These AI Class 10 Notes Chapter 4 Entrepreneurial Skills Class 10 Notes simplify complex AI concepts for easy understanding.
Class 10 AI Entrepreneurial Skills Notes
Entrepreneurship and Society Class 10 Notes
While the concept of entrepreneurship has a wide meaning, it describes as starting a business using the resources available to a person. Society is provided with goods and services. In turn, society provides market for products and services provided by the entrepreneur.
Entrepreneurship has some positive impact on society such as
- Accentuates economic growth
- Fosters creativity
- Stimulates innovation and efficiency
- Creates jobs and employment opportunities
- Solves the problems of the society
- Encourages welfare of the society
Society plays a role in boosting entrepreneurship by
- Creates needs and demands
- Provides raw materials
- Enables financial support
- Creates a need for education
- Catalyses policy formation and reform
- Facilitates networking
- Supports infrastructure development
However, entrepreneurship also creates some adverse impact on society sometimes. This happens in the form of environmental degradation, trade imbalance, labour exploitatic n etc.
Types of Entrepreneurship Activities
Some common entrepreneurship activities related to society include:
Social Entrepreneurship: Social entrepreneurship can be understood as creation of sustainable solutions for social problems that leads to social change by employing entrepreneurial mindset, processes and operations.
In social entrepreneurship, research is conducted to completely define a specific and core social problem. Many social problems are tackled by social entrepreneurs such as low reach of quality education, health and sanitation, unemployment, child labour etc.
Agricultural Entrepreneurship: Agricultural Entrepreneurship can be defined as being primarily related to the marketing and production of inputs and products used in agricultural activities. Farmers have benefited the most with rise in agricultural entrepreneurship as it has led to low-cost innovations in farming processes.
Women Entrepreneurship: Women entrepreneurship is referred to the entrepreneurial activity led by women, where women undertake risks, create enterprises, organise factors of production, innovate with products/services and generate employment opportunities. Government of India has defined women entrepreneurship as “an enterprise owned and controlled by a woman having a minimum financial interest of 51 per cent of the capital and giving at least 51 per cent of the employment generated in the enterprise to women.”
Small Scale Entrepreneurship: Small scale entrepreneurship refers to starting industries in which manufacturing, trading, providing services, productions are done on a small scale or micro scale. These businesses serve as the backbone of many developing countries.
Characteristics/Qualities of Entrepreneur
For the successful enterprise, it is important to understand the characteristics/qualities of successful entrepreneurs and it is described below :
Leadership An entrepreneur must possess the characteristics of leadership and must lead a team for achievement of goals. The leader is able to clearly articulate their ideas and has a clear vision. An entrepreneurial leader realises the importance of initiative and reactiveness and they go out of their way to provide a support to the team.
Risk Taking An entrepreneur with rational planning and firm decisions bear the risks. They have differentiated approach towards risks. Good entrepreneurs are always ready to invest their time and money but they always have a back up for every risk they take.
Innovativeness With the changing needs and requirements of customers production should meet requirements with the help of innovative ideas. An entrepreneurial venture does not have to restrict itself to just one innovation or even one type of innovation.
Goal-oriented Goal-oriented entrepreneurs achieve the maximum results from their efforts in business due to the fact they work towards clear and measurable targets.
Decision-Maker An entrepreneur has to take many decisions to put his business idea into reality. He chooses the best suitable and profitable alternative.
Highly Optimistic A successful entrepreneur is always optimistic and the present problems does not matter to them. He is always hopeful that the situation will became favourable for business in future.
Motivator An entrepreneur has to create a spirit of team work and motivate them. So that he gets full cooperation from the employees.
Self-confident An entrepreneur should have confidence to achieve his goals otherwise he won’t be able to convince his team to achieve his goals.
Action-oriented An entrepreneur should have an action oriented vision and ideology to plan things well.
Dynamic Agent An entrepreneur creates new needs and new means to satisfy them. He has the ability to visualise new ventures and new plans.
High Achiever Entrepreneurs are high achievers as they have a strong urge to achieve. The most important characteristic is his achievement motivation.
Trust in Self An entrepreneur believes on their own decisions and actions as he has trust in his perseverance and creations. He does not believe in luck.
Functions of an Entrepreneur
The various functions of an entrepreneur are as follows :
Innovation It includes introducing new products, opening new markets, new sources of raw material and new organisation structure.
Decision-Making It includes stabilising organisation’s aims and objectives and changing them according to changing conditions, taking decisions on effective techniques, utilisation of financial resources etc.
Organisation and Management An’ entrepreneur organise and manage various economic and human factors through planning, coordination, control, supervision and direction.
Size and Scale of Business Unit An entrepreneur has to decide about the size of business unit as he wants to establish one production unit or more dependent upon the demand of the product. Similarly, he has to decide about scale of production i.e. small scale, middle scale or large scale.
Appointment of Managerial and Other Work Force It is the entrepreneur who appoints the management staff as well as ‘other work force as per the requirement and needs of the enterprise.
Factors of Production The factors of production i.e. land, labour, capital etc., should be in appropriate proportion and to maximise output of these factors is the responsibility of the entrepreneur.
Control and Direction He must exercise control over all departments and direct them on a timely basis.
Finding Suitable Market A proper research must be done to find a suitable market for selling the products. Other functions like advertisement and publicity, appointment of selling agents, providing incentives to various selling intermediaries to promote sales should be given priority.
New Inventions and Innovations New inventions and innovations must be encouraged and introduced in production, sales, marketing, advertisement etc.
Establishing Relations with Government An entrepreneur must establish good relations with government and its functionaries. His functions are to obtain licences, payment of taxes, selling the product to government, provision for export-import etc.
Establishing Contacts with Competitors An entrepreneur must form contacts with the competitors to analyse the market. He must be in a position to make opportunities out of the given situation.
Role and Significance of Entrepreneurs
The role and significance of entrepreneurs are as follows :
Organiser of Society’s Productive Resources An entrepreneur is the organiser of society’s productive resources. He is the person who assembles the unused natural, physical and human resources of the society, combines them as properly, establishes effective coordination between them and makes the economic activities dynamic.
Helpful in Capital Formation An entrepreneur is helpful in capital formation as we know that increase in the rate of capital formation is quite essential for the economic development of any country. Those nations which are not able to increase the rate of capital formation or does it nominally remain backward from industrial development’s point of view.
Increase in Employment Opportunities An entrepreneur creates maximum employment opportunities in the society by way of establishing new industries, developing and expanding the existing industries and by undertaking innovative activities.
Development of New Production Techniques An entrepreneur does not feel contended only with the existing techniques of production. Hence, he carries out various experiments for saving time, labour and capital in the production, as also to improve the variety and quality of the product and service.
Visionary Leader An entrepreneur has a good vision towards the achievement of his goals. He is able to recognise profitable opportunities and conceptualise strategies.
Contribution of the Execution of Government Policies An entrepreneur provides an important contribution in implementing government policies and achieving the national goals. An entrepreneur cooperate with the government for implementations of development plans of the country.
Higher Productivity Entrepreneurs have the ability to produce more goods and services with less inputs. They play an important role in raising productivity.
Initiator An entrepreneur is the one who initiates the process of creating an enterprise by coming up with the idea for the business and planning out how to turn that idea into reality.
Risk Taker In an enterprise, an entrepreneur, being the owner, is the biggest risk taker. He is the one who finds the capital to back up his idea and also the person who is accountable in the face of the failure of that particular idea.
Backbone of Capitalist System Capitalist economy is one in which there is a freedom to save and invest to compete and operate any business. An entrepreneur plays a vital and prominent role in the enterprise because he controls market by assuming the role of a competitor and a leader.
Ingredient of Modern Production System An: entrepreneur has become the ‘balancing wheel’ of modern global economy. They seek the unique product, change the technical frontiers and reshape public desires. Today, entrepreneurs act as an ingredient of modern production system as they create wealth and employment.
Importance of Entrepreneurs Class 10 Notes
The importance of entrepreneurs are as follows
Free Market Evolution In a free market, entrepreneurs are able to respond to changing customer preferences, prices, shifts in demand etc. Entrepreneurs bring change in technology, trends and markets.
Efficiency Improvements Entrepreneurs tend to adapt in an established business and increase their own efficiency. They innovate with current systems and introduce new technologies which can significantly create advancement in an industry. Hence, during any major changes in the economy, entrepreneurs adapt and do not have to go out of business.
New Markets Entrepreneurs can often ‘redefine the rules’ of an established industry. They do this by creating new markets for existing products and slightly innovating in small ways to suit the needs of a new target market.
New Values Sometimes, entrepreneurs choose ethics over profit and offer a more ethical product to the world and are transparent about it.
Myths/Misconception about Entrepreneurship
Entrepreneurship is a set of activities performed by the entrepreneur. It is the process of identifying opportunities in the market place. It is the attempt to create value. Many entrepreneurs believe a set of myths about entrepreneurship and the most common are as follows :
Starting a Business is Easy In reality, it is a very difficult and challenging process to start a successful business. The rate of failure of new ventures is very high but small entrepreneurships are comparatively easier to start.
Lot of Money to Finance New Business Successful entrepreneurs design their business with little cash also.
Start up’s cannot be Financed Under the schemes like MUDRA, entrepreneurs can raise loans from banks.
Talent is More Important than Industry This is not true as the nature of industry an entrepreneur chooses greatly effects the success and growth of the business.
Most Start up’s are Successful Mostly in the developing countries start up’s fail as they could not manage to earn high profits.
Advantages of Entrepreneurship Class 10 Notes
The main advantages of entrepreneurship are discussed below :
Independence An entrepreneur is himself a boss or owner and he can take all the decisions independently.
Exciting Entrepreneurship can be very exciting with many entrepreneurs considering their ventures highly enjoyable. Everyday will be filled with new opportunities to challenge your determination, skills and abilities.
Wealth Creation The principal focus of entrepreneurship is wealth creation and improved livelihood by means of making available goods and services. Entrepreneurial venture generates new wealth, new and improved products, services or technology form entrepreneurs, enable new markets to be developed and new wealth to be created.
Flexibility As an entrepreneur you can schedule your work hours around other commitments, including quality time you would spend with your family.
Status Success in entrepreneurship beings a considerable fame and prestige within the society.
Ambition-fulfilment Through entrepreneurship one can fulfil his ambitions into original products or services.
Disadvantages of Entrepreneurship Class 10 Notes
Some of the disadvantages of entrepreneurship are as follows:
Huge Amount of Time You have to dedicate a huge amount of time to your own businessi. Entrepreneurship is not easy and for it to be successful, you have to take a level of time commitment.
Risk An entrepreneurship involves high risk of loss. If the business fails then it will wipe away all the personal savings.
Hard Work An entrepreneur has to work very hard to make the new business very successful.
Uncertain Income There is no regular or fixed income available to an entrepreneur. So, there is uncertain kind of income received by an entrepreneur.
Incompetent Staff A new entrepreneur may not be able to hire qualified and experienced staff so there are chances of incompetency by the staff due to lack of experience and knowledge.
Entrepreneurship as a Career Option Class 10 Notes
There is nothing wrong with working for any organisation, it is basic for youngsters to be educated that they have two options-they can be job creators or job seekers. Once the awareness of the two career choices comes in, it is important to understand how taking the route of entrepreneurship benefits an individual.
Let’s us see real-life few examples of entrepreneurship
Uber started as an idea to revolutionize the taxi industry and after attracting investments, the company exploded and grabbed massive market share in a very short time.
Tesla is known for its electric cars. Although the Tesla customers are limited, the enterprise enjoys a large market share and high profit margins.
There are various example of entrepreneurship around us
Nurtures Development of Entrepreneurial Skills and Capabilities
Entrepreneurship cultivates unique skills and encourages outside the box thinking. It instils confidence, creates opportunity, offers solutions and stimulates the economy. Entrepreneurship education provides with the skills and knowledge to come up with business ideas and develop ventures. It is broadly about learning to practice core business areas such as marketing, sales, finance, accounting, management etc., and developing skills such as effective communication, creative problem solving, adaptability etc.
Enables Application of an Entrepreneurial Mindset
Entrepreneurial mirıdset and skills are not necessarily only relevant to becoming an entrepreneur, but also in any field. Even the top employability skills of today are basically entrepreneurial skills. In fact, having an entrepreneurial mindset and wide range of business-relevant skills acquired through studying entrepreneurship would make one an ideal candidate in most fields.
Develops the Ability to Handle Failure and Ambiguity
In the Indian culture, since childhood failure is looked upon as something intolerably bad. However, a critical part of learning in the entrepreneurial process is to learn from failure. Hence, going through this process helps to learn from mistakes, take failure positively and stay motivated to work towar ds achieving the goal. Similarly, just like life is uncertain, business is full of ambiguity. While actually finding solutions to deal with ambiguity, one develops certain traits such as risk management, perseverance and persistence.
Enharıces Critical Thinking and Problem-Solving Ability’
The ability to think critically and solve problems is essential to succeed in the world of business. The focus of learning, is not on these aspects during our school years. Learning entrepreneurship exposes one to numerous opportunities that force one to think critically, analyze all alternatives and consider possible solutions.
Provides Early Exposure to the Real World
Ultimately, working professionally in the real world requires one to collaborate, think creatively and demonstrate proficiency. In most cases, real life exposure during educational years remains limited.
Entrepreneurship practice at an early stage in one’s career encourages activities such as going out and interacting with customers, creating tangible concepts and ideas, preparing detailed documents, working with investors etc., which gives great exposure and knowledge about the trends and needs of the real world.
Inspires to Think about One’s Career Differently
Many students do not even consider that they can try to work on business ideas, take up entrepreneurial projects, take the initiative to impact society etc. Thus, they tend to develop a certain trail of thought about their career-from graduating high school to college to looking for a job.
If entrepreneurship exposure is given at the first point when one starts thinking towards building a career, it can help them to think of different career options and exploring what they are actually passionate about.
Leads to Creating Difference in Society
Entrepreneurs not only economically impact society but they also work on identifying the real needs and problems of people and solving them. Learning entrepreneurship encourages one to find problems that need to be solved, invent a solution for them, and ultimately, make the world a better place.
Glossary:
- Entrepreneurs are innovators who use the process of entrepreneurship to shatter the status quo of the existing products and services, to set new products, new services.
- Entrepreneurship is non-beneficial also due to huge amount of time, risk, hardwork, uncertain income and incompetent staff.
- Society A community, nation or broad grouping of people having common traditions, institutions and collective activities and interest.
- Myth A widely held but false belief or idea, often based on tradition or misinformation.
The post Entrepreneurial Skills Class 10 AI Notes appeared first on Learn CBSE.