NAME : AMOL MANE
CLASS : SY BMS
Div :A
Roll No : 10
SUB : BUSINESS PLANNING AND ENTREPRENEURIAL
MANAGEMENT
ASSIGNMENT
Q.1 Define entrepreneur? and explain the different types of entrepreneur?
Ans: The entrepreneur is defined as someone who has the ability and desire to establish,
administer and succeed in a startup venture along with risk entitled to it, to make profits. The
best example of entrepreneurship is the starting of a new business venture. The entrepreneurs are
often known as a source of new ideas or innovators, and bring new ideas in the market by
replacing old with a new invention.
DEFINITION:
One who creates a new business in the face of risk and uncertainty for the purpose of achieving
profit and growth by identifying opportunities and assembling the necessary resources to
capitalize on them.
Types Of Entrepreneur:
1. Business Entrepreneurs.
2. Trading Entrepreneurs.
3. Industrial Entrepreneurs.
4. Corporate Entrepreneur.
5. Agricultural Entrepreneur.
6. Retail Entrepreneurs.
7. Service Entrepreneur.
8. Social Entrepreneur.
Q. 2 Explain the internal and external factors for Entrepreneurial
motivation?
Ans: Entrepreneurial motivation is the process of transforming an ordinary individual to a
powerful businessman, who can create opportunities and helps in maximizing wealth and
economic It is defined as various factors stimulate desires and activates enthusiasm in
entrepreneurs which make them attain a particular goal. Entrepreneurship is the process of
identifying strengths and opportunities which help in the realization of one’s dreams for
designing, developing and running a new business by facing threats and risks effectively.
To become an entrepreneur one should identify their strengths and opportunities from the
external environment. Here motivation plays a major role in identifying their own strengths to
become strong leaders or powerful entrepreneurs which make them to accepting risks and face
uncertainty for the purpose of reaching pre-described goals.
Motivation makes entrepreneur by fulfilling higher level needs such as recognition, esteem, and
self-actualization. Various theories explained motivation as an influencing concept, it can bring
out hidden talents and creativity, and it contributes to the individual goals and society
development. Maslow’s need hierarchy theory, Hertzberg’s two-factor theory, and David MC
Clelland’s acquired needs theory proved that motivation can bring energy, enthusiasm, creativity
and efficiencies in fulfilling the desired objectives. Motivation activates innate strengths to
achieve a particular goal, many questions arise during knowing this concept such as why can’t all
the human beings become leader or entrepreneurs even though they face same motivation during
his/her lifetime? Who can become effective motivators? What type of motivation can influence
one’s behavior? Is the extent of motivation decides the power of externalized behavior? Etc,
entrepreneurial motivation is a psychological process in which all the motives may not influence
with the same intensity, it varies with the perception levels of the individuals and factors
responsible for the motivation. Sometimes a single motive can influence to become strong and
powerful entrepreneurs, these motives may come from various factors as follows.
Internal factors:
1. Need for self-actualization
2. Optimism
3. Positive attitude
4. Self-motivation
5. Commitment
6. Education
7. Financial background
8. Background
External factors:
1. Availability of resources
2. Product’s demand
3. Government policies
4. Information availability
5. Technological advancement
6. Changing tastes and preferences
Q. 3 What are the problems of starting a new venture? how it can be solved?
Ans: Starting a business is an exhilarating experience! Often the perception is the starting the
business will be the hardest part. Unfortunately, that’s often not the case. New businesses have
unique challenges that often seem to appear out of thin air and send businesses into a quick
[Link] of this challenge stems from the fact that businesses fail to anticipate these issues
on the road ahead. Here are a few problems that commonly impact a start-up:
Poor Market Research: You have a brilliant idea, but without a proper market-research
backing, your launch and growth strategy might be adversely impacted. Before investing, do a
little market research: find out the size of your target market, existing competition, and viability
of your product/service in current market conditions.
Lack of proper Business Plan: Writing a proper business plan will help you with the
following:
Focus the mission and vision of your business.
Highlight the customer problem your business is solving.
Define the target customer and market opportunity.
Outline how the business will run.
What the budget should be and realistically project how much money the business will
potentially make.
Don’t rush into new markets without a clear focus and a good business plan based on solid
market research and competitive analysis.
Poor Marketing Strategy: Once you have defined your target market, you need to devise
an effective marketing strategy. Print advertisements, TV and radio commercials could be costly
for you at this stage when you are just starting. If you believe that your potential customers can
be targeted online, then reach out to them through social media marketing or user-generated
review sites.
For a non-social network audience, ads in the cable TV, hand-outs with local newspapers and
pamphlets displayed in local prominent stores/restaurants can be very effective. Assess the
options that will work the best for you.
Cash Flow:
The majority of small businesses fail due to a cash crunch. A common mistake that most
entrepreneurs make is to assume immediate profitability that results either in the risk of raising
insufficient capital or investing heavily (and often unnecessarily) in luxuries like premium-priced
office furniture, top-of-the-line computer and telephone systems, hiring more employees than
needed etc.
Being optimistic is good, but be cautious about spending unnecessarily and start saving for a
rainy day like slow sales, market recession and slow/bad debts. Keep in mind, even during cash
flow problems you will still have employees and suppliers to pay.
Pricing:
One of the most common problems of new businesses is that they offer lower prices to beat the
competition. Large companies cut costs by purchasing in bulk and through exclusive supplier
contracts and better logistic planning. Therefore, these companies can offer rock-bottom prices
for their goods and services. It’s useless to compete with them by slashing your prices as it will
only eat up your profits. Instead, concentrate on offering fair market value for your products,
providing excellent customer service and better marketing.
Maintaining Work-Life Balance: A start-up is a serious commitment. Most entrepreneurs
are seen working around-the-clock to cater to the overwhelming demands of the business. This
stress often spreads into your personal life adding additional pressures. Remember, your family
and friends are your support group who will see you through the tough times. It’s a good idea to
make a work schedule and strictly adhere to it to strike the right balance between your work and
personal life.
I, Me, Myself:
Another common problem for most entrepreneurs is that they believe they can handle everything
by themselves. The ‘one-man army’ is undoubtedly cost-effective, but it is not a wise decision in
the long run. If you think you don’t need, or can afford full-time employees, then at least hire
part-time resources or help on a retainer basis.
The idea is not to frantically look for a person when you desperately need one. Good employees
are like long-term reliable assets, hence investing in them is crucial for the business.
Organizing the Company:
It might be regarding the process of business set up, choosing a good location for your business,
or taking into account applying and obtaining special permits/licenses to run your business; they
all sum up to how you have perceived your business concept and organized your priorities. You
can always avoid these problems by consulting a mentor, hiring people or buying programs that
can help you organize.
While there are many potential pitfalls, how you handle those problems will codify your
entrepreneurial skills and business acumen. The best solution is to take the time to do proper
research and planning when setting up your business to avoid most of the common issues.
Q.4 What do you mean by business plan? Explain the benefit of developing a
business plan?
Ans: A business plan is a written document that describes in detail how a business—usually
a startup—defines its objectives and how it is to go about achieving its goals. A business plan
lays out a written roadmap for the firm from marketing, financial, and operational standpoints.
Business plans are important documents used to attract investment before a company has
established a proven track record. They are also a good way for companies to keep themselves
on target going forward.
Although they're especially useful for new businesses, every company should have a business
plan. Ideally, the plan is reviewed and updated periodically to see if goals have been met or have
changed and evolved. Sometimes, a new business plan is created for an established business that
has decided to move in a new direction.
1. See the whole business: Business planning done right connects the dots in your business
so you get a better picture of the whole. Strategy is supposed to relate to tactics with strategic
alignment. Does that show up in your plan? Do your sales connect to your sales and marketing
expenses? Are your products right for your target market? Are you covering costs including
long-term fixed costs, product development, and working capital needs as well? Take a step back
and look at the larger picture.
[Link] Focus: Startups and small business need to focus on their special identities, their
target markets, and their products or services tailored to match.
[Link] priorities: You can’t do everything. Business planning helps you keep track of the right
things, and the most important things. Allocate your time, effort, and resources strategically.
[Link] change: With good planning process you regularly review assumptions, track
progress, and catch new developments so you can adjust. Plan vs. actual analysis is a dashboard,
and adjusting the plan is steering.
[Link] accountability: Good planning process sets expectations and tracks results. It’s a
tool for regular review of what’s expected and what happened. Good work shows up.
Disappointments show up too. A well-run monthly plan review with plan vs. actual included
becomes an impromptu review of tasks and accomplishments.
[Link] cash: Good business planning connects the dots in cash flow. Sometimes just
watching profits is enough. But when sales on account, physical products, purchasing assets, or
repaying debts are involved, cash flow takes planning and management. Profitable businesses
suffer when slow-paying clients or too much inventory constipate cash flow. A plan helps you
see the problem and adjust to it.
[Link] alignment: Does your day-to-day work fit with your main business tactics? Do
those tactics match your strategy? If so, you have strategic alignment. If not, the business
planning will bring up the hidden mismatches. For example, if you run a gourmet restaurant that
has a drive-through window, you’re out of alignment.
Q.5 What do you mean by Environmental scanning? Explain its benefits?
Ans: Meaning: In any business organization, there is an internal and external environment.
They comprise all the factors that can affect the business of a company in any way. And they also
present opportunities for the business to grow and threats that may harm the business. So these
environments need constant monitoring. This is where environmental scanning comes into the
picture.
Environmental scanning meaning is the gathering of information from an organizations internal and
external environments, and careful monitoring of these environments to identify future threats and
opportunities. It is the analyses of all factors that may affect the future of the organization.
Now that we know the environmental scanning meaning, let us see the purpose. The purpose of this
process of environmental scanning is to provide the entrepreneur with a roadmap to the changes
likely to happen in the future. So this way they can adapt the business to overcome the threats and
capitalize on the opportunities coming their way.
Benefits of Environmental Scanning:
[Link] and academic organizations respond quickly to changes in their current operating
environment. Information collected and analyzed during the environmental scanning process
allows organizations to make informed decisions about the overall health of their organizations.
Examining the external and internal environment allows organizations to identify strengths,
weaknesses, opportunities, and threats.
[Link] scanning improves organizational performance.
[Link] is an important component of the organization’s strategic planning process.
4. Helps in achieving OBJECTIVES: - When a company neglects to adjust its strategy
to the business environment, or does not react to the demands of the environment by changing its
strategy, the company cannot achieve success in attaining its objectives. However, environmental
analysis enables the business enterprises to study the environment and formulate the strategies
accordingly, which will result in successful attainment of objectives.
5. Identification of THREATS: - Business Environment analysis and diagnosis give
businessmen time to anticipate opportunities and to plan to take optional response to these
opportunities. It also helps strategies to develop an early warning system to prevent threats or to
develop strategies, which can turn a threat to the firm’s advantage.
6. Happenings in the Market PLACE: - Every firm should be in constant touch with the
market place and should be aware of what is happening in the marketplace. If the company fails
to adjust or react to the demands of the environment, by changing their strategies, it can’t achieve
corporate objectives.
7. Threats Inherent in any OPPORTUNITY: - Business Environmental diagnosis
helps the businessmen in two ways. 1. He can ascertain the possible threats to the business. This
will enable him to take proper preventive measures. 2. He can identify the opportunities and
avenues in which the businessman can operate successfully and achieve the object.
8. Forecasting the FUTURE: - Changes in the environment are often frequent and all of a
sudden. Moreover, such changes cannot be predicted precisely well in advance. Again, the
entrepreneur can anticipate only a few of such changes and not all. If the anticipations and
expectations are precise and accurate, the decisions are likely to be better. Hence business
environment analysis helps to forecast the future prospects of the business concern.
9. Threats and OPPORTUNITIES: - Some factors of the environment present threats to
the company’s present strategy and the accomplishment of the objectives. While some factors,
on the other hand, present greater opportunities for a great accomplishment of the objectives. A
thorough analysis of the environmental factors shall enable the analyst to recognize the inherent
risk involved and also enable him to take advantage of the opportunities. In every threat there is
an opportunity and, in every opportunity, there is a threat. By properly analyzing the
environment and anticipating the changes likely to occur in the environment, the business
manager can estimate the future and adjust his plans accordingly. Of course, not all the future
events can be anticipated but some can and are, the extent to which the expectations are accurate,
managerial decisions are likely to be better. Moreover, the process of environmental
analysis reduces the time pressures on a few which are not anticipated.
Q.6 Explain a different stages in a new product development?
Ans: New product development is the process of converting an idea into a workable software
product. The New Product Development (NPD) process is about grabbing the market
opportunity that revolves around customer needs, checking the idea’s feasibility, and delivering
working software.
On the other hand, Product Development is an umbrella term that sticks to the six stages of the
software development lifecycle and works on launching products that already have a Proof of
Concept (POC). Whereas the New Product Development approach revolves around working on
an entirely new idea, where the uncertainty around its development and subsequent adoption is
high. The seven stages of the New Product Development process include — idea generation, idea
screening, concept development and testing, building a market strategy, product development,
market testing, and market commercialization.
Stage 1: Idea Generation
Your goal should be to generate many worthy ideas that can form the foundation for the New
Product Development strategy. The major part of this stage should be to give significance to
brainstorming sessions where solving customer problems is given precedence.
Stage 2: Idea Screening
This New Product Development stage revolves around choosing that one idea that has the
highest potential of success. Put all the ideas available on the table for internal review, i.e., turn
to people with industry knowledge and experience in the field.
Stage 3: Concept Development & Testing
Before you start with the New Product Development process, building a detailed version of the
idea and the user stories should be given priority. This value proposition evaluation is the first
step towards concept development and testing.
Stage 4: Market Strategy/Business Analysis
Marketing strategy is all about drafting a way to reach out to the targeted audience.
Perhaps the best and most straightforward method is to follow McCarthy’s 4Ps of marketing for
your New Product Development project.
Stage 5: Product Development
When the New Product Development idea is in place, the market strategy is documented, and the
business analysis is completed — you can move on with the product development cycle.
Stage 6: Market Testing
This step in New Product Development aims to reduce the uncertainty revolving around the
success of the software product, i.e., checking the viability of the new product or its marketing
campaign.
Stage 7: Market Entry/Commercialization
Commercialization is an umbrella term that entails varied strategies to ensure the success of your
new product. Here is what commercialization includes: If all the mentioned strategies fall right
in place, nothing can stop your product from getting attention and being a product-market fit.
Q.7 Explain the concept of Marketing Mix and 4p’s of Marketing Mix?
Ans: The marketing mix refers to the set of actions, or tactics, that a company uses to promote
its brand or product in the market. The 4Ps make up a typical marketing mix - Price, Product,
Promotion and Place. However, nowadays, the marketing mix increasingly includes several other
Ps like Packaging, Positioning, People and even Politics as vital mix elements.
Marketing mix can be defined as a set of tactics of actions that a company uses to push their
products in the market. It is referred to as a marketing mix because it consists of four different
elements that have to be applied together in order to achieve positive results.
The 4 Ps of Marketing:
1. The First P of Marketing: Product
When you think about your product, consider exactly what you're selling. Is it a specific product?
Or is it a service? Your product can be a physical product, an online app, or a service such as
house cleaning. Really, anything that you're selling is the product. Then, think of your brand
messaging, the services you offer, and even packaging. When you define your product, think
about what problem your product solves for your customers. Consider how your product is
different from competing products. What features are unique to your product? It's important to
know your product intimately so you can market it.
2. The Second P of Marketing: Price
When it comes to price, you have to consider how much you're going to charge customers for
your products or services. Of course, you need to make a profit. When coming up with
your pricing strategy, you also need to think about what competitors are charging for the same
product or service and how much customers are willing to pay. You can also think about what
discounts or offers you can use in your marketing. When you decide on a price, you want to
think about perception. Do you want to be known as a cost-effective option in your industry? Or
perhaps you're a luxury brand and the price is slightly higher than competition on the market.
Keep in mind that pricing SaaS products is a little different than pricing physical products
Either way, the language you use to market your product will be greatly impacted by the price of
your product.
3. The Third P of Marketing: Place
When it comes to place, this might mean the physical location of your company, but it could also
be defined as anywhere you sell your product, which might be online. The place is where you
market and distribute your product. Remember that not every place makes sense for every
product. For example, if your target market is seniors, then it won't make sense to market on
TikTok. It's important to choose the right places to market your product and meet your customers
where they're at. Think about possible distribution channels and outlets you could use to sell
your product. Be sure to take into account whether your business is B2B or B2C.
4. The Fourth P of Marketing: Promotion
Promotion is the bread and butter of marketing. This is when you'll think about how to publicize
and advertise your product. Additionally, you'll discuss brand messaging, brand awareness,
and lead generation strategies. When it comes to promotion, keeping communication in mind is
of the utmost importance. What messages will resonate with your target market? How can you
best promote your product to them? Think about where, when, and how you'll promote your
brand.
Q. 8 Define Social Entrepreneurship and their characters?
Ans: Social entrepreneurship is, at its most basic level, doing business for a social cause. It
might also be referred to as altruistic entrepreneurship. Social entrepreneurs combine commerce
and social issues in a way that improves the lives of people connected to the cause. They don’t
measure their success in terms of profit alone – success to social entrepreneurs means that they
have improved the world, however they define that.
Beyond that, however, there are differing opinions about what constitutes social
entrepreneurship. Some believe the definition applies only to businesses that make money and
work toward improving a designated problem by selling something to consumers. Others say
business owners who work to solve a social problem using grant or government money are also
social entrepreneurs.
1. Curiosity: Social entrepreneurs must nurture a sense of curiosity about people and the
problems they face. The best social entrepreneurs seek to truly understand the needs and desires
of the people they serve. Great social ventures often start through immersive market research, an
empathy-centric process through which social entrepreneurs gain knowledge in the field.
2. Inspiration: In order to design effective solutions, social entrepreneurs must be inspired by
the people and problems they encounter. Inspiration motivates action and helps social
entrepreneurs tackle challenges that others shy away from addressing.
3. Resourcefulness: In the world of social entrepreneurship, key resources, such as human
and financial capital, can often be scarce. Successful social entrepreneurs know how to leverage
the resources at their disposal and develop innovative methods to overcome obstacles.
4. Pragmatism: Changing the world takes time, effort, and experimentation. While visions
for massive social change may provide their inspiration, experienced social entrepreneurs know
that they need to take small steps in pursuit of their goals. Great social ventures are not born
overnight!
5. Adaptability: Social entrepreneurs must remain open to solutions. This includes knowing
when to pivot and change their strategies if their initial methods do not succeed. Adaptability and
flexibility are integral in the development of early-stage social enterprises.
6. Openness to Collaboration: While embarking on a quest to change the world may feel
lonely, it is important to remember that social entrepreneurship is a team sport, and other people
are willing to help. Social entrepreneurs need to stay open and attentive to potential partnership
and collaboration opportunities. In many cases, collaborative initiatives and joint-ventures can
achieve social/business goals much more effectively than solo endeavors.
7. Persistence: Social entrepreneurs take on some of the most daunting challenges our society
has to offer. This often creates a recipe for early-stage failures. However, the successful social
entrepreneurs are the ones who persist past initial setbacks and persevere to deliver effective
solutions. Experienced social entrepreneurs know how to learn from failures, adjust their
methods, and make continual strategic improvements. Don’t give up if at first you don’t succeed!
Q.9 Explain the role and function of national institute for entrepreneurship
and small business development?
Ans: The National Institute for Entrepreneurship and Small Business Development is a premier
organization of the Ministry of Skill Development and Entrepreneurship, engaged in training,
consultancy, research, etc. in order to promote entrepreneurship and Skill Development. The major
activities of the Institute include Training of Trainers, Management Development Programmes,
Entrepreneurship-cum-Skill Development Programmes, Entrepreneurship Development
Programmes and Cluster Intervention.
The role of National Institute for Entrepreneurship and small business is:-
1. To standardize and systemize the processes of selection, training, support and sustenance of
potential and existing entrepreneurs.
2. To support and motivate institutions/organizations in carrying out training and other
entrepreneurship development related activities.
3. To serve as an apex national level resource institute for accelerating as well as enhancing the
process of entrepreneurship development, to measure the impact of the same within different
strata of the society.
4. To provide vital information and support to trainers, promoters and entrepreneurs by
organizing research and documentation activities relevant to entrepreneurship and skill
development.
5. To create a holistic environment to train the trainers, promoters and consultants in diverse areas
of entrepreneurship and skill Development.
6. To offer consultancy nationally/internationally for promotion of entrepreneurship and small
business development at national and international level.
7. To provide national/international forums for interaction and exchange of ideas for policy
formulation and its refinement at various levels.
8. To share experience and expertise in entrepreneurship development across national frontiers to
create awareness on it at national level.
The Function of National Institute for Entrepreneurship and small
business is:
(i) Evolving effective training, strategy and methodology.
(ii) Formulating scientific selection procedure
(iii)Standardising model syllabus for training for various groups.
(iv) Developing training aids, manuals and other tools.
(v) Supporting 9ther agencies engaged in entrepreneurship development.
(vi) Conducting such programmes for promoters, trainers and entrepreneurs which are commonly
not undertaken by other agencies
(vii)Organising all those activities that help develop entrepreneurial culture in the country.
(viii) Publishing literature for furtherance of entrepreneurship and small business development.
Q.10 Define Business ethics? Explain the approaches to managing the ethics?
Ans: Business ethics is the study of appropriate business policies and practices regarding
potentially controversial subjects including corporate governance, insider trading, bribery,
discrimination, corporate social responsibility, and fiduciary responsibilities. The law often
guides business ethics, but at other times business ethics provide a basic guideline that
businesses can choose to follow to gain public approval. Ethics means the set of rules or principles
that the organization should follow. While in business ethics refers to a code of conduct that
businesses are expected to follow while doing business. Through ethics, a standard is set for the
organization to regulate their behavior. This helps them in distinguishing between the wrong and the
right part of the businesses.
The ethics that are formed in the organization are not rocket science. They are based on the creation
of a human mind. That is why ethics depend on the influence of the place, time, and the situation.
1. Consequence Based Approach
Managers check their decisions through this approach. Here, the emphasis is on the action and
not the reason behind the action. It measures positive and negative outcomes. If positive effects
outweigh the negatives, company decisions are justified.
In this approach, managers analyse the potential options before taking a specific action. For
example, a manager might receive more revenue from fees or company donations from bringing
on a certain event in a city. It can be an adventure programme such as boxing, but it will have a
harmful effect on a number of residents.
2. Moral Rights Approach
In this strategy, managers adopt a moral code that takes care of natural and moral rights. It
includes the right to speech, life, and protection, and to express emotions, etc.
Managers reveal all the necessary details in the annual reports. When disclosing information, its
time and validity are taken into account.
For example, a manager may see that it is difficult for some of the workers to engage in official
training. It might be because they lack the necessary skills. Or, they might have a different
challenge in participation. Some might even have a financial crisis.
3. Social Justice Approach
Managers who take the social justice approach look for equality and fairness. No one is
discriminated against based on caste, religion, race, or gender. But differences are justified based
on skills or performance.
For example, workers belonging to any gender, with the same abilities are equal. But treating
employees who produce better than those who make less is justified.
