Back to


Assignment No. 1
Assignment No. 1 - Definition
Assignment No. 1 - Concept
Assignment No. 1 - Content

Disclaimer:- Students are advised not to copy blindly from here, this website should only be used as a reference and not for completion. Please search on Google and use this only on the last moment for saving your life! I am not responsible for the accuracy of the content provided on this site. This website is in no way related to any Educational Institute or Board, it has been created by a student to provide help and give guidance to other students.

Chapter No. 1 Entrepreneurship, Creativity & Opportunities

1.1) Concept, Classification & Characteristics of Entrepreneur
1.2) Creativity and Risk taking.
1.2.1) Concept of Creativity & Qualities of Creative person.
1.2.2) Risk Situation, Types of risk & risk takers.
1.3) Business Reforms.
1.3.1) Process of Liberalization.
1.3.2) Reform Policies.
1.3.3) Impact of Liberalization.
1.3.4) Emerging high growth areas.
1.4) Business Idea Methods and techniques to generate business idea.
1.5) Transforming Ideas in to opportunities transformation involves Assessment of idea & Feasibility of opportunity SWOT Analysis

Entrepreneurship is the act of being an entrepreneur, which can be defined as "one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods". This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity.

It has assumed super importance for accelerating economic growth both in developed and developing countries. It promotes capital formation and creates wealth in country. It is hope and dreams of millions of individuals around the world. It reduces unemployment and poverty and it is a pathway to prosper. Entrepreneurship is the process of exploring the opportunities in the market place and arranging resources required to exploit these opportunities for long term gain. It is the process of planning, organising, opportunities and assuming. Thus it is a risk of business enterprise. It may be distinguished as an ability to take risk independently to make utmost earnings in the market. It is a creative and innovative skill and adapting response to environment

1.1) Concept, Classification & Characteristics of Entrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative. The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to help launch a new venture or enterprise and accept full responsibility for the outcome.

Classification of Entrepreneurs:-
i)Social Entrepreneur
ii)Serial Entrepreneur
iii)Lifestyle Entrepreneur

1)Social Entrepreneur:-
A social entrepreneur is motivated by a desire to help, improve and transform social, environmental, educational and economic conditions. Key traits and characteristics of highly effective social entrepreneurs include ambition and a lack of acceptance of the status quo or accepting the world "as it is". The social entrepreneur is driven by an emotional desire to address some of the big social and economic conditions in the world, for example, poverty and educational deprivation, rather than by the desire for profit.

2)Serial Entrepreneur:-
A serial entrepreneur is one who continuously comes up with new ideas and starts new businesses. In the media, the serial entrepreneur is represented as possessing a higher propensity for risk, innovation and achievement. Serial entrepreneurs are more likely to experience repeated entrepreneurial success. They are more likely to take risks and recover from business failure.

3)Lifestyle Entrepreneur:-
A lifestyle entrepreneur places passion before profit when launching a business in order to combine personal interests and talent with the ability to earn a living. Many entrepreneurs may be primarily motivated by the intention to make their business profitable in order to sell to shareholders. In contrast, a lifestyle entrepreneur intentionally chooses a business model intended to develop and grow their business in order to make a long-term, sustainable and viable living working in a field where they have a particular interest, passion, talent, knowledge or high degree of expertise.

Characterstics of Entrepreneur:-
According to Schumpeter (1934), the capabilities of innovating, introducing new technologies, increasing efficiency and productivity, or generating new products or services, are characteristics of entrepreneurs. Entrepreneurs are catalysts for economic change. Research has found entrepreneurs to be highly creative with a tendency to imagine new solutions by finding opportunities for profit or reward.

1.2) Creativity and Risk Taking

Creativity refers to the phenomenon whereby a person creates something new (a product, a solution, a work of art, a novel, etc.) that has some kind of value.

Risk Taking:-
Rist Taking is an integral part of business and life. Risk taking refers to the tendency to engage in behaviors that have the potential to be harmful or dangerous, yet at the same time provide the opportunity for some kind of outcome that can be perceived as positive.

1.2.1) Concept of Creativity & Qualities of Creative Person
Concept of Creativity:-
Creativity is the ability of a person or group to make something new and useful or valuable, or the process of making something new and useful or valuable.

Qualities of a Creative Person:-
i) Curiosity
ii) Seeing Problems as Interesting and Acceptable
iii) Confronting Challange
iv) Constructive Discontent
v) Optimism
vi) Suspending Judgement
vii) Seeing Hurdles as Leading to Improvement and solutions
viii) Perseverance
ix) Flexible Imagination

1.2.2) Risk Situation, Types of Risk & Risk Takers

Risk Situation:-
Situation where there is a chance of either loss or no loss, but no chance of gain.
eg.:- either a building will burn down or it won't.

Types of Risk of an Entrepreneur:-
i) Financial Risk:- Financial risk is normally any risk associatedwith any form of financing. Risk is probability of unfavorable condition; in financial sector it is theprobability of actual return being less thanexpected return.
ii) Market Risk:- Market risk is the risk that the value of an investment will decrease due to moves in marketfactors.
iii) Technology Risk:- It is the process of managing the risks associated with implementation of new technology in the business.
iv) Political & Economic Risk:- The risk of loss wheninvesting in a given countrycaused by changes in a country'spolitical structure or policies, suchas tax laws, tariffs (tax paid on import or export), expropriation of assets, or restriction inrepatriation of profits.
v) Operational Risk:- An operational risk is a risk arising fromexecution of a company's business functions.For example the breakdown of key equipment,human error and technical failure.
vi) Environmental Risk:- The risk associated with economic oradministrative consequences of slow orcatastrophic environmental pollution. For eg. Disasters

1.3) Business Reforms.
The reform process in India was initiated with the aim of accelerating the pace of economic growth and eradication of poverty.
1.3.1) Process of Liberalization.
The process of economic liberalization in India can be traced back to the late 1970s. However, the reform process began in earnest only in July 1991. It was only in 1991 that the Government signaled a systemic shift to a more open economy with greater reliance upon market forces, a larger role for the private sector including foreign investment, and a restructuring of the role of Government. 1.3.2) Reform Policies.
The economic reforms initiated in 1991 introduced far-reaching measures, which changed the working and machinery of the economy. These changes were pertinent to the following: 1.3.3) Impact of Liberalization.
The reforms of the last decade and a half have gone a long way in freeing the domestic economy from the control regime. The reforms have unlocked India's enormous growth potential and unleashed powerful entrepreneurial forces.

1.3.4) Emerging high growth areas.
i) Automobiles Industry
ii) Software Industry

1.4) Business Idea Methods and techniques to generate business idea.
1. Alternative approaches to existing innovations:-
You identify innovations that are coming to the market and look for alternate solutions that will address the same need or alternate needs that could be addressed with the same solution.
2. Brainstorming – it is a group method for obtaining new ideas and solutions. It is based on the fact that people can be stimulated to greater creativity by meeting with others and participating in organized group experiences.
3. Problem inventory analysis– it is a method for obtaining new ideas and solutions by focusing on problems. This analysis uses individuals in a manner that is analogous to focus groups to generate new product areas.
4. Market Research – You can do this on your own very easily. Ride around your intended market area and see what types of businesses are present. If there are four drycleaners, that’s probably not the business for you.
Look at busy stores and shops and talk with their owners.

1.5) Transforming Ideas in to opportunities transformation involves Assessment of idea & Feasibility of opportunity SWOT Analysis
U need to cut some part from this otherwise your assignment would become too large...Bt u can use d content below as reference nd then select what to write...:-)

Transform ideas into business opportunities:-
Coming up with a practical business concept often requires more than just a brainwave. Budding entrepreneurs can get so excited about getting a bright idea – and imagining the possibilities – they forget to take a practical approach:- 1. Look to the marketplace:-
Being an entrepreneur is all about understanding the world around you. It’s about perceiving a situation and identifying where you can make a contribution. Take notice of the small businesses in your local area. Consider which businesses are growing and which are slowing down. Really try to examine the business trends in your local marketplace. Perhaps try to determine what services your community still needs that are not being met. See if you can fill these gaps in the market by offering a service which is not yet provided.
2. Start small:-
To be an entrepreneur does not necessarily mean that you need to invent something entirely new. Your entrepreneurial idea does not need to be extravagant or even excellent. Some of the best business ideas are remarkably simple. Entrepreneurship is sometimes more about harnessing skills that you already have and tapping into a market that already exists rather than re-inventing the wheel. If your business idea fulfills a need, there’s more chance it will be effective.
3. Know yourself:-
Consider yourself as a central part of the business idea. What skills do you have to make it a success? What skills do you need to build on? To really grow a business idea into a business opportunity it is necessary to bear your personality traits and desires in mind. If you think of a business concept that could succeed but can’t imagine yourself in that line of business, maybe think again. Do something that you enjoy and that suits your value system. Why not turn your passion into a business? Many successful entrepreneurs followed their hearts all the way to accomplishment.
3. Ask and Find out: Research:-
Go out and find some more information about your business idea. You can gather information from so many sources;
Research is an invaluable means of determining the opportunities present for your business idea. Through accessing information you will get a better sense of your idea and a gain a better understanding of its potential. A good way to start may be to create a list of questions and set off with a plan to get them answered.
4. Brainstorm it:-
Why not ask your friends or those close to you what they think about your idea. A great way to see how well you’ve thought it through is to describe it to someone else. Discussing and talking about your idea may fuel other ideas and find you some business partners along the way.
5. Test it out:-
Before heading to the bank to find capital, try and test your idea in the marketplace. Select a sample of people in your target market to ask whether they would be interested in your product/services. Think smart – would you be interested in your own product/service? This may be a good way to check if you’re on the right track.

View MyStats