Entrepreneurial Ship Skills Notes - X

Topics to Study

● Entrepreneurship and society.

● Qualities and functions of an entrepreneur.
● Role and importance of an entrepreneur.
● The myth about entrepreneurship.
● Entrepreneurship as a career option.
In this chapter, you are going to read about Entrepreneurial Skills. This will help you to
become an entrepreneur. Entrepreneur means the person who provides a service to
society. In easy words, you can say that entrepreneurs are businessmen. This does not
mean only big businessmen, an entrepreneur can be a small businessman too. Their new
idea of a product makes them different from the rest of the people. Here you will learn
the qualities of an entrepreneur, his importance and role. Entrepreneur can be a career
option for you. Unit 4: Entrepreneurial Skills of employability Skills class 10 provides you
the complete knowledge to become an entrepreneur.

Session 1: Entrepreneurship and Society

Entrepreneurs run their businesses in a market. The market has people who buy products
and services and people who sell them also. When people are buying and selling from
each other, it is helpful for everyone because everyone involved makes money. This is
how entrepreneurs help in growing the area and society they live in.

What do entrepreneurs do when they run their business?

Fulfill Customer Needs

Demand means a product or service that people want. Entrepreneurs find out what people
want. Then, they use their creativity to come up with a business idea that will meet that
demand.

Use Local Materials

Entrepreneurs use the material and people available around them, to make products at
low cost.

Help Society

Entrepreneurs have a positive relationship with society. They make profits through
activities that benefit society. Some entrepreneurs work towards saving the environment,
some give money to build schools and hospitals. This way, the people and area around
them becomes better.

Create Jobs

With the growth of a business, entrepreneurs look for more people to help them. They
buy more material, and from more people. They also hire more people to work for them.
In this way, more people have jobs. Sharing of Wealth Wealth means having enough
money to live a comfortable life. As entrepreneurs grow their business, the people
Lower Price of Products

As more entrepreneurs sell the same product, the price of the product goes down. For
example, when more mobile phones were getting sold in India, the cost of the phone
became lesser.

Bharti, the Jewelry Queen ( A Story)

Bharti is a young woman from Bihar. Many girls in her area like to wear earrings. She
buys jute from a farmer and makes earrings from that. Her business is called Manavi
Natural Handicrafts. She sees that most women in her village do not work. So, she hires
two women to help her. As her orders increase, she buys more jute. She hires three more
women to work for her. The farmer, and the women working for her now earn more
money.

Session 2: Qualities and Functions of an Entrepreneur

Qualities of an Entrepreneur
Functions of an Entrepreneur

Session 3: Myths about Entrepreneurship

Misconceptions
1. The misconception is that every business idea needs to be unique or special.

2. The misconception we have is that a person needs a lot of money to start a business.

3. A misconception we have is that only a person having a big business is an

entrepreneur.

4. A misconception we have is that entrepreneurs are born, not made.

Session 4: Entrepreneurship as a Career Option

A career is a line of work that a person takes for life. There are two ways a person can
earn a living.
1. Self-employment
2. Wage employment
A person who becomes an entrepreneur goes through a career process. This
process is as follows:
ENTER
When an entrepreneur is starting, they are just entering the market to do business.
For example, Sanjana is starting a small grocery store in a locality.
SURVIVE
There are many entrepreneurs in the market. The entrepreneur has to remain in a
competitive market.
For example, there are many other grocery stores in the area. Yet, Sanjana’s store
survives the competition and does well. She also expanded the store to two more floors.
GROW
Once the business is stable, an entrepreneur thinks about expanding his or her business.

For example, after five years, Sanjana has opened a chain of four more grocery stores
in the same city. In the next two years, she plans to expand to two other cities.

Meaning of Entrepreneurship Development:

The word entrepreneur originates from the French word, entrepreneur, which means “to
undertake”. In a business context, it means to start a business. Entrepreneurship is the
ability to start a new business to earn profits by producing or marketing goods and
services to meet the requirements of customers.
Entrepreneurship can be viewed as a function of:
a) Identifying and using the opportunities exists in the market.

b) Converting the ideas into action.

c) Undertaking promotional activities to launch an enterprise.
d) Determined for excellence in his/her field of work.
e) Bearing the risk and uncertainties involved.
f) Coordinating.
Steps in starting a new business venture are as follows:
a) Idea: The first step is to come up with a business idea. It could be based on your
interest and present market conditions.
b) Getting money and material: Once you have the idea, you can start on a small scale
with some money which will help you in buying basic material.
c) Understanding customers need: Once you start selling, you will find out what your

customer likes and wants. You will also find out what your customer does not like during
this stage.
d) Improving Product/Service: You can use this knowledge of what your customer likes
and does not like to improve your product.

Entrepreneurship and Society:

Entrepreneurship plays an influential role in the economic growth and standard of living
of a society. The role of Entrepreneur in economic development of a society is as follows:

a) Helps in Wealth creation and sharing:

b) Creating Employment Opportunities jobs:

c) Innovation:

d) Balanced Regional Development:

e) Improves Standards of Living of People

Entrepreneurship: Is an individual who creates a new business, bearing most of the risks
and enjoying most of the rewards.

Qualities and Functions of an Entrepreneur:

a) Planning:

b) Self-Discipline:

c) Integrity:

d) Confidence:

e) Self-Starter:

f) Risk Taking:

g) Decision making:

h) Communication ability:

i) Business secrecy:

j) Human relation ability:

Role and Importance of Entrepreneur:

a) Initiative:

b) Vision:

c) Motivation:

d) Wide knowledge:

e) Independent Thinking:

f) Willingness to assume risk:

g) Self-confidence:

h) Mental ability:
i) Good organizer:

j) Highly Optimistic:

k) Communication Ability:

l) Team Player:

m) Technical knowledge:

n) Desire for High Achievement:

Myth about Entrepreneurship:

Entrepreneurship is a dream for millions of people around the world. Every Entrepreneur
tries

his best to exploit an opportunity. Everyone wants to be an Entrepreneur these days. We

all love

the idea of being your own boss and working when and where you like. The various myths
about Entrepreneurship are as follows:

a) Entrepreneurs are born, not made.

b) Entrepreneurs are Rich.

c) It takes a lot of money to start a business.

d) Entrepreneurs take risk.

e) Entrepreneurs are money driven.

f) You will have your freedom.

g) All you need is an idea.

h) You should be hardworking.

Entrepreneurship as Career option:

Entrepreneurs are independent-minded, innovative business people who have skill sets,
which make them self-starters. An Entrepreneur can be an artist, educator, professional,
homemaker,restaurateur, businessman, service sector worker or an inventor. The
Entrepreneurship are career option is as follows:

a) Entrepreneurs create products, services, companies and even industries.

b) New Entrepreneurial venture creation includes launching a company, buying a

business,taking a franchise, starting a new venture in a family business.

c) Join existing Entrepreneurial ventures as a working/investing partner.

d) Enter-partnership with startups, small business, educational ventures, research,

development sector, corporate Entrepreneur or strategic Entrepreneurial unit etc.

e) Work with traditional companies as support/service providers.

f) In new start-ups they draw up a business plan and decide a career path, source funds
for the project from both private and government lenders, decide location suitable for the
business and lease space, form a team of workers/partners and formally launch a
Company.

Question and Answer:

Q1. What do you mean by Entrepreneur?

Ans: Entrepreneurs are people with vision who recognize and pursue opportunity, create
and establish business or new ventures, take into account the risk involved.

Q2. What do you mean by Entrepreneurship?

Ans: Entrepreneurship is the organizing an enterprise to undertake a new production

process,raising capital, arranging labor and raw materials, etc.

Q3. What are the characteristics of an Entrepreneur?

Ans: a) Economic: Entrepreneurship is an economic activity because it involves the

creation and operation of an enterprise with a view to creating value or wealth by ensuring
optimum utilization of resources.

b) Innovation: Entrepreneurship involves a continuous search for new ideas and

innovation. Innovation occurs through the introduction of a new quality in a product, a new
product.

c) Profit potential: Before starting a new business, evaluate the expected returns from the
business.

d) Risk bearing: The essence of Entrepreneurship is the willingness to take risk arises out
of the creation and implementation of new ideas.

e) Decision making: Entrepreneurship is making right and correct decisions at an

appropriate time by an entrepreneur. A correct decision results in success in a business
venture.

f) Managerial skills: The Entrepreneur must have the right managerial skills so as to
handle the group of people efficiently.

g) Organization building: It implies skills to build an organization. Building an organization

is an important part of Entrepreneurship development.

Q4. How Entrepreneurship is helpful to society? Explain.

Ans:

a) Helps in Wealth creation and sharing: By establishing Business entity, entrepreneurs

invest their own resources and attract capital from investors, lenders and the public.

b) Creating Employment Opportunities jobs: Entrepreneurs are by nature and definition

job creators, as opposed to job seekers.

c) Innovation: Entrepreneurs use businesses to create products and services that solve

problems in innovative ways. There products and services must be functional and they

must be designed to be cost effective.

d) Balanced Regional Development: Entrepreneurs setting up new businesses and

industrial units help with regional development by locating in less developed and

backward areas.

e) Improves Standards of Living of People: Increase in the standard of living in a

Community is another key goal of economic development. Entrepreneurs play a key role
in increasing the standard of living in a community. They do this not just by creating

jobs, but also by developing and adopting innovation that led to improvement in the

quality of life of their employees, customers and other stakeholders in the community.

Q5. Write a note on Entrepreneurship as a career option.

Ans:

a) Entrepreneurs create products, services, companies and even industries.

b) New Entrepreneurial venture creation includes launching a company, buying a

business, taking a franchise, starting a new venture in a family business.

c) Join existing Entrepreneurial ventures as a working/investing partner.

d) Enter-partnership with startups, small business, educational ventures, research,

development sector, corporate Entrepreneur or strategic Entrepreneurial unit etc.

e) Work with traditional companies as support/service providers.

f) In new start-ups they draw up a business plan and decide a career path, source funds
for the project from both private and government lenders, decide location suitable for the
business and lease space, form a team of workers/partners and formally launch a
Company.

Multiple Choice Questions:

Q1. ______________ is the type of self-employment where one is running a
business to satisfy the needs of people and looking for ways to make the
business better.

a. Entrepreneurship

b. Entrepreneur

c. Business Idea

d. Entrepreneurist

Ans. a. Entrepreneurship

Q2. Which of the following are the qualities of successful entrepreneurs?

a. They are confident.

b. They take responsibility for their actions.

c. They work hard

d. All of the above

Ans. d. All of the above

Q3. ____________ are people who work for a person or an organization and
get paid for that work.

a. Self employed

b. Wage employed

c. Both of the above

d. None of the above

Ans. b. Wage employed

Q4. __________ people are those who start businesses to satisfy the needs
of people.

a. Self-employed

b. Wage-employed

c. Both of the above

d. None of the above

Ans. a. Self-employed

Q5. A self employed person who is always trying to make his/her business
better by taking risks and trying new ideas is called ______

a. Skilled man

b. Business man

c. Entrepreneur

d. None of the above

Ans. c. Entrepreneur

Q6. Ramya and Ramu both own plant shops. Ramu sits at his shop every
day. When customers come, he sells to them. Ramya walks around and gets
customers to her shop. She also sells seeds and flowers. Who is an
Entrepreneur out of Ramya and Ramu.

a. Ramya

b. Ramu

c. Both of the above

d. None of the above

Ans. a. Ramya

Q7. What do entrepreneurs do when they run their business?

a. They help in increasing jobs in their area.

b. Helping the people in the society to earn money.

c. Both of the above

d. None of the above

Ans. c. Both of the above

Q8. Qualities of successful entrepreneurs are.

a. They keep trying new ideas.

b. They are confident.

c. They are creative

d. All of the above

Ans. d. All of the above

Q9. Ravi’s customer comes to his store and starts shouting at him. He does
not get angry. He listens to what his customer is saying. He is
_____________________

a. Hardworking

b. Confident

c. Patient

d. Trying new ideas

Ans. c. Patient

Q10. Susheela decides to sell her company tyres in Sri Lanka. It does not
sell and she has a loss. She apologizes to the people who work for her. She
says she will plan better next time. She _______________

a. takes responsibility for your mistakes

b. thinks before making a decision

c. does not give up

d. is creative

Ans. c. does not give up

11. Entrepreneurs can create jobs in the market.(T/F)

a. True

b. False

Ans. a. True

Q12. When many entrepreneurs sell mobile phones in a market, the prices
of phones increase.(T/F)

a. True

b. False

Ans. b. False
Q13. Entrepreneurs identify a need in the market and build a product or
service for it.(T/F)

a. True

b. False

Ans. a. True

Q14. As an entrepreneur, you should be _____

a. Creative

b. Hard Working

c. Decision Maker

d. All of the above

Ans. d. All of the above

Q15. An entrepreneur do the things as ___________

a. others are doing

b. different from others.

c. a lazy person

d. None of the above

Ans. b. different from others.

Q16. The money used to start a business is called _______________

a. Capital

b. Business Money

c. Start ups

d. None of the above

Ans. a. Capital

Q17. Success of entrepreneur depends on ______

a. Hard Work

b. Good Idea
c. Both of the above

d. None of the above

Ans. c. Both of the above

Q18. Which of the following are misconception/s about entrepreneurs?

a. Entrepreneurs are born, not made.

b. A person having a big business is an entrepreneur.

c. A person needs a lot of money to start a business.

d. All of the above

Ans. d. All of the above

Q19. A doctor who works for a hospital is a _______________ person.

a. Wage employed

b. Self employed

c. Both of the above

d. None of the above

Ans. a. Wage employed

Q20. Dr. Ravi has his own clinic so he is a _________ Person.

a. Self-employed

b. Wage-employed

c. Both of the above

d. None of the above

Ans. a. Self-employed

Q21. Positive impact of entrepreneurship on society is _________

a. Accentuates economic Growth

b. Encourages welfare of the society

c. Solves the problems of the society

d. All of the above

Ans. d. All of the above

Q22. Society plays a role in boosting entrepreneurship by __________

a. Providing raw materials

b. Creating needs and demands

c. Both of the above

d. None of the above

Ans. c. Both of the above

Q23. Adverse impact of entrepreneurship on society is ________________

a. Environmental degradation

b. Trade imbalance

c. Labour exploitation

d. All of the above

Ans. d. All of the above

Q24. Which of the following social problems are tackled by social

entrepreneurs?

a. Low reach of quality education

b. Unemployment

c. Child labour

d. All of the above

Ans. d. All of the above

Q25. Agricultural Entrepreneurship helps farmers in ____

a. finding low-cost innovations in farming processes.

b. giving loans to farmers

c. giving jobs to the family members of farmers.

d. All of the above

Ans. a. finding low-cost innovations in farming processes.

Q26. Which of the following entrepreneurship refers to starting industries in

which manufacturing, trading, providing services, productions are done on a
micro scale?

a. Women Entrepreneurship

b. Agricultural Entrepreneurship

c. Small Scale Entrepreneurship

d. None of the above

Ans. c. Small Scale Entrepreneurship

Q27. Entrepreneurship skills helps ______

a. to develop the ability to handle failure.

b. in making a difference to society.

c. to develop critical thinking

d. All of the above

Ans. d. All of the above

Q28. All businesses are either skyrocket or fail.(T/F)

a. True

b. False

Ans. b. False

Q29. Which of the following are commercial functions of Entrepreneur?

a. Innovation

b. Finance and Accounting

c. Leadership

d. All of the above

Ans. b. Finance and Accounting

Q30. An enterprise owned and controlled by a woman and giving at least 51
per cent of the employment generated in the enterprise to women is
_________

a. Agricultural Entrepreneurship

b. Small Scale Entrepreneurship

c. Social Entrepreneurship

d. Women Entrepreneurship

Ans. d. Women Entrepreneurship