Question No. 1 What do you mean by entrepreneur and entrepreneurship.

Explain the
main characteristics of both. What are the main features of entrepreneurship.

Answer : The word entrepreneur has been drive from the French word entrepreneur. In
the common way entrepreneur is a person who runs a business. In the term of management an
entrepreneur is a person who creates his own business, organizes, operates and assumes the risk of
business. Hence it can be say that no any business can be developed without an
entrepreneur. Entrepreneur is the base of the business.

An entrepreneur is neither a technician nor a financier but he is considered as an innovator who perform
a vital function in economic development of the business.

Definition : An entrepreneur is a person who run the business, bear risk, organize the
functioning and promote good and new methods for development of the business.


Characteristics of Entrepreneur :

An entrepreneur should be a high achievement oriented, enthusiastic and energetic individual. An
should have following characteristics :-

Entrepreneur is action oriented, highly motivated and should have capable to take risk to achieve the
goals.

A successful entrepreneur can accept responsibilities with enthusiasm and endurance.

An entrepreneur should be creative and result-oriented, hard working in retu for personal and financial
rewards as well as positive minded.

Entrepreneur should be self confidence, dedicated, capable to setting self determined goals and
markets .


Entrepreneur are considered as thinkers, doers, planners and workers.

Entrepreneur depends on the intelligence, imagination and strength of purpose of the individuals.


Entrepreneurship : It is generally used as synonymous of the entrepreneur. In the common way it
is a function perform by an entrepreneur showing the purposeful activities. In the term of management
entrepreneurship always refers to a process of action which has creative and innovative response. In the
other way entrepreneurship is the process of actions which shows the abilities to discover, create or
invent opportunities and brings prosperity to the entrepreneur as well as enterprises.

The main Characteristics of Entrepreneurship : The main Characteristics of Entrepreneurship are listed
below:-

Ability to create enterprise: It is basically and primarily an economic activity in which creation and
operation of an enterprise are involve. It is conceed with satisfying the basic needs of customer with the
supporting help of production and distribution of goods and services.

Organising function : It bring various factors together for in economic use. It is capable to co-
ordinates and controls the factors of production, efforts of the persons engaged in the enterprise.

Innovation : It is an automatic and creative response to changes in the environment. It involves
innovation of some new things and create better conditions for growth of the economy.

Risk bearing capacity: An entrepreneur guarantees for rent to the landlord, wages to employees and
interest to the investors in the hope of eaing more than the expenditure. Hence risk is an inherent and
inseparable element of the entrepreneurship.

Managerial and leadership functions : Managerial and leadership skills are the additional personality
traits of an entrepreneur. Having these qualities like as action oriented, working relation and creative
integration are required for making profit. Tactful handling of risk and uncertainties are required every
steps because new commodities and their acceptability are uncertain.

Gap filling : The gap filling between human needs and the available products and serves leads to
entrepreneurship. A successful entrepreneur identifies the gap and take necessary measures fin the
gap.








Main features (Traits) of Entrepreneur :

It is true that an entrepreneur is one who has more capacities in the task of organisaing and co-
ordinating the various factors related with the production. An entrepreneur should be a pioneer, a
captain of industry. In the mode ear of competition only a successful entrepreneur can be detect and
evaluates new situation in the industrial environment and he can directs the making of adjustments in
the economic way as he deems necessary. He can conceives new industrial enterprise, displays
considerable initiative. The following trains / features are required for a successful entrepreneur.


1. Mental ability:- Intelligence and creative thinking of the individual or an entrepreneur
are includes in his mental ability. An entrepreneur should be intelligent and he should be analytical
minded. He should be capable to solve the various problems and adverse situations in order to deal with
the others. He should be able to study the various organizational situations under which he can decided
frequently.

2. Clear Objectives:- A successful entrepreneur should have his clear objectives that what is to be
done by him, nature of goods to be produced and necessary activities which are to be
undertaken. Establish products in the market, making profit and render social services should be the
main objectives of the entrepreneur.

3. Business Secrecy:- An entrepreneur should be able to maintain the secrecy about his business
so that he can save his business. In the term of business leakage of secrecy is a serious offence which
should be guarded carefully by the entrepreneur. Hence he should be able to selection of his
subordinates.

4. Human Relations Ability:- Human relation is an important traits which is required for success
stability. An entrepreneur always maintain good human relations with his employees which leads to win
their confidence and he can motivate them for higher level of efficiency. An entrepreneur who maintains
good human relations with his customers, employees, suppliers, creditors and the others can success in
his motive easily.

5. Effective Communication:- An effective communication is the main feature of the successful
entrepreneur. He should be able to put his point clearly and effectively. Communication should be to
the point which is an ability of secret of the success of entrepreneur.



6. Technical Knowledge:- In the business management the entrepreneurs are mostly deals with
various situations in which sophisticated technology is involved. He should be reasonable level of his
technical knowledge.

7. Decision making power: For smooth running of the business enterprises it requires various
decision. Keeping in view the importance of the decision making ability an entrepreneur should be
capable to analyse the various aspects of the business for arriving at the decision.

8. Energy:- It is required for running of the business, an entrepreneur should be sufficient energy to
work hard for a long period. Hence an entrepreneur should be healthy and sharp minded.

9. Risk bearing ability : In the common sense it is popular that No pains, no gains its means that
no risk, no business, here it is pertinent to mentioned that an entrepreneur should be prepared to
accept failure in its proper task and view failure as a challenge and opportunities.

After consideration on these features and points we can say that entrepreneur is an important person
having more abilities to run the business. He should be able to struggled in the adverse circumstance so
that he can be encourage his employees. An successful entrepreneur can motivate his employees /
workers and can achieve the goal of his business by eaing more and more profit. The ability of good
communication skills, technical knowledge, decision making power, taking risk, energy, maintain good
human relations are required for an effective and successful entrepreneur. Hence we can say that an
entrepreneur should be positive minded, achievement oriented and dedicated so that he can increase the
level of motivation, self confidence, working performance etc among his workers and he can run his
business without any obstacles.















Question No. 2 An entrepreneur can play an important role in the economic development
may be explain
or
Discuss on the important role of en entrepreneur in the economic development of country.


Answer : An entrepreneur is a person who establish the organisation and all the activities
of organisation moving around the entrepreneur. Hence we can say that the entrepreneur is the miles
stone of the developing organisation. According to a very prominent economist Dr. Adam Smith
entrepreneurs are action oriented, highly motivated who can take risks to achieve the goal. Only an
entrepreneur is one who looks for opportunities, identifies the opportunities and seizes these
opportunities for economic gains. The economic development of a country is fully depends upon the
entrepreneurs. Entrepreneurs perform a vital roles or functions in the economic development. They
have been referred as the human agents according to needs to mobilize capital, to exploit natural
resources, to create markets and to carry on the trade.

In the general contemporary economists agree that entrepreneur is a business
leader who has an important role in fostering economic growth and development. Entrepreneurship is
one of the most important part of the economic development of a country or a region. In fact,
entrepreneurship is the dynamic need of a developing nation and sustain the process of economic
development in the following ways :-

1. Employment Generation:- In the present era growing unemployment of educated
unemployment youths is an important problem of the nation. The opportunities are less and the
unemployment is increasing day by day in our country. It can be prove that when a govement creates
hundred jobs in the various department, 100 persons can get employment and the posts filled for thirty
year or so till their retirement. If these hundred person become entrepreneurs they can not only create
a hundred jobs for themselves but they can provide employment to many more persons. Hence the
entrepreneurship is the best and best way of find out the jobs and fight with the evil of unemployment.

2. National Income : National Income includes goods and services produced in the country
and those imported. The goods and services produced for consumption within the country as well as to
fulfill the demand of exports. Due to increasing the population and standard of living the domestic
demand of goods and services are increasing. The increasing number of entrepreneurs are required to
meet this increasing demand for goods and services. Hence the entrepreneurship is very helpful to
increase the national income of a nation.

3. Dispersal of Economic Power : There are two types of power i.e. muscle power and
economic power. Presently the muscle power has lost its relevance and the world is rules by the
economic power which is the natural outcomes of industrial and business activities. Only Industrial
development can lead to concentration of economic powers in few hands. Developing a large number of
entrepreneurs helps in dispersing the economic power among the population. Setting up of a enterprises
for the goods helps in weakening the harmful effects of the monopoly. Now a days in the field of
industrialization small business units are convert in the big business houses due to lack of competition
grow. The number of enterprises increases a large amount of national wealth and dispersing
wealth. This dispersal of wealth promotes the real socialism and make the economy healthy and strong.

4. Balanced Regional Development : The growth of industrial units and business leads to
a large number of public benefits like road transport, health, education, entertainment etc. when the
industries are concentrated in the selected areas and cities and open the way of development for the
region in which en entrepreneur set up any industrial unit. Hence the development of entrepreneurship
ensures a balanced regional development when the new entrepreneurs grow at a faster pace in view of
the increasing competition in the field of business. Presently the govement is trying to setting up the
industrial through supporting of various entrepreneurs in the small towns which are a long distance from
the big cities. This steps helps in the development of the backward regions.

5. Haessing Locally Available Resources :- Our country India is a very rich nation in
natural resources. There are various sources are available which can be utilized easily. Various larges
scale industries started by entrepreneurs from outside the state in economically backward areas which
help as models of pioneering efforts but utilimately this is the real strength of industrialization in the
backward areas that are depends upon the involvement of local entrepreneurship in various activities.

6. Reducing Unrest and Social Tension Among the youth: In the present era the
problems associated with youths are increasing due to unemployment. Unemployment is the main
reason of social tension among the youths. In the changing environment of the we are facing with the
problem of wages employment opportunities, alteative to wage career is the viable option. It is required
that supportive involvement of the youths can be divert for entrepreneurial trait from wage career to self
employment career. The entrepreneurship is capable to reduce the unrest and social tension of the
youth by providing the better opportunities for employment.

7. Innovations in Enterprises : For better performance innovative is needed for every
business enterprises. It is believed that a small firm has relatively high necessity and capability to
innovate. Increased number of small firms is expected to result in more innovations and make the
industries compete in national market.

8. Improvement of Standard of Living :- Entrepreneurs set up industries which is fully
capable to remove the scarcity of essential commodities and new products. Productions of goods on
large scale and manufacture of handicrafts in the small scale units help to improve the standard of living
of a common man. These offer goods at lower costs and increase variety in consumption.

9. Economic Independence : Entrepreneurship is essential for national self reliance
industrialists help to manufacture indigenous substitute of imported products. Businessman also export
the goods and services on a large scale and ea the scarce foreign exchange for the country. Such type
of activities promote help to ensure the economic independence of the country without political
independence .




Question No.3 What are the qualities and functions of an effective entrepreneur?

Answer : An entrepreneur is an important part a of the commercial trade and industrial sector
of a developing nation. More over it believed that an entrepreneur who requires a professors
intelligence, a fortune-tellers capacity to foresee the future, a rich mans bank roll, a salesmans
persuasiveness, a financial talent for manipulating funds , an auditors precision, a political leaders
power and the magnetic personality of a firm star. In fact is mentioned that the capacity for becoming
an entrepreneur is a willingness to work hard.

An entrepreneur is a person who take risk for setting up his own unit or venture for
perceived reward. He is a person who initiates the idea, formulates a plan, organize resources and
planned for action for achieve his goals.


Qualities and functions of en entrepreneur in the present scenario :

An entrepreneur having some specific qualities which are mentioned below :-

1. Need to achieve : Mostly the people dream of success and achievement but they can not take
any actions towards achieving these dreams but en entrepreneurs has a strong desire to achieve the
goals and make his dream come true so that he can achieve the goal or target.

2. Perseverance : An entrepreneur always tries to complete his committed goals and course of
action. He faced various difficulties and problems and keep his process continue by overlooking these
problems and set his project. He work hard until the successfully accomplishment of whole project.

3. Moderate Risk Taker : More over the entrepreneurs are choose a moderate risk rather than play
wild speculative gamble. They always life to moderate risk situation with a fairly reasonable chance to
win.

4. Ability to find and explore the Opportunity: Generally the effective entrepreneurs are quick
to see and seize the opportunities. They tries to show an innovative term of their mind and convert the
difficulties in the opportunities. They plan and anticipate carefully for achieve their goals realizing the
opportunities.

5. Analytical ability : Mostly the entrepreneurs are realistic. They like and dislikes their stand in
their way. When they require assistance they select experts rather than friends and relative to help
them. An effective entrepreneur not like to take an emotional attitude for solve their business problem.
Hence analytical qualities are needed in an entrepreneur.

6. Feedback User : Mostly the entreprenbeurs like the immediate feedback of their
performance. They like prompt and accurate data which is useful to find out the difference whether the
information is unfavourable and favourable.

7. Independence : It is generally found that mostly entrepreneurs star off on their own because
they do not like to work for other people. They always like to be their own masters and want to be
responsible for their own decision. They do not like to work in the supervision of others. Hence they like
independency in their business.

8. Flexibility : The successful entrepreneur do not hesitate in revising their decision. They are the
persons with open minds not rigid. They can change their decision independently according to the
situations.

9. Planner : More over the successful people tend to set a goal for themselves and plan to achieve
their goal in a certain limitations.

10.Interpersonal Skills : An entrepreneur is a person who during the course of his activities, come
across many types of persons with whom he has to deal. Hence he should be a person who like working
with other people and who has skills of dealing with the people.

11.Motivator : A successful entrepreneur is required many situations to influence the other and make
them enable to think in his way and act accordingly. He motivate the people for action according to the
desired situation.

12.Stress Taker : As a central figure in your enterprises you will have to cope with many situations at
the same time and make right decisions. This may include a lot of your physical and emotional
stress. You can done all if you have the capacity of long working and keep cool under a lot of
tension. In these situations you should work hard without any tension in your mind.

13.Positive Self Concept : An achiever directs his fantasies towards the accomplishment of goals and
sets standards of excellence in he is doing. The awareness of strength and weakness is base of the
standard of excellency. An entrepreneur always use the positive knowledge in his thinking, he use
negative rarely.

14.Future Oriented : Entrepreneurs tries to a high level of future orientation. They do not like the
past to obsess them. They are oriented towards their present and future.

These qualities of an entrepreneur help him define his strength and overcome his weaknesses. These
qualities are required for an effective and successful entrepreneur. These qualities are capable to lead
the entrepreneur toward development in the economic growth.






Question No. 4 What do you mean by Entrepreneur Development Programme? Define
it. May also explain the prime objectives phases of an EDP.



Answer : EDP is a programme which is designed to help a person in strengthening his
entrepreneurial motive and acquiring skills as well as capabilities which are necessary for playing his
entrepreneurial role effectively .

An EDP is conceed with developing, motivating talent and grooming himself as
an effective entrepreneur. The developed has shown that entrepreneurs are play a vital role in the
economic progress but the developing countries indicate the low level of entrepreneur in the economic
development of the country.

An effective EDP has an important role to play in problem solving of
unemployment that effects the development of a country.

The prime objectives of an EDP are mentioned below:-

To develop and strength the quality and motivation .

To analysis the environment of industry and business

To select the project work / product

To formulation of project.

To understanding the process and procedures when setting up any enterprises.

To acquire the basic managerial skills.

To know how to influence the sources of help / support needed for launching an enterprises.

Prepare himself for taking the decision independently.

Enable to communicate clearly and effectively.

Develop a broad vision about the business.

Accept the uncertainty which can be include in smooth running of the business.

Phases of EDP

An EDP has three phases which are mentioned below:-

1. Initial or Pre-training Phase
2. Development or training Phase
3. Follow up or Post Training Phase

1. Initial or Pre-training Phase :- The starting phase can be known as initial phase. In
the beginning all the activities and preparation are required for conduct the training programme with the
following activities :-

a) Creation of infrastructure for the training programme.
b) Preparation of syllabus for training.
c) Tie up with guest faculty.
d) Arrangement for inauguration of the programme.
e) Choosing tools and techniques for the trainees.
f) Formation of selection committee.
g) Publicity for the programme.
h) Application form.
i) Survey of environmental opportunities.

2. Development or Training Phase: In this phase the training programme implemented to
develop motivational and skills level among the participants. To bring the desirable changes in the
behaviours of the trainees is the prime objective of this phase. A success trainer should be see the
following changes in his behaviour.