Class 11 Employability Skills Chapter 4 Entrepreneurship Skills

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Class 11 Employability Skills Chapter 4 Entrepreneurship Skills

Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. AHSEC Class 11 Elective Employability Skills Textbook Solutions are part of All Subject Solutions. Here we have given AHSEC Class 11 Elective Employability Textual Question Answer in English for All Chapters, You can practice these here.

Entrepreneurship Skills

Chapter: 4

SESSION 1: INTRODUCTION TO ENTREPRENEURSHIP

Check Your Progress

A. State whether the following statements are True or False:

(a) An entrepreneur runs a business to only make profits.

Ans: False.

(b) Entrepreneurship and business are exactly the same thing.

Ans: False.

(c) In service business activity, the services are intangible and cannot be felt or seen.

Ans: True.

(d) In manufacturing business activity, an entrepreneur makes the product.

Ans: True.

B. Subjective Question:

(a) Who is an entrepreneur? Give an example.

Ans: An entrepreneur is a person who tries to meet needs of a customer through new ideas or ways of doing business and makes profit in return.

For example, Pratap, the vegetable seller, who started a home-delivery service for fresh vegetables, is an entrepreneur.

(b) What are the three types of business activities?

Ans: The three different types of business activities are:

(i) Manufacturing Business.

(ii) Trading Business.

(iii) Services Business.

(c) What is the difference between manufacturing and trading business activities?

Ans: Manufacturing Business: A manufacturing business is one that converts raw material(s) into finished product(s) to meet the demands of the customer. In this form of business, the finished product can be directly sold to the customer.

Trading Business: A trading business does not manufacture a good or product but only facilitates the act of bringing the finished goods from the manufacturing unit to the buyer or customer (who is ready to pay for the produced good).

SESSION 2: VALUES OF AN ENTREPRENEUR

Check Your Progress

A. Subjective questions:

1. What values does the entrepreneur have?

(a) Rohit runs a special hair salon in Bidar. Young boys come to him and ask him to give a Justin Bieber haircut. Rohit doesn’t know about this haircut so he searches on the Internet and finds the pictures. What value does Rohit have? ______________

Ans: Curiosity and Willingness to Learn.

(b) Shalu makes special Indian snacks and goes door to-door in her town to sell it to different people. Only 1 in 10 people to whom she goes, buys her products. What value does Shalu have?

Ans: Perseverance and Patience.

2. What values does a successful entrepreneur have? Write any three values, with examples.

Ans: Here are some values which make an entrepreneur successful:

(i) Confidence: Confidence means to believe in one’s self and one’s approach. Being confident helps an entrepreneur to take the first step of starting a new business and then trying new things to grow the business.

Example: Ratan Tata believed in his dream of creating affordable cars for the common man (Tata Nano).

(ii) Independence: Independence means one’s ability to work alone and have the confidence to make one’s own decisions.

Example: Elon Musk developed electric vehicles (Tesla) and reusable rockets (SpaceX).

(iii) Perseverance: Perseverance means not to give up and keep going even when a difficult situation comes up.

Example: Colonel Sanders faced many rejections before starting the successful KFC chain.

3. Write the meaning of the following values with examples:

(a) Independence.

Ans: Independence means one’s ability to work alone and have the confidence to make one’s own decisions. The responsibility of deciding what work needs to be done and how it can be done is made by the entrepreneur. An entrepreneur is her or his own boss and has to be self-motivated to set goals and follow them.

(b) Confidence.

Ans: Confidence means to believe in one’s self and one’s approach. Being confident helps an entrepreneur to take the first step of starting a new business and then trying new things to grow the business. It pushes the entrepreneur to keep going even if there are failures.

4. Identify three entrepreneurs from your area. Write down the actions that make them successful and what values they have.

Ans: Students do it yourself.

SESSION 3: ATTITUDE OF AN ENTREPRENEUR

Check Your Progress

A. State whether the following statements are True or False.

1. An entrepreneur reports to the boss or a manager.

Ans: False.

2. An employee has to adapt to the outside market environment while doing the job.

Ans: False.

3. An entrepreneur has to always think about what the customer wants.

Ans: True.

4. An employee makes all the decisions by himself or herself.

Ans: False.

B. Subjective Questions:

1. Define the meaning of attitude. Give two examples of attitude of an entrepreneur.

Ans: The meaning of attitude is one’s tendency to respond in a certain way towards a certain idea, object, person, or situation. An entrepreneur’s attitude affects their choice of action while running the business.

Examples:

(i) Belief in Self: When an entrepreneur starts a new business, there are a few people who might support them. There is no manager or boss who would encourage or support when things get difficult. Therefore, an entrepreneur believes in self so that they can confidently face any challenge and become successful.

(ii) Customer Focus: An entrepreneur is responsible for ensuring that the business they are doing adds value to the customer. The responsibility of delivering good quality products or services to the customer is the most important part of entrepreneurship.

2. Write the key differences in attitudes between entrepreneurs and employees. Describe with examples. 

Ans: 

Entrepreneurs	Employees
(i) When an entrepreneur starts a new business, there are a few people who might support them. There is no manager or boss who would encourage or support when things get difficult. Therefore, an entrepreneur believes in self so that they can confidently face any challenge and become successful.	(i) An employee usually is managed by someone, who helps him or her, and supports him or her when he or she starts the job. He or she is also given training and support to understand how to do the work, and what to do when things get difficult.
(ii) An entrepreneur is responsible for ensuring that the business they are doing adds value to the customer. The responsibility of delivering good quality products or services to the customer is the most important part of entrepreneurship.	(ii) An employee delivers on the goals set by the company. Not all employees of a company work towards serving the needs of the customers directly. They may not have any direct responsibility towards the customer.
(iii) Entrepreneurs decide the kind of work they will do and how they will do it. They themselves make decisions and work towards completing the work.	(iii) Usually a manager or the boss makes the decisions for employees. Employees decide how they want to do their work, but what they are doing and in how much time they should complete it, is decided by a senior.
(iv) Entrepreneurs usually work in an unknown environment, where they do not know what will happen after they start something new. Therefore, it is important for an entrepreneur to remain positive and believe that the market environment can change.	(iv) An employee’s job is focussed internally and is not usually affected by the outside environment. Therefore, the belief in change is not necessary for an employee to get the work done.

SESSION 4: THINKING LIKE AN ENTREPRENEUR

Check Your Progress

A. Subjective Questions:

1. What are the key problems an entrepreneur may face while running a business?

Ans: An entrepreneur may face many problems or challenges. It is their ability to solve them that makes them so special. Below is the list of some problems an entrepreneur may face while running a business. An entrepreneur often thinks about these questions while starting and running a business.

(i) Idea: What should my business idea be? How do I know that this idea will work?

(ii) Money: How much money should be raised to start a business?

(iii) Acquiring material: From where to get the material and at what cost?

(iv) Manufacturing: How to manufacture (if it is a product business)?

(v) Pricing: At what price should I sell the product so that I make enough profits? How do I know what price the customer is willing to pay?

(vi) Marketing and advertising: How would I tell my customers about business which will attract them to come to me?

(vi) Selling: How would the customer buy from me? Will the customer come to me or will I go to the customer?

(viii) Accounting: How do I keep a track of the money I am spending and making? How do I know how much profit I am making?

(ix) Standing out: How can I be better than what is already available in the market? How do I add value to my customer?

(x) Growing business: How can I grow my business and continue to get better?

2. What are different ways in which an entrepreneur can think to solve problems?

Ans: Listed below are three ways most entrepreneurs think when they are trying to solve a problem:

(i) Creativity: Creativity means to come up with ideas that others have not thought of before. Creativity does not mean being artistic or being good at drawing. An entrepreneur has to believe that they can come up with new ideas to solve a problem. In the case of Kiran, she solved the problem of rotating a handcart by thinking of a new idea.

(ii) Innovation: Innovation means to think of new ideas and come up with ways to make it work in real life. The difference between creativity and innovation is that while creativity is about just coming up with an idea, innovation is about also coming up with ways to make idea into reality. Kiran’s idea was not just in her head. She made it work by installing the break system in her father’s cart.

(iii) Critical Thinking: Critical thinking means to understand a situation or problem by asking oneself questions (why, what, when, how) and researching about reasons for the situation or a problem. An entrepreneur has to always think critically when faced with a problem. They just cannot get worried about the problem and not do anything about it. In the case of Kiran, she saw her father struggling with a problem, and found a solution for the same.

SESSION 5: COMING UP WITH A BUSINESS IDEA

Check Your Progress

A. Subjective Questions:

1. Define the meaning of a business idea.

Ans: A business idea is a solution that an entrepreneur thinks of, to serve the customer. An idea determines what business activity an entrepreneur would take up to make financial gains. An idea can be product-service based or a hybrid model.

2. What are the three principles of idea creation?

Ans: There are a few important principles to keep in mind while coming up with an idea:

(i) Customer Need: An idea should serve the customer’s need or demand. A business idea can come from an existing demand in the market or through a desire to make what is available in the market, better.

(ii) Entrepreneur’s Own Interest or Talent: An entrepreneur often works with an idea that she or he is passionate about. Knowing one’s interest or talent is in fact important for an entrepreneur as it leads to self-confidence and even others believing and trusting in their capabilities.

(iii) Innovative: Innovative means new methods or original ideas. A business can be innovative in its idea or the way it is done.

3. What are different ways of coming up with an idea? State different ways with an example.

Ans: Most ideas come from either the needs of customers or inspiration from what others are doing. There are many ways in which one can come up with innovative, yet practical ideas for a business.

(i) Location-based Ideas: An entrepreneur can come up with ideas to serve the needs of customers at a specific location. For example, in a small village in Rajasthan, where there is limited supply of pure drinking water, an entrepreneur can set up a business selling water.

(ii) Seasonal Ideas: During summers, people want to drink cold, healthy drinks in big cities, while in winters, they like warm beverages. An entrepreneur can come up with ideas based on the season.

(iii) Events-based Ideas: Another way to come-up with a business idea is to think of ways to serve the people at events. For example, there are different businesses that come up during the wedding season, like card-designers and printers, mehendi (henna) designers, event managers, decorators, etc.

(iv) Interest-driven Ideas: An entrepreneur can come-up with business ideas based on self-interest. For example, someone who is good at dance and likes dancing, can start a dance-training institute for serious dancers and also for people who want to slim down by doing fun exercises.

(v) Vocation-driven Ideas: Many people start a business based on what they are interested in and what they have studied. A farmer, who knows everything about farming, from where to get the seeds, to how to plough the ground can start a Farmer Training Institute for those who want to learn about farming, or can guide city dwellers how to grow vegetables on terraces and balconies.

4. Write any five business ideas that you would want to try out? Why have you chosen these ideas?

Ans: Students do it yourself.

SESSION 6: UNDERSTANDING THE MARKET

Check Your Progress

A. Subjective Questions:

1. What are the two ways of understanding the market?

Ans: An entrepreneur can look for opportunity to check if their idea will work in the market and also find ways to make it work as shown in Figure 4.8.

The two ways of understanding the market are:

(i) Understanding customer needs and preferences (Customer Survey).

(ii) Understanding competitive businesses (Competition Survey).

2. What are the different aspects of understanding customer needs and preferences?

Ans: The above mentioned needs about the specific product or service can be found out keeping in mind the following factors:

(a) Quality and Quantity: An entrepreneur must understand a customer’s expectation in terms of the quality. For example, an entrepreneur who makes and sells biscuits needs to understand which flavours the customers like, the level of sweetness that customers prefer, etc.

(b) Price: An entrepreneur must understand at what price the customer will be willing to buy a product of a particular quality. Knowing this helps the entrepreneur to decide their profit margin, as well as think of methods to lower the cost of making the product without compromising on quality.

(c) Location: Location means the place from where customers usually buy the product or service. For example, an entrepreneur who wants to sell beautiful handmade jewellery may think of setting up a shop near a saree or women’s clothing store. The products may not sell if the shop is near a men’s clothing store.

(d) Time: Time is also an important factor in understanding customer needs. An entrepreneur should understand in which season or at what time of the day, week or month, would a customer use the product or service. The production and advertisements can be planned accordingly.

(e) Frequency: Frequency means the number of times a customer may buy the product or service. Some products are bought again and again, while others are bought once in a few years. For products like food items, the same customer may buy a samosa every day from the same shop, but for a product like a battery operated fan, a customer will repurchase only in 5–6 years.

3. How can an entrepreneur find out about customer needs?

Ans: Customer survey is an exercise that entrepreneurs do to understand whether there is a market for what they have to offer. Through this survey, entrepreneurs try to know whether they are meeting customer needs and also understand what their preferences are. Customer survey is one of the most effective ways to find out what customers want. It involves talking directly to customers and asking them questions.

4. What are the different aspects of understanding competition?

Ans: The key aspects to keep in mind while understanding your competitors are:

(a) Positioning: One should try and understand how the competitors position their business. This means, how the enterprise wants its customers to see them. One can be seen as a high-quality expensive brand, or they can be seen as a low-cost, affordable brand.

(b) Pricing: Pricing means an understanding of the price at which different competitors sell their product or service. Knowledge of competitor pricing helps the entrepreneur to decide the price and quality of their own products or service.

(c) Offers: The next information that an entrepreneur can find out is about the kind of offers that the competitors give to their customers, and why does a customer go to them again and again?

(d) Customer Relations: Another important information that must be understood at this stage is how a business stays in touch with its customers and maintains a relationship with them, so that they keep coming back, giving repeat business.

5. How can an entrepreneur find out about competition?

Ans: In order to figure out what is available in the market and what the competitors are doing, an entrepreneur should study all possible businesses. In a customer survey, one directly goes and talks to the customer, but in a competition survey, an entrepreneur must observe and ask others these questions.

SESSION 7: BUSINESS PLANNING

Check Your Progress

A. Subjective Questions:

1. What is the meaning of business planning?

Ans: A business plan is a detailed plan of what an entrepreneur wants to achieve through the business and how it will be achieved.

2. Why is business planning important?

Ans: A business plan is important for an entrepreneur. Some of the reasons why a business plan should be prepared are as follows:

(a) Estimating the money required to be spent: Once the entrepreneur knows what product to sell and whom to sell it to, the next step is to estimate how much money will be required to start the business. Without an estimate of how much money is required, an entrepreneur might invest too much money, or may start the business without enough money to run the business.

(b) Estimating quantity of material required: Knowing how much material is required helps an entrepreneur decide the cost of making each product or cost of delivering the service.

(c) Standing out: A business plan also makes an entrepreneur plan how they can make the customer see the business as standing out uniquely when compared with competitors.

(d) Setting goals: Another important reason of having a plan is to set ambitious, yet realistic goals. These goals motivate the entrepreneur to work hard.

3. What are the important parts of a business plan?

Ans: While planning for a business, an entrepreneur has to think about different factors. Below is the sample template which can be used to plan for a small business.

(i) Customer Group: Who is your customer? Which customer need are you trying to solve?

(ii) Product/Service: What product or service are you selling?

(iii) Material Required and Cost: What material do you need? What is the cost of the material?

(iv) Selling Method and Location: How will the customer buy from you? (Door-to-door, orders, stall, online). Where will you sell it?

(v) Price: At what price will you sell it? Why this price?

(vi) Business Activities and Team: What are the different business activities involved? What is the role of each person in your team?

(vii) Unique Selling Proposition 1: Why will customers buy from you and not others?

(viii) Unique Selling Proposition 2: How are you different from other businesses who sell the same product or service?

(ix) Customer Goal: How many customers will you sell to, each day?

(x) Profit Goal: What will be your profit by the end of six months/year? How soon will you break even?

4. How can an entrepreneur improve and grow a business? State the principles.

Ans: After starting the business, an entrepreneur has to think about how they can continue to improve and grow by creating value for the customer.

There are mainly three principles which can be followed to grow a business:

(a) Quality: An entrepreneur can improve the business by improving the quality of the product or service which is offered to the customer. This will help the business to stand out in the market and as a result, will justify the entrepreneur charging a higher price. More inflow of money will help the business to grow. For example, for a business of candles, an entrepreneur can improve on the quality by making scented candles or candles in different colours or sizes.

(b) Scaling Up: Scaling up means growing the business by attracting more customers. There are many ways a business can reach out to more and more customers. One such way is to go to a different area where you will find new customers. For example, selling candles in different housing societies where a lot of people live instead of market where there is competition.

(c) Adding Substitutes: Another way of growing a business is by giving offers to customers. Substitutes mean products and services which are similar to what is already being sold. For example, selling candle stands along with candles.