Class- 9th
IT (402)
Book :
Employability Skills
U-4 Entrepreneurial Skills
A.
Multiple choice questions
Read the
questions carefully and circle the letter (a), (b), (c) or (d) that best
answers the question.
1.
Business is a (an) _____________________ activity.
(a) social
(b) economic
(c) hazardous
(d) selling
(a) Earn a
profit
(b) Solve
customers’ need innovatively
(c)
Both of the above
(d) None of the
above
1.
List three businesses seen around you. Share details of what the business does,
and how they run it ?
Ans:
|
Business |
what
the business does |
how
they run it |
|
Milk man |
Selling milk |
Selling milk
in shop |
|
Stationery
shop |
Selling
stationery items |
Selling
products in shop and supply at home via phone call |
|
Tikki Wala
Street Vendor |
Selling tikki
and chats |
Selling at
shop and supply online order too |
|
Statement |
Yes
/ No |
|
1. Ravi made
tea for his friends in the office.
Everyone liked the tea very much and told him that he is very good at
making tea. |
No |
|
2. Savita, a
house wife, needs extra money for her kids’ tuition. She notices that in the
afternoon, the children coming out of a nearby college look tired and hungry.
She makes refreshing Neembu Pani and
samosas and sells them to the students. |
Yes |
|
3. Rahul loves
dogs. He plays with dogs of his friends’
family. One day when they were going out-of-station,
they asked Rahul to take care of their
dog. Rahul thought that this was a good
idea, “taking care of dogs when the owner is traveling”. He
started his own company which is like a “hotel for dogs”. When the dog-owners
travel, they leave their dogs at this hotel and pay the company money for each day they
take care of the dog. Is Rahul an
entrepreneur? |
Yes |
|
4. Monica
noticed that her neighbours used to face a problem. They had to leave their
young baby behind when they went for work. Monica started going to this house
in the evening to take care of the baby for them. Her neighbours were very
happy and used to give her chocolates for doing that. |
No |
Ans: A
business is defined as a continuous activity, where economic actions are taken
by humans with the objective of earning a profit by either producing, sourcing,
buying and selling of goods and services.
Ans: Entrepreneurship
:The
process of developing a business plan, launching and running a business using innovation to meet
customer needs and to make a profit is
entrepreneurship.
Ans: An
entrepreneur is a person who undertakes risk to start a business of his/her
own.
An entrepreneur is the one who always searches for change, responds to it and
exploits it as an opportunity.
Ans: Characteristic
of an entrepreneur:-
1) Patience : Entrepreneurship is not a one-day job.
Success may not be achieved quickly and therefore, it is important for an
entrepreneur to be patient in running the business. For example Sushma kept
working for 2 years before success came her way.
Ans:
Characteristics of Entrepreneurship
2. Believe in hard
work and discipline
3. Adaptable and
flexible to achieve the goals of enhancing quality and customer satisfaction
4. Knowledge of the
product and services and their need or demand in the market
5. Financial literacy
and money management skills
6.
Effective planning and execution.
1) Innovation: In simple words,
innovation can be understood as creative use of one’s ideas to propose a
solution that introduces something unique or new to the world. There are many
types of innovation such as product, process, disruptive etc. Entrepreneurship
is characterized by innovation as it is about using innovation to bring unique
solutions to fruition. It involves continuously searching for new ideas,
evaluate existing solutions, systems and processes, finding ways to increase
efficiency and effectiveness of products and services etc.
2) Dynamic Economic Activity: Entrepreneurship
involves creation of value or wealth through a business enterprise, that buys
and sells commodities/product/services and uses resources optimally. Hence,
entrepreneurship is an economic activity. The process of value creation occurs
in an uncertain and dynamic business and economic environment. A lot of
ambiguity is involved in running a business due to many unknowns or things not
going as planned. Due to this, entrepreneurship is considered a dynamic
economic activity.
3)
Risk bearing: Since entrepreneurship is about starting something new, it
involves uncertainties and risks. Entrepreneurs have to take risks in
implementation of certain decisions and ideas. There are some risks that can be
projected by businesses such as supply shortage, increase in cost of raw
materials, volatility in market prices, changes in government regulations etc.
while there are some risks which cannot be projected such as disasters,
pandemics, economic slowdowns etc. The risk of profit versus loss is always
prevalent in a business.
4) Potential For Profit: “Profit potential is the likely level of return or compensation
to the entrepreneur for taking on the
risk of developing an idea into an actual business venture.” For a commercial
entrepreneur, profit is usually the main goal. Even for social entrepreneurs,
profit might not be the main motive, but a way to sustain the organization has
to be found. Without recurring revenue transactions and low profitability,
entrepreneurship can turn into a theoretical and leisurely activity.
Answer the
following questions in your own words.
1.
Gulab lives in a small village in Rajasthan. She noticed that all the women in
her village were good at making paintings and handicraft product. She collected
money and started a business. Gulab would help the women to get material from
cities and support them in making latest designs. She would then arrange for
these paintings and handicraft products to be sold in big cities. How do you
think Gulab, is helping her society as an entrepreneur?
Ans: Yes , Gulab
is helping her society as an entrepreneur as she help poor women of her
village to earn for livelihood.
Ans: Benefits of
entrepreneurship: The various benefits include the following:
1) Do what you are interested in:
Entrepreneurship allows you to start and do something you like
using your hobbies and skills.
for someone else. You can decide
the kind of work you like to do and how you want to do it.
earn and how you want to earn it.
how much risk you want to take.
Usually, the larger the risk, the bigger could be the profit!
Ans: 1. Employment
opportunities
Entrepreneurs
employ labour for managing their business activities and provides employment
opportunities to a large number of people. They remove unemployment problem.
2. Balanced Regional Development
Government
promotes decentralized development of industries as most of the incentives are
granted for establishing industries in backward and rural areas. Thus, the
entrepreneurs to avail the benefits establish industries in backward and rural
areas.
They remove
regional disparities and bring balanced regional development. They also help to
reduce the problems of congestion, slums, sanitation and pollution in cities by
providing employment and income to people living in rural areas. They help in
improving the standard of living of the people residing in suburban and rural
areas.
Entrepreneurs
help to mobilize and utilize local resources like small savings and talents of
relatives and friends, which might otherwise remain idle and unutilized. Thus
they help in effective utilization of resources.
Entrepreneurs
aim to get quick return on investment. They act as a stabilizing force by
providing high output capital ratio as well as high employment capital ratio.
5. Promotion of Exports
Entrepreneurs
reduce the pressure on the country’s balance of payments by exporting their
goods they earn valuable foreign exchange through exports.
Entrepreneurs produce a wide range of products required by consumers. They meet the demand of the consumers without creating a shortage for goods.
7. Social Advantage
Entrepreneurs
help in the development of the society by providing employment to people and
paves for independent living They encourage democracy and self-governance. They
are adept in distributing national income in more efficient and equitable
manner among the various participants of the society.
Entrepreneurs
help to increase the per capita income of the country in various ways and
facilitate development of backward areas and weaker sections of the society.
A country can
attain economic development only when there is more amount of investment and
production. Entrepreneurs help in channelizing their savings and savings of the
public to productive resources by establishing enterprises. They promote
capital formation by channelizing the savings of public to productive
resources.
Entrepreneurs
raises money for running their business through shares and debentures. Trading
of shares and debentures by the public with the help of financial services
sector leads to capital market growth.
The
infrastructure development of any country determines the economic development
of a country, Entrepreneurs by establishing their enterprises in rural and
backward areas influence the government to develop the infrastructure of those
areas.
Entrepreneurs
play an important role in the promotion of domestic trade and foreign trade.
They avail assistance from various financial institutions in the form of cash
credit, trade credit, overdraft, short term loans, secured loans and unsecured
loans and lead to the development of the trade in the country.
Entrepreneur
reduces the concentration of power in a few hands by creating employment
opportunities and through equitable distribution of income. Entrepreneurs
promote economic integration in the country by adopting certain economic
policies and laws framed by the government. They help in removing the disparity
between the rich and the poor by adopting the rules and regulation framed by
the government for the effective functioning of business in the country.
Entrepreneurs
help to attract funds from individuals and institutions residing in foreign
countries for their businesses.
1. Identify
qualities of the following entrepreneurs. Also write why you think this person
has this quality or the qualities.
(a)
Anil wanted to do something very different and something no one has thought of
before. He decided to start a special travel services for old people/ senior
citizens.
Ans: No, Anil
has a unique idea but he didn’t earn money he start travel service to do only
social service .
Ans: No, Rakesh
has a unique social welfare idea but it is not for profit earning as he charged
a small fee for the space.
Ans: Yes, Radhika was an entrepreneur as she had not
give up at any cost and also earn profit with a unique idea.
Ans: An entrepreneur needs to
have the following set of qualities.
2) Positivity : When a person starts a business, he/she may face lots of difficulties and failure. An entrepreneur has to think positively even when he/she takes a big risk. There may be losses at times but even then an entrepreneur should stay positive and continue to work hard towards their goal. For example, Sushma listened to her customers’ complaints. She did not get upset and improved her product.
6) Creativity and Innovation : An entrepreneur should be able to see a problem from different perspectives and come up with original and creative solutions. They should also be able to recognise an opportunity in a problem and find an innovative solution.
1. State whether
the person engaged in the activity mentioned below is an Entrepreneur or an
Employee
(a) Rahul starts
a shop to sell Chaat and special Paani Puri. He is an Entrepreneur .
(b) Shahid
becomes the manager of a dealership selling food products. He is an Employee .
(c) Ritu leaves
the company she worked for and starts catering food for marriage programmes.
She is an Entrepreneur .
1.
List any four characteristics of entrepreneurship.
Ans: 1.
Ability to take up risks
2. Believe in
hard work and discipline
3. Adpatable and
flexible to achieve the goals of
enhancing
quality and customer satisfaction
4. Knowledge of
the product and services and their
need or demand
in the market
5. Financial
literacy and money management skills
6. Effective
planning and execution.
Ans: 1)
The
wage employment does not involve too much risk but entrepreneurship involves
taking certain amount of calculated risks.
2) However, the continuity
of the service in case of wage employment depends on the terms and conditions
laid down in the contract between the two parties and also sometimes the
relationship between the employer and the employee.
Ans: 1)
A
Contract employment is defined as a temporary time period of employment done on
the basis of contract.
2) A common
factor to entrepreneurship and wage employment is Labor market institutions.
3) The labor
market institutions include wage-setting policies, social insurance provisions,
employment security, and the enforcement of restrictive covenants.
4) Also, it
includes the composition and characteristics of existing employers which
includes wages, advancement opportunities, and working conditions.
5) Another
important factor in the labor market is Labor productivity.
Ans:
|
Wage
Employment |
Entrepreneurship |
|
Follow
instructions |
Make
own plans |
|
Routine
job |
Creative
activity |
|
Earning
is fixed, never negative |
Can
be negative sometimes, generally surplus |
|
Does
not create wealth |
Creates
wealth, contributes to GDP |
5.
Identify unique features of entrepreneurship versus wage employment.
Ans:
|
Wage
Employment |
Entrepreneurship |
|
Follow
instructions |
Make
own plans |
|
Routine
job |
Creative
activity |
|
Earning
is fixed, never negative |
Can
be negative sometimes, generally surplus |
|
Does
not create wealth |
Creates
wealth, contributes to GDP |
A. Fill in the
blanks
State the type
of business — product, service or hybrid
1. Arun bakery,
which makes and sells bread to people. Product
2. Ram’s repair
shop, which repairs motorcycle. Hybrid .
3. Hari’s
hair-salon, where he cuts hair for women and men. Service
B. Short answer
question
1.
What are the 3 types of business activities? Explain with examples.
Ans: Types of business activities
From the story of
Rahul, we understood that there can be three types of business activities:
• Product /
Manufacturing business
• Service business
• Hybrid business
A business where a
seller and buyer exchange an item, which can be seen and touched, is called a
product based business. For example, a Sports Shop.
A business where a
seller helps the buyer to finish some work. For example, a cricket coaching
center.
A hybrid is the one
where the business is doing both selling product and selling services. For
example, Rahul starting a sports academy for coaching and selling sports
equipment. We also see this in restaurants where the food itself is the product
sold and the catering is theservice provided.
Q : What
is the role of an Entrepreneurship
Ans:
Role of Entrepreneurship
A.
Fill in the blanks
1. Write P-
Product, S- Service and H- Hybrid for the following businesses.
(a) Ice-cream
seller: Product
(b) Restaurant/Cafeteria
Owner: hybrid .
(c) Car-driving
School owner: service
B. Short answer
questions
1.
What are the key differences between product- and service-based businesses?
Ans:
|
Product |
Service |
|
A
product is tangible, it is physical and canbe held , seen and movable. |
A
service is tangible, can only be felt and not touched. |
|
Product
value is derived by the customer. |
Value
of service is offered by the service provider. |
|
Customer
care of the product is limited. |
Customer
care forms critical component of the marketing s service. |
|
A
product can be stored for future use. |
A
service is perishable and cannot be stored for later use or sale. |
|
A
product can be owned. |
A
service can not be owned by the customer once payment has been made, |
|
|
|
Q: .
What is the meaning of manufacturing and trading based business? identify
difference between product and service business activities.
Ans:
Manufacturing Business: Manufacturing businesses source
product s that can be used as raw materials, with the intention of converting
these materials to make an end product. This new product could be something
that can be directly sold in the consumer market or could be a product that can
be used in the value chain. These businesses focus on transformation of one
product to create a new product. Most manufacturing businesses combine raw
materials, technology, labor, plant and machinery and overheads in the process
of production. Some examples of such businesses include manufacturing and
selling of shoes, clothes, mobile phones, laptops, suitcases, metal products
etc.
Trading
Business: A trading business is also involved in reselling of
goods. However, the difference between a trading business and a merchandising
business is that in trading business, a trader does not necessarily have to
keep stock of inventory. Trading businesses work with different kinds of
products and services that is sold to consumers, businesses or government
organizations. Some activities trading businesses are involved in are buying of
products or brokering of services, negotiating for prices and coordinating
delivery. A trading business earns money from the profit margin purchase cost
and selling price. Import and export of goods and services largely make up the
trading sector. Some examples of trading businesses are real estate brokers,
middlemen, importers, exporters, foreign exchange traders etc.
4. Classify
business examples as product, service and hybrid businesses.
Ans: Product
business A business where a seller and buyer exchange an item, which can be
seen and touched, is called a product based business. For example, a Sports
Shop.
Service business
A business where a
seller helps the buyer to finish some work. For example, a cricket coaching
center.
Hybrid business
A hybrid is the one where
the business is doing both selling product and selling services. For example,
Rahul starting a sports academy for coaching and selling sports equipment. We
also see this in restaurants where the food itself is the product sold and the
catering is the service provided.
Ans: A business where
a seller and buyer exchange an item, which can be seen and touched, is called a
product based business. For example, a Sports Shop.
|
Column
A |
Column
B |
|
1. Business
idea |
A. Arun goes
to the bank to get loan for the shop |
|
2. Get money |
B. Arun and
Shyam are thinking about selling tea
in front of their School |
|
3. Customer
needs |
C. Arun and
Shyam decide to sell tea along with free biscuits |
|
4. Attract
customers |
D. Shyam takes
his tea samples to customers to understand their taste
preferences |
Ans:
1. Business idea – C. Arun and Shyam decide
to sell tea along with free biscuits
2. Get money – A. Arun goes to the bank to
get loan for the shop
3. Customer needs – B. Arun and Shyam are
thinking about selling tea in front of
their
School
4. Attract customers - D. Shyam takes his tea samples to customers
to understand their
taste
preferences
1. My customers are not buying my food product because they do
not like the flavour of it. What step of the business should I follow next?
Ans: Improving
Product/ service :
You can use this
knowledge of what your customer likes and does not like to improve your
product. (For example, Prem’s customers liked variety)
Ans: Entrepreneurship
development is also a process in itself and can be divided into following three
phases:
1) Stimulatory phase: Stimulatory phase involves
stimulating or generating need, interest, motivation and awareness among
individuals to become entrepreneurs. It is done by orienting them towards the
meaning, process, benefits and practice of entrepreneurship.
2) Support
phase: Support phase is about providing support for various activities of new
ventures by mentoring, incubating, financing and advising the entrepreneurs.
Some of these activities include business model design, prototype and product
development, legal registration, management consultancy, financial assistance,
provision of land, shed and power, selection of plant and machinery, marketing
support, approvals and licenses etc.
3) Sustenance
phase: Sustenance phase focuses on helping enterprises to plan for growth.
Guidance is provided around growth strategies, expansion, diversification,
modernization etc. Support is also given in terms of research and development,
additional finance, exploration of global markets etc.
Ans: Steps
of starting a business
|
Idea |
The
first step is to come up with a business idea. A business idea could be
based on (a)
Something you are interested in doing (For example, making Dosa) (b)
A need you see in the market (For example, Tasty food next to the station) |
|
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. |
|
Understanding customer needs |
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. |
|
Improving Product/ service |
You
can use this knowledge of what your customer likes and does not like to
improve your product. (For example, Prem’s customers liked variety) |
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