CLASS 11TH COMMERCE ENTREPRENEURSHIP CONCEPT AND FUNCTIONS

                                                                                    CONCEPT AND FUNCTIONS FACTS THAT MATTER - ❖  Mansukhbhai Prajapati, originally from Morbi village in Rajkot, South Gujarat,      a tenth standard dropout with his      remarkably innovative idea, produced-the Mitticool refrigerator  which he launched      in 2002, which is made of mud/clay      and works without electricity. Further innovative zeal led him to develop the Mitticool      water filter, tavdi or tawa (frying pan) from clay. ❖  Entrepreneurship may be defined as a systematic innovation which consists of the      purposeful and organised search for      changes, and a systematic analysis of the opportunities that such change might offer      for economic and social transformation. ❖  Entrepreneur is a person who develops and owns his own enterprise, is a moderate      risk taker and works under uncertainty      for achieving the goal. ●  Is innovative and a persuader of deviant pursuits. ●  Reflects a strong urge to be independent. ●  Persistently tries to do something better. ●  Is dissatisfied with routine activities. ●  Is prepared to withstand the hard life. ●  Is determined but patient. Exhibits sense of leadership. ●  Exhibits sense of competitiveness. ●  Takes personal responsibility. ●  Is oriented towards the future. ●  Tends to persist in the face of adversity ❖  Functions of an entrepreneur:  a.  Entrepreneurial Functions b.  Promotional Functions, c.  Managerial Functions,  d.  Commercial Functions. ❖  Entrepreneurial functions: Innovations, Risk-taking, Organisation building. ❖  Promotional functions: Investigation of ideas, Detailed investigation, Assembling requirement,      financing the proposition. ❖  Managerial Function: Planning, Organizing, Staffing, Directing, Leadership, Communication,      Motivation, Supervision, Co-ordination, Controlling. ❖  Commercial Functions: Production, Finance, Marketing, Personnel, Accounting. ❖  Need for Entrepreneurship on our economy: Life-line of a nation, ●  Provides Innovation, Change of Growth/Inclusive Growth ●  Increased Profits, Employment Opportunities, Social Benefits. ❖  Entrepreneurial Myths: Starting a business is easy.      Takes a lot of money to finance a new business. Start-ups can’t be financed with debt. Banks don’t      lend money to start-ups. Start businesses      in mostly attractive industries. Growth of start-up depends more on entrepreneurial      talent. Success is assured financially. ❖  Advantages: Excitement, Originality, Independence, Rational Salary, Freedom. ❖  Disadvantages: Salary, Benefits, Work Schedule, Administration, Incompetent staff. ❖  Process of Entrepreneurship: Self-Discovery, Identifying Opportunities, Generating      and Evaluating Ideas, Planning, Rising      Start-up Capital, Start up, Growth, Harvest.      WORDS THAT MATTER - ❖  Entrepreneur: The word “entrepreneur” is derived from the French word “entreprendre” which      means “toundertake” i.e. individuals who undertake the risk of a new enterprise. The word     “entrepreneur”, therefore, firstappeared in the French language in the beginning of the sixteenth      century. The word was coined by Richard Cantillon,an Irishman, living in France. ❖  Entrepreneurship: Entrepreneurship can be described as a process of action an entrepreneur      undertakes to establish his enterprise. ❖  Enterprise: It is the fourth factor of production, it assembles, coordinates and manages      the other factors namely land, labour,capital to start a new business. ❖  Opportunity: A chance of doing something new. ❖  Economic Agent: An economic agent is a person, company, organization who unites all      means of production land, produces aproduct, give certain value to a product and sell it in the market. ❖  Idea: A thought, an opinion or mental impression. ❖  Idea centric: The ability of the individual to use unique and divergent patterns of      thought to generate products. ❖  Factor of Production: Land, Labour, Capital, Entrepreneur and Enterprise. ❖  Innovation: Doing something new and something different. ❖  Product: A substance produced for sale it again. ❖  Services: The performance of any duties or work for another and getting remuneration. ❖  Catalytic Agent: The catalyst agents are people who brings about drastic changes in an economy. ❖  Risk: Uncertainty concerning a loss. ❖  Communication: A giving, receiving, or exchange information. ❖  Planning: Step involves mapping out exactly how to achieve a particular goal and      deciding in advance. ❖  Organizing: After a plan, a manager needs to organize his/her team and materials,      Assigning work and granting, makingoptimum use of the resources required to enable      the successful carrying out of plans. ❖  Motivation: Motivation is also a kind of basic function of management, because without      motivation, employees cannotwork effectively. If motivation does not take place in an      organization, then employees maynot contribute to the otherfunctions (which are usually      set by top-level management). ❖  Controlling: It includes establishing standards of performance – measuring actual performance,      comparing standardperformance with actual performance then find variation and taking corrective      measures. ❖  Leadership: Ability to influence others to perform task. ❖  Staffing: Job analysis, recruitment training and hiring for appropriate jobs. ❖  Finance: The word finance was originally a French word. In the 18th century, it was adapted      by English speakingcommunities to mean “The management of money.” ❖  Marketing: It is concerned with the movement of goods and services from producers to consumers,      i.e, making peopleaware of a company’s products and their satisfaction. ❖  Personnel: People employed in an organization. ❖  Accounting: The art of recording, classifying and summarizing, in a significant manner and in terms      of money, transactionand events which are, in part at least, of financial character, and interpreting      the result thereof. ❖  Profit: The return received on a business undertaking after all operating expenses have been met. ❖  Salary: A salary is a form of periodic payment from an employer to an employee, which may be specified in an      employment contract.SOME FAMOUS ENTREPRENEURS -   ❖  Narayana Murthy is an Indian IT industrialist and the co-founder of Infosys, a multinational corporation providing      business consulting and technology. ❖  Sir Richard Charles Nicholas Branson (born 18 July, 1950) is an English business magnate and investor.      He is best known asthe founder of Virgin Group of more than 400 companies. His first business venture      was a magazinecalled Student at the age of 16 in 1970. ❖  Haathi Chaap was founded in Delhi by entrepreneur Mahima Mehra and her business partner Vijendra      Shekhawat in 2003. For thefirst four years, they exported their paper to Germany. In 2007, it was      launched in India. ❖  Karsanbhai born in a farmer family in north Gujarat, finished his B.Sc. in Chemistry at age 21 and worked as      a lab technician, first inthe New Cotton Mills, Ahmedabad, of the Lalbhai group and then at the Geology and      Mining Department of thestate Government. In 1980,Karsanbhai set up Nirma, (after daughter Nirupama) selling      detergent powder. ❖  Dhirajlal Hirachand Ambani Popularly known as ‘Dhirubhai Ambani’ Indian business tycoon who founded Reliance      Industries in Mumbaiwith his cousin. Dhirubhai has figured in the Sunday Times list of top 50 businessmen in Asia. ❖  The sociologists feel that certain communities and cultures promote entrepreneurship like for example in India      we say that Gujaratis and Sindhis are very enterprising.      CHRONOLOGICAL LIST OF DEFINITIONS - ❖  1734: Richard Cantillon: Entrepreneurs are non-fixed income earners who pay known costs of      production but earn uncertain incomes. ❖  1803: Jean-Baptiste Say: An entrepreneur is an economic agent who unites all means of production-land      of one, the labour of another and thecapital of yet another and thus produces a product. By selling the product      in the market he pays rent of land, wages to labour, interest on capitaland what remains is his profit. He shifts      economic resources out of an area of lower and into an area of higher productivity and greater yield. ❖  1934: Schumpeter: Entrepreneurs are innovators who use a process of shattering the status quo      of the existing products and services, toset up new products, new services. ❖  1961: David McClelland: An entrepreneur is a person with a high need for achievement [N-Ach].      He is energetic and a moderate risk taker. ❖  1964: Peter Drucker: An entrepreneur searches for change, responds to it and exploits opportunities.      Innovation is a specific tool of anentrepreneur hence an effective entrepreneur converts a source into, a               resource.