Students can easily access the best AI Class 10 Notes Chapter 4 Entrepreneurial Skills Class 10 Notes for better learning.
Class 10 AI Entrepreneurial Skills Notes
Introduction:
Entrepreneur skills include various skill sets such as leadership, time management, problem solving. You can apply these skills in many job roles and industries. These entrepreneur skills are vital for promoting innovation, business growth and competitiveness.
Entrepreneurship and Society:
Entrepreneurship plays an influential role in the economic growth and standard of living of a society. Entrepreneurs run their businesses in a market. From the market, people will get their products and services who need them. This process of buying and selling helps society to grow. Basically, entrepreneurs satisfy customers’ needs, wants, and demands in the market.
Qualities of Entrepreneur:
They play the role to guide the person to achieve his/ her goal. Some qualities of an Entrepreneur are stated below:
Persistent: Successful entrepreneurs understand that failure isn’t the end of the world. Instead, failure is a rehearsal for success. Persisting despite any roadblocks increases your confidence, conviction, creativity, and innovation.
Creative: Creativity encompasses more than proficiency in a specific art form. Creative entrepreneurs find inspiration or use their imaginations to solve problems-often with limited resources.
Responsible: Successful entrepreneur are comfortable taking responsibility even when things aren’t going well. It’s best to keep an attitude of curiosity about how businesses rise and fall and to have a willingness to avoid the blame game in order to get the thing done.
Inquisitive: Inquisitiveness is an important trait for entrepreneurs because it helps them gatherinformation, which can be used to make more informed decisions. Curiosity is the thirst of knowledge. The desire to learn and understand new things and to ask questions to figure out the “how” and crucially the “why”.
Goal-Oriented: Entrepreneurs are all about setting goals and putting everything they have into achieving them. They are determined to make their business succeed and will remove any obstacles that stand in their way. They also tend to be strategic in their games plans and have a clear idea of what they want to achieve and how they plan to do it.
Independent: They are individualists and self-starters who prefer to lead rather than follow.
Self-Confident: Self -confidence is the corner stone of entrepreneurial success. By cultivating a positive mind set and taking persistent action entrepreneurs can unleash their full potential. With unwavering self-belief they can overcome challenges, inspire others and navigate the ever changing landscape of entrepreneurship. Example: Thomas Edison is a great example of an entrepreneur with unshakeable confidence.
Risk-Taker: You’ve likely heard the adage, “No risk, no reward.” That can be true when launching any business venture. The primary reward of starting a successful business may be profit or independence, while the inherent risk is failure-and the personal and financial set backs this might entail.
Functions of an Entrepreneur:
Entrepreneurial functions:
Organisation Building and Management:
- Organisation building is about bringing together different factors of production and allocating these resources to bring down costs and losses.
- All decisions relating to an enterprise are taken by the entrepreneur.
- An entrepreneur builds the Organisation by taking various steps such as hiring employees, organising the factors of production, sourcing finance, etc.
Risk-taking:
- Risk-taking is about taking responsibility and planning for a loss or mishap that may occur in the future due to unforeseen contingencies
- An entrepreneur plays the function of developing a certain risk-taking appetite and taking calculative risks to reduce adverse consequences.
- Some common risks entrepreneurs take are around return on investment, hiring of new employees, working with vendors, etc.
Innovation:
- Entrepreneurs innovate by introducing new concepts, products, services, designs, ideas, etc.
- They may introduce something new and innovative in any branch of economic activity.
- In today’s world, a new business cannot survive and sustain without innovating in some manner
- An entrepreneur foresees a potentially profitable opportunity and innovates in the effort to exploit it.
Promotional functions:
Idea Discovery:
- The first step towards entrepreneurship is the discovery of a business idea.
- An entrepreneur comes up with a business idea and thinks about ways to implement it.
- It is about seeking opportunities for a specific type of business and finding ways to commercialise it.
- Usually, entrepreneurs work around the process of idea discovery by exploiting natural resources, finding a market need, or calculating the profit potential.
Detailed Investigation:
- While coming up with ideas can seem like an easy process, the challenge is to understand if the idea has the potential to turn into a viable business venture.
- For this, an entrepreneur conducts research, investigates and evaluates an idea considering various factors, and estimates the total demand for a new product or service.
Assembling the Requirements:
- Some basic business requirements include infrastructure or office space, human resources, key vendors or partners, working capital, etc.
- In a manufacturing or product-based business, some requirements are selecting the factory site, sourcing plant, and machinery, hiring staff, finding the right suppliers, etc.
- No matter what is the type of the business, an entrepreneur has to work towards assembling and organising all the requirements once he/she is sure about the practicality and profitability of the proposition.
- Once this function is performed, the project is set to start smoothly.
Financing:
- Raising capital for a business is one of the core functions that entrepreneurs perform themselves, not just at the initial
- stage of the business, but even to grow and scale the business.
- First, the requirements of finances are eștimated.
- Next, the sources from which capital will come are determined.
- This includes calculating the long-term and short-term financial requirements and considering the debt-equity ratio.
Managerial functions:
Planning:
- An entrepreneur documents a business idea in the form of a business plan, to detail each element of the business such as product or service description, operations, marketing, finance, accounting, growth plan, etc.
- A business plan serves as a guide to determine the business objectives and the course of action.
- It helps to detail the “what, when, how, and who” of doing every specific task.
Organising:
- Organising in the managerial context refers to setting specific and attainable goals and objectives to be achieved by different departments and by each employee.
- It is about arranging, directing, guiding, coordinating, and controlling the key business activities
Directing:
- Directing is about initiating planned action and ensuring that each employee is performing effectively.
- This also includes doing continuous performance reviews and organising tasks according to plans.
Staffing:
- Staffing refers to different sub-processes around human resource management, such as manpower planning, recruitment, selection, placement, training, transfer, salary, promotion, payroll, appraisal, etc.
- The objective of staffing is to fill a particular position with the right employee at the right time.
Leadership:
Leadership is more of a skill than a function for an entrepreneur as he or she has to lead, guide and supervise people who work for the business.
It is the process by which an entrepreneur directs, guides and influences the work of others in choosing and attaining specified goals by mediating between the individual and Organisation in such a manner that both get maximum satisfaction.
Communication:
- An entrepreneur has to communicate every single day, in the form of writing, responding, drafting emails, verbal instruction, discussion, etc.
- Entrepreneurs spend 75 % to 90 % of their working time communicating with others.
- It refers to the exchange of ideas, feelings, emotions, knowledge, and information betweel two or more persons.
- Nothing happens in management until effective communication takes place.
Supervision:
- After issuing instructions, the entrepreneur has to see that the given instructions are carried out.
- Supervision refers to the job of overseeing subordinates at work to ensure the maximum utilisation of resources, to get the required and directed work done, to correct the subordinates whenever they go wrong, and ensure each function of the business runs smoothly.
Motivation:
Along with guiding employees, an entrepreneur also plays the role of motivating them and encouraging positive behaviour and culture within the Organisation.
Motivating employees is about creating an urge in them to exhibit the desired behaviour and positive attitude towards work.
Employees with high motivation automatically do other things along with it to perform successfully, such as being productive, flexible, competitive, comprehensive, efficient, etc.
Co-ordination:
- Coordination between different departments of the business helps to ensure that work happens in a timely manner.
- Activities of all employees must be channelised towards goal achievement.
- An entrepreneur has to set certain targets, measures, goals, etc.
- With different departments to ensure all are coordinating and working effectively internally as well.
Controlling:
Sometimes controlling is necessary for the entrepreneur to set company rules and policies.
The controlling function helps the entrepreneur to set performance standards, measure and compare productivity and performance, identify variations, take corrective action, etc.
Negotiation:
An entrepreneur negotiates terms and conditions for many parts of the business such as payment terms and timelines, salaries of employees, vendor quotations, etc.
Commercial Functions:
Production and Operations:
Depending on whether it is a service business or product business, an entrepreneur has to perform the function of managing production or operations.
For a manufacturing business, production-related activities include sourcing raw materials, checking the functioning of machinery, utilising maximum capacity, meeting order requirements, etc.
Finance and Accounting:
- While finance is more focused on raising funds and managing them, accounting helps to record and analyse the financial position of the business.
- Thus, an entrepreneur has to prepare and analyse cash flow statements, income sheets, balance sheets, etc.
Marketing:
- Marketing is about moving the product or service from the producer into the hands of the end customer or user.
- It involves promotion, advertising, distribution, customer service, etc
- An entrepreneur has to perform this function to make people aware of the offerings of the business and makes sales.
Human Resource Management:
- Human Resource Management (HRM) refers to the recruitment, employment, selection, training, development, and compensation of the employees within an organisation.
- An entrepreneur performs this function as no business can function without people.
Role of entrepreneurs
An entrepreneurs perform these roles:
Innovator’s Role:
- Entrepreneurs innovate by bringing unique and new products and services into the market.
- In many cases, these are improved versions of existing products or services available.
- Innovation fuels economic growth and helps to boost global presence of products and services.
Agent’s role:
Entrepreneurs act as ‘Agents of Change’ as they identify opportunities, solve problems, offer effective solutions, establish enterprises, set up industries and bring positive change for the economy.
Coordinating role:
- An entrepreneur coordinates many things such as factors of production, delegated tasks, smooth functioning across different business departments, timely delivery of inputs and outputs etc.
- However, by combining resources in an optimal and best possible manner, an entrepreneur even makes use of under-utilised resources in an economy.
Risk assumption role:
- Entrepreneurs are not risk-aversive and they realise that taking risks is a part of business.
- The fruit of bearing risks can be profit, which leads to wealth generation for overall economy.
Capital formation role:
- Mobilisation of idle savings takes place when money is invested in a business.
- This mobilisation of capital leads to development of assets, trade activities, increase in capital availability and economic development.
Imitating role:
- In many developing countries, entrepreneurs either imitate or adapt the innovations of developed nations.
- These innovations are adapted according to the local needs and conditions and work towards overcoming the entrepreneurial challenges.
Employment Generation role:
- Businesses cannot function without employing people.
- Skilled professionals, unskilled labouf and managerial staff are all required by businesses.
- Hence, entrepreneurship solves the problem of unemployment, which is a major problem in economic development.
Status transformation role:
- Since more and more people are employed by entrepreneurs, overall income and standard of living of the society increases.
- This encourages equitable distribution of wealth and reduces income disparity in the economy.
Balancing role:
- Entrepreneurship is encouraged with small and micro enterprises and small-scale industries as well.
- This encourages regional development and removes development imbalances in the economy.
Importance of Entrepreneur:
Life-line of a nation: No country can progress without the development of entrepreneurship. Every country is trying to promote its trade so that it is able to share the benefits of development. Therefore, entrepreneurship is the yardstick to measure the level of development of a country.
Provides innovation: Entrepreneurship provides new ideas, imagination and vision to the enterprise. An entrepreneur is an innovator as he tries to find new technology, products and markets. He increases the productivity of various resources. The entrepreneur stands at the centre of the whole process of economic development. He conceives business ideas and puts them into effect, to enhance the process of economic development.
Change of growth /Inclusive growth: An enterprise operates in a changing environment. The entrepreneur moulds the enterprise in such a changing environment. The latter moulds not only the enterprise, but also alters the environment itself, to ensure the success of the enterprise. In order to meet the challenge of automation and the complexities of advanced technology, there is a need for the development of entrepreneurship.
Increased profits: Profits can be increased in any enterprise, either by increasing the sales revenue or reducing cost. To increase the sales revenue is beyond the control of an enterprise. Entrepreneurship, by reducing costs, increases its profits and provides opportunities for future growth and development.
Employment opportunities: Entrepreneurship and its activities provide the maximum employment potential. Large numbers of persons are employed in entrepreneurial activities in the country. The growths in these activities bring more and more employment opportunities.
Social Benefits: It is not only beneficial to the business enterprise, but to the society at large. It raises the standard of living by providing good quality products and services at the lowest possible cost. It also makes the optimum use of scarce resources and promotes peace and prosperity in the society.
Myth about Entrepreneurship:
- 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 business in mostly attractive industries
- Growth of start-up depends more on entrepreneurial talent
- Success is assured financially
Entrepreneurship as a career option:
Many people are not aware that having their own business or independent work can be a choice.
A career is one of the most important aspects of life. It is a line of work that a person takes for life. A person can earn money to live a happy life in two ways:
1. Self-Employment
2. Wage-Employment
A teacher is working for a school or an institute or a tution classes, is a wage employed person. If he/she has his own classes setup, he/she is an entrepreneur.
Every entrepreneur goes through a simple career process. This process includes these basic steps: –
ENTER
When an entrepreneur is starting, they are just entering the market to do business.
For example, Vermani 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, Vermani store survives the competition and does well. He also expands 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, Vermani has opened a chain of four more grocery stores in the same city. In the next two years, he plans to expand to tow other cities.
Key Terms :
Entrepreneur: The term entrepreneur is a French word, and is derived from the French word “enterprendre”. It means “to undertake”. It is commonly used to describe an individual who organises and operates a business or businesses, taking on financial risk to do so. Entrepreneurs are 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: Entrepreneurship is the creation or extraction of economic value in ways that generally entail beyond the minimal amount of risk (assumed by a traditional business), and potentially involving values besides simply economic ones.
Entrepreneurial Skills: Entrepreneurial skills can encompass a broad range of various skill sets like : technical skills, leadership and business management skills and creative thinking. Because entrepreneurial skills can be applied to many different job roles and industries, developing your entrepreneurial skills: can mean developing several types of skill sets.