Short Answer Type Question- Entrepreneurial Opportunities | Entrepreneurship Class 12 - Commerce PDF Download

Sensing Entrepreneurial Opportunities

Question.1: Name any two ways in which entrepreneurs receive opportunities.

The two ways are:

1. Problems and needs;
2. Creative solutions to the problem.

Question.2: “Problems give rise to opportunities”. Comment on this statement.

Yes, it is right to say problems give rise to opportunities. Opportunity and problem solving are closely related to each other. A person starts scanning environment to find opportunities, when he wants solutions for his problems.

Question.3: List the two things that an entrepreneur has to ensure before selecting an opportunity

1. There is a good market for the product he is going to produce;
2. The rate of return on the investment is attractive to be accepted by him.

Question.4: Aditi started her boutique business near an industrial area and she was not getting clients as she had expected.
what are the factors which have been ignored before starting the boutique? Suggest the various factors that she has to look into before venturing into business.

1. She has ignored the following factors:
   • Whether there is a good market for the product that she is going to produce.
   • The rate of return on the investment is attractive or not.
2. Following factors she must look into before venturing into business:
   • Assured market scope.
   • An attractive and acceptable rate of return on investment.
   • Practicability of the idea.
   • Competence of the entrepreneur to encash it.
   • Potential of future growth.

Question.5: An entrepreneur should keep a check on changes. Justify the statement giving reasons.

Yes, an entrepreneur should keep a check on changes as all the environmental changes, be it social, legal or technological give rise in viewing business opportunities.

Question.6: List any two elements of a business opportunity

1. Assured market scope;
2. An attractive and acceptable rate of return on investment.
3. Practicability of the idea;
4. Competence of the entrepreneur to encash it;
5. Potential of future growth.

Question.7: What is meant by Entrepreneurship?

Entrepreneurship is the function which involves grabbing an opportunity, organising the resources and undertaking production and other activities. It is systematic, purposeful and creative activity of identifying a field, mobilising resources, organising production with a view to deliver value (goods or services) to customers, to generate return on investment and profit for self, bearing some risk and uncertainties.

Question.8: “For a viable venture to be born, an entrepreneur is required to apply his knowledge, skill, creativity, strategically to market”. Why is this strategic positioning required? Give reasons.

The knowledge, skill, competencies and creative thinking needed to develop an idea, should be backed by factors critical for market success to convert an idea into an opportunity

Question.9: When is a viable opportunity said to born ?

When knowledge, skill, competency and creativity are strategically applied for market orientation a viable opportunity is born.

Question.10: Who is an Entrepreneur?

Entrepreneur is a person who perceive opportunities, synthesizes the available information and analyzes emerging patterns that escape the attention of other people. They are people with vision, capable of persuading others such as customers, partners, employees and suppliers to see the opportunity, share and support it.

Question.11: Raman wants to do a business which is very innovative, profitable and unique but he is not getting an idea about what business to start. Suggest him different sources to obtain ideas.

The five sources to obtain ideas are :

1. Problems 
2. Change
3. Inventions 
4. Competition
5. Innovation.

Question.12: Explain the various factors involved in sensing opportunities?
or
What factors are involved in the process of Sensing an Entrepreneurial Opportunity?

The most important factors involved in the process are:

1. Ability to perceive and preserve basic ideas: Spotting of an idea often triggers the process of sensing an opportunity. The following are the various sources which lead to the emergence of basic ideas.
   • Problems: When a problem exists and an idea leads to a solution to resolve that problem, it emerges as a business opportunity.
   • Change: A change in social, legal, technological aspects etc. leads to new opportunities to start a business.
   • Inventions: Invention of new products or services leads to new business opportunities.
   • Competition: Competition often results in emergence of new and better ideas that result in new business opportunities.
   • Innovation: It includes creating new things of value as well as new and creative processes that add value to the existing products or services. For example, computers to tablets
2. Ability to harness different sources of information: Various sources like magazines, journals, books, seminars, trade shows, family  members, customers, friends etc. help in getting information that helps in evolution of basic ideas. Bring together various sources of information and knowledge, and analyze it to the best possible extent. The analysis helps in the identification of the right opportunity to start a new business.
3. Vision and creativity: Creativity in innovating a solution and vision. The entrepreneur should be able to creatively identify an idea to generate a valuable solution to a problem. Once the solution is identified their vision to convert the solution into business opportunity help them to move forward, overcoming all the obstacles. They constantly:
   • overcome the adversity;
   • are able to exercise control over the business;
   • are capable of making significant difference.

Question.13: State the two basic qualities of a successful entrepreneur.

1. Identification of business opportunity in the environment; 
2. Initiating steps to produce and sell goods and services to make the best use of that opportunity.

Question.14: Sensing entrepreneurial opportunities, converts an idea into an enterprise, what are the different types of opportunities an entrepreneur may find?

There are two types of opportunities:

1. Existing opportunity: These opportunities already exist in the environment.
2. Created opportunity: Such opportunities are created according to fashion, technological changes and taste of customers.

Scanning Environment

Question.1: Neetu on visiting her friend in Kashmir, found it be an ideal place to start a high school. She started scanning and screening the environment and collected the following information. Using PESTEL model, categorize the information.

1. Kashmir is rich in flora and fauna, free from air and land pollution.
2. Kashmiris do not prefer western dress. 
3. Because of persisting political unrest and terrorism, a number of residents are unemployed.
4. Local Kashmiris get subsidies to open school in backward areas of Kashmir.

1. Ecological factor
2. Social factor
3. Political factor
4. Economic factor

Question.2: An entrepreneur has decided to open a retail outlet to sell fast food items like pizza, noodles etc. in the  rural areas. Do you think his decision is correct?
Give any one reason identifying the environmental factor helpful in taking this decision.

No, his decision is not correct because in rural areas culture is not compatible with these types of food products. Social factor is helpful in taking this decision.

Question.3: ‘Safe Wheelers’ is an upcoming cab service. The promoters knew that they are entering a highly competitive market. They gathered information on existing cab services and changing customer preferences and incorporated those observations into their operations. In order to reach the customers promptly, they developed an ‘app’ to book, track and trace the cabs 24×7. To create an environment of trust all drivers were grouped into two shifts: 

6 a.m. – 6 p.m. for female drivers and 6 p.m. – 6 a.m. for male drivers. GPS systems were installed in all cabs to monitor their movements. The fare payment was either by an e-wallet or through the ‘Safe Wheelers’ Smart Card. As soon as the services were launched, they were a grand success.

Identify and explain the concept that helped the company to succeed.

Environment Scanning

Careful monitoring of an organization’s internal and external environment for detecting early signs of opportunities and threats that may influence its current and future plans.

Question.4: Why is environment an important factor for entrepreneurship? Explain in detail.

Environment is an important factor for entrepreneurship, as environment refers to the various facts within which enterprises whether big, medium or small have to operate business.
It is important because scanning of environment helps in a close examination of the environment to develop an understanding of the social, economic, political, legal, financial and developmental factors in order to ensure that the perceived entrepreneurial opportunity is compatible with them. It also helps in knowing trend issues and expectations from the environmental changes. If an enterprise is able to adapt to its environment, it can succeed in the long run. Thus, it is a fundamental need of enterprise.

Question.5: Apart from verbal information from the customers, wholesalers, retailers, distributors and consultants, state any other four sources of collecting information for scanning the environment.

1. Records of companies
2. Government publications
3. Publications by various financial institutions
4. Formal studies conducted by strategic planners

Question.6: What are the common factors which have influenced the Indian economic environment?

The common factors which have influenced the Indian economic environment are:

1. Banking sector reforms have led to many attractive schemes of deposits and lending money. The banks are offering loans at very nominal rate of interest and with minimum formalities.
2. Recent changes in economic and fiscal policy of country have encouraged NRIs and foreign investors to invest in Indian companies.
3. Lot of economic reforms are taking place in leasing and financing institutions. The private sector is allowed to enter in the financing institutions, as a result customer is gaining.

Question.7: Show the levels of business environment with the help of a diagram.

Business environment consists of two levels, i.e., micro environment and macro environment.

Question.8: List any four factors included in micro environment.

1. Suppliers 
2. Customers
3. Intermediaries 
4. Competitors
5. General public

Question.9: What is meant by ‘Analysis of Environment’? State any four sources of collection of information for environmental scanning.
or
“Information for environmental scanning can be collected from several sources”. State any four such sources.

Environment analysis is the process of monitoring the economic and noneconomic environment, to determine the opportunities and threats to an organisation.

Several sources of information include:

1. Verbal information from customers, wholesalers, retailers, distributors, consultants, etc.
2. Records of companies
3. Government publications
4. Publications by various financial institutions
5. Formal studies conducted by strategic planners.

Question.10: Why does an entrepreneur need to scan environment? Explain.
or
Why do we need to scan our environment?

The right information combined with the right adaptations can determine an organization’s future viability. If an entrepreneur is not aware of the environment surrounding his or her business, he/she will not succeed.

Question.11: What is the purpose of scanning the environment?

The purpose of scanning the environment is to adapt to the changing environment. It is necessary for an organization to combine the right information with the right adaptations. This can determine an organization’s future viability. If an entrepreneur is not aware of the environmental surroundings his business is sure to fail.

Question.12: List the environmental factors affecting external environment?

1. Political
2. Economic
3. Social
4. Technological
5. Ecological 
6. Legal

Question.13: Ecobrick is a company manufacturing bricks using recycled plastics. They have collection centres in various strategic locations all over the city and citizens are encouraged to sell their plastic products in these centres. This will save the environment in the long run. Also, it will promote ideology of ‘Swachh Bharat’. It will generate good revenue for the company as it sources its raw materials from the general public from whom the used plastic products are a scrap.

Identify and state any two macro environment factors affecting the environment in the above case. Identify and explain the concept discussed in the above situation.

Ecological: Concern over environmental factors.

Economic: It includes interest rates, inflation, business cycles, unemployment, disposable income, energy, availability and cost.

Question.14: What is PESTEL model? Explain it.

PESTEL model explains the macro factors affecting the environment.

These are as follows:

1. Political: The political environment includes taxation policy, government stability and foreign trade regulations.
2. Economic: The economic environment includes interest rates, inflation, business cycles, unemployment, disposable income, energy, availability and cost.
3. Social: The social/cultural environment includes population demographics, social mobility, income distribution, lifestyle changes, attitude towards work and leisure, levels of education and consumerism.
4. Technological: It is influenced by government spending on research, new discoveries and developments, government and industries focus on technological efforts speed of technological transfer and rate of obsolescence.
5. Ecological: It considers the ways in which the organization can produce its goods or services with minimum environmental damage.
6. Legal: It covers areas such as taxation, employment, law, monopoly, legislation and environmental protection laws.

Question.15: Categorize the following environment forces as Micro and Macro environmental forces.
Suppliers, Lifestyle, Laws and Legislations, General public, Competitors, Technology, Political parties, Foreign exchange rate.

Micro-Suppliers, general public, competitors.

Macro-Lifestyle (Social) law and legislations, technology, political parties (political) and foreign exchange rate (economic).

Question.16: Pragya Ltd. decided to sell air conditioners and refrigerators at a discount during winter season to clear the stock. Name and explain the environmental factor which helped them in taking this decision.

Economic environment helped them in taking this decision. It includes business cycles, disposable income, energy, availability, cost, etc.

Question.17: Explain ‘Care to Ecology and Environment’ as a social responsibility of an entrepreneur.

Ecology and Environment: Production process often cause some sort of pollution. It may be noise, smoke or effluents. Some enterprises are prone to ecological disturbances still others cause or encourage deforestation, soil erosion or even lead to human and animal health hazards. Entrepreneurs should take the responsibilities to keep pollution under control, to provide devices to prevent polluting material from affecting public health. They are required to discipline themselves not to indulge in any activity that vitiate or degrade the environment.

Product Identification and Selecting Right Opportunity

Question.1: Ragini, a career oriented mother, hardly got time to cook for the family. She decided to hire a cook but was not able to find one who could cook according to the taste of the family. Her sister Abha sensed that this problem is not only faced by her sister but also by many working women. She launched a website namely ‘Dial for food’ where housewives who had culinary ability and were interested to cook could drop in their contact details and households where specific cuisine was required could leave in their requirements so that through the website home cooked food could be delivered. The website mainly helped in identifying the requirement and fulfilled it through providing delivery service. Identify any two uses of problem identification to Abha.

1. Bring out new products in the market.
2. Increase employment generation.
3. Understand the problems and needs of the market.

Question.2: How does market supply influence a business idea? Explain with the help of a suitable example.

Supply position of the product refers to the complete picture of the quantity of the product or service made available in the market by all the producers. Market supply estimation helps in estimating the following:

1. The capacity to produce by a firm.
2. Present and future changes in supplies.
3. Evaluating the financial position of the firm, etc.

Question.3: A young man, Vipul, wants to start a business. He is not sure of the type of business he should start. His friends suggested him to seek the help of professionals. He contacted a professional who asked Vipul to pay a big amount for providing the reports and industry updates. Therefore, he decided to search for the reports and industry updates himself. He started looking for the required information and reports on different websites regularly. He also interacted with people for the type of products they would like to use in future. In addition to this he visited trade fairs, malls, exhibitions etc. to assess the on-going trends.
Identify and state the way that Vipul is using for spotting the trend. Also state one more way which will help Vipul in starting his business.

Vipul is using the following ways to spot the trends—
(i) Read trend,
(ii) Talk trend and;

(iii) Watch trend.
One more way is ‘Think trend’.
As an entrepreneur begins gathering all these information regularly, he will start to developing a “trend-spotter mind”. As entrepreneurs absorb and mull over what they have read, heard and observed, they will start making connections and observations that will lead to business - boosting insights.

Question.4: How are idea fields useful in generation of ideas?

The process of generation of ideas can be streamlined by developing an awareness for different ‘idea fields’. This will help and will be useful for an entrepreneur in enlarging the scope of thinking and structuring the ideas according to convenient frames of reference. Thus, idea fields can be useful as a reference for streamlining the process of generation of ideas.

Question.5: Rani finished her graduation from Bangalore university. Along with her friends she decided to travel the European countries for 20 days. She faced a lot of problems before and during her visit. while applying for visa, she found the process to be too tedious so she approached a travel agent who helped her but still it turned out to be expensive. After that she visited various websites to book hotels and transportation. It was a long process. After leaving India, she found that language in every European country was different even though English was spoken widely. She could not find a single app which would cover everything from obtaining a visa, places to stay, eat and visit in every city. This roadblock inspired her to come up with a solution.
when she came back to India, she developed an app that can be downloaded on any phone. The app acts as a virtual guide for every traveller who wants to visit European countries.
State the objectives of developing this app. 

Objectives of problem identification:

1. It should clearly state the problem
2. Identify target group facing the problem
3. Find the market acceptability of the solution to the problem

Question.6: Explain any three sources which lead to the emergence of basic ideas.

(i) Problems

(ii) Change

(iii) Inventions

(iv) Competition.

1. Problems: When an idea revolves around an existing problem the solution is most often a business opportunity. Business dealing in generators and inverters, grow due to the problem of electricity. A problem gives rise to a business opportunity.
2. Change: Any change, whether it is social, legal or technological, can be exploited as new business opportunities. The mushrooming of cyber cafes and computer institutions are very good examples of such opportunity.
3. Inventions: Invention means creation of new things of certain value. It as well includes creative process that adds value to an already existing product or service in the market. Introduction of gas geysers in place of electric geysers is an example of opportunities brought about due to new inventions.
4. Competition: Whenever someone tries to beat the competition, he resorts to new and improved ideas. This is the only way to survive in the market.

Question.7: Give any two points of distinction between ‘Basic Idea’ and ‘Post Scanning Idea’.

Basic idea vs. Post scanning idea:

Question.8: Can an entrepreneur sense opportunity without vision and creativity? Give reason.

No, an entrepreneur cannot sense opportunity without vision and creativity as it is one of the factors affecting ‘Perceiving and Sensing opportunities’.

Question.9: ‘I love New York’ printed T-shirts are commonly available in markets. Anantnag-based Samabeg wanted to see similar T-shirts that celebrate Kashmiri culture. For most of her life, 29-year-old Samabeg had lived outside Kashmir. Raised in the Middle East, she went to the US for her education. But she wanted to return to Kashmir to give back something to Kashmir society. For this she joined groups on the net working site ‘Kitter’ to see what people are buzzing about and also, about the latest trends. She also started talking to customers and propective customers on line. After doing on line surveys she launched ‘Koshur-wear’ an online brand that sells contemporary Kashmiri clothing and accessories.

1. Identify and explain the trend that helped Samabeg to set up ‘Koshur-wear’.
2. Also, explain any other way which may help Samabeg to spot the trend.

1. Talk Trends: They get involved in specific industry’s trade association and attending events both online and offline. They also take advantage of social networking tools like social network websites and forums. They even start or join groups on the networks and see what people are buzzing about and about the latest trends. It’s also important to talk to customers and prospective customers, both online and offline.
   They use social media or online surveys to get input on what customers are thinking, buying, craving and doing. They also use social network websites and forums to identify key influencers and trendsetters in their target markets.
2. (a) Watch Trends: The entrepreneur spends some time simply watching and observing. Trade shows are a great place to get trend ideas, too even if they are not looking to buy product, they attend many shows simply to see what’s hot.
   (b) Read Trends: They regularly read the leading publications and websites affecting their business. This could include industry publications, trade association sites, major newspapers, key business magazines, thought leaders and influential bloggers.
   (c) Think Trends: As an entrepreneur begins gathering all these information regularly, they will start to develop a “trend-spotter mind.” As they absorb and mull about what they’ve read, heard and observed, they’ll start to make connections and observations that will lead to business-boosting insights.

Question.10: Why is creativity considered as the key component needed for an entrepreneur?

Creativity is the key component in the qualities of an entrepreneur. With creativity, an entrepreneur can invent new ideas, new opportunities and bring changes and improvements in existing opportunities. Two businessmen can have the same qualifications or same products but creativity makes one better than the other.

Question.11: How are idea fields useful in generation of ideas?

Idea fields are useful in the generation of ideas in the following ways:

1. They increase the awareness of the entrepreneur about various fields.
2. They streamline the process of idea generation.
3. They broaden the scope of thinking.
4. They form convenient frames of reference to simplify the process of idea generation.

Question.12: yash was not too keen to take up his family run business of making bamboo baskets. But due to the bad condition of the family business he had no option except to take up this business. he started thinking about the new ways of using bamboo. One day while having lunch in a restaurant he overheard the owner talking about the difficulty in disposing the plastic and thermacol crockery that was being used in the restaurant. This provided him the stimulus for a new venture creation. yash started looking into various options of making bamboo plates which could be used in the restaurants. he discussed the idea with his father who advised yash that ideas should lead to commercially viable forms in order to survive and grow.
Identify and explain the concept discussed in the above situation.

Creativity

It is the first stage in the process of innovation, providing the stimulus for opportunity discovery and new venture creation.

Question.13: Gunjan has just passed her senior secondary examination from a CBSE affiliated school. She wanted to start her own business but was unable to decide about the nature of the business. One day during the morning walk her grandfather fell down in the park and was injured. She observed that her grandfather often forgets to take his medicines. She thought that the same problem may be faced by other old people. She thought to develop an instrument for old people that could be fitted with an electronic device connected to the mobile phones of the members of their family which could indicate the location of the old people when they go outside their homes. This device was to be kept in their pockets. She also thought to fit a timer in the instrument that could remind the old persons about the time of taking their medicines. Identify and state the meaning of the concept described in the above para that helped Gunjan in structuring her idea for solving the problem.

Product identification- an entrepreneurial idea leading to a definite product after opportunity spotting and scanning of the environment is called product identification.

Question.14: How can an entrepreneur use an existing product or service as an idea field? Explain with an example.

Change or improvement can come about in many ways.

(i) Change one’s own product or modify it to meet the current market requirements.

(ii) Bring about changes in the product which the competitor is selling and gain the market share with a better version of an already existing product.

It must be done skillfully, or else other problems can arise. Perhaps you sell a skincare line and would like to change the ingredients around a little. Or maybe you run a math tutoring business and would like to expand into other subjects, like science or commerce.

Example: (Any other suitable example to be considered)

Question.15: What is Idea Generation?

Generation of ideas is mainly a conscious endeavour to collect ideas from different sources for the purpose of finding a creative solution to a need or a problem. Here, different sources are like talking to others, visiting shops and exhibitions, looking through books, specialists, existing entrepreneurs, prospective customers, etc.

Question.16: State the steps in the creative process after ‘Idea Germination’.

• Preparation: On the basis of idea, interest and curiosity the entrepreneur starts looking for answers.
• Incubation: This is the subconscious assimilation of information.
• Illumination: The period where the idea resurfaces in a realistic manner.
• Verification: This is the testing stage

Question.17: Explain the process of transformation of an idea into a viable opportunity with the help of a diagram.

While the initial spotting of ideas (i.e., basic idea) is of a random nature, the development of ideas after scanning the environment (i.e., post scanning) idea is a more purposeful activity. All basic ideas have to undergo a vigorous process of examination, evaluation, analysis and synthesis to identify viable opportunities. This process of a basic idea becoming an opportunity is shown in the diagram below:

Question.18: How do changes in the market influence an entrepreneur’s business concept?

Market is dynamic in nature: Any changes in market always influence the entrepreneur’s business concept in the following ways:

1. Demand: With a favourable change in the market the demand for the product may increase. The demand assessment is thus affected.
2. Supply: The future supplies are to be adjusted according to the change. The supply may increase or decrease.
3. Manufacturing Capacity: There may be chances of increase or decrease in supplies, so the production capacity is to be altered accordingly.

Question.19: Why is market research conducted?

Research is conducted to gather information regarding products and services which are already present in the market. Research also helps the entrepreneurs to get new ideas regarding the size, shape, quality and other features to be included in products according to the preferences of customers so that one can produce the product with high demand and low supply.

Question.20: Explain how the following factors affect idea and opportunity assessment.

(i) Application and use

(ii) Level of operation

(iii) Competition

1. Application and use: Ideas should be examined for their real life use and application. If it already exists in the market, we will have to find out its present use, and then we may think of modifying it for better use for example, there are many companies manufacturing pen drives but the latest will be in consonance with the upcoming trends.
2. Level of operation: This is a crucial test for product/service identification. Depending on the use of the product/service the entrepreneur will produce it in a cottage industry or a small scale-industry or a large-scale industry.
3. Competition: Any product or service will face market competition at some stage. So market competition should be assessed through a study of the trends in demand and supply.

Question.21: State any three ways by which basic ideas can be perceived and preserved for commercial use.

1. Problems: When a problem exists, an idea leads to a solution to resolve that problem, it emerges as a business opportunity.
2. Change: A change in social, legal, technological aspects etc. leads to new opportunities to start a business.
3. Inventions: New products or services leads to new business opportunities.
4. Competition: Competition often results in emergence of new and better ideas that result in new business opportunities.
5. Innovation: Creating new things of value as well as new and creative processes that add value to the existing products or services. For example, computers to tablets.

Question.22: State the elements in innovation process.
or
Explain the first two elements in the innovation process?

1. Analytical Planning: Carefully identifying the product or service, features, design and resources.
2. Resource Organisation: obtaining the required resources, materials, technology, human or capital resources. 
3. Implementation: Applying the resources in order to accomplish and deliver the results. 
4. Commercial Application: Provision of value to customers, reward employees and satisfy the stakeholders.

Question.23: Varun decided to start his own venture and was looking into various ideas. Explain to him various sources from where he can get some good ideas.

Sources which Varun can refer to, for good ideas to start his own venture are as follows:

1. Examine his own skill set for business ideas.
2. Keep himself updated with current events and be ready to take advantage of business opportunities.
3. Invent a new product or service.
4. Add value to an existing product.
5. Investigate other markets.
6. Improve an existing product or service.
7. Get on the band wagon.

Question.24: Saurabh wants to start a new business. He is not sure of the type of business he should start. His friend suggested him to seek the help of professionals. He contacted a professional who asked Saurabh to pay a big amount for providing the reports and industry updates. Therefore, he decided to search for the reports and industry updates himself. He scanned the relevant information from various national and international websites.

Identify and state the way that Saurabh is using for spotting the trend. Also state one more way which will help Saurabh in starting his business.

Read Trend: Entrepreneurs scan information from a wide variety of sources. Eg. Newspapers, trade associations etc.,

1. Talk Trend: They get involved in specific industry’s trade association and attending both online and offline.
2. Watch Trend: making it regularly to go to places where the target customers generally hang out.
3. Think Trend: As they absorb and mull about what they have read, heard and observed, they’ll start to make connections and observations that will lead to business boosting insights.

Question.25: What is meant by problem identification? State it’s any four uses and also give an example.

1. A problem is a roadblock in a situation, something that sets up a conflict and forces you to find a solution.
2. It has the following uses: Bring out new products in the market, understand the problems and needs of the market, be creative, increase employment generation, increase national income of the country.
3. Example: Ready to eat foods for the younger, career-oriented generation. (or any other suitable example)

Question.26: Saransh’s father owned a small piece of agricultural land in Chaksu, around 60 kms, away from Jaipur. During one of his visit to Jaipur to sell ‘Wheat’ in Mandi, Saransh happened to visit a “flower show” and was surprised to see the response and interest of people for it. Back home he, decided to convert his agricultural land into a Botanical Garden, to be used, both for growing flowers for sale and organising flower shows :

1. Identify the frame of reference used by Saransh for this idea generation.
2. State the various sources of the identified concept.

1. Idea Fields
2. The various sources of idea fields are:
   

Question.27: Explain the first three steps in the process of Idea and Opportunity Assessment.

1. Product identification: See whether the product is already available in the market or not. If so, then identify the reason for introducing the same product or service in the market.
2. Application and use: Ideas should be examined for their real life use and application. If already existing in the market, find out its present use, and modify it for better use.
3. Level of operation: Depending on the use of the product/service the entrepreneur will produce it in a cottage industry or a small scale industry or a large-scale industry.

Question.28: “Creativity and innovation are not a single activity but is a complete process.” How?

Creativity and innovation are not a single activity but a complete process involving successive stages.

Creativity involves the following stages:

1. Idea generation.
2. Preparation
3. Incubation
4. Illumination
5. Verification
6. Innovation

Whereas innovation consists of:

(a) An analytical planning

(b) Organising resources

(c) Implementation of plan/idea

(d) Commercial application

Question.29: ‘Tata’ manufactured a motor car ‘Nano’ for common man which is very low in price. Name and explain the behavioural characteristic that develops the idea of ‘Tata’ into available and successful project.

Vision and Creativity: Creativity is the most striking behavioural characteristic for an entrepreneur. He should be able to develop an idea through a process of creativity and build something of value.