NCERT Solutions For Class 11 Entrepreneurship Chapter 1 An Entrepreneur

Attitude is acquired over a period of time. The process of acquiring starts from childhood and continues throughout the life of an individual.

Motivated Entrepreneurs are ambitious and not satisfied by the slow growth of their venture. These entrepreneurs are motivated to use their technical and professional expertise and skills for the new enterprise.

'Hero Motocorp is an example of industrial Entrepreneur.

Fabian Entrepreneurs do not start a new venture as they follow the footsteps of their predecessors. They are not willing to take risks.

Entrepreneurs believe in the hard work as this can make everything possible. This respect for work provides direction to the goal that encourages them to pursue a path that relates rewards with the degree and quality of efforts made.

Competencies are specific skills and strength that an individual possess. It is the defined behaviour which gives a structured guide enabling identification and evaluation of behaviours in an individual.

Entrepreneurship motivation is the complex force that keeps the entrepreneurs focussed towards their work and put their all efforts so as to achieve organisational objectives.

Intrapreneurs are the employees who are specifically assigned an idea or project, with instructions to develop it in the same way as an entrepreneur does.

"Innovation time off ' is an intrapreneurship programme which was started by google.

Its main features are:

• It involves a proper formal way for selecting, evaluating and monitoring each project that has been approved by the Google.
• All employees are motivated to utilize their 20% time on projects which interest them as their thinking process will benefit the company and its clients.
• All employees willing to participate have to submit their application within a particular time period.
• As a result of intrepreneurship programme, it was seen that many of Google's newest products and services like Google news, Gmail and AdSense were developed with the help of such program and proved to be beneficial for the company.

Following consequences can be faced by the company not encouraging intrapreneurship:

• Problem in retaining innovative employees.
• Loss of ideas that can generate profits

According to C Danhof, entrepreneurs can be classified as:

• Innovative Entrepreneurs
• Imitative Entrepreneurs
• Fabian Entrepreneurs
• Drone Entrepreneurs

a) Respect for work:

Entrepreneurs believe in the hard work as this can make everything possible. This respect for work provides direction to the goal that encourages them to pursue a path that relates rewards with the degree and quality of efforts made.

b) Innovation and creativity:

Creativity is about seeing new ways of doing things. Innovativeness is making it work in practice.

Features of attitude are:

• It shapes the behaviour It is a natural tendency to maintain consistency between attitude and behaviour. Absence of external intervention, makes attitude, an intended behaviour.
• It is not visible: Attitude is a psychological phenomenon that cannot be seen. But it can be seen by observing its consequence.

Attitude cconstitutes an important psychological attribute of people that shape their behaviour. Attitude is formed in the process socialisation and it may relate to anything in the world and that is why it is pervasive.

A. All three labourers were doing the same work, but their behaviour i.e. their attitude towards work is what that differentiates them

B. An optimistic and right attitude is necessary towards doing the work efficiently and effectively.

C. The third labourer’s response saying that he is building a beautiful mansion showed his optimistic and positive attitude.

Raju falls under the basic psychological needs.

Physiological needs: These are the most basic and lowest needs which include the basic needs like food, clothes, etc. After this needs is fulfilled, a person moves to next level of need.

The type of competency reflected above is problem solving.

Competencies are specific skills and strength that an individual possesses. It is the defined behaviour which gives a structured guide enabling identification and evaluation of behaviours in an individual.

Under problem solving approach, an entrepreneur shall is prepared for problems that are bound to come in the path of success of his newly set up venture. He searches and analyses different alternative and chooses the ebst possible plan for solving a problem.

Such entrepreneurs takes the risk of solving a problem which then results in greater returns.

A business entrepreneur Ratan Tata undertook a big effort involving risk related to his project. In situation of facing uncertain complexities, he thought of an alternate plan and shifted the plant to another area, which shows that he inherits problem solving competency.

Ethics are the moral principles that guide one’s behavior:

• This has to do something with right and wrong that prescribe what an individual ought to do, mostly in terms of rights, obligations, benefits, etc.
• These are Efforts on the part of an individual for the betterment of their own moral conduct

According to Johan Wempe, ‘Ethical entrepreneurship, in a nutshell, amounts to the achievement of ethical goals through, entrepreneurship’. An entrepreneur should not forget that for success to be long lasting, he/she will have to follow some ethical standards in their business practices.

This includes:

• Giving good quality and right quantity of goods to consumers
• Adopting environment friendly production methods
• Providing fair wages to workers
• Not adopting illegal practices such as adulteration, child labour, etc.
• Using natural resources judiciously

An entrepreneur who is honest, fair and follow ethical practices is considered as an asset and should be allowed to survive and grow.

It involves a motivating factor i.e. financial assistance to entrepreneurs, which induced Mr. A to be an entrepreneur.

Hence, this falls under the category of Induced Entrepreneur.

Induced Entrepreneurs:

• They emerge as entrepreneurs because of incentives from the government in the terms of finance, concessions and other facilities
• Entrepreneurs are even induced or forced by factors such as loss of job or inability to find a suitable job opportunity to start a business venture.

Yes, Intrapreneurship is necessary for an organisation due to following reasons:

• Growth: Intrapreneurship helps organisations to get new businesses. This leads to their growth facilitated by increase in their scale of operations.
• Innovation: Intrapreneurship provides an environment that supports creativity and innovation.
• Change: Intrapreneurship enables organisations to manage change.
• Engagement: Intrapreneurship provides a platform to engage employees in work that is challenging and meaningful. This helps in retaining employees in the organisation and results in the growth of the business.

Competency in creativity and innovation helps an entrepreneur to develop ideas which are new and different. Such competency is considered as the most basic characteristic that an entrepreneur should have.

Being creative and innovative helps an entrepreneur to use creative ideas and innovative products and services to meet the challenges of a situation and fulfill the demand of consumers. An entrepreneur takes the benefit of the utility of an idea or a product to earn maximum returns.

Esteem needs define an individual's need for self-respect and self-esteem.

In an organization, people feel the need to be important through achieving status, authority, recognition, appreciation, attention and reputation.

After getting their basic, security and social needs fulfilled, people aim to achieve a status where they want to have respect in the society. They want to feel that they are important and be recognised for their efforts and hard work.

Entrepreneurial values are the qualities that guide and direct the entrepreneur. Factors that influence entrepreneurial values are:

• Action Factors These factors arise due to the action of others and are a result of the influence of others on the entrepreneur.
• Environment Factors These factors emerge out of the environment in which an entrepreneur and the enterprise operates.
• Personality Factors These factors are the result of personality of the entrepreneur

Classification of entrepreneurs based on motivational factors:

• Spontaneous or Pure Entrepreneurs: They are motivated by their urge for self-fulfilment and achieve their excellence in job performance. Creativity is their strength and they undertake work for self-satisfaction; hence, they are also known as pure entrepreneurs.
• Induced Entrepreneurs: They emerge as entrepreneurs because of incentives from the government in the terms of finance, concessions and other facilities. Entrepreneurs are even induced or forced by factors such as loss of job or inability to find a suitable job opportunity to start a business venture.
• Motivated Entrepreneurs: These entrepreneurs are motivated to use their technical and professional expertise and skills for the new enterprise. They are ambitious and not satisfied by the slow growth of their venture.

Classification of entrepreneurs on the basis of the technology used in business:

• Technical Entrepreneurs: These entrepreneurs have ability to developing new and improved quality of goods and services with their own knowledge, skills and specialisation. They focus more on production than on marketing.
• Non-technical Entrepreneurs: They focus on developing alternative ways of marketing the goods or services to promote their business. They don’t focus on technique of production but on marketing.

Business Ethics is the form of professional ethics that comprises of study of business policies and practices with regard to corporate governance, insider trading, bribery, discrimination, corporate social responsibilities and fiduciary responsibilities.

Ethical behavior help a business to:

• Attract customers to firm’s product
• Reduce labour turnover and increase productivity
• Attract investors and keep share price high

Systematic planning refers to taking action or steps in a proper manner.

An entrepreneur takes the risks and invest his money to start an enterprise and puts his efforts to make it successful.

Before starting an enterprise, entrepreneurs through adapting systematic planning, develop a proper that specifies what operations would need to be performed so as to achieve the goals. This helps an entrepreneur in defining what actions, strategies or policies needs to be implemented in case any uncertain event occurs.

a) Persistence:

Intense perseverance on the part of the entrepreneur is required for creating a demand in the market for the product/service.

b) Leadership:

Leadership qualities are required to guide and motivate the team. In the adversity, willpower, effective business acumen and communication skills of a leader are required to oversee success of an enterprise

c) Systematic planning:

With limited resources in terms of time, finance and manpower, an entrepreneur invest their savings and total energy in creating entrepreneurial ventures. Detailed blueprint through systematic planning is required for putting the whole enterprise into operation.

Entrepreneur is the owner of an enterprise whereas an employee is working for an entrepreneur i.e., he is servant in the enterprise.

The entrepreneur acts as an innovator and a change agent as he himself thinks about what and how to produce whereas an employee is responsible for executing the set plans as per given schedule and meet the target.

Yes, it’s correct to say that innovation and creativity both are interrelated.

These are considered to be one of the most important attributes that defines an entrepreneur.

With the help of innovative and creative thinking, entrepreneurs are able to think differently and present creative products and services for the people.

Creativity refers to the ability of a person to see things differently and innovativeness is the ability to put this creativity into action.

Fabian Entrepreneurs don’t start a new venture as they follow the footsteps of their predecessors. They are not willing to take risks and are usually rigid, fundamental and cautious. They are generally found in developed countries.

Attitude is the way a person thinks about something i.e., about a person, place, a situation, an idea, etc. It constitutes an important psychological attribute of people that shape their behaviour.

Attitude is acquired over a period of time. The process of acquiring starts from childhood and continues throughout the life of an individual.

Some of the sources of attitude are:

• Personal experience: Quality of direct experience with the attitude object determines his/her attitude towards it.
• Group influence: People are influenced by members of the group to which they belong. Groups are important in affecting a person's attitudinal development.
• Influential others Personal contact with influential persons such as friends, relatives, experts and celebrities also changes a person’s attitude.

Systematic planning refers to taking action or steps in a proper manner. An entrepreneur takes the risks and invest his money to start an enterprise and puts his efforts to make it successful.

Before starting an enterprise, entrepreneurs through adapting systematic planning, develop a proper that specifies what operations would need to be performed so as to achieve the goals. This helps an entrepreneur in defining what actions, strategies or policies needs to be implemented in case any uncertain event occurs.

After systematic planning, an entrepreneur is required for creating demand in the market for the product/service. With intense perseverance and commitment to achieve success, he/she focuses on creating demand, despite facing any obstacles or barriers. Persistence helps an entrepreneur to stay motivated and encouraged to achieve goals.

It is the way a person thinks about something i.e., about a person, place, a situation, an idea, etc. Features of attitude are:

• Shapes the behaviour: It is a natural tendency to maintain consistency between attitude and behaviour. Absence of external intervention, makes attitude, an intended behaviour.
• Not visible: Attitude is a psychological phenomenon that cannot be seen. But it can be seen by observing its consequence.
• Acquired: Attitude is acquired over a period of time. Process of acquiring starts from childhood and continues throughout the life of an individual.
• Pervasive: Attitude is formed in the process socialisation and it may relate to anything in the world.

Some of the important entrepreneurial competencies are:

• Taking initiative: This relates to competency of an entrepreneur to start something new. An entrepreneur should observe commercial trends, product types, change dynamics and consumer trends.
• Being creative and innovative: An entrepreneur uses creative ideas and innovative products and services to meet challenges of a situation.
• Risk taking capacity: An entrepreneur ventures into new ideas and new services that are risky. Factors that affect the success of his venture are outside the control of an entrepreneur.
• Problem solving approach: An entrepreneur shall be prepared for problems that are bound to come in the path of success of his newly set up venture.

Business Entrepreneurs evolve an idea of a new product or service and set-up an enterprise and arrange resources to convert that idea into reality. These can be :

• Trading entrepreneurs: They choose trading activities either in domestic markets or in foreign markets. They identify the potential of the market by looking at the market demand and then promote their business
• Industrial entrepreneurs: They are involved in manufacturing products and offering services that have an effective demand in the market. They transform economic resources and technology into a profitable unit.

According to David McClelland there are three motives that drive people regardless of their culture or gender.

• Achievement needs: This is from the wish to take responsibility for solving the problems, mastering complex tasks, setting goals and getting feedback on the level of success
• Affiliation needs: It is characterised by a desire to belong, enjoy teamwork, be concerned about interpersonal relationships and reduce uncertainty.
• Power needs: This is characterised by a desire to control and influence others, a need to win arguments, persuade and prevail.

Yes, it’s true that entrepreneurs cannot survive and grow without fulfilling the ethical responsibilities of the society.

An entrepreneur should not forget that to achieve success, he/she needs to follow the ethical standards as it helps in attracting customers, reduce labour turnover and increase productivity and also helps in maintaining the reputation which further attracts investors and keeps the share prices of company high. These ethical practices include while conducting business which includes:

• Giving good quality and right quantity of goods to consumers
• Adopting environment friendly production methods
• Providing fair wages to workers
• Not adopting illegal practices such as adulteration, child labour, etc.
• Using natural resources judiciously

If an entrepreneur fails to follow such practices, he/she can face huge consequences like employees leaving the company, damage to goodwill of the company, facing legal consequences, being sued by other parties, government taking legal action, etc.

The Process of motivation can be explained further as follows.

• It starts with an unsatisfied need of an individual.
• This leads to development of tension within the individual making him/her search for ways to relieve the tension.
• This in turn, leads to certain drives and searching alternatives so as to achieve one's goal that is to eventually reduce the tension.
• This drive then motivates the individual to search for different options so as to satisfy his/her need.
• Suppose an individual eats biscuit, then his/her need of fulfilling hunger is satisfied and he/she is relieved of tension.

An entrepreneur is the one who takes the risk of starting a new enterprise. He/she is creative, innovative and has strong urge to be independent.

There are different types of entrepreneurs which can be classifies as follows:

1. As per C Danhof, Entrepreneurs can be classified as:

• Innovative Entrepreneurs
• Imitative Entrepreneurs
• Fabian Entrepreneurs
• Drone Entrepreneurs

2. According to Wagner entrepreneurs can be

• Trailblazers
• Go-getters
• Managers
• Motivators
• Authoritarians
• Collaborators
• Diplomats

3. Entrepreneurs Based on the Types of Business

• Business Entrepreneurs
• Corporate Entrepreneurs
• Agricultural Entrepreneurs
• Professional Entrepreneurs

4. Entrepreneurs Based on the Technology used in Business

• Technical Entrepreneurs, or
• Non-technical Entrepreneurs

An entrepreneur can strengthen a firm’s future success, if he follows the ethical standards and conducts business in honest and fair manner.

These ethical practices include while conducting business which includes:

• Giving good quality and right quantity of goods to consumers
• Adopting environment friendly production methods
• Providing fair wages to workers
• Not adopting illegal practices such as adulteration, child labour, etc.
• Using natural resources judiciously

Following of ethics can help entrepreneurs in following ways:

• It helps in attracting customers
• Reduce labour turnover and increasing productivity
• Helps in maintaining the reputation which attracts investors and keeps the share prices of company high.

However, an entrepreneur can weaken a firm’s success, If he/she entrepreneur fails to follow such practices as huge consequences like employees leaving the company, damage to goodwill of the company, facing legal consequences, being sued by other parties, government taking legal action, etc. can be faced which can affect the business operations severely.

Competencies required by an entrepreneur are:

• Basic competencies: An entrepreneur require them for efficient running of business. Some of these are latent i.e., already existing and need to be identified, nursed and nurtured.
• Taking initiative: Relates to competency of an entrepreneur to start something new. Observation attributes help an entrepreneur to take initiative.
• Being creative and innovative: An entrepreneur uses creative ideas and innovative products and services to meet challenges of a situation.
• Risk taking capacity: An entrepreneur ventures into new ideas and new services that are risky.
• Problem solving approach: An entrepreneur shall be prepared for problems that are bound to come in the path of success of his newly set up venture.
• Leadership abilities: Leadership qualities are required to guide and motivate the team.
• Determination: Intense perseverance on the part of the entrepreneur is required for creating a demand in the market for the product/service.
• Believing in quality work: One of the competencies necessary for an entrepreneur is sensitivity and value to the ‘standard’ and ‘quality of work’.
• Knowing importance of information: With information, entrepreneur becomes aware of changes taking place in environment. Information can be accessed by research and by using feedback from previous related experience.
• Planning: With limited resources in terms of time, finance and manpower, an entrepreneur invest their savings and total energy in creating entrepreneurial ventures.
• Ability to persuade: An entrepreneur should know how to influence environment comprising of individuals and institution, for mobilising resources, obtaining inputs, organising production and selling products and services.
• Capacity to launch: Entrepreneurs respond to opportunities that exist in environment and ensure best use of these resources.
• Capacity to manage: Enterprise demands management abilities on the part of its owner. These determine sustenance of an enterprise.

Abraham Maslow presented a theory of motivation known as Maslow’s hierarchy of needs.

The theory assumes that people are motivated through five needs. These needs are ranked as per the influence of an individual’s attitude towards them.

• Physiological needs: These are the most basic and lowest needs which include the basic needs like food, clothes, etc. After this needs is fulfilled, a person moves to next level of need.
• Safety/Security needs- these needs occur after a person’s basic needs are satisfied. These involve fulfilling needs related to job security, pension, economic needs, stability, etc. In an organisation, it is important for a person to know that he/she has a secure job.
• Social needs: These refer to needs which gives a sense of belongingness. These include feeling of affection from others, social interaction, acceptance from peer groups, friendship and love.
• Esteem needs: These define an individual's need for self-respect and self-esteem. In an organization, people feel the need to be important and achieve status through authority, recognition, appreciation, attention and reputation. They aim to earn respect in the society as well.
• Self-actualisation needs: These rank as the highest need in the Maslow’s hierarchy theory. These involve a person’s desire to be self-independent, self-realisation and to reach what he is capable of.

Some of the essential attitudes of an entrepreneur are:

• Passion: Passion in business helps an entrepreneur to overcome difficult moments, have trust among people and persuade them to do business with him
• Trustworthy: People want to work with trustworthy entrepreneur as they want to work for them in a culture of integrity. Same way customers also buy from entrepreneurs they trust.
• Flexibility: Plans and strategies are bound to change with changing times and dynamic environment Therefore, entrepreneur should be flexible enough to change.
• Not afraid of failure: Entrepreneurs consider failure as an opportunity to learn.
• Decisive: Being Decisive is very important for an entrepreneur as leads one to miss opportunities.
• Self-recognition: Entrepreneurs should consider themselves as asset. Maintaining one's own health for balance and energy can enhance one's outlook.