Page 14 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Unit 1: Entrepreneurship: A world of Opportunity

Notes

Notes While having a high ambition, he should not build castle in the air. He should have
to fix up a well-defined goal through well-thought planning. Thereafter with the help of
his efficiency, ability and initiative, he should try to achieve the goal.

11. Risk-bearer: It is needless to say that an entrepreneur has to bear the various risks
concerning the enterprise. Without risk bearing, his enterprise activities cannot be
conducted. The capacity of an entrepreneur to bear the risks is his inherent feature. He has
to bear always the risks in case of production of any new product or service. There are
various types of risks to be borne by him. These are risks associated with procurement of
raw materials and capital and marketing of goods, etc. this risk bearing is the prerequisite
to his success. This is the part and parcel of his daily activities.

12. Adventurer: After thinking over various matters, an entrepreneur undertakes his venture
and after evaluating pros and cons of all the matters, he selects the most suitable one.
While making selection, he requires to be a bit adventurer. This quality is such an outlook,
which leads him to accept the challenge in various adverse situations.

Self Assessment

Fill in the blanks:

12. Entrepreneur possesses that special ………….. which is generally not found in common
man.
13. ………………………… is rightly known as an innovator who engages himself to innovate
new varieties of products, explores new market horizons, and introduces new techniques
of production and methods of reconstruction of industries.

1.5 Factors Influencing Entrepreneurship

Following are the various factors that influence entrepreneurship:
1. Educational: There is a need to have drastic changes in educational pattern to make it
more relevant to the needs of the time, economic, social and political environment. More
and more young minds should be trained to create avenues for self-employment. Designing
a suitable programme of entrepreneurial education and introduction of entrepreneurship,
as a subject for study even at the school level to make the young minds realize the
importance of entrepreneurship are the need of the hour.

2. Legal: The law must protect the weak till the time they need it. Entrepreneurs in small
sectors have limited resources and cannot compete with large-scale manufactures.
Reservation of certain items of products for exclusive production in small sector is one
such legal measure to protect the interests for small-scale entrepreneurs.
3. Infrastructure: Land and factory sheds at concessional rates, adequate supply of power,
water, coal and other sources of energy, transport facilities, availability of wagons, supply
of raw materials and other physical facilities should be provided by the Government to
facilitate setting up of new enterprise.
4. Institutional: Entrepreneurs need advice on the lines of manufacture, which may be
suitable, sources of raw materials, finance and other facilities like technical know-how,
tools and equipments, etc. The entrepreneurs also need to know about the opportunities

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