Entrepreneurial Skills Class 10 Notes [ Term 2 ] : Entrepreneurial Skills Class 10 Notes [ Term 2 ] : Hello there, students! I’m Arhan Khan from CrackCBSE – CBSE Students’ Learning Platform. Today, I’m going to give you with a CBSE Entrepreneurial Skills that will support you in boosting your understanding. You can improve your grades in class, periodic tests, and the CBSE board exam by using this CBSE Entrepreneurial Skills Class 10 Notes [ Term 2 ] . You can also download the Entrepreneurial Skills Class 10 Notes [ Term 2 ] pdf for free from this page. So, without further ado, let’s get start learning. Entrepreneurial Skills Class 10 Notes [ Term 2 ]
Entrepreneurial Skills Class 10 Notes [ Term 2 ]
The word ‘entrepreneur’ is derived from the French word ‘entrepreneur’ which means to undertake. An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards.
Howard W. Johnson was an American educator. He says entrepreneur is composite of three basic elements (i) invention, (ii) innovation and (iii) adaptation.
According to Joseph Schumpeter, “Entrepreneurs as innovators, who use the process of entrepreneurship to shatter the status quo of the existing products and services, to set new products, new services.”
Entrepreneurship and Society
An entrepreneur has some personal qualities which influence his behaviour. No doubt, he lives in a society and therefore economic opportunities and gains affect him. Entrepreneur creates organisations. Entrepreneurship is affected by economic opportunities and gains as the entrepreneur lives in a society. Entrepreneurs promote investment, increase in production bring competitiveness in business, reduce costs of products and raise the standard of living in society.
Entrepreneurial Skills Class 10 Notes [ Term 2 ]
Qualities/Characteristics of a Good Entrepreneur
The major qualities/characteristics of a good entrepreneur are linked below.
- Leadership An entrepappeur must possess the characteristics of leadership and must lead a team for achievement of goals. leader is able to clearly articulate their ideas and has a clear vision. An entrepreneurial leader realises the importance of initiative and reactiveness and they go out of their way to provide a support to the team.
- Risk Taking An entrepreneur with rational planning and firm decisions bear the risks. They have differentiated approach towards risks. Good entrepreneurs are always ready to invest their time and money but they always have a back up for every risk they take.
- Innovativeness With the changing needs and requirements of customers production should meet requirements with the help of innovative ideas. An entrepreneurial venture does not have to restrict itself to just one innovation or even one type of innovation. Success can be built on combination of innovation. For example, a new product delivered in a new way with a new message.
- Goal-oriented Goal-oriented entrepreneurs achieve the maximum results from their efforts in business due to the fact they work towards clear and measurable targets.
- Decision-maker An entrepreneur has to take many decisions to put his business idea into reality. He chooses the best suitable and profitable alternative. • Highly Optimistic A successful entrepreneur is always optimistic and the present problems does not matter to them. He is always hopeful that the situation will became favourable for business in future.
- Motivator An entrepreneur has to create a spirit of team work and motivate them. So that he gets full cooperation from the employees.
- Self-confident An entrepreneur should have confidence to achieve his goals otherwise he won’t be able to convince his team to achieve his goals. • Action-oriented An entrepreneur should have an action oriented vision and ideology to plan things well.
- Dynamic Agent An entrepreneur creates new needs and new means to satisfy them. He has the ability to visualise new ventures and new plans. High Achiever An entrepreneurs are high achievers as they have a strong urge to achieve. The most important characteristic is his achievement motivation.
- Trust in Self An entrepreneur believes on their own decisions and actions as he has trust in his perseverance and creations. He does not believe in luck
Functions of an Entrepreneur
The various functions of an entrepreneur may be classified and described as under
- Innovation It includes introducing new products, opening new markets, new sources of raw material and new organisation structure.
- Risk Taking An entrepreneur has to take risk by choosing one among various alternatives.
- Decision-making It includes stabilising organisation’s aims and objectives and changing them according to changing conditions, taking decisions on effective techniques, utilisation of financial resources etc. So, decision-making is an important function of an entrepreneur
- Organisation and Management An entrepreneur organise and manage various economic and human factors through planning, coordination, control, supervision and direction
- Size and Scale of Business Unit An entrepreneur has to decide about the size of business unit as he wants to establish one production unit or more dependent upon the demand of the product Similarly, he has to decide about scale of production Le small scale, midklle scale in large scale.
- Appointment of Managerial and Other Work Force It is the entrepreneur who appoints the management staff as well as other work force as per the requirement and needs of the enterprise.
- Factors of Production The factors of production i.e. land, labour, capital etc., should be in appropriate proportion and to maximise output of these factors is the responsibility of the entrepreneur.
- Control and Direction He must exercise control over all departments and direct them on a timely basis.
- Finding Suitable Market A proper research must be done to find a suitable market for selling the products. Other functions like advertisement and publicity, appointment of selling agents, providing incentives to various selling intermediaries to promote sales should be given priority. * New Inventions and Innovations New inventions and innovations must be encouraged and introduced in production, sales, marketing, advertisement etc.
- Establishing Relations with Government An entrepreneur must establish good relations with government and its functionaries. His functions are to obtain licences, payment of taxes, selling the product to government, provision for export-import etc.
- Establishing Contacts with Competitors An entrepreneur must form contacts with the competitors to analyse the market. He must be in a position to make opportunities out of the given situation.
Role and Significance/Importance of Entrepreneur
An entrepreneur is the builder of economic growth. He promotes the prosperity of a country by his initiative and skill for innovation and dynamic leadership. He creates wealth, opens up employment opportunities and fosters the other segments of economic system.
The role and significance of an entrepreneur are given under the following headings
- Organiser of Society’s Productive Resources An entrepreneur is the organiser of society’s productive resources. He is the person who assembles the unused natural, physical and human resources of the society, combines them properly, establishes effective coordination between them and makes the economic activities dynamic.
- Helpful in Capital Formation An entrepreneur is helpful in capital formation as we know that increase in the rate of capital formation is quite essential for the economic development of any country. Those nations which are not able to increase the rate of capital formation or does it nominally remain backward from industrial development’s point of view.
- Increase in Employment Opportunities An entrepreneur creates maximum employment opportunities in the society by way of establishing new industries, developing and expanding the existing industries and by undertaking innovative activities.
- Development of New Production Techniques An entrepreneur does not feel contended only with the existing techniques of production. Hence, he carries out various experiments for saving time, labour and capital in the production, as also to improve the variety and quality of the product and service.
- Visionary Leader An entrepreneur has a good vision towards the achievement of his goals. He is able to recognise profitable opportunities and conceptualise strategies.
- Contribution of the Execution of Government Policies An entrepreneur provide an important contribution in implementing government policies and achieving the national goals. An entrepreneurs cooperate with the government for implementations of development plans of the country.
- Higher Productivity Entrepreneur have the ability to produce more goods and services with less inputs. They play an important role in raising productivity.
- Initiator An entrepreneur is the one who initiates the process of creating an enterprise by coming up with the idea for the business and planning out how to turn that idea into reality.
- Backbone of Capitalist System Capitalist economy is one in which there is a freedom to save and invest to compete and operate any business. An entrepreneur plays a vital and prominent role in the enterprise because he controls market by assuming the role of a competitor and a leader.
- Ingredient of Modern Production System An entrepreneur has become the balancing wheel of modern global economy. They seek the unique product, change the technical frontiers and reshape public desires. Today, entrepreneurs act as an ingredient of modem production system as they create wealth and employment.
Myths of Entrepreneurship
Entrepreneurship is a set of activities performed by the entrepreneur. It is the process of identifying opportunities in the market place. It is the attempt to create value. Many entrepreneurs believe a set of myths about entrepreneurship and the most common are as follows.
- Starting a Business is Easy In reality, it is a very difficultand challenging process to start a successful business. The rate of failure of new ventures is very high but small entrepreneurship are comparatively easier to start.
- Lot of Money to Finance New Business Successful entrepreneurs design their business with little cash also.
- Startups cannot be Financed Under the schemes like MUDRA, entrepreneurs can raise loans from banks.
- Talent is more Important than Industry This is not true as the nature of industry an entrepreneur chooses greatly effects the success and growth of the business.
- Most Startups are Successful Mostly in the developing countries startups fail as they could not manage to earn high profits.
Advantages of Entrepreneurship
The main advantages of adopting entrepreneurship as a career are discussed below
- Independence An entrepreneur is himself a boss or owner and he can take all the decisions independently.
- Exciting Entrepreneurship can be very exciting with many entrepreneurs considering their ventures highly enjoyable. Everyday will be filled with new opportunities to challenge your determination, skills and abilities.
- Wealth Creation The principal focus of entrepreneurship is wealth creation and improved livelihood by means of making available goods and services. Entrepreneurial venture generates new wealth, new and improved products, services or technology form entrepreneurs, enable new markets to be developed and new wealth to be created.
- Flexibility As an entrepreneur you can schedule your work hours around other commitments, including quality time you would spend with your family. – Status Success in entrepreneurship beings a considerable fame and prestige within the society.
- Ambition Fulfilment Through entrepreneurship one can fulfil his ambitions into original products or services.
Disadvantages of Entrepreneurship
Some of the disadvantages of entrepreneurship as a career are discussed below
- Huge Amount of Time You have to dedicate a huge amount of time to your own business. Entrepreneurship is not easy and for it to be successful, you have to take a level of time commitment.
- Risk An entrepreneurship involves high risk of loss. If the business fails then it will wipe away all the personal savings.
- Hard Work An entrepreneur has to work very hard to make the new business very successful.
- Uncertain Income There is no regular or fixed income available to an entrepreneur. So, there is uncertain kind of income received by an entrepreneur.
- Incompetent Staff A new entrepreneur may not be able to hire qualified and experienced staff so there are chances of incompetency by the staff due to lack of experience and knowledge.
Entrepreneurial Skills Class 10 Notes [ Term 2 ] : I hope that the notes Entrepreneurial Skills will be of great assistance to you, and that if you study it carefully, you will be able to pass the CBSE exam. If you have any questions or concerns with Entrepreneurial Skills , please post them in the comments below or contact us and we will do our best to answer them. CrackCBSE professionals prepared this Entrepreneurial Skills pdf if you notice any errors, kindly let us know by leaving a comment. Entrepreneurial Skills Class 10 Notes