Short and Long Question Answers: An Entrepreneur - 1 | Entrepreneurship Class 11 - Commerce PDF Download

Q.1. Answer the following in about 15 words:

(i) Who is an Intrapreneur?

An Intrapreneur or a corporate entrepreneur is a person, who has entrepreneurial competencies and who innovate the products or services for the organization he/she is working for. The intrapreneur or corporate entrepreneur is usually an employee of a large organization who uses the resources and capabilities of the organization, rather than their own, to put their innovative ideas to practice and align their goals to the organizational goals.

(ii) Define Entrepreneurial Motivation.

Entrepreneurial motivation is the process that motivates an entrepreneur to

• always stay in the direction of their goal
• bring about the best of their efforts
• consistently hanging around their goal 

to achieve their entrepreneurial goal.

(iii) What do you mean by competency?

Competency: Competency refers to a set of well defined behaviours that act as a road-map to

• recognize
• measure
• and develop 

all the necessary behaviours required by a person to perform a job or achieve a goal.

(iv) Which value provides goal direction to entrepreneurs?

The value ‘Respect for work’ provides the goal direction for an entrepreneur and guides and direct them to pursue a career or path where in the growth and development is highly in proportion to the level of efforts they put in.

(v) State one crucial feature of Fabian Entrepreneurs?

Fabian entrepreneurs are the entrepreneurs with the following features:

• Adopt and follow conventional approaches 
• Belong to family business 
• Cautious 
• Display lazy and shy behaviour
• Exhibit resistance to venture or risk(This can be considered as their crucial behaviour)
• Firm in their rigid and fundamental approach.
• Go for a change only for the fear of failure and loss. (This can also be considered as their crucial behaviour)

(vi) ‘Hero Motocorp manufactures two wheelers and provide services.’ This is an example of which type of entrepreneur?

An industrial entrepreneur is one who establishes an enterprise that manufacture products or provide services which are highly in demand. They exploit the economic resources to economically viable ventures. The enterprise, Hero Motocorp manufactures which manufactures two wheelers and provide services is an example of Industrial entrepreneur.

(vii) “They are highly ambitious are normally not satisfied by slow progress in their jobs.” This applies for which entrepreneurs?

Motivated entrepreneurs are the ones who are

• Ambitious to a high degree and are not satisfied by their job
• Believe in their abilities
• Highly Motivated start an enterprise to economically exploit their technical or professional skills and expertise
• They’re further motivated by the success of the venture

(viii) “When it wanes, as it surely will in difficult times, take some guilt time.” This statement shows which attitude of an entrepreneur.

Entrepreneurs should have passion in their work and love what they’re working upon. This will help them to stay unaffected during tough times. This will also help them to become role model for their employees. It is likely that the passion will decrease during tough times. They should take some time off during these times. During this time they can re-kindle the passion by reminding themselves of all the valid reasons about the motive behind starting the enterprise and the advantage of being their own boss.

Q.2. Answer the following in about 50 words:

(i) Why attitude is called pervasive?

An individual acquires an attitude through the social interaction with different individuals in the society. Different incidents and interactions with others form different attitudes in a person. Thus the attitude is not just developed by a person and many external factors are involved in forming an attitude in a person.
For instance the experience a person had after using a cell phone might form a positive or negative attitude towards the manufacturing company of that phone.
Another example is the experience a person had with the waiter in a restaurant might form a positive or negative attitude about the restaurant itself.
Thus it is clear that the attitude is pervasive by nature.

(ii) Explain any two features of attitude.

The following are the features of the attitude:

• Acquired: The attitude is not acquired by birth. During childhood we acquire the attitude mostly from the family members. As we grow, we start acquiring the attitude from the society. We acquire the attitude gradually (not instantaneously). The process of acquiring the attitude remains throughout the life span.
• Behaviour: People behave in accordance to their attitude. In the absence of an influence, people with certain attitude behave in an intended way. For instance, when you enter a mobile store, you want to purchase a specific model of a certain company in the absence of any external influence. Attractive ads displayed in the store can influence you and change your behaviour(to purchase a different model or a phone of a different company). Even the sales man/girl might influence you to purchase a different model or brand. But in the absence of these external intervention to change your behaviour, you behave as per your attitude.
• Concealed or Invisible: Attitude is purely psychological and is not externally visible. However, depending on the behaviour a person exhibits towards a commodity or person or country, we can guess the attitude of a person. For instance, depending upon the interest shown by a student on a specific subject, we can infer that the student has a positive attitude towards that subject or faculty.
• Pervasive: An individual acquires an attitude through the social interaction with different individuals in the society. Different incidents and interactions with others form different attitudes in a person. Thus the attitude is not just developed by a person and many external factors are involved in forming an attitude in a person.
  For instance the experience a person had after using a cell phone might form a positive or negative attitude towards the manufacturing company of that phone. Another example is the experience a person had with the water in a restaurant a restaurant might form a positive or negative attitude about the restaurant itself. Thus it is clear that the attitude is pervasive by nature.

(iii) Explain these core values:
(a) Respect for work
(b) Innovation and creativity

(a) The core value ‘Respect for work’ provides the goal direction for an entrepreneur and guides and directs them to pursue a career or path where in the growth and development is highly in proportion to the level of efforts they put in.
All the successful entrepreneurs are the ones who has high respect for work and believe in hard work.
(b) Innovation and creativity are the the most important core values of entrepreneurs. While creativity guide an entrepreneur to dream about creative ideas to improve an existing product or service or solve a problem, innovation guides them to put their ideas into practical use. An entrepreneur exhibits innovation by

• Being unique and original in their solution.
• Contributing critical inputs for a new idea
• Develop or Improve the existing products or services
• Evaluating the new ideas
• Focusing on the solution even when failure occurs
• Go for a continuous search for problems in the society (so that they can resolve them)

(iv) Name the types of entrepreneurs according to Danhof.

Entrepreneurs are broadly categorized into four different types according to C.Danhof (Clarence Danhof): 

• Innovative: These entrepreneurs innovate new products or services or improve upon them. They are very aggressive and intelligent to put their ideas into practice. These are common among the developed countries.
• Imitative: They follow the innovative entrepreneurs and are flexible to adopt their ideas. They start the enterprise by imitating other people’s ideas. They bring about the change and are very crucial for the underdeveloped economic societies 
• Fabian: Fabian entrepreneurs are the entrepreneurs with the following features.
  (a) Adopt and follow conventional approaches
  (b) Belong to family business
  (c) Cautious
  (d) Display lazy and shy behaviour
  (e) Exhibit resistance to venture or risk(This can be considered as their crucial behaviour)
  (f) Firm in their rigid and fundamental approach.
  (g) Go for a change only for the fear of failure and loss. (This can also be considered as their crucial behaviour)
• Drone: These are laggards who follow the traditional way of doing business and are reluctant to any change, even if they face losses. They do not utilize the opportunities they come across.

(v) What is the importance of an Intrapreneur in an organization?

An Intrapreneur crucial for an organization because of the following reasons:

• They help the organization to innovate a new product or service.
• They work in accordance the organization’s culture.
• They work independently while being an integral part of the team structure.
• They align their thought process with the best interests of the enterprise they are working for.
• They have great influence on their colleagues.
• They put their entrepreneurial spirit to the best of the interests of the enterprise they are working for.
• They work on a win-win situation.

(vi) What is “Innovation time off” in an Intrapreneurship program?

“Innovation time off” is a motivation process, used by Google, to encourage the employees. In this program every employee spends 20% of their time to work on projects that interest them.
This intrapreneurship program involves:

• Select a project and submit the proposal
• Evaluate the project
• Approval of the project
• Monitor the progress of the project. 

Several of Google’s products and services like Gmail, Google news, Orkut and adsense are products of this “Innovation time off” Intrapreneurship program. According to an announcement, half of the new products or services from Google were from this program.  
In India, the enterprises like Marico and Kinetic Engineering Limited has introduced similar programs.

Q.3. Answer the following in about 150 words:

(i) What do you mean by entrepreneurs? Mention the types of entrepreneurs.

Entrepreneur: An entrepreneur is

• an innovator of new ideas
  (a) to creates new products or services
  (b) or improve the existing products or services
• exploits an opportunity
• commercializes his innovation 

Entrepreneurs are broadly categorized into four different types according to C.Danhof (Clarence Danhof):

• Innovative: These entrepreneurs innovate new products or services or improve upon them. They are very aggressive and intelligent to put their ideas into practice. These are common among the developed countries.
• Imitative: They follow the innovative entrepreneurs and are flexible to adopt their ideas. They start the enterprise by imitating other people’s ideas. They bring about the change and are very crucial for the underdeveloped economic societies.
• Fabian: Fabian entrepreneurs are the entrepreneurs with the following features.
  (a) Adopt and follow conventional approaches
  (b) Belong to family business
  (c) Cautious
  (d) Display lazy and shy behaviour
  (e) Exhibit resistance to venture or risk (This can be considered as their crucial behaviour)
  (f) Firm in their rigid and fundamental approach.
  (g) Go for a change only for the fear of failure and loss. (This can also be considered as their crucial behaviour)
• Drone: These are laggards who follow the traditional way of doing business and are reluctant to any change, even if they face losses. They do not utilize the opportunities they come across.

(ii) Motivation is a process, explain by a model.

Motivation is an essential process. The following model explains the motivation process.
Its various components can be summarised as follows:

• Unsatisfied Need: Every human being has an instinct to satisfy their needs or desires or expectations. Sometimes the needs are satisfied and sometimes they are unfulfilled. This leads to tention. 
• Tention: Unsatisfied needs cause tension in a person. To get rid of tension they will start searching for ways.
• Drives: Searching for relief from tension leads them to the drives that relieve the tension.
• Search behaviour: These drives lead to certain search behaviour to find means to satisfy their needs.
• Need fulfilled: The need is fulfilled once the means to satisfy their need is found.
• Reduced tension: Once the need is satisfied, the tension is reduced. 

Once the satisfactions is completed, new unsatisfied needs will arise. This process continues.

(iii) “Entrepreneurs cannot survive and grow without fulfilling the ethical responsibilities of the society.” Explain.

While conducting business, the enterprise should guard itself from potentially controversial issues such as

• Aversion from corporate social responsibility
• Bribery
• Corporate Governance
• Discrimination
• Exploitation by insider trading
• Fiduciary responsibilities 

The study of proper business policies and practices related to the above controversial issues is known as ‘Business ethics’.
Business ethics are often guided by law. Sometimes they provide the basic framework that business choose in order to gain public acceptance.
The entrepreneur, while doing the business, interact with the social environment. The entrepreneur’s success purely depends on how the external environment perceives his idea. Any sort of non-adherence to business ethics is likely to put them on the verge of fatality. The should adopt what is termed as ‘Social Entrepreneurship’, ‘Corporate social responsibility’, ‘Social corporate entrepreneurship’.
Focusing completely on the business problems is likely to overlook ethical problems. So, they should be cautious. Non-adherence to business ethics has crashed the business giants like Enron, WorldCom, Anderson etc. So, it is essential for the entrepreneur to adhere to ‘Business ethics’ for the success of the enterprise.
Once the business is successful, few of the ethical standards that help the entrepreneur to retain their success are

• Appropriate measures to maintain quality and quantity standards
• Bearing the environmental responsibilities
• Conforming to the labour laws.
• Discouraging the child labour
• Efficacious usage of the natural resources

(iv) Explain in detail the McClelland Theory of Motivation.

McClelland stated his “Theory of Motivation” after conducting his experiments on more than thousand people, based on the achievement. These needs determine the way in which a person is motivated. Recognizing the dominant need in any person help us to understand how that person is motivated. His theory states that every human being is motivated by the following three factors, depicted in the diagram.

• Achievement: People have an urge for achievement. This need is characterized by
  (a) finding solutions to complex problems.
  (b) acquiring specialized or complex skills
  (c) setting challenging goals and achieving them.
  (d) like to receive regular feedback on their progress and achievement.
  (e) setting a goal for themselves and get recognition when they succeed.
• Affiliation: This need is characterized by
  (a) favour for the teamwork
  (b) maintain interpersonal relations
  (c) tend to reduce high risk and uncertainty
• Power: This need is characterized by
  (a) desire to control and influence others
  (b) likes to win arguments
  (c) desire to beat their competitors
  (d) desire to persuade others and prevail.

(v) Explain the types of business entrepreneurs.

According to the type, nature and size the business, entrepreneurs can be categorized into five types as follows:

• Business Entrepreneur: The business entrepreneur are the most common types of entrepreneurs. They innovate a new product or service. They start the enterprise to exploit their idea economically. Mostly found in the small trading and manufacturing enterprises.
• Trading entrepreneurs: They perform the trade either in-house or overseas or both. They closely watch the market for the demand for any product or service and exploit it economically. They’re the fore-runners to implement the ideas and stand ahead of others.
• Industrial Entrepreneurs: An industrial entrepreneur is one who establishes an enterprise that manufacture products or provide services which are highly in demand. They exploit the economic resources into economically viable ventures. The enterprise, Maruti Suzuki India Ltd, which is in the business of car manufacturing and offering car related services is an example of such enterprises.
• Corporate entrepreneurs: These are the entrepreneurs who control or manage or organize an enterprise in the most productive and economic way through their innovative ideas. The promoters of the corporations, those performing the business or trade or established an industry fall into this category.
• Agricultural entrepreneurs: They are in the business of agriculture and related products or services. They use innovative techniques, machinery, equipment, irrigation methods to grow and market the crops. 

In addition to this, depending on their orientation towards the technology, entrepreneurs are further classified as:

• Technical entrepreneurs: These entrepreneurs use their a. Knowledge b. Specialization c. Skill to develop new or improved products or services. They are technology oriented. Usually they pay more attention production rather than marketing.
• Non-Technical entrepreneurs: They focus on innovative marketing and distribution strategies to expand their business. They usually do not pay much attention to the technical details of the product or service.

(vi) Explain any four entrepreneurial competencies.

• Creativity and Innovation: Innovation and creativity are the the most important core values of entrepreneurs. While creativity guide an entrepreneur to dream about creative ideas to improve an existing product or service or solve a problem, innovation guides them to put their ideas into practical use.
  An entrepreneur exhibits innovation by:
  (a) Being unique and original in their solution.
  (b) Contributing critical inputs for a new idea
  (c) Develop or Improve the existing products or services
  (d) Evaluating the new ideas
  (e) Focusing on the solution even when failure occurs
  (f) Go for a continuous search for problems in the society (so that they can resolve them)
• Enterprise Launching: Entrepreneurs should possess the competency to identify the opportunities and make best use of the resources at their disposal, by launching an enterprise. This trait is what stands them apart from the crowd.
• Enterprise Management: Managing an enterprise is a crucial competency that an entrepreneur should possess. The success of the enterprise depends on the level of an entrepreneur’s expertise in enterprise management. They should be well acquainted with various functions in the management like
  (a) Planning
  (b) Organizing
  (c) Staffing
  (d) Directing
  (e) Leadership
  (f) Communication
  (g) Motivation
• Information seeking: The amount of information an organization has at its disposal plays a crucial role in the success of the organization. The entrepreneur should gather the information about changing trends in consumer behaviour, market demand, new technology being introduced, competitor analysis etc. This helps them in decision making process, thus driving the organization towards its goal.
• Initiative: This is one of the basic competency that every entrepreneur should possess. Taking initiative in the starting point in an entrepreneurial process. The entrepreneur should be vigilant of the consumer behaviour, market dynamics, launch of new products to spot an opportunity. Once the opportunity or idea is spotted they should take the initiative to start the entrepreneurial process. Once the entrepreneurial process is started they should increase the pace to establish an enterprise. 
• Leadership: Many of the entrepreneurial ventures are unique and new. From the start of the enterprise to the stage where the product or service is introduced into the market, there is lot of uncertainty associated and the entire enterprise has to go through many hurdles and roadblocks. During this, it is essential to guide and motivate the team towards the goal. To achieve this the entrepreneur should possess effective leadership qualities to keep the team focused on the goal of the enterprise. As a leader, the entrepreneur should exhibit
  (a) strong will power
  (b) effective business acumen
  (c) and communication skills
  to drive the enterprise towards the goal, during difficult times.
• Persistence: Many of the entrepreneurial ventures are unique and new. So, they need a very close watch. Once the product or service is in place, it should be marketed. If the market for the new product does not exist, the entrepreneur should find new ways to create the market, for selling their product or service. During this process, they encounter many hurdles. The entrepreneur should be highly persistent in their efforts and should not give up. Thus persistence is a vital entrepreneurial competency that the entrepreneur should possess.
• Persuasion and Influencing Others: While performing various entrepreneurial functions, the entrepreneur has to deal with various individuals and institutions. They should be able persuade their ideas and influence others so that other people are ready to accept their products are services. To do so they’ve to be well acquainted with the innovative features of their products or services and how their products much better than those prevailing in the market.
• Problem solving: The entrepreneurs start their enterprise to commercialize a new product or service. As the product or service is new and the enterprise is just started, there will be lot of obstacles they would come across in the path of their goal. They should be capable of coming up with a number of different solutions to the problem at hand. They should seek alternate strategies and solutions. They should possess strong problem solving skills to achieve this.
• Quality Performance: They should have a tendency to maintain quality standards in their products or services. They can achieve this by establishing their own standards or adopt the standards set by others. Maintaining high quality standards will help them to win the consumer loyalty.
• Risk taking and risk management: As the area into which the entrepreneur is venturing is new, their lot of uncertainty associated at various levels. This poses risk at various stages of entrepreneurial process. The entrepreneur should be risk taking to move ahead. At the same time, after they’ve started the enterprise and the risk surfaces, they should be capable of managing the risk. 
• Systematic Planning: Every enterprise requires the availability of resources like
  (a) Time
  (b) Funds
  (c) Labour
  The entrepreneurs gather funds majorly from their personal savings. They put all their efforts and time to establish their enterprise. Any deviation in the planning of the enterprise’s activities will be disastrous and result in the collapse of their dream. In order to put all of these resources to the optimum use, and to spend them in the right direction, they should prepare a detailed systematic planning. They should strictly implement this systematic planning to drive all of their resources towards the goal.

(vii) Explain features of attitudes.

The following are the features of the attitude:

• Acquired: The attitude is not acquired by birth. During childhood we acquire the attitude mostly from the family members. As we grow, we start acquiring the attitude from the society. We acquire the attitude gradually (not instantaneously). The process of acquiring the attitude remains throughout the life span.
• Behaviour: People behave in accordance to their attitude. In the absence of an influence, people with certain attitude behave in an intended way. For instance, when you enter a mobile store, you want to purchase a specific model of a certain company in the absence of any external influence. Attractive ads displayed in the store can influence you and change your behaviour(to purchase a different model or a phone of a different company). Even the sales man/girl might influence you to purchase a different model or brand. But in the absence of these external intervention to change your behaviour, you behave as per your attitude.
• Concealed or Invisible: Attitude is purely psychological and is not externally visible. However, depending on the behaviour a person exhibits towards a commodity or person or country, we can guess the attitude of a person. For instance, depending upon the interest shown by a student on a specific subject, we can infer that the student has a positive attitude towards that subject or faculty.
• Pervasive: An individual acquires an attitude through the social interaction with different individuals in the society. Different incidents and interactions with others form different attitudes in a person. Thus the attitude is not just developed by a person and many external factors are involved in forming an attitude in a person.
  For instance the experience a person had after using a cell phone might form a positive or negative attitude towards the manufacturing company of that phone.
  Another example is the experience a person had with the water in a restaurant a restaurant might form a positive or negative attitude about the restaurant itself.
  Thus it is clear that the attitude is pervasive by nature.

(viii) How do systematic planning and persistence help entrepreneurs become effective leaders?

Many of the entrepreneurial ventures are unique and new. So, they need a very close watch. Once the product or service is in place, it should be marketed. If the market for the new product does not exist, the entrepreneur should find new ways to create the market, for selling their product or service. During this process, they encounter many hurdles. The entrepreneur should be highly persistent in their efforts and should not give up. Thus persistence is a vital entrepreneurial competency that the entrepreneur should possess.
Every enterprise requires the availability of resources like: 
(a) Time
(b) Funds
(c) Labour
The entrepreneurs gather funds majorly from their personal savings. They put all their efforts and time to establish their enterprise. Any deviation in the planning of the enterprise’s activities will be disastrous and result in the collapse of their dream. In order to put all of these resources to the optimum use, and to spend them in the right direction, they should prepare a detailed systematic planning. They should strictly implement this systematic planning to drive all of their resources towards the goal.
Thus these two competencies help the entrepreneur to become an effective leader.