Question

NCERT Solutions Class 11, Entrepreneurship, Chapter- 2, An Entrepreneur

To achieve success in Class 11 Entrepreneurship and perform well in board exams and competitive tests, utilizing NCERT Solutions is highly advantageous. These thoughtfully designed solutions encompass all key concepts from each chapter and align with the CBSE curriculum, providing the thorough support necessary for academic excellence.

In these NCERT Solutions for Class 11 Entrepreneurship, we have discussed all types of NCERT intext questions and exercise questions.

Concepts covered in Class 11 Entrepreneurship Chapter- 2 An Entrepreneur, are-

• Why be an Entrepreneur 
• Types of Entrepreneurs
• Competencies and characteristics 
• Entrepreneurial Values, Attitudes and Motivation
• Intrapreneur: Meaning and Importance

Our NCERT Solutions for Class 11 Entrepreneurship provide in-depth explanations to assist students with their homework and assignments. By mastering and extensively practicing the chapter’s concepts through these solutions, you can effectively secure top marks in your exams. Begin your preparation today to achieve excellence in your exams.

Access all solutions and practice questions effortlessly to begin your preparation and secure your academic achievements.

Answer 1

NCERT Solutions Class 11, Entrepreneurship, Chapter- 2, An Entrepreneur

1. Answer the following in about 15 words:

(i) Who is an Intrapreneur?

Solution:

An Intrapreneur or a corporate entrepreneur is a person, who has entrepreneurial competencies and who innovate the products or services for the organization he/she is working for. The intrapreneur or corporate entrepreneur is usually an employee of a large organization who uses the resources and capabilities of the organization, rather than their own, to put their innovative ideas to practice and align their goals to the organizational goals.

(ii) Define Entrepreneurial Motivation.

Solution:

Entrepreneurial motivation is the process that motivates an entrepreneur to

• always stay in the direction of their goal
• bring about the best of their efforts
• consistently hanging around their goal 
• to achieve their entrepreneurial goal.

(iii) What do you mean by competency?

Solution:

Competency: Competency refers to a set of well defined behaviours that act as a road-map to

• recognize
• measure
• and develop 

all the necessary behaviours required by a person to perform a job or achieve a goal.

(iv) Which value provides goal direction to entrepreneurs?

Solution:

The value ‘Respect for work’ provides the goal direction for an entrepreneur and guides and direct them to pursue a career or path where in the growth and development is highly in proportion to the level of efforts they put in.

(v) State one crucial feature of Fabian Entrepreneurs?

Solution:

Fabian entrepreneurs are the entrepreneurs with the following features:

• Adopt and follow conventional approaches 
• Belong to family business 
• Cautious 
• Display lazy and shy behaviour
• Exhibit resistance to venture or risk(This can be considered as their crucial behaviour)
• Firm in their rigid and fundamental approach.
• Go for a change only for the fear of failure and loss. (This can also be considered as their crucial behaviour)

(vi) ‘Hero Motocorp manufactures two wheelers and provide services.’ This is an example of which type of entrepreneur?

Solution:

An industrial entrepreneur is one who establishes an enterprise that manufacture products or provide services which are highly in demand. They exploit the economic resources to economically viable ventures. The enterprise, Hero Motocorp manufactures which manufactures two wheelers and provide services is an example of Industrial entrepreneur.

(vii) “They are highly ambitious are normally not satisfied by slow progress in their jobs.” This applies for which entrepreneurs?

Solution:

Motivated entrepreneurs are the ones who are

• Ambitious to a high degree and are not satisfied by their job
• Believe in their abilities
• Highly Motivated start an enterprise to economically exploit their technical or professional skills and expertise
• They’re further motivated by the success of the venture

(viii) “When it wanes, as it surely will in difficult times, take some guilt time.” This statement shows which attitude of an entrepreneur.

Solution:

Entrepreneurs should have passion in their work and love what they’re working upon. This will help them to stay unaffected during tough times. This will also help them to become role model for their employees. It is likely that the passion will decrease during tough times. They should take some time off during these times. During this time they can re-kindle the passion by reminding themselves of all the valid reasons about the motive behind starting the enterprise and the advantage of being their own boss.

2. Answer the following in about 50 words:

(i) Why attitude is called pervasive?

Solution:

An individual acquires an attitude through the social interaction with different individuals in the society. Different incidents and interactions with others form different attitudes in a person. Thus the attitude is not just developed by a person and many external factors are involved in forming an attitude in a person.
For instance the experience a person had after using a cell phone might form a positive or negative attitude towards the manufacturing company of that phone.
Another example is the experience a person had with the waiter in a restaurant might form a positive or negative attitude about the restaurant itself.
Thus it is clear that the attitude is pervasive by nature.

(ii) Explain any two features of attitude.

Solution:

The following are the features of the attitude:

• Acquired: The attitude is not acquired by birth. During childhood we acquire the attitude mostly from the family members. As we grow, we start acquiring the attitude from the society. We acquire the attitude gradually (not instantaneously). The process of acquiring the attitude remains throughout the life span.
• Behaviour: People behave in accordance to their attitude. In the absence of an influence, people with certain attitude behave in an intended way. For instance, when you enter a mobile store, you want to purchase a specific model of a certain company in the absence of any external influence. Attractive ads displayed in the store can influence you and change your behaviour(to purchase a different model or a phone of a different company). Even the sales man/girl might influence you to purchase a different model or brand. But in the absence of these external intervention to change your behaviour, you behave as per your attitude.
• Concealed or Invisible: Attitude is purely psychological and is not externally visible. However, depending on the behaviour a person exhibits towards a commodity or person or country, we can guess the attitude of a person. For instance, depending upon the interest shown by a student on a specific subject, we can infer that the student has a positive attitude towards that subject or faculty.
• Pervasive: An individual acquires an attitude through the social interaction with different individuals in the society. Different incidents and interactions with others form different attitudes in a person. Thus the attitude is not just developed by a person and many external factors are involved in forming an attitude in a person.
  For instance the experience a person had after using a cell phone might form a positive or negative attitude towards the manufacturing company of that phone. Another example is the experience a person had with the water in a restaurant a restaurant might form a positive or negative attitude about the restaurant itself. Thus it is clear that the attitude is pervasive by nature.

(iii) Explain these core values:

(a) Respect for work
(b) Innovation and creativity

Solution:

(a) The core value ‘Respect for work’ provides the goal direction for an entrepreneur and guides and directs them to pursue a career or path where in the growth and development is highly in proportion to the level of efforts they put in.
All the successful entrepreneurs are the ones who has high respect for work and believe in hard work.
(b) Innovation and creativity are the the most important core values of entrepreneurs. While creativity guide an entrepreneur to dream about creative ideas to improve an existing product or service or solve a problem, innovation guides them to put their ideas into practical use. An entrepreneur exhibits innovation by

• Being unique and original in their solution.
• Contributing critical inputs for a new idea
• Develop or Improve the existing products or services
• Evaluating the new ideas
• Focusing on the solution even when failure occurs
• Go for a continuous search for problems in the society (so that they can resolve them)

Answer 2

(iv) Name the types of entrepreneurs according to Danhof.

Solution:

Entrepreneurs are broadly categorized into four different types according to C.Danhof (Clarence Danhof): 

• Innovative: These entrepreneurs innovate new products or services or improve upon them. They are very aggressive and intelligent to put their ideas into practice. These are common among the developed countries.
• Imitative: They follow the innovative entrepreneurs and are flexible to adopt their ideas. They start the enterprise by imitating other people’s ideas. They bring about the change and are very crucial for the underdeveloped economic societies 
• Fabian: Fabian entrepreneurs are the entrepreneurs with the following features.
  (a) Adopt and follow conventional approaches
  (b) Belong to family business
  (c) Cautious
  (d) Display lazy and shy behaviour
  (e) Exhibit resistance to venture or risk(This can be considered as their crucial behaviour)
  (f) Firm in their rigid and fundamental approach.
  (g) Go for a change only for the fear of failure and loss. (This can also be considered as their crucial behaviour)
• Drone: These are laggards who follow the traditional way of doing business and are reluctant to any change, even if they face losses. They do not utilize the opportunities they come across.

(v) What is the importance of an Intrapreneur in an organization?

Solution:

An Intrapreneur crucial for an organization because of the following reasons:

• They help the organization to innovate a new product or service.
• They work in accordance the organization’s culture.
• They work independently while being an integral part of the team structure.
• They align their thought process with the best interests of the enterprise they are working for.
• They have great influence on their colleagues.
• They put their entrepreneurial spirit to the best of the interests of the enterprise they are working for.
• They work on a win-win situation.

(vi) What is “Innovation time off” in an Intrapreneurship program?

Solution:

“Innovation time off” is a motivation process, used by Google, to encourage the employees. In this program every employee spends 20% of their time to work on projects that interest them.

This intrapreneurship program involves:

• Select a project and submit the proposal
• Evaluate the project
• Approval of the project
• Monitor the progress of the project. 

Several of Google’s products and services like Gmail, Google news, Orkut and adsense are products of this “Innovation time off” Intrapreneurship program. According to an announcement, half of the new products or services from Google were from this program.  

In India, the enterprises like Marico and Kinetic Engineering Limited has introduced similar programs.

3. Answer the following in about 75 words:

(i) “The thoughts feelings and tendencies to behave are acquired gradually.” In the light of this statement describe the sources of attitudes.

Solution:

“The thoughts feelings and tendencies to behave are acquired gradually.” This statement makes much more sense when we consider the various sources through we acquire the attitude.

• Family members: At tender ages, the family member have a strong influence in the formation of attitude. It could be positive or negative.
• Need: Necessity changes our attitude others or objects. For instance, the need to reach the school or office, might change his attitude towards possessing a own vehicle as against the public transportation.
• Group Associations: The groups that we belong to will have a great influence. For instance, if you’re in MPC group in 10+1, you might have positive attitude towards Maths. Being part of a soccer group might lead to development of negative attitude about another sport.
• Influential Others: A friend or a relative might influence you to form a positive attitude towards an object or product or person. For instance, your friend might influence you to develop a positive attitude towards a sport. Your favourite star might influence you (through ad) to develop a positive attitude towards a certain four wheeler.

(ii) “Attitude is not by birth; it is acquired” Explain.

Solution:

Attitude is our behaviour towards a person, place, object or event, either positively or negatively. We are not exposed to a person or place or object or event when we’re born. It is only after we start growing that we come across these. Thus we can say that one do not possess an attitude by birth.
At tender ages, family members have a great influence in developing an attitude. These attitude will start becoming stronger as we grow.

Coming across various situations and meeting people will start influencing us and we start developing new attitudes. Thus we can say that the development of attitude is a gradual process. From the above discussion, we can come to the conclusion that the attitude is not by birth; it is acquired.

(iii) “Entrepreneurs venture to take risks but some entrepreneurs are very shy and lazy by nature.” Mention the name of such entrepreneurs and explain.

Solution:

Fabian entrepreneurs are over-cautious and have the following features:

(a) Adopt and follow conventional approaches
(b) Belong to family business
(c) Cautious
(d) Display lazy and shy behaviour
(e) Exhibit resistance to venture or risk (This can be considered as their crucial behaviour)
(f) Firm in their rigid and fundamental approach.
(g) Go for a change only for the fear of failure and loss. (This can also be considered as their crucial behaviour)

These are the entrepreneurs who are the last to adopt the changes in the technology, environment and trend set of consumer behaviour. They put their enterprise at the risk of losing the business.

(iv) “Innovation and creativity both are interrelated” Explain.

Solution:

Innovation and creativity are the the most important core values of entrepreneurs. While creativity guide an entrepreneur to dream about creative ideas to improve an existing product or service or solve a problem, innovation guides them to put their ideas into practical use. Thus without creativity there is no innovation and just dreaming of a creative product or service is not sufficient to start an enterprise. Thus we can say that both creativity and innovation are interdependent.

(v) “We can appoint an employee but not an entrepreneur.” Describe difference between an employee and an entrepreneur in the light of this statement.

Solution:

(vi) Differentiate between an Intrapreneur and Entrepreneur.

Solution:

Answer 3

(vii) Explain the following Entrepreneurial Competencies:

(a) Persistence
(b) Leadership
(c) Systematic planning

Solution:

(a) Many of the entrepreneurial ventures are unique and new. So, they need a very close watch. Once the product or service is in place, it should be marketed. If the market for the new product does not exist, the entrepreneur should find new ways to create the market, for selling their product or service. During this process, they encounter many hurdles. The entrepreneur should be highly persistent in their efforts and should not give up. Thus persistence is a vital entrepreneurial competency that the entrepreneur should possess.

(b) Many of the entrepreneurial ventures are unique and new. From the start of the enterprise to the stage where the product or service is introduced into the market, there is lot of uncertainty associated and the entire enterprise has to go through many hurdles and roadblocks. During this, it is essential to guide and motivate the team towards the goal. To achieve this the entrepreneur should possess effective leadership qualities to keep the team focused on the goal of the enterprise.

As a leader, the entrepreneur should exhibit:

• strong will power
• effective business acumen
• and communication skills 

to drive the enterprise towards the goal, during difficult times.

(c) Every enterprise requires the availability of resources like 

• Time 
• Funds 
• Labour 

The entrepreneurs gather funds majorly from their personal savings. They put all their efforts and time to establish their enterprise. Any deviation in the planning of the enterprise’s activities will be disastrous and result in the collapse of their dream. In order to put all of these resources to the optimum use, and to spend them in the right direction, they should prepare a detailed systematic planning. They should strictly implement this systematic planning to drive all of their resources towards the goal.

(viii) Why is systematic planning a must for an Entrepreneur?

Solution:

Every enterprise requires the availability of resources like

• Time 
• Funds 
• Labour 

The entrepreneurs gather funds majorly from their personal savings. They put all their efforts and time to establish their enterprise. Any deviation in the planning of the enterprise’s activities will be disastrous and result in the collapse of their dream. In order to put all of these resources to the optimum use, and to spend them in the right direction, they should prepare a detailed systematic planning. They should strictly implement this systematic planning to drive all of their resources towards the goal. Thus systematic planning is a must for an entrepreneur.

(ix) Define Business Ethics? Why is it important to an entrepreneur.

Solution:

While conducting business, the enterprise should guard itself from potentially controversial issues such as 

• Aversion from corporate social responsibility 
• Bribery
• Corporate Governance 
• Discrimination
• Exploitation by insider trading
• Fiduciary responsibilities 

The study of proper business policies and practices related to the above controversial issues is know as ‘Business ethics’. Business ethics are often guided by law. Sometimes they provide the basic framework that business choose in order to gain public acceptance.

The entrepreneur, while doing the business, interact with the social environment. The entrepreneur’s success purely depends on how the external environment perceives his idea. Any sort of non-adherence to business ethics is likely to put them on the verge of fatality. The should adopt what is termed as ‘Social Entrepreneurship’, ‘Corporate social responsibility’, ‘Social corporate entrepreneurship’.

Focusing completely on the business problems is likely to overlook ethical problems. So, they should be cautious. Non-adherence to business ethics has crashed the business giants like Enron, WorldCom, Anderson etc. So, it is essential for the entrepreneur to adhere to ‘Business ethics’ for the success of the enterprise.

Once the business is successful, few of the ethical standards that help the entrepreneur to retain their success are

• Appropriate measures to maintain quality and quantity standards
• Bearing the environmental responsibilities
• Conforming to the labour laws.
• Discouraging the child labour
• Efficacious usage of the natural resources

(x) Explain types of entrepreneurs on the basis of use of technology.

Solution:

Depending on the use of technology entrepreneurs are classified as:

• Technical entrepreneurs: These entrepreneurs use their
  (a) Knowledge
  (b) Specialization
  (c) Skill
  to develop new or improved products or services. They are technology oriented. Usually they pay more attention production rather than marketing.
• Non-Technical entrepreneurs: They focus on innovative marketing and distribution strategies to expand their business. They usually do not pay much attention to the technical details of the product or service.

(xi) Explain types of entrepreneurs on the basis of motivation.

Solution:

Based on the motivation, the entrepreneurs are segregated as:

• Spontaneous: They are self-motivated and also known as natural entrepreneurs. They undertake entrepreneurship for personal satisfaction in work, ego or status. They are highly creative.
• Induced: These entrepreneurs undertake entrepreneurship to grab the opportunities that come their way like government’s support for prospective entrepreneurs etc. Some times, the circumstances like unemployment or not satisfied by their current job will also force them to adopt entrepreneurship. 
• Motivated: These entrepreneurs are highly ambitious and are motivated by their desire to put their talent or skill into practical use. They adopt the entrepreneurship as they’re confident of their idea turning into a successful venture. They’re further motivated when their innovative product or service is adopted by the market and bring them profits.

(xii) What are the entrepreneurial values? Show by diagram. Draw the diagram depicting the entrepreneurial values.

Solution:

(xiii) “Human beings require respect in the society.” Explain the esteem needs in the Maslow – Hierarchy of Needs Theory.

Solution:

According to The Maslow – Hierarchy of Needs Theory, esteem is a typical human desire to be accepted and valued by others. To achieve this they often engage themselves in a hobby or profession that could bring them reputation.

Internally all people will have:

• self-respect
• self-esteem
• desire for esteem from others 

Self-esteem is critical for survival. It contributes majorly to the normal and healthy development of a person. Lack of esteem results from imbalance and could lead to inferiority complex.

In addition to inner esteem factors, people also have a need for external esteem factors like:

• Appreciation
• Attention
• Dominance
• Fame
• Glory
• Prestige
• Recognition
• Reputation 

Thus esteem plays a vital role, both internally and externally on human beings. It has a huge impact on their personal growth.

Answer 4

(xiv) How competency in creativity and innovation helps an entrepreneur meet the challenges of a situation?

Solution:

The competency in creativity and innovation helps an entrepreneur meet the challenges of a situation as specified below:

• Few individuals have creativity and innovation as a basic characteristic. This help them to achieve their goal.
• In certain cases, they may not have new and creative ideas to introduce a new product or service. But they use creative ideas and innovate the existing products or services(make them), to meet the challenges of a situation.
• Thus, the competency ‘Creativity and Innovation’ helps the entrepreneurs to create wealth with very small effort.
• This also brings them numerous opportunities, as they do not have to innovate a new product or service right from scratch. They just have to use their creativity and innovation to improve upon the existing product or service, to ease out any challenges.

(xv) Do you think Intrapreneur is necessary for an organisation? Support your answer with strong reasons.

Solution:

Yes, I think that the intrapreneur is necessary for an organisation because supporting an intrapreneur helps the organisation get the following benefits

• Intrapreneurs have entrepreneurial competencies in them. Thus the organization is assured that the new special projects or ideas get the due attention.
• Intrapreneurs work on a win-win situation. Thus the organization is guaranteed of best output.
• The organization gets new opportunities (the intrapreneur’s ideas) to capitalize.
• By supporting and encouraging the intrapreneurs, they will be able to retain highly talented and motivated employees. Otherwise, they quit the job and join a competitor. Sometimes they themselves become competitors by starting a new enterprise.
• With their entrepreneurial thoughts, the intrapreneurs are always thinking of better products or services. This helps the organization to keep pace with the competing markets.

4. Answer the following in about 150 words:

(i) What do you mean by entrepreneurs? Mention the types of entrepreneurs.

Solution:

Entrepreneur: An entrepreneur is

• an innovator of new ideas
  (a) to creates new products or services
  (b) or improve the existing products or services
• exploits an opportunity
• commercializes his innovation 

Entrepreneurs are broadly categorized into four different types according to C.Danhof (Clarence Danhof):

• Innovative: These entrepreneurs innovate new products or services or improve upon them. They are very aggressive and intelligent to put their ideas into practice. These are common among the developed countries.
• Imitative: They follow the innovative entrepreneurs and are flexible to adopt their ideas. They start the enterprise by imitating other people’s ideas. They bring about the change and are very crucial for the underdeveloped economic societies.
• Fabian: Fabian entrepreneurs are the entrepreneurs with the following features.
  (a) Adopt and follow conventional approaches
  (b) Belong to family business
  (c) Cautious
  (d) Display lazy and shy behaviour
  (e) Exhibit resistance to venture or risk (This can be considered as their crucial behaviour)
  (f) Firm in their rigid and fundamental approach.
  (g) Go for a change only for the fear of failure and loss. (This can also be considered as their crucial behaviour)
• Drone: These are laggards who follow the traditional way of doing business and are reluctant to any change, even if they face losses. They do not utilize the opportunities they come across.

(ii) Motivation is a process, explain by a model.

Solution:

Motivation is an essential process. The following model explains the motivation process.

Its various components can be summarised as follows:

• Unsatisfied Need: Every human being has an instinct to satisfy their needs or desires or expectations. Sometimes the needs are satisfied and sometimes they are unfulfilled. This leads to tention. 
• Tention: Unsatisfied needs cause tension in a person. To get rid of tension they will start searching for ways.
• Drives: Searching for relief from tension leads them to the drives that relieve the tension.
• Search behaviour: These drives lead to certain search behaviour to find means to satisfy their needs.
• Need fulfilled: The need is fulfilled once the means to satisfy their need is found.
• Reduced tension: Once the need is satisfied, the tension is reduced. 

Once the satisfactions is completed, new unsatisfied needs will arise. This process continues.

(iii) “Entrepreneurs cannot survive and grow without fulfilling the ethical responsibilities of the society.” Explain.

Solution:

While conducting business, the enterprise should guard itself from potentially controversial issues such as

• Aversion from corporate social responsibility
• Bribery
• Corporate Governance
• Discrimination
• Exploitation by insider trading
• Fiduciary responsibilities 

The study of proper business policies and practices related to the above controversial issues is known as ‘Business ethics’.

Business ethics are often guided by law. Sometimes they provide the basic framework that business choose in order to gain public acceptance.

The entrepreneur, while doing the business, interact with the social environment. The entrepreneur’s success purely depends on how the external environment perceives his idea. Any sort of non-adherence to business ethics is likely to put them on the verge of fatality. The should adopt what is termed as ‘Social Entrepreneurship’, ‘Corporate social responsibility’, ‘Social corporate entrepreneurship’.

Focusing completely on the business problems is likely to overlook ethical problems. So, they should be cautious. Non-adherence to business ethics has crashed the business giants like Enron, WorldCom, Anderson etc. So, it is essential for the entrepreneur to adhere to ‘Business ethics’ for the success of the enterprise.

Once the business is successful, few of the ethical standards that help the entrepreneur to retain their success are

• Appropriate measures to maintain quality and quantity standards
• Bearing the environmental responsibilities
• Conforming to the labour laws.
• Discouraging the child labour
• Efficacious usage of the natural resources

(iv) Explain in detail the McClelland Theory of Motivation.

Solution:

McClelland stated his “Theory of Motivation” after conducting his experiments on more than thousand people, based on the achievement. These needs determine the way in which a person is motivated. Recognizing the dominant need in any person help us to understand how that person is motivated. His theory states that every human being is motivated by the following three factors, depicted in the diagram.

• Achievement: People have an urge for achievement. This need is characterized by
  (a) finding solutions to complex problems.
  (b) acquiring specialized or complex skills
  (c) setting challenging goals and achieving them.
  (d) like to receive regular feedback on their progress and achievement.
  (e) setting a goal for themselves and get recognition when they succeed.
• Affiliation: This need is characterized by
  (a) favour for the teamwork
  (b) maintain interpersonal relations
  (c) tend to reduce high risk and uncertainty
• Power: This need is characterized by
  (a) desire to control and influence others
  (b) likes to win arguments
  (c) desire to beat their competitors
  (d) desire to persuade others and prevail.

Answer 5

(v) Explain the types of business entrepreneurs.

Solution:

According to the type, nature and size the business, entrepreneurs can be categorized into five types as follows:

• Business Entrepreneur: The business entrepreneur are the most common types of entrepreneurs. They innovate a new product or service. They start the enterprise to exploit their idea economically. Mostly found in the small trading and manufacturing enterprises.
• Trading entrepreneurs: They perform the trade either in-house or overseas or both. They closely watch the market for the demand for any product or service and exploit it economically. They’re the fore-runners to implement the ideas and stand ahead of others.
• Industrial Entrepreneurs: An industrial entrepreneur is one who establishes an enterprise that manufacture products or provide services which are highly in demand. They exploit the economic resources into economically viable ventures. The enterprise, Maruti Suzuki India Ltd, which is in the business of car manufacturing and offering car related services is an example of such enterprises.
• Corporate entrepreneurs: These are the entrepreneurs who control or manage or organize an enterprise in the most productive and economic way through their innovative ideas. The promoters of the corporations, those performing the business or trade or established an industry fall into this category.
• Agricultural entrepreneurs: They are in the business of agriculture and related products or services. They use innovative techniques, machinery, equipment, irrigation methods to grow and market the crops. 

In addition to this, depending on their orientation towards the technology, entrepreneurs are further classified as:

• Technical entrepreneurs: These entrepreneurs use their a. Knowledge b. Specialization c. Skill to develop new or improved products or services. They are technology oriented. Usually they pay more attention production rather than marketing.
• Non-Technical entrepreneurs: They focus on innovative marketing and distribution strategies to expand their business. They usually do not pay much attention to the technical details of the product or service.

(vi) Explain any four entrepreneurial competencies.

Solution:

• Creativity and Innovation: Innovation and creativity are the the most important core values of entrepreneurs. While creativity guide an entrepreneur to dream about creative ideas to improve an existing product or service or solve a problem, innovation guides them to put their ideas into practical use.
  An entrepreneur exhibits innovation by:
  (a) Being unique and original in their solution.
  (b) Contributing critical inputs for a new idea
  (c) Develop or Improve the existing products or services
  (d) Evaluating the new ideas
  (e) Focusing on the solution even when failure occurs
  (f) Go for a continuous search for problems in the society (so that they can resolve them)
• Enterprise Launching: Entrepreneurs should possess the competency to identify the opportunities and make best use of the resources at their disposal, by launching an enterprise. This trait is what stands them apart from the crowd.
• Enterprise Management: Managing an enterprise is a crucial competency that an entrepreneur should possess. The success of the enterprise depends on the level of an entrepreneur’s expertise in enterprise management. They should be well acquainted with various functions in the management like
  (a) Planning
  (b) Organizing
  (c) Staffing
  (d) Directing
  (e) Leadership
  (f) Communication
  (g) Motivation
• Information seeking: The amount of information an organization has at its disposal plays a crucial role in the success of the organization. The entrepreneur should gather the information about changing trends in consumer behaviour, market demand, new technology being introduced, competitor analysis etc. This helps them in decision making process, thus driving the organization towards its goal.
• Initiative: This is one of the basic competency that every entrepreneur should possess. Taking initiative in the starting point in an entrepreneurial process. The entrepreneur should be vigilant of the consumer behaviour, market dynamics, launch of new products to spot an opportunity. Once the opportunity or idea is spotted they should take the initiative to start the entrepreneurial process. Once the entrepreneurial process is started they should increase the pace to establish an enterprise. 
• Leadership: Many of the entrepreneurial ventures are unique and new. From the start of the enterprise to the stage where the product or service is introduced into the market, there is lot of uncertainty associated and the entire enterprise has to go through many hurdles and roadblocks. During this, it is essential to guide and motivate the team towards the goal. To achieve this the entrepreneur should possess effective leadership qualities to keep the team focused on the goal of the enterprise. As a leader, the entrepreneur should exhibit
  (a) strong will power
  (b) effective business acumen
  (c) and communication skills
  to drive the enterprise towards the goal, during difficult times.
• Persistence: Many of the entrepreneurial ventures are unique and new. So, they need a very close watch. Once the product or service is in place, it should be marketed. If the market for the new product does not exist, the entrepreneur should find new ways to create the market, for selling their product or service. During this process, they encounter many hurdles. The entrepreneur should be highly persistent in their efforts and should not give up. Thus persistence is a vital entrepreneurial competency that the entrepreneur should possess.
• Persuasion and Influencing Others: While performing various entrepreneurial functions, the entrepreneur has to deal with various individuals and institutions. They should be able persuade their ideas and influence others so that other people are ready to accept their products are services. To do so they’ve to be well acquainted with the innovative features of their products or services and how their products much better than those prevailing in the market.
• Problem solving: The entrepreneurs start their enterprise to commercialize a new product or service. As the product or service is new and the enterprise is just started, there will be lot of obstacles they would come across in the path of their goal. They should be capable of coming up with a number of different solutions to the problem at hand. They should seek alternate strategies and solutions. They should possess strong problem solving skills to achieve this.
• Quality Performance: They should have a tendency to maintain quality standards in their products or services. They can achieve this by establishing their own standards or adopt the standards set by others. Maintaining high quality standards will help them to win the consumer loyalty.
• Risk taking and risk management: As the area into which the entrepreneur is venturing is new, their lot of uncertainty associated at various levels. This poses risk at various stages of entrepreneurial process. The entrepreneur should be risk taking to move ahead. At the same time, after they’ve started the enterprise and the risk surfaces, they should be capable of managing the risk. 
• Systematic Planning: Every enterprise requires the availability of resources like
  (a) Time
  (b) Funds
  (c) Labour
  The entrepreneurs gather funds majorly from their personal savings. They put all their efforts and time to establish their enterprise. Any deviation in the planning of the enterprise’s activities will be disastrous and result in the collapse of their dream. In order to put all of these resources to the optimum use, and to spend them in the right direction, they should prepare a detailed systematic planning. They should strictly implement this systematic planning to drive all of their resources towards the goal.

Answer 6

(vii) Explain features of attitudes.

Solution:

The following are the features of the attitude:

• Acquired: The attitude is not acquired by birth. During childhood we acquire the attitude mostly from the family members. As we grow, we start acquiring the attitude from the society. We acquire the attitude gradually (not instantaneously). The process of acquiring the attitude remains throughout the life span.
• Behaviour: People behave in accordance to their attitude. In the absence of an influence, people with certain attitude behave in an intended way. For instance, when you enter a mobile store, you want to purchase a specific model of a certain company in the absence of any external influence. Attractive ads displayed in the store can influence you and change your behaviour(to purchase a different model or a phone of a different company). Even the sales man/girl might influence you to purchase a different model or brand. But in the absence of these external intervention to change your behaviour, you behave as per your attitude.
• Concealed or Invisible: Attitude is purely psychological and is not externally visible. However, depending on the behaviour a person exhibits towards a commodity or person or country, we can guess the attitude of a person. For instance, depending upon the interest shown by a student on a specific subject, we can infer that the student has a positive attitude towards that subject or faculty.
• Pervasive: An individual acquires an attitude through the social interaction with different individuals in the society. Different incidents and interactions with others form different attitudes in a person. Thus the attitude is not just developed by a person and many external factors are involved in forming an attitude in a person.
  For instance the experience a person had after using a cell phone might form a positive or negative attitude towards the manufacturing company of that phone.
  Another example is the experience a person had with the water in a restaurant a restaurant might form a positive or negative attitude about the restaurant itself.
  Thus it is clear that the attitude is pervasive by nature.

(viii) How do systematic planning and persistence help entrepreneurs become effective leaders?

Solution:

Many of the entrepreneurial ventures are unique and new. So, they need a very close watch. Once the product or service is in place, it should be marketed. If the market for the new product does not exist, the entrepreneur should find new ways to create the market, for selling their product or service. During this process, they encounter many hurdles. The entrepreneur should be highly persistent in their efforts and should not give up. Thus persistence is a vital entrepreneurial competency that the entrepreneur should possess.

Every enterprise requires the availability of resources like: 

(a) Time
(b) Funds
(c) Labour

The entrepreneurs gather funds majorly from their personal savings. They put all their efforts and time to establish their enterprise. Any deviation in the planning of the enterprise’s activities will be disastrous and result in the collapse of their dream. In order to put all of these resources to the optimum use, and to spend them in the right direction, they should prepare a detailed systematic planning. They should strictly implement this systematic planning to drive all of their resources towards the goal.
Thus these two competencies help the entrepreneur to become an effective leader.

5. Answer the following in about 250 words:

(i) Explain any six essential attitudes of an entrepreneur.

Solution:

Six of the entrepreneurial attitudes of an entrepreneur that an entrepreneur should possess to be a successful entrepreneur are as follows:

• Adopting the change: The entrepreneurs should be ready to adopt the change and move out of their comfort zone. A change is necessary to achieve something. Change can be either in goal, technology, place or employees etc. They should be quick to adopt the change to grab the opportunities associated with the change.
• Courageous: The entrepreneur should have the courage and not afraid of failure. They understand that failures are stepping stones to success and never let the fear of failure hold them from ventures. Even the investors understand this fact. When it comes to a choice, other things being equal, an investor would prefer a person who has failed than a person who has never ventured.
• Decision making in time: The entrepreneurs should be able to take quick decisions. They should be wise enough to decide on what to do. At the same time they should plan the things in an organized way. This would help them to grab an opportunity without missing. Otherwise, there is possibility of losing an opportunity.
• Ethical: They should adopt and follow the business ethics and should be a role model for their employees and other associates. The customer would like to do business with a person who has ethics as compared to a competitor who is not ethical in practice.
• Flexible: They should be flexible enough to adopt the changes in accordance with the changes in the market and technology. Especially for a small scale venture, this flexibility will be an added advantage as adopting the change would be easier, as compared to a large scale enterprise. At the same time they should be rigid enough and stick to the core values and ethical practices.
• Open-minded: They should be open to accept criticism and ready to accept their mistakes (if any). They should win the confidence of the employees and other associates so that the employees do not hesitate to give their honest opinions when they think that their employer has taken a wrong decision, or when they have a better opinion. Entrepreneurs can convey to the employees and other associates that they’re open to suggestions or they can convey this message through a misson statement.
• Passionate: Entrepreneurs should have passion in their work and love what they’re working upon. This will help them to stay unaffected during tough times. This will also help them to become role model for their employees. It is likely that the passion will decrease during tough times. They should take some time off during these times. During this time they can re-kindle the passion by reminding themselves of all the valid reasons about the motive behind starting the enterprise and the advantage of being their own boss.
• Resilient: Every business is likely to go through tough times at sometime or the other. When there is a down fall, they should be resilient enough to rebound back on track. The loss can not be recovered. However, they should consider the setbacks as valuable lessons.
• Self-caring: The entrepreneur plays critical role in moving the organization towards its goal. Their non-availability in the enterprise due to health reasons is likely to put the enterprise in chaos. They should take care of their health first, as they’re the prestigious asset of the enterprise. Everything else is secondary. Being healthy improves their appearance and in turn will bring positive energy and impact on the customers or employees or other associates.
• Self-confident: The entrepreneur should be confident enough about their pursuit or venture and about taking it to its intended goal of success. Their confidence will have a positive impact on the employees, customers and other associates with who they’ve a day to day interaction and thus improves the productivity of the enterprise.
• Self-control: The success and profit shouldn’t make the entrepreneur to be proud or get them into the mode of lavish spending on luxuries. They should keep themselves under control to preserve the profits for the tackling the uncertainties. They should not let the ego come in their way to listen to other peoples ideas and suggestions with patience.
• Trustworthy: They should crate an environment to win the trust of their employees and build a system of integrity in their enterprise. The same is applicable with the customers and other stake-holders. Thus they’ll be able to win the confidence of others which in turn have a positive impact on the productivity and profitability of the enterprise and to win against their competitors.

Answer 7

(ii) Explain Maslow‟s Theory of Motivation.

Solution:

According to Maslow’s theory of motivation or hierarchy of needs there are five elemental needs based on which every individual is motivated. The following pyramid shows these needs, in a hierarchy.

• Physiological: They are at the bottom of the hierarchy. Unsatisfied physiological needs like food, water sleep etc., create physiological and physical tension in a person and motivate the person towards satisfying these needs. Once these needs are fulfilled, the person moves towards the next motivating need i.e., Safety.
• Safety: The need for security and shelter becomes the second motivating factor. This includes the safety and security of family, employment, property etc. One would feel the need to live life that is free from fear, tension and they want to be under the protection of order and law. People will put all their efforts so that they get whatever is required to put them under security and protection. Once this need is satisfied the need for the next motivating factor i.e, Love/Belonging drives them.
• Love/Belonging: The third motivating need is the need for love and belonging. Humans by nature are social loving. Getting connected with the relatives and family, making friends in the college or office or in their locality or community will exhibit the effort they put to make them socially belonging. Once these needs are satisfied the next motivating need i.e., Esteem becomes predominant.
• Esteem: Esteem is a typical human desire to be accepted and valued by others. To achieve this they often engage themselves in a hobby or profession that could bring them reputation. Internally all people will have
  (a) self-respect
  (b) self-esteem
  (c) desire for esteem from others
  Self-esteem is critical for survival. It contributes majorly to the normal and healthy development of a person. Lack of esteem results from imbalance and could lead to inferiority complex.
  In addition to inner esteem factors, people also have a need for external esteem factors like
  (a) Appreciation
  (b) Attention
  (c) Dominance
  (d) Fame
  (e) Glory
  (f) Prestige
  (g) Recognition
  (h) Reputation
  Thus esteem plays a vital role, both internally and externally on human beings. It has a huge impact on their personal growth.
• Self-Actualization: This is the highest need of a person. To achieve this they put constant effort to develop themselves. This need motivate them to learn, create, understand and experience their potential.

(iii) Differentiate between an entrepreneur and an employee.

Solution:

(iv) “Competencies is a set of defined behaviors.” State the types of competencies required by an entrepreneur? Explain.

Solution:

• Creativity and Innovation: Innovation and creativity are the the most important core values of entrepreneurs. While creativity guide an entrepreneur to dream about creative ideas to improve an existing product or service or solve a problem, innovation guides them to put their ideas into practical use.
  An entrepreneur exhibits innovation by:
  (a) Being unique and original in their solution.
  (b) Contributing critical inputs for a new idea
  (c) Develop or Improve the existing products or services
  (d) Evaluating the new ideas
  (e) Focusing on the solution even when failure occurs
  (f) Go for a continuous search for problems in the society (so that they can resolve them)
• Enterprise Launching: Entrepreneurs should possess the competency to identify the opportunities and make best use of the resources at their disposal, by launching an enterprise. This trait is what stands them apart from the crowd.
• Enterprise Management: Managing an enterprise is a crucial competency that an entrepreneur should possess. The success of the enterprise depends on the the level of an entrepreneur’s expertise in enterprise management. They should be well acquainted with various functions in the management like
  (a) Planning
  (b) Organizing
  (c) Staffing
  (d) Directing
  (e) Leadership
  (f) Communication
  (g) Motivation
• Information seeking: The amount of information an organization has at its disposal plays a crucial role in the success of the organization. The entrepreneur should gather the information about changing trends in consumer behaviour, market demand, new technology being introduced, competitor analysis etc. This helps them in decision making process, thus driving the organization towards its goal.
• Initiative: This is one of the basic competency that every entrepreneur should possess. Taking initiative in the starting point in an entrepreneurial process. The entrepreneur should be vigilant of the consumer behaviour, market dynamics, launch of new products to spot an opportunity. Once the opportunity or idea is spotted they should take the initiative to start the entrepreneurial process. Once the entrepreneurial process is started they should increase the pace to establish an enterprise.
• Leadership: Many of the entrepreneurial ventures are unique and new. From the start of the enterprise to the stage where the product or service is introduced into the market, there is lot of uncertainty associated and the entire enterprise has to go through many hurdles and roadblocks. During this, it is essential to guide and motivate the team towards the goal. To achieve this the entrepreneur should possess effective leadership qualities to keep the team focused on the goal of the enterprise.
  As a leader, the entrepreneur should exhibit
  (a) strong will power
  (b) effective business acumen
  (c) and communication skills to drive the enterprise towards the goal, during difficult times. 
• Persistence: Many of the entrepreneurial ventures are unique and new. So, they need a very close watch. Once the product or service is in place, it should be marketed. If the market for the new product does not exist, the entrepreneur should find new ways to create the market, for selling their product or service. During this process, they encounter many hurdles. The entrepreneur should be highly persistent in their efforts and should not give up. Thus persistence is a vital entrepreneurial competency that the entrepreneur should possess.
• Persuasion and Influencing Others: While performing various entrepreneurial functions, the entrepreneur has to deal with various individuals and institutions. They should be able persuade their ideas and influence others so that other people are ready to accept their products are services. To do so they’ve to be well acquainted with the innovative features of their products or services and how their products much better than those prevailing in the market. 
• Problem solving: The entrepreneurs start their enterprise to commercialize a new product or service. As the product or service is new and the enterprise is just started, there will be lot of obstacles they would come across in the path of their goal. They should be capable of coming up with a number of different solutions to the problem at hand. They should seek alternate strategies and solutions. They should possess strong problem solving skills to achieve this.
• Quality Performance: They should have a tendency to maintain quality standards in their products or services. They can achieve this by establishing their own standards or adopt the standards set by others. Maintaining high quality standards will help them to win the consumer loyalty.
• Risk taking and risk management: As the area into which the entrepreneur is venturing is new, there lot of uncertainty associated at various levels. This poses risk at various stages of entrepreneurial process. The entrepreneur should be risk taking to move ahead. At the same time, after they’ve started the enterprise and the risk surfaces, they should be capable of managing the risk.
• Systematic Planning: Every enterprise requires the availability of resources like
  (a) Time
  (b) Funds
  (c) Labour
  The entrepreneurs gather funds majorly from their personal savings. They put all their efforts and time to establish their enterprise. Any deviation in the planning of the enterprise’s activities will be disastrous and result in the collapse of their dream. In order to put all of these resources to the optimum use, and to spend them in the right direction, they should prepare a detailed systematic planning. They should strictly implement this systematic planning to drive all of their resources towards the goal.

Answer 8

(v) “Entrepreneur’s decisions can strengthen or seriously weaken a firm’s future business viability.” Discuss this statement in the light of necessity of ethics for society and development of business.

Solution:

Entrepreneur’s decision can strengthen a firm’s future business viability, by following some ethical standards in their business practices:

(а) Providing quality and correct quantity of goods to consumers
(b) Keeping in mind the environmental issues during production
(c) Paying the minimum and correct wages to the workers
(d) Not to use child labour in their production
(e) Judicious use of natural resources.
(f) Integrity, promise keeping, commitment, and truthfulness towards employee, consumers other competitors, etc.

For example: Karsan Bhai Patel, the creator of Nirma Washing Powder, who was working as a factory chemist in Gujarat Mineral Development Corporation, started making detergent powder in his kitchen for poor rural women of Gujarat and selling his product by visiting different villages. His efforts culminated in the whitish yellow detergent powder named Nirma. The idea behind was need and the problem of the society that could not afford other brands of detergent powders because of their high cost. Today, Nirma is one of the world’s biggest detergent powder manufacturer. The strength of being capable is the plus point in an entrepreneur.

Entrepreneurs make choices and take actions that affect many, usually without the moral guidance available in established organisations. “Entrepreneur’s decisions can seriously weaken a firm’s future business viability.” Some common types of unethical action by an enterprise or an entrepreneur.

• Theft, manipulating suppliers, bribery, embezzlement, evading taxes, failure to
withdraw a defective product from the marketplace, adulteration, stealing supplies, falsification, etc.

For example: The cases of Enron, World Com are the examples of results of unethical decisions by key personnel of those enterprises. For example: The collapse of Enron is a scandal of a major energy provider that used to be the seventh largest corporation in America and became the biggest bankruptcy in the US corporate history.

Unethical issues are:

• Enron used many manipulative accounting practices,
• Sophisticated accounting techniques to keep its share price high,
• Raise investment against its own assets,
• Artificially inflated profits, questionable accounting practices and fraud.

For example: Ramalinga Raju. We all are aware of the fraud at Satyam – a case of unethical practice.

6. HOTS: (Higher Order Thinking Skills)

(i) The government launched a programme for pollution free zones and provides financial assistance to entrepreneurs. By inducing such assistance, Ms. A was induced to enter into entrepreneurship. This included in which category? Explain.

Solution:

It is based on motivating factor, included in the category of Induced Entrepreneur.

Induced Entrepreneurs:

• Induced entrepreneurs enter into entrepreneurship because of various governmental supports.
• Interested entrepreneurs get support from the government to set up of their new enterprises in terms of financial assistance (in the form of Grants and Aids) incentives, concessions and other facilities.
• Sometimes prospective entrepreneurs are induced or even forced by their special circumstance, such as loss of job or inability to find a suitable job according to their talent and merit to adapt to entrepreneurship.

(ii) What are the basic differences between Maslows and McClellands Theory of needs?

Solution:

Basic	Maslow's Hierarchy of Needs	McClelland's theory of Needs
1. Meaning	This theory was proposed by Abraham Maslow and is based on the assumption that people are motivated by a series of five universal needs. These needs are ranked, according to the order in which they influence human behaviour, in hierarchical fashion.	McClelland's Need for Achievement Theory is one of content theories of motivation emphasising that human needs and incentives cause human behaviour.
2. Outline	It actually outlines different things with very specific examples of what is in each level of need.	McClelland outlined what he believed are three basic needs present in all people (in different intensities).
3. Content	Maslow's Hierarchy of Needs - people try to satisfy the various needs according to a specific hierarchical pattern.	McClelland's Acquired Needs Theory needs are to some extent acquired and can therefore be influenced, just as several simultaneous needs influence a person's behaviour.
4. Levels of needs	The 5 levels of needs are: 1. Physiological 2. Safety/Security 3. Belongingness and Love 4. Esteem 5. Self-actualisation	The three needs motivate people are 1. Achievement 2. Affiliation 3. Power
5. Based on	This theory was proposed by Abraham Maslow and is based on the assumption that people are motivated by a series of five universal needs.	This theory was proposed by McClelland's and is based on the experiment, i.e. conducted, over 1,000 studies.
6. Order/layer of needs	Until the lower-layer needs are satisfied, they will not move to satisfy the upper-layer needs.	No specific level in employee's needs- there is no order for the three needs, no particular one has to come first or last.
7. Usefulness	Maslow's can help you to use the hierarchy to identify what drives your employees 1. Helps to understand people's needs. Helps to motivate employees. 2. Helps to decide rewards at each level. Helps in recognizing potential can be used to describe the kinds of information individual's seek at different levels of development.	McClelland's theory can help you to identify the dominant motivators of people on your team. 1. It can be used to for boosting morale in employees. 2. It can be used to influence how you set goals and provide feedback, and how you motivate and reward team members. It can also use these motivators to craft, or design, the job around your team members, ensuring a better fit.

(iii) “An entrepreneur who is fulfilling the ethics and moral responsibility towards society is an asset for society and should be survive and grow.” Explain.

Solution:

According to Prof. Robert Dahd, Ethics is an obligatory on the part of business enterprise to be a socially responsible as they primarily exist to benefit society. Mahatma Gandhi observed, “If God has given you more wealth it is for the welfare of others. Keep what you need and distribute rest among less fortunate brethren.”

The following are some ethical standards in their business practices like which is to be followed by an entrepreneur:

(а) Providing quality and correct quantity of goods to consumers.
(b) Paying adequate taxes to government.
(c) Giving true information to employee, bankers, consumers, creditors, government.
(d) Fair practices for promotion, compensation, lay-off, fringe benefits, other facilities.
(e) Give proper information to customers about dangers of using a product.
(f)  Respect property rights.
(g) Keeping in mind the environmental issues during production.
(h) Paying the minimum and correct wages to the workers.
(i)  Not to use child labour in their production.
(j)  Judicious use of natural resources.

All those entrepreneurs who is following the ethics and moral responsibility towards society is an asset for society and should be survive and grow.

Examples of such entrepreneurs:

• Parker brothers withdrew its best selling toy, when children were chocked to death by swallowing some parts of the toy and remain successful for long term.
• Nandita Bijur owner of Uma Food Products, an enterprise worth several crores of rupees.
• Karsan Bhai Patel, creator of Nirma Washing powder.
• Dhirubhai Ambani most successful entrepreneur of the world.

Their ethical value system provided them with rational economic attitude and successful entrepreneurs of the world.

Answer 9

(iv) “Many problems are bound to come in the path of progress, Ratan Tata shifted the manufacturing plant for Nano Cars from Singur to Sanand due to unforeseen complexities”. Which type of competency is shown here? Discuss.

Solution:

Type of competency is shown here is Problem Solving.

Competency relates to the type of behaviour exhibited in the performing of various tasks in the discharge of his functions. These competencies are latent in the entrepreneur, which need to be identified and acquire by which he should be able to face the problems with attention confidence and conviction. In the business world, problem solvers take risk but often create value by solving a problem related to, within a business or outside business like customer, market-key to creating a profitable enterprise. The more or larger problems an entrepreneurial organization solves, the more profit it can generate.

A business entrepreneur Ratan Tata is a person who had undertaken some effort with risk for the benefit of others. He was aware that, the venture he started was established on a new area and he has taken certain calculated risks, he was also aware
of, that many problems are bound to come in the path of progress, during that time only taken a firm decision and when any problems like unforeseen complexities had come in the path of progress, then only he had taken a firm decision and shifted the manufacturing plant for Nano Cars from Singur to Sanand.

It clearly shows that most of the entrepreneur identified and understand the problem, find more than one ways for solving problems and, look for alternative strategies or resources that would help to solve the problem, generate new ideas, products, services, etc. At last, He has taken an entrepreneurial action with systematic efforts to solve problems.

(v) “Raju is a 16 year young boy, working hard to earn his living. He also tries to save some part of his earnings to acquire basic education”. He falls in which level of need as propounded by Maslow in his Motivational Theory?

Solution:

Raju falls in Safety Needs as propounded by Maslow in his Motivational Theory. Reason: In the workplace this needs translates into a need for at least a minimal degree of employment security; the knowledge that we cannot be fired on a whim and that appropriate levels of effort and productivity will ensure continued employment.

7. Application Based Exercise:

Read the following story.

A young man was passing through a site of construction. He saw three labourers working at the site. He went to one of them and asked “What are you doing here?” The worker answered, “Don’t you see? I am making out a living. I am working to earn.”

The young man moved towards the second man and asked him the same question.

Pat came the reply “Don’t you see? I am constructing a wall”.

The young man moved towards the third man and repeated the same question.

The labourer replied “Don’t you see? I am building a beautiful mansion”.

Answer the following questions:

A) All the three were doing the same work, then what differentiates them?

B) What is important to do a piece of work effectively and efficiently?

C) Whose answer reflected a positive attitude?

Solution:

A) Yes, all the three labourers were doing the same work, their attitude to work differentiated them.

B) Right attitudes are important for doing work efficiently and effectively. An entrepreneur should have a right and positive attitude.

C) The third labourer, when he replied that “he is building a beautiful mansion”. As his attitude was right and positive.

Answer 10

MORE QUESTIONS

I. Very Short Answer Type Questions

1. How can an entrepreneur be classified based on the type of business?

Solution:

Depending on the nature, size and type of business, entrepreneurs are divided into the following categories:

1. Business Entrepreneur
2. Trading Entrepreneur
3. Industrial Entrepreneur
4. Corporate Entrepreneur
5. Agricultural Entrepreneur
6. Use of Technology:
   (i) Technical Entrepreneur (ii) Non-technical Entrepreneur
7. Professional Entrepreneur
8. Motivational Entrepreneur:
   (i) Spontaneous Entrepreneur (ii) Induced Entrepreneur
   (iii) Motivated Entrepreneur

2. How do sometimes prospective entrepreneurs become induced entrepreneurs?

Solution:

Sometimes prospective entrepreneurs are induced or even forced by their special circumstance, such as loss of job or inability to find a suitable job according to their talent.

3. What do you understand by Ethical Entrepreneurship?

Solution:

Ethical Entrepreneurship is an amount to the achievement of ethical goals through entrepreneurship.

4. Maslow defines one of the needs in the need hierarchy “As the desire to become everything one is capable of becoming.” Identify and explain.

Solution:

Self-actualisation needs refers to final stage under the need hierarchy model. It refers to self-fulfilment which means to become actualised in what one is potentially good and creative at. After his need is fulfilled a man has the desire for personal achievement. He want to do something challenging job, creative tasks, advancement opportunities and achievement in work. All those entrepreneurs who may achieve self-actualisation are called as a successful entrepreneur.

5. Give two examples of esteem needs.

Solution:

(i) Self-respect

(ii) Self-recognition

(iii) Self-image

6. Give two examples of self-actualisation needs.

Solution:

(i) Growth

(ii) Self-fulfilment

7. Define psychological needs.

Solution:

Psychological needs can be defined as the basic needs of the survival.

8. Give an example of security needs of an individual.

Solution:

Job Security.

9. Which needs are referred to as ‘Belonging Needs’?

Solution:

Sense of belongingness, affection.

10. Define Attitude.

Solution:

It may be defined as the way a person feels about something—a person, a place, a commodity, a situation or an idea.

11. Name two necessary backdrop for acquiring the sense of enterprise.

Solution:

The entrepreneurial values and attitudes provide the necessary backdrop for acquiring the sense of enterprise.

12. Define Ethics.

Solution:

Oxford definition of ethics:

“The characteristics, spirit and beliefs of community, people.”

13. Define Business Ethics.

Solution:

These are principles which govern business activities and provide a code of conduct for the managers and other concerned.

14. What happens in the absence of entrepreneurial competencies?

Solution:

In the absence of entrepreneurial competencies, the entrepreneur may be well oriented, but may not be successful in venture.

15. What do you think creativity is an ability of an entrepreneur or an activity of an entrepreneur?

Solution:

Creativity is not an activity but it is an ability to bring something new into existence and give some value to the product.

16. Who brings new things into existence?

Solution:

An innovator brings new things into existence, he only converts an idea into reality.

17. State the importance of entrepreneurial values and attitudes.

Solution:

The entrepreneurial values and attitudes provide the necessary backdrop for acquiring the sense of enterprise.

18. How an entrepreneur can develop the competency of creativity and innovation?

Solution:

By continuous practice.

19. Name the highest need in Maslow’s hierarchy.

Solution:

The highest need in Maslow’s hierarchy is that of self-actualization.

20. Name the lowest-level needs in Maslow’s hierarchy.

Solution:

Physiological needs are deemed to be the lowest level needs in Maslow’s hierarchy.

21. Who are called inherited entrepreneurs?

Solution:

Inherited entrepreneurs are those, who run the enterprise/firms which are passed from one generation to another. They inherit the family business.

22. Name the other term used for ‘Ethical Entrepreneurship.

Solution:

Ethical Entrepreneur is also merge with the terms ‘Social Entrepreneurship’, ‘Social Corporate Entrepreneurship’ and ‘Corporate Social Responsibility’.

23. Who are called as Professional Entrepreneurs?

Solution:

Professional entrepreneur first establish their business with a purpose and after that they sell it off to other to earn high amount of profit.

24. Name the entrepreneur who introduced the logo given and the idea behind the same.

Solution:

Mahima Mehra started Hathi Chaap. It was totally a new venture where different raw materials were tried out to make hand-made paper. After researching a lot, they found that elephant dung had more fibre content which made it easy to make hand-made paper

25. Name and explain the type of entrepreneur who seldom survive long.

Solution:

Drone Entrepreneurs:

The fourth type is the Drone Entrepreneurs, who refuse to copy or use opportunities that come their way. They are conventional in their approach. They are not ready to make changes in their existing production methods even if they suffer losses. They resist changes. They may be termed as laggards. They are the type of entrepreneur who seldom survive long.