CBSE Class 10 Computer Science Chapter 1 Entrepreneurial Skills-II Notes

Entrepreneur

The word ‘entrepreneur’ is derived from the French word ‘entrepreneur’ which means to undertake. An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards.
Howard W. Johnson was an American educator. He says entrepreneur is composite of three basic elements (i) invention, (ii) innovation and (iii) adaptation. According to Joseph Schumpeter, ‘‘Entrepreneurs as innovators, who use the process of entrepreneurship to shatter the status quo of the existing products and services, to set new products, new services.’’

Entrepreneurship and Society

An entrepreneur has some personal qualities which influence his behaviour. No doubt, he lives in a society and therefore economic opportunities and gains affect him. Entrepreneur creates organisations. Entrepreneurship is affected by economic opportunities and gains as the entrepreneur lives in a society. Entrepreneurs promote investment, increase in production bring competitiveness in business, reduce costs of products and raise the standard of living in society.

Qualities/Characteristics of a Good Entrepreneur

The major qualities/characteristics of a good entrepreneur are linked below
- Leadership An entrepreneur must possess the characteristics of leadership and must lead a team for achievement of goals. The leader is able to clearly articulate their ideas and has a clear vision. An entrepreneurial leader realises the importance of initiative and reactiveness and they go out of their way to provide a support to the team.
- Risk Taking An entrepreneur with rational planning and firm decisions bear the risks. They have differentiated approach towards risks. Good entrepreneurs are always ready to invest their time and money but they always have a back up for every risk they take.
- Innovativeness With the changing needs and requirements of customers production should meet requirements with the help of innovative ideas. An entrepreneurial venture does not have to restrict itself to just one innovation or even one type of innovation. Success can be built on combination of innovation. For example, a new product delivered in a new way with a new message.
- Goal-oriented Goal-oriented entrepreneurs achieve the maximum results from their efforts in business due to the fact they work towards clear and measurable targets.
- Decision-maker An entrepreneur has to take many decisions to put his business idea into reality. He chooses the best suitable and profitable alternative.
- Highly Optimistic A successful entrepreneur is always optimistic and the present problems does not matter to them. He is always hopeful that the situation will became favourable for business in future.
- Motivator An entrepreneur has to create a spirit of team work and motivate them. So that he gets full cooperation from the employees.
- Self-confident An entrepreneur should have confidence to achieve his goals otherwise he won’t be able to convince his team to achieve his goals.
- Action-oriented An entrepreneur should have an action oriented vision and ideology to plan things well.
- Dynamic Agent An entrepreneur creates new needs and new means to satisfy them. He has the ability to visualise new ventures and new plans.
- High Achiever An entrepreneurs are high achievers as they have a strong urge to achieve. The most important characteristic is his achievement motivation.
- Trust in Self An entrepreneur believes on their own decisions and actions as he has trust in his perseverance and creations. He does not believe in luck.

Functions of an Entrepreneur

The various functions of an entrepreneur may be classified and described as under
- Innovation It includes introducing new products, opening new markets, new sources of raw material and new organisation structure.
- Risk Taking An entrepreneur has to take risk by choosing one among various alternatives.
- Decision-making It includes stabilising organisation’s aims and objectives and changing them according to changing conditions, taking decisions on effective techniques, utilisation of financial resources etc. So, decision-making is an important function of an entrepreneur.
- Organisation and Management An entrepreneur organise and manage various economic and human factors through planning, coordination, control, supervision and direction.
- Size and Scale of Business Unit An entrepreneur has to decide about the size of business unit as he wants to establish one production unit or more dependent upon the demand of the product. Similarly, he has to decide about scale of production i.e. small scale, middle scale or large scale.
- Appointment of Managerial and Other Work Force It is the entrepreneur who appoints the management staff as well as other work force as per the requirement and needs of the enterprise.
- Factors of Production The factors of production i.e. land, labour, capital etc., should be in appropriate proportion and to maximise output of these factors is the responsibility of the entrepreneur.
- Control and Direction He must exercise control over all departments and direct them on a timely basis.
- Finding Suitable Market A proper research must be done to find a suitable market for selling the products. Other functions like advertisement and publicity, appointment of selling agents, providing incentives to various selling intermediaries to promote sales should be given priority.
- New Inventions and Innovations New inventions and innovations must be encouraged and introduced in production, sales, marketing, advertisement etc.
- Establishing Relations with Government An entrepreneur must establish good relations with government and its functionaries. His functions are to obtain licences, payment of taxes, selling the product to government, provision for export-import etc.
- Establishing Contacts with Competitors An entrepreneur must form contacts with the competitors to analyse the market. He must be in a position to make opportunities out of the given situation.

Role and Significance/Importance of Entrepreneur

An entrepreneur is the builder of economic growth. He promotes the prosperity of a country by his initiative and skill for innovation and dynamic leadership. He creates wealth, opens up employment opportunities and fosters the other segments of economic system.
The role and significance of an entrepreneur are given under the following headings

- Organiser of Society’s Productive Resources An entrepreneur is the organiser of society’s productive resources. He is the person who assembles the unused natural, physical and human resources of the society, combines them properly, establishes effective coordination between them and makes the economic activities dynamic.
- Helpful in Capital Formation An entrepreneur is helpful in capital formation as we know that increase in the rate of capital formation is quite essential for the economic development of any country. Those nations which are not able to increase the rate of capital formation or does it nominally remain backward fromindustrial development’s point of view.
- Increase in Employment Opportunities An entrepreneur creates maximum employment opportunities in the society by way of establishing new industries, developing and expanding the existing industries and by undertaking innovative activities.
- Development of New Production Techniques An entrepreneur does not feel contended only with the existing techniques of production. Hence, he carries out various experiments for saving time, labour and capital in the production, as also to improve the variety and quality of the product and service.
- Visionary Leader An entrepreneur has a good vision towards the achievement of his goals. He is able to recognise profitable opportunities and conceptualise strategies.
- Contribution of the Execution of Government Policies An entrepreneur provide an important contribution in implementing government policies and achieving the national goals. An entrepreneurs cooperate with the government for implementations of development plans of the country.
- Higher Productivity Entrepreneur have the ability to produce more goods and services with less inputs. They play an important role in raising productivity.
- Initiator An entrepreneur is the one who initiates the process of creating an enterprise by coming up with the idea for the business and planning out how to turn that idea into reality.
- Backbone of Capitalist System Capitalist economy is one in which there is a freedom to save and invest to compete and operate any business. An entrepreneur plays a vital and prominent role in the enterprise because he controls market by assuming the role of a competitor and a leader.
- Ingredient of Modern Production System An entrepreneur has become the ‘balancing wheel’ of modern global economy. They seek the unique product, change the technical frontiers and reshape public desires. Today, entrepreneurs act as an ingredient of modem production system as they create wealth and employment.

Myths of Entrepreneurship

Entrepreneurship is a set of activities performed by the entrepreneur. It is the process of identifying opportunities in the market place. It is the attempt to create value. Many entrepreneurs believe a set of myths about entrepreneurship and the most common are as follows
- Starting a Business is Easy In reality, it is a very difficult and challenging process to start a successful business.The rate of failure of new ventures is very high but small entrepreneurship are comparatively easier to start.
- Lot of Money to Finance New Business Successful entrepreneurs design their business with little cash also.
- Startups cannot be Financed Under the schemes like MUDRA, entrepreneurs can raise loans from banks.
- Talent is more Important than Industry This is not true as the nature of industry an entrepreneur chooses greatly effects the success and growth of the business.
- Most Startups are Successful Mostly in the developing countries startups fail as they could not manage to earn high profits.

Advantages of Entrepreneurship

The main advantages of adopting entrepreneurship as a career are discussed below
- Independence An entrepreneur is himself a boss or owner and he can take all the decisions independently.
- Exciting Entrepreneurship can be very exciting with many entrepreneurs considering their ventures highly enjoyable. Everyday will be filled with new opportunities to challenge your determination, skills and abilities.
- Wealth Creation The principal focus of entrepreneurship is wealth creation and improved livelihood by means of making available goods and services. Entrepreneurial venture generates new wealth, new and improved products, services or technology form entrepreneurs, enable new markets to be developed and new wealth to be created.
- Flexibility As an entrepreneur you can schedule your work hours around other commitments, including quality time you would spend with your family.
- Status Success in entrepreneurship beings a considerable fame and prestige within the society.
- Ambition Fulfilment Through entrepreneurship one can fulfil his ambitions into original products or services.

Disadvantages of Entrepreneurship

Some of the disadvantages of entrepreneurship as a career are discussed below
- Huge Amount of Time You have to dedicate a huge amount of time to your own business. Entrepreneurship is not easy and for it to be successful, you have to take a level of time commitment.
- Risk An entrepreneurship involves high risk of loss. If the business fails then it will wipe away all the personal savings.
- Hard Work An entrepreneur has to work very hard to make the new business very successful.
- Uncertain Income There is no regular or fixed income available to an entrepreneur. So, there is uncertain kind of income received by an entrepreneur.
- Incompetent Staff A new entrepreneur may not be able to hire qualified and experienced staff so there are chances of incompetency by the staff due to lack of experience and knowledge.

CBSE Class 10 Computer Science Chapter 1 Entrepreneurial Skills-II Multiple Choice Questions

Question. Innovation of an entrepreneur includes
(a) division of work
(b) opening new markets
(c) introducing new products
(d) Both (b) and (c)
Answer. D

Question. Which of the following is a disadvantage of entrepreneurship as a career?
(a) Uncertainty
(b) Independency
(c) Ambition fulfilment
(d) None of the above
Answer. A

Question. Which of the following does an entrepreneur perform to achieve his goals?
(a) Advertisement and publicity
(b) Appointment of selling agents
(c) Both (a) and (b)
(d) New organisation structure
Answer. C

Question. In which situation an entrepreneur will not be able to convince his fellow beings? If he/she is
(a) low self-confident
(b) innovative
(c) risk-taker
(d) None of these
Answer. A 

Question. Incompetent staff means
(a) experienced staff
(b) qualified staff
(c) not experienced and qualified staff
(d) None of the above
Answer. C

Question. How does an entrepreneur can get the work done from his/her team?
(a) By creating a spirit of teamwork
(b) By motivation
(c) Both (a) and (b)
(d) Using harsh words and actions
Answer. C

Question. Which of the following is/are the function(s) of an entrepreneur?
(a) Innovation
(b) Risk taking
(c) Decision-making
(d) All of these
Answer. D

Question. Which of the following is an advantage of entrepreneurship as a career?
(a) Risk
(b) Hardwork
(c) Independence
(d) None of these
Answer. C

Question. Decision-making function of entrepreneur includes
(a) Hardwork
(b) Risk bearing
(c) Utilisation of financial resources
(d) Innovative
Answer. B

Question. ‘An entrepreneur has to get the work done through others.’ Which characteristic of the entrepreneur does this statement depict?
(a) Motivator
(b) Organiser
(c) Innovator
(d) None of these
Answer. A

Question. Which of the following characteristics should an entrepreneur have?
(a) Innovativeness
(b) Motivator
(c) Goal-oriented
(d) All of these
Answer. D

Question. Rehnuma has two people who work for her. Every day, she spends one hour with them to learn about what they have done that day. This means she
(a) Creates a new product
(b) Divides income
(c) Manages the business
(d) Innovates a product
Answer. C

Question. Which of the following statement is true about entrepreneurship?
(a) A lot of money is needed to start an entrepreneurial venture.
(b) Entrepreneurial ventures are mostly successful.
(c) Entrepreneurial ventures are easy to start.
(d) Most of the entrepreneurial ventures end up as failures.
Answer. A

Question. Which of these is the main aim of entrepreneurship?
(a) Earning profit
(b) Providing innovative products and services
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer. C

Question. Mary buys bulbs for her business from Noida. She learns that bulbs are cheaper in Faridabad. So, she decides to start buying bulbs from there.
(a) Make decisions
(b) Divide income
(c) Take risks
(d) Goal-oriented
Answer. A

Question. Which of these is not a characteristic of a successful entrepreneur?
(a) Risk taking
(b) Determination
(c) Nature lover
(d) Innovativeness
Answer. C

Question. An entrepreneur is the ………………… of society's productive resources.
(a) organiser
(b) developer
(c) innovator
(d) producer
Answer. A

Question. An entrepreneur has to take ………………… by choosing one among various alternatives.
(a) risk
(b) coordination
(c) action
(d) trust
Answer. A

Question. An entrepreneur has a good ………………… and sense of ………………… .
(a) vision, mission
(b) mission, losing
(c) vision, motivation
(d) motivation, betrayal
Answer. A

Question. Ravi’s customer comes to his store and starts shouting at him. He does not get angry. He listens to what his customer is saying. He is ………………… .
(a) hardworking
(b) confident
(c) patient
(d) prying new ideas
Answer. C

Question. Susheela decides to sell her company tyres in Sri Lanka. It does not sell and she has a loss. She apologises to the people who work for her. She says she will plan better next time. She ………………… .
(a) takes responsibility for your mistakes
(b) thinks before making a decision
(c) does not give up
(d) is creative
Answer. C

CBSE Class 10 Computer Science Chapter 1 Entrepreneurial Skills-II Case Based MCQs

Direction Read the case and answer the following questions.

1. Entrepreneurship development is the process of improving the skills and knowledge of entrepreneurs through various training and classroom programs. Entrepreneurship development is concerned with the study of entrepreneurial behaviour, the dynamics of business set-up, development and expansion of the enterprise. The whole point of entrepreneurship development is to increase the number of entrepreneurs. This accelerates employment generation and economic development. Entrepreneurship is promoted to help lessen the unemployment problem, to overcome the problem of stagnation and to increase the competitiveness and growth of business and industries. Entrepreneurship development concentrates more on growth potential and innovation.
Entrepreneurship development has gained increasing significance in developing an economy.It is an organised and systematic development. It is a tool of industrialisation and a solution to unemployment problem for any country.

Question. Which of the following is the concern related to the study of entrepreneurship development?
(a) Entrepreneurial behaviour
(b) Dynamics of business set-up
(c) Development and expansion of the enterprise
(d) All of the above
Answer. D

Question. Which of the following is a tool of industrialisation and a solution to unemployment problem for any country?
(a) Entrepreneur
(b) Entrepreneurship
(c) Entrepreneurship development
(d) None of the above
Answer. C

Question. The whole point of entrepreneurship development is related to
(a) increase the number of stakeholders
(b) increase the number of entrepreneurs
(c) decrease the number of shoppers
(d) increase the number of developers
Answer. B

Question. Which of the following does entrepreneurship development does not accelerate?
(a) Employment generation
(b) Economic development
(c) Stagnation of resources
(d) All of these
Answer. C

Question. Which of the following statement(s) is/are true about entrepreneurship development?
(a) Entrepreneurship development is an organised and systematic development.
(b) Entrepreneurship development concentrates more on growth potential and innovation.
(c) Entrepreneurship development is the process of improving the skills and knowledge of entrepreneurs through various training and classroom programs.
(d) All of the above
Answer. D 

2. Business includes all those economic activities which are concerned with the production/purchase and sale or exchange of goods and services with the objective of earning profits. A business enterprise is an economic institution as it is engaged in the production and/or distribution of products and services in order to earn profits. A factory owner, a shopkeeper, a transport company, an insurance company, a commercial bank, an advertising agency, etc., are examples of business enterprises. Hence, business may be defined as an economic activity involving the production and sale of goods and services to earn profits by satisfying human needs.
On the other hand, entrepreneurship is the process of discovering an opportunity, mobilising resources, launching an enterprise to explore the opportunity. It is an attempt to create value. Business and entrepreneurship are complementary to each other and cannot be separated.

Question. What is the name given to the process of discovering an opportunity, mobilising resources, launching an enterprise to exploit the opportunity?
(a) Entrepreneurship
(b) Entrepreneurship development
(c) Entrepreneurship activities
(d) Entrepreneur
Answer. A

Question. In which of the following activity a business enterprise is involved?
(a) Production and/or distribution of products and services in order to earn profits.
(b) Discovering an opportunity and mobilising resources.
(c) Launching an enterprise to exploit the opportunity.
(d) All of the above
Answer. A

Question. Which of the following is/are complementary to each other?
(a) Entrepreneurship and marketing
(b) Business and sales
(c) Business and entrepreneurship
(d) Business and marketing
Answer. C

Question. Which of the following is/are example(s) of business activities?
(a) An advertising company
(b) A factory owner
(c) A transport owner
(d) All of the above
Answer. D

Question. Which of the following statement(s) is/are false about business?
(a) Business may be defined as an economic activity involving the production.
(b) Business is concerned about the sale of goods and services to earn profits by satisfying human needs.
(c) Both (a) and (b)
(d) Business is an attempt to create value.
Answer. D

CBSE Class 10 Computer Science Chapter 1 Entrepreneurial Skills-II Short Answer Type Questions

Question. What is the contribution of the entrepreneurs in the execution of government policies?
Answer. The entrepreneurs provide an important contribution in implementing government policies and achieving the national goals. They cooperate with the government for implementations of development plans of the country.

Question. What is entrepreneurship development?
Answer. Entrepreneurship development is the process of improving the knowledge and skills of the entrepreneurs. In other words, it can be said that entrepreneurship development is the process of enhancing an entrepreneur’s ability to develop, manage and organise a business venture, while keeping in mind the risks associated with it.

Question. What do you mean by the term entrepreneurial skills?
Answer. Entrepreneurial skills are the basic skills that help an entrepreneur to start, develop, finance and successfully run a business. Every entrepreneur who is starting a business must have a complete knowledge of the various aspects of his/her business, not only for the success of his venture; but also for its growth and expansion.

Question. Explain the risk bearing characteristic of an entrepreneur.
Answer. An entrepreneur has to have patience to see his efforts bearfruit. In the intervening period (time gap between the conception and implementation of an idea and its results), an entrepreneur has to assume risk. If an entrepreneur does not have the willingness to assume risk, entrepreneurship would never succeed.

Question. Explain the role of an entrepreneur as a catalytic agent.
Answer. As Joseph Schumpeter says, entrepreneur’s task is “creative destruction”. He destroys to create new things. He changes and transmutes values. He searches change and responds to it. He is a change creator. Ralph Harwitz writes in his book ‘Realities of Profitability’, The entrepreneur makes a happening, wants piece of action, is the growth man. Without him there is no happening, no action, no growth.

Question. Explain the quality of an entrepreneur as a passionate person.
Answer. Successful entrepreneurs are passionate about making their business succeed. They genuinely love their work and are willing to put in extra hours to make their business succeed. Success gives them a joy that goes beyond money.

Question. State a difference between an entrepreneur and a businessman.
Answer. An entrepreneur is different from a conventional businessman. A businessman is someone who sets up a business with an existing idea offering products and services to customers. An entrepreneur, on the other hand, is a person who starts an enterprise with a new idea or concept or a better way to offer an existing idea or concept.

Question. What is a business plan?
Answer. An entrepreneur conducts studies to assess the feasibility of the market as regards the proposed products or services. He makes an assessment of the resources required to run the enterprise and the problems that may possibly be faced. Such a blue print of an enterprise is termed as a business plan or a project report.

Question. Why an entrepreneur is considered as an ‘enterprising man’?
Answer. A business does not get started by itself. It is the entrepreneur who takes the risks and is willing to face devastating failure. He braves uncertainty, strikes out on his own wit, devotion to duty and singleness of purpose, somehow creates business and industrial activity where none existed before. His values and activities have become integral to corporate culture.

Question. How does an entrepreneur promotes economic prosperity of a country?
Answer. Entrepreneurs can bring about drastic changes in the very structure of the economy. They stand beyond challenges and make huge profits in every economic system. They are an important source of economic development. They create jobs, wealth and capital in the country. They promote investment, increase production and bring competitiveness in business, reduce costs of products and raise the standard of living in society.

Question. Why an entrepreneur is highly optimistic?
Answer. A successful entrepreneur is always optimistic and is not disturbed by the present problems faced by him. He is always optimistic that the situation will become favourable for business in future.

Question. Explain the role and significance of entrepreneurs.
Answer. The role and significance of entrepreneurs are discussed below
(i) Organiser of Society’s Productive Resources An entrepreneur is the organises of society’s productive resources. He is the person who assembles the unused natural, physical and human resources of the society, combines them properly, establishes effective coordination between them and makes the economic activities dynamic.
(ii) Helpful in Capital Formation An entrepreneur is helpful in capital formation or we know that increase in the rate of capital formation is quite essential for the economic development of any country.
(iii) Increase in Employment Opportunities An entrepreneur creates maximum employment opportunities in the society by way of establishing new industries, developing and expanding the existing industries and by undertaking innovative activities.

Question. What are the myths of entrepreneurship? Explain.
Answer. The myths of entrepreneurship are as follows
(i) It is Easy to Start a Business This depends on the scale of the enterprise. Starting up a large entrepreneurial venture is a challenging process. Small scale enterprises are easier to set up. Moreover, the rate of failure of new ventures is quite high all over the world. Just about one-third of all enterprises become profitable only after operating for several years.
(ii) Lot of Money is needed to Startup a New Venture Again, this depends on the type and scale of the business venture. There are ventures that can be started with a small amount of money. Big ventures need a lot of investment.
(iii) A Startup cannot Borrow fromthe Banks Today our government is promoting startup ventures and offering them loans on easy terms under various government schemes such as MUDRA (Micro-units Development and Refinance Agency) and MSME (Micro, Small & Medium Enterprises) scheme.
(iv) Businesses either Flourish or Fail This is not always the case. Some ventures initially falter or have lackluster growth rates. However, with right re-planning and effort they may go on to achieve a healthy growth.
(v) A Good Idea is the only Requirement for a Successful Enterprise Remember that even the best of ideas need proper execution to become a reality. Ideas are important, but so are planning, talent, leadership, communication and a host of other factors.

Question. Define an entrepreneur. Explain the leadership and decision-making qualities of an entrepreneur.
Answer. An entrepreneur is someone who perceives opportunity, organises resources needed for exploiting that opportunity and exploits it.
An entrepreneurial leader realises the importance of initiative and reactiveness as they go out of their way to provide all support to the team.
Decision-making is an important function because it includes stabilising organisation’s aims and objectives and changes them according to the changing conditions.

Question. Explain the role and significance of an entrepreneur as an enterprising man and a visionary leader.
Answer. Enterprising Man A business does not get started by itself. It is the entrepreneur who takes the risks and is willing to face devastating failure. He braves uncertainty, strikes out on his own and through native wit, devotion to duty and singleness of purpose, somehow creates business and industrial activity where none existed before. His values and activities have become integral to corporate culture.
Visionary Leader An entrepreneur has a good vision and sense of mission. He instills inspiration. He is able to recognise potentially profitable opportunities and to conceptualise the venture strategy. He is the key force in successfully moving the idea from the laboratory to the market place. He has the sense of accomplishment.

Question. Do you think an entrepreneur is innovative by nature? Discuss.
Answer. Customer’s requirements and tastes keep on changing, therefore, production should meet the customer’s requirements. Thus, innovativeness is another important characteristic of an entrepreneur. He always tries to out strive others by taking initiative in doing new things, i.e. exploring new products, new markets, new raw materials, new methods of production etc.

Question. Do you think entrepreneur is a leader? Discuss.
Answer. An entrepreneur is essentially a leader. According to K.L. Sharma, a psychologist, entrepreneurs are men who exhibit qualities of leadership in solving problems. They have to lead a team for achievement of goals. Thus, an entrepreneur must have all universally accepted qualities of a leader, i.e. initiative, high energy level, self-confidence, human relations skills, motivational skills, creativity and keen desire to solve problems.

Question. Explain the creative and determined nature of an entrepreneur.
Answer. Creativity Creativity is probably the most important trait of an entrepreneur. Entrepreneurs often come up with innovative solutions and repurpose their products to market them to new industries. Repurposing means transforming a product for an alternative use.
Determination Successful entrepreneurs do not believe that something cannot be done. They make determined efforts and work hard to achieve success in all their endeavours. 

CBSE Class 10 Computer Science Chapter 1 Entrepreneurial Skills-II Long Answer Type Questions

Question. Explain characteristics or qualities of an entrepreneur.
Answer. The characteristics of successful entrepreneurs are as follows
(i) Goal-oriented Entrepreneur is goal-oriented. Firstly, he sets a goal to achieve, i.e. to earn profit by producing goods and services and after reaching one goal he proceeds to another goal.
(ii) Highly Optimistic A successful entrepreneur is always optimistic and is not disturbed by the present problems faced by him. He is always optimistic that the situation will become favourable for business in future.
(iii) Trust in Self An entrepreneur does not believe in luck or fate. He believes in his own firm decisions and actions. He has trust in his perseverance and creations.He pulls his own strings.
(iv) Leadership An entrepreneur must possess the characteristics of leadership and must lead a ream for achievement of goals. The leader is able to clearly articulate their ideas and has a clear vision.
(v) Innovativeness With the changing needs and requirements of customers production should meet requirements with the help in innovative ideas. An entrepreneur does not have to restrict itself to just one innovation rather he must use combination of innovation.
(vi) Decision-maker An entrepreneur has to take many decisions to put his business idea into reality. He chooses the best suitable and profitable alternative.

Question. What are the functions of an entrepreneur? Explain.
Answer. The functions of an entrepreneur are as follows
(i) New Inventions Encouraging new inventions and introducing innovations in production, production techniques, sales, marketing, advertisement etc.
(ii) Establishing Relations with Government To establish relations with government and its functionaries. In this regards his functions are
(a) obtaining licences, (b) payment of taxes, (c) selling the product to government, (d) Provision for export-import etc.
(iii) Size and Scale of Business Unit To decide about size of business unit, i.e., he wants to establish one production unit or more etc. which is dependent upon demand of the product. Similarly, he has to decide about scale of production, i.e., small scale, middle scale or large scale.
(iv) Organisation and Management An entrepreneur organises and manages various economic and human factors through planning, coordination, control, supervision and direction.
(v) Factors of Production Another important function of an entrepreneur is the factors of production i.e. land, labour, capital etc., should be in right proportion and to maximise output of these factors is the responsibility of the entrepreneur.

Question. Explain the role of an entrepreneur as “Person with higher productivity” and “Ingredient of modern production system.”
Answer. Person with Higher Productivity Entrepreneurs have the ability to produce more goods and services with less inputs. They play an important role in raising productivity. John Kendrick Bangs writes, “Higher productivity is chiefly a matter of improving production techniques, and this task is the entrepreneurial function par excellence.” Two keys to higher productivity are research and development and investment in new plant and machinery. But there is a close link between R & D and investment programmes, with a higher entrepreneurial input into both.
Ingredient of Modern Production System Entrepreneur has become the ‘balancing wheel’ of modern global economy. They seek the unique product, the marketing breakthrough. They change technical frontiers and reshape public desires. They create wealth and employment. 

Question. Discuss the importance of entrepreneurship.
Answer. If we go through the business history of India, we come across many names who have emerged as successful entrepreneurs, like Tatas, Birlas, Dalmia, Modi, Ambani etc. These business houses started as small scale enterprises and have made their name in the list of industrialists of world fame.
The success of small enterprises and their growth to leading industrial houses can be attributed to entrepreneurs themselves. Thus, it is important to understand the success story of such entrepreneurs. There are definitely some common personal characteristics in entrepreneurs.
The entrepreneur is in essence an institution which comprises of all people required to perform various functions. The task of such people is to innovate, adjust or combine various factors of production, and expand on account of change in demand and market conditions. They must acknowledge the opportunities and must also be in a position to make opportunities out of a given situation.
(i) It give Freedom An entrepreneur is himself a boss or owner and he can take all the decisions independently.
(ii) It can be Exciting Entrepreneurship can be very exciting with many entrepreneurs considering their ventures highly enjoyable. Every day will be filled with new opportunities to challenge your determination, skills and abilities.
(iii) It Allows to Set your own Earnings The principal focus of entrepreneurship is wealth creation and improved livelihood by means of making available goods and services. Entrepreneurial ventures generate new wealth. New and improved products, services or technology from entrepreneurs, enable new markets to be developed and new wealth to be created.
(iv) If offers Flexibility As an entrepreneur you can schedule your work hours around other commitments, including quality time you would spend with your family.
(v) Status Success in entrepreneurship brings a considerable fame and prestige within the society.
(vi) It offers Ambition-fulfilment Through entrepreneurship one can fulfil his ambitions into original products or services.

Question. Describe the disadvantages of entrepreneurship as a career.
Answer. Some of the common disadvantages of entrepreneurship as a career are as follows
(i) Huge Amount of Time You have to dedicate a huge amount of time to your own business. Entrepreneurship is not easy and for it to be successful, you have to take a level of time commitment.
(ii) Risk Entrepreneurship involves high risk of loss. If the business fails then it will wipe away all the personal savings.
(iii) Hard Work Entrepreneur has to work very hard to make the new business very successful.
(iv) Uncertain Amount There is no regular or fixed income available to an entrepreneur. So, there is always uncertainty in terms of income.
(v) Incompetent Staff A new entrepreneurmay not be able to hire qualified and experienced staff so there are chances of incompetency by the staff due to lack of experience and knowledge.