root@vm-learning
~
$
open
ch-a4
PART A ▪ UNIT 4
04
Entrepreneurial Skills – IV
Entrepreneur · Barriers · Attitudes · Competencies (Class XII)
Entrepreneurship Development is the process of enhancing entrepreneurial skills and knowledge through structured training and institution-building programmes. It focuses on an individual who wishes to start or expand a business.
Introduction — Why Entrepreneurship?
Entrepreneurs identify an innovation, seize an opportunity, mobilise funds, raise capital and take calculated risks to open a market or new business for products, processes and services.
Training in entrepreneurship development needs to include: (a) entrepreneurship orientation and awareness, (b) development of competencies (knowledge, skills, attitudes) to recognise a market opportunity and organise resources, and (c) improvement of business performance for growth and competitiveness.
🔹 Support from the Government of India
The National Institute for Entrepreneurship and Small Business Development (NIESBUD) — under the Ministry of Skill Development and Entrepreneurship — promotes entrepreneurship through training of trainers, management development, entrepreneurship-cum-skill development and cluster intervention programmes.
Learning Outcome 1: Identify the general and entrepreneurial behavioural competencies
1.1 What Is Entrepreneurship?
The word "entrepreneur" is derived from the French word entreprendre, which means "to undertake".
🔹 Definitions by Different Thinkers
- Cole: "A purposeful activity to initiate, maintain and aggrandise profit-oriented business."
- Stevenson & Jarillo: "The process by which individuals pursue opportunities without regard to the resources they currently control."
- Economists: An entrepreneur brings in resources, labour, material and other assets into profit-making combinations.
- Psychologists: A person driven by a psychological force — a desire to obtain or attain something.
- Sociologists: A person whose actions determine social status and contribute to societal development.
- Management Gurus: A person who has a vision and generates an action plan to achieve it.
Entrepreneurship — an economic process where an idea or opportunity is created, refined, developed and implemented while being exposed to uncertainty, to realise a profit by effective utilisation of resources.
1.2 Characteristics of Entrepreneurship
- It is an economic activity done to create, develop and maintain a profit-oriented organisation.
- It begins with identifying an opportunity — a potential to sell and make profit in the market.
- It deals with the optimisation of resources.
- It is the ability of an enterprise and an entrepreneur to take risks.
1.3 Entrepreneurship — Art and Science
Entrepreneurship is considered to be both an art and a science:
- A science has stepwise progression with valid proof (like chemistry or physics) — specific steps → specific results.
- An art has no specific way to attain a result — the skill of the artist is prime (like music).
- Entrepreneurship needs the progression and procedures of a science and the skill to digress when required — yet keep the activity profitable and growth-oriented.
1.4 Qualities of a Successful Entrepreneur — 7 Qualities
💡 (a) Initiative
An entrepreneur must initiate action and take advantage of opportunities. Once a person misses an opportunity, it may not come again.
🎲 (b) Willingness to Take Risks
Every business involves risk — an entrepreneur volunteers to take risks to run and grow a business successfully.
📚 (c) Ability to Learn from Experience
Entrepreneurs do make mistakes. Errors must not be repeated, because that may cause heavy losses.
🔥 (d) Motivation
A motivated person does not rest until a task is completed — essential for success in every walk of life.
🦁 (e) Self-Confidence
Reflected in courage, enthusiasm and the ability to lead. Without confidence, one cannot inspire others to work.
💪 (f) Hard Work
There is no substitute for hard work. An entrepreneur cannot say "the office hours are over and I will not work any longer" — sometimes they may even have to work the whole night.
🎯 (g) Decision-Making Ability
Things move fast — an entrepreneur must make suitable and timely decisions. Otherwise they may miss an opportunity and incur losses.
1.5 Types of Entrepreneurs
| Type | Focus |
|---|---|
| Service Entrepreneurs | Create a new market for services or offer services in an existing market. |
| Business Entrepreneurs | Undertake trading activities — spot a product's potential and stimulate demand (not concerned with manufacturing). |
| Industrial Entrepreneurs | Manufacturers — identify customer needs and create products (electronics, textile, machine tools). |
| Agricultural Entrepreneurs | Use new and innovative technology to maximise agricultural yield. |
| Technical Entrepreneurs | Use technical expertise to create machines, tools and methods — born of the Industrial Revolution. |
| Non-Technical Entrepreneurs | Expertise in non-technical aspects — activities before and after the manufacturing process. |
| Professional Entrepreneurs | Start a business, nurture it to self-sustenance, sell it and start another — repeating the cycle. |
| IT Entrepreneurs | Innovate in the field of Information Technology specifically. |
| Women Entrepreneurs | Women who take up entrepreneurial activities — many have reached the top. |
| Social Entrepreneurs | Develop, fund and implement solutions for society, culture and environment (a.k.a. "social innovators"). |
| Family Business Entrepreneurs | Inherit a family business and continue/upgrade it for the next generation. |
| First Generation Entrepreneurs | No prior entrepreneurship background — can be of any age (17 or 50). |
1.6 Roles and Functions of an Entrepreneur — 7 Functions
- Identifying entrepreneurial opportunity — spot human needs (food, fashion, education) before others do; requires imagination, creativity and innovativeness.
- Turning ideas into action — collect information on ideas, products and practices to meet market demand.
- Feasibility study — assess market feasibility; anticipate problems, costs, inputs → create the business plan / project report.
- Resourcing — arrange money, machine, raw material and workforce on time.
- Setting up an enterprise — legal formalities, location, premises, machinery installation.
- Managing the enterprise — workforce, material, finance, production, marketing, appropriate returns.
- Growth and development — after initial goals are met, explore higher goals and strive for excellence.
1.7 What Motivates an Entrepreneur?
- Standard of Excellence — an entrepreneur sets high standards and strives to attain them.
- Uniqueness — to remain unique in everything the person does.
- Focus on Long-Term Goals — plans patiently for what is distant in time.
- Need to Influence — perceives one's ideas as revolutionary and expects them to impact the world.
1.8 Wage Employment vs Entrepreneurship
A wage-employed person works for an individual or organisation and gets paid for it. An entrepreneur is a self-employed person who takes risks and tries new ideas to improve the business.
Nutan's Story — Nutan had a passion for cooking but became wheelchair-bound after an accident. She interned in a neighbour's restaurant (wage-employed) for two years, then started her own dabba (tiffin) service delivering lunch to 100 people in a nearby office, later introducing a menu of choices. She became an entrepreneur because she took risks and tried new ideas. Where there is a will, there is a way!
1.9 Identifying Opportunities and Risk-Taking
- Community concerns — look at issues concerning your community; starting locally can reap huge benefits.
- Personal experiences — many world-changing ideas come from challenges an entrepreneur faces in life.
- Research with others — speak to like-minded people, join local startup groups; discussion opens doors.
Mark Zuckerberg thought of a simple idea — connecting with college friends through the Internet. It became Facebook, sparking a global "social movement".
1.10 Startups
Startup — a company that is in the first stage of its operations, often financed by the founders until the business gets off the ground, after which outside finance or investments come in.
- Can be started with minimum investment, often in technology, healthcare, food, virtual reality, food delivery, etc.
- Rely on capital from angel investors or venture capital firms, whereas small businesses use loans and grants.
- Often seek guidance / mentoring from experts — join local and global groups.
🔹 Startup India
Startup India — a flagship initiative of the Government of India to build an ecosystem for startup growth. Under the scheme, new startups get regulatory and tax benefits, capital-gain exemption and access to government funding (if criteria are met). Website: startupindia.in.
1.11 Barriers to Becoming an Entrepreneur
A business venture is like a hurdle race — it involves risks (danger). The "hurdles" are called barriers. Common barriers are:
🌾 1. Environmental Barriers
- Lack of adequate resources or raw material.
- Non-availability of skilled labour.
- Lack of requisite machinery and other infrastructure.
- Unavailability of monetary resources on time.
These can be overcome by studying the market, conducting research / surveys, and mentor guidance.
🔹 Government Schemes to Help Small Entrepreneurs
- Government Mudra Yojana — mudra.org.in.
- Credit Guarantee Scheme — cgtmse.in.
- Stand-Up India Scheme — standupmitra.in.
📋 2. No or Faulty Business Plan
"A goal without a plan is just a wish." Without an action plan, the venture becomes chaotic. A plan pushes everyone to work harder in a defined direction.
👤 3. Personal Barriers
How long will the business last? How much profit? Will customers like the product? Such questions cause fear. Finding a suitable team is also tedious — careless workers may damage the business.
😟 4. Self-Doubt
Self-doubt comes when we lack confidence in our abilities. Best way out: work towards goals, keep them visible, and surround yourself with family/friends who support you. Believing in ourselves is the first step towards crushing the fear of failure.
🤝 5. Forming a Team and Teamwork
Finding suitable people and training them is tedious. When new people fit into the team's culture, work happens faster and better.
1.12 Entrepreneurial Attitudes
Attitude — a way of thinking or feeling about something. It can be positive or negative, good or bad.
Bitti's Story — Bitti from Bareilly (UP) noticed that nobody danced at weddings. Elders feared judgement; youngsters complained the DJ didn't play latest music. After attending five more weddings she spotted a pattern — a business opportunity. She started a wedding-entertainment company with (a) a dance academy (classes for children in the morning + seniors 50+ in the evening) and (b) a music business with 16–30 year-olds researching the latest hits. Despite no prior experience, she persevered.
🔹 Five Attitudes of a Successful Entrepreneur
| Attitude | Meaning |
|---|---|
| Decisiveness | Ability to make quick and profitable decisions. |
| Taking Initiative | Ability to take charge and act in a situation before others. |
| Interpersonal Skills | Ability to work with others. |
| Perseverance | Ability to continue even when it is difficult. |
| Organisational Skills | Ability to make the optimum use of time, energy and resources to achieve goals. |
Learning Outcome 2: Demonstrate the knowledge of self-assessment of behavioural competencies
2.1 From Attitudes to Competencies
Competency is the ability to do something well. The journey starts with understanding who we are — our likes, dislikes, mistakes and lessons.
🔹 Attitudes Mapped to Competencies
| Attitude | Competencies Required |
|---|---|
| Decisiveness | Know yourself · Identify opportunities · Analyse the opportunity · Problem solving. |
| Initiative | Realise you can take action · Believe you can take action · Take action! |
| Interpersonal Skills | Listening · Positive body language · Positive attitude. |
| Perseverance | Not giving up · Working hard · Learning from failures · Stress management. |
| Organisational Skills | Time management · Goal setting · Efficiency · Managing quality. |
2.2 Decisiveness — 4-Step Process
🪞 1. Knowing Yourself
- What kind of problems do you want to solve?
- What bothers you around you?
- What are you good at that can help solve these problems?
🔍 2. Identifying Opportunities
- Right time and place where a business will work.
- Who are the people you want to help?
- What problems do they have?
- What ideas do you have to solve them?
🧠 3. Analysing the Opportunity
- If it works, why would it work?
- What problems could stop the idea from succeeding?
- What do customers think about the idea?
- What is the competition for that idea?
🛠️ 4. Problem Solving
- Make changes to the idea after studying customers and the market.
- What is the final idea? What makes it different from others?
- How will you use your strengths to make the idea successful?
Ankur's Story — Ankur made towels in Dharamkot (Himachal Pradesh). Villagers found them expensive. He was about to shut shop when someone suggested selling in a city. He showed samples in Delhi — the quality and price were a perfect fit for city buyers. He then made softer towels for the city and cheaper ones for the village. His decisiveness (identifying opportunity, analysing it and problem-solving) saved the business.
2.3 Taking Initiative — 3 Steps
- Realise that things are in your control and you can take action in a given situation.
- Believe that you have the ability to take action.
- Take action in that situation!
Elton's Story — Elton loved hairstyling and kept trying international styles on his friends, but his family wanted him to join a software company. After years of indecision, his friends encouraged him to take charge. He spoke to his family about his talent and business skills — they agreed, helped him open a salon, and he is now well-known for his styling in and around his town.
2.4 Interpersonal Skills
Interpersonal = dealing with relationships between two or more people. Interpersonal skills = the competencies required to work with other people.
👂 1. Listening
Listen when someone talks — it helps build trust. When someone shares something, it is usually because they have thought about it or that is how they feel.
🧍 2. Body Language
Facial expressions, gestures and postures matter. A smile and leaning forward makes the other person comfortable; a frown, crossed arms or leaning back signals disinterest.
😊 3. Positive Attitude
Being optimistic about situations, interactions and oneself. People with positive attitudes see the best even in difficult situations. Especially important when giving and receiving feedback — start with what the person is doing well, then mention what could be better.
2.5 Perseverance — 4 Ways to Build It
- Not giving up when the situation is difficult.
- Working hard to achieve the goal.
- Learning from failures — analyse what went wrong.
- Stress management — keep yourself healthy and refreshed.
Ravi's Story — After 20 years as a successful entrepreneur in Lucknow, Ravi moved to Jaunpur and opened a clothing store with the same city-style stock. Villagers wanted more variety and brighter colours. Ravi did not give up — he sold the old stock to a friend in the city, bought local-style clothes from a local seller, and put welcoming posters outside his shop. He learnt from failure and persevered.
🔹 Stress Management — Common Techniques
- Taking a walk in nature.
- Doing a physical activity — running, swimming, etc.
- Practising deep breathing exercises.
- Practising meditation or yoga.
2.6 Organisational Skills
Organisational skills = ability to make optimal use of time, energy and resources to achieve goals.
⏰ 1. Time Management
- Planning well.
- Setting goals.
- Setting deadlines.
- Giving important work responsibilities to others in the team.
- Conducting the most important tasks first.
🎯 2. Goal Setting
A goal is the aim or result we want from an activity. It makes us work harder, motivates us to complete what we start, and gives direction.
⚙️ 3. Efficiency
Ability to do things well, successfully, without wasting time. Use material, team efforts, money and time well.
Sama's Story — When Sama started her manufacturing business she handled everything — manufacturing, transportation and door-to-door sales. As the business grew, she focused only on manufacturing (to maintain quality) and her team took over transportation and sales. She became more efficient.
✅ 4. Managing Quality
Setting and maintaining a standard of excellence for products or services. As volume grows, quality becomes the most critical factor. Ravi bought good-quality clothes even from a local seller because his customers were important to him.
2.7 Core Entrepreneurial Competencies — The Full List
The following competencies are assessed through a self-rating questionnaire:
- Self-Confidence — faith in one's own abilities.
- Initiative — acting before others.
- Seeing and Acting on Opportunities — spotting chances to profit.
- Concern for Quality — maintaining high standards.
- Goal Setting and Risk Taking — setting ambitious, realistic goals.
- Problem Solving and Creativity — inventive solutions.
- Systematic Planning and Efficiency — orderly use of resources.
- Information Seeking — actively gathering facts and data.
- Persistence — sticking with a task despite difficulty.
- Influencing and Negotiating — convincing others and reaching win-win deals.
- Team Building — creating a group that works well together.
The CBSE-suggested practical exercise is to administer a self-rating questionnaire, score responses on each competency, and prepare a competency profile of the student.
2.8 Valuing Service and Diversity
- Valuing Service — taking pride in helping customers; treating every service interaction as an opportunity to build trust and reputation.
- Valuing Diversity — respecting co-workers, customers and partners from different backgrounds, cultures, languages, abilities and beliefs.
- Diverse teams are more creative and solve problems in ways a homogeneous team cannot.
Administer the self-rating questionnaire on the 11 competencies above (rate each 1–5). Identify your top 3 strengths and 2 areas for improvement. Collect a small anecdote of a successful entrepreneur (Nutan / Bitti / Ankur / Elton / Ravi / Sama or one you admire) and map the story to specific competencies. Prepare your Competency Profile as a one-page summary.
Check Your Progress — quick MCQ pointers:
- Salman tries new ideas as a tailor in a garment factory → wage-employed person (works for someone).
- Prashant works for Surabhi (businesswoman) → wage-employed.
- Ridhi owns a construction company and takes risky decisions → entrepreneur.
- Ability to continue when things are difficult → Perseverance.
- Ability to act in a situation before others → Initiative.
- Ability to work with others → Interpersonal skills.
- Mary fears she cannot work with a team → barrier is self-doubt.
- Sayed doesn't know what steps to take → barrier is lack of plan.
- Harish unsure if his rugs will sell in Canada → selecting the right business idea.
Quick Revision — Key Points to Remember
- Entrepreneur (French entreprendre = "to undertake") = self-employed person who takes risks and tries new ideas.
- Entrepreneurship = economic process of turning an idea/opportunity into a profit-making business under uncertainty.
- 4 characteristics: economic activity · identifies opportunity · optimises resources · takes risks.
- Art + Science — needs procedures and skill to digress.
- 7 qualities of a successful entrepreneur: Initiative · Willingness to take risks · Learning from experience · Motivation · Self-confidence · Hard work · Decision-making.
- 12 types of entrepreneurs: Service · Business · Industrial · Agricultural · Technical · Non-Technical · Professional · IT · Women · Social · Family Business · First Generation.
- 7 functions of entrepreneur: Identify opportunity → Turn ideas to action → Feasibility study → Resourcing → Set up enterprise → Manage enterprise → Growth & development.
- 4 motivators: Standard of excellence · Uniqueness · Long-term goals · Need to influence.
- Wage-employed vs Entrepreneur: works for someone (fixed pay) vs self-employed (takes risk for profit).
- Stories: Nutan (dabba) · Bitti (wedding entertainment) · Ankur (towels) · Elton (salon) · Ravi (clothing store) · Sama (manufacturing) · Zuckerberg (Facebook).
- Identifying opportunities: Community concerns · Personal experiences · Research with others.
- Startup = company in its first stage; financed by founders → angel investors / VCs. Govt scheme: Startup India.
- 5 barriers: Environmental · Faulty business plan · Personal · Self-doubt · Team building.
- Govt schemes: Mudra Yojana · Credit Guarantee Scheme · Stand-Up India.
- 5 attitudes (ADIPO): Decisiveness · Taking Initiative · Interpersonal Skills · Perseverance · Organisational Skills.
- Decisiveness (4 steps): Know yourself → Identify opportunities → Analyse → Problem solve.
- Initiative (3 steps): Realise → Believe → Take action.
- Interpersonal (3): Listening · Positive body language · Positive attitude.
- Perseverance (4): Not giving up · Working hard · Learning from failures · Stress management.
- Organisational (4): Time management · Goal setting · Efficiency · Managing quality.
- Stress management techniques: walk in nature · physical activity · deep breathing · meditation/yoga.
- 11 Core Competencies: Self-Confidence · Initiative · Seeing & Acting on Opportunities · Concern for Quality · Goal Setting & Risk Taking · Problem Solving & Creativity · Systematic Planning & Efficiency · Information Seeking · Persistence · Influencing & Negotiating · Team Building.
- Values to uphold: Valuing Service · Valuing Diversity.