Brief Answer Questions
1. Mention the types of rural entrepreneurship.
The types of rural entrepreneurship are listed below:
- Farm entrepreneurship
- Artisan entrepreneurship
- Merchant and traders
- Tribal entrepreneurship
2. What is rural entrepreneurship?
Rural entrepreneurship is the creation of a new organization that introduces a new product, serves or creates a new market or utilizes a new technology in a rural area. In other words, it refers to the establishment of entrepreneurial activities in the rural areas.
3. What is tourism entrepreneurship?
Tourism entrepreneurship is defined as the professional application of knowledge, skills and competencies and/or of monetizing tourism related new idea. In other words, tourism entrepreneurship embraces all sorts of activities involved in creation and operation of a legal tourism enterprise.
4. What do you mean by socio-economic growth?
Socio-economic growth refers to the process of social and economic development in a society. The socio-economic growth is measured in terms of indicators like GDP, life expectancy, literacy, levels of employment, etc.
5. Enlist the economic factors affecting entrepreneurial growth.
Economic factors affecting entrepreneurial growth are:
- Raw material
6. Write the social factors affecting entrepreneurial growth.
Social factors affecting entrepreneurial growth are enlisted below:
- Legitimacy of entrepreneurship
- Social mobility
7. Point out the types of tourism entrepreneurship.
Types of tourism entrepreneurship have been listed below:
- Travel agents
- Lodging and catering service providers
- Information and guiding
- Transport operators
8. What do you mean by social entrepreneurship?
The form of entrepreneurship that develops funds and implements innovative solutions to socio-cultural or environmental issues is known as social entrepreneurship. In other words, the form of entrepreneurship that focuses on uplifting the standard of marginalized and poor people in the society is known as social entrepreneurship.
9. Define strategic entrepreneurship.
As the term itself suggests, strategic entrepreneurship is the intersection between strategic management and entrepreneurship. It is a movement by scholars that combine certain aspects of both areas (strategy and entrepreneurship) to create a new concept.
Short Question Answer
1. Explain the factors affecting rural entrepreneurship.
Many factors affect the proper development of rural entrepreneurship. A few factors that affect rural entrepreneurship are discussed below:
- Availability of Capital: Capital is the most important factor that determines the development of entrepreneurship. Rural entrepreneurship is no exception. If the capital is available easily, it facilitates entrepreneurship and vice-versa.
- Availability of Raw Material: Raw material is the basic input in all kind of production process. For a rural entrepreneurship to grow; raw materials must be available in abundance. It is thus important that raw material base is strengthened in the rural area.
- Institutional Support: Having institutional support from all kind of institutions is important. Rural areas that have proper access to institutional support in government offices, financial institutions, etc. foster rural entrepreneurship.
- Training and Education: People in the rural area lack proper training and education that fosters entrepreneurial skills. It is thus essential that college and training institutions are opened in abundance which helps to develop entrepreneurial attitude among rural people.
- Development of Infrastructure and Facilities: Transportation, communication, security, etc. are pre-requisites for entrepreneurship. Better the infrastructure facilities; easier the starting of entrepreneurial ventures. It is thus important that infrastructures are properly established in the rural area.
2. Write the importance of rural development.
Importance of Rural Entrepreneurship
The primary importance of rural entrepreneurship is discussed below: i. Employment generation: Rural Entrepreneurship is labour intensive. Hence, they create large-scale employment opportunities for the rural people. The primary problem of widespread unemployment and underemployment of rural Nepal can be effectively tackled through rural entrepreneurship
- Proper utilization of local resources: Many rural areas are rich in raw materials and labour. Rural entrepreneurship helps in the utilization of these local resources. Moreover, they play a crucial role in mobilizing rural saving which helps in increment of rural funds.
- Prevents rural exodus: If we look at the rural-urban migration tendency of Nepal, it is alarming. Lack of employment opportunities, heavy population pressure, and poverty, etc. have forced the rural people to move to urban areas for livelihood. With the development of rural entrepreneurship, the independence of rural people increases thereby reducing rural exodus.
- Balanced development: Rural Entrepreneurship fosters economic development of rural areas by providing employment opportunities to the local people. As the society develops in every sense, it reduces the gap between rural and urban area. As the rural-urban migration is minimized, it reduces the disproportionate growth of urban areas. This way it helps to have a balanced regional development.
- Environment-friendly: Majority of rural entrepreneurship is based on local rural technology that is environment-friendly. They pollute less and are minimalistic in the exploitation of resources.
- Promotion of culture: Rural culture, resources, and traditional technology are our heritage. Rural entrepreneurship promotes them and helps to retain and conserve the identity of the country.
3. Explain in brief the problems of rural entrepreneurship.
Problems of Rural Entrepreneurship
The key problems faced by rural entrepreneurship in Nepal are discussed below:
- Financial problems: Most of the rural entrepreneurs in Nepal find the are problem to generate fund for their venture. They fail to get external funds due to lack of real security and credit in the market. Moreover, the procedure to avail loan facility is too time-consuming and full of hassle. As such, rural entrepreneurs often have to depend on personal savings and family which may not be sufficient.
- Competition: Rural entrepreneurs face severe competition from large sized organizations and urban entrepreneurs. They can not compete with them on elements such as the cost of production, economies of scale, product quality, marketing, etc.
- Middleperson: Rural entrepreneurs have no access to big market and industries. Hence, they have to be heavily dependent on the middle person for marketing and distributing their products. These middleperson pocket a significant amount of profit thereby preventing these entrepreneurs their true due.
- Legal formalities: Rural entrepreneurs often find it tough in complying with various legal formalities and licenses of establishing new ventures due to ignorance and illiteracy.
- Lack of technological know-how: Rural entrepreneurs lack proper knowledge about modern innovation and technology. They still adopt obsolete technology and are labour based. Factors like those have a negative impact on the growth of rural entrepreneurs.
- Prone to salaried employment: The rural people of Nepal find salaried government jobs more attractive. They relate these jobs to a stable income, a lesser degree of responsibility, respect, etc. Due to which, family society and support system are not conducive to encourage rural people to take entrepreneurship as a career.
- Poor infrastructure facilities: Infrastructures like transportation. communication, security, etc. are scarcely developed in rural part of the country. Lack of these creates an unfavourable condition for running business. Rural entrepreneurship thus suffers from a lack of infrastructural facilities.
- Low-risk bearing capacity: Rural entrepreneurs lack financial resources and external support. Due to which rural entrepreneurs, have low risk bearing capacity.
- Poor quality of products: Rural entrepreneurial activities often lack standard tools, equipment, and raw materials. Due to which, the products developed are poor in quality which makes it difficult to compete with others.
4. Explain in brief the types of rural entrepreneurship.
The major types of rural entrepreneurship are discussed below:
- Farm Entrepreneurship: Entrepreneurship that is related to the occupation of farming is known as farm entrepreneurship. For farm entrepreneurs, the major source of their livelihood is agriculture.
- Artisan Entrepreneurship: Entrepreneurship that is related to some forms of artistry is known as artisan entrepreneurship. The skills related to artisan entrepreneurship can be inherited and refined. It includes masonry, black-smithy, carpentry, repair of pump-sets, art, board painting, etc.
- Merchants and Traders: Entrepreneurship associated with activities related to trading of goods and services needed by rural people. They may produce those goods themselves or act as middleperson.
- Tribal Entrepreneurship: Entrepreneurial activities that are predominantly carried out by people living in tribal parts of the country are known as a tribal entrepreneurship. Although Nepal has very few tribal communities; tribal entrepreneurs are common in countries like India, Indonesia, and many African countries.
5. Explain about the types of tourism entrepreneurship.
Types of Tourism Entrepreneurship
The major types of tourism entrepreneurship are discussed as follows:
- Travel Agents: Private retailers that provide a variety of service related to travel and tourism are known as travel agents. They provide services to the general public on behalf of suppliers such as hotels, airlines, car rentals, package tours, etc.
- Tour Operator: A tour operator is a service provider that combines different travel and tour components to create a package holiday. Tour operators purchase these travel and tour components in bulk and then combine to form a package to resell them for a profit.
- Lodging and Catering Service Providers: Lodging also known as hotel accommodation refers to a typical residential accommodation, whereby individuals who travel for more than a day needs lodging for sleep, rest, safety, etc. Lodgings may be catering or self-catering. In the case of catering, no food is provided, but cooking facilities are available.
- Transport Operators: Transport operators are service providers that provide formal transport services to the tourists. They could be anyone ranging from airlines, cruises to car and bus rentals. They take tourists from one place to another facilitating their travelling.
- Attractions: Attractions are other major categories of tourism entrepreneurship, whereby museums, galleries, parks, heritages buildings, etc. are developed to attract and engage the tourists.
6. Discuss the problems of tourism entrepreneurship.
The biggest problems related to tourism entrepreneurship are discussed as follows:
Lack of Proper Infrastructure: There is no doubt about the richness of Nepal regarding natural beauty, arts, and architecture, culture, religion, etc. Nepal has failed to take advantages of its diversities and uniqueness due to lack of proper infrastructures. Lack of infrastructures like transportation, communication, lodging, and catering, etc. have affected tourism entrepreneurship.
Lack of Tourism Centre: Information is part and parcel of every entrepreneurial activity. Tourism is no different. However, the country Nepal lacks tourism centre that provides authentic information in quick time and guides the tourist that intent to come to Nepal. It has negatively affected the number of tourist visiting Nepal, thereby also affecting the tourism entrepreneurship.
Lack of Publicity: Those who publicize can sell even the most inferior products. The previous line may be best sums up the significance of publicity in modern day. Nepal has not been able to publicize its incredible natural al beauty; cultural heritage, religious harmony both at national and international level. When people are not aware of what amazing experiences you can give, it discourages the tourism entrepreneurship. Tourism is a luxury aspect of human life. Tourist visit places for [sightseeing, entertainment, etc. They don’t prefer places that are politically unstable and insecure. In the last two decades, Nepal 16 symbolizes strikes, bandas, lack of security, political revolts, etc. A situation like this has adversely affected tourism entrepreneurship.
7. Write about the factors that affect tourism entrepreneurship.
Factors Affecting Tourism Entrepreneurship
They key factors that affect tourism entrepreneurship are explained as follows:
- Participation of Private Sector: Government on its own cannot drive the cart of the development of tourism in a country. The participation of private sector is equally important. Private sectors should come forward and lead the growth of various elements of tourism industries. If there is collaboration between government organizations and private sectors; tourism entrepreneurs flourish and vice-versa.
- Development of Tourism Infrastructure: Nepal is amazing in every aspect, yet its tourism potentiality is yet to be tapped. One primary reason for this is the lack of tourism infrastructure. Development of tourism infrastructure is thus another important factor that affects tourism entrepreneurship. Transportation, communication, lodging and catering, information centre, security, etc. must be developed so that tourism entrepreneurship can flourish.
- Diversification of Tourism: The diversity of Nepal must be tapped if tourism entrepreneurship is to flourish. Improvement on religious sites should be made to promote religious tourism. Likewise, adventure, sports, trek, must be created to develop adventure tourism. Effort must be carried out on agricultural tourism, health tourism, conference tourism, etc. so as to create a favourable situation for tourism entrepreneurship. developing
- Encouragement in Local Investment: When local people are encouraged for investment in the tourism sector, it develops a sense of commitment towards the tourism efforts. In this another critical factor that affects tourism entrepreneurship is the institutional encouragement of local investment.
Analytical Answer Questions
1. Define entrepreneurship growth. Discuss the emerging concepts in entrepreneurship growth.
Concept of Entrepreneurship Growth
Entrepreneurship growth refers to the development in the field of entrepreneurial activities. Entrepreneurship growth is directly related to various aspects of entrepreneurship like capital formation, production improvement, innovation, employment creation, etc. entrepreneurship growth is considered as the catalyst of prosperity in a country.
Emerging Concepts in Entrepreneurship Growth
A few emerging concepts in entrepreneurship growth are explained as follows:
- Social entrepreneurship: The form of entrepreneurship that develops funds and implements innovative solutions to social, cultural or environmental issues is known as social entrepreneurship. In other words, the form of entrepreneurship that focuses on uplifting the standard of marginalized and poor people in the society is known as social entrepreneurship. However, it does not stop there. It is about developing sustainable approaches to benefit the society in every possible way. The key areas of social entrepreneurship are listed below:
- Education Health
- Human rights
- Economic development, etc.
In recent times, more and more people are coming up with brilliant social entrepreneurship ideas. Grameen Bank in Bangladesh is one such example of social entrepreneurship.
- Strategic entrepreneurship: As the term itself suggests, strategic entrepreneurship is the intersection between strategic management and entrepreneurship. It is a movement by scholars that combine certain aspects of both areas (strategy and entrepreneurship) to create a new concept.
As per the concept, the focus is on an achievement of superior firm performance through simultaneous opportunity-seeking and advantage seeking behaviour. Strategic entrepreneurship primarily acts as the catalyst that facilitates the firms’ efforts to identify the opportunities is matched to their resources. Once the matching is done, it exploits them with the discipline of a strategic business plan. Many large firms today approach their business in the form of strategic entrepreneurship. For example: many entrepreneurial activities adopted by CG.
- E-entrepreneurship: If any form of entrepreneurship has revolutionized the modern world, it is e- entrepreneurship. E entrepreneurship refers to the establishment of the new entrepreneurial venture with an innovative business idea within the net economy which using an electronic platform in data network, offers its a products/services based on a purely electronic creation of value. E entrepreneurship has been possible through the development of information technology. E-entrepreneurship operates in a highly competitive, fast moving, and highly uncertain, unknowable and unpredictable context. Since the barriers are minimal, there is a high possibility of imitation of innovation. The primary types of e entrepreneurship along with examples are given below:
B2C: B2C stands for business to consumer e-entrepreneurship. It focuses on selling products directly to the individual shoppers. For examples; www.hilltake.com.np
B2B: B2B stands for business to business e-entrepreneurship. It focuses on selling goods and services to the business. For example; www.milpro.com
C2C: C2C stands for the consumer to consumer electronic commerce. It is an e-entrepreneurship that involves consumers selling directly to consumers. For example; www.hamrobazaar.com
- Green entrepreneurship: Green Entrepreneurship is the approach that consciously addresses an environmental/social/problem/need through the realization of entrepreneurial ideas with a high level of risk, which has a net positive effect on the natural environment and at the same time, is financially sustainable. Green entrepreneurship adopts principles, policies, and practices to improve the quality of life of the customers, employees, communities and the planet.
In this regard, green entrepreneurs are someone who starts and run an entrepreneurial venture that is designed to be green in its products and processes from the very moment it is set up. A few salient characteristics of green entrepreneurship are listed below:
- Socially and environmentally responsible
- Care to the workers.
- Protection of customer and client welfare
- For example; entrepreneurship related to organic and vegan beauty products.
2. State and explain the factors affecting entrepreneurial growth.
Factors Affecting the Entrepreneurial Growth
The primary factors that affect the entrepreneurial growth are discussed below:
- Economic factors: Economic factors include
- Capital: It is one of the prerequisites activities for establishing enterprises. Supply and easier availability of capital directly influences the birth and growth of entrepreneurship. Lack of adequate capital acts as the major impediment to entrepreneurship and its abundance acts as the lubricant to it. Thus, it sets the constraints on entrepreneurial activities or acts as the smooth gear in entrepreneurship emergence and development.
- Labour: Yet another factor that influences the emergence of entrepreneurship is the quality of labour along with its quantity. The supply, quality, and ability of labour force have a very high impact on entrepreneurial growth and development. Hence, the availability of skilled labour is essential for the development of entrepreneur. It is regarded that the productivity in Japan is high due to labour being very efficient and skilled. The more flow of foreign direct investment to the countries having cheap and skilled labour proves the significance of labour in entrepreneurship development.
- Raw material: The availability and supply of raw material and resources at reasonable rate is one of the factors that influence the emergence of entrepreneurship. Presence of raw material motivates etrepreneurs to establish entrepreneurship and vice versa. In its absence, neither any enterprise can be established, nor will entrepreneur come forward.
- Market: The potential of market influences the growth of entrepreneurship. Higher the potential market, greater will be the entrepreneurship practices and vice versa. The reason for this is the final destination where the fate of both entrepreneurs and consumers are determined. The market size and its composition both influence entrepreneurship emergence and development. The reason behind the low growth of entrepreneurship in Nepal is due to its small size and limited market.
- Social factors: Social factors constitute a social system where the entrepreneurship emerges and operates to satisfy social needs. The key social factors include:
- The legitimacy of entrepreneurship: The degree of approval that a society grants to the entrepreneurship is known as the legitimacy of entrepreneurship. If the degree of legitimacy is high; the entrepreneurship is facilitated and vice-versa.
- Social mobility: The movement of individuals, families, household, etc. within or between social groups in a society is termed as social mobility. How, well the section of people move from one social class to another impacts the growth of entrepreneurship. A high degree of social mobility is considered to be favourable for the growth of entrepreneurship.
- Marginality: Marginality is used to describe and analyse socio cultural, political and economic spheres, where disadvantaged en people struggle to gain access to resources and full participation in social life. Many scholars believe that marginal groups have the positive attitude towards entrepreneurship.
- Security: When people feel there is a high degree of security; people incline themselves towards entrepreneurship for opportunities. It refers to the assurance of socially secured and fearless environment in the society/nation. It is one the essential needs of the entrepreneurship development. In a socially secured environment, where there are assurance and provision of both physical and economic security; there will be a higher number of potential entrepreneurs establishing and expanding their business. In such situation, more people will venture towards entrepreneurship without fear of losing their investment and lives too.
- Psychological factors: A few psychological factors that affect the growth of entrepreneurship are given below:
- Need achievement: Need for achievement motivate individuals towards the accomplishment of a challenging job. It inspires them to take risks, initiate new ventures and convert innovation into new product. On the other hand, when an individual has the low level of need achievement, it hinders their entrepreneurial growth.
- Withdrawal of status respect: Change is inevitable. It is thus entirely possible that many social groups experience a drastic loss in their power, position, and financial stronghold. This withdrawal traje of status respects encourage them to entrepreneurship and restore the status respect.
- Political factors: It includes government policies, actions, and regulation. Public policies regarding industries, trade, energy, technology, tourism, labour, taxation, and resources mobilization have a significant bearing on entrepreneurship emergence and development. In this way, the government actions of infrastructure development, subsidies, and providing incentives, concessions promote entrepreneurship practices. The nation without such policies and implementation action will not be able to generate entrepreneurship growth. In this way, the role of government and its commitment in the form of policy setting, executing actions and enforcement of regulations has been a significant impact on entrepreneurship emergence and development.
- Technological factors: Technological factors refer to all technological surroundings that affect entrepreneurship. Technology converts resource into a product with the help of skills, method, system, equipment and includes inventions and innovation. The emerging issues in technology such as automation, computerization, robotics, information technology, biotechnology, etc. influence entrepreneurship development and growth. The level of technology its pace, research and development have a major influence on emergence and development of entrepreneurship.