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

Q1. What is meant by Sensing Entrepreneurial Opportunities ? Explain the important factors involved with suitable examples. (TBQ) (6 marks)
Ans. “It is a process of converting an idea into an opportunity and then into an enterprise.” It can be represented as follows :

Entrepreneurs perceive opportunities, synthesize the available information and analyze emerging patterns that escape the attention of others, e.g., providing good quality food to people, who are ready to pay money for good quality, while travelling.
Factors affecting Sensing Opportunities :
1. Ability to Perceive and Preserve basic ideas : Basic ideas emerge from various sources. These sources are :
(a) Problems : When a problem exists, an idea leads to a solution to resolve that problem, it emerges as a business opportunity.
(b) Change : A change in social, legal, technological aspects etc., leads to new opportunities to start a business.
(c) Inventions : Inventions means a new idea, creating new things or new technology which add more value to the existing products or services. These inventions offer various business opportunities.
(d) Competition : Competition often results in emergence of new and better ideas that result in new business opportunities.
(e) 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.
2. Ability to Harness different sources of Knowledge and Information : The information gathered from different sources has to be analyzed and utilized for identification of the right opportunity. Example : Trever Baylis developed a clock work powered radio and displayed on BBC Channel Christopher Staines saw the opportunity and took the rights from Baylis. This product was a huge success in poor countries.
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 concert the solution into business opportunity helps them to move forward, overcoming all the obstacles.
They constantly :
(a) Overcome adversity.
(b) Exercise control over the business.
(c) Make a significant difference.

Q2. Why is entrepreneurship important for a country ? (6 marks)

Ans. Entrepreneurship helps the country by :
(i) Increasing national output.
(ii) Balanced regional development.
(iii) Increasing National Income and GDP by sweat equity.
(iv) Reducing concentration of income in few hands.
(v) Providing challenging career options.
(vi) Commercializing new inventions and products.
(vii) Making national and international market more competitive.
(viii) Optimum utilization of reasources.
(ix) Increasing economic diversification.
(x) Helps in raising profit level by reinvesting the profit in the area of profit generation.
(xi) Improves the standard of living of the society. All these factors greatly influence the pace of economic prosperity of the country.

Q3. “Problems pose a challenge to entrepreneurs and in solving them, they find opportunities.” Give one example. (6 marks)
Ans. Once a man from kerala went on a tour to Punjab with his family. He liked Punjabi Food, but the other members of his family liked only typical Kerala food. It was available hardly in one or two restaurants and was expensive too. Here was a problem. The man from Kerala decided to find a solution. The result was that he started an inexpensive eating place which offered typical South Indian food. Soon people started visiting his place. Now they can satisfy their need of South Indian food. The enterprise was a great success. Thus, a problem gave rise to an opportunity.

Q4. What are the steps by which creativity can be designed into an enterprise ? (5 marks)

Ans. Creativity can be designed into an enterprise by the following steps :
(i) Having open channels of communication and allowing contacts with outside world promotes creativity.
(ii) Using teams for solving the problems is more likely to yield creative solutions.
(iii) Decentralised organisational structure with loosely defined positions and loose controls are more creative.
(iv) Playful culture, freedom to discuss ideas and long term horizon of an enterprise promotes creativity.
(v) Enterprise are made creative when resources are allocated to creative personals without caring for pay off.