NCERT Solutions For Class 11 Entrepreneurship Chapter 2 Enterpreneurial Journey

The diplomats are good for businesses that focus on customers more, retail or involve making deals with other people.

Collaborators are good for business related to customer service, retailing or business involving convincing others to get the work completed.

Motivators are suitable for businesses involving partnerships, retailing or dealing with other people.

The trailblazers have business strength in fields like marketing, operations, IT, consultancy and financial sector.

There can be following reasons that can cause failure of a business plan:

• Wrong execution of strategy
• Failure to implement the plan in a proper manner
• Firms fail to comply with their stated objectives
• Implementing wrong strategy

Feasibility study relates to the practical approach and viability of the proposed project by analysing areas like technical, financial, commercial and social-economic.

According to Centre for Entrepreneurship at University of Rochester defines feasibility as, “A feasibility study can be defined as controlled process identifying problems and opportunities, determining objectives, describing situations, defining successful outcomes, and assessing the range of costs and benefits associated with several alternatives for solving a problem”.

Focus Groups

• This group provides information on projected or services in a structured setting.
• There is a moderator who is responsible to focus the group discussion on a number of issues.

Ideas can generated by scanning the environment as large amount of information is available to detect emerging trends. This information can be acquired from:

• newspaper and magazines
• Reviews
• Government and consumer publications
• Trade publications
• Commercials, etc.

This requires a lot of effort, but results are rewarding.

For brainstorming, a group of people sit together and generate ideas about innovating alternative ways of meeting needs and solving problems.

It is a productive and unstructured discussion in which one idea leads to another.

Characteristics of Go-getters:

• They are very energetic, determined to be successful and able to deal with new or difficult situations
• They have natural style to manage and lead, both process and people
• They are dominant, sociable and independent
• They take initiative, coupled with a compelling sense of urgency to get things done on time
• Go-getters readily invest in, buy or start a business which is totally new to them and succeed.

Role of Family in an entrepreneur’s life is necessary due to following reasons:

• Support form family: Family's support, both morally and financially is very important. Unemployed youth would borrow initial funds from family and friends.
• Attitude of family: The family's attitude towards education plays an important role. Many families emphasise more on professional education of their children rather than funding a new business venture where risk is involved.
• Society's point of view about entrepreneurs: People prefer to marry their daughter to persons with government job or professional jobs as they are considered to be more secure In view of society, being self-employed is considers as risky.

Importance of Feasibility Study for Entrepreneurs

• Helps to know in detail all the things they need to make the business idea work
• Ascertain logistical and other business-related problems and solutions
• Design marketing strategies to convince investors and other potential creditors that their business is worth considering as an investment
• Be a solid foundation for developing their business plans

Opportunity Assessment

• It is the in-depth review of business opportunity.
• Includes market research and due diligence i.e., intellectual property analysis, opportunity development timing, legal liability issues, and applications of the opportunity, barriers to entry, industry trends, growth potential, market positioning, competitive analysis, financial projections and pricing, resource requirement analysis and licensing, etc.

Business Plan

It is a summary of all the important elements involved in starting a new enterprise. It includes answers to the questions such as how the business will organise its resources to meet its goals, how it will measure its progress, etc.

Importance of Business Plan

• A business plan is a blueprint of things to be done in future.
• It acts as a guide to the entrepreneur in raising the factors of production.
• It helps to direct the activities of the business venture and measures progress of the venture at successive stages.
• It also helps investors, lenders, suppliers, etc., to know about initiating the programmes of the business.

Types of feasibility study are:

• Market feasibility: It includes a description of the industry, present market and future market, potential competition, sales projections, potential buyers, etc.
• Technical feasibility: This includes the details of how to deliver a product or service. It involves study of materials, labour, transportation location of business, technology required, etc.
• Financial feasibility: This is the study of financial aspects of the project i.e., amount of start-up capital required, source of capital, returns on investment, etc.
• Organisational feasibility: It includes the study of legal and corporate structure of the business, professional background information about the founders and skills required.

Main sources of idea are:

1. Scanning of Environment

Ideas can generated by scanning the environment as large amount of information is available to detect emerging trends. This information can be acquired from:

• Newspaper and magazines
• Reviews
• Government and consumer publications
• Trade publications
• Commercials, etc.

2. Brainstorming

For brainstorming, a group of people sit together and generate ideas about innovating alternative ways of meeting needs and solving problems. It is a productive and unstructured discussion in which one idea leads to another.

3. Focus Groups

This group provides information on projected or services in a structured setting. There is a moderator who is responsible to focus the group discussion on a number of issues.

4. Market Research

This involves gathering information about products and services that are already there in the market. Useful data is obtained by analysing demand and supply position for a particular product or service.

Four types of entrepreneurs are:

1. Managers:

• These are in charge of a some group of tasks and people who act as vehicles for helping them to accomplish their goals.
• They are dominant, independent, goal-oriented, analytical, more focused on processes and outcomes, than on people.

2. Motivators:

• These entrepreneurs can make someone enthusiastic about some work.
• They have sociability, are dominant, driven and independent.
• They are able to see both sides of arguments and thus they do well in the toughest of customer service roles.

3. Collaborators:

• They believe in working together, especially in a joint intellectual effort.
• These entrepreneurs have social skills that they use to influence other people and get what they want.
• They follow prescribed rules and guidelines and are good at running customer-service oriented, retail business or any other business where it is very important to have convincing power.

4. Diplomats:

• These are the ones who use skills and sensitivity in dealing with others.
• They show the quality of social skills along with the drive to succeed. They also consider the views of the party opposite while entering into a deal or a transaction.
• They work easily even under pressure and they prefer to finish work well on time.

According to Dell (2012), following were the final outcome:

• In 2012, India would be the ideal country for women starting business
• It was expected to have an average growth rate of 90% over next 5 years for women entrepreneurs
• 71% of women also said that they have a successful business also.

Following limitations are faced by women entrepreneurs:

• Patriarchal society: Gender biasness in India limits the growth of women. India is predominantly male-dominated and thus women are considered as burden for a family.
• Lack of opportunities: Social infrastructure of the country is also not supportive. Many areas of our country lack the basic educational facilities and this stands as a barrier their progress.
• Enabling technologies for women: More opportunities should be created regarding new methods of production, marketing and other modern technologies.
• Social barriers: Traditions and custom of Indian society are hurdle in the path of women prosperity and growth. The barriers such as pardah system, early marriage, etc. can overcome through education positive attitude.
• Attitude of creditors towards women: Women entrepreneurs face biasness when it comes to granting of loans to them.
• Lack of opportunities in organised sector: Even skilled women work more in the unorganised sector where they are provided with minimum wages and no social security benefits.

Following fundaments are followed for execution of a business plan:

• Quantifiable goals: There must be quantifiable goals to support the strategy. These are formulated, keeping in view the core competencies of the organisation.
• Evaluation: An organisation must be evaluated for the right people with the right skills in the right job. Reallocation of employees, right number of employees, etc. must also be ensured.
• Initiatives and broad actions: These shall be identified for achieving the strategy. Gaps between where the organisation is today and where it plans to be, should also be identified. The initiatives should be implemented in all the departments across the organisation.
• Budget: Development of a budget may become a repetitive process until the right combination of strategies, tactics and financial prudence are formed.
• Effective Communication: Message should be circulated to the entire organisation.To support and strengthen the future vision of an organisation, compensation and reward systems should be developed.
• Effective review process: Markets, customers, competitors, government regulations, economy, etc., undergo a change and so review process shall also be changed. Review process helps in identifying the change respond accordingly.

Elements of Business Plan:

A business plan must cover following important aspects:

• Objectives and strategies of the organization: These parameters define the overall premises of the plan.
• Customer scenario: This aspect of the business plan identifies potential customers of the business, options available with them, their concerns, solutions offered by the proposed business, etc.
• Market segments that it will cater to: This aspects specifies the potential segments of market where the product/service will be offered by the business.
• Products and services to be offered:This part describes in detail the product/ services offered by the business along with the comparative study of the competitors.
• Forecast of sales: It helps to assess the future viability of the business. Investor’s decision is also influenced by this element of a plan.
• Process to achieve the objectives: This part describes the steps to be undertaken to achieve the objectives.
• Channel of distribution: This aspect defines the proposed distribution system for the product/services offered which can be direct or indirect.
• Promotional activities: This part specifies the various elements of promotion mix to be used and addresses the problem of promoting the product/service.
• Pricing decisions: This part has the description of the price of product/service and the factors considered for this price.