Entrepreneurship: Concept And Functions Class 11 Notes Entrepreneurship Chapter 1 - CBSE

Chapter : 1

What Are Entrepreneurship: Concept And Functions ?

Concept Of Entrepreneurship

  1. Entrepreneur
    • Person
      (Subject)
  2. Entrepreneurship
    • Process or Action
      (Verb)
  3. Entreprise
    • Outcome
      (Object)

Entrepreneur

He is a person responsible for setting up a business or an enterprise. He has the initiative, Skill for innovation and who look for high achievements.

Entrepreneur (A Person)

  • Develop and own his own enterprise
  • Is innovative
  • Moderate risk taker and works under
    uncertainty for achieving the goals
  • Persistently tries to do something better
  • Is determined but patient
  • Exhibits sense of leadership
  • Exhibits a sense of competitiveness
  • Takes personal responsibility
  • Oriented towards future
  • Tends to persist in the face of adversity

Functions Of An Entrepreneur

Entrepreneurial Functions

  • Innovation
  • Risk-taking
  • Organisation building

Promotional Functions

  • Investigation of an Idea
  • Detailed investigation
  • Assembling the requirements
  • Financing the Proposition

Managerial Functions

  • Planning
  • Organising
  • Staffing
  • Directing
  • Leadership
  • Communication
  • Motivation
  • Co-ordination
  • Controlling

Commercial Functions

  • Production
  • Marketing
  • Personnel
  • Accounting
  • Finance

Entrepreneurship

It is the process or the activity of setting up a business by an entrepreneur who creates a new business, bearing most of the risks and enjoy most of the rewards or profits.

Enterprise

It is a business organisation that is formed and which provides goods and services create jobs, contribute to national income, exports and contribute to the overall economic development.

Steps Of Enterprise

  • The entrepreneur is a person who starts an entreprise.
  • The process of creation is called an entrepreneurship.
  • The entrepreneur is the actor and the act is called the enterprise.

Need For Entrepreneurship

  • Lifeline of a Nation
  • Provide Innovation
  • Charge of Growth/Inclusive Growth
  • Increased Profits
  • Provide Employment Opportunities
  • Social Benefits

Advantages Of Entrepreneurship

  • Excitement
  • Originality
  • Independence
  • Rational Salary
  • Freedom

Disadvantages of Entrepreneurship

  • Salary
  • Benefits
  • Work Schedule
  • Administration
  • Incompetent Staff

Process Of Entrepreneurship

  • Step-1: Self-Discovery
  • Step-2: Identifying opportunities
  • Step-3: Generating and evaluating ideas
  • Step-4: Planning
  • Step-5: Raising Start-up Capital
  • Step-6: Start-up
  • Step -7: Growth
  • Step-8: Harvest