Assignment Code: BCOS – 185/TMA/2021-22

Course Code: BCOS-185

Assignment Name: Entrepreneurship

Year: 2021-2022

Verification Status: Verified by Professor

Marks = 100

SECTION A

Q1) “There are multiple theories which form the basis of conceptual domain of entrepreneurship.” Enumerate. (10)

Ans) There are numerous ideas that serve as the foundation for the conceptual realm of entrepreneurship. Economics, psychology, sociology, anthropology, and management all have roots in these theories.

The following are some of the most popular theories:

Psychological Entrepreneurship Theory

Individual personality qualities are the emphasis of this idea. People with specific characteristics, according to proponents of this notion, are more likely to become entrepreneurs. The desire for achievement and control leads to a proclivity for creativity, risk-taking, and acceptance of early experimentation failures. Traits crucial for entrepreneurial capability, according to trait theorists, are inborn. Personality traits are characteristics that an individual exhibits in the majority of situations. Entrepreneurs are usually perceptive of opportunities, somewhat inventive, and eager to master managerial skills quickly.

The film Locus of Control investigates people's perceptions on the reasons for life's events. The notion of locus of control orientation and various views of entrepreneurs about the reasons for their success are also used to describe entrepreneurial belief about the causes for success. The success could be attributed to personal efforts (internal locus of control orientation) or external assistance (external locus of control orientation). Business owners, on the other hand, have a little stronger internal locus of control than the general population. Individuals aspire to reach greater success. McClelland. The need to accomplish is emphasised in achievement theory as the underlying motive for ventures, and there is evidence of a link between achievement need and career decisions that favour entrepreneurship.

Many experts believe in the psychological theory of entrepreneurship, which emphasises personal characteristics. They believe that entrepreneurs arise as a result of these characteristics. The following are three of the most popular entrepreneurship psychological theories:

1. According to David McClelland's thesis, entrepreneurs are directed and motivated by three essential needs: aliliation, power, and achievement. These three requirements are the most powerful motivators and influences.

2. People are guided by their perceived locus of control amongst individuals, according to Rotter's locus of control theory. Internal locus of control can be developed by internal support, or external locus of control can be created through external support.

3. Action regulation theory was developed by Michael Frese. Entrepreneurship, according to this view, is linked to planning. A person who has a planning mindset or behaviour is more likely to succeed. According to this view, cognitive capacity is extremely important for entrepreneurs.

Economic Entrepreneurship Theory

Economic theories of entrepreneurship can be divided into three different time periods:

a) Classical Theory of Entrepreneurship: Classical theory proponents felt that the job of the entrepreneur was limited to the production and distribution of market commodities in a competitive market. There are two classic ideas of entrepreneurship worth mentioning:

i) Ricard Cartillon Theory: Ricard Cantillon was an economist who was both Irish and French. In his late seventeenth and early eighteenth-century work, he is credited with coining the term "entrepreneur." He argued that an entrepreneur is a risk taker who manages all transactions. Entrepreneurs, he believed, are not innovators since they cannot influence market demand and supply trends. They are only able to detect changes and are sophisticated enough to maximise revenues while also being willing to accept risks.

ii) Innovation Theory by Schumpeter: One of the most influential economic theories of entrepreneurship is innovation theory. Joseph Schumpeter was the one who proposed this notion.

b) Neo-classical Theory of Entrepreneurship: The importance of exchange in an economic interaction, together with diminishing marginal value, according to Neo Classical theorists, gives opportunities for entrepreneurial roles.

c) Austrian Market Process Theory of Entrepreneurship: This theory focuses on the activities of entrepreneurs based on their comprehension of and knowledge of the economy. Entrepreneurs, according to proponents of this notion, respond to changes in the dynamic market in order to profit. Their capacity to grasp market dynamics determines how they respond to changing market conditions. To make money, they do product research and development and introduce technological advancements. Profit-seeking entrepreneurs are continually promoting economic structure evolution.

Opportunity-Based Entrepreneurship Theory

Researchers can use the opportunity-based hypothesis to explain how people become entrepreneurs and what influences them. According to Peter Druker, entrepreneurs are more inclined to embrace chances resulting from changes in the environment that have a positive economic impact. Entrepreneurs are constantly on the lookout for new opportunities and challenges that can be solved with a new or better solution than the current one. Following the identification of any opportunity, the entrepreneur develops a solution based on available resources and talents. Access to relevant resources, either directly or through business partners, is critical to completing key business tasks that are critical to achieving entrepreneurial business goals in the context of opportunities discovered and answers devised by the entrepreneur. Operational procedures, channel requirements, or any other particular relational activities envisioned by the entrepreneur to differentiate products or services for long-term growth and performance could be significant activities.

Sociological Entrepreneurship Theory

There are a number of key social elements that contribute to the emergence of entrepreneurial chances. During various stages of the entrepreneurial lifecycle, social networks play an important role as a trigger as well as a facilitator. The overarching concept is to foster social interactions that foster trust. The entrepreneur will have a better chance of succeeding if he or she can cultivate and sustain trust with the target audience for their business. Another component that builds trust is perceived non-opportunism, as the audience comes to comprehend the motivation behind acts over time. With more and more experience by users of goods or services, this knowledge grows even stronger. For instance, Startup India, Make-in-India, and so on. A lot of money is being invested by start-up investors in search of good ideas for funding. In India, many states and significant corporations have tried to establish incubation and accelerator centres.

Anthropological Entrepreneurship Theory

Anthropologists emphasise the importance of culture, such as a community's customs, origins, and beliefs. This idea can explain why particular populations are more inclined to business, choose a specific type of professional vocation, and so on. We have observed in India that various geographic areas with specific cultures have people selecting for careers in the defence forces, starting businesses, or pursuing a career in commerce, or pursuing art, music, and so on. The cultural entrepreneurial model is the focus. Culture is shaped by a variety of factors, including socioeconomic, political, and environmental factors, all of which influence attitudes and, as a result, entrepreneurial intentions.

Resource-Based Entrepreneurship Theory

The resource-based approach emphasises the importance of many sorts of resources in the entrepreneurial journey's success. Entrepreneurs with the ability to mobilise sufficient resources can seize opportunities and solve issues. The amount of resources required is determined by the entrepreneur's business plan. Asset-heavy businesses may require greater financial resources, whereas asset-light businesses may require stronger alliances or human resources. An entrepreneur in the reverse logistics area, for example, who partners with ecommerce sites like amazon.in or flipkart.com and concentrates on the disposal of returned or rejected items, may require extra financial resources. Furthermore, if it focuses on returned goods sent back to ecommerce platform merchants, it may require operational excellence or efficient services. However, there is ample data to suggest that access to financial resources is favourably connected with the rise of entrepreneurs.

Q2) What is Idea Generation? Discuss the different techniques of Idea Generation. (10)

Ans) Idea generation is described as the process of creating, developing an abstract concrete or visual ideas and anyone can participate in generating new ideas.

Techniques of Idea Generation

The different techniques of Idea Generation are as follows:

Brainstorming:

Brainstorming is a creative problem-solving strategy as well as an informal method of generating business ideas. It encourages people to come up with ideas and thoughts that may appear a little strange at first. For the conversion of a wild notion into a viable business opportunity, sustained serious work is necessary. Some of these concepts can be developed into unique, innovative solutions to problems, while others can create new ones. Because the goal of brainstorming is to generate as many ideas as possible, there is no criticism, reward, or judgement during brainstorming sessions. Brainstorming should be done with the assistance of specialists for better results.

Brain Writing:

Brain writing is a method of generating ideas in which everyone participates in a group activity. It's a form of brainstorming on paper. Unlike brainstorming, which is verbal and where ideas are developed on the spot, brain writing allows participants to generate ideas over a longer period of time. Brain writing is a quiet technique in which a group of people (typically six) are asked to write at least three ideas on special forms or cards, which are then distributed to each participant for a pre-determined period of time.

Mind Mapping:

Mind maps are a technique for efficiently generating ideas through association. It is a powerful graphical technique for converting whatever is running through people's heads into a visual image. Mind-mapping is the process of writing down a basic concept and then coming up with fresh and related ideas that branch out from it. These branches form a nodal structure that is connected. When it comes to creative problem solving, mind maps can indicate how different bits of information or ideas are linked. It aids in the unlocking of the brain's potential.

Heuristic Ideation Technique:

HIT is a technique for generating new product ideas that involves experimenting with different product aspects and combining them in order to come up with a new product idea. New product concepts are created utilising this strategy by combining elements from previously released products.

SCAMPER:

SCAMPER is an activity-based thought process that aids in the generation of a wide range of ideas.

SCAMPER is an acronym which stands for:

1. S-Substitute;

2. C-Combine;

3. A-Adapt;

4. M-Modify;

5. P-Put to another use;

6. E-Eliminate;

7. R-Rearrange.

Substitute refers to the idea of replacing portions of a product or its production with something else. Combine refers to the idea of integrating features or methods from different products to create an entirely new one. Adapting different measures to the situation is what adapting means. Modify refers to changing a product's features, physical qualities, size, or price. The term "put to another use" refers to repurposing an existing product to solve a different problem or as a by-product. Eliminate denotes the removal of non-essential components, as well as a reduction in time, effort, and expense. Rearranging the components or utilising a different order is referred to as rearrangement.

Problem Inventory Analysis

Though problem inventory analysis appears to be similar to the focus group method, it differs in that it not only develops ideas but also identifies the challenges that the product faces. There are two steps to the procedure: One is to provide a list of specific difficulties in a broad product category to consumers. Two, identify and describe the goods in the category that are affected by the issues. This strategy has been found to be more effective because it is easier to link existing items to a set of proposed problems and then come up with a new product idea.

Free Association

A way of producing new ideas through a chain or cycle of word association is known as free association. The procedure is writing down one term related to the problem, then another, and so on. Free association is based on a mental ‘stream of consciousness' and network of associations of two types:

1. The first is serial association, which begins with a trigger and continues with you recording the flow of thoughts that come to mind, each one prompting the next until you arrive at a potentially helpful one.

2. The second method (which is similar to traditional brainstorming) asks you to produce additional associations to the original trigger so that you can 'dive' into a specific area of associations.

Q3)What is a Start-up? Enumerate the reasons for failure of Start-ups and the measures to overcome them. (10)

Ans) "A start-up is a transitory company founded to hunt for a repeatable and scalable business model," according to Blank and Dorf. When a start-up discovers an acceptable, desirable ideal business model, it moves from the exploratory to the execution phase and ceases to be a start-up. This transaction is unaffected by the age of the company, and so necessitates a start-up classification. It's still regarded a start-up if an organisation has been around for more than seven years and is still hunting for a viable business strategy."

A start-up can be characterised as a creative company that creates or sells new products, processes, or services. Aside from innovative products and services, start-ups are known for having a sustainable business plan, rapid growth, and a young stage of development.

Reasons for Failure of Start-ups

Lack of Financial Resources: Financing is crucial for start-ups, and obtaining sufficient funds is always a challenge. Start-ups are frequently regarded as high-risk lending sectors, and banks are generally hesitant to lend to them. The majority of businesses begin with their own finances, but as the business grows, more capital is required. Scaling a firm necessitates timely capital input. For a start-up to succeed, proper cash management is essential.

Insufficient Revenue Creation: As a firm grows, many start-ups fail owing to poor revenue generation. As operations expand, expenses rise in tandem with lower sales, requiring companies to focus on the fundraising component and weakening their focus on the core of the firm. As a result, revenue generating is crucial. The challenge is not only to raise sufficient funds, but also to expand and maintain growth.

Lack of Skilled Personnel: Most start-ups begin with a group of trusted people who have complementary skill sets. Each member is usually trained in a specific area of operation. However, when the company grows, the team may find it difficult to efficiently manage operations. As a result, it's critical to hire the appropriate individuals; failing to do so can sometimes spell disaster for a business.

Ineffective Marketing Strategy: Many start-ups fail as a result of a poor marketing strategy. Because of the uniqueness of the product, the environment for a start-up is frequently more tough than for an established company. As a result, the start-up must start from the ground up.

Lack of Mentorship: One of the most serious issues in the Indian start-up ecosystem is a lack of competent guidance and mentorship. Most start-ups have fantastic ideas and/or products, but lack the necessary industry, business, and market knowledge to bring them to market. It is a well-known fact that a fantastic concept can only succeed if it is implemented quickly. The most significant difficulty for start-ups is a lack of proper mentoring and guidance.

Inadequate Planning: Many new firms fail during the first year due to insufficient planning. Although the start-ups may have creative ideas, they are doomed to fail if their business plans lack perspective. Or, in order to succeed, they must constantly redesign them.

Established enterprises that dominate the market and make it difficult for new entrants to succeed face severe competition from start-ups. Furthermore, there is no scarcity of enterprises with novel concepts that are launched on a regular basis. If a start-up cannot differentiate itself from the competition over an extended period of time, it will be gobbled up by the competition.

Measures to Overcome the Challenges faced by Start-ups

Providing Infrastructure Facility: Providing workspace is one way to help start-ups. These can involve offering office space as well as certain basic amenities like computers, printers, Wi-Fi, hardware, and software that start-ups require for product development, lab facilities, and other purposes. Incubators give budding firms with subsidised physical space in exchange for monthly rent during the early stages of their operations.

Financial Assistance: The most difficult aspect of launching a business is getting funds. The Indian government has implemented a number of initiatives and laws to make financing more available to start-ups, including the Credit Guarantee Scheme and Stand-Up Loans. Family members, friends, loans, grants, angel investors, venture capitalists, crowd funding, and other sources of money are all available to start-ups.

Mentoring Support: New businesses, particularly those founded by the first generation of entrepreneurs, may lack the critical knowledge or connections to succeed. As a result, entrepreneurs may seek guidance from mentors who may help with practical challenges and provide support. Mentors can help start-ups with little or no experience or understanding by drawing on their industry expertise and specialised skills. Mentors may also provide start-ups with one-on-one assistance.

Promoting Research and Development: Research and development are the most difficult tasks in the early phases of a business. Start-ups must invest in research and development, especially if they are in the technology industry. Several government programmes, such as the Promoting Innovations in Individuals, Start-ups, and MSMEs (PRISM) scheme, the Atal Innovation Mission, the establishment of innovation centres and research parks, and others, are designed to encourage and assist entrepreneurs in their research and development activities.

Providing Business Assistance Services: Startup support groups have a pool of service providers with expertise in HR, marketing, accounting, and legal areas that may provide valuable advice and services to new businesses. These groups also assist start-ups in collaborating with other ecosystem partners. The government has built a platform named 'Start-Up India Hub' to encourage start-ups to connect with ecosystem partners. On a single platform, the portal allows start-ups to connect with government agencies, investors, banks, incubators, accelerators, legal partners, consultants, universities, and R&D organisations.

Regulatory Assistance: Many entrepreneurs believe that new businesses confront numerous legal and regulatory challenges as they seek to establish themselves. These roadblocks eat up time and money that could be better spent on innovation. As a result, the government has loosened a number of regulations in order to reduce the regulatory burden on entrepreneurs. Self-certification is beneficial to start-ups. They can have their start-up formally registered without paying any fees by filling out an online form. They are excluded from the prior experience/turnover criteria that is necessary for government procurement, hence they are eligible to bid for government tenders. They are free from paying income tax for three years if they obtain certification from the Inter-Ministerial Board. They're also not subject to capital gains taxes.

Intellectual Property Rights Protection: We frequently hear that one corporation has claimed the right to an innovation that belongs to another. A comparable product was launched by another firm before it was patented, whereas one company developed a unique technique. As a result, it is critical to safeguard intellectual property. Start-Up Intellectual Property Protection initiatives make it easier for inventive start-ups to file patents, trademarks, and designs, as well as defend them.

Global Partnerships: It's challenging for start-ups to break into worldwide markets and keep up with the competition. The Indian start-up ecosystem has become more connected to the global start-up ecosystem because to the government's Start-up India initiative. G2G collaboration, participation in international forums, and hosting global events have all contributed to the achievement of these objectives. These characteristics have made international expansion easier for entrepreneurs.

Q4) What are non-financial resources? Discuss the different types of non-financial resources required for setting up and growth of business enterprises. (10)

Ans) A non-financial resource is an asset that isn't traded on the stock exchange and is valued based on its physical features rather than contractual rights. Tangible assets, such as land, buildings, motor vehicles, and equipment, as well as intangible assets, such as patents, goodwill, and intellectual property, are examples of non-financial assets.

Non-financial resources, on the other hand, may be in short supply. Its accessibility can also be somewhat costly at times. Many new business owners may not be able to afford it. Although access to these non-financial resources may be simpler in some Indian states, getting appropriate non-financial resources in small cities and less developed states remains a difficulty.

Human Resources

In a commercial organisation, human resources are the only active resources. The rest of the resources, such as machines, money, raw materials, and so on, are all passive. These resources are unable to function on their own. The organization's human resources put them to use. A company should focus on the following in addition to its personnel in order to run a successful business:

Vendors: Vendors are critical to any business's success. They are people or businesses who sell your market items to clients in order to profit from the manufacturer.

Suppliers, on the other hand, are persons or enterprises that offer businesses with the items and services they need to run their operations.

Bankers: Commercial banks play a critical role in the establishment, survival, and expansion of a firm. They play a critical role in assisting businesses with their working capital needs. Working capital is the lifeblood of a company.

Customers: Satisfied customers are critical to the company's success. As a businessperson, you must establish a positive reputation in the marketplace. The key to attracting valuable investors, partners, and workers is to have a good reputation. Customers' favourable feedback is what gives you a good reputation, and in order to get it, you must work hard to generate satisfied and delighted customers.

Mentors

Co-founder: A co-founder is someone who joins the founder in starting the business. Many times, a fledgling entrepreneur seeks co-founders for their new business venture since he or she may lack the necessary finances or abilities to run the business smoothly. These co-founders supply the company with both financial and non-financial resources. They are corporate investors who have a say in how the company is run.

Expert Advice: An expert is a person who has appropriate industry experience and knowledge. Corporate lawyers, chartered accountants, investment bankers, insurance advisors, and other professionals are among them. They are also extremely significant in a corporate setting.

Mentoring Resources

Mentors are just as crucial as a company's financial resources. Mentors are crucial not just during the start-up phase of a firm, but also at various stages of its development. During the start-up or operation of a business, the entrepreneur will require some type of mentorship assistance.

Experts from the industry or professionals serve as start-up mentors. They are experts in a variety of fields, including technical expertise, marketing, operations, human resource management, leadership, and investment decision-making. They have a lot of business expertise and knowledge. Successful entrepreneurs are occasionally willing to mentor aspiring entrepreneurs. Entrepreneurs can receive coaching from venture capitalists, angel investors, and other business investors.

Mentors, in fact, play an important role in the establishment and success of businesses. They are a vital component of every company's assets. Mentors assist in validating market business offerings. They can also connect entrepreneurs with potential partners. Mentors will provide you with the experience that you have gained through years of research and hard work.

Mentors, in fact, play an important role in the establishment and success of businesses. They are a vital component of every company's assets. Mentors assist in validating market business offerings. They can also connect entrepreneurs with potential partners. Mentors will provide you with the experience that you have gained through years of research and hard work.

Q5) What do you mean by Family Business? Discuss the importance of family business in India and the major challenges faced them. (10)

Ans) A family business is one in which two or more family members are involved, and the family retains substantial ownership and control. Many generations of a family affect decision-making in this type of organisation; by family members, we mean those who are linked by blood, marriage, or adoption.

These individuals should be able to influence the company's vision and willing to utilise that power to attain a higher aim. It is critical to note that a family business does not necessarily imply an owner-manager entrepreneurial business organisation. A multigenerational dimension is required for a family business to be successful. The organisation has a particular dynamic as a result of this multigenerational component. In India, family companies are the most common type of organisation. They range in size from tiny businesses to major multinational corporations, and they operate in a variety of industries and sectors, including agriculture, manufacturing, and services.

Importance of Family Business in India

Family companies contribute significantly to any economy, whether it is developing, developing, or developed. In most emerging and developed countries, family companies account for 60-70 percent of GDP (economic size).

Part in Economic Growth: Family companies play an important role in the economic development of countries all over the world. Family businesses can be found in a variety of industries, including retail, small industrial, and service. They also make a significant contribution to the country's GDP. Bang, Ray, and Ramachandran did a study on Indian family businesses. The research looked at publicly traded companies from 1990 to 2015. Ninety-one percent of the listed companies are family businesses, which contribute significantly to the Indian economy's growth. It was discovered that the listed family businesses contributed 26% of the GDP.

Family business organisations have dominated the Indian manufacturing sector since the country's independence. Large-scale manufacturing enterprises in the organised sector are now controlled by Indian families like the Tata, Birla, and Ambani, who have pushed numerous sectors. Steel, commercial vehicles, passenger automobiles, light-duty vehicles, power, chemicals, hotels, tea, coffee, software, and other sectors are all part of the Tata Group.

The role of family businesses in the development of entrepreneurship is to instil the spirit of entrepreneurship and to contribute to its growth. In a country like India, it paves the door for numerous families to start and grow new businesses.

Role in Social Development: Family companies play an important role in a country's social development. Big family enterprises are responsible for the development of many large hospitals, educational institutions, and basic infrastructure such as roads. Tatas, for example, are renowned for their contributions to society's socioeconomic progress. They have laid the foundation for India's corporate social responsibility.

Small family firms concentrate their efforts and resources on developing and managing a small number of segments with specific products and services. Relationship management with partners, suppliers, employees, channel partners, and customers is usually a key priority for them. As a result, stakeholder interactions are more effective, issues are resolved faster, and clients are better served, all of which contribute to increased stickiness. This can be a competitive advantage for small enterprises. They work flexible hours, and because decision-making power is limited to one or two key members, choices are made quickly.

Major Challenges of Family Business in India

Many firms in India that are now public companies started out as family businesses. With the passage of time, some family companies have developed significantly. However, things aren't always as they seem. While having a family business has many advantages, it also has some drawbacks.

Competitive Advantage through Innovation: Today's business environment is extremely competitive. In order to survive and expand in this competitive market, it is critical to innovate and provide clients with a unique value proposition. To innovate, company objectives must be widened, and new tactics developed. This may necessitate businesses abandoning their traditional methods of operation. Family firms, on the other hand, may stick to their tried-and-true methods and avoid investing in R&D.

Limited Talent: In most family businesses, the owners and managers are family members. Family members may or may not be talented and capable of carrying on the company's legacy. Getting the proper talent from outside the family is critical but keeping them is even more crucial.

There is a dearth of effective succession planning, mentoring, and development of the next generation of successors and leaders. This is an issue that needs to be addressed by family companies.

Technology Requirements: Due to the changing environment and quick technological breakthroughs, businesses must adapt to new technological advancements or, if necessary, bring in new technology. This may require them to abandon outdated business concepts that have been passed down to the current generation.

Sibling Rivalry: There are no words that describe sibling rivalry. The business is divided among the family's heirs. Some may do well and develop further, while others may not. This frequently leads to rivalry, and people begin to tear each other down, even at the expense of organisational resources. If this rivalry is not resolved, the family enterprise may be separated.

Internal Conflict: The family members in a family business have a wide range of interests. This could cause problems in the workplace. It's quite difficult to deal with this internal struggle. It is possible that if it is not handled appropriately, the firm will fail.

Prejudiced Decision-Making: There is always the risk that decisions made in the family business will be biassed towards non-family members and employees. Family members may try to persuade the others to adopt their own viewpoints.

Too Much Emotional Attachment to Business: It is often claimed that one should be enthusiastic about their business but not emotional, as this might interfere with the difficult decisions that must be made in order for it to develop.

Uncertain Duties and Obligations: In family business organisations, there is sometimes a lack of formal paperwork that defines the roles and responsibilities of family members. This could result in anarchy and poor management.

Professionalism: Professional corporate cultures are the outcome of formal processes such as creating clear goals and enforcing standards, as well as employing and promoting employees based on their contribution potential. However, in many family firms, the informal structure and culture can lead to role confusion, a lack of skill, and the inability to articulate principles, ethics, and philosophies.

Limited Finance: Because family firms cannot raise substantial amounts of capital on their own, they have limited financing options, and external financing options may not be appealing to them because outside debt could result in significant control over the company. It can be difficult for family businesses to figure out where and how to receive the financing and resources they need to expand.

Section – B

Q6) Discuss the key elements of business process. (6)

Ans) The key elements of business process are as follows:

Business Process Automation

It is a technology-driven strategy for automating a business process in order to do it for the least amount of money and in the shortest amount of time possible. It's great for both simple and complex business operations, and it's utilised to automate repeating tasks or processes in companies where manual labour may be eliminated. It has the ability to simplify a business, achieve digital transformation, improve service quality, improve service delivery, and save expenses.

Purchase order inquiries, for example, are a common occurrence in most businesses. The asking team completes and submits a form to the purchasing team. The request is next examined by the approving authority, who may reject it if the information provided is insufficient or if there are budgetary limits. It is then returned to the team that requested it. A purchase order is prepared if authorised, and copies are forwarded to the supplier and the inventory team.

Business Process Improvement

It's a strategic planning exercise aimed at restructuring company processes based on operations, complexity levels, personnel abilities, and other factors in order to make the process more meaningful, efficient, and contribute to overall corporate success. Pretty of taking tiny incremental improvements, it is a rather radical technique to rediscover more efficient ways to execute a company operation.

The merging of two companies in the waste management equipment industry with a shared group of clients was an example of business process improvement. They looked into the significance of a merger. They discovered divergent systems and processes, as well as operational redundancies, when they joined the two organisations.

Business Process Modelling

It's a diagrammatic/structural representation of the flow of business activities in a company or a specific function inside a company. Its major purpose is to capture and benchmark current activity flows in order to find changes and additions that will allow jobs to be completed more quickly. Flowcharts, data-flow diagrams, and other graphing approaches are commonly used to do this.

Business Process Reengineering

After a comprehensive study, it is a complete redesign of business processes with the goal of having a significant impact. It entails locating the source of inefficiency, eliminating non-value-added tasks, and even enacting a top-to-bottom change in the way a process is designed in order to achieve an entire transformation.

A fast-food company is an example of business process reengineering. Completely rethinking a product's delivery might sometimes produce unanticipated results. The method in this sort of restaurant is similar to that in others: the customer places an order, the order is sent to the kitchen, which produces the food, and then the dish is delivered to the customer. Business process experts concluded that preparing the meal portions in a separate centre and having them delivered to the restaurants on a regular basis would be more efficient. When the consumer places an order, the team assembles everything and delivers it. This is a significant shift in the process, resulting in improved control, fewer accidents, higher staff happiness, and a better flexibility to focus on client needs without sacrificing quality.

Business Process Optimization

It employs analytics and business process mining techniques to identify bottlenecks and other significant inefficiencies in an existing process.

Social networking marketing is another example of business process optimization. Let's say a corporation wants to post something three times a day on Facebook. They choose someone to handle it; the employee considers the posts and logs in to Facebook three times a day to write everything down and publish it. It's worth noting that we're wasting time, distracting the employee from focusing on other activities, and wasting resources three times a day in this manner. To improve this procedure, we'd have the employee plan the postings for a week or two weeks ahead of time, and then use software to publish them automatically. As a result, the posts will be published on a daily, constant basis. It doesn't matter if someone is available to do it or not.

Business Process Mapping

It's a method for capturing, clarifying, and breaking down process sequences into logical phases. Business process mapping is a visual representation of what a company does, incorporating roles, responsibilities, and standards. The mapping can be done in a written manner or using flow charts to show it. Choose process mapping software with an intuitive visual interface that allows company users to map all processes based on logical steps.

Q7)Discuss the factors influencing entrepreneurial ecosystem. (6)

Ans) The factors influencing entrepreneurial ecosystem are as follows:

Policy

To the extent that governmental policy may make or destroy the entrepreneurial ecosystem, the regulatory domain of government plays a critical role in determining its form. The ability to open and expand new businesses is determined by the regulatory policy framework element, which includes components such as the ease of starting a new business in terms of licences and registrations required, tax incentives, including tax holidays available to new start-ups, and laws that are conducive to business growth. The government's policy aids in enticing entrepreneurs to start a business. The entrepreneur may be inspired to launch the new endeavour if the ease of doing business is favourable.

Finance

The availability and supply of financial reserves for entrepreneurs is critical not only during the incubation stage, but also as they continue to grow. When businesses demand additional resources, such as hiring new employees, purchasing, or leasing capital assets and raw materials, or investing in marketing and sales, they will require financing. These financial reserves can come from a variety of sources, including traditional sources such as friends and family, as well as more modern forms such as angel investors, private equity partners, or venture capital, as well as debt from banks/FIs or open markets. It goes without saying that having a larger pool of financial resources makes it easier to scale up a business's growth.

Culture

Any region's culture is the lifeblood of the business ecosystem that emerges there. An entrepreneurial ecosystem without a strong cultural support for entrepreneurship, it is argued, lacks the incentive to continue for a long time. Cultural factors such as cultivating a positive image of entrepreneurship, having an inherent spirit of self-reliance with a preference for self-employment, tolerance of entrepreneurship failure by developing adequate risk appetite, culture of research and innovativeness, and celebrating role model success stories provide the support system for the entrepreneurial ecosystem to thrive.

Institutional and Infrastructural Supports

The institutional and infrastructural supports include a variety of formal and informal agencies that assist in the formation and expansion of businesses. Physical facilities such as transportation, such as roads, railroads, and air links, may be used to offer the required accessibility. Similarly, internet access to the World Wide Web, which acts as a medium for exchanging information. Aside from that, the support system is made up of agents who provide professional services such as financial planning, accounting, human resources, and legal counsel, among others, and who work together to build entrepreneurial networks.

Human Capital

The quality and quantity of the workers at the entrepreneur's disposal is referred to as human capital. Human capital is a multidimensional aspect that shapes the type of working environment that can be created dependent on the specific skill set that the workforce possesses. The accessible management and technical talent pool, the workforce's degree of education and training, particularly technical education and training, the entrepreneurs' experience, and the ease of access to an immigrant workforce are all aspects of this area. The ecosystem's survival depends on the development of human capital.

Markets

For businesses to develop, they need a receptive market setup with customers who provide the necessary demand. Entrepreneurial ecosystems require access to such marketplaces, as well as the availability of customers willing to pay for the entrepreneur's goods and services. Individuals, corporations, and institutional market participants can interact and transact in these marketplaces, which might be domestic or international, wholesale or niche, small, medium, or big.

Q8) Discuss the importance of Project Feasibility Analysis. (6)

Ans) The importance of Project Feasibility Analysis is as follows:

Feasibility studies are critical in the development of a firm. They can help a company decide where and how it will operate. They can also identify potential roadblocks to operations and estimate the amount of capital required to get the company up and operating. Feasibility studies are used to develop marketing tactics that can persuade investors or banks that investing in a specific project or business is a good idea. Its goal is to provide the essential facts needed to make an informed decision about the proposed investment.

The feasibility study allows the entrepreneur to approve or reject the project by displaying the market potentialities, technical and financial ramifications of the suggested opportunities. It also aids the entrepreneur in formulating future plans for the organisation and acts as the foundation for evaluating the proposed business's performance. For various objectives, feasibility analysis differs. Every feasibility analysis, on the other hand, should include technical, market, financial, and environmental examination.

A feasibility study's usefulness originates from an organization's goal to "get it right" before devoting resources, time, or money. A feasibility study may uncover new ideas that change the project's scope. It's better to make these judgments ahead of time than to rush into a project just to find out it won't work out. A feasibility study is usually beneficial to a project since it gives you and other stakeholders a clear picture of the plans.

The following are the main advantages of conducting a project feasibility study:

1. Project teams' focus is improved.

2. Explores new possibilities

3. Provides pertinent information that aids in making a decision on whether or not to proceed.

4. The number of company possibilities is reduced.

5. Finds a convincing cause to continue with the project.

6. It boosts the success rate by considering numerous parameters.

7. Assists in the decision-making process for projects.

8. Determines why proceeding is not a good idea.

Q9) Explain the factors which play an important role in the choice of a suitable source of finance. (6)

Ans) The following are some of the most significant factors to consider when selecting a good source of funding:

The cost factor is one of the most important elements that influences the source of finance chosen, and a smart finance manager or entrepreneur should constantly aim to raise funds from sources with low cost of capital.

Another aspect that influences finance source selection is the company's financial soundness as well as its image.

The length of time for which the funds are required will also influence / determine which source of funding should be chosen. If a corporation wishes to finance the purchase of fixed assets, for example, it should look into long-term financing options.

The business organization's shape and ownership structure are also crucial factors in determining the funding sources available. It is, for example, a company structure that can raise funds through the issuance of shares and debentures.

The risk factor plays a crucial role in deciding the source of finances, as some sources of funds have a higher risk of raising funds for the firm.

Another key factor to consider when choosing a funding source is the ease with which it may be raised. Entrepreneurs and finance managers will seek for ease of getting capital, which involves looking at the level of complexity involved in financing as well as the legal processes that must be completed in order to raise capital. Raising capital through an initial public offering and the issuance of shares and debentures, for example, may entail more legal procedures and complications than other forms of financing.

Q10) Discuss the role of MSMEs in the development of entrepreneurship in India. (6)

Ans) The role of MSMEs in the development of entrepreneurship in India is described as follows:

Promotes Entrepreneurial Opportunities

MSMEs provide a solid foundation for aspiring businesses. MSMEs, which are seen as the catalysts of a country's socio-economic growth and development, create pools of entrepreneurs.

Promotes Entrepreneurial Culture

MSMEs foster a culture of entrepreneurship. It establishes a welcoming climate and takes a variety of steps, including as developing a responsive regulatory environment and providing access to technology and funding. As a result, the environment is favourable for aspiring and budding entrepreneurs.

Commercialise Inventions

We all have cell phones (smart phones now a days). You must be aware that Alexander Graham Bell invented telephonic communication in 1876. In 1877, he founded the Bell Telephone Company, proving that he was not just an inventor but also an entrepreneur. Since then, technological, and other advancements have resulted in significant advancements in the phone's appearance. We have used a variety of services, ranging from fixed dial phones to smart phones. Can you imagine who was responsible for all of these upgrades? Yes, you're correct! These services are provided by a number of telecommunications firms. It is of no service to society until the inventions are commercialised. From time to time, this commercialization fosters innovation.

Encourages and Exploit Innovation

Through business innovation, MSMEs contribute to the development of an entrepreneurial culture. As the adage goes, money breeds money, and an entrepreneur inspires others to follow in his or her footsteps. Many businesses assist their supplementary divisions in establishing and growing. Entrepreneurship and innovation go hand in hand.

Facilitate and Complement Large Industries

MSMEs are thought to be a good complement to big businesses. Many large corporations rely on MSMEs for the supply of essential raw materials for the manufacture of goods and services, and they also employ these small businesses to distribute their finished products.

Boost in Service Sector

MSMEs make a significant contribution to the service industry. Its contribution to the service sector is greater than that of the manufacturing sector. In service-based MSMEs, there is a significant potential for entrepreneurship development.

Section – C

Q11) Write short notes on the following: (5X2)

a) Detailed Project Report

Ans) Following the completion of the feasibility studies, a complete project report based on the data and results gained from the investigations is required. The preparation of the DPR is the final and most crucial stage of the project's pre-investment phase. A project report is a thorough action plan with specifics regarding the planned project.

The company will send copies of the complete project report to banks and financial institutions for participation in the financing scheme as well as for the project's working capital requirements. A project report is an analytical assessment of the proposed project from which a conclusion about its viability can be formed. The project report will represent the capacity and competency of the promoter.

The development of a DPR is conducted only after an investment decision has been made based on technical, economic, and financial feasibility studies, in order to avoid wasting the costly efforts needed in preparing a DPR. The development of DPR requires the use of process designs, layout drawings, and construction data.

The project report will be developed for a plan of action to be implemented, which will cover the following aspects:

1. Technical

2. Financial

3. Marketing

4. Management

5. Social

The DPR follows the same format and content as the techno-economic feasibility study. The DPR must contain all critical factors of location and site costs, process/technology, market demand, plant capacity, product income, production costs, profitability, economic benefits, and so on.

b) Interpersonal Skills

Ans) Interpersonal skills are a broad category of abilities that can be applied at all levels of a company, including start-ups. It is defined as a person's behavioural and tactical talents for effectively motivating, influencing, and interacting with people. Interpersonal skills assist entrepreneurs in managing a variety of other factors that are critical to the venture's success. Communication, networking, and partnership management are all aided by interpersonal qualities. Individual needs for connection and expression while interacting with others promote interpersonal skills. One of the essential qualities of successful entrepreneurs has been identified as an interpersonal skill that allows them to effectively manage their goals.

The following are examples of interpersonal skills:

1. Dispute resolution

2. Empathy

3. Communication that is positive

4. Adaptability Active listening

5. Confidence

6. Patience

7. Collaboration or teamwork are two terms for the same thing.

8. Flexibility

9. Diplomacy

Q12) Differentiate between the following: (5X2)

a) Social Entrepreneurs and Cultural Entrepreneurs

Ans) The differences between social entrepreneurs and cultural entrepreneurs are as follows: