If you are looking for BTMC-134 IGNOU Solved Assignment solution for the subject Entrepreneurship and Small Business, you have come to the right place. BTMC-134 solution on this page applies to 2021-22 session students studying in BAVTM, BAVMSME courses of IGNOU.
BTMC-134 Solved Assignment Solution by Gyaniversity
Assignment Code: BTMC-134/ASST/2021-22
Course Code: BTMC-134
Assignment Name: Entrepreneurship and Small Business
Verification Status: Verified by Professor
Answer the following in about 500 words each.
Q1) What is Entrepreneurship? Discuss its elements and theories in brief. 20
Ans) An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The process of setting up a business is known as entrepreneurship. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures. Entrepreneurs play a key role in any economy, using the skills and initiative necessary to anticipate needs and bringing good new ideas to market. Entrepreneurship that proves to be successful in taking on the risks of creating a start-up is rewarded with profits, fame, and continued growth opportunities. Entrepreneurship that fails results in losses and less prevalence in the markets for those involved.
Elements of Entrepreneurship
To set up an enterprise and for it to grow successfully, several elements must be in place. Some key elements that are necessary for entrepreneurship:
Innovation: Doing something new or different; turning creative ideas into practical applications. Entrepreneurs use innovation to exploit market opportunities and overcome threats. Or doing something better and more economically. According to Schumpeter, an entrepreneur is an innovator.
Risk-Taking: Entrepreneurship is the mentality of taking calculated risks with confidence to achieve a goal. So, entrepreneurship and risk-taking go together. Entrepreneurs who are willing to take risks have a competitive advantage. It aids in capitalising on economic opportunities. A good entrepreneur knows when and how to take and manage business risks. But he should be a risk taker, not a risk avoider. A lack of risk-taking can lead to stagnation and excessive risk-taking can lead to losses. Entrepreneurship will never succeed if an entrepreneur is unwilling to take risks.
Vision: Entrepreneurs need vision or foresight to succeed. It is the entrepreneur's vision that drives the business forward. It outlines the future tasks, risks, and culture of the company. This helps set short-term and long-term goals for the company and plan how to achieve them.
Organization: An entrepreneur must use managerial skills. His managerial skills improve when he works to achieve a balance between his organisation and its environment. The entrepreneur takes on all the risks and rewards. This takes a lot of planning and organisation. One must manage finances, employees, resources, etc. Thus, organisational skills are an important aspect of entrepreneurship.
Perseverance: Setting up a business takes time, not days or months. It may take years, with good and bad days. Perseverance and not giving up when things get tough is what allows an entrepreneur to succeed. Perseverance is important because giving up is the end of the journey for an entrepreneur.
Theories of Entrepreneurship
A multitude of entrepreneurial influences are grounded on several theoretical paradigms. The concept of entrepreneurship has interdisciplinary dimension and is influenced not only by economical aspects but also by the society, the cultural background, psychology of the human mind, ethical values etc. Bearing this in mind the theories of entrepreneurship must be analysed in terms of its interdisciplinary dimension.
There are number of theories of entrepreneurship propounded by thinkers, and they can be categorized into following five groups.
Q2) Explain the concept, importance and barriers of creativity and innovation. 20
Ans) Creativity refers to a person' s ability to think differently or novel, which means originality of ideas, usefulness of the ideas to the society and nation at large. All humans are born with raw creativity ability, however, only a handful few is more creative than many. Creativity is like raw material for the new and best solution for problems arising in every sphere of life. Creativity is learned through practice and the development of long-term creative potential depends on experience.
Importance of Creativity in Entrepreneurship
In business, creativity is a differentiator. Business success requires creativity—not only in coming up with a potentially innovative idea, but also in keeping the business going through good and bad times. Some reasons creativity is important for entrepreneurs:
To Face Cut-Throat Competition: Creative persons bring several new products and services with the acceptance of new methods, techniques and new ideas. As a result, on the one side, there is maximum production at minimum costs thus keeping competitive price low possible and on the other side, the sale of commodities also gets increased.
Clubbing of Goals become possible: Through creative thinking, individual and organisational goals may be clubbed together which are essential for the entrepreneurship.
Entry of New Products/ Services in the Market: The introduction of new products and services are based on new thoughts and perceptions, recognition, and likings. As a result, there is higher probability of consumer readily accepting them.
Best Communication: Through creativity, the employees are encouraged for constructive suggestions and creative ideas, so that they may also present the weakness and strengths of their organisation.
Increased Revenue: Creativity gives a competitive edge to business to increase turnover because of consumers” satisfaction.
Greater Market Share: Now there are businesses selling creative experiences in addition to products/ services. This is a factor which can lead to an increase of market share of the business enterprise
Foster Innovation: Innovation has always been associated with creativity. Creativity is the vital part of innovation without which implementation of distinct ideas is not possible. In other words, creativity is the precursor of innovation.
Concept of Innovation
Innovation can be observed as an implementation of ideas that originate from creative processes. It can be defined as the process of translating a novel and creative ideas or invention into a good or service that creates value or for which Customers will pay. It relates to commercialisation of creative invention which occurs if someone improves on or makes a significant contribution to an existing products, process or service. Innovation is thus the oxygen and core process of entrepreneurship.
Barriers to Creativity and Innovation
Major barriers are discussed below:
Environmental Hindrances: This relates to the surrounding environment.
Reliance on experts.
Insufficient committed resources.
Over-cooperation causes conflict, groupthink, social loafing, and communication breakdown.
Too much cooperation can prevent the team from sharing its best ideas.
Too much competition.
Tactical Hindrances: Some of the tactical hindrances are:
Lack of idea generation skills.
(Translate) Execute the plan (solve) and finally look back (undirected problem-solving) (check and interpret).
Poor technique execution.
Lack of follow up.
Personal Hindrances: Some personal obstacles are:
Lack of self-confidence.
Not conforming to socially accepted standards, conventions, rules, or laws puts people in danger of social rejection while implementing creative ideas, people have a strong need to conform.
Dislike of uncertainty.
Answer the following questions in about 250 words each.
Q3) Write short notes on the following: 2x5=10
a) Business Incubators
Ans) Business incubators are non-profit organisations dedicated to accelerating the growth and success of early-stage and start-up businesses. They're frequently a good way to get funding from angel investors, state governments, economic development coalitions, and other sources. Similarly, in business, incubators are organisations that provide low-cost assistance to new and start-up entrepreneurs with the tools and knowledge they need to compete in a growing and competitive market. As a result, a business incubator is defined as "an organisation dedicated to accelerating the growth and success of entrepreneurial businesses by providing a variety of business support resources (financial and technical) such as physical space, capital, coaching, common services, and networking connections."
Business incubators are defined by the National Business Incubation Association as "a catalyst tool for either regional or national economic development." "A facility that provides affordable rent to new and small firms, shared office and logistical services, and arranges business management and financial assistance," Allen defines a business incubator. In contrast to research and technology parks, business incubators are focused on start-ups and early-stage companies. On the other hand, research and technology parks are usually large-scale projects that house everything from corporate, government, or university labs to very small businesses.
The majority of research and technology parks do not provide business assistance, which is a key component of a business incubation programme. Many research and technology parks, on the other hand, have incubation programmes. Business incubators in India are marketed in two ways: as Technology Business Incubators and as Start-up Incubators—the first focuses on technology businesses (mostly consulting and promoting technology-related businesses), while the latter focuses on promoting start-ups (with more emphasis on establishing new companies, scaling the businesses, prototyping, patenting, and so forth).
b) Tata Business Excellence Model
Ans) The Tata Business Excellence Model matrix has been conceived to deliver strategic direction and drive business improvements at the Tata group. Aimed at enabling Tata group companies capture the best global business processes and practices, the business excellence assessment model invests Tata group companies with the inherent dynamism to evolve and keep pace with ever-changing business performance parameters. The main objectives of the Tata business excellence model assessment methodology are to enhance value for all stakeholders and contribute to marketplace success, maximise enterprise-wide effectiveness and capabilities, and deliver organisational and personal learning.
The Criteria have Three Important Roles in Strengthening Competitiveness:
To help improve organizational performance practices, capabilities, and results.
To facilitate communication and sharing of best practices information among all organisations within TATA Group.
To help in guiding organizational planning and opportunities for learning
TBEM Criteria is designed to help organizations use an integrated approach to organisational performance management that results in Delivery of ever-improving value to customers and stakeholders, contributing to organizational sustainability Improvement of overall organisational effectiveness and capabilities Organizational and personal learning.
The Criteria are Built on the following Set of 11 Interrelated Core Values and Concepts:
Visionary Leadership Customer-driven Excellence Organizational and Personal Learning Valuing Employees and Partners Agility Focus on the Future Managing for Innovation Management by Fact Social Responsibility Focus on Results and Creating Value Systems Perspective
The Core Values and Concepts are Embodied in Seven Categories, as follows:
Measurement, analysis and knowledge management
Q4) Discuss the significance of a business plan and explain the stages of production planning and control. 10
Ans) A business without a plan is a fantasy. Its intentions are like seeds without soil, sails without wind, or mere wishes without writing. A business plan is essential for an entrepreneur because there is no payoff without execution. Writing a business plan is done to relieve stress and anxiety. It serves two purposes. A business plan is primarily a road map. It shows a company's progress. It also outlines the company's goals, where it wants to go, and how those goals will be met, allowing an entrepreneur to assess its progress. The business plan's second purpose is to gain approval from various stakeholders.
Stages of Production, Planning and Control
The stages of Production planning and control has three phases namely:
Production planning describes the optimal schedule and systematic way of operations. The planning phase has two categories namely prior planning and Active planning.
Prior Planning: Prior planning relates to the pre-production planning. It comprises of all the planning work which are considered prior to the active planning.
Active Planning: The active planning is based on five modules. These are: Process planning and routing, Materials planning, Tools planning, Loading, and Scheduling.
The Action phase is based on dispatching. Dispatching is the transition from planning phase to action phase. Under this phase, the worker is ordered to begin manufacturing the product. The dispatching includes the tasks of job order, store issue order, tool order, time ticket, inspection order, move order etc.
The control phase has the following two major modules:
Progress Reporting: This report allows the entrepreneur to compare current and previous performance. Data collection and analysis include material refusal, process variations, tool failures, operator competency, and absences. A variance analysis is performed after collecting all relevant plant performance data. This helps the entrepreneur identify urgent issues.
Corrective Action: Mistakes are made when planning for the unexpected. Making flexible schedules; modifying plant capacity; buying decisions; expediting work; pre-planning, etc. The schedule may be disrupted by machine failures, worker absences, or poor material quality. In such cases, it is best to reschedule the entire product mix to gain a clearer picture of the situation and work in the company's favour.
Q5) Discuss the importance of environmental analysis of a business plan. Explain any two tools of environmental analysis. 10
Ans) Business leaders can influence the internal environment that impacts their company's operating and financial results. The greatest threats to business success may be caused by factors beyond the control of company leaders. As a result of this analysis, business leaders develop policies and processes that adapt company operations and products to the environment. An environmental analysis seeks to identify all environmental factors that affect or may affect your business. Usually done by brainstorming. The more people involved, especially in the initial brainstorming, the more accurate the environmental profile developed.
Two Tools of Environmental Analysis
Business analysis models can help you better understand your business environment and think more strategically. There are dozens of generic techniques, but some are used more frequently than others. These are:
SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis:
A SWOT analysis gives you a better insight into your internal and external business environment. However, it does not always prioritise the results, which can lead to an improper strategic action.
One way to make better use of the SWOT framework is to consider the customer's perspective when making strategic plans and decisions. You can do this by applying importance-performance analysis (IPA) to identify SWOT based on customer satisfaction surveys.
PESTLE (Political, Economic, Social, Technological, Legal and Environmental) Analysis:
PESTEL Analysis is a strategic framework used to evaluate the external environment of a business by breaking down the opportunities and risks into Political, Economic, Social, Technological, Environmental, and Legal factors. PESTEL Analysis can be an effective framework to use in Corporate Strategy Planning and for identifying the pros and cons of a Business Strategy. The PESTEL framework is an extension of the PEST strategic framework, one that includes additional assessment of the Environmental and Legal factors that can impact a business.
Answer the following questions in about 100 words each.
Q6) Explain the elements of marketing analysis. 6
Ans) The following elements are essential for Marketing Analysis:
Businesses must know the market size. They can determine the market size based off information collected from trade associations, customer surveys and market information from major businesses and government data.
Market trends give businesses opportunities to make a huge profit on these trends by creating products that fulfil new desires. However, trends can also lead to new threats, especially if the trends are alternatives to products that the company normally sells.
Market Growth Rate
Companies must predict how much a market will grow. They can do this by looking at the current market growth rate and estimating the future growth rate based off of this. Companies can also look at growth data from complementary markets to guess the growth rate of the targeted market.
Q7) Explain the financial and non-financial entrepreneurial support systems. 6
Ans) Financial Entrepreneurial Support Systems: The financial aspect is seen in terms of the money capital invested to get the business started. Then comes incremental capital, which is invested as the business grows. Finance is said to be the lifeblood of a business, and it appears to be. Nothing starts without it. Having access to finance is not enough; knowing how and where to use it is crucial, as are other business activities such as marketing and human resources.
Non-financial Entrepreneurial Support System: In general, non-financial entrepreneurial support systems play a major role in the growth and development of any enterprise. More specifically, these are seen in training, education, motivation, and consultancy. Despite their simplicity, they are highly significant. For an entrepreneur to survive the numerous struggles and challenges of business operations, motivation, and consultancy are necessary foundations.
Q8) Discuss the importance of screening the business ideas. 6
Ans) From various sources, the entrepreneur may have a number of potential business ideas. The next step is to decide which ideas to pursue and which to discard or put on the back burner. The process of screening business ideas enters the picture at this point. Business idea screening entails assessing all potential ideas against a set of criteria before eliminating as many as possible from consideration. The idea is that, due to a variety of constraints, such as resource, time, or expertise constraints, it would be best for an entrepreneur to focus on one idea and see it through. When all of the focus is on developing one realistic idea rather than pursuing several business ideas at the same time, there is a better chance of success.
Q9) What is the concept of start-up? Discuss in brief the basic start-up problems. 6
Ans) A start-up or start-up is a company or project undertaken by an entrepreneur to seek, develop, and validate a scalable business model. While entrepreneurship refers to all new businesses, including self-employment and businesses that never intend to become registered, start-ups refer to new businesses that intend to grow large beyond the solo founder. At the beginning, start-ups face high uncertainty and have high rates of failure, but a minority of them do go on to be successful and influential.
Basic Start-up Problems
Hiring Suitable Candidates
Partnership Decision Making
Winning Trust of Customers.
Q10) Explain the conflicts in Family Business and its resolution. 6
Ans) There are many times when family business conflicts arise due to competing interests of family members. In this case, learn to resolve family conflicts. In this case, resolving conflict is crucial. To resolve a conflict, it is necessary to identify the causes.
Listed below are a few causes of conflicts:
Close, complex bond.
Ingrained communication style
The Family Business Review suggests five methods for resolving disputes.
They are as follows:
Because competition strategy imposes or forces solutions, it is unlikely to fully address many business and family issues.
In order to accommodate others, one must be concerned about oneself. This method can help resolve family firm disputes. But it's rarely used.
Collaboration is an integrative approach that tries to address all parties' concerns. It can have a big impact on both family and business outcomes.
Compromise requires each party to give up something so that the outcome is acceptable to all. But no one is fully satisfied here.
Avoidance is avoiding conflicts by denying or dismissing them. It avoids immediate direct conflicts but builds frustration with negative consequences.
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