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Factors Businessman Entrepreneur
Market Player who creates his own place in
Market Status Market Leader who creates his own market.
the existing market.
Risk Factor Risk factor is less. Risk factor is high.
Procedures Businessman follows traditional procedures. Entrepreneur follows unconventional procedures.
Competition High Low
Focus Profits Customers, employees, profits and society
REVISIT
▶ A business is a state of being busy as an individual or as an organisation in a profit earning economic activity.
▶ The main objectives of a business are to meet economic, social, employee and national goals.
▶ There are three types of businesses: Product, Services, and Hybrid.
▶ An Entrepreneur is a person who invests his time, energy and money to initiate an exclusive idea for a new venture.
▶ Entrepreneurship is the act of executing an innovative idea in a business.
▶ The output of the innovative process of setting up a business is called an enterprise.
▶ The main elements of entrepreneurship are: Innovation, Organisation, Risk Bearing, and Perception.
▶ Entrepreneurs help in increasing foreign exchange reserves of the country, thereby increasing economic
development.
▶ An entrepreneur should have good social skills to build his network of potential investors, suppliers,
customers, and creditors.
▶ Feeling a large responsibility for the business may sometimes be scary and brings a lot of mental instability,
funds management, unpredictable market, employees' reactions and sometimes less time for family may lead
to emotional setback for an entrepreneur.
▶ An entrepreneur lives his own dreams. He can pursue what he is passionate about in his life.
Exercise
Solved
SECTION A (Objective Type Questions)
A. Choose the correct option.
1. In business, which of the following, along with the profits, is equally important?
a. Family trips b. Child education
c. Old parents' medicine d. Customer Satisfaction
2. Which of the following business type uses raw material, labour, technology, capital and other resources for the production
of finished goods?
a. Manufacturing b. Service
c. Merchandise d. All of these
Entrepreneurial Skills-I 133

