Source Based Questions - Entrepreneurial Opportunities | Entrepreneurship Class 12 - Commerce PDF Download

Question.1. “Sometimes an opportunity isn’t an idea that’s completely new to the world. 
Most often, it’s in making something that already exists better, more convenient or more efficient. Wiivv is a great example of a company that did that. Its founder saw the orthotics industry and realized that he could create better wearables for cheaper than they were already being made by existing players in the market. 
What’s their secret? 3D printing, which hadn’t yet impacted the wearable market. They were able to offer custom orthotics for people at a fraction of the cost of regular custom insoles. One of the best ways to build a strong business is by finding an idea that already exists, has proven demand and then make it meaningfully better. That’s the foundation for many successful businesses, from Uber to Facebook.”
(i) Identify and explain the ‘Idea fields’ discussed in the above article.

(ii) Explain any four idea fields other than the identified above in (i).

(i) The Idea field discussed in the above article is the existing products or services. Existing products or services: A business opportunity or idea often comes from everyday problems that someone solves. Successful businesses find a need and fill it by providing  a service or a product. Entrepreneurs who look at ways to make an existing product or service better can be as successful as those who create or invent products.
(ii) Other Idea Fields:

• Natural resources: Ideas can be generated based on natural resources. A product or service may be desired from forest resources, agriculture, horticulture, mineral, animal husbandry, wind, sun, and human resource.
• Market driven or demand driven market research: It is an organized effort to gather information about target markets or customers. Ideas can be generated based on existing demand in the market. It is a very important component of business strategy.
• Trading related: Trade is buying goods and services and selling them to consumers at a profit. One big advantage that trading has over other types of businesses is that it is easier to launch and it is also less risky. It is however, necessary for a prospective trader to be aware of the trends in an economy.
• Service sector: Service sector is the most growing fields these days due to emerging knowledge societies and advances in Information and Technology. So, new opportunities can be identified by understanding the linkages to different business activities.

Question.2. ‘Earlier this week, the World Bank released its Global Economic Prospects report. It expects India’s gross domestic product (GDP) to contract by 3.2% in 2020-21. There will be a moderate recovery to 3.1% growth in 2021-22. This means that 2021-22 GDP will be less than what it was in 2019-20. To be sure, India is not the only country which will face this predicament. The East Asian region seems to be the only exception.’

Identify and explain the environmental factor stated in the above article.

Economic Environment is the environmental factor stated in the above article. Economic Environment: The economic environment consists of all the external factors in the immediate market place and the broader economy. These factors can influence a business, i.e., how it operates and how successful it might become. It includes GDP growth potential, the unemployment rate, inflation, and fiscal and monetary policy orientations, etc.

Question.3. “The road to waste recycling company Let’s Recycle’s plant on the outskirts of Ahmedabad, is lined with opportunity. You could be forgiven for failing to recognise it, however.
On this journey through Pirana, far from the city’s urban sprawl, mounds of refuse dot the fields beyond the kerb on both sides. This is where most of the solid waste ends up, in this city of 5.6 million. The giant landfills further ahead look the same as in other Indian cities—open and overflowing hillocks of garbage, turning the air all around acrid.
A small part of this waste is now making its way to Let’s Recycle’s four-storied, dry-waste processing unit, spread over 1.2 acre. Here, half-adozen workers do a cursory sorting of the waste to remove glass and metal pieces. A conveyor belt then carries the waste into a whirring machine. Inside, an optical sensor scans through the rubbish to sift plastic and paper, based on how light reflects off these. The various kinds of plastic are then manually separated and sent to recyclers or turned in into granules or lumps and sold to plastic makers. The recycled output becomes raw material for units making plastic containers and PVC pipes, among others. They might have set out to turn garbage into gold, but Sandeep Patel and Dhrumin Patel (not related), two of the founders of Let’s Recycle, are allies in India’s efforts to fight climate change. There is among a string of ventures, big and 

small, in sectors such as renewable energy, electric vehicles, climate resilient agriculture and waste management, that are at a happy confluence where business success also means a better environment. The collective opportunity in these sectors in the next decade is in the billions of dollars, as India and other large economies race against time to clamp down on emissions and meet obligations under the Paris Agreement of 2015.”

1. Identify and explain the macro environment factors affecting the environment being stated in the above case.
2. Explain any three reasons for the importance of environment scanning.

1. The macro environment factors affecting the environment being stated are:
   • Ecological: It considers the ways in which the organisation can produce its goods or services with minimum environmental damage.
     Line: “This is where most of the solid waste ends up, in this city of 5.6 million. The giant landfills further ahead look the same as in other Indian cities — open and overflowing hillocks of garbage, turning the air all around acrid.”
   • Legal: It covers areas such as taxation, employment, law, monopoly, legislation and environmental protection laws.
     Line: “as India and other large economies race against time to clamp down on emissions and meet obligations under the Paris Agreement of 2015.”
2. Importance of Environment Scanning:
   • Identification of opportunities to get first mover advantage: By keeping in touch with the changes in the external environment, an enterprise can identify opportunities and find strategies to capitalise on the opportunities at the earliest.
   • Tapping useful resources: If the company has a thorough knowledge of the external environment, it can tap raw materials, technology and even financial resources from the market at economical prices, at the right time.
   • Better performance: Proper understanding of the various elements of the external environment is necessary to take timely action to deal with threats and avail opportunities for the purpose of improvement in the performance of the firm.
   • Image building: If a company is sensitive to the external environment, it will come out  with new products and services to meet the requirements of the customers. This would build the image or reputation of the firm in the eyes of the general public. For example, call–radio taxis with additional features like GPS systems, online booking etc.

Question.4. “For any start-up, it is important to identify how the business environment is changing. Simply, recognize why businesses are shutting down or halting their operations temporarily. In such a scenario, to address all these concerns, as a business leader, you need to make a business operating plan which is more conservative than you think is necessary. In other words, plan for the worst and hope for the best. For example, tech driven start-ups must embrace the current climate of digitalization. Those businesses focusing on technologies such as big data, cloud computing, and IoT will be positioned in a better spot to lead much-needed global, economic, and societal change.”
Identify and explain the process stated in above article related to identifying and analysing the changes in business environment.

Environment Scanning is the process stated in the article related to identifying and analysing the changes in business environment.

Environment Scanning: Environmental Scanning/ Analysis is conducted to find out the influence of different factors and persons on the business transactions. Through environment scanning/ analysis, organisations monitor various factors in environment to identify opportunities and threats of environment.