producing and refining groundbreaking thoughts simple. Too perplexing cycles will just disappoint clients, so don't attempt to make it excessively convoluted. In case you're keen on adding more about what to consider when picking the right development the executives instrument for you, you can peruse our past article about the subject. Succeeding with Idea Generation Prior to connecting more individuals to utilize these devices and strategies for creating more thoughts, there are a couple of more tips that can assist you with getting of your ideation techniques. • Define the issue or opportunity Albeit this appears glaringly evident, the more precisely you're ready to depict your current or saw issue or opportunity, the better possibilities you have of really producing helpful thoughts. Before you start, attempt to assemble however much data about the issue as could reasonably be expected to get to the core of the issue. Recognize what you definitely think about it and what data is as yet required. • Involve the correct individuals For your ideation to be just about as useful as could be expected, affect the ideal individuals to the interaction. Draw in those individuals who think about the subject and are really keen on rolling out an improvement in your association. On the off chance that you will likely connect with a bigger gathering of individuals to produce thoughts, ensure your crowd is pertinent and very much educated regarding the matter. • Set constraints 45 CU IDOL SELF LEARNING MATERIAL (SLM)

Imparting that any thought is a smart thought may thwart inventiveness, so ensure your objectives are aggressive and explicit enough. One approach to get a greater amount of really inventive thoughts from your crowd is to set limitations. On the off chance that your overall objective was to decrease costs, almost certainly, individuals would propose thoughts like saving on office hardware or purchasing less expensive espresso. Notwithstanding, the thoughts you'll get will be a great deal extraordinary on the off chance that you'd inquire: \"How could we deal with save 70% on costs?\". Without imperatives, individuals normally think of little ideas for development with almost no imagination. However, while portraying the test in more detail and laying out more driven objectives, individuals truly need to utilize their creative mind to accomplish an ideal result. 3.4 OPPORTUNITY RECOGNITION Opportunity acknowledgment implies proactively conceptualizing another undertaking or development thought. An entrepreneur ordinarily participates in a promising circumstance acknowledgment at where he understands he has a thought, strength or capacity that matches well with a specific objective market. Innovative entrepreneurs continually look for new income streams. Those that take advantage of ready lucky breaks will in general perform best monetarily. Opportunities Are a Necessity For long haul reasonability and achievement, an organization needs some capacity to perceive openings. Enterprises generally develop dependent on cultural changes, client inclination changes or mechanical advances. The most creative organization pioneers who take advantage of lucky breaks stay in front of the opposition in conveying reformist answers for clients. Steve Jobs perceived the gigantic chance to make Apple a state of the art trailblazer in portable innovation. Amazon.com organizer Jeff Bezos correspondingly perceived the force of online book deals well before customary book shops. He kept on taking advantage of lucky breaks for item broadening in the wake of making a major sprinkle with books. Anyway, what is opportunity acknowledgment? Opportunity acknowledgment is really an interaction that is found in the manner that people and organizations with a pioneering outlook approach new undertakings or thoughts. From numerous points of view, it is a steady conceptualizing in which people search for ''better than ever ways'' of resolving issues. It very well may be a shiny new business thought or even new items or administrations that satisfy clients' requirements and assumptions. 46 CU IDOL SELF LEARNING MATERIAL (SLM)

You've presumably had an idea sooner or later and considered, ''Hey, I bet I could bring in cash doing this current!'' That's an illustration of chance acknowledgment. You perceive that you have a thought or an ability that could be helpful to a specific crowd. A few group seize on these thoughts and transform them into new freedoms that drive business development by making new surges of income. Opportunity acknowledgment is significant in light of the fact that it helps a business stay important and be effective long haul. What might have happened to Amazon on the off chance that it had not left on computerized books, the buyout of Whole Foods and better approaches for transportation to clients rapidly, and rather centered exclusively around selling books on its site? It may not still be near, and it unquestionably wouldn't be as pertinent of a player all things considered in the retail climate. 3.5 SUMMARY  In everyday sense, the term opportunity infers a decent possibility or an ideal circumstance to accomplish something offered by conditions. Along these lines, business opportunity implies a decent or great change accessible to maintain a particular business in a given climate at a given mark of time.  The term 'opportunity' additionally covers an item or undertaking. Thus, the ID of a chance or an item or undertaking is indistinguishable and, subsequently, this load of three terms are utilized as equivalents. The Government of India's \"Look East Policy\" through North East is an illustration of 'freedom' to work together in things like tea, handiworks, herbals, turmeric, and so on  Opportunity ID and determination resemble comer stones of business undertaking. Better the previous, better is the last mentioned. As it were, ID and determination of an appropriate business opportunity fills in as the platitude 'very much started is half done.' But, it resembles preferred said overdone. Why? Since, supposing that we ask any planning business person what venture or item he/she will choose and begin as an undertaking, the undeniable answer he/she would give is one that having a decent market and is beneficial. Yet, the inquiry is how without realizing the item could one know its market?  Whose market will one discover without really having the item? Whose benefit will one discover without really selling the item? There are different issues, other than. While attempting to recognize the reasonable item or undertaking, the meaning business person goes through specific cycles.  The cycles on occasion cause a circumstance, or say, difficulty looking like 'Hen or Egg' debate. That is, at a certain point, the expecting business visionary may discover one item or undertaking as a chance and may captivate and like it, yet at the other second may aversion and turn down it and may think for and discover other item or 47 CU IDOL SELF LEARNING MATERIAL (SLM)

task as a chance for him/her. This cycle of issue continues for some expecting business people delivering them into the issue of what item or task to begin. Then, at that point, how to beat this issue of item distinguishing proof and determination?  One approach to conquer this dilemmatic circumstance is to realize how the current business people distinguished the chance and set up their ventures. An examination concerning the recorded encounters of Indian little ventures in such manner uncovers some fascinating components.  One should be ever-innovative to procure increasingly elevated benefits in this consistently changing business world, where every day may end up being dynamic. Henceforth, the focuses referenced above on the age of thoughts can be a genuine method to build the business and investigate new freedoms.  In correlation, some probably won't end up being valuable. Be that as it may, every one of them should be executed to be on the more secure side. 3.6 KEYWORD  Angel Investors: Individuals who back emerging entrepreneurial ventures, usually as a bridge to get from the self-funded stage to the level of business that would both need and attract venture capital. Funding level ranges anywhere from $50,000 to $2 million.  Business Idea: A successful company will begin with a compelling business idea. Typically, the idea will involve a product or service being exchanged for money  Business Model: Describes how a company will capture value from the business.  Business Plan: A written document describing in detail how a business will assume to achieve its objectives and direct itself, both operationally and financially. The document will be updated regularly.  Change Management: Change management for entrepreneurs and micro-enterprises is a term we are using to describe the need for flexibility and innovation management. It can be defined in this context as the ability to adjust to changing conditions to continue on the path to business fruition. Change management should be part of the culture of the company to try new ideas and discard ideas that are not working. “Our greatest weakness lies in giving up. The most certain way to succeed is always to try just one more time.” 3.7 LEARNING ACTIVITY 1. Describe the objectives of identification of business opportunities ___________________________________________________________________________ ___________________________________________________________________________ 48 CU IDOL SELF LEARNING MATERIAL (SLM)

2. Describe business ideas ___________________________________________________________________________ ___________________________________________________________________________ 3.8 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What do you understand by business opportuity? 2. What are the sources of ideas? 3. Why idea generation is important? 4. What is idea generation and why it's significant? 5. Define ‘Entrepreneurship’. Also discuss its significance Long Questions 1. State any two factors of sensing the opportunity 2. Describe the strategies for idea generation 3. Discuss SCAMPER Strategy 4. Describe opportunity recognition 5. State why opportunities are necessary B. Multiple Choice Questions 1. Which one of the following is the process of entrepreneurs developing new products that over time make current products obsolete? a. Creative destruction b. New business model c. Anatomization d. None of these 49 CU IDOL SELF LEARNING MATERIAL (SLM)

2. Which of the following is the most important for the entrepreneur, while starting a new venture, to make an assessment of? a. Risk b. Profit c. Market d. Competitors 3. An informal group of innovative employees who are permitted to digress temporarily from their regular tasks to develop new ideas are referred to as: a. Skunk works. b. Underground. c. Yahoos. d. intrapreneurs. 4. The idea generation stage in new product development process does not include a. On boarding b. Crowdsourcing c. External idea sources d. Internal idea sources 5. The employee of company can also contribute in idea generation and this source can be best classified as a. internal idea sources b. external idea sources c. off shoring ideas 50 CU IDOL SELF LEARNING MATERIAL (SLM)