Entrepreneurship As Innovation And Problem Solving Class 11 Notes Entrepreneurship Chapter 4 - CBSE

Chapter : 4

What Are Entrepreneurship As Innovation And Problem Solving ?

Entrepreneur As A Problem Solver

When entrepreneur solves a problem value is created. He takes risks but often create value by solving a customer or market problems to create profitable enterprise.

Innovations leads to Successful Venture

  • Penicillin (Inventor: Sir Alexander Fleming)
  • Potato Chips (Inventor: George Crum)
  • The pacemaker (Inventor: John Hopps)
  • Microwave oven (Inventor: Percy Spencer)
  • Ink Jet Printers (Inventor: A Cannon Engineer)
  • X-Rays (Inventor: Wilhem Roentgen)

Social Entrepreneurship

James Gregory Dees - Social entrepreneurship is which combines the passion of a social mission with an image of business like discipline, innovation and determination.

Social Entrepreneur

Martin & Osberg - The social entrepreneur aims for value in the form of large scale transformational benefit that accrues either to a significant segment of society or to society at large.

Need For Social Entrepreneurship To Overcome

  • Economic and Financial Cries: Mitigate financial repercussions among vulnerable.
  • Social Problems: Such as Poverty and unemployment. Pay loss and job cuts hapening all over the world.
    The Idea innovations, creative solution and fresh perspective can cater to changing market demand and new world, economic order.

Difference Between Entrepreneurship & Social Entrepreneurship

Entrepreneurship

  1. Final objective is wealth creation.
  2. They participate in profit seeking business.

Social Entrepreneurship

  1. Wealth creation is simply means to an end.
  2. They work to create valuable social programs for whole community.

Characteristics Of Social Entrepreneurs

  1. Social catalyst
  2. Socially aware
  3. Opportunity seeking
  4. Innovative
  5. Resourceful
  6. Accountable

Concept Of Risk

Business risk means the possibility of some unfavourable occurrence.

Types of Risk
  • Internal Risks
    • Those risks which arises from the events taking place within the business enterprise.
    • From human factor
    • From technological factors
    • From physical factors
  • External Risks
    • The risk which arises from the events taking place outside the enterprise.
    • Economic factors
    • Natural factors
    • Political factors
    • Change in taste and Preferences of customer

Role Of Technology And Social Media In Creating New Forms Of Business

Information Collection
  • In the competitive world information is important as businesses will compete on analytics to differentiate themself.

Business Intelligence

  • It is the ability of an organisation to collect, maintain and organise data.

Smart Mobility

  • The device which are mobile and helps in growth of business.

Cloud Computing

  • It helps organisation to upload all its data on to a cloud and they can use it remotely whenever it is required.

Barriers to Entrepreneurship

The factors which inhibit the growth of enterpreneurship

Environmental Barriers
  • Economic
  • Social
  • Cultural
  • Political

Personal Barriers

  • Motivational
  • Perceptual

Business Incubation

These are the programs designed to support the successful development of entrepreneurial companies through an array of business support resources and services.

Ways incubators helps start-ups to get funds

  • Connecting companies with angel investors
  • Assisting companies in applying for loans
  • Assisting companies in accessing government agencies
  • Assisting companies to connect them to venture capitalists