Entrepreneurship Skills 1 - Part 2

Entrepreneurship Skills 1 - Part 2

By Anshuta Gadkar

Learning Objectives

​Session 4: Distinguishing Characteristics of Entrepreneurship and Wage Employment

​Session 5: Types of Business Activities

​Session 6: Product, Service and Hybrid Businesses

Session 7: Entrepreneurship Development Process

Session 4 - Distinguishing Characteristics of Entrepreneurship and Wage Employment

​Sweet Shop

​Case Study

​Profit: M/s Ram Prasad owns a sweet shop in a remote village. He incurs a total cost of Rs 35 per kg of sweets and sells at a rate of Rs 42 per kg to customers. The

amount of profit earned by Ram Prasad’s sweet house amounts to Rs 7/kg, i.e., Rs 42–Rs 35 = Rs 7 per kg. The profit earned is the excess earning after deducting

all expenses.

​

Risk: A situation where the result is not known and could lead to a loss. For example, when I am making 10 kg of sweets, I risk spending Rs 300/- on buying milk,

sugar, maida and some other person may also start the same business in the same area and sell sweets at a lower price.

Entrepreneurship is not without risks but

entrepreneurs are not afraid of taking calculated risks.

Taking risks can lead to failure but failure is acceptable

and entrepreneurs continue their course of action till

they succeed.

​Characteristics of Entrepreneurship

1. Ability to take up risks

2. Believe in hard work and discipline

3. Adpatable and flexible to achieve the goals of enhancing quality and customer satisfaction

4. ​Knowledge of the product and services and their need or demand in the market

5. ​Financial literacy and money management skills

6. ​Effective planning and execution.

Wage Employment

​Employer- Employee

Poll

1. Allows a person to make money

• Entrepreneurship

• Employment

Poll

2. Finding solutions for a community

problem by himself/herself

• Entrepreneurship

• Employment

Poll

3. The job done by the person is decided by

himself/herself

• Entrepreneurship

• Employment

Poll

4. Use personal knowledge and interest to

make money for oneself

• Entrepreneurship

• Employment

Poll

5. Use innovation and creativity to attract

clients

• Entrepreneurship

• Employment

Poll

6. Keep most of the money, i.e., profits made

for a product/ service

• Entrepreneurship

• Employment

Poll

7. Takes risk to make profit

• Entrepreneurship

• Employment

Benefits of entrepreneurship

1. Do what you are interested in

2. Work for yourself, and not for others

3. Make profits for yourself

4. ​More risk, more profit

Multiple Choice

(a) Rahul starts a shop to sell Chaat and special Paani

Puri. He is an ______________________

• Entrepreneur

• Employee

Multiple Choice

b) Shahid becomes the manager of a dealership selling

food products. He is an ______________________

• Entrepreneur

• Employee

Multiple Choice

(c) Ritu leaves the company she worked for and starts

catering food for marriage programmes. She is an

_________________.

• Entrepreneur

• Employee

Session 5: Types of Business

Rahul - the Cricketer

​Case Study

Rahul loved cricket! His favorite player was Sachin Tendulkar and he never missed a match. He went for daily practice with his friends in the park. He was an

all-rounder, like M.S. Dhoni, but he wanted to be a great batsman. He started improving in his game and at the age of 16, he played for the state team. His team lost, but he was sure that he would play for India one day. He was a great player and everyone in his village came to him for advice on cricket. Rahul kept trying but did not get to join any team. Perhaps Rahul could have thought of other options to

stay in touch with his passion for cricket.

Start a Cricket

Coaching Centre​

Start a Sports

Shop​

Sports Academy​

Start a Cricket

Coaching Centre​

Start a Sports

Shop​

Sports Academy​

​Service

​Product

​HyBrid

​TYPES OF BUSINESSES

Multiple Choice

1. Arun bakery, which makes and sells bread to people.

• Service

• Product

• Hybrid

Multiple Choice

2. Ram’s repair shop, which repairs motorcycle.

• Service

• Product

• Hybrid

Multiple Choice

3. Hari’s hair-salon, where he cuts hair for women and

men and sells shampoos ,conditioners etc.

• Service

• Product

• Hybrid

Session 6 - Products,Services

Open Ended

Share your opinion: Which type of business is good? And why?(One reason)

Session 7- Entrepreneurship Development Process

​Steps of starting a

business

​Steps	​Details
​Idea	​The first step is to come up with a business idea. A business idea could be based on (a) Something you are interested in doing (For example, making Dosa) (b) A need you see in the market (For example, Tasty food next to the station)
​Getting money and material	​Once you have the idea, you can start on a small scale with some money which will help you in buying basic material.
​Understanding customer needs	​Once you start selling, you will find out what your customer likes and wants. You will also find out what your customer does not like during this stage.
​Improving Product/ service	​You can use this knowledge of what your customer likes and does not like to improve your product.

​Steps of starting a business