Long Type Questions - Entrepreneurial Opportunity, Entrepreneurship, Class 12 | Additional Study Material for Commerce PDF Download

Q1. Describe any three fields of ideas, with suitable examples. (CBSE 2011, A.I.)

Or
Explain any six idea-fields which act as convenient frames of references for an entrepreneur at the time of generating ideas. (CBSE 2010, 2008 A. I.)
Or
Discuss fields of ideas with suitable examples. [TBQ] (6 marks)
Ans. Idea Fields : By following different ways for generating ideas an entrepreneur collects a number of ideas. The process of generation of ideas can be streamlined by developing an awareness for different ‘idea fields’. This will help the entrepreneur in enlarging the scope of thinking, at the same time structuring the ideas according to convenient frames of reference. Thus, idea can be described as convenient frames of reference, for streaming the process of generation of ideas. Following are the various idea fields :
(1) Natural resources : Ideas can be generated based on natural resources. A product or service may be desired from forest resources, agricultural, horticulture, mineral, marine or acqua mineral, animal husbandry, wind, sun and human resources. A further exercise with a field may generate many useful product ideas. For instance, if we are getting ideas in the field of forest resources, we can think of forest produce, wood-based product, bio-fertilizer etc. Similarly, if it is horticulture, we can generate number of ideas for food preservation, canning & freezing juices, squashes, pulp, jam, pickles, etc. Similar exercises can be done with almost all the other natural resources.
(2) Existing products or services : There is constant and consistent effort on the part of all entrepreneurs to improve the products and services already in the market. When black and white computer screen came into use, immediately entrepreneurs started thinking of introducing colour monitors. There are new techniques and strategies being developed in every service like teaching, medicine, management, etc.
(3) Market driven or demand driven ideas : We have already seen that one important method for generating ideas is to carry out a market research. Such a study yields valuable data about trends of supply, demand, consumer preferences, etc. Sometimes information related to different products is available with associations and organisations which carry out routine market surveys. Whatever the source of information about the market, it is a promising field for generation of ideas.
(4) Trading related ideas : Trading these days is not limited to ordinary grocers or distribution outlets. With increasing consumerism, the scope and nature of trade has enlarged; local trade, imports and exports, ecommerce etc.are all making trading a very wide area of enterprise. Trade in simple term is buying goods and services and selling them to consumer at a profit. One big advantage that trading has over other types of business is that it is easier to launch and less risky.
(5) Service sector ideas : Along with manufacturing field, service sector is the most growing field these days all over the world. It emerges knowledge to societies doing advance research in information technology. An entrepreneur identifies new opportunities and by understanding it he links services to develop various business activities. Various service base units in an enterprise are transport, security, catering, recruitment, training and communication. It serves the purpose of helping enterprise to satisfy the day-to-day needs like bill collection, water tank cleaning, travel arrangement, etc.
(6) Creative efforts : Creativity is an important and key component of the talents and abilities needed for an entrepreneur. It can be applied to develop new products and services.

Q2. Explain any six ways in which ideas can be generated. (CBSE 2010, 2008)(TBQ)
Or
Describe any three methods adopted by entrepreneurs to generate ideas with at least one example for each. (CBSE 2011 A.I., 2009 Comptt.) (6 marks)
Ans. On the basis of scanning of environment, one take up a thorough study of different types. Ideas can be generated in a number of ways :
1. Brain-storming : A group of persons sit together and generate a number of business ideas by innovating alternative ways of meeting the needs and solving problems. It is an unstructured decision in which one idea leads to another. This is very productive method for generating as many ideas as possible.
2. Market research : This is a method of gathering information about products that already exist in the market.

A systematic and in depth study is undertaken to obtain useful data to determine demand supply position for a particular product or services that is already available in the market. Such a research will help in getting new ideas for products and services.
3. Using Hobbies to Generate Ideas : While many ideas come from external environment, some successful projects have materialised from personal hobbies. For instance, collecting flowers may develop into thriving trade in dried flower photography, gardening, painting, dancing, etc. are all hobbies with business potential.
4. Day-dreaming and fantasizing : Business opportunities are created when entrepreneur fantasize about products and services, they would love to have in their lives. Yesterday’s fantasies about space tourism are today’s reality. Many inventions are born out of man’s dreams.
5. Talking and listening to people : An entrepreneur has to be open and alert least he should miss an opportunity to receive new ideas. He should be a keen listener with an inquisite mind. By listening to people he will be able to find out the tastes, preferences and needs of the people around him. This information will help him develop products and services that actually possess the quality of satisfying consumer needs.
6. Gathering information from publication : A lot of information is available in printed form about products and services. Sales brochures, catalogues, advertisements, publicity posters, etc. are some of the sources easily available to anyone. They may sometimes trigger new concepts and ideas.

Q3. Explain how the process of a basic idea becomes an opportunity ? (5 marks)

Ans. The given diagram shows how the process of a basic idea becomes an opportunity :

The above given diagram explains that it is just a process of conversion of basic idea into opportunity. Business idea arises from an opportunity in the market. It originates from any need or want for any product or service that an entrepreneur can identify. In this process, all basic ideas have to undergo a vigorous process of close examination, evaluation, analysis and synthesis to become viable opportunities. An entrepreneur utilizes the skills, knowledge, creative thinking and competency needed to develop an idea which is backed up by various economical, social, political, financial and legal factors in the existing competitive market. By this process an entrepreneur converts ideas into viable business opportunities.

Q4. What are the five ways in which creative ideas can be generated ? (5 marks)

Ans. Creativity is an important and key component of the talents and abilities needed for an entrepreneur. Creativity can be applied to develop new products and services. There are basically five ways in which creative ideas can be generated. These are :
1. Develop a new product or service.
2. Improve an existing product or service.
3. Find a new process or resource for manufacturing a product.
4. Find new markets for existing products or services.
5. Find a new use of an existing product or service.

Q5. Comment on the following diagram : (6 marks)

Ans. On the basis of generation of ideas and scanning of environment, one can take up a thorough study of ideas of different types. It provides ideas to variety of situations which have to undergo a vigorous process of close examination, evaluation, analysis and synthesis out of which product and services can be selected. An entrepreneur gathers information about product or services that already exist in the market by using different approaches, like brainstorming, converting hobbies into business, etc. A systematic and in-depth study is undertaken by an entrepreneur to obtain useful data to determine demand and supply position for a particular product by market survey e.g., demand for stationery by students. By this, an entrepreneur can learn the gap between the demand and supply for stationery in the beginning of the year to the school/college. Then it can be a good opportunity to start venture using this information.

Q6. ‘An idea that is not assessed for its opportunity potential may fail in business.’ Comment on this statement with appropriate examples. (5 marks)
Ans. Earlier people used to believe that entrepreneurs are born, not made but now the concept has totally changed. “Entrepreneurs are made not born. Accordingly, we can say that all those person possessing adequate knowledge and skill acquired through education, experience and scanning of environment before implementing any idea can become successful entrepreneurs.” An idea that is not assessed for its opportunity potential may fail in business. For example, an NRI on the advice of his friends launched a herbal farm by investing huge amount for the purchase of agricultural land and developed irrigation system. But, the venture suffered from early disaster. The reason was that the entrepreneur was unsuccessful in fulfilling the requirement of the purchasers like Punctual delivery. This venture folded up in a very short time.

Q7. Disha, a graduate of Horticulture from Kurushetra University came across a barren land near Solan when she visited this place. Disha was fond of strawberries and was inquisitive to understand the reason why strawberries could not be grown there. She took this as a challenge and believed in its success. Best quality strawberries now mark the beauty of that barren piece of land.
(a) Identify and explain the idea field from where the idea has been generated.
(b) Also explain and give one example each for four other idea fields which may generate useful product ideas. (6 marks)
Ans. (a) Natural resources : Ideas can be generated on the basis of natural resources.
(b) (i) Existing products or services : A great business idea combines skills with imagination and market demand. For example, improved packaging of chips to retain freshness.
(ii) Market driven or demand driven : One important method for generating ideas is to carry out market research. It is an organized manner to gather information about target markets and help to understand the latest trends. For example, need for smart phones.
(iii) Trading Related : Trading these days are not confined to ordinary groccer or distributor outlets. For example, Flipkart.
(iv) Service Sector : It is growing worldwide due to advancements in information and technology. For example, Career counselling centers.
(v) Creative Efforts : Apart from applying creativity to spot and harness opportunities, it can also be developed to develop new products and services. For example, flat screen TV.