INFORMATION TECHNOLOGY (402)

CLASS – IX
CAPSULE COURSE
UNIT – IV
ENTREPRENEUR SKILL-I
Entrepreneur : An entrepreneur is a person who is self-employed, is willing to take a
calculated risk and brings in a new idea to start a business.
All self-employed persons are not entrepreneurs, for example, a shopkeeper cannot be
called an entrepreneur unless he/she introduces a new method or idea in the
business.
Entrepreneurship : The process of developing a business plan, launching and
running a business using innovation to meet customer needs and to make a profit is
entrepreneurship.
Enterprise : An enterprise is a project or undertaking that is bold and fulfills a need
of the society which no one has ever addressed.
Role of Entrepreneurship : Role and benefits of entrepreneurship are :
1. Economic Development : As more and more entrepreneurs create business
opportunities, the economy grows.
2. Social Development—Creation of Jobs : As the business grows, it needs
more work to be done and so creates more jobs.
3. Improved Standard of Living : When entrepreneurs sell products like a
tractor, a mobile phone or a mobile service, it helps people live a more
comfortable life.
4. Optimal Use of Resources : Entrepreneurs keep working to find the most
optimal ways of using the resources to reduce costs and increase their profits.
Qualities of a Successful Entrepreneur :
1. Patience : It is important for an entrepreneur to be patient in running the
business.
2. Positivity : An entrepreneur has to think positively even when he/she takes a
big risk.
3. Hardworking : It is necessary for an entrepreneur to continuously work hard
towards his/her own and company’s goal.
4. Confidence : An entrepreneur needs to be very confident and take decisions
about their business.
5. Open to Trial and Error : Entrepreneur needs to be open to new ideas and try
them without fear of failure
6. reactivity and Innovation : An entrepreneur should be able to see a problem
from different perspectives and come up with original and creative solutions.
Characteristics of Entrepreneurship : Let us now look at some of the
distinguishing characteristics of entrepreneurship.
1. Ability to take up risks.
2. Believe in hard work and discipline.
3. Knowledge of the product and services and their need or demand in the market.
 4. Financial literacy and money management skills
5. Effective planning and execution.
Wage Employment: In wage employment, there are always two parties, one is
known as the employer and the other is the employee. In wage employment, the
employee (generally an individual) agrees to work for the employer.
Benefits of entrepreneurship :
1. Entrepreneurship allows you to do something you like using your hobbies and
skills.
2. Entrepreneurship allows you to work for yourself and not for someone else.
3. Entrepreneurship allows you to decide how much risk you want to take.
Types of business activities : There are three types of business activities:
1. Product business
2. Service business
3. Hybrid business
Product business : A business where a seller and buyer exchange an item, which
can be seen and touched, is called a productbased business. For example, a Sports
Shop.
Service business : business where a seller helps the buyer to finish some work. For
example, a cricket coaching center.
Hybrid business : A hybrid is the one where the business is doing both selling
product and selling services. For example, Rahul starting a sports academy for
coaching and selling sports equipment.
There are two types of product-based businesses.
Manufacturing Businesses : These are the businesses that make a product and sell
it. Products are usually made in factories.
Trade Businesses : These businesses buy and sell a product. They also transport the
product from the factory to warehouses and then finally to shops near the customers.
Entrepreneurship development : Entrepreneurship development is the process of
improving the skills and knowledge of entrepreneurs. It can take place through formal
and informal learning system.
In the formal learning system, training programmes are conducted to bring about
awareness, knowledge and skills related to entrepreneurship.
Differences between product and service business activities :

Product Business Service Business

Service cannot be seen or

Product can be seen and touched.
touched.

Customer pays for physical exchange

Customer here pays for an experience.
of things.
 A product can be made and stored in A service, for example, cutting hair,
a shop. cannot be stored.

A service can be made, stored and A service cannot be made or

transported. transported.

The quality and quantity of a service

The quality and quantity of the
can be
product will be the same every time.
different at different times.

Steps of starting a business :

1. The first step is to come up with a business idea.
2. Getting money and material.
3. Understanding customer needs.
4. Improving Product/ service.

Assignment
1. Who is a person that takes risks and introduces new business ideas?
2. What is the process of launching and running a business?
3. What is a bold project that fulfills a societal need?
4. What type of business involves selling both products and services?
5. What type of business involves manufacturing products?
6. What are the qualities of a successful entrepreneur?
7. What are the three types of business activities?
8. What is the difference between a manufacturing business and a trade
business?
9. What are the five characteristics of entrepreneurship?
10. What is the difference between product business and service business?