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her product range based on customer feedback and market trends. By maintaining quality craftsmanship and
personalized customer service, Sarah's Boutique established a loyal customer base both offline and online.
Difference between Product Business and Service Business
Factors Product Business Service Business
Product can be seen and touched. Customer Service cannot be seen or touched.
Seen and Touched
pays for physical exchange of things. Customers here pay for an experience.
A service, for example, cutting hair,
A product can be stored in a shop or a
Stored cannot be stored. Service is provided
warehouse (usually).
when a customer asks for it.
A product can be made either at home or in A service cannot be made or
Made and
Transported a factory. After production, it is transported transported. It is provided to the
to different places where shopkeepers sell it. customer at the time of delivery.
Same quantity The quality and quantity of the product will The quality and quantity of a service can
and quality be the same every time. be different at different times.
Who is an Entrepreneur?
The word “Entrepreneur” is derived from the French verb ‘entreprendre’ which means "to undertake". An
Entrepreneur is a person who invests his time, energy and money to initiate an exclusive idea for a new venture. He
starts his own start-up with the desire to establish it. He may earn profits or bear losses and is wholly responsible
for the unpredictable failures and risks.
They are the innovators of the market who see opportunities where others see roadblocks. The success of these
business innovators is undoubtedly essential to change our economy for the advancement of our societies.
Entrepreneurship is the act of executing an innovative idea in a business. The output of this innovative process of
setting up a business is called an enterprise.
Let's take an example:
Go Green Company is a successful entrepreneur project where a group of 5 college students decides to give plants
in their locality at cheaper price to support the Green Economy. In a year they got a wonderful response, so they
decided to open up their own nursery and supply plants in the whole city.
So in this example:
Group of college students is an Entrepreneur.
Innovative ways of running their own business is Entrepreneurship.
The output of this innovative process is Go Green Company, which is the Enterprise.
What is Entrepreneurship?
Entrepreneurship is setting your own business in an innovative manner which may have great risks and desires to
earn more profits. Entrepreneurship, thus involves taking risks with innovation, planning and decisions so as to
increase productivity in any field business, agriculture, social work, education, etc. It thus plays an important role
in the process of economic development. Entrepreneurship can be at small scale, medium scale or large scale in
terms of products and services. There are four main elements of entrepreneurship:
• Innovation: It means doing something in a creative and different way. This is the key element of entrepreneurship.
Opening a roadside restaurant is just like opening a business but bringing the element of "Home cooked food
for the people in a Food Truck" is called an innovation in business.
Entrepreneurial Skills-I 75

