Assignment Code: BCOS-185/TMA/2022-23

Course Code: BCOS-185

Assignment Name: Entrepreneurship

Year: 2022-2023

Verification Status: Verified by Professor

Maximum Marks: 100

Note: Attempt all the questions.

Section – A

Q.1 What is an entrepreneurship ecosystem? Discuss the various factors that influence entrepreneurship ecosystem. (10)

Ans) The social and economic context that has an impact on entrepreneurship is known as the entrepreneurial ecosystem. In order to foster, nurture, and promote entrepreneurship in any field, a number of separate players and forces must interact.

The factors that influence entrepreneurship ecosystem are as follows:

Policy: In the sense that governmental policy has the power to make or break the entrepreneurial ecosystem, the regulatory domain of the government plays a critical role in determining the ecosystem's structure. The regulatory policy framework element, which consists of elements like the simplicity of starting a new business in terms of the licences and registrations required, tax incentives including tax holidays available to new start-ups, and laws that are friendly to business growth, determines the capacity to open and expand new businesses.

Finance: For entrepreneurs, having access to financial resources is important both during the early stages of incubation and as they continue to expand. When entrepreneurs need to acquire more resources, such as hiring staff, purchasing or leasing capital assets and raw materials, or engaging in marketing and sales, financing is necessary. These financial reserves can come from a variety of sources, from more conventional ones like friends and family to more contemporary ones like angel investors, private equity partners, or venture capital, as well as the ability to borrow money through banks, financial institutions, or the open market.

Culture: The entrepreneurial environment that develops in an area is shaped by its culture. It is stated that a strong cultural support for entrepreneurship is necessary for an entrepreneurial ecosystem to function effectively and sustainably. The entrepreneurial ecosystem is supported by cultural factors such as fostering a positive perception of entrepreneurship, having an innate spirit of self-reliance with a preference for self-employment, tolerating entrepreneurship failure by developing an appropriate risk appetite, celebrating the achievements of role models, and encouraging research and innovation.

Institutional and Infrastructural Supports: The various formal and unofficial organisations that promote business formation and expansion make up the institutional and infrastructural supports. Physical infrastructures that provide the necessary accessibility could include things like roads, railroads, and air links. The World Wide Web, which acts as a channel for information exchange, is accessible via the internet.

Human Capital: The number and quality of the workforce that business has access to are represented by the human capital. Human capital has many facets, and the type of working environment it can create depends on the particular skill set that the worker possesses. The accessible management and technical talent pool, the workforce's degree of education and training, particularly technical education and training, the entrepreneurs' experience, the accessibility of the immigrant labour force, etc. are some of the several elements that make up this area.

Markets: For firms to expand, there must be an environment in which consumers can generate the necessary demand. Entrepreneurial ecosystems require access to these marketplaces with the right clients present and willing to pay for the products and services of the entrepreneur. Small, medium, or big marketplaces where individuals, businesses, and institutional market participants can engage and trade can be domestic or foreign markets, wholesale or specialty markets.

Q.2 What do you mean by creativity? What are its benefits to entrepreneur. (10)

Ans) One of the key traits of successful entrepreneurs is creativity, which has the ability to spark new concepts, innovative solutions, and fresh viewpoints while also boosting the entrepreneur's self-assurance and ability to innovate continuously. The ability to come up with or recognise concepts, options, or possibilities that could be helpful in resolving issues, interacting with others, or amusing ourselves and others is referred to as creativity. The analysis of above definition shows that creativity refers to:

1. Generation and recognition of ideas

2. Development of alternatives for solving the problems

3. Communication with others

4. Entertaining ourselves or entertaining others

It is a phenomenon whereby something new and valuable is created. This something new and valuable might be either a physical object or an intangible product, such as an idea, composition, etc. Usually, creative ability is not a limited resource that depletes with use. It concerns the capacity to produce original, noteworthy, and fruitful connections that remain open-ended. The majority of prosperous businesspeople develop creative approaches, fresh ideas, and fresh methods to address issues more effectively or to settle unresolved issues. It aids in the administration of internal or external organisational processes, structures, engagements, collaborations, resource management, and other entrepreneurship-related factors. These procedures aid the company in gaining an advantageous position and then put it in a superior position to rivals by giving it a distinct advantage.

Entrepreneurs who possess creative skills can assure their stakeholders that they will always be inventive. Their ability to be innovative offers their partners the faith and confidence to invest in them as investors or partners, or it gives customers a reason to favour them over competitors when introducing new products. Many large technology-intensive companies are renowned for their constant innovation and their bets on networked partner entrepreneurs. They guarantee that the creative companies will consistently develop fresh solutions for their larger partners that manage the commercial part. Innovation can become more routine if trustworthy creative competencies are available, which can allow entrepreneurs to have the opportunity to establish their brand on a strong foundation of consistent innovation.

Benefits of Creativity to Entrepreneur

The benefits of creativity can be seen as:

1. Creativity enables effective management.

2. It can address problems in a better way.

3. It can solve unresolved problems.

4. It ensures and enables effective utilisation of available resources.

5. It helps in overcoming the weaknesses.

6. It leads to innovation and innovative ideas.

7. It gives an edge vis-a-vis the competitors in the market.

Q.3 Discuss the various internal and external sources of generating business ideas. (10)

Ans) The internal and external sources of generating business ideas are as follows:

Internal Sources

Through official research and development, as well as through both formal and informal employee contributions, the organisation can identify new ideas from internal sources. To encourage staff to participate as much as possible, rewards and recognition might be given.

1. Research and Development: R&D work makes recommendations for what and how a new or updated product might be manufactured to satisfy client needs. Research and development (R&D) is the process of creating new, better products and services to meet the needs of the market and the client.

2. Intrapreneurship: A person who assumes the obligation to innovate new concepts, services, and procedures—or any new invention—within the company is known as an intrapreneur. Companies can utilise the intellect of their staff members outside of their own R&D process, including CEOs, scientists, engineers, manufacturing personnel, and salespeople.

3. Hobbies and Interests: Hobbies are something one does in their own time that they enjoy doing and may be a significant source of business ideas for entrepreneurs. In fact, a lot of outstanding entrepreneurs have built profitable businesses while pursuing their hobbies or interests.

External Sources

Brilliant new product ideas can also be acquired by businesses from a variety of outside sources. Customers, competitors, and channel members are only a few of the many external sources, but the firms differ substantially in where they focus their efforts for outside assistance and the degree to which external ideas are sought after and utilised.

1. Need Recognition of Customers: The requirements of the people in society should always be given careful consideration by aspiring entrepreneurs. When a need is intensely felt and cannot be met within, people typically look to the outside world for a solution. Entrepreneurs should make earnest attempts to recognise this need and convert it into a profitable business enterprise.

2. Existing Products and Services: Another effective method of coming up with company ideas is to enhance the products and services that are already available. A whole new product or service with more market appeal and sales potential could come from this upgrade. As a result, a business owner should carefully assess and evaluate the current goods and services it offers, as well as those of its rivals, and should identify ways to make them better.

3. Distribution Network: Dealers, wholesalers, retailers, and agents are examples of distribution partner members who have proven to be one of the most creative sources of new idea generation. Due to their close proximity to the clients, distribution networks are aware of their unmet needs.

4. Trade Journals, Business Magazines and Newspapers: Numerous trade publications, business periodicals, and newspapers regularly publish statistical data and other studies that might be used to spark new company ideas.

5. Trade Fairs and Exhibitions: Since they are frequently promoted on the Internet, radio, and newspapers, trade shows and exhibitions have established themselves as one of the best places to find fresh ideas.

6. Government Schemes: The Indian government has launched a number of programmes to offer training and support to those with a desire to start their own businesses in an effort to reduce unemployment and inspire young people to become entrepreneurs rather than job-seekers. These plans are a fantastic way to come up with ideas on their own.

Q.4 What is market survey and how is it important for market research? (10)

Ans) A market survey is a survey research and analysis of the market for a certain good or service that looks at consumer preferences. It is an analysis of numerous client capabilities, including investment characteristics and purchasing power. Market research surveys are instruments for directly obtaining feedback from the target market to comprehend their traits, expectations, and needs.

Importance of Market Survey for Market Research

Understanding the Demand and Supply Chain of the Target Market: When creating a product, it is important to consider both the supply and demand of the intended market. Marketers can then use these insights to create goods and features that are focused on the needs of their target audiences. Entrepreneurs are required to estimate demand, which should take into account both current and future demand. The entrepreneur uses a variety of demand forecasting methods for this that are both quantitative and qualitative in character. In the supply chain, it is necessary to determine the level of competition. Entrepreneurs must conduct a competitive study to learn what their competitors are selling and at what price, how they are promoting their products, and their distribution strategy.

Developing Well-thought Marketing Plans: An organization's target market is the entire world, so gathering information from this market through carefully thought out market research is urgently needed. Market research and segmentation techniques can be used to generate detailed, long-term marketing strategy. The creation of a sufficient marketing plan may make business operations easier.

Figure out Customer Expectations and Needs: The goal of any marketing initiatives is to gain new clients. Market research is necessary for all businesses, big and small, to periodically collect feedback from their target market. In order to stay current on the evolving client demands over time, organisations can analyse customer feedback to gauge customer experience, satisfaction, and expectations, among other metrics. Entrepreneurs may design their products and services to offer outcomes that can both meet and surpass client expectations if they are aware of what they are. Results that surpass customers' expectations will almost always increase their satisfaction.

Accurate Launching of New Products: Market research is important for determining where to test new goods or services. Market research gives marketers a way to assess the potential for success of new products and adjust their product strategy in response to customer input. The introduction of new products might be made easier by accurate and exact information.

Obtain Information about Customer Demographics: The foundation of any organisation is its client base, and market surveys can be used to gather delicate information about customer demographics like colour, ethnicity, or family income. Such demographic data gleaned from market research will always assist business owners in carefully segmenting their markets to ensure the success of their venture. Furthermore, accurate demographic data may assist business owners in providing goods in a way that will delight consumers.

Q.5 What do you understand by Business Process? What are the key elements of business process? (10)

Ans) A business process, also known as a business technique, is a set of related, organised actions or tasks carried out by people or machinery in a particular order to provide clients with a service or product. Another definition of a business process is a series of tasks and activities that, when finished, will achieve an organisational objective. The process must have a single output and inputs that are both properly specified. All the elements that contribute (directly or indirectly) to the added value of a service or a product are included in these inputs. The management processes, operational processes, and supporting business processes can all be used to group these components. A business process is frequently represented visually as a flowchart of an ordered series of steps with intervening decision points or as a process matrix of an ordered series of steps with relevance criteria based on process data.

The key elements of business are as follows:

Business Process Automation: Automating a business process is a technology-driven method to complete it more quickly and for less money. It is used to carry out regular tasks or processes in a business where manual labour may be replaced. It is very beneficial for both simple and sophisticated business operations. It can simplify a firm by streamlining operations, implement digital transformation, boost service quality, enhance service delivery, or keep expenses in check.

Business Process Improvement: It is a strategic planning programme that tries to redesign business processes in accordance with operations, complexity levels, staff abilities, etc. in order to make the entire process more significant, effective, and supportive of overall corporate growth. Instead of making minor, gradual changes, it takes a pretty radical approach to rediscover more effective ways to manage company processes.

Business Process Modelling: It is a structural or diagrammatic representation of the movement of business operations within an organisation. Its main purpose is to record and establish a baseline for the present activity flow in order to find improvements and enhancements for quick task completion. This is typically accomplished using several graphing techniques, including flowcharts, data-flow diagrams, etc.

Business Process Reengineering: After careful research, business procedures have been completely redesigned to have a significant impact. To achieve a comprehensive transformation, it entails locating the root of inefficiency, eliminating tasks that provide no value, and even executing a top-to-bottom change in the way a process is designed.

Business Process Optimization: To identify bottlenecks and other significant inefficiencies in a process, it uses analytics and business process mining technologies.

Business Process Mapping: Documenting, outlining, and organising process sequences into logical steps is a procedure. By considering roles, responsibilities, and standards, business process mapping helps to illustrate what a company performs. Either the mapping is done verbally or through flowcharts to visualise it. Select a process mapping tool with an easy-to-use visual interface that enables business users to map all processes based on logical steps.

Section – B

Q.6 What is the importance of writing a business plan? (6)

Ans) An organization's future can be planned with the use of a business plan, which also aids in the efficient operation of the company. It is a strategy that includes goals and specifics on how to reach them. The entrepreneur creates a written document called a business plan that lists all the important internal and external factors required in launching a new business. Functional plans from industries like marketing, finance, manufacturing, and human resources are frequently integrated into it.

To give a clear image of what a business is about, where it is predicted to go, and how the entrepreneur expects to go about it, all aspects of the new venture must be described. A business plan should provide as many facts as possible, but they must also be presented succinctly to ensure that the reader will finish reading it. Companies can use them to keep themselves on course moving forward. For the first three years of operation, it aims to address both short- and long-term decision-making and strategies. As a result, the business plan is often known as a game plan or road map.

Business plans are essential for a company to set its objectives and draw funding. It can be utilised to get bank debt, raise money through the sale of securities and attract angel or venture capitalist investors. As it offers blueprints of the plans the entrepreneur has established, it aids the entrepreneur in being ready in advance for the early years of the business. It clearly explains the firm's goals and objectives as well as how they can be accomplished. Additionally, business owners can establish performance benchmarks to assess the viability of their plans. It is also known as a study of the technoeconomic viability.

Q.7 What are the factors that determine the selection of source of funds? (6)

Ans) The factors that determine the selection of source of funds are as follows:

1. A smart finance manager or entrepreneur should constantly aim to raise money from sources where the cost of capital is low because it is one of the most significant aspects that influences the decision of which source of financing to choose.

2. The company's financial soundness and reputation are the other factors influencing the choice of financing provider.

3. Which source of funding should be chosen will also depend on how long the money will be needed for.

4. The choice of funding sources is significantly influenced by the shape and ownership structure of the corporate organisation.

5. The risk factor is crucial in deciding on the source of funding because some sources of funding have a higher risk of raising money for the firm.

6. Another crucial factor in choosing a funding source is how simple and straightforward it is to raise money. In order to choose the easiest way to raise money, business owners and financial managers must consider the complexity of the financing process as well as the regulatory requirements that must be met.

Q.8 Who is a mentor? What are the characteristics of a good mentor. (6)

Ans) Mentors are just as vital to firms as their financial resources. Mentors are crucial at all stages of a business venture's development, not only when it is first being established. While starting or running the business, the entrepreneur needs support in the form of mentoring. Experts from the industry or from the professions serve as start-up mentors. They are experts in a variety of fields, including leadership, marketing, operations, human resource management, and investment decisions. Mentors support the market validation of business offerings. Additionally, they can connect the business owners with potential partners. The mentors will immediately provide you with the experience that you can only obtain after years of study and labour.

Characteristics of a Good Mentor

1. He/she should be accessible most of the times.

2. He/she should have vast experience of the industry.

3. He/she should be passionate.

4. He/she should be an excellent communicator.

5. He/she should be able to foresee challenges and problems.

6. He/she should be able to suggest you a right course of action.

7. He/she should be a good critic as well.

8. He/she should be trustworthy.

9. He/she should be knowledgeable.

10. He/she should be well connected.

Q.9 Discuss the challenges faced by family businesses in India. (6)

Ans) The challenges faced by family businesses in India are as follows:

1. Innovation for a Competitive Advantage: In order to innovate, company objectives must be expanded, and new tactics must be developed. However, family firms could stick to their tried-and-true procedures and refrain from making research and development investments.

2. Limited Talent: Family members might not always be gifted and qualified to carry on the legacy of the business. It's critical to recruit the proper talent from outside the family, and it's even more crucial to keep that talent.

3. Lack of Succession Planning: There is a dearth of effective succession planning, mentoring, and leadership development for the upcoming generation.

4. Technology Needs: This could imply that they will have to give up the more established company models that were passed down to the current generation.

5. Sibling Rivalry: This frequently fosters competition, and people begin to undermine one another even at the expense of organisational resources. If this conflict is not resolved, the family business may break apart.

6. Internal Conflict: It is really challenging to manage this internal struggle. If not handled properly, this could result in the company failing.

7. Biased Decision-Making: There is always a chance that decisions made in a family firm will be skewed against non-family members and other employees. The family members could try to persuade the others to agree with their own opinions.

8. Too Much Emotional Attachment with Business: It is often claimed that one should be enthusiastic about their business but not overly emotional because this could prevent them from making the difficult decisions that may be necessary for their company to develop.

9. Unclear Roles and Responsibilities: When it comes to family company organisation, there is frequently a lack of sufficient documentation outlining the duties and obligations of the family members. Mismanagement and turmoil could result from this.

10. Lack of Professionalism: Many family firms have an informal structure and culture that can lead to role confusion, a skills shortage, and the inability to define principles, ethics, and philosophies.

11. Limited Finance: It can be difficult for family businesses to figure out where and how to receive the money and resources they need to expand.

Q.10 Explain the measures to support start-ups in India. (6)

Ans) The measures to support start-ups in India are as follows:

1. Providing Infrastructure Facility: During the early stages of their operations, emerging enterprises are given discounted access to physical space by incubators in exchange for a monthly rent payment.

2. Financial Assistance: Financing alternatives for start-ups are numerous and include loans, grants, loans from family and friends, angel investors, venture capitalists, crowd funding, and many more.

3. Mentoring Support: Using their industry experience, skills, and specialised knowledge, mentors can help start-ups with minimal experience or understanding. Start-ups may receive one-on-one guidance from mentors.

4. Promoting Research and Development: The hardest work is done in research and development in a company's early years. Research and development funding is crucial for start-ups, especially those in the technology sector.

5. Providing Business Support Services: A pool of service providers with expertise in HR, marketing, accounting, and law is available through start-up support organisations, and they can give start-ups with helpful guidance and services to ensure smooth operation. Additionally, these organisations support the collaboration of start-ups with various ecosystem partners.

6. Regulatory Support: Entrepreneurs frequently feel that as they work to establish themselves, start-up businesses must overcome numerous legal and regulatory obstacles. Therefore, in order to lessen the regulatory burden on start-ups, the government has loosened a number of restrictions. Self-certification is a feature that start-ups can use. They can formally register their start-up without paying any money by completing an online form.

7. Protection to Intellectual Property Rights: While one business created a cutting-edge technology, another business released a comparable product before it was patented. Therefore, it is essential to safeguard intellectual property.

8. Global Tie-ups: It is challenging for start-ups to break into foreign markets and compete internationally. The government's Start-up India project increased the connection between the Indian start-up ecosystem and the global start-up ecosystem.

Section – C

Q.11 Write short notes on the following: (5×2)

(a) Women Entrepreneurship

Ans) The goal of women entrepreneurs is to establish a company entity, take the required risks, coordinate resources, plan, and run the entity themselves. According to the state's definition of women entrepreneurs, "A woman enterprise is one in which women own and control at least 51 percent of the capital and who generate at least 51 percent of the jobs created." Woman entrepreneurs are those women (s) who start and develop a business endeavour by coordinating, combining, and controlling the production aspects, then own and successfully operate it using their business savvy.

Example: Mahila Griha Udyog Shri One such initiative that aims to promote women's business and empowerment is the Lijjat Papad Society. The Lijjat Papad Company was founded in 1959 by seven Gujrati women who were only somewhat literate. They began on the roof of a residential building in Mumbai and eventually employed about 45,000 people. The company is a market leader in its niche and exports products as well. They created this product based on what they could do with their own skills, which included cooking, in order to provide a source of income for their families. Once they were exposed to the possibilities, they discovered their abilities. Mr. Parekh provided them with early coaching throughout their first travel, as well as a little loan to help them start working. These female business owners recognised the significance of customer trust and the relevance of product quality as the determining factor in food consumption; they prioritised product quality above all else.

(b) SWOT Analysis

Ans) To assess a company's strengths, weaknesses, opportunities, and threats, a SWOT analysis is utilised. By doing a SWOT analysis, a company can pinpoint areas for improvement and utilise opportunities offered by the environment, while also identifying potential barriers to success. A SWOT analysis should be a part of the planning process for new firms. There is no "one size fits all" business strategy but thinking about your new company in terms of its particular "SWOT" analysis will get you started in the correct direction.

1. Strengths: Strengths are the excellent qualities that your organisation possesses, both concrete and intangible. You have control over them. It may be the ability to outperform rivals, new technologies, etc.

2. Weakness: Weaknesses are elements of your company that reduce the value you provide or put you at a disadvantage in the marketplace. It seeks to analyse what your business model lacks, whether it is location- or technology-poor, etc.

3. Opportunities: Opportunities are attractive things from the outside that indicate reasons why your firm is likely to succeed.

4. Threats: These include outside variables that are beyond your control and may jeopardise your plan or the viability of your company. Although you have little control over them, it may be advantageous to have backup plans in case they do arise.

Q.12 Distinguish between: (5×2)

(a) Verbal and Non-verbal Communication

Ans) The differences between Verbal and Non-verbal Communication are as follows:

(b) Angel Investors and Venture Capitalist

Ans) The differences between Angel Investors and Venture Capitalist are as follows:

1. An angel investor works on their own, whereas a venture capitalist is an employee of a business or enterprise.

2. The normal investment range for angels is $25,000–$100,000, though they occasionally make larger or smaller investments. The average sum might be above $750,000 if angels form a group. Contrarily, venture investors invest an average of $7 million in a start-up.

3. While venture capitalists look for a strong, competitive product or service, a talented management team, and a broad market potential, angel investors primarily offer financial support.

4. Angel investors focus on early-stage businesses and finance late-stage technological development and early market launch. On the other side, venture capitalists invest in both more established companies and start-ups, depending on the venture capital industry. A venture investor will seek to invest in a start-up with a lot of growth potential and great promise.

5. Angel investors have faced a lot of controversy regarding due diligence throughout the years. Since they own everything, many angels work very little and are therefore not actually required to do so. Since investors still have a fiduciary duty to their restricted partners, they must exercise greater due diligence.

6. VCs, which are less diversified than Wall Street and primarily concentrated in Silicon Valley, are not like angel investors.

7. VCs are more likely to destroy your business. Since VCs also sit on your company's board of directors, which Angels typically do not and should not, this strengthens their capacity to have an impact on the start-up.