Entrepreneurship Skills Class 11 Question Answer
Unit 4: Entrepreneurship Skills
Session 1: Introduction to Entrepreneurship
1. State whether the following statements are True or False
a) An entrepreneur runs a business to only make profits. [False]
b) Entrepreneurship and business are exactly the same thing.[False]
c) In service business activity, the services are intangible and cannot be felt or seen.[True]
d) In manufacturing business activity, an entrepreneur makes the product.[True]
Subjective Question
1. Who is an entrepreneur? Give an example.
Answer: An entrepreneur is someone who starts and runs their own business, taking on financial risks in the hope of making a profit. An example is Elon Musk, who founded companies like SpaceX and Tesla.
2. What are the three types of business activities?
Answer: The three types of business activities are:
- Operating Activities: These are the day-to-day activities involved in running a business, like production, sales, and customer service.
- Investing Activities: These involve buying and selling assets such as equipment, property, or investments to help the business grow or generate income.
- Financing Activities: These involve obtaining funds to finance the business operations, such as borrowing money from banks, issuing stocks, or receiving loans from investors.
Entrepreneurship Skills Class 11 Question Answer
3. What is the difference between manufacturing and trading business activities?
Answer: Manufacturing and trading are two different types of business activities:
Manufacturing: In manufacturing, businesses produce goods by processing raw materials into finished products. They typically own the production facilities and machinery needed to create their products. For example, a company that makes cars or electronics is involved in manufacturing.
Trading: Trading businesses buy goods from manufacturers or wholesalers and sell them to customers. They don’t produce goods themselves but act as intermediaries between producers and consumers. For example, a retail store that sells clothes or electronics is involved in trading.
Entrepreneurship Skills Class 11 Question Answer
Session 2: Values of an Entrepreneur
Subjective questions
1. What values does the entrepreneur have?
a) Rohit runs a special hair salon in Bidar. Young boys come to him and ask him to give a Justin Beiber haircut. Rohit doesn’t know about this haircut so he searches on the Internet and finds the pictures.
What value does Rohit have? ______________
Answer: The value Rohit demonstrates in this scenario is resourcefulness.
b) Shalu makes special Indian snacks and goes door-to-door in her town to sell it to different people. Only 1 in 10 people to whom she goes, buys her products.
What value does Shalu have?
Answer: The value Shalu demonstrates is perseverance or persistence.
2. What values does a successful entrepreneur have? Write any three values, with examples.
Answer: Three values that successful entrepreneurs often have are:
- Resilience: Successful entrepreneurs face challenges and setbacks but bounce back stronger. For example, despite facing multiple failures, Thomas Edison continued to persevere and eventually invented the electric light bulb.
- Innovation: Successful entrepreneurs are often innovative, finding new and creative solutions to problems. For instance, Steve Jobs revolutionized the technology industry with innovative products like the iPhone and iPad.
- Adaptability: Successful entrepreneurs can adapt to changing circumstances and market conditions. An example is Jeff Bezos, who started Amazon as an online bookstore but adapted its business model over time to become the world’s largest online retailer offering a wide range of products and services.
Entrepreneurship Skills Class 11 Question Answer
3. Write the meaning of the following values with examples:
a) Independence
Answer: Independence refers to the ability to make decisions and take actions without being overly reliant on others. It involves autonomy and self-sufficiency. An example of independence is someone who starts their own business and doesn’t rely on a boss to dictate their work schedule or tasks.
b) Confidence
Answer: Confidence is the belief in one’s abilities, qualities, and judgment. It involves trusting oneself to handle challenges and succeed. For example, a confident entrepreneur may pitch their business idea to investors with assurance and conviction, believing in the value of their venture.
4. Identify three entrepreneurs from your area. Write down the actions that make them successful and what values they have.
Answer:
Aisha – Successful bakery owner known for quality and customer service. Values: Integrity, Perseverance.
Raj – Tech entrepreneur focused on innovation and adaptation. Values: Innovation, Adaptability.
Maria – Independent fashion designer with a strong online presence. Values: Creativity, Authenticity.
Entrepreneurship Skills Class 11 Question Answer
Session 3: Attitude of an Entrepreneur
1. State whether the following statements are True or False.
a) An entrepreneur reports to the boss or a manager. [False]
b) An employee has to adapt to the outside market environment while doing the job. [True]
c) An entrepreneur has to always think about what the customer wants.[True]
d) An employee makes all the decisions by himself or herself.[False]
Subjective Questions
1. Define the meaning of attitude. Give two examples of attitude of an entrepreneur.
Answer: Attitude refers to a person’s way of thinking, feeling, and behaving towards something or someone. It reflects their outlook, mindset, and approach to situations.
Examples of attitudes of an entrepreneur:
Optimism: An entrepreneur may have a positive attitude towards challenges and setbacks, believing that they can overcome obstacles and achieve success. For example, when facing financial difficulties, they might see it as an opportunity to find creative solutions rather than giving up.
Resilience: Entrepreneurs often display a resilient attitude, persisting in their efforts despite failures or setbacks. For instance, if a product launch doesn’t go as planned, they might learn from the experience, adapt their strategy, and keep moving forward with determination.
2. Write the key differences in attitudes between entrepreneurs and employees. Describe with examples.
Answer: Key differences in attitudes between entrepreneurs and employees, along with examples:
| Entrepreneurs | Employees | |
| 1. Risk-taking | Entrepreneurs are typically more willing to take risks because they are responsible for the success or failure of their ventures.
For example, they might invest their savings into starting a business, knowing that there’s a chance it might not succeed. |
Employees tend to have a more cautious approach to risk-taking since they have a stable income and job security.
For instance, they might be hesitant to leave their current job to pursue a new opportunity unless they are certain it’s a good move. |
| 2. Independence | Entrepreneurs value independence and autonomy, as they have the freedom to make decisions about their business without needing approval from a boss.
For example, they might choose to work unconventional hours or implement unique strategies that align with their vision. |
Employees often rely on their employers for direction and guidance, following established protocols and procedures. They may have less control over their work schedule and decision-making processes compared to entrepreneurs. |
| 3. Problem-solving | Entrepreneurs are proactive problem-solvers who see challenges as opportunities for growth. They take initiative to find innovative solutions to problems faced by their business.
For instance, if a product isn’t selling well, they might conduct market research to identify customer needs and preferences, then adjust their product accordingly. |
Employees are more likely to follow predefined procedures and protocols when encountering problems at work. They might escalate issues to their supervisors or managers for resolution, rather than taking direct action to solve the problem themselves.
|
Entrepreneurship Skills Class 11 Question Answer
Session 4: Thinking Like an Entrepreneur
Subjective Questions
1. What are the key problems an entrepreneur may face while running a business?
Answer: Entrepreneurs may encounter various challenges while running a business. Some key problems include:
i) Financial Constraints
ii) Market Competition
iii) Uncertain Economic Conditions
iv) Hiring and Retaining Talent
v) Operational Issues
vi) Marketing and Sales
vii) Technological Disruptions
viii) Legal and Regulatory Compliance
ix) Customer Satisfaction
x) Personal Well-being
2. What are different ways in which an entrepreneur can think to solve problems?
Answer: Entrepreneurs can employ various problem-solving approaches to tackle challenges in their businesses. Here are some different ways they can think to solve problems:
i) Analytical Thinking: Analyze problems step by step.
ii) Creative Thinking: Come up with new and creative ideas.
iii) Collaborative Problem-Solving: Work together with others for solutions.
iv) Data-Driven Decision Making: Use data to make decisions.
v) Iterative Problem-Solving: Test solutions and adjust as needed.
vi) Risk Management: Plan for risks and have backup plans.
vii) Customer-Centric Problem-Solving: Focus on what customers need.
viii) Long-Term Planning: Think about long-term effects.
ix) Adaptive Problem-Solving: Be ready to change plans when necessary.
x) Continuous Learning: Keep learning and improving.
Entrepreneurship Skills Class 11 Question Answer
Session 5: Coming Up with a Business Idea
Subjective Questions
1. Define the meaning of a business idea.
Answer: A business idea is a concept or proposal for a product, service, or solution that has the potential to be developed into a profitable business venture. It typically involves identifying a market need or opportunity and proposing a unique way to address it, whether through a new product, service innovation, or business model. The essence of a business idea lies in its ability to create value for customers and generate revenue or profit for the entrepreneur or business owner.
2. What are the three principles of idea creation?
Answer: The three principles of idea creation are:
- Identify a Problem or Need: Look for problems or unmet needs in the market that you can address with your business idea. This could involve identifying pain points, inefficiencies, or gaps in existing products or services.
- Be Innovative and Creative: Think outside the box and come up with unique solutions or approaches to address the identified problem or need. Innovation involves finding new ways of doing things or offering something different from what is currently available.
- Consider Feasibility and Viability: Evaluate the feasibility and viability of your idea by considering factors such as market demand, potential profitability, resource requirements, and scalability. Ensure that your idea is realistic and achievable within your capabilities and resources.
Entrepreneurship Skills Class 11 Question Answer
3. What are different ways of coming up with an idea? State different ways with an example.
Answer:
Identify Personal Pain Points: Think about problems or challenges you face in your daily life and consider if there’s a business opportunity in solving them.
For example, if you struggle to find healthy, convenient meal options, you might start a meal delivery service focusing on nutritious, ready-to-eat meals.
Conduct Market Research: Research trends, industries, and consumer needs to identify gaps or opportunities in the market.
For instance, if you notice a growing interest in eco-friendly products but find limited options in your area, you could start a business selling sustainable household goods.
Explore Your Interests and Passions: Consider your hobbies, interests, or areas of expertise and explore how they can translate into a business idea.
For example, if you’re passionate about fitness and nutrition, you might start a fitness coaching or healthy snack subscription service.
Solve Problems for Others: Pay attention to the problems or frustrations experienced by friends, family, or your community and brainstorm solutions.
For instance, if you notice that pet owners struggle to find reliable pet sitters, you could create an online platform connecting pet owners with trusted sitters.
Improve Existing Products or Services: Identify existing products or services that could be enhanced or made more efficient.
For example, if you find that traditional taxi services in your area are unreliable and expensive, you might develop a ride-sharing app that offers more convenience and affordability.
Leverage Emerging Technologies: Explore how emerging technologies such as artificial intelligence, blockchain, or virtual reality can be applied to solve problems or create new opportunities.
For example, you might develop a mobile app using augmented reality to help users visualize furniture placement in their homes before making a purchase.
Entrepreneurship Skills Class 11 Question Answer
4. Write any five business ideas that you would want to try out? Why have you chosen these ideas?
Answer:
Personalized Wellness Coaching: Offering personalized wellness coaching services that focus on holistic health, including nutrition, fitness, and stress management.
Sustainable Fashion Brand: Creating a fashion brand that prioritizes sustainability and ethical practices, such as using eco-friendly materials and supporting fair labor practices.
Online Learning Platform for Skill Development: Developing an online learning platform that offers courses and resources for skill development in areas such as digital marketing, coding, and entrepreneurship.
Urban Farming and Vertical Gardening Services: Providing urban farming and vertical gardening services to help people grow their own fresh produce in urban environments.
Eco-Friendly Home Cleaning Products: Manufacturing and selling eco-friendly home cleaning products made from natural ingredients that are safe for people and the environment.
I’ve chosen these ideas because they align with my interests, values, and skills, and I believe there’s a market demand for each of these businesses. Additionally, they offer opportunities for innovation, social impact, and potential profitability.
Entrepreneurship Skills Class 11 Question Answer
Session 6: Understanding the Market
Subjective Questions
1. What are the two ways of understanding the market?
Answer:
i) Market Research: Collecting data through surveys, focus groups, and analyzing market trends.
ii) Competitor Analysis: Studying competitors to understand their strategies, strengths, and market position.
2. What are the different aspects of understanding customer needs and preferences?
Answer:
i) Market Research: Gathering customer data through surveys and interviews.
ii) Customer Feedback: Collecting reviews and suggestions.
iii) Customer Segmentation: Dividing customers into specific groups based on demographics and behavior.
iv) Behavioral Analysis: Observing purchasing patterns and online activity.
v) Personalization: Tailoring experiences to individual customers using data insights.
Entrepreneurship Skills Class 11 Question Answer
3. How can an entrepreneur find out about customer needs?
Answer:
i) Conduct surveys and interviews.
ii) Collect and analyze customer feedback and reviews.
iii) Observe customer behavior and purchase patterns.
iv) Use social media and online analytics tools.
4. What are the different aspects of understanding competition?
Answer:
Competitor Analysis: Evaluating competitors’ products, services, pricing, and marketing strategies.
Market Positioning: Understanding how competitors are positioned in the market.
Strengths and Weaknesses: Identifying what competitors do well and where they fall short.
Customer Perception: Analyzing how customers view competitors.
5. How can an entrepreneur find out about competition?
Answer:
i) Study competitors’ websites, social media, and marketing materials.
ii) Read industry reports and market analysis.
iii) Attend industry conferences and trade shows.
iv) Talk to customers and suppliers for insights on competitors.
Entrepreneurship Skills Class 11 Question Answer
Session 7: Business Planning
Subjective Questions
1. What is the meaning of business planning?
Answer: Business planning is the process of outlining the goals, strategies, and actions needed to start and grow a business. It involves creating a detailed plan that guides the business toward achieving its objectives.
2. Why is business planning important?
Answer: Business planning is important because it helps entrepreneurs define their vision, set clear goals, and develop strategies to achieve them. It also allows for better resource management, risk assessment, and decision-making, increasing the chances of business success.
3. What are the important parts of a business plan?
Answer:
Executive Summary: A brief overview of the business, its goals, and its strategies.
Company Description: Detailed information about the business, its mission, and its products or services.
Market Analysis: Research on the industry, target market, and competitors.
Organization and Management: The business structure and information about the leadership team.
Marketing and Sales Strategy: Plans for attracting and retaining customers.
Product Line or Services: Details about the products or services offered.
Financial Projections: Forecasts of revenue, expenses, and profitability.
Funding Request: If seeking investment, details about the funding needed and how it will be used.
Entrepreneurship Skills Class 11 Question Answer
4. How can an entrepreneur improve and grow a business? State the principles.
Answer: Principles to improve and grow a business are-
Customer Focus: Prioritize understanding and meeting customer needs to build loyalty.
Innovation: Continuously improve products, services, and processes to stay competitive.
Quality Management: Maintain high standards for products and services.
Effective Marketing: Use targeted marketing strategies to reach and attract customers.
Financial Management: Monitor finances closely to ensure profitability and manage cash flow effectively.
Employee Development: Invest in training and development to build a skilled and motivated workforce.
Adaptability: Be flexible and responsive to changes in the market and industry trends.
Strategic Partnerships: Collaborate with other businesses to expand market reach and resources.