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Limited Company: A company is a group of people who start a business to make a profit. There are two
main types, i.e., Private Companies and Public Companies. Private companies have up to 200 members
and their shares are not available to the general public. Public companies can have unlimited members
(minimum 7 members) and their shares are sold to the public. Private companies only need a certificate of
incorporation to start, while public companies need both a certificate of incorporation and a certificate to
commence business.
Corporation: A legal entity that is separate from its owners, providing limited liability to its shareholders.
For example, Regional Banks, local branches of large retail chains, community hospitals, and local tech
startups incorporated as C Corporations (A standard corporation where profits are taxed separately from
its owners. Shareholders are taxed on dividends received) or S Corporations (A special type of corporation
that avoids double taxation by passing profits and losses through shareholders’ personal tax returns.
It is subject to specific eligibility requirements).
SESSION 7 Entrepreneurship Development Process
The Entrepreneurship Development Process refers to the steps and stages an individual or group takes to start
and grow a successful business. It involves turning ideas into reality by acquiring necessary skills, resources,
and strategies.
ENTREPRENEURSHIP DEVELOPMENT PROCESS
Entrepreneurship development is all about building the skills and knowledge necessary to start and manage
a business. This can be done through formal methods, like structured training programs that provide specific
business skills, or through informal methods, such as learning from real-life experiences. Now we’ll delve
into how entrepreneurs develop their skills and qualities by examining real-life examples of successful
entrepreneurs. By exploring these stories, you’ll gain insight into what makes someone successful in business
and evaluate if you possess similar qualities.
Steps of Starting a Business
To start a business, follow the given steps:
Step 1: Idea: Starting a business begins with coming up with a solid idea. This idea should feel right to
you—something you’re passionate about or a solution to a problem you’ve noticed around you.
a. Follow Your Passion
Think about something you genuinely enjoy and are good at, try and turn that passion into a
business. When you do what you love, it shows in the quality of your work, and customers will
notice too.
b. Solve a Problem
Look around for things people need but don’t have. For example, if you’ve noticed that commuters
near a train station struggle to find tasty, affordable food, you could fill that gap with a food stall
or small restaurant. Solving a real problem can make your business stand out.
Entrepreneurial Skills-I 87

