Entrepreneurship 3 Marks Question

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.

Innovative entrepreneurs are generally aggressive. They believe in experimentation and attractive possibilities into practice. They are one who quickly introduces new products, new methods of productions and new technology and explore new markets.

Entrepreneurial motivation may be defined as the process that activates the entrepreneurs to exert a high level of effort for the achievement of his/ her goals.
In other words, the entrepreneurial motivation refers to the drive or forces within an entrepreneur that affects his/ her direction, intensity and persistence of voluntary behavior.

The entrepreneurs who are technical by nature in the sense of having the capability of developing new and improved quality of goods and services out of their own knowledge, skill and specialisation are care called a technical entrepreneur. They are essentially compared to craftsmen who concentrate more on production than marketing.

They have to identify the potential market for his product in order to stimulate the demand and they push many ideas ahead of others in the form demonstration to promote their businesses.

Motivation theory is being considered the first theory that is being recalled is Maslow's hierarchy of needs which he has introduced in his 1943 article named as “A Theory of Human Motivation”. According to this theory, individual strives to seek a higher need when lower needs are fulfilled. Once a lower-level need is satisfied, it no longer serves as a source of motivation. Needs are motivators only when they are unsatisfied.

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.

1. Dhiru Bhai Ambani (Reliance).
2. Naresh Goyal (Jet Airways).
3. N.R. Narayan Murthy (Infosys).

An entrepreneur within a large firm, who uses entrepreneurial skills without incurring the risks associated with those activities. Intrapreneurs are usually employees within a company who are assigned a special idea or project, and are instructed to develop the project like an entrepreneur would. Intrapreneurs usually have the resources and capabilities of the firm at their disposal. The intrapreneur's main job is to turn that special idea or project into a profitable venture for the company.

Smart organisations will seek out individuals who like to invent, innovate, and want to be on the front lines of change. These individuals can work independently but even more important can work seamlessly as part of an integrated team structure and also effectively embrace and embody the culture of the entrepreneur's host organisation. Intrapreneurs are most successful when management empowers and supports them and in turn the Intrapreneurs represent the best interests of their organisations, while earning the respect of corporate peers.

Business ethics comprises of the study of proper business policies and practices regarding potentially controversial issues, such as corporate governance, insider trading, bribery, discrimination, corporate social responsibility and fiduciary responsibilities. Business ethics are often guided by law, while other times provide a basic framework that businesses may choose to follow in order to gain public acceptance.

1. Collaborators: These entrepreneurs are awarded with social skills which they use to influence other people to get what they want. They are good at running customer-service oriented business or retail business or any other business where being convincing is an important aspect of getting the job done right.
2. Diplomats: These entrepreneurs exhibit the quality of social skills coupled with the drive to succeed. They use skill and sensitivity in dealing with others. They also consider the views of the opposite party and work easily under pressure.

Planning provides a blueprint for building new enterprise. An entrepreneur is expected to have systematic planning which will help him to prepare an action plan for performing all the activities in every area of operation in order to achieve the pre-determined goals.

• It will also help the entrepreneur to carefully monitor his/ her business actual performance against desired performance and turn to other alternatives whenever the need arises; so as to achieve his/ her set goals.
• It helps to evaluating the positive and negative aspect associated with each alternative.

The imitative entrepreneurs are also revolutionary and important because they contribute to the development of underdeveloped economies.
Example: The local mobile companies using the same technology as big companies to manufacture their products.

In India few institutions like, Marico, manufacturers of Parachute hair oil, Saffola, Kaya Skin Clinic Industries have institutionalised innovation awards, where they receive 30-40 entries every year for innovations across the spectrum, including factories, brand, sales and HR, virtually covering the whole organisation.

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:

1. Technical Entrepreneur.
2. Non-technical Entrepreneur.

7. Professional Entrepreneur.
8. Motivational Entrepreneur:

1. Spontaneous Entrepreneur.
2. Induced Entrepreneur.
3. Motivated Entrepreneur.

An entrepreneur with a systematic and well defined plan has always more chances of success. Before commencing actual operation, he is required to develop. Every entrepreneur has limited resources in terms of time, finance and manpower. They invest their life’s saving and total energy in creating entrepreneurial ventures and cannot afford to lose or waste these. Before putting the whole enterprise into operation, he is required to develop a detailed blueprint of activities including all necessary information regarding the objectives of the business, legal, financial and administrative aspect, likely obstacles. It provides a blueprint for building new enterprise.

The Government of India has defined an enterprise owned and controlled by women having a minimum financial interest of 51 percent of the capital and giving 51 percent of the employment generated in the enterprise to women.

These are the most important values found among most of the entrepreneurs. They are guided by these values when they come out with creative ideas, new products, services, processes etc., to solve specific problems of the society.
Creativity is the ability to see new ways of doing things and innovativeness is the ability to make it work in practice. For example, earlier, hair oil was available only in tins and introducing it in plastic small packs has become convenient for customers to carry and use. Innovativeness can be seen through actions such as: Sachet Market – small sachet of shampoo, oil etc.

The word ‘motivation' has its origin in the Latin word ‘movere,' meaning "to move." Psychologically, it means an inner or environmental stimulus to action, forces or the factors that are responsible for initiation, sustaining behaviour.

The entrepreneurs have great respect for work. Successful entrepreneurs believe that they can achieve anything through hard work. This value provides goal direction which encourages them to pursue a path and career in which the rewards and incentives are linked to the degree and quality of efforts made.

Innovativeness can be seen through actions such as:

1. Experimenting with new ideas, e.g. introduction of debit and credit cards in the banking sector.
2. Facing uncertainty in order to try out new ideas.
3. Not giving up or becoming upset when errors occur.
4. Finding problems to solve.
5. Finding new use for existing methods or equipment.
6. Demonstrating originality.
7. Introducing changes, e.g. induction cook tops.
8. Providing critical inputs for the new ideas.
9. Providing evaluation of proposed ideas.

Following are the main features of drone entrepreneurs:

1. They are leggards as they continue to operate in their traditional way and resist change.
2. These entrepreneurs are not interested in revising and to make changes in their existing production methods even if they suffer losses.
3. They take least interest in finding out new resources, new methods or more time saving method and always refuse to copy or use opportunities that come their way.
4. Most of the time they struggle to survive not to grow.
5. They try to perform their functions in a routine manner.
6. When their product looses marketability and their operations become uneconomical, they are pushed out of market.
7. They do not survive for long period.
8. They are conventional in their approach.

Professional entrepreneurs make it their profession to establish business enterprises with a purpose, to sell them once they are established. He/ she is always looking forward to develop alternative projects by selling the running business. He is not interested in managing operations of the business established by him that is why they are called as dynamic entrepreneur.

1. Behaviour of all people is based on their needs. Satisfaction at each level will influence their behaviour.
2. Needs are always arranged in a hierarchical order, i.e. from lowest to highest.
3. A satisfied need can no longer motivate a person only next higher level need can motivate.
4. Next higher level movement of the hierarchy can only be possible, if the lower level need is satisfied.

Attitude cannot be directly observed as it constitutes a psychological phenomenon. However, we may observe an attitude indirectly through observing its consequences. For example, if a person is highly productive, we may infer that he has a positive attitude towards his work.

They have the ability to convert economic resources and technology into a profitable venture.
Example: Enterprises like Hero Motorcorp and Hyundai Corporation.

The five essential attitudes of an entrepreneur are as follows:

1. Have passion for business: An entrepreneur should have a passion for his/ her business which will help them to overcome difficult moments, generate trust among people and persuade others to do business with them. However, passion cannot be taught, it is an in-born feeling.
2. Set an example of trustworthiness: People have confidence in trustworthy individuals and want to work for them in a culture of integrity. The same is true for customers. They want to buy from entrepreneurs they trust. So, an entrepreneur should be trustworthy.
3. Be flexible, except with core values: Flexibility is important for success in today's dynamic environment. So, plans and strategies are bound to change with changing times. However, no matter what the pressure for immediate profits, an entrepreneur should not compromise on core values.
4. Don't let fear of failure hold one back: Failure is an opportunity to learn. All things being equal, venture capitalists would rather invest money in an individual, who tried and failed founding a company than in someone who never tried.
5. Make timely decisions: An entrepreneur should always take timely decisions based on his/ her intuition. Planning and thought are good, but procrastination (delaying to a future date) leads one to miss opportunities.

Esteem needs include the desire for self-respect, self-esteem, and the esteem of others. When focused externally, these needs also include the desire for reputation, prestige, status, fame, glory, dominance, recognition, attention, importance, and appreciation.
An individual eventually needs to feel that he/ she has a social status. This goes beyond just having social relationships; the individual must feel that in work or at home he/ she is making a contribution. This also includes recognition of achievement from others. And the need to feel good about themselves.

Following are the main features of Fabian entrepreneurs:

1. They are shy, inactive and basically lazy and do not show any enthusiasm.
2. They are not interested and willing to accept risk and likely to perform only such activities where success is guaranteed.
3. They are also influenced by customs, traditions, religions and past experiences.
4. Most of the time they adopt old age or traditional method of production.
5. They are very cautious, timid and skeptical while practicing any change.
6. They do not venture or take risks.
7. They are rigid and fundamental in their approach.
8. Usually, they are second generation entrepreneurs in a family business enterprise. They follow the footsteps of their predecessors.
9. They are generally found in underdeveloped countries

Some examples related to the ethical standards followed by an entrepreneur are as follows:

1. Providing quality and correct quantity of goods to consumers.
2. Keeping in mind the environmental issues during production.
3. Paying the minimum and correct wages to the workers.
4. Not to use child labour in their production.
5. Judicious use of natural resources.

1. The characteristics exhibited by trailblazers are as follows:

1. Innovativeness.
2. Logical.
3. Analytical.
4. Practical.
5. Realistic.

2. The characteristics exhibited by authoritarians are as follows:

1. Arrogant.
2. Cautious.
3. Deliberate.
4. Analytical.
5. Logical.

The characteristics which are common to both are that they are logical and analytical.

Intrapreneurship has become a necessity because of the below mentioned reasons:

1. It helps organisations to grow.
2. It provides an environment conducive for innovation.
3. It helps organisations to effectively manage change.
4. It provides a platform to engage employees in work that is challenging and meaningful.

First Generation Entrepreneurs are those, who start the business on the basis of his/ her innovative skills. With innovation, new and improved ideas they develop and use an innovative business plan. They always use the modern concept of marketing and create large number of customers by fulfilling and satisfying their demands. They can also compete fiercely by standing against those businesses who follow the traditional business norms. The first generation entrepreneur is driven by his own belief and he is the master of his own fate. They do not have any family entrepreneurial background prior to start his/ her own business venture. Entrepreneur is very innovative, decision-maker, risk-taker, leadership quality, etc.

Fabian Entrepreneurs: The third type of Entrepreneurs are the Fabian Entrepreneurs. Such entrepreneurs are very shy and lazy. They are very cautious. They do not venture or take risks. They are rigid and fundamental in their approach. Usually, they are second generation entrepreneurs in a family business enterprise. They follow the footsteps of their predecessors. They imitate only when they are sure that failure to do so would result in a loss of the relative position in the enterprise.

Some ethical practices that can be followed by a business are as follows:

1. Providing good quality and correct quantity of goods to consumers.
2. Keeping in mind the environmental issues during production.
3. Paying the minimum and correct wages to the workers.
4. Not to use child labour in their factories.
5. To make judicious use of natural resources.

Following are the main features of innovative entrepreneurs:

1. They are one who quickly introduces new products, new methods of productions and new technology.
2. They explore new markets and new sources of supply of raw-materials.
3. They are generally aggressive in experimentation and put attractive possibilities into practice.
4. They convert technical resources into economic performance and give new value to the product
5. They always apply new improvised techniques to provide better goods and services.
6. They are generally found in developed countries.
7. Example: Walt Disney who started huge theme parks such as the Disney Land.

Motivation is essentially a process. It can be well expressed in the form of a model.

On a careful analysis of the model, it can be understood that every individual possesses an urge or a need, or a multitude of needs, desires or expectations. The unsatisfied need leads to tension within the individual and motivates one to search for ways to relieve one's own tension. That tension leads one to certain drives and searching alternatives to achieve one's goal which will eventually reduce tension.

Some common examples of unethical action by an enterprise or an entrepreneur:

1. Theft.
2. Manipulating suppliers.
3. Bribery.
4. Embezzlement.
5. Evading Taxes.
6. Failure to withdraw a defective product from the market place.
7. Adulteration.
8. Stealing supplies.
9. Falsification.

The various attitudes possessed by Manish are as follows:

1. Set an example of trustworthiness Lines from the passage which are indicative of this attitude is, 'He is well trusted by his customers'.
2. Be flexible Lines from the passage bringing forth this attitude is, 'With changing times, he has also ........... white gold jewellery'.
3. Have passion for business Lines from the passage indicative of this attitude are, 'He loves his business, .... last to leave.
4. Rebound quickly from setbacks Lines which bring forth this attitude are, 'He had also ventured into ......... initiating certain other ventures'.

Value exhibited by Manish Being sensitive to his customers' needs.

1. Fabian entrepreneurs are very shy and lazy.
2. They are very cautious and skeptical while practising any change.
3. Their dealings are determined by costumes, religion, tradition and past practices and experience.
4. They do not venture or take risks. They are rigid and fundamental in their approach.
5. They are second generation entrepreneurs in a family business enterprise. They follow the footsteps of their predecessors.
6. They imitate only when they are sure that failure to do so would result in a loss of the relative position in the enterprise.

Entrepreneurial competencies are as follows:

1. Creativity and Innovation.
2. Risk Taking and Risk Management.
3. Problem Solving.
4. Leadership.
5. Persistence.
6. Quality Performance.
7. Initiative.
8. Information seeking.
9. Systematic Planning.
10. Persuasion and Influencing Others.
11. Enterprising Launching Competencies.

Persistence: Persistence is one of the most important competencies because this quality enables the entrepreneur to continue with the task and also to fight against the difficulties and obstacles faced. Hard-work always leads to the success of the enterprise.

Women entrepreneurs are those who belong to female sex. They establish a business enterprise, initiate it, organise all resources, operate and undertake risk and give contribution for the growth of the countries. They are generally found in developed and developing countries.

Yes, I do agree that Intrapreneur is necessary for an organisation. The reasons are:

• It is the best way to retain the talented, creative and innovative staff, who transform a dream and idea into viable project.
• It describes easiest way of developing new product and services within the company through him.
• Intrapreneur’s new way of thinking making organisations.

Entrepreneurs have a science and technology background who is building a business where technology is core to the business. For example: N.R. Narayan Murthy (Infosys).

Kinetic Engineering Limited is the flagship company of Firodia Group of companies, one of the pioneering groups in automobiles in India, founded in 1972 by Mr. H.K. Firodia.

The company encourages employees to use their time efficiently for innovation in its upcoming products. The Kinetic Zing model of bicycle was the idea of an employee working in the corporation.

1. Believe in oneself: An entrepreneur needs to believe in himself/ herself and in his/ her venture and the belief that he/ she will be successful. This belief will also motivate his/ her employees and investors.
2. Maintain a strong work ethic: An entrepreneur should himself/ herself maintain a strong work ethic. Only then, their employees would follow them.
3. Rebound quickly from setbacks: As an entrepreneur, builds up his/ her venture, there must be many ups and downs, he/ she should learn from these setbacks and move forward. He should not dwell on his failures.

1. Enterprise launching competencies: A lot of opportunities exists in the environment. Entrepreneurs respond to those opportunities and make efforts to ensure the best use of the resources which are available to all. Entrepreneurs should have the competency to identify opportunities and avail and facilitate the resources needed to launch their enterprise.
2. Enterprise management competencies: An enterprise, whether big or small, demands management abilities. Various management functions such as production, marketing, finance, etc are crucial functions of an entrepreneur. These influence the result directly and therefore are necessary determinants for the sustenance of an enterprise. So, an entrepreneur should have management competency.