Entrepreneurship 3 Marks Question

1. The business barrier which Mamta has to face is perceptual barrier.
2. It belongs to the category of personal barrier.
3. One more barrier of this category is motivational barrier. The drawback brought forward by the above case is that the Indian society is gender biased.

They may result from:

1. Strikes and lock-outs by trade unions;
2. Negligence and dishonesty of an employee,
3. Accidents or deaths in the industry;
4. Incompetence of the manager or other important people in the organization.

The factors which are responsible for economic development such as land, labour, capital, material, market etc., are equally responsible for the development of entrepreneurship. Thus, an environment, where all these factors are available to the entrepreneurs, will naturally support and promote entrepreneurship. On the other hand, if any of these factors are not available or of inadequate quality and quantity, they can become barriers to entrepreneurship.

IDC, a market research firm, suggests that:

1. The amount of digital information created each year will increase to 35 trillion gigabytes by 2020,
2. This will require 44 times more data storage than in 2009,
3. Telemetric applications, similar to GPS(global positioning systems), will allow organizations to send, receive and store information via telecommunications devices while controlling remote objects,
4. Telemetric applications are now being used in medical informatics, healthcare and other fields.

Dr. John Harvey Kellogg was superintendent of a famous hospital and health spa in Battle Creek, Michigan. His hospital stressed healthful living and kept its patients on a diet that eliminated caffeine, meat, alcohol and tobacco. One day, after cooking some wheat, the men were called away. When men returned, the wheat had become stale. They decided to force the tempered grain through the rollers anyway. But surprisingly, each wheat berry was flattened and came out as a thin flake. On baking the flakes and were realized that they have made a new invention i.e. a delicious cereal. Keith Kellogg, brother of Dr. Kellogg eventually opened his own cereal business which became the famous brand Kellogg's Corn Flakes.

Risk are of following types:

1. Insurable Risks: These are related to life and property against fire, theft, accidents etc.
2. Non-insurable: These are the risks whose probability cannot be determined and which cannot be insured against. For example: Fluctuations in price and demand. These are further divided into two types:

• Internal Risks: Those risks which arise from the events taking place within the business enterprise.
• Business risks: These are of a diverse nature and arise due to innumerable factors. These risks can be insurable or non-insurable.

3. Dynamic risks: Risks which are caused by changes in the economy are known as 'dynamic risks'. These are generally less predictable because they do not appear frequently.

Insurable risks are those which can be covered through different types of insurance policies. The probability of an insurable risk can be determined, in other words such risks can be forecasted. Insurable Risks are related to life and property against fire, theft, riots etc.

1. Need of customer detail: In order to attract a customer, the entrepreneurs have to know the customer in detail so that they can know about those customers who are loyal to their product and the company.
2. Understanding taste and preference of customers: Information collected about the customers related to age, regularity of customer to the shop, preference of purchase etc. enable the firm to understand the taste and preference of the customer so that customer services can be improved in a better way.
3. Competition: Firms are now competing on analytics to differentiate themselves. The growing number of methods of data collection, growing number of data collecting firms, ways of analysis are generating immense quantities of information.

The origin of the term cloud computing appears to be derived from the practice of using drawings of stylized clouds to denote networks in diagrams of computing and communications systems. The word cloud is used as a metaphor for the internet, based on the standardized use of a cloud-like shape to denote a network. Cloud computing helps the firms to upload all its data on to a cloud and then it can be used it remotely wherever it is required.

Examples of some social entrepreneurs of India
Vinoba Bhave: Founder and leader of the Bhudaan Andolan (Land Gift Movement), he caused the redistribution of more than 70,00,000 acres of land to aid India‘s untouchables and landless.
Ela Bhatt: Founded in 1972, Self-Employed Women‘s Association (SEWA) is a rare trade union of poor, unorganised, self-employed women who work as vendors, hawkers and labourers.

Problem solvers:

1. Take risks,
2. Often create value by solving a problem faced by customer or market.
3. Able to create a profitable enterprise.
4. The more or larger problems are solved by them, the more profit they generate.

According to Martin & Osberg,- the Social Entrepreneur aims for value in the form of large-scale transformational benefit that accrues either to a significant segment of society or to society at large.”
Moreover, the social entrepreneur targets his/ her programs at the - underserved, neglected, or highly disadvantaged population that lacks the financial means or political clout to achieve the transformative benefit on its own.”

Emerging markets will create plenty of opportunities related to smart technology, by interconnecting with the world by providing more powerful devices and applications, at the same time introducing more cost-effective technology and meeting the demand of the consumers. In Kenya, for example, mobile phones are being used to collect data and report on disease-specific issues from more than 175 health centres serving over 1 million people. This technology has reduced the cost of the country's health information system by 25% and cut the time needed to report the information from four weeks to one week.

Following are the examples of problem solution:

1. Bigger boats were used for carrying more fishes.
2. Installation of freezers on the big boats for storing the fishes.
3. Installation of fish tanks for providing fresh fish in the market.
4. To improve taste of the fresh fish in the tank shark were kept along with the fishes.

An entrepreneur is a person who undertakes risk and tries to resolve the problems faced by the society and earn profit in this process. Entrepreneurial actions are efforts to solve problems of others. When one solves a problem, a new value is created which leads to the creation of a new profitable enterprise.
It can be represented as:

1. Insurable risks are those which can be covered through different types of insurance policies.
2. The probability of an insurable risk can be determined, means can be forecasted.
3. It is related to life and property against fire, theft, riots, etc.

There is a growing need for Social Entrepreneurs because of following reasons:

1. Social problems: In the current economic crisis, financial pressures are becoming a reason for the increase of intensity of social problems such as poverty and unemployment.
2. Financial repercussions: According to J. Gregory Dees, social entrepreneurship is essential to reduce the financial consequences among vulnerable.
3. Creativity and Innovation: With pay-cuts and job losses a common phenomenon all over the world, the need of the present is new ideas, innovations, creative solutions and fresh perspectives. These new ideas, etc. have potential to deal with the changing market demands, emerging economies and a new world, economic order.

Following functions are performed by SEWA:

1. Initially, SEWA provided the required capital to the co-operatives.
2. The members of the co-operatives share their skills and expertise, develop new tools, designs and techniques.
3. Members are engaged in joint marketing efforts.
4. SEWA is helping women to get regular employment, easy access to credit, childcare, healthcare facilities.

Economic factors are the most important cause of external risks. They result from the changes in the prevailing market conditions in the form of:

1. Change in demand for the product.
2. Price fluctuations.
3. Change in tastes and preferences of the consumers.
4. Change in the income of the consumer.
5. Change in the output of the competing firm.
6. Change in trade cycle.
7. Increase in competition for the product.
8. Inflationary tendency in the economy.
9. Rising unemployment in the country.
10. Fluctuations in the world economy.

The risks associated with this factor are generally less predictable because they do not appear at regular intervals.

Dynamic risk occurs due to changes in the economy like changes in demand for the product inflationary tendency in the economy, rising unemployment and fluctuations in the world economy and this type of risk are generally less predictable because they do not appear at regular intervals.
For instance:

1. Due to market fluctuations, a well-known product of a firm may either lose its demand or may occupy a larger market share.
2. Black and White TV to Flat screen, high definition TV.

Following is the difference between Entrepreneurship and Social Entrepreneurship:

1. The entrepreneur's final objective is wealth creation but for the social entrepreneur, wealth creation is simply a means to an end.
2. The entrepreneur participates in entrepreneurial venture with the aim of earning profit. On the other hand, the social entrepreneur participates in profit seeking business ventures if only to use the profits generated to create valuable social programs for the whole community.
3. Entrepreneur has individual motive of self-development where as social entrepreneur has the motive of societal development.

The power of social media for the entrepreneurial ventures can be understood as under:

1. Needs and wants: Through the new possibilities for social listening, businesses are able to better understand the needs and wants of the customers.
2. Changes: More change are expected as the generation that has grown up with new technologies and instant information gratification joins the workforce after completing their desired educational attainment.
3. New form of businesses: Creation of new forms of business enterprises is expected in the near future which is going to change the way business ethics and the procedures.

1. The entrepreneur’s final objective is wealth creation but for the social entrepreneur, wealth creation is simply a means to an end.
2. The entrepreneur participates in entrepreneurial venture with the aim of earning profit. On the other hand, the social entrepreneur participates in profit seeking business ventures if only to use the profits generated to create valuable social programs for the whole community.
3. Entrepreneur has individual motive of self-development whereas social entrepreneur has the motive of societal development.

Institutions involved in Entrepreneurship Development Program (EDP):

1. National Institute for Entrepreneurship and Small Business Development (NIESBUD)
2. Indian Institute for Entrepreneurship
3. National Institute for Micro, Small and Medium Enterprises (NIMSME)
4. National Small Industries Corporation (NSIC)

Incubators help the companies/ firms to secure capital in following ways:

1. Helps in connecting companies with angel investors (high-net-worth individual investors).
2. Working with companies to perfect venture capital presentations and connecting them to venture capitalists.
3. Helping and guiding companies in applying for loans.
4. Helping and guiding companies in accessing government agency.

1. In the last quarter of 2010, sales of smart phones overtook the sale of Personal Computers for the first time.
2. By 2014, more smart devices could be used to access the internet than traditional computers.
3. More mobile world is creating new players and new opportunities for a variety of industries.
4. Smart mobility will enable firms to profit more quickly from new technology.

Over the past 25 years, digital revolution has changed the way a business works, by providing them with a cost effective technology to cope up with increasingly complex challenges. However, the growing needs of the business demand for more complex and efficient technologies. Satisfying these demands of business will lead to an explosive growth in data and analytics, new competition in almost every field and disruption and realignment of many industries.
Emerging market will create plenty of opportunities related to smart technology, both in profit and non-profit organisations.

Following are the similarities between Entrepreneurship and Social Entrepreneurship:

1. Creation: Both, entrepreneur and the social entrepreneur believe in creation of something new.
2. Profit: Both aim for earning profit from the venture.
3. Development: Both work for development of the society though with different motives.

The various factors giving rise to internal risk:

1. Human Factors: Due to involvement of human beings.
2. Technological Factors: Due to unforeseen changes in the techniques of production.
3. Physical Factors.

What he was trying to make: Ironically, Fleming was searching for a 'wonder drug' that could cure diseases. However, it wasn't until Fleming threw away his experiments that he found what he was looking for.
How it was created: Fleming noticed that a contaminated petri dish, he had discarded, contained a mould that was dissolving all the bacteria around it. When he grew the mould by itself, he learned that it contained a powerful antibiotic, penicillin.

The importance of business intelligence is as follows:

1. Strategy: Business intelligence is used to make better strategic decisions.
2. Data: Business intelligence, enables organizations to gather quantifiable data on each area of the organization.
3. Analysis: Business intelligence, enables organizations to analyse data in a way that yields information they can act on.
4. Efficiency: It helps firms to enhance decision-making, improve performance and mitigate risk.

1. Internal risks are those risks which arise from the events taking place within the business enterprise.
2. Such risks arise during the ordinary course of a business.
3. These risks can be forecasted and the probability of their occurrence can be determined.
4. They can be controlled by the entrepreneur to an appreciable extent.

Yes, Gaurav's friends are correct. Government of India has launched a number of schemes to assist entrepreneurs.Some of these are as follows:

1. SIDBI micro finance programme.
2. MSME national award scheme.
3. Small industry cluster development programme, etc.

Vishakha's business has suffered due to the political factor.
These factors result from political changes in a country such as:

1. Fall or change in government.
2. Communal violence or riots in the country.
3. Civil war.
4. Hostilities with trading countries, etc.

Value violated by gulf countries: Going against the principle of universal brotherhood.

The new technological advancements are as follows:

1. Information collection.
2. Business intelligence.
3. Smart mobility.
4. Cloud computing.
5. Power of social media.

Value communicated by Swarna: By dealing in handicrafts, Swarna is trying to promote the rich cultural heritage of our country.

The factors responsible for business risks can be classified as:

1. Internal factors: These are those factors which arise from the events taking place within the business itself. Since these factors arise from within an organisation, therefore, they can be controlled by the entrepreneur to a certain extent.
2. External factors: These are those factors which arise due to the events occurring outside the business organisation. Such factors are generally beyond the control of an entrepreneur.

In the current economic crisis, financial pressures are further worsening the existing social problems of poverty and unemployment. According to J Gregory Dees, “Social entrepreneurship is necessary to mitigate the financial repercussions among vulnerable".
With pay cuts and job losses happening all over the world, the needs of the hour are ideas, innovations, creative solutions and fresh perspective that can cater to the changing market demands, emerging economies and a new world economic order and social entrepreneurs fulfil these needs.