An Entrepreneur — Entrepreneurship STD 11 Commerce — Question
CBSE BoardEnglish MediumSTD 11 CommerceEntrepreneurshipAn Entrepreneur5 Marks
Question
Explain any four entrepreneurial competencies.
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Answer
Initiative: One of the most fundamental competencies required for the entrepreneurs is the ability to take initiative. It is rather the first step in the enterprise. An entrepreneur has to be keen observer of the society, the commercial trends, the product types, the change dynamics and the consumer trends. Once he/ she decides to take the initiative, what matters is the speed with which he/ she is going to function.
Creativity and Innovation: Competency in creativity and innovation are sometimes basic traits of certain individuals. He/ she might not have any new ideas. He/ she may use the creative ideas and innovative products and services to meet the challenges of a situation, take advantage of the utility of an idea or a product to create wealth. Example, changes in the packaging of potato chips.
Risk Taking and Risk Management: An entrepreneur ventures into new ideas and new service. He/ she treads into areas of uncertainty. There are several elements such as demand supply in the market, resources availability, acceptability of the product design and service which throw a potential challenge to the entrepreneur. In order to attune oneself in the skill of risk taking and management he should practice in several areas of entrepreneurial functions such as entering into new market. For example, when Dhirubhai Ambani faced cash crunch he took the risk of issuing shares in 1977 to the public when they were not that aware about share market.
Problem Solving: Once an entrepreneur is aware that he has ventured on a new area and has taken certain calculated risks, he/ she should also be aware that many problems are bound to come in the path of progress. He/ she should understand that there is more than one way of solving problems, look for alternative strategies or resources that would help to solve the problem, generate new ideas, products, services etc. For example: When an entrepreneur faces cash crunch he should look for alternative sources for receiving funds. Ratan Tata shifted the manufacturing plant of Nano cars from Singur to Sanand due to unforeseen complexities.
Leadership: An entrepreneur should also be an effective leader who should be able to guide and motivate his/ her entire team. Whenever a company faces problem it is the will power and effective business acumen and communication skills which oversees the success of the corporation.
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