Short Questions:

Definition of Entrepreneur: The capacity and willingness to develop, organize

and manage a business venture along with any of its risks in order to make a profit. The most
obvious example of entrepreneurship is the starting of new businesses.

In economics, entrepreneurship combined with land, labor, natural resources

and capital can produce profit. Entrepreneurial spirit is characterized by innovation and risk-taking,
and is an essential part of a nation's ability to succeed in an ever changing and
increasingly competitive global marketplace.

A large literature has developed ranging from academic studies to prescriptive blueprints for setting
up new ventures. The term "entrepreneur" has often been applied to the founder of a new business,
or a person "who started a new business where there was none before" (Gartner 1985). In this view,
anyone who inherits (Henry Ford II), or buys an existing enterprise (George Steinbrenner's purchase
of the Yankees), or manages a turnaround as an employee (Lee Iacocca) is by definition not an
entrepreneur. Others reserve the term to apply only to the creative activity of the innovator
(Schumpeter 1934). With this last definition, the majority of those pursuing entrepreneurial and
business activities would be excluded. Yet, others refer to the identification and exploitation of an
opportunity as entrepreneurial (Peterson 1985). Those who develop a niche in the market or
develop a strategy to satisfy some need are also, by some, called entrepreneurs (Garfield 1986).

Q1) Entrepreneurs Vs Investors:

1) Dictionary Meanings
Entrepreneur
T he wor d "e nt rep reneur "
is a loa n wor d from
French verb "entreprendre
"which means to undertake.
Inventor
The word inventor comes from
the Latin verb invenire which
means to find.

2) Concept The term entrepreneur applies The term inventor applies to

3) Commercialization
4) Financial Risk
5) Idea-cash conversion
6) Expertise
to someone who creates value
by offering a product or service,
by carrying out a niche in the
market that may not exist
currently.
An entrepreneur will gather
resources, organize talent, and
provide leadership to bring a
good or service to market and
make it a commercial success.
Entrepreneur undergoes
serious financial risk as a huge
amount of money is invested.
Entrepreneurship involves the
conversion of ideas into cash.
Because entrepreneur makes
money from his ideas by
capitalizing them.
Ideas Cash
He is an ambitious leader who
someone who creates some
new product that has not been
in existence before.
An inventor develops a new
product or service, but may not
bring it to market.
There isnt a lot of investment
required so financial risk is low.
Invention is the conversion of
cash into ideas as inventors
spend money to create his
inventions and maybe unable
to monetize them.
Cash Ideas
He is an expert in his field. He

7) Innovator
8) Driving Force/Motivation
9) Responsiveness to feedback
10) Relationship
11) Connecting solution to its
problems
12) Sharing of Ideas
13) Focus on Financial Return
14) Control
15) Dependence on Research
16) Locus of Control
17) Life Goals
18) Preferred Work Mode
combines land, labour, and
capital to often create and
market new goods or services.
The entrepreneur is commonly
seen as a business leader and
innovator of new ideas and
business processes.
The entrepreneurs embrace the
risk and are driven by the
profitability of the product or
service.
An entrepreneur tests the
waters, listens to feedback and
is not afraid to scrap the idea in
lieu of a new one.
Most entrepreneurs are
innovators, not inventors.
An entrepreneur has the
determination to connect a
solution to its problem.
Entrepreneurs are reluctant to
their ideas with others as they
may lose their competitive
edge over their competitors.
Entrepreneurs focus a lot on
the ultimate financial return as
it is the driving force.
The Control experienced by the
entrepreneur is unparalleled if
he himself is the inventor. He
can make changes as and when
he thinks fit.
They rely more on extensive
amount of research they
conduct rather than intuition.
According to researchers,
mostly introverts come out to
be good entrepreneurs.
An entrepreneurs life goal is to
extend a substantial business
empire.
Most entrepreneurs are group
oriented. They like to work in
implements his technical
knowledge and expertise to
introduce new products.
The inventor is commonly
known as a scientist or
researcher.
Primarily driven by the
educational potential of his
invention.
An inventor may see this single
piece of work as too much of an
investment of their time and
money, and refuse to listen to
what the market says.
Not all inventors are
entrepreneurs because not all
of them pursue full business
ventures.
Although inventors also create
new things to provide solution
to a problem they do not
necessarily connect a solution
to its problem.
He freely shares his ideas and
technology with others in the
hopes that such openness will
help science advance.
Inventors often make a small
fortune out of a big one, as
they focus on discovering
breakthroughs without regard
for their ultimate financial
return.
If the inventor is not the
entrepreneur himself, he has to
surrender a lot of control by
licensing it to some
entrepreneurial firm.
They rely more heavily on gut
feelings or intuition than on
past experience.
Extroversion is one of the
strongest personality traits of
inventors.
An inventors life is to create
something new.
An inventor prefers to work
alone.
 teams to make their ideas a
practical success.
19) Role of Research Research is a necessary evil for
the entrepreneur.
20) Recognition Usually entrepreneurs gain
team recognition.
21) Financial Goal Their financial goal is to fund
future retirements.
22) Core Competency Incremental improvements is
the core competency of an
entrepreneur.
23) Preference They work to solve customers
problems.
24) Dogmatism Dogmatism level is low among
entrepreneurs.
25) Social Skills Entrepreneurs possess
moderate to extensive social
skills.
Q2) Distinguish between managerial and entrepreneurial decision making:
Entrepreneurial Decision
Making
1) Strategic Orientation The entrepreneurs strategic
orientation depends on his or
her perception of the
opportunity.
2) Commitment to The entrepreneurial domain is
Opportunity pressured by the need for
action and has a short time
span in terms of opportunity
commitment.
1. An entrepreneur is used to
3) Commitment of Resources having resources committed at
periodic intervals, often based
on certain tasks or objectives
being reached.
2. In acquiring these resources
the entrepreneur is forced to
For an inventor research is an
enjoyable avocation.
Inventors enjoy personal
recognition.
Their financial goal is to fund
future inventions.
Discontinuous inventions is the
core competency of an
inventor.
Their preference is to solve
complex problems.
High level of dogmatism is seen
in inventors.
Social skills of an inventor are
limited.
Managerial Decision Making
When the use of planning
systems is the strategic
orientation, the administrative
domain is operant.
The administrative domain is
not only slow to act on an
opportunity, but the
commitment is usually for a
longer time span.
1. In the administrative
domain, the commitment of
resources is for the total
amount needed.
2. Administrative-oriented
individuals receive personal
rewards by effectively
administering the resources
 maximize resource use. under their control.

4) Control of Resources The entrepreneur, under The administrator is rewarded

pressure of limited resources, by effective resource

strives to rent resources on an administration and has a drive

as-needed basis. to own or accumulate as many

resources as possible.

5) Managerial Structure The entrepreneur employs a In the administrative domain,

flat organizational structure the organizational structure is

with informal networks. formalized and hierarchical in

nature.

Q3) What is the importance of innovation in modern business?

Innovation can be defined simply as a "new idea, device or method". However, innovation is often
also viewed as the application of better solutions that meet new requirements, unarticulated needs,
or existing market needs. This is accomplished through more-
effective products, processes, services, technologies, or business models that are readily available
to markets, governments and society. The term "innovation" can be defined as something original
and more effective and, as a consequence, new, that "breaks into" the market or society. It is related
to, but not the same as, invention. Innovation is often manifested via the engineering process. The
opposite of innovation is exnovation.

While a novel device is often described as an innovation, in economics, management science, and
other fields of practice and analysis, innovation is generally considered to be the result of a process
that brings together various novel ideas in a way that they affect society. In industrial economics,
innovations are created and found empirically from services to meet the growing consumer demand.
A 2013 survey of literature on innovation found over 40 definitions. In an industrial survey of how
the software industry defined innovation, the following definition given by Crossan and Apaydin was
considered to be the most complete, which builds on the Organisation for Economic Co-operation
and Development (OECD) manual's definition:[8]
Innovation is: production or adoption, assimilation, and exploitation of a value-added novelty in
economic and social spheres; renewal and enlargement of products, services, and markets;
development of new methods of production; and establishment of new management systems. It is
both a process and an outcome.
Two main dimensions of innovation were degree of novelty (patent) i.e. whether an innovation is
new to the firm, new to the market, new to the industry, and new to the world and type of
innovation, whether it is process or product-service system innovation.
In business and economics, innovation can be a catalyst to growth. With rapid advancements
in transportation and communications over the past few decades, the old world concepts of factor
endowments and comparative advantage which focused on an areas unique inputs are outmoded
for todays global economy. Economist Joseph Schumpeter, who contributed greatly to the study
of innovation economics, argued that industries must incessantly revolutionize the economic
structure from within, that is innovate with better or more effective processes and products, as well
as market distribution, such as the connection from the craft shop to factory. He famously asserted
that "creative destruction is the essential fact about capitalism".[9] In
addition, entrepreneurs continuously look for better ways to satisfy their consumer base with
improved quality, durability, service, and price which come to fruition in innovation with advanced
technologies and organizational strategies.[10]
One prime example was the explosive boom of Silicon Valley startups out of the Stanford Industrial
Park. In 1957, dissatisfied employees of Shockley Semiconductor, the company of Nobel
laureate and co-inventor of the transistor William Shockley, left to form an independent
firm, Fairchild Semiconductor. After several years, Fairchild developed into a formidable presence in
the sector. Eventually, these founders left to start their own companies based on their own, unique,
latest ideas, and then leading employees started their own firms. Over the next 20 years, this
snowball process launched the momentous startup company explosion of information
technology firms. Essentially, Silicon Valley began as 65 new enterprises born out of Shockleys eight
former employees.[11] Since then, hubs of innovation have sprung up globally with similar metonyms,
including Silicon Alley encompassing New York City.
Another example is the Business Incubators - a phenomenon that is nurtured by governments
around the world, close to knowledge clusters, mostly research based, like universities or other
Government Excellence Centres, while the main goal is to channel the generated knowledge to
applied innovation outcomes in order to stimulate regional or national economic growth.

Q4) What do you mean by Opportunity Analysis Plan?

OPPORTUNITY ANALYSIS PLAN

Opportunity analysis is very important to both the prospective entrepreneur and the existing
business owner. Every innovative idea and opportunity should be carefully research into.

This can be done by developing an opportunity analysis plan. An opportunity analysis plan is not the
same as a business plan. It main focus is on the idea and the opportunity for the idea (i.e market). In
layout and presentation, opportunity analysis plan is much shorter than the business plan.

The primary objective of an opportunity analysis plan is to serve as a basis for the decision to either
act on the opportunity or wait until another better opportunity comes. Generally an opportunity
analysis plan consists of four sections as describe below:

The Idea and its competition

In this section, the product or service needs to be described in as much detail as possible. There is
also the need to have a prototype or schematic of the product so that a full understanding of all
aspect and features of the product is attained.

There is also the need to identify and list all competitive product and competitive companies in the
market. Finally the new product/service idea should be compared with at least three competitive
products/services that are most similar in filling the market needs.

In summary this analysis will result in a description of how the product/service is different and
unique and will indicate its unique selling proposition (USP). A unique selling proposition (USP) is
your business marketing language that sells your product/services in a statement or sentence.
If the idea does not have at least three to five unique selling propositions (USP) versus competitive
products/services on the market, the entrepreneur will need to more carefully examine whether or
not the idea is really unique enough to compete and be successful in the market.

The Market and the Opportunity

The next section of an opportunity analysis plan addresses the size and the nature of the market.
There will be need to collate market data (i.e. secondary data published) for at least the past three
years so that a trend is identified for the overall industry, overall market, the market segment and
the target market.

For example if you had an idea for a mathematics software tutor for secondary school students, you
would get market statistics on the education industry (overall industry), computers (overall market),
computer software application (market segment) and secondary school students (target market)

The size for these markets should not only be determined, but their characteristics should be clearly
understood and stated. The following questions need to be given careful attention: Is the market
made up of a few large companies or many small ones? Does the market respond quickly or slowly
to any new entrants? How many (if any) new products are introduced each year in the market? How
geographically dispersed is the market? What market need is being filled? What social conditions
underlie this market? What other products might the company also introduce into this market?
What is the nature and size of the international market?

With the above in mind the entrepreneur should be able to determine both the size and the
characteristics of the market and whether it is large enough and suitable enough to warrant the time
and effort required to further develop a business plan and actually enter the market.

Entrepreneur and Team Assessment

The entrepreneur together with a team should be involved in the opportunity analysis process. It is
advisable that at least one person on the team must have enough experience in the industry area of
the new idea. This is one factor that correlates with the probability of success of the business.

In this section, the following questions need to be answered: Why does this idea and opportunity
excite you? Will this idea and opportunity sustain you once the initial excitement has worn off? How
does the idea and opportunity fit your personal background and experience? How does it fit your
entrepreneurial team?

This section of the opportunity analysis plan is usually short and assists the entrepreneur to
determine if indeed he is really suited to successfully move his idea into the market.

Q5) Give examples of Opportunity Recognition.

Q6) list the key components of an entrepreneurial financial plan.

Financial experts will have different opinions about what should be included in a financial plan,
depending on the type of business you have and what youre trying to accomplish with your business
plan. But whether youre thinking of starting a business, expanding your current business, or just
want to understand your current business better, there are a few key financial items that you should
definitely include:
 Profit and loss statement
Cash flow statement
Balance sheet
Sales forecast
Personnel plan
and maybe some business ratios and/or a break-even analysis

Even if youre in the very beginning stages of your business, these financial statements can still work
for you.Developing your financial plan from basic numbers is both possible and very helpful.

Profit and loss statement

A profit and loss statement is essentially an explanation of how your business made a profit (or
incurred a loss) over a certain period of time. Its a table that lists all of your revenue streams and all
of your expensestypically for a three-month periodand lists at the very bottom the total amount
of net profit or loss.

This is a financial statement that goes by a few different namesprofit and loss statement, income
statement, pro forma income statement, P&L (short for profit and loss)but no matter what you
call it, its an essential report and very important to understand.

QUICK TIP: The term pro forma in front of any financial statement primarily serves to label that
version of the statement as not adhering to the strict generally accepted accounting principles
(GAAP) standards that all publicly-traded companies must use to produce their financial statements.
Major corporations use pro forma statements to illustrate projected numbers, like in the case of a
merger or acquisition, or to emphasize certain current figures. GAAP standards dont apply to small
businesses, so you dont really need to worry about distinguishing your financial statements as pro
forma or noteveryone you show them to expects that theyre not GAAP-compliant. But if you
want to be technically correct in your terminology, go ahead and call your financial statements pro
forma.

There are different formats for profit and loss statements, depending on the type of business youre
in and the structure of your business (non profit, LLC, C-Corp, etc.).

A typical profit and loss statement should include:

your revenue (also called sales), followed by

 your cost of sale or cost of goods sold (COGS)keep in mind, some types of companies,
such as a services firm, may not have COGS
your gross margin, which is your revenue less your COGS

These three components (revenue, COGS, and gross margin) are the backbone of your business
modeli.e., how you make money.

Youll also list your operating expenses, which are the expenses associated with running your
business that arent incurred directly by making a sale. Theyre the fixed expenses that dont
fluctuate depending on the strength or weakness of your revenue in a given monththink rent,
utilities, and insurance.

Your gross margin less your operating expenses will give you your operating income:

Gross Margin Operating Expenses = Operating Income

Depending on how you classify some of your expenses, your operating income will typically be
equivalent to your earnings before interest, taxes, depreciation, and amortization (EBITDA)
basically, how much money you made in profit before you take your accounting and tax obligations
into consideration. This is also called your profit before interest and taxes, gross profit, and
contribution to overheadmany names, but they all refer to the same number.

Your so-called bottom lineofficially, your net income, which is found at the very end (or, bottom
line) of your profit and loss statementis your EBITDA less the ITDA. Just subtract your expenses
for interest, taxes, depreciation, and amortization from your EBITDA, and you have your net income:

Operating Income Interest, Taxes, Depreciation, and Amortization expenses = Net Income

Cash flow statement

A cash flow statement (also called a statement of cash flows) is an explanation of how much cash
your business brought in, how much cash it paid out, and what its ending cash balance was, typically
per-month.

That might sound like sales, expenses, and profits, but its not. Consider this: What happens when
you send out an invoice to a client, but they dont pay it by the due date? What happens when you
pay your own bills late, or early? These kinds of things arent reflected in your profit and loss
statement, but they are explained in your cash flow statement.
Your cash flow statement is just as important as your profit and loss statement. Businesses run on
cashthere are no two ways around it. Without a thorough understanding of how much cash you
have, where your cash is coming from, where its going, and on what schedule, youre going to have
a hard time running a healthy business. And without the cash flow statement, which lays that
information out neatly for lenders and investors, youre not going to be able to raise funds. No
business plan is complete without a cash flow plan.

Balance sheet

Your balance sheet is a snapshot of your businesss financial positionat a particular moment in
time, how are you doing? How much cash do you have in the bank, how much do your customers
owe you, and how much do you owe your vendors?

The balance sheet is standardized, and consists of three types of accounts:

assets (accounts receivable, money in the bank, inventory, etc.)

liabilities (accounts payable, credit card balances, loan repayments, etc.)
equity (for most small businesses, this is just the owners equity, but it could include
investors shares, retained earnings, stock proceeds, etc.)

Its called a balance sheet because its an equation that needs to balance out:

Assets = Liabilities + Equity

The total of your liabilities plus your total equity always equals the total of your assets.

At the end of the accounting year, your total profit or loss adds to or subtracts from your retained
earnings (a component of your equity). That makes your retained earnings your businesss
cumulative profit and loss since the businesss inception.

However, if you are a sole proprietor or other pass-through tax entity, retained earnings doesnt
really apply to youyour retained earnings will always equal zero, as all profits and losses are
passed through to the owners and not rolled over or retained like they are in a corporation

Sales forecast

The sales forecast is exactly what it sounds like: your projections, or forecast, of what you think you
will sell in a given period (typically, a year to three years). Your sales forecast is an incredibly
important part of your business plan, especially when lenders or investors are involved, and should
be an ongoing part of your business planning process.

You should create a forecast that is consistent with the sales number you use in your profit and loss
statement. In fact, in our business planning software, LivePlan, the sales forecast auto-fills the profit
and loss statement.

There isnt a one-size-fits-all kind of sales forecastevery business will have different needs. How
you segment and organize your forecast depends on what kind of business you have and how
thoroughly you want to track your sales.

Some helpful questions to ask yourself are:

How many customers do you anticipate?

How much will you charge them?
How often will you charge them?

Your sales forecast can be as detailed as you want it to be, or you can simplify your forecast
by summarizing. However you choose to do a sales forecast, you should definitely have one.

Generally, youll want to break down your sales forecast into segments that are helpful to you for
planning and marketing purposes. If you own a restaurant, for example, youd probably want to
separate your forecasts for dinner and lunch sales; if you own a gym, it might be helpful to
differentiate between single memberships, family memberships, club shop sales, and extra services
like personal training sessions. If you want to get really specific, you might even break your forecast
down by product, with a separate line for every product you sell.

Along with each segment of forecasted sales, youll want to include that segments cost of goods
sold (COGS). The difference between the your forecasted revenue and your forecasted COGS is your
forecasted gross margin

Personnel plan

The importance of the personnel plan depends largely on the type of business you have. If you are a
sole proprietor with no employees, this might not be that important, and could be summarized in a
sentence of two. But if you are a larger business with high labor costs, you should spend the time
necessary to figure out how your personnel affect your business.
If you create a personnel plan, it should include a description of each member of your management
team, explaining what they bring to the table in terms of training, expertise, and product or market
knowledge. If youre writing a business plan to present to lenders or investors, you could think of
this as a justification of each team members necessity to the business, and a justification of their
salary (and/or equity share, if applicable).

You can also choose to use this section to list entire departments, if that is a better fit for your
business and the intentions you have for your business plan. Theres no rule that says you have to
list only individual members of the management team.

This is also where you would list team members or departments that youve budgeted for but
havent hired yet. Describe who your ideal candidate(s) is/are, and justify your budgeted salary
range(s).

Q7) Distinguish between merger and acquisition.

Comparison Chart
Basis for comparison Merger
Meaning Merger means the fusion of
two or more companies
voluntarily to form a new
company.
Formation of a new company Yes
Nature of decision The mutual decision of the
companies going through
mergers
Minimum number of 3 2
companies involved
Purpose To decrease competition and
increase operational efficiency
Size of business Generally, the size of merging
companies is the same.
Legal formalities More
Acquisition
When one entity purchases
the business of another entity
then it is known as Acquisition
No
Friendly or hostile decision of
acquiring and acquired
companies
For instantaneous growth
The size of acquiring company
will be more than the size of
acquired company
Less

Q8) list the different kinds of skill required in running modern business.
These business skills are essential
Financial management
Being able to effectively managing your finances is a critical. You will need to be able to forecast
your cash flow and sales, as well as, monitor your profit and loss. You will also need to declare your
income to the Australian Tax Office.
Having sound financial management skills will help you to run your business profitably and protect
your financial investment.
Marketing, sales and customer service
It is important to be able to promote your products or services effectively. Providing good customer
service and having a marketing strategy in place will help you to generate sales.
Communication and negotiation
You will need to communicate and negotiate with your suppliers, potential investors, customers and
employees. Having effective written and verbal communication skills will help you to build good
working relationships. Every communication should reflect the image you are trying to project.
Leadership
If you employ people leadership will be a key skill. You must be able to motivate your staff in order
to get the best out of them and improve productivity. Allocate time to mentor and coach your
employees.
Project management and planning
Starting a business means you will have to manage a range of projects, such as setting up a website,
arranging the fit-out of your premises and developing a range of policies and procedures. Knowing
how to effectively manage your resources, including time, money and staff will help you to achieve
your goals.
Delegation and time management
Failure to delegate is a trap many business owners fall in to usually because they are reluctant to let
go of control. Managing your time effectively may mean delegating responsibility to someone else in
the business or outsourcing. Identifying who you can delegate tasks to allows you to concentrate on
those tasks that generate revenue.
Problem solving
However much you plan, you will encounter problems in your business. This means you need to be
able to make good decisions, sometimes under pressure.
Networking
Building good relationships through networking will help you to grow your business and give you the
support youll need.
Further your knowledge and skills

Running a business is a demanding task. Seek assistance if you are unsure about your abilities and
skills. Developing the necessary skills will provide your business with solid foundations.
Q9) what is the importance of body language in business?
Definition of Body language.
Body language is a language without spoken words, it is called non verbal communication .
We use it all the time in our social life and business life so it is all about gestures movements and
expressions made by people to deliver a specific message to other people .
The role of Body language.

When we connect with a person, we also have to make it clear to each other how the content of a
spoken message needs to be interpreted but sometimes we are unable to deliver our messages by
spoken or even written languages so we use the body language to supplement what we want to say
by gesturing ,moving or even giving some facial expressions .
Body language in different cultures.
We should know that body language has different meanings in different cultures, so if we need to
travel abroad to a country that has different culture or traditions, we shoul read about how people
act there and study about their body language, especially when we need to conduct a meeting there
or if we are one of the participants in that meeting or other business situations such as job
interviews, because if we do not take this into account we may get ourselves in some serious
troubles.
Here are some examples of body language in different countries :
Eye Contact:
In the United States and Canada, INTERMITTENT eye contact is extremely important in conveying
interest and attention. In many Middle Eastern cultures, INTENSE eye contact between the same
genders is often a symbol of trust and sincerity however, between opposite genders.
Handshakes:
In parts of Northern Europe a quick firm handshake is the norm while in parts of Southern Europe,
Central and South America, a handshake is longer and warmer.
Greetings:
In America, there is a standard greeting: Hello, my name is.. with a handshake.
In Japan, people bow while in Italy, people kiss cheeks.
Touching:
In some sects of Judaism, the only woman that a man will touch in his lifetime is the woman he is
married to. In Japan, Scandinavia, and England, touching is less frequent. In Latino cultures,
touching is encouraged.
Some advices in Business body language

Posture
One of the first key things people notice is, how the person carries and presents himself whether he
walks and stands with confidence :

Stomach in

Chest out

Shoulders back

Head up.
Smiles
Smiles are an important facial expression. They show interest, excitement, empathy, concern; they
create an upbeat, positive environment. Smiles can, however, be overused. Often, men smile when
they are pleased; women smile to please. You know which is the most powerful!To gain and increase
respect, first establish your presence in a room, then smile. It is far more professional than to enter a
room giggling or "all smiles."

Eye Contact
It helps you understand what the other person is really saying verbally. When the eyes say one thing,
and the tongue another, a practiced man relies on the language of the first

Looking someone in the eye as you meet and talk with him/her also shows you are paying attention.
Listening is the most important human relations skill, and good eye contact plays a large part in
conveying our interest in others.

Q 10) What is meant by Venture Capital?

Narrowly speaking, venture capital refers to the risk capital supplied to growing companies and it
takes the form of share capital in the business firms. Both money provided as start-up capital and as
development capital for small but growing firms are included in this definition.

In developing countries like India, venture capital concept has been understood in this sense. In our
country venture capital comprises only seed capital, finance for high technology and funds to turn
research and development into commercial production.

In broader sense, venture capital refers to the commitment of capital and knowledge for the
formation and setting up of companies particularly to those specialising in new ideas or new
technologies. Thus, it is not merely an injection of funds into a new firm but also a simultaneous
input of skills needed to set the firm up, design its marketing strategy, organise and manage it.

In western countries like the USA and UK, venture capital perspective scans a much wider horizon
along the above sense. In these countries, venture capital not only consists of supply of funds for
financing technology but also supply of capital and skills for fostering the growth and development
of enterprises.

Much of this capital is put behind established technology or is used to help the evolution of new
management teams. It is this broad role which has enabled venture capital industry in the West to
become a vibrant force in the industrial development. It will, therefore, be more meaningful to
accept broader sense of venture capital.

Characteristics of Venture Capital:

Venture capital as a source of financing is distinct from other sources of financing because of its
unique characteristics, as set out below:
1. Venture capital is essentially financing of new ventures through equity participation. However,
such investment may also take the form of long-term loan, purchase of options or convertible
securities. The main objective underlying investment in equities is to earn capital gains there on
subsequently when the enterprise becomes profitable.

2. Venture capital makes long-term investment in highly potential ventures of technical savvy
entrepreneurs whose returns may be available after a long period, say 5-10 years.

3. Venture capital does not confine to supply of equity capital but also supply of skills for fostering
the growth and development of enterprises. Venture capitalists ensure active participation in the
management which is the entrepreneurs business and provide their marketing, technology,
planning and management expertise to the firm.

4. Venture capital financing involves high risk return spectrum. Some of the ventures may yield very
high returns to more than Compensates for heavy losses on others which may also have earning
prospects.

In nut shell, a venture capital institution is a financial intermediary between investors looking for
high potential returns and entrepreneurs who need institutional capital as they are yet not
ready/able to go to the public.

Q11) Discuss the importance of patent to entrepreneurial endeavours.

1. Patents facilitate venture capital investment. According to The Role of Patents in Venture Capital
Financing, a study by Haussler, Harhoff, and Muller, Patents are a signal of quality that facilitates
access to financing and helps startups overcome the liabilities of newness. This finding was
confirmed by the 2008 Berkeley study Patenting by Entrepreneurs: An Empirical Study, which found
that 67% of venture-backed startups reported that patents had been vital for them in securing
investment. While 40% of all startups held patents, 80% of those receiving venture capital
investment owned patents.
2. Patents can help a startup defend itself against attacks by incumbent rivals. Shortly after
intelligent home products startup Nest introduced its first product, a smart thermostat, it was hit by
a patent infringement suit from the industry giant Honeywell. In the words of one analyst,
Honeywell used its patent arsenal to try to run the upstart competitors out of town simply by
exhausting them and their limited resources. But Nest was prepared. It had already begun
patenting its innovative products (and eventually would own several hundred patents and patent
applications), and it also acquired 60 third-party patents relating to its product line from the patent
aggregator Intellectual Ventures, which helped buttress its intellectual property position. The lawsuit
is still pending, but if Honeywells goal was to litigate its upstart rival Nest out of business, Nests
patents have made that impossible. Nests patents were also a key attraction in the companys
eventual acquisition by Google, as youll see in reason No. 7.
3. Patents can help a startup stop the theft of its innovations by larger rivals. Nowadays Amazon
decries patent litigation. But what the company doesnt mention is that only 23 days after it
obtained a patent in 1999 for its one-click online purchase system, it filed a patent infringement
suit against its then-larger competitor Barnes & Noble over the latters use of a similar system. The
judge granted an injunction ordering B&N to stop using Amazons one-click, giving Amazon the edge
in online book retailing.
4. Patents can ensure a startups freedom to operate. Google is another industry heavyweight that
complains about patents today. But as a startup, back in 1998, Google deemed its seminal PageRank
patent No. 6,285,999 so vital it filed for it before it had a business plan, venture funding, or even a
domain nameand then paid Stanford University, to which it had been assigned the patent, $336
million in shares to exclusively license it. Without that patent, said one analyst, Google would have
been trampled by copycat search engine offerings from Yahoo, Microsoft, and other big players who
once dominated the market.
5. Patents can help a startup rapidly increase its market share. Carles Puente, a 2014 finalist in the
European Inventor Awards, invented a mobile phone antenna based on principles of fractal
geometry, which allowed it to be much smaller. If it werent for Puente, wed still be carrying around
cellphones as big as shoes. But his Spanish startup, Fractus S.A., couldnt possibly manufacture
enough fractal-based antennas for the 1.5 billion smartphones sold each year. Thanks to its patents,
however, Fractus was able to license its technology to 90% of the worlds smartphone makers.
Patents were very important to us, Puente says, not only in protecting our innovative technology
but also in expanding our market share.

6. Patents can help startups form joint ventures and R&D partnerships. According to a 2014
National Science Foundation-backed study, 49% of manufacturing and service firms have used
inventions obtained from external sources to develop their most important new products and
services. In 14% of these cases, the source was a startup. In many cases, the patents on those
startups inventions served as the legal scaffolding around which joint ventures and research-and-
development partnerships were constructed.
7. Patents can increase the chances that a startup will be acquired. We have already discussed
Nests use of patents to defend itself against bullying by a larger rival. But the companys intellectual
property also was a major reason for Googles acquisition of Nest in 2014 for $3.2 billion in cash. As
an article in USA Today reported, Bernstein Research analyst Carlos Kirjner advised investors that
we believe Google would not have purchased the company if it did not have substantial and
valuable intellectual property.
8. Patents can help a startup get ready for an IPO. Even the tech giant Facebook felt the need, when
preparing for its initial public offering, in April 2012, to shell out $550 million to buy 650 former AOL
patents owned by Microsoft. That was in addition to 750 patents Facebook had bought a month
earlier from IBM. The purchases were partly a response to a then-pending Yahoo patent suit against
Facebook. But experts say Facebook's larger objective was to reduce investor concerns over
Facebooks legal risk in advance of its IPO, as well as to protect itself against further litigation down
the road, given that patents are increasingly the weapons of tech company competition. Twitter
made a similar patent purchase from IBM shortly after its IPO.
9. Startups with intellectual property achieve greater long-term success than startups without
it. In their 2015 study Patents, Innovation, and Performance of Venture-Capital-Backed IPOs, Cao,
Jiang, and Ritter found that patents strongly and positively predict the long-run performance of VC-
backed IPOs. Indeed, VC-backed IPOs with patents substantially outperform other VC-backed IPOs.
The same holds true even for non-VC-backed IPOs. Or as Cockburn and Wagner simply put it in their
2007 study Patents and the Survival of Internet-Related IPOs, Firms without patent protection are
much less likely to survive.
10. Patents can help a startup launch a billion-dollar empire. As IPfolio chief executive Rupert
Mayer recently observed, patents have helped at least 10 major startups launch billion-dollar
empires. These include Dropboxs network folder synchronization patent, Zyngas asynchronous
challenge gaming patent, Squares patented system and method for decoding swipe card signals,
GoPros patented harness system for attaching a camera to a user, and of course Googles
breathtakingly valuable original PageRank patent.

Q12) Enumerate the key focus area in the Marketing Plan of an entrepreneur.

Your marketing plan should first

identify your target market, which can be broken down into demographic factors like age,
gender, level of income and education.
identify the methods you intend to use to reach your target market, like the type of media
for advertising or any types of promotional methods like special pricing or events.
factor in your competition,
identifying the key players in your market and
how you plan to obtain some of their market share.

Q13) list some characteristics of entrepreneurs.

1. Passion & Motivation

If there's one word that describes the fundamental trait in an entrepreneurship, it would be passion.

Is there something that you can work on over and over again, without getting bored?
Is there something that keeps you awake because you have not finished it yet?
Is there something that you have built and want to continue to improve upon, again and
again?
Is there something that you enjoy the most and want to continue doing for the rest of your
life?

Your demonstration of passion and motivation will determine your success in any entrepreneurial
venture. From building and implementing a prototype, to pitching your idea to venture capitalists,
success is a function of passion and determination.

2. Risk Taking
Entrepreneurs are risk takers ready to dive deep into a future of uncertainty. But not all risk takers
are successful entrepreneurs. What differentiates a successful entrepreneur from the rest in terms
of risk? Successful entrepreneurs are will to risk time and money on unknowns, but they also keep
resources, plans and bandwidth for dealing with "unknown unknowns" in reserve. When evaluating
risk, a successful entrepreneur will ask herself, is this risk worth the cost of my career, time and
money? And, what will I do if this venture doesn't pay off?

3. Self-belief, Hard work & Disciplined Dedication

Entrepreneurs enjoy what they do. They believe in themselves and are confident and dedicated to
their project. Occasionally, they may show stubbornness in their intense focus on and faith in their
idea. But the flip side is their demonstrated discipline and dedication.

4. Adaptability & Flexibility

Its good to be passionate or even stubborn about what you do. But being inflexible about client or
market needs will lead to failure. Remember, an entrepreneurial venture is not simply about doing
what you believe is good, but also making successful business out of it. Market needs are dynamic:
changes are a recurring phenomenon. Successful entrepreneurs welcome all suggestions for
optimization or customization that enhances their offering and satisfies client and market needs. A
product you develop for yourself alone may qualify as a hobby, but a product for the market should
satisfy market needs.

5. Understand Your Offering And Its Market

Entrepreneurs know their product offering inside and out. They also know the marketplace and its
dynamics inside and out. Remaining unaware of changing market needs, competitor moves and
other external factors can bring even great products to failure (for example, Blockbuster).

6. Money Management

It takes time to get to profitability for any entrepreneurial venture. Till then, capital is limited and
needs to be utilized wisely. Successful entrepreneurs realize this mandatory money
management requirement and plan for present and future financial obligations (with some
additional buffer). Even after securing funding or going fully operational, a successful businessman
keeps a complete handle on cash flows, as it is the most important aspect of any business.

7. Planning (But not Over-planning)

Entrepreneurship is about building a business from scratch while managing limited resources
(including time, money and personal relationships). It is a long-term commitment, and attempting to
plan as much as possible at the beginning is a noble impulse. In reality, however, planning for
everything and having a ready solution for all possible risks may prevent you from even taking the
first step. Successful entrepreneurs do keep some dry powder in reserve, but more importantly they
maintain a mindset and temperament to capable of dealing with unforeseen possibilities.

Do a feasibility analysis; identify time and capital thresholds; take the deep dive with your limited
resources. If your thresholds are crossed, look for alternatives and be prepared to take the next exit.

8. Networking Abilities

How do you tap your network for solutions? Many people seek comfort in commiseration: friends,
colleagues and neighbors are happy to complain with you about "the global slowdown, poor
demand, or unfair competition; but that won't improve the bottom line. What do successful
entrepreneurs do? They reach out to mentors with more experience and extensive networks to seek
valuable advice.

Having such networking abilities, including more experienced mentors, is a key characteristics of
successful entrepreneurs.

9. Being Prepared to Take the Exit

Not every attempt will result in success. The failure rate of entrepreneurial ventures is very high. At
times, it is absolutely fine to take the practical exit route and try something new, instead of
continuing to make sunk cost investments in the same venture. Many famous entrepreneurs
weren't successful the first time around. But they had the serenity and foresight to know when to
cut their losses.

10. Entrepreneurs Doubt Themselves But Not Too Much

You may ask yourself, am I an entrepreneur? And the very question may put you in doubt about the
answer. Even if you don't have the flair of Steve Jobs or the hair of Elon Musk, if you have the
courage to ask yourself intimidating questions Can I do this? Do I want to do this? you have the
stuff to be an entrepreneur.

Instead of worrying about fitting the image of the perfect entrepreneur, check in with your gut. Is it
on board?

The Bottom Line

Personal qualities and their correct demonstration with the right stakeholders are the determining
factors for success or failure as an entrepreneur. A realistic self-assessment checklist against these
suggested guidelines will ensure you take the right steps in the right direction to succeed.

Q14) what do u mean by entrepreneur? Give examples.

Someone who exercises initiative by organizing a venture to take benefit of
an opportunity and, as the decision maker, decides what, how, and how much of a good or
service will be produced.

An entrepreneur supplies risk capital as a risk taker, and monitors and controls the business
activities. The entrepreneur is usually a sole proprietor, a partner, or the one who owns
themajority of shares in an incorporated venture.

According to economist Joseph Alois Schumpeter (1883-1950), entrepreneurs are not necessarily
motivated by profit but regard it as a standard for measuring achievement or success.
Schumpeter discovered that they

greatly value self-reliance,

strive for distinction through excellence,
are highly optimistic (otherwise nothing would be undertaken), and
always favor challenges of medium risk (neither too easy, nor ruinous).
 an entrepreneur has been defined as "a person who starts, organizes and manages any enterprise,
especially a business, usually with considerable initiative and risk".[8] "Rather than working as
an employee, an entrepreneur runs a small business and assumes all the risk and reward of a given
business venture, idea, or good or service offered for sale. The entrepreneur is commonly seen as a
business leader and innovator of new ideas and business processes."[9] Entrepreneurs tend to be
good at perceiving new business opportunities and they often exhibit positive biases in their
perception (i.e., a bias towards finding new possibilities and seeing unmet market needs) and a pro-
risk-taking attitude that makes them more likely to exploit the opportunity.

Q15) enumerate the key methods of generating new ideas for an

entrepreneur

1. SCAMPER

SCAMPER is an idea generation technique that utilizes action verbs as stimuli. It is a well-known
kind of checklist developed by Bob Eberie that assists the person in coming up with ideas either for
modifications that can be made on an existing product or for making a new product. SCAMPER is an
acronym with each letter standing for an action verb which in turn stands for a prompt for creative
ideas.

S Substitute

C Combine

A Adapt

M Modify

P Put to another use

E Eliminate

R Reverse

2. Brainstorming

This process involves engendering a huge number of solutions for a specific problem (idea) with
emphasis being on the number of ideas. In the course of brainstorming, there is no assessment of
ideas. So, people can speak out their ideas freely without fear of criticism. Even bizarre/strange ideas
are accepted with open hands. In fact, the crazier the idea, the better. Taming down is easier than
thinking up.

Frequently, ideas are blended to create one good idea as indicated by the slogan 1+1=3.
Brainstorming can be done both individually and in groups. The typical brainstorming group
comprises six to ten people.
 3. Mindmapping

Mindmapping is a graphical technique for imagining connections between various pieces of

information or ideas. Each fact or idea is written down and then connected by curves or lines to its
minor or major (previous or following) fact or idea, thus building a web of relationships. It was Tony
Buzan, a UK researcher, who developed the technique mind mapping discussed in his book Use
your Head (1972). Mind mapping is utilized in brainstorming, project planning, problem solving and
note taking. As is the case with other mapping methods, the intention behind brain mapping too is
to capture attention and to gain and frame information to enable sharing of concepts and ideas.

To get started with mindmapping, the participant just has to write a key phrase or word in the
middle of the page. Then, he must write anything else that comes to his mind on the very same
page. After that, he must try to make connections as mentioned in the previous paragraph.

4. Synectics

Synectics is a creative idea generation and problem solving technique that arouses thought
processes that the subject may not be aware of. It is a manner of approaching problem-solving and
creativity in a rational manner. The credit for coming up with the technique which had its beginning
in the Arthur D. Little Invention Design Unit, goes to William J.J. Gordon and George M. Prince.

The Synectics study endeavored to investigate the creative process while it is in progress. According
to J.J Gordon, three key assumptions are associated with Synectics research.

It is possible to describe and teach the creative process

Invention processes in sciences and the arts are analogous and triggered by the very same psychic
processes

Group and individual creativity are analogous

5. Storyboarding

Storyboarding has to do with developing a visual story to explain or explore. Storyboards can help
creative people represent information they gained during research. Pictures, quotes from the user,
and other pertinent information are fixed on cork board, or any comparable surface, to stand for a
scenario and to assist with comprehending the relationships between various ideas.

6. Role playing

In the role playing technique, each participant can take on a personality or role different from his
own. As the technique is fun, it can help people reduce their inhibitions and come out with
unexpected ideas.
7. Attribute listing

Attribute listing is an analytical approach to recognize new forms of a system or product by

identifying/recognizing areas of improvement. To figure out how to enhance a particular product, it
is broken into parts, physical features of each component are noted, and all functions of each
component are explained and studied to see whether any change or recombination would damage
or improve the product.

8. Visualization and visual prompts

Visualization is about thinking of challenges visually so as to better comprehend the issue. It is a

process of incubation and illumination where the participant takes a break from the problem at hand
and concentrates on something wholly different while his mind subconsciously continues to work on
the idea. This grows into a phase of illumination where the participant suddenly gets a diversity of
solutions and he rapidly writes them down, thereby creating fresh parallel lines of thought.

Picture prompts help a lot when it comes to enabling ones brain to establish connections. These
prompts can help to surface emotions, feelings and intuitions. This makes them particularly useful
for brainstorming solutions to innovative challenges involving people, and issues with a deep
psychological or emotional root cause.

To get started with using picture prompts, the facilitator distributes a set of pre-selected images
each participant gets one. He also asks the participants to write down whatever ideas come to their
mind when they look at the image in their possession. According to Bryan Mattimore (presently co-
founder of The Growth Engine Company), the images should be visually interesting, portraying a
multiplicity of subject matter and must depict people in lots of varied kinds of relationships and
interactions with other people.

After this, participants pair off and use additional time, sharing and talking about the ideas they have
come up with and brainstorming more solutions to the existing problem/challenge. Lastly, the
various pairs present their ideas to the rest of the group.

Mattimore suggests tailoring the visuals to the character of the challenge the participants have to
solve. So, if the challenge pertains to the manufacturing industry, you could consider having images
of an industrial nature. However, you should definitely include some irrelevant or random images as
well because it may be these kinds of images that trigger the most innovative solutions.

9. Morphological analysis

Morphological analysis has to do with recognizing the structural aspects of a problem and
studying the relationships among them. For example: Imagine the problem is transporting an object
from one place to another by way of a powered vehicle. The significant dimensions are: the kind of
vehicle (cart, sling, bed, chair); the power source (internal-combustion engine, pressed air, electric
motor); and the medium (air, hard surface, rails, rollers, oil, water). Thus, a cart-kind of vehicle
moving over rough services with an internal-combustion engine to power it is the automobile. The
expectation is that it would be possible to determine some novel combinations.

10. Forced relationships

It is an easy technique involving the joining of totally different ideas to come up with a fresh idea.
Though the solution may not be strictly unique, it frequently results in an assortment of
combinations that are often useful. A lot of products we see today are the output of forced
relationships (such as a digital watch that also has a calculator, musical birthday cards and Swiss
army knife). Most of these ideas may not be revolutionary discoveries but they are still
advantageous products and usually have a prospective market in society. Robert Olson provided an
example for forced analogy in his book The Art of Creative Thinking. He compares different aspects
of a corporate organization structure to the structure of a matchbox.

11. Daydreaming

Though mostly not met with approval, daydreaming is truly one of the most fundamental ways to
trigger great ideas. The word daydream itself involuntarily triggers an uninhibited and playful
thought process, incorporating the participants creativity and resourcefulness to play around with
the present problem. It enables a person to establish an emotional connection with the problem,
which is beneficial in terms of coming up with a wonderful idea. The focus of productive
daydreaming is a particular goal irrespective of whether it seems to be an impractical task. Plenty of
famous inventors have engaged in daydreaming in the past, thereby setting off ideas that
contributed to life altering inventions. The airplane is the most notable example for this. If the
Wright brothers had not let their imagination run wild thinking about flight, we would probably still
be traveling by ferry.

12. Reverse thinking

As the term reverse thinking itself suggests, instead of adopting the logical, normal manner of
looking at a challenge, you reverse it and think about opposite ideas. For example: how can I double
my fan base? can change into how do I make sure I have no fans at all? You may notice that the
majority of participants would find it easier to produce ideas for the negative challenge simply
because it is much more fun. However, dont spend too much time on the reverse idea-generation
about 10 to 15 wrong ideas is fine. After one session is over, you can either continue in the reverse
idea atmosphere with a new challenge or else do the reversal once more to make it stronger. An
example for the latter is I am never going to update any of my social networks changing into I am
going to always update all of my social networks.
13. Questioning assumptions

The majority of industries have an orthodoxy unspoken but deeply-held beliefs that everyone
stands by for getting things done. Sadly, they fail to realize that by questioning assumptions at every
step of service or product development, they can actually enable the birth of fresh possibilities and
ideas.

Heres how Mattimore suggests one go about questioning assumptions: The participants should start
by settling on the framework for the creative challenge. After this, they should produce 20 to 30
assumptions (irrespective of whether they are true or false). The next step is to select several
assumptions from the many generated, and utilize them as idea triggers and thought starters to
engender fresh ideas.

14. Accidental genius

Accidental genius is a relatively new technique that utilizes writing to trigger the best ideas, content
and insight.

15. Brainwriting

Brainwriting is easy. Instead of asking the participants to shout out ideas, they are told to pen
down their ideas pertaining to a specific problem or question on sheets of paper, for a small number
of minutes. After that, each participant can pass their ideas over to someone else. This someone else
reads the ideas on the paper and adds some new ones. Following another few minutes, the
individual participants are again made to pass their papers to someone else and so the process
continues. After about 15 minutes, you or someone else can collect the sheets from them and post
them for instant discussion.

16. Wishing

This technique can be begun by asking for the unattainable and then brainstorming ideas to make it
or at least an approximation of it, a reality. Start by making the wishes tangible. There should be
collaboration among the members of the team to produce 20 to 30 wishes pertaining to your
business. Everyones imagination should be encouraged to run wild the more bizarre the idea, the
better. There should be no restrictions on thinking.

The next step is concentrating on a number of these unattainable wishes and utilizing them as
creative stimuli to trigger ideas that are new but more practical. Mattimore suggests getting the
team to challenge the problem from diverse perspectives (imagine how a person from another
planet or from another industry or profession would view it) or reflect on it. This type of role playing
assists with moving away from conventional thinking patterns to see fresh possibilities.
17. Socializing

If employees only hang around with colleagues and friends, they could find themselves in a thinking
rut. Let them utilize all those LinkedIn connections to begin some fantastic conversations. Refreshing
perspectives will assist with bringing out new thinking and probably, one or two lightning bolts.
Socializing in the context of ideation can also be about talking to others on topics that have nothing
whatsoever to do with the present problem.

18. Collaboration

As the term indicates, collaboration is about two or more people joining hands in working for a
common goal. Designers frequently work in groups and engage in collaborative creation in the
course of the whole creative process.

Q16) what is meant by trend? How is it relevant in entrepreneurship?

A trend is the general direction of a market or of the price of an asset, and trends can vary in length
from short to intermediate, to long term.

As a general strategy, it is best to trade with trends, meaning that if the general trend of the market
is headed up, you should be very cautious about taking any positions that rely on the trend going in
the opposite direction. A trend can also apply to interest rates, yields, equities and any other
market that is characterized by a long-term movement in price or volume.

Q17) briefly discussed the relevance of patent in a start-up software unit.

Technology is the backbone of the digital economy and much of its value lies in software. Indeed, all
economic sectors are becoming reliant on software to leverage growth. This has important
implications for intellectual property (IP) laws.

Until the late 20th century, the functionality of most innovative products, particularly those relying
on semiconductors, was primarily embedded in hardware. There was no doubt about their
patentability. But today, increasingly sophisticated semiconductor technology and design tools mean
that physical objects are no longer the sole basis of innovation. In other words, technical
functionality is progressively migrating from hardware to software. And yet in many jurisdictions
software-related inventions either do not qualify for patent protection or have a very limited scope
of protection.

The huge economic growth and innovative potential of technology companies that develop products
that combine hardware and software, and of the software industry in general, suggest the time is
ripe to rethink IP statutes and bring them into line with present-day commercial realities.

The advantages of software-intensive systems

The great advantage of software is that engineers and designers have more flexibility in developing
and launching, or licensing to others to launch products with new technical capabilities, and in
fixing errors and releasing new software with simple downloadable updates. In many cases,
implementing an invention in software rather than in hardware is more rapid and is the faster and
more cost-effective way to get a product to market.
Consumers benefit from seamless and affordable access to the latest advances. And the relatively
low capital investment involved in creating software solutions makes market entry easier for small
businesses and startups. However, these companies still need effective IP protection to secure a
reasonable return on their R&D investments.

Which IP rights are relevant to software protection?

Historically, IP laws have influenced the success of the software industry by providing software
developers with a legal mechanism through which to capture at least some of their innovations
market value. Since at least the 1960s, the software industry has relied on three distinct IP
protection regimes: trade secrets, copyright and patent law. The scope of protection offered by each
has varied significantly over time, as has the software industry's reliance on them.

History shows that patent law offers the most effective framework for protecting an inventions
functionality. In many countries, however, a distinction is drawn between inventions implemented in
hardware, which are patentable, and inventions implemented in software (i.e. computer programs),
which are protected by copyright law. But in a world in which the Internet and not hardware such
as CDs is the prime channel for software distribution, this legal distinction makes it difficult for
inventors of software-related inventions to effectively protect and leverage the commercial value of
their inventions through IP systems.

These innovative contributions are no less significant than hardware-based innovations. Computer
programs, including software-related inventions, are products in their own right regardless of how
they are distributed. Would it not be reasonable for such inventions to enjoy effective protection
under patent law?

The software industry today

Today, many technological innovations rely on software advances. Take the software-related
innovations that have revolutionalized the smartphone. Between 2009 and 2013, the total aggregate
lines of code in the chips the brains of the smartphone shipped by Qualcomm increased from 330
million to 3.3 billion. These phenomenal and unprecedented developments were the result of years
of high-risk R&D investment.

Software-implemented functionality is making an expanding range of everyday products safer and

more efficient with higher performance. It is creating entirely new offerings and capabilities, such as
intelligent power grids, digital manufacturing, real-time farm management systems, smart cities
powered by interconnected (Internet of Things) platforms, and digital healthcare.

Estimates suggest that the digital economy which relies heavily on software-related innovations
already represents 22.5 percent of the global economy.

Global R&D spending on software offerings has also grown rapidly, rising from USD 86 billion in 2010
to USD 142 billion in 2015, an increase of 65 percent.

The United States has one of the most software-intensive industries in the world (see Robert J.
Shapiro, The U.S. Software Industry: An Engine for Growth and Employment,SIIA, 2014). In 2014
alone, the industry directly added an estimated USD 475.3 billion and USD 1.07 trillion indirectly
to the countrys GDP, directly employing 2.5 million people and indirectly supporting some 9.8
million jobs.
The benefits of patent protection

As a general rule, new inventions in any field of technology qualify for patent protection if they are
novel, non-obvious and useful (criteria of patentability are set out in national patent laws). Patent
protection offers significant benefits to innovators:

ensuring inventors get a reasonable return on their commercially successful innovations;

making it easier for innovation-based startups and small businesses to establish fruitful
business collaborations;
promoting the systematic sharing of knowledge through patent disclosure, itself an
important driver of innovation; and
helping attract investment partners and support business expansion.

Yet patent laws generally do not treat software-related inventions in the same way as other novel
technology advances. This may be due to a lack of understanding of either the nature of software
innovation or of the protection afforded by different IP rights

Q18) Briefly describe the significance of HR Plan for an entrepreneurial

endeavour.
In a job market defined by competition for skilled talent, HR leaders can, and do, make an impact on
an organizations bottom line. From recruiting to employee development to retention strategies, HR
teams are expected to bring data-driven solutions to the table that contribute to and lead the
company toward its overall business goals.

For CEOs, that means bringing HR leaders into the strategic fold.

In a July survey of 88 leaders at companies with at least $50 million in revenue, CareerBuilder found
65 percent of CEOs agree that the opinions of HR leaders carry greater weight with senior
management than ever before. Even more telling, 73 percent of CEOs have already incorporated
data from HR leaders into their business strategies, suggesting this is not just a theoretical trend, but
one thats being put into action.

The big question is why? Why are CEOs just now realizing the importance of HR leaders in this
competitive-talent landscape? What makes this post-recession economy the bridge for HR leaders to
cross over to the strategic business-planning world?

Simply put, its insight.

HR leaders have the insight and data that can help companies streamline recruiting processes and
optimize their human capital. They understand the company culture and are already involved in
building a workforce that will help organizations meet business goals. Now, its just a matter of
officially involving them in the process.

Still not convinced? Here are three key reasons CEOs should include HR in strategic business
decisions from now on:
1. They understand where the skills gaps are in organizations.
The skills gap is a real concern for many companies. So real, in fact, that 48 percent of respondents
in Spherion Staffing Services 2015 Emerging Workforce Study cited it as the biggest issue facing
their organizations. This struggle to find qualified talent to fill skilled positions is keeping companies
from meeting their full-earning potential.

HR leaders struggle with this problem every day. They are on the front lines of the battle for talent,
so they know where, and at what levels (entry level, mid level, executive level), the skills gap is
affecting their company the most. Because of this, they are valuable assets when it comes to long-
and short-term strategic planning.

By bringing HR leaders into strategic-business discussions, CEOs are rewarded with insightful
recommendations about their organizations skills shortages and how to fix them through talent-
management programs and succession planning.

Whether its developing in-house talent-development strategies, building multi-generational teams

to help strengthen organizational learning or other customized solutions, HR leaders are in the best
position to help CEOs and other strategic planners realign key business goals and success metrics to
address the skills gap issue in their organizations.

2. They can help increase human-capital efficiency company-wide.

At a time when, according to Gallups daily tracking poll, only one third of Americans are engaged at
work, how an organization manages its people is more important than ever.

Good HR leaders have their fingers on the pulse of the organization and know why and where
turnover is most prevalent. They understand that -- like 57 percent of more than 5,500 business
leaders surveyed as a part of Payscales 2015 Best Practices Report -- turnover is one of the biggest
issues facing companies today. Because turnover is so costly for organizations, this knowledge can
be critical in distributing talent and planning for the future.

When CEOs invite HR leaders into the discussion and tap into their knowledge of the workforce, they
are better able to take advantage of unique insights that can cut costs, reduce turnover and realign
human capital to increase efficiency.

3. They can provide actionable data to streamline recruiting.

Forty-eight percent of CEOs admit to losing money because of inefficient recruiting strategies,
according to the aforementioned July CareerBuilder survey. HR leaders can help solve the problem.

Today, more HR leaders are focusing on developing and analyzing company-specific metrics that
measure the efficiency of the hiring process in real time. Aided by talent-alignment platforms and
data-analytics software, HR teams are now more equipped than ever to provide competitive fact-
based solutions to quickly reduce inefficiencies in the recruiting process.

These data-driven HR leaders can be instrumental in strategic-business planning by working

proactively with CEOs and other executives to solve staffing issues, allocate recruiting resources and
build programs that align the candidate experience with business goals.
The benefits are clear. With data-driven insights and unique organizational knowledge, HR leaders
are poised to make a huge impact in the boardroom. CEOs who take advantage of these insights in
strategic-business planning can strengthen their businesses with creative, data-backed solutions to
the issues facing their organizations.

Q19)Briefly discuss the importance of Diversification Strategy in modern

times.
Diversification is a corporate strategy to enter into a new market or industry which the business is
not currently in, whilst also creating a new product for that new market. This is most risky section of
the Ansoff Matrix, as the business has no experience in the new market and does not know if the
product is going to be successful.

Many small companies are one-trick ponies, betting their entire futures on a single product, a single
service, a single location or even a single customer. And there's nothing wrong with that in the
beginning: A narrow focus lets a startup concentrate energy on doing one thing extremely well.

But as you grow larger, you'll find opportunities to add products, services, locations, customers and
markets. Diversifying in this way can help your business weather tough times by providing alternate
sources of revenue in the event that your original market dries up, stops growing or is hit by new
competition. Most companies that survive for long periods of time find that they have to develop
new sources of revenue as tastes change and opportunities evolve. Growth through diversification
can help your company have options in place when they are needed.

Q20) What is the importance of conceptual skills?

Classical management theory structures organizational management into tiers, like a pyramid. At the
base of the pyramid are supervisors, or lower-level managers, working directly with workers to
coordinate the daily tasks of the organization. In the middle are, you guessed it, middle managers.
They oversee longer-term goals with the supervisors that align with strategic objectives of the
organization. Who sets these strategic objectives? That's right; it's the folks at the tip of the pyramid,
the top-level managers.

Regardless of the level of management, theorist and psychologist Daniel Katz identified three skills
common to every manager. These are conceptual skills, human skills, and technical skills.

Conceptual skills allow a manager to visualize the entire organization and work with ideas
and the relationships between abstract concepts.
Human skills, also called human relation skills, require communication and attention to
relationships with others.
Technical skills are needed to actually get the work done; they are the techniques, practices,
tools, and processes needed by front-line employees in the manager's functional area.

While all managers have these skills, the ratio of each skill to the others varies based on the industry
and level of management. Let's say Michelle and Michael are both supervisors for accounting
companies. Michelle's team are all remote contractors, while Michael's accounting staff are working
nine to five in a specific building.

Both are on the same management tier, but Michael may need more human skills than Michelle to
manage interactions among team members. Michelle's team interacts directly with her, but not with
each other, so she'll use human skills differently and less often then Michael will. Each job requires
the same amount of conceptual skills to ensure their team is meeting organizational objectives.
They'll also use equivalent technical skills (generally accepted accounting principles) to ensure the
quality of the work.

So, you can see how thee mix of managerial skills might differ by industry, but let's take a closer look
how conceptual skills change with each successive step up the pyramid.

Conceptual Skills by Management Level

Top managers rely mostly on conceptual skills, but they use signi
significant
ficant human skills as well.
Remember, though, they need technical skills to set a strategy that makes sense for the
organization. Top managers have the most discretion, or choice, in how they exercise any of
these skills.
Human skills are needed by most middle
middle managers, because middle managers need to
communicate up, down, and across the organization in order to do their work well, but they
also need conceptual skills to set the goals and achieve strategic objectives. They are
expected to have more technical
technical skill and less conceptual skill than the managers above
them because they are 'closer to the ground.'
Direct supervisors do not spend as much time doing work that requires conceptual skills -
the day-to-day
day operations of the organization are more task-minded
task inded than strategically
oriented. Instead, they are the 'closest to the ground,' so they need more technical skills as
the most hands-onon and visible managers. They do need some human relations skills.

It makes sense that the different levels of management have a different mix of each of Katz's three
skills, but what do we mean when we talk about working with ideas and the relationships between
abstract concepts? Sidney Fine,, a professor and historian, described three families of skills relating
to data (conceptual),
nceptual), people (human), and things (technical). As you can see, his families correspond
with Katz's skills. Fine described the data skills (conceptual) as working in a nested hierarchy, as
shown in this image:

Nested conceptual skills

Q21) What is a business plan? Who are the possible readers of a business
plan?
A business plan is a formal statement of business goals, reasons they are attainable, and plans for
reaching them. It may also contain background information about the organization or team
attempting to reach those goals.
Business plans may target changes in perception and branding by the customer, client, taxpayer, or
larger community. When the existing business is to assume a major change or when planning a new
venture, a 3 to 5 year business plan is required, since investors will look for their investment return
in that timeframe.
Business plans may be internally or externally focused. Externally focused plans target goals that are
important to external stakeholders, particularly financial stakeholders. They typically have detailed
information about the organization or team attempting to reach the goals. With for-profit entities,
external stakeholders include investors and customers.[2] External stake-holders of non-profits
include donors and the clients of the non-profit's services.[3] For government agencies, external
stakeholders include tax-payers, higher-level government agencies, and international lending bodies
such as the International Monetary Fund, the World Bank, various economic agencies of the United
Nations, and development banks.
Internally focused business plans target intermediate goals required to reach the external goals.
They may cover the development of a new product, a new service, a new IT system, a restructuring
of finance, the refurbishing of a factory or a restructuring of the organization. An internal business
plan is often developed in conjunction with a balanced scorecard or a list of critical success factors.
This allows success of the plan to be measured using non-financial measures. Business plans that
identify and target internal goals, but provide only general guidance on how they will be met are
called strategic plans.
Operational plans describe the goals of an internal organization, working group or
department. Project plans, sometimes known as project frameworks, describe the goals of a
particular project. They may also address the project's place within the organization's larger strategic
goals.
Business plans are decision-making tools. The content and format of the business plan is determined
by the goals and audience. For example, a business plan for a non-profit might discuss the fit
between the business plan and the organizations mission. Banks are quite concerned about
defaults, so a business plan for a bank loan will build a convincing case for the organizations ability
to repay the loan. Venture capitalists are primarily concerned about initial investment, feasibility,
and exit valuation. A business plan for a project requiring equity financing will need to explain why
current resources, upcoming growth opportunities, and sustainable competitive advantage will lead
to a high exit valuation.
Preparing a business plan draws on a wide range of knowledge from many different business
disciplines: finance, human resource management, intellectual property management, supply chain
management, operations management, and marketing, among others. It can be helpful to view the
business plan as a collection of sub-plans, one for each of the main business disciplines.
The potential readers of a business plan are a varied bunch, ranging from bankers and venture
capitalists to employees. Although this is a diverse group, it is a finite one. And each type of reader
does have certain typical interests. If you know these interests up front, you can be sure to take
them into account when preparing a plan for that particular audience.

Active venture capitalists see hundreds of plans in the course of a year. Most plans probably receive
no more than a glance from a given venture capitalist before being rejected; others get just a cursory
inspection. Even if your plan excites initial interest, it may receive only a few minutes of attention to
begin with. Its essential, when courting these harried investors, that you make the right impression
fast. Emphasize a cogent, succinct summary and explanation of the basic business concept, and do
not stint on the details about the impressive backgrounds of your management team. That said,
make it concise and to the point. Remember, time is of the essence to venture capitalists and other
investors.

Bankers tend to be more formal than venture capitalists and more concerned with financial strength
than with exciting concepts and impressive resumes. For these readers, youll want to give extra
attention to balance sheets and cash-flow statements. Make sure theyre fully detailed and come
with notes to explain any anomalies or possible points of confusion.

Angel investors may not insist on seeing a plan at all, but your responsibilities as a businessperson
require you to show them one anyway. For such an informal investor, prepare a less-formal plan.
Rather than going for impressive bulk, seek brevity. An angel investor used to playing their hunches
might be put off by an imposing plan rather than impressed with your thoroughness.

If you were thinking about becoming a partner in a firm, youd no doubt be very concerned with the
responsibilities you would have, the authority you would carry and the ownership you would receive
in the enterprise. Naturally, anyone who's considering partnering with you is going to have similar
concerns. So make sure that any plan presented to a potential partner deals comprehensively with
the ownership structure and clearly spells out matters of control and accountability.

Customers who are looking at your business plan are probably doing so because they contemplate
building a long-term relationship with you. They're certainly going to be more concerned about your
relationships with your other customers and, possibly, suppliers, than most of your readers. So deal
with these sections of your plan in greater depth, but you can be more concise in other areas.
Customers rarely ever read a companys business plan, so youll probably have your miniplan
available for these occasions.

Suppliers have a lot of the same concerns as customers, except theyre in the other direction on the
supply chain. Above all, theyll want to make sure you can pay your bills, so be sure to include
adequate cash flow forecasts and other financial reports. Suppliers, who naturally would like their
customers to order more and more, are likely to be quite interested in your growth prospects. In
fact, if you can show youre probably going to be growing a lot, you may be in a better position to
negotiate terms with your suppliers. Like customers, most suppliers don't take the time to read
lengthy business plans, so again, focus on the shorter version for such purposes.

Strategic allies usually come to you for something specifictechnology, distribution, complementary
customer sets, etc. So any plan you show to a potential ally will stress this aspect of your operation.
Sometimes potential strategic partners may also be potential competitors, so you may want to
present your plan in stages, saving sensitive information such as financials and marketing strategies
for later in the process when trust has been established.

Managers in your company will be using the plan primarily to remind themselves of objectives, to
keep strategies clear and to monitor company performance and market conditions. Youll want to
stress such things as corporate mission and vision statements, and analyses of current industry and
economic factors. The most important part of a plan intended for management consumption is
probably in the financials. Youll want to take special care to make it easy for managers to compare
sales revenue, profitability and other key financial measures against planned performance.

Theres one caution to the plan-customization exercise. Limit your alterations from one plan to
another to modifying the emphasis of the information you present. Dont show one set of numbers
to a banker youre trying to borrow money from and another to a partner youre trying to lure on
board. Its one thing to stress one aspect of your operation over another for presentation purposes
and entirely another to distort the truth.

Q22) Distinguish between Penetrative Strategy and Market Development

Strategy.
Market development and market penetration were two of four distinct company growth strategies
identified by Igor Ansoff in a 1957 "Harvard Business Review" article. Product development and
product diversification were the other two. Market development is the use of an existing product or
service offering to attract new customer market, whereas market penetration is an effort to dig
deeper within an existing marketplace.

Market Penetration Opportunities

Market penetration is the least risky of the four growth strategies, according to the Quick MBA
website. It involves additional marketing or more assertive sales efforts to penetrate more deeply
into an existing customer base. Increased market share is a common marketing objective of
companies using this strategy. Adding more convenient business locations or remote locations may
also help you access more customers in the existing market.

Market Penetration Challenges

Market penetration has limitations. At some point, the marketplace becomes saturated, meaning
that almost all customers with interest in your product or service have been satisfied by you or an
existing customer. At some point, the additional customers you gain through more investment in
marketing don't provide enough return on investment to justify continuing with this strategy.
Aggressive market penetration through competitive advertising methods may help attract some
customers, but it can also lead to responsive attacks from competitors and, potentially, legal issues if
you make untrue claims in the ads.

Market Development Opportunities

Companies often brainstorm multiple target market segments when developing a marketing plan.
The first segments targeted with advertising are the ones you feel provide the best potential for
profitability. As long as you have other potential markets, you can grow through market
development. This is especially true when competitors haven't already targeted the new potential
market. You could add stores in new geographic regions with little to no competition. A catalog
retailer could buy a third-party mailing list targeting new customer types to develop beyond its
existing customer mailing list.
Market Development Challenges

The major risk of market development is that it typically requires capital investment in expansion,
either to build new locations or to expand marketing efforts to new territories. If the new
opportunity doesn't pay off, the company wastes capital and resources it could have invested in
other strategies. A company may also spread itself too thin by expanding into new markets. A local
lawn service provider, for instance, may struggle to satisfy existing clients if he expands the business
too far and has difficulty getting all of the work completed in a timely manner.

Q23) What is the importance of Personality Development in modern

business?
An individuals personality refers to his/her appearance, characteristics, attitude, mindset and
behavior with others.

Let us go through the importance of personality development.

Personality development grooms an individual and helps him make a mark of his/her own.
Individuals need to have a style of their own for others to follow them. Do not blindly copy others.
You need to set an example for people around. Personality development not only makes you look
good and presentable but also helps you face the world with a smile.

Personality development goes a long way in reducing stress and conflicts. It encourages individuals
to look at the brighter sides of life. Face even the worst situations with a smile. Trust me, flashing
your trillion dollar smile will not only melt half of your problems but also evaporate your stress and
worries. There is no point cribbing over minor issues and problems.

Personality development helps you develop a positive attitude in life. An individual with a negative
attitude finds a problem in every situation. Rather than cribbing and criticizing people around,
analyze the whole situation and try to find an appropriate solution for the same. Remember, if there
is a problem, there has to be a solution as well. Never lose your cool. It would make the situation
worse.

It is essential for individuals to behave well with people around. Being polite with others will not only
make you popular among other people but also earn you respect and pride. You cant demand
respect by being rude with people around. Personality development plays an important role in
developing not only your outer but also inner self. Human being is a social animal. One needs people
around. An individual needs to have that magnetic power which attracts people towards him. You
need to have that charisma of yours. Personality development helps you gain recognition and
acceptance from the society as well as people around.

Personality development plays an essential role not only in an individuals professional but also
personal lives. It makes an individual disciplined, punctual and an asset for his/her organization. An
in-disciplined individual finds it difficult to survive in the long run. Personality development teaches
you to respect not only your Boss and fellow workers but also family members, friends, neighbours,
relatives and so on. Never make fun of anyone at the workplace. Avoid criticizing and making fun of
your fellow workers.

One should never carry his/her attitude or personal grudges to work. Office is not a place where you
can be rude to others just because you had a fight with your friend last night. Personality
development sessions help you differentiate between your personal as well as professional life. It is
really essential to keep a balance between both the lives to lead a peaceful and stress free life.

Personality development helps an individual to inculcate positive qualities like punctuality, flexible
attitude, willingness to learn, friendly nature, eagerness to help others and so on. Never hesitate
to share information with others. Always reach office on time. Some people have a tendency to work
till late. Late sittings not only increase your stress levels but also spoil your personal life. Sitting till
late at the office indicates that an individual is extremely poor in time management skills.

Personality development helps you develop an impressive personality and makes you stand apart
from the rest. Personality development also plays an essential role in improving ones
communication skills. Individuals ought to master the art of expressing their thoughts and feelings in
the most desired way. Personality development makes you a confident individual who is appreciated
and respected wherever he goes.

Q24) What is meant by Marketing Mix? What are the key considerations
with regards to formulating the Marketing Mix?
Neil Borden in the year 1953 introduced the term Marketing mix, an extension of the work done by
one of his associates James Culliton in 1948.

Marketing Mix - A mixture of several ideas and plans followed by a marketing representative to
promote a particular product or brand is called marketing mix. Several concepts and ideas
combined together to formulate final strategies helpful in making a brand popular amongst the
masses form marketing mix.

Elements of Marketing Mix

The elements of marketing mix are often called the four Ps of marketing.

1. Product

Goods manufactured by organizations for the end-users are called products.

Products can be of two types - Tangible Product and Intangible Product (Services)

An individual can see, touch and feel tangible products as compared to intangible products.

A product in a market place is something which a seller sells to the buyers in exchange of
money.

2. Price

The money which a buyer pays for a product is called as price of the product. The price of a
product is indirectly proportional to its availability in the market. Lesser its availability, more
would be its price and vice a versa.

Retail stores which stock unique products (not available at any other store) quote a higher
price from the buyers.
 3. Place

Place refers to the location where the products are available and can be sold or purchased.
Buyers can purchase products either from physical markets or from virtual markets. In a
physical market, buyers and sellers can physically meet and interact with each other
whereas in a virtual market buyers and sellers meet through internet.

4. Promotion

Promotion refers to the various strategies and ideas implemented by the marketers to make
the end - users aware of their brand. Promotion includes various techniques employed to
promote and make a brand popular amongst the masses.

Promotion can be through any of the following ways:

Advertising

Print media, Television, radio are effective ways to entice customers and make them
aware of the brands existence.

Billboards, hoardings, banners installed intelligently at strategic locations like heavy

traffic areas, crossings, railway stations, bus stands attract the passing individuals
towards a particular brand.

Taglines also increase the recall value of the brand amongst the customers.

Word of mouth

One satisfied customer brings ten more customers along with him whereas one dis-
satisfied customer takes away ten more customers. Thats the importance of word
of mouth. Positive word of mouth goes a long way in promoting brands amongst the
customers.

Lately three more Ps have been added to the marketing mix. They are as follows:

People - The individuals involved in the sale and purchase of products or services come
under people.

Process - Process includes the various mechanisms and procedures which help the product
to finally reach its target market

Physical Evidence - With the help of physical evidence, a marketer tries to communicate the
USPs and benefits of a product to the end users

Four Cs of Marketing Mix

Now a days, organizations treat their customers like kings. In the current scenario, the four Cs has
thus replaced the four Ps of marketing making it a more customer oriented model. Koichi Shimizu in
the year 1973 proposed a four Cs classification.

Commodity - (Replaces Products)

Cost - (Replaces Price) involves manufacturing cost, buying cost and selling cost

Channel - The various channels which help the product reach the target market.

Communication - (Replaces Promotion)

Robert F. Lauterborn gave a modernized version of the four Cs model in the year 1993. According to
him the four Cs of marketing are:

Consumer
Cost
Convenience
Communication

Long Questions:
1) Explain with suitable illustrations how the nature and scope of
Entrepreneurship have changed in the age of globalization.
2) What are they key differences between International and Domestic
Entrepreneurship? Give examples.
Although there is a similarity between international and domestic entrepreneurship about cost ,
sales and profit but the variation of relative factors such as Economics, Politics , Culture and
Technology that differentiate Domestic from International Entrepreneurship(Hisrich,2013,p.8)
Economics
In a Domestic business strategy , the entrepreneur focus on the specified level of economic
development in domestic country. Also , the whole nation is more or less well prepared in a
particular financial scheme with same exchange. On the other hand , in a International business
strategy , the entrepreneur has to deal with exchange assessments , distinctions in level of financial
improvement , management(Government) policies , banking , business enterprise , capital
advertising along with allotment arrangement. According to these issues differentiate the business
plan and method of domestic from international entrepreneurs.
Stage of Economic Development
Such fundamental infrastructures as roads , banking conveniences as well as schemes, electricity
,communication systems , a well urbanized legal structures and industry or morals and standards
maybe the entrepreneur does not have to worry about in US .But in order to go global as an
international entrepreneur , have to make plans or method to deal with these factors. Also , these
factors are very grateful in other countries and successfully effect in international business rather
than domestic.
Balance of payments
A country's stability of expenses have an impact on the assessment of its exchange plus this
assessment of one nation's exchange have an effect on the commerce contracts among the nation's
.For example, Italy had been suffering from balance payments a few years ago and if they stopped
the inflation that would have been halted overnight . On the other hand the principal rescuer US had
been suffered the same problem. Also India and Great Britain had the same
problem(Hazlitt,2011,p.2-40).
Type of Economics
The suitable negotiating is individual of the several complications that have an effect on in doing
commerce in developing as well as transit nations. For example, US weapons exporters are alone
estimated complete about $4 to $7 billion annually in defence offset transaction and in that case for
some, it may over time strengthen the foreign competitors and also it effects the
employment(Czinkota & Ronakeinen,2012)
Political-Legal Environment
One of the key problems of business plan in international marketing is combination of political and
legal environment. On the other hand, it can create market opportunity for industrialists as well as
for others too. For instance, US environmental have eradicated the opportunity of importing several
European cars models. Furthermore, pricing fluctuation is one of the events that increase the prices
of food , oil and other energy products. As an international entrepreneur , it comes to an attention
that each element of business strategy can affect by the multiplicity of political legal environment. It
hard to make move where as an international entrepreneurs , pricing decision are different from the
domestic country where may be with no value added tax . Also , advertising strategy are different in
different countries where claiming and being sued comes to mind. Furthermore, product decision
are hard to make for an international entrepreneur in respect of labelling, packaging and
ingredients. Also, the regulations principal business appointments fluctuate deeply more than 150
dissimilar authorized system as well as nationalized regulations.
Civilizing Environment
The cultures are different in different countries and it affects the business plans in doing business
global. For example , in US points of purchase are allowed but for other countries are not allowed.
Another example of Lenovo . when they went to US, so they were having conversation to deal and at
some point US were telling their terms and Chinese were like , "Shi,Shi,Shi" means "Yes, Yes,Yes".So
US thought they were agreed to their term but it turned out they said yes ,yes to carry on the
conversation , they were listening(Business+Strategy,2014). Some cultural environment bribes and
corruption are common. On the other hand , sometimes it hard to find a translator.
Technological Environment
Same as culture technological environment are different in some counties. Especially, if the
entrepreneur from develop country and go to developing country .Products normally created which
based on the country's infrastructure and condition operating in the country. For such an instance,
It seems European designer do not assume as US car designer that wider road and less expensive
gasoline.
Local Foreign Competition
When a foreign company enters in to the market , they have to face local established company . The
domestic company often stand as a obstacle or fence with their known customer and products for a
foreign company. Furthermore, It is hard to compete with domestic company where the country has
a "Buy National" attitude. As a result, The international entrepreneur find it difficult make the right
decision.
Human resource strategies
HR strategies differentiate from domestic to international Entrepreneurship .Recruitment, Legal
issues and Management involves in HR strategies which domestically can be set up as same for all
future location in same manners(AzCentral,Nd). As a result , it makes easier for to deal with the risks
within the company. On the other hand, setting foreign outsourcing is major concern for HR in an
international environment. Also managing different organizational management structure, recruiting
employee and legal issues are major concern(AzCentral,Nd). Because different country have
different laws and management structure , so its hard to follow all the rules and also if its been
followed manager has to make sure its been following according to law and properly.
Environments that differentiate entrepreneurship
According to Ball et al (2012,p.11)as an entrepreneur there are three kinds of
forces of environment have to deal with and those forces of environment differentiate from
domestic to international entrepreneurship. The three types of milieus are the home environment ,
the overseas environment and the global environment
The Domestic Environment
In the home atmosphere the vigour that occur in the home country that pressure the firm as well as
the improvement of the industry. There are the vigour as an domestic entrepreneur is familiar with
.Entrepreneur of domestic country often find it difficult to expand their business in overseas.For
example, the government may restrict the overseas investment to reduce its outflow ,if the home
country suffers from currency shortage.
The Foreign Environment
Domestic environment forces and the foreign environment forces are bit similar except foreign
environment forces happen outside of the country. Although they operate differently for some
reason. It seems that foreign forces are difficult to asses. As an foreign Entrepreneur , face forces like
legal and political issues. There is a good example of Mexico 1988, when they had a regulation
keeping out outsiders or overseas from having a majority attention in a Mexican
corporation(Goldman et al,2014).But there was a clause that if the investment contributes to helps
the nation welfare. As a result under this clause company like IBM ,EATON were very successful to
establish completely possessed contributory under this section. Furthermore, labour force and
culture make fence to decision making flexibility for managers .
The International Environment
As an international entrepreneur decision making is really hard to maintain . So the mangers not
only has to look after domestic forces, also has to look after foreign environment as well. For
example, if managements agrees to settle down one foreign labour demands , then they have to
settle down one more contributory due to the propensity of unification to replace information
across boundaries. Moreover, international mangers not familiar with the cultures of overseas
countries. So they had to research and learn about the culture before entering the market , but even
though sometimes its hard to cope with cultural meaning.
New Ventures
There is a difference between international new venture and domestic new ventures when it comes
to entrepreneurship. The seeking business or opportunity , sales by using resources in different
countries or overseas is INV(International new ventures) according to Oviatt and McDougall,1994
cited in McDougall et al(2003).There are some issues that force them to drive internalisation ,trade-
offs, technology effects and performance effects (McDougall et al,2003).However, domestic new
ventures are only operate in domestic market and it has no international revenue. According to
McDougall et al , they argued in their study that Domestic New Venture can be distinguished fro
International New Ventures depending on entrepreneurial team experience ,strategy and industry.
The entrepreneurial team of domestic new ventures will be less experience than International new
ventures of entrepreneurial team , such as higher marketing technical experience. Also Liont(1972)
cited in McDougall et al (2003) , pointed out that entrepreneurs learn profit and loss from top prior
experience and that makes different between international entrepreneurship and domestic
entrepreneurship.

3) What are the key sources of ideas for the Entrepreneur? What are the
methods of generating new ideas?
Top 10 Sources of Business ideas & Opportunities for 2017
1. Look within yourself and examine your skills, talent, passion

In fact, one of the first places to start when looking for business ideas or opportunities is to look
within yourself. Most people miss this greatest source of business ideas because of ignorance,
laziness and self doubts.

If you are talented or having a proven track record in a specific field, then it is time to analyze such
skill or talent. To discover what you are good at or what business to start, you can begin by asking
yourself the following questions:

What skills or talents do you possess?

 What are your hobbies? What are you passionate about?
Do you possess a skill that people are willing to pay for?
2. Keep up with current events and be ready to take advantage of business opportunities

Yes! Societal happenings, events and trends are also sources of business ideas. If you are expose to
reading and watching news regularly and having the conscious intent of discovering business ideas,
you will be amazed at how many business opportunities that your brain will generate.

Keep up with current events because it will assist you to identify market trends, new fads,
information about industries and sometimes new ideas that have business possibilities and
potentials.

3. Invent a new product or service

Do you possess a creative mind? Then you can invent product or services that have never existed in
the past? To develop a creative mind, you need a mindset or perception that see beyond problems.
You have to look around and ask yourself:

What is the best solution for this situation or peoples problem?

Then you can proceed to ask people about additional services that they would like to see. You need
to think like great entrepreneurs such as Thomas Edison, Alexander Graham, Steve Jobs, etc.

To develop winning ideas, you need to concentrate on a specific target market and analyze and
brainstorm business ideas for services that the group would be interested on. The key to arriving at
business ideas for a new product or service is to identify a market need that has not being met.

For example, the clamor for improved security has led to an explosion of new security products and
services; from iris-recognition machines through home security services.

4. Add value to an already existing product

The uniqueness between raw wood and finished lumber is a nice instance of putting a product
through an additional process which maximizes its value, but additional processes are not the only
way that value can be added. You may as well add services or combine the product with other
related products.

For example, yam flour (Amala and Pounded Yam) is a locally processed commodity but somebody
took the pain to refine it better, package it, brand it and began exporting it. That is an example of
adding value to an already existing product. Bottled water has been in existence in Nigeria but it was
on the high side with respect to price. However, somebody sat down and thought up the sachet
water which comes at an affordable rate.

Now how do you develop these business ideas? The answer is simple? Look beyond the lines. Ask
yourself the following questions: What are those products you use that could be improved upon?
Which industry are things poorly done? If you can answers such questions, you can create a
profitable business.

5. Franchising

A franchise is just an arrangement whereby the manufacturer or the sole distributor of a trademark,
product or service grants exclusive rights for local distribution to independent retailers in return for
their payment of conformity and royalties in order to standardize operating procedures. Franchising
may take several forms, but the most interesting one is the type that offers a name, method of
running business, image and operating principles.

Now how can franchising become a source of business opportunities? Well, you can look at good
companies or products that exist in other countries but are not operating your country. Then you
can purchase a franchise to that product and become a pioneer in your country.

6. Mass media

The mass media is a wonderful source of information, ideas and often opportunities. Magazines, TV
stations, Cable networks, radio, newspapers and internet resource sites are all instances of mass
media. Just take a careful look at the commercial advertisements in newspaper or magazine and you
will discover businesses that are for sale.

Also, articles in the printed press or on the net or documentaries on television may report changes in
consumer needs or fashions. For instance, you may read or hear that people are now highly
interested in healthy eating or physical fitness. You may as well discover advertisements calling for
the provision of certain services depending on skills. Or you might find out a new concept for which
investors are needed, such as a franchise.

7. Exhibitions, Expos and Trade shows

Another means to discover business ideas and opportunities is to attend exhibitions and trade fairs.
These are usually advertised on the radio or in newspapers. By visiting such events regularly, you will
not only find out new products and services, but you will as well meet sales representatives,
wholesalers, distributors, manufacturers and franchisers. These are always excellent sources of ideas
in business.

8. Industrial Surveys

The main point for a new business idea should be the customer. The needs and wants of the
customer, which will provide the rational for a product or service, can be analyzed or ascertained
through a survey. Such a survey may be conducted formally or informally by speaking to people;
usually through interviews or using a questionnaire or through observation.

9. Listen to customers complaints

Complaints and frustrations on the part of customers have led to many new products or services.
Whenever consumers complain badly or bitterly concerning a product or service, or when you hear
someone saying I wish there was or If only there were a product/service that could , then,
you have the potential for a business idea. The idea can be to set up a rival company offering a
better product or service, or it may be a new product or service which can be sold to the company in
question or to others.

10. Brainstorming

Brainstorming is a creative problem-solving technique, and also a source for generating ideas. The
object is to arrive with as many ideas as possible. It usually begins with a question or problem
statement. For instance, you may ask What are the products and services required in the home
today which are unavailable? Each idea can lead to one or more additional ideas, resulting in a
good number.
4) Discuss the difference between entrepreneurship and intrapreneurship.
Bases of Difference Entrepreneur Intrapreneur
1) Dependency An entrepreneur is An intrapreneur is
independent in his dependent on the
operations. entrepreneur, i.e., the
owner.
2) Raising of Funds An entrepreneur himself Funds are not raised by
raises funds required for the intrapreneur.
the enterprise.
3) Risk Entrepreneur bears the An intrapreneur does
risk involved in the not fully bear the risk
business. involved in the
enterprise.
4) Operation An entrepreneur An intrapreneur
operates from outside. operates from within the
organisation itself.

5) Briefly discuss some of the qualities of an Entrepreneur. Justify your

answer with help of some examples.
Ten traits of the successful entrepreneur:

1. Disciplined

These individuals are focused on making their businesses work, and eliminate any hindrances or
distractions to their goals. They have overarching strategies and outline the tactics to accomplish
them. Successful entrepreneurs are disciplined enough to take steps every day toward the
achievement of their objectives.

2. Confidence

The entrepreneur does not ask questions about whether they can succeed or whether they are
worthy of success. They are confident with the knowledge that they will make their businesses
succeed. They exude that confidence in everything they do.

3. Open Minded

Entrepreneurs realize that every event and situation is a business opportunity. Ideas are constantly
being generated about workflows and efficiency, people skills and potential new businesses. They
have the ability to look at everything around them and focus it toward their goals.

4. Self Starter

Entrepreneurs know that if something needs to be done, they should start it themselves. They set
the parameters and make sure that projects follow that path. They are proactive, not waiting for
someone to give them permission.
5. Competitive

Many companies are formed because an entrepreneur knows that they can do a job better than
another. They need to win at the sports they play and need to win at the businesses that they
create. An entrepreneur will highlight their own companys track record of success.

6. Creativity

One facet of creativity is being able to make connections between seemingly unrelated events or
situations. Entrepreneurs often come up with solutions which are the synthesis of other items. They
will repurpose products to market them to new industries.

7. Determination

Entrepreneurs are not thwarted by their defeats. They look at defeat as an opportunity for success.
They are determined to make all of their endeavors succeed, so will try and try again until it does.
Successful entrepreneurs do not believe that something cannot be done.

8. Strong people skills

The entrepreneur has strong communication skills to sell the product and motivate employees. Most
successful entrepreneurs know how to motivate their employees so the business grows overall. They
are very good at highlighting the benefits of any situation and coaching others to their success.

9. Strong work ethic

The successful entrepreneur will often be the first person to arrive at the office and the last one to
leave. They will come in on their days off to make sure that an outcome meets their expectations.
Their mind is constantly on their work, whether they are in or out of the workplace.

10. Passion

Passion is the most important trait of the successful entrepreneur. They genuinely love their work.
They are willing to put in those extra hours to make the business succeed because there is a joy their
business gives which goes beyond the money. The successful entrepreneur will always be reading
and researching ways to make the business better.

Successful entrepreneurs want to see what the view is like at the top of the business mountain.
Once they see it, they want to go further. They know how to talk to their employees, and their
businesses soar as a result.

6) What is a Business Plan? Identify some key questions that need to be

addressed in any Business Plan.
A business plan is a formal statement of business goals, reasons they are attainable, and plans for
reaching them. It may also contain background information about the organization or team
attempting to reach those goals.
Business plans may target changes in perception and branding by the customer, client, taxpayer, or
larger community. When the existing business is to assume a major change or when planning a new
venture, a 3 to 5 year business plan is required, since investors will look for their investment return
in that timeframe.
Business plans may be internally or externally focused. Externally focused plans target goals that are
important to external stakeholders, particularly financial stakeholders. They typically have detailed
information about the organization or team attempting to reach the goals. With for-profit entities,
external stakeholders include investors and customers.[2] External stake-holders of non-profits
include donors and the clients of the non-profit's services.[3] For government agencies, external
stakeholders include tax-payers, higher-level government agencies, and international lending bodies
such as the International Monetary Fund, the World Bank, various economic agencies of the United
Nations, and development banks.
Internally focused business plans target intermediate goals required to reach the external goals.
They may cover the development of a new product, a new service, a new IT system, a restructuring
of finance, the refurbishing of a factory or a restructuring of the organization. An internal business
plan is often developed in conjunction with a balanced scorecard or a list of critical success factors.
This allows success of the plan to be measured using non-financial measures. Business plans that
identify and target internal goals, but provide only general guidance on how they will be met are
called strategic plans.
Operational plans describe the goals of an internal organization, working group or
department. Project plans, sometimes known as project frameworks, describe the goals of a
particular project. They may also address the project's place within the organization's larger strategic
goals.
Business plans are decision-making tools. The content and format of the business plan is determined
by the goals and audience. For example, a business plan for a non-profit might discuss the fit
between the business plan and the organizations mission. Banks are quite concerned about
defaults, so a business plan for a bank loan will build a convincing case for the organizations ability
to repay the loan. Venture capitalists are primarily concerned about initial investment, feasibility,
and exit valuation. A business plan for a project requiring equity financing will need to explain why
current resources, upcoming growth opportunities, and sustainable competitive advantage will lead
to a high exit valuation.
Preparing a business plan draws on a wide range of knowledge from many different business
disciplines: finance, human resource management, intellectual property management, supply chain
management, operations management, and marketing, among others. It can be helpful to view the
business plan as a collection of sub-plans, one for each of the main business disciplines.

Top 10 Questions Every Business Plan Should Answer.

1) What is the need that your business exists to satisfy?
Every business exists because of some noticeable opportunity that you have discovered within
the market. So you must clearly define the need and/or problem you are solving with this
business.
2) How will your business satisfy the need?
Introduce and describe the business itself. Consider including a mission or vision statement
with objectives detailing how the business satisfies the need in the market.
3) How does your company differentiate itself?
Describe your business model and competitive advantage. This will help you to outline how the
business will sustain its position within the market.
4) Who will be the key players in the business?
Name the management team, board and advisers to the business. Highlight their expertise and
experiences.
5) How big is the market you are entering?
 Only after understanding the industry you are entering its size, attractiveness and profit
potential can you truly justify the opportunity.
6) Who will you be targeting as customers?
Narrowing down your target customer will help enhance and define your marketing strategy.
7) What will be your most effective marketing and promotional strategies?
Once youve identified your target client, youll need to develop and implement a strategy on
how best to reach them (e.g. PPC, television, radio, social, etc). And this in large part will be
influenced by where your target client consumes information.
8) What are the economics of your business?
Define your revenue streams including pricing structure, costs, margins and expenses.
9) How much money is required to get your business started and generating revenue?
Identify needed capital requirements by determining where your business stands today, and
what is needed in order to move forward. Also, if you are in need of outside funding, what will
be the sources and uses of funds requested.
10) What needs to happen to break-even?
Play around with financial projections and forecasts to determine the volume of sales needed
to cover your expenses and to become profitable. Include monthly breakdowns for the first
two years.
Whether your objective is to find an investor, get a business loan or just improve the way you run
your business, your business plan must answer these key questions. Remember, there is no right or
wrong answer, but addressing these questions will help you build a roadmap for your business. And,
of course, the better the map, the greater the likelihood that youll reach your destination!

7) Design a miniature business plan for a start-up in the services sector.

8) Discuss the differences between an entrepreneurial organisation and a
formal organisation with the help of examples.
1. The organiser begins manufacture of goods in expectation of compensation but is not
obligatory that he may always get gain. Occasionally the organiser has to abide some defeat
also. The work of embarking on jeopardy is termed as Enterprise.

2. Before machines came into existence, manufacture was conceded on a small scale and in the
cottage industries. There was no disparity amidst organisation and enterprise for the reason
that the work of organising and risk taking was executed by the same person.

3. But with the materialization of large scale industries the joint stock companies have
detached the organisation and the enterprise. In JSC, investors are conscientious for profit
and loss. Hence the enterprise is related to the investors.

4. The actual work of organisation and administration is conceded by the paid managers or
directors. Thus organisers and entrepreneurs are dissociate in modern productive system
such as JSCs. Here the charge of organisation and administration and the task of risk abiding
are embarked on by diverse persons.
 5. Whereas in small scale industries, the entrepreneurs himself is the organiser. In such a
situation, where operations of organisation and enterprise are performed by the same man,
there is no disparity amidst them.

9) What would be your key sources of ideas for your entrepreneurial

venture? How would you identify the best idea from amongst them?
Great business ideas are all around you. Just open yourself to the possibilities, and you're bound to
find a winner. To start your search for that drop-dead idea that's going to set the world on fire, start
with the following sources. Culled from marketing guru Al Ries, chairman of Roswell, Georgia-based
marketing strategy firm Ries & Ries and co-author with Laura Ries of 22 Immutable Laws of
Branding, and business trendwatcher Perry Lowe, professor of marketing at Bentley College in
Waltham, Massachusetts, these can be the first steps in your search for the business of your dreams.

1. Start with family. Tapping family for great business ideas may not seem like an obvious first step.
Sure, you'll hit them up for cash once you've developed your idea, but what can your aging father or
cousin Margaret contribute this early in the process? Plenty. Donald Trump certainly wasn't bashful
about learning the real estate business from his dad, Fred, who ran a thriving real estate
development company, says Ries. Trump had the good sense to get some priceless training before
going off to become one of the country's foremost builders and real estate developers. "If his father
hadn't provided the foundation and training [he needed] to create a profitable business, Trump
wouldn't be where he is today," Ries explains. "Unfortunately, many people insist on [creating a
business] themselves without any help from their family. That's foolish."

2. Get a little help from your friends. Ries says you are severely limiting yourself if you rely solely on
your own ideas--especially when your creative juices run dry. "This is reason enough to listen to
ideas others may have," he says. "If you have 15 or 20 friends, chances are a couple of them have
some incredible business ideas."

If it weren't for Steve Jobs' good friend Steve Wozniak, there would be no Apple Computer today,
Ries points out. "Jobs didn't know anything about computers," he says. "Wozniak, on the other hand,
was the computer genius who developed the first Apple." Jobs had an eye for great business ideas
and saw the marketing potential for developing a new type of computer. The important lesson is to
keep your antenna up at all times so you can retrieve good ideas when you stumble across them.
Ries insists you can make more money recognizing someone else's idea than creating one yourself.

3. Look at all the things that bug you. It may not sound profound, but Ries says this is fertile ground
for great business ideas. He cites how upset Kemmons Wilson was in the 1950s when a motel owner
wanted to charge him an additional price for each of his five children. He was so ticked off, he
launched Memphis, Tennessee-based Holiday Inn, today one of the world's largest hotel chains.

If King C. Gillette hadn't been fed up with the tedious process of sharpening his straight-edge razor,
he wouldn't have founded the massive disposable razor industry. When he took his idea for a
portable razor with a blade that could be used several times to a research university for assistance,
engineers questioned his sanity. Gillette followed his instincts and the rest is history.

4. Tap your interests. Thousands of clever people have taken up hobbies and turned them into a
successful business. Tim and Nina Zagat, who launched the Zagat Surveys, a publishing empire that
sells restaurant guides for many major U.S. and European cities, are great examples. In the early
1970s, the Zagats were high-priced corporate attorneys whose passion was dining out. For fun, they
created a newsletter in which they asked their friends to rank popular restaurants in several
categories. Each year, the newsletter encompassed more restaurants. Eventually it became such an
expensive and time-consuming undertaking that the couple began charging money for it to allay
their expenses. That was the meager beginning of the famed Zagat Survey, which is sold in
bookstores worldwide. "When you're doing something you love, it's never considered work," says
Ries.

5. Travel. Traveling opens your eyes to a plethora of potential business ideas. Ries cites Leopoldo
Fernandez Pujals' discovery of Domino's Pizza on a trip to the United States from his native Spain.
Pujals was so impressed with the fast-food operation, he went back to Spain and launched his own
version, called TelePizza, in 1986. His company now registers $260 million in sales, and employs
13,000 people in eight countries.

6. Keep your eyes open. "When you see something that piques your interest, ask yourself, What is it
about this situation that's special?" says Ries. "Then narrow your focus so you home in on the idea."
The process of zeroing in on the idea often spawns important niche markets. "Blockbuster Video's
niche is renting videos, and Bulbs Unlimited's niche is selling light bulbs," says Ries. Get it?

7. Examine old mousetraps--then build a better one. "If a product doesn't meet your own high
standards, create a better one," advises business trendwatcher Perry Lowe. "That's what put Ben &
Jerry's on the map." Ice cream fanatics Ben Cohen and Jerry Greenfield felt popular ice creams
weren't rich and tasty enough for their cultivated palates, so they created their own super-premium
line of ice cream, which is a bestseller nationwide. Just think: If these ice cream gurus weren't such
picky eaters, there would be no Cherry Garcia, Chubby Hubby or Phish Food to enjoy.

8. Take it to the streets. There's no better place to lock into up-and-coming trends than city streets,
Lowe contends. Street culture spawned punk, hip-hop, grunge and a number of other fads that
rapidly evolved into multimillion-dollar businesses. "Great ideas can often be found by just browsing
happening inner-city neighborhoods in virtually any big city in the United States," says Lowe.

9. Sleep on it. Many people ignore their dreams, and some don't remember them at all. But
sometimes it pays to listen to those inner messages, no matter how strange or unintelligible they
are. "You never know, you might just find the germ of a great idea," says Lowe. The tough part is
crawling out of bed in the dead of night to jot down those great ideas before they're forgotten.

10. Check out the Net. Finally, Lowe endorses Web surfing as a fun way to log on to potential
business ideas. "Virtually every search engine has a 'What's New' or 'What's Hot' section, where it
lists new trends, news tidbits and hot new Web sites," says Lowe. "Make it a point to check out
various sites daily. It may trigger an idea or concept you never thought of."

10) The entrepreneur is expected to sell the business concept Justify the
statement.

In order to sell a business concept, it must have commercial validity. It should preferably be proven

that it is commercially viable and can generate revenue. There is a common misconception that
business ideas alone have value. There is a proliferation of ideas and to most people, they have little

value. Most business owners are inherently idea-oriented people and most of them already have

dozens of ideas that they wish to implement but dont have the time. There are several ways,

however, to sell an idea or concept that you might have.

How can I sell my business concept?

Protect your idea

If you can protect your idea with either a patent, trademark or some other form of intellectual

property, then you may be able to develop significant value. Because many ideas can quickly be

copied, few are willing to pay for an idea if others can easily copy it.

Prove that it works

If you can prove that your idea works even if you cannot patent it, then you greatly increase the

chances that you can sell the concept. Business people are idea people and most business people

have dozens of ideas but are short in time to execute all of them. If you can prove that your idea

works, then you can likely sell it.

Make it turn-key

Buyers prefer concepts and businesses that are turn-key. The less work they have to do before

turning the idea into money, the better. An abstract idea without a specific game plan, drawings,

etc. is worth very little to most people.

Where to advertise your business concept for sale:

The most effective place to advertise a business concept is the same place where established

businesses are being advertised for sale. We regularly assist people who wish to sell a business

concept. If you have a business concept that has been proven, then please call us to see if we can

help you.
The bottom line to selling a business concept is that you must sell more than just an idea. If it is

proven and you can prevent others from copying it, then you can surely sell it. The best ideas to sell

are those that can be clearly communicated and have been proven to work.

11) What are the different skills required in modern business? Make a
comparative analysis of these underlining their relevant importance.

You will require a number of skills to start and run a business. It is important to identify the skills you
need to develop or improve so that you can succeed in your day-to-day business operations.
These business skills are essential

Financial management: Being able to effectively managing your finances is a critical. You will
need to be able to forecast your cash flow and sales, as well as, monitor your profit and loss.
You will also need to declare your income to the Australian Tax Office.
Having sound financial management skills will help you to run your business profitably and
protect your financial investment.
Marketing, sales and customer service: It is important to be able to promote your products
or services effectively. Providing good customer service and having a marketing strategy in
place will help you to generate sales.
Communication and negotiation: You will need to communicate and negotiate with your
suppliers, potential investors, customers and employees. Having effective written and verbal
communication skills will help you to build good working relationships. Every communication
should reflect the image you are trying to project.
Leadership: If you employ people leadership will be a key skill. You must be able to motivate
your staff in order to get the best out of them and improve productivity. Allocate time to
mentor and coach your employees.
Project management and planning: Starting a business means you will have to manage a
range of projects, such as setting up a website, arranging the fit-out of your premises and
developing a range of policies and procedures. Knowing how to effectively manage your
resources, including time, money and staff will help you to achieve your goals.
Delegation and time management: Failure to delegate is a trap many business owners fall in
to usually because they are reluctant to let go of control. Managing your time effectively
may mean delegating responsibility to someone else in the business or outsourcing.
Identifying who you can delegate tasks to allows you to concentrate on those tasks that
generate revenue.
Problem solving: However much you plan, you will encounter problems in your business.
This means you need to be able to make good decisions, sometimes under pressure.
Networking: Building good relationships through networking will help you to grow your
business and give you the support youll need.
Further your knowledge and skills

Running a business is a demanding task. Seek assistance if you are unsure about your abilities and
skills. Developing the necessary skills will provide your business with solid foundations.

More information

1. Speak to one of our business advisers or a Business Local service provider.

2. Consider attending our business workshops.
3. Search for small business training courses on the MySkills website.
4. Speak to your industry association about whether they provide training.
12) Briefly explain the role of Body Language in business setup.
Definition of Body language.
Body language is a language without spoken words, it is called non verbal communication .
We use it all the time in our social life and business life so it is all about gestures movements and
expressions made by people to deliver a specific message to other people .
The role of Body language.

When we connect with a person, we also have to make it clear to each other how the content of a
spoken message needs to be interpreted but sometimes we are unable to deliver our messages by
spoken or even written languages so we use the body language to supplement what we want to say
by gesturing ,moving or even giving some facial expressions .
Body language in different cultures.
We should know that body language has different meanings in different cultures, so if we need to
travel abroad to a country that has different culture or traditions, we shoul read about how people
act there and study about their body language, especially when we need to conduct a meeting there
or if we are one of the participants in that meeting or other business situations such as job
interviews, because if we do not take this into account we may get ourselves in some serious
troubles.
Here are some examples of body language in different countries :
Eye Contact:
In the United States and Canada, INTERMITTENT eye contact is extremely important in conveying
interest and attention. In many Middle Eastern cultures, INTENSE eye contact between the same
genders is often a symbol of trust and sincerity however, between opposite genders.
Handshakes:
In parts of Northern Europe a quick firm handshake is the norm while in parts of Southern Europe,
Central and South America, a handshake is longer and warmer.
Greetings:
In America, there is a standard greeting: Hello, my name is.. with a handshake.
In Japan, people bow while in Italy, people kiss cheeks.
Touching:
In some sects of Judaism, the only woman that a man will touch in his lifetime is the woman he is
married to. In Japan, Scandinavia, and England, touching is less frequent. In Latino cultures,
touching is encouraged.
Some advices in Business body language

Posture
One of the first key things people notice is, how the person carries and presents himself whether he
walks and stands with confidence :

Stomach in

Chest out

Shoulders back

Head up.
Smiles
Smiles are an important facial expression. They show interest, excitement, empathy, concern; they
create an upbeat, positive environment. Smiles can, however, be overused. Often, men smile when
they are pleased; women smile to please. You know which is the most powerful!To gain and increase
respect, first establish your presence in a room, then smile. It is far more professional than to enter a
room giggling or "all smiles."

Eye Contact
It helps you understand what the other person is really saying verbally. When the eyes say one thing,
and the tongue another, a practiced man relies on the language of the first

Looking someone in the eye as you meet and talk with him/her also shows you are paying attention.
Listening is the most important human relations skill, and good eye contact plays a large part in
conveying our interest in others.