Brief Answer Questions

1. Mention any four traits of an entrepreneur.

The four traits of an entrepreneur are mentioned below:

  • Motivation
  • Organizer
  • Risk bearer
  • Hardworking
2. Define the term inventor.

Inventory is someone who primarily aims to create something new. To S/he tries to bring positive change in mankind by his/her invention.

3. What is entrepreneurial motivation?

Entrepreneurial motivation refers to the willingness that motivates the entrepreneur to exert higher level of efforts for the achievement of entrepreneurial goals.

4. Define the term innovation.

Innovation refers to the process of creating something new. In other words, it is a changing process for creating more effective processes, products and ideas.

5. Define entrepreneurship.

Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic and social risk, and reducing the resulting rewards of monetary and personal satisfaction. In simple words, entrepreneurship is the process of creating a new enterprise.

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6. Make a short note on Salary-substitute firms.

Firms that provide their owners a similar level of income that s/he would be able to earn in a conventional job is defined as substitute firm. For example; salon, retail store, etc. salary.

7. Write about Lifestyle firms.

Lifestyle firms are the firms that provide their owners an opportunity to pursue a particular lifestyle and earn a living while doing so. As lifestyle firms are not that innovative, they do not grow quickly. They promote sports, hobby, or part time activity as the entrepreneurial activity.

8. Define entrepreneurial firms.

 Entrepreneurial firms are those firms which bring new products and services to the market. These firm aims at seeking and creating opportunities regardless of the resources they currently control.

9. Write about Drone entrepreneur.

Entrepreneurs that do not change their traditional business even at the cost of diminished returns are termed as drone entrepreneurs. Drone entrepreneurs oblige to traditional production ways even if a change could lead to a substantial opportunity.

10. Define Fabian entrepreneur.

Entrepreneurs that show a high level of caution and skepticism in experimenting new change are termed as fabian entrepreneurs. They avoid risks and are extremely calculative in every step they take.

11. What do you mean by the Solo operator?

Entrepreneurs that work alone and are solely accountable for the liability associated are known as solo entrepreneurs. The majority of I entrepreneurs are solo entrepreneurs at the beginning.

12. Write about the Immigrant entrepreneur.

When an individual who migrates to a particular country is engaged in entrepreneurial activities s/he is known as an immigrant entrepreneur, The Immigrant entrepreneur usually represents an educated, trained and experienced class.

13. Give a short note on the Rural entrepreneur.

Entrepreneurs who base their entrepreneurial activities in rural areas are known as a rural entrepreneurs. The rural entrepreneur usually utilizes local resources and attempt to serve the rural market.

Descriptive Answer Questions

1. What is entrepreneur? Explain the functions of an entrepreneur.

Meaning of Entrepreneur

Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic and social risk, and reducing the resulting rewards of monetary and personal satisfaction. In simple words, entrepreneurship is the process of creating a new enterprise.

Functions of Entrepreneur

Entrepreneurs perform several functions that help to run their activities smoothly. Some of the major functions of entrepreneurs are as follows:

  • Planning: Planning is done for future perspective. Without good planning, the goals of entrepreneurs cannot be achieved. In planning an entrepreneur performs a top management function setting a goal and business plan.
  • Organizing ownership: The task of the entrepreneur is to fix the ownership of the firm and make it organized. If the businesses are in sole.trading, they must be clear and if there is a partnership, entrepreneur must separate owner. The entrepreneur thus with the task of organizing ownership must organize every tangible product. a good assigned
  • Funds management: A good entrepreneur must manage the firm whether from external or internal sources of fund to run a business in a profitable way.
  • Human resource management: Entrepreneur acquires the necessary human resource to fill up the different position in the organization so that the organization runs smoothly.
  • Relationship management: Another improved function of the entrepreneur is to manage a variety of relationship. They can be broadly – divided into three parts:
    • Exchange relationship: It deals the relationship between input and outputs. The relationship is connected with supplier and customer.
    • Employee relationship: This function is all about managing atmospheric environment of an employee within the firm. It helps to motivate the employee and achieve the higher productivity.
    • Government relationship: Entrepreneur must relationship with government agencies like top-level bureaucracy for facilities, concessions, license, tax, etc.
  • Control: Control is the measurement and correction of performance to achieve the goals, entrepreneurs have to control about financial, production and management control.
2. What do you mean by entrepreneurship? Write its importance. Entrepreneurship

Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic and social risk, and reducing the resulting rewards of monetary and personal satisfaction. In simple words, entrepreneurship is the process of creating a new enterprise. Entrepreneurship plays a significant role in the development of a country.

Importance of Entrepreneurship

Entrepreneurship carries a great significance in the welfare of a society and country. Countries that have progressed are the ones that have excelled in entrepreneurial activities. A few importance of entrepreneurship is discussed as follows:

  • Capital formation: Capital is one of the most important factors for economic development. Entrepreneurship plays a crucial role in accumulating and mobilizing the idle savings of the people. Capital, in turn, acts as the driving force of economic development.
  • Generation of employment opportunities: Entrepreneurs not only create employment for themselves but also for others. When employment opportunities are generated, it helps in economic development.
  • Resources optimization: Entrepreneurs by nature are innovative. This attribute helps them to utilize the resources in an optimal way. This in turns increase the productivity thereby, having the positive impact on economic development.
  • Balanced development: Entrepreneurs, in general, start their business in all parts of the country. They do so on the basis of available resources. This has a positive impact, i.e., it aid to the balanced development of the country
  • Industrialization: Especially in developing countries like Nepal, an entrepreneurship acts as the base of industrialization. Not only economic activities are increased, but people also have access to the variety of goods at a lower price too.
3. Explain the different traits of a successful entrepreneur.

Traits of a Successful Entrepreneur

The primary traits of successful entrepreneurs are discussed below:

  • Motivation: An entrepreneur possesses the trait to motivate others. Entrepreneurship is often about getting the activities done through others. In this regard, entrepreneurs that exhibit motivational ability are the ones that become successful.
  • Organizer: Another key trait of a successful entrepreneur is his/her ability to organize. Successful entrepreneur is good at organizing the resources such as capital, human, materials, technology, etc.
  • Farsightedness in Nature: Entrepreneur has good vision about likely change in future business environment. They can anticipate changes in the market, consumer taste, and preference, technology, etc. they plan for future and have versatile knowledge.
  • Risk Bearer:  A successful entrepreneur has that amazing knack to measure the risk. S/he hence always takes a calculative risk and set the realistic and attainable goals.
  • Hard Working: Entrepreneur works hard by devoting necessary time and effort. They work hard unless and until they achieve their goals. In this regard, they are initiative and action oriented
  • Innovator: Entrepreneurs that are successful possess the ability to innovate. They constantly look for a change in the environment and create product and service as per the change.
  • Independent: A successful entrepreneur has a high desire for independence. They do not like to be directed by others. They believe in their ability and put their self-respect in high regard.
  • Seek Immediate Feedback: Successful entrepreneur’s always sought immediate feedback for their performance. They crave for feedback so that they know where they stand and how their future activities should be.
4. Differentiate entrepreneur and manager.

Differentiation between Entrepreneur and Manager

They are differentiated below:

Entrepreneur

Manager

An entrepreneur is a person that organizes the factors of production to exploit the opportunities from change. A manager is a person that manages the activities of an organization that is already established.
In the majority of cases, an entrepreneur also is the owner of the enterprise. In the majority of cases, a manager is the worker of an enterprise.
An entrepreneur has to bear all the entrepreneurial risk. Manager does not bear any entrepreneurial risk.
An entrepreneur is rewarded with profit for his/her effort. A manager is primarily rewarded with salary for his/her effort.
An entrepreneur primarily emphasis on the external environment, so that s/he can identify the opportunity. A manager priorities internal environment so that s/he identifies the strength to grab the opportunity.
5. Compare and contrast small business and entrepreneurship.

Comparison and Contrast between Small Business and Entrepreneurship

They are compared and contrasted below:

Small Business

Entrepreneurship

  • Small business mainly deals with products and services that are already established in the market.
  • The primary aim of small business is to achieve limited growth with stable profit.
  • The risks associated with small business are known in nature.
  • The area of operation and focus is limited for small business.
  • Owners of small business are not appreciated and rewarded by society for their effort.
  • Entrepreneurship focuses more on product and services that are innovative in nature.
  • The primary aim associated with entrepreneurship is rapid growth and high productivity.
  • The risks associated with entrepreneurship nature. are unknown in nature
  • The area of operation and focus of entrepreneurship is wide.
  • Public reward and recognition is a norm of entrepreneurship.
6. Explain the factors of entrepreneurial motivation.

Factors of Entrepreneurial Motivation

The main factors of entrepreneurial motivation are broadly categorized into two categories discussed as follows:

Internal Factors

The key internal factors of entrepreneurial motivation are:

  • Desire to do something new: Human being always wants to do something new. This desire to search new pasture inspires people to start an entrepreneurial venture.
  • Become independent: Independency has been one of the biggest desires of the human. There are many people who like to be independent, independent concerning finance, independent concerning decision making, independent concerning authority, etc. For this, they are always enthusiastic and motivated to be an entrepreneur.
  • Achieve dream: Every individual aspire to achieve something significantly in his/her life. Some want to be rich; some want to be recognized for their work; some want to contribute to the society in a positive way. Being an entrepreneur is one primary way to achieve these dreams.
  • Educational background: When people become an expert in the particular field, they often want to expand and explore the field. When a student is aware of the impact of being an entrepreneur, s/he wants to apply that knowledge. In this regard, the educational background is another key internal factor for entrepreneurial motivation.

External Factors

The key external factors of entrepreneurial motivation are:

  • Government assistance and support: Government often assists people to establish entrepreneurial venture. They do so by providing grants, subsidies, etc. When people find government encouraging in establishment and operation of business, it drives them towards the entrepreneurship.
  • Availability of factors of production: Capital, labour, technology, raw materials, etc. are the major factors of production that drive all enterprise. If these factors of production are available abundantly; entrepreneurial activities can be conducted in an efficient and effective manner. Availability of factors of production hence is another crucial element that drives entrepreneurial motivation.
  • Promising scope for the idea: When the idea of an individual has a tremendous scope, the possibility of it being turned into a tangible product or service becomes high. As such, the possibility of high sales and profit associated drives people towards entrepreneurship.

Analytical Answer Questions

 1. What is entrepreneurial motivation? Discuss the functions of an entrepreneur in economic development of Nepal.

Concept of Entrepreneurial Motivation

Entrepreneurial motivation refers to the willingness that motivates the entrepreneur to exert higher level of efforts for the achievement of entrepreneurial goals.

Functions of Entrepreneur

Entrepreneurs perform several functions that help to run their activities smoothly. Some of the major functions of entrepreneurs are as follows:

  • Planning: Planning is done for future perspective. Without good planning, the goals of entrepreneurs cannot be achieved. In planning an entrepreneur performs a top management function setting a goal and business plan.
  • Organizing ownership: The task of the entrepreneur is to fix the ownership of the firm and make it organized. If the businesses are in sole.trading, they must be clear and if there is a partnership, entrepreneur must separate owner. The entrepreneur thus with the task of organizing ownership must organize every tangible product. a good assigned
  • Funds management: A good entrepreneur must manage the firm whether from external or internal sources of fund to run a business in a profitable way.
  • Human resource management: Entrepreneur acquires the necessary human resource to fill up the different position in the organization so that the organization runs smoothly.
  • Relationship management: Another improved function of the entrepreneur is to manage a variety of relationship. They can be broadly – divided into three parts:
    • Exchange relationship: It deals the relationship between input and outputs. The relationship is connected with supplier and customer.
    • Employee relationship: This function is all about managing atmospheric environment of an employee within the firm. It helps to motivate the employee and achieve the higher productivity.
    • Government relationship: Entrepreneur must relationship with government agencies like top-level bureaucracy for facilities, concessions, license, tax, etc.
  • Control: Control is the measurement and correction of performance to achieve the goals, entrepreneurs have to control about financial, production and management control.
2. Discuss the role and importance of entrepreneurship in economic development of Nepal with examples.

Role and Importance of Entrepreneurship in Economic Development of Nepal

If we analyze the economic development of many countries, one of the common factors is the role of entrepreneurship. It has acted as the driving force. The major roles of entrepreneurship in the economic development of the country are explained below.

  • Capital Formation: Capital is one of the most important factors for economic development. Entrepreneurship plays a crucial role in accumulating and mobilizing the idle savings of the people. Capital in turn acts as the driving force of economic development.
  • Generation of Employment Opportunities: Entrepreneurs not only create employment for themselves but also for others. When employment opportunities are generated it helps in the initiation of business.
  • Resources Optimization: Entrepreneurs by nature are innovative. This attribute helps them to utilize the resources in an optimal way. This in turns increase the productivity.
  • Balanced Development: Entrepreneurs in general start their business in all parts of the country. They do so on the basis of available resources. This however has a positive impact that s it aids to the balanced development of the country
  • Industrialization: Especially in developing countries like Nepal, entrepreneurship as the base of industrialization, not only economic activities are increased. People have access to variety of goods at cheaper price.

Some other roles of entrepreneurship in the economic development of the country are listed below.

  • Reduction in concentration of economic power
  •  Promotion of foreign trade
  • Poverty reduction
  • Development of healthy competition
3. Define entrepreneurship. You are also required to write about different types of entrepreneur.

Entrepreneurship

Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic and social risk, and reducing the resulting rewards of monetary and personal satisfaction. In simple words, entrepreneurship is the process of creating a new enterprise.

Types of Entrepreneurship

Types of entrepreneurs can mainly be classified on the following grounds:

  • On the ground of Innovation
    • Innovative entrepreneur: The entrepreneur who introduces new goods, inaugurates new method of production, discover new market, and reorganize the enterprise is innovative entrepreneur. These types of entrepreneur can work when a certain level of development is already achieved, and people expect change and improvement.
    • Imitative entrepreneur: The entrepreneur who can immediately adopt successful innovations entrepreneur is inaugurated by innovating imitative entrepreneur.

These types of entrepreneurs do not innovate anything new. They are skill full in imitating technique and technology innovated by others. These sorts of entrepreneurs are particularly suitable for under-developed regions as they do bring the technology of developed countries through imitation.

    • Fabian entrepreneur: Those entrepreneurs who do not want to make any change in their organization are known as fabian entrepreneurs. These types of entrepreneurs are sceptic and very cautious in bringing change in the organization.
    • Drone entrepreneur: The entrepreneur who refuses to adopt opportunities to make changes in production formulae even at the cost of severely reduced return are Drone entrepreneurs. These types of entrepreneurs may suffer losses yet do not become ready to make changes in their existing production methods.
  • On the Ground of Behaviour
    • Solo operator: The entrepreneur who carries on enterprise alone and if needed employs few employee is known as Solo entrepreneur. Most of entrepreneur starts the enterprise like this in the beginning.
    • Active partners: Active partner are those entrepreneurs who start any enterprise as a joint venture and all of the partners involve nu actively participate in the operations of the business.
    •  Inventors: The entrepreneurs who with their competence and inventiveness invent new products are inventors. Their interest lies in research and innovative activities.
    • Challengers: These are the entrepreneurs who plunge into the industry because of the challenges it present. When one challenge seems to be met, they begin to look for new challenges.
    • Buyers: The entrepreneur who does not want to bear the risk involved in setting up a business and to reduce such risk they prefer to buy an ongoing business is called a buyer entrepreneur.
    • Life timers: Life timers are the entrepreneurs who take business as and an integral part of their life. Usually, the family business mainly depends on the exercise of personal skill fall in this type of entrepreneur.
  • On the ground of the Focus group

On the ground of the Focus group, entrepreneur can be classified as;

    • Women entrepreneur: Women entrepreneurs are those women who think of a business enterprise, initiate it, organize and combine factors of production, operate the enterprise and undertake risk and handle economic uncertainty involved in running a business.
    • Minority entrepreneur: Minority entrepreneur refers to the entrepreneurs that belonged to the group or races that are marginalized in a particular society or country, as the scenario is changing, people from minority group have come forward and succeeded in business activities.
    • Immigrant entrepreneurs: They are individual going from one country to another country with the purpose of starting a business. They belong to the deviant class having a good sense of business. Most of them are educated, experienced and skilled.
    • Part-time entrepreneur: The people who work elsewhere under fixed salary basis and side-by-side carry on their own business is as Part-time entrepreneurs. People who are unable to meet family expenses from their job are often involved in small business.
    • Home-based entrepreneur: The entrepreneurs who run their entrepreneurial venture from homes are home-based entrepreneurs. Due to change in technology, home-based Entrepreneurs are growing rapidly. E-commerce and virtual enterprises have led to the growth of such entrepreneurs.
    • Family-Business entrepreneur: The business run by family members is known as a family-business entrepreneur. The business in which the financial control of the company lies with the two or more than two members of the family is called the family business ownership, and the persons involved are known as family business owner. Such business is based on family values there is the high chance of the success of such business,.
    •  Corpreneurs: Couples working together as co-owner in the business are ecopreneurs. Both husband and wife have ownership in the business and both work hard. Division of labour in business is based son experience rather on gender. Both husband and wife have vine defined role in the business. As both know the essence of business, there is no problem in the smooth operation of the business.
4. Define entrepreneurship? Write its importance for the country like Nepal.

Entrepreneurship

Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic and social risk, and reducing the resulting rewards of monetary and personal satisfaction. In simple words, entrepreneurship is the process of creating new enterprise.

Importance of Entrepreneurship for a Country like Nepal

The importance of entrepreneurship is very high in every country. More so for a country like Nepal that is still in its nascent stage of development. In this regard, it is extremely important that efforts are carried out to foster entrepreneurial activities in the nation few importance of entrepreneurship for a country like Nepal are discussed as follows.

Importance of Entrepreneurship

Entrepreneurship carries a great significance in the welfare of a society and country. Countries that have progressed are the ones that have excelled in entrepreneurial activities. A few importance of entrepreneurship is discussed as follows:

  • Capital formation: Capital is one of the most important factors for economic development. Entrepreneurship plays a crucial role in accumulating and mobilizing the idle savings of the people. Capital, in turn, acts as the driving force of economic development.
  • Generation of employment opportunities: Entrepreneurs not only create employment for themselves but also for others. When employment opportunities are generated, it helps in economic development.
  • Resources optimization: Entrepreneurs by nature are innovative. This attribute helps them to utilize the resources in an optimal way. This in turn increases productivity thereby, having a positive impact on economic development.
  • Balanced development: Entrepreneurs, in general, start their businesses in all parts of the country. They do so on the basis of available resources. This has a positive impact, i.e., it aid to the balanced development of the country
  • Industrialization: Especially in developing countries like Nepal, entrepreneurship acts as the base of industrialization. Not only economic activities are increased, but people also have access to a variety of goods at a lower price too.

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