Entrepreneur Skills Class 9 - definition etc.

Entrepreneur Skills Class 9

Entrepreneur Skills means, in our day-to-day life we often encountered with different types of problems in different spheres of our life. An entrepreneur is that person who identifies the problem and provide the solution to the society and to citizens by giving his products or services. And in doing so, the company or industry he forms is known as Enterprise. And that whole process is known as Entrepreneurial Process.

In a Bookish language - Setting up a business/industry on a new idea, which solves a major problem our society, by taking risks and creating the profit is known as Entrepreneurship.

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Table of Contents -:

• What is Entrepreneurship? and its Process?
• What is business?
• Business Vs. Entrepreneurship
• Types of Enterprises and Business
• Entrepreneurship at Various levels -:
• Entrepreneurship Vs. Employment
• Risks, Rewards and Challenges of an Entrepreneur
• FAQs
• Conclusion

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1. What is Entrepreneurship? and its Process

Let's, Take an Example to understand this term. We are going to take example of a real-life Entrepreneur named as Ritesh Agrawal. When he was of 18-year-old, he noticed a problem that it is quite tuff to get a good room in a lower price. Means, If you have a high budget then you could easily get Luxury rooms, but if you had a lower budget, you would get a room where even the necessary items (which were important for living) were not given. So, Ritesh Agrawal started OYO rooms to sort out the problem, he would provide the necessary suppliants to the customer and as well as good customer care service. And now, we could see that OYO has captured the market of hotel rooms.

So, by taking this example we could conclude that setting any business that is based on a new idea to sort out the problem of a society. and then investing on it and working on it is known as Entrepreneurship. The person who set ups the new idea-based business is known as Entrepreneur. And the business model so formed is known as Enterprise.

Many people thinks that an entrepreneur is a job seeker but in real they are job providers, and a country's GDP (Gross Domestic Production) depends on them. While developing a company, there comes an Entrepreneurial Process which is given below -:

In the diagram, you could see that at first a plan is to be developed, then we have to resource means- what are the thing which are required, then we have to manage our company and all our employees, then we have to harvest the profit, then we have to identify that what are our mistakes and loopholes. And this is how an Entrepreneurial process looks like.

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2. What is business?

Now, we have understood about Entrepreneurship, Let's discuss about Business. Business means forming a company/industry that is based on an old model. In Business there are not very risk because it is based on old idea due to which very much peoples are performing it already. Business is Calculative means, Profit and Risk could be created. We would discuss more differences between Business and Entrepreneurship on next section.

Some popular businessmen are -: Gautam Adani, Mukesh Ambani. They are not Entrepreneurs because they have not created something new instead of it, they were running the old business model and thus they are Business.

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3. Business Vs. Entrepreneurship

There are many differences between Entrepreneurship and Business. We will discuss some of them now -:

1. Entrepreneurship -:

• The first difference among them is The Entrepreneurship is based on a new idea.
• As, this is based on a new idea, only himself the Entrepreneur is working on it. So, there is no competition.
• As there is no competition, An Entrepreneur is a Market Leader.
• As this is a new idea, the risk factors are too much high.
• Profit and loss here will be intuitive means, no one could think about it.
• The main aim of an entrepreneur is to solve the problems of society.

2. Business -:

• The Business is totally based on a old idea.
• As, this is based on an old idea, many persons are already performing it, So, the competition goes here very much high.
• As there is high competition, A Businessman is a Market Player.
• As this is an old idea, everyone was performing it, the risk factors are not high.
• But here Profit and loss will be calculative.
• The main aim of a Businessman is to earn the profit and money.

So, these are some of the differences between an entrepreneur and a businessman.

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4. Types of Enterprises and Business

So, now we are going to know about what the types of business and Entrepreneurship are. There are mainly three sectors of Enterprise and Business, these are given below -:

• Product Based Enterprise/Business
• Service Based Enterprise/Business
• Technology Based Enterprise/Business

1. Product Based Enterprise/Business -: Product Based means that Enterprise/Business which makes actual and tangible goods to sell. Tangible means those goods which can be seen and touched by our hands. In today's time there are many companies, which comes under this sector, Like - Nike (It makes clothes and shoes which can be seen and touched), Adidas (It makes Football, Clothes which can be seen and touched) etc.

2. Service Based Enterprise/Business -: Those Enterprise/Business which sells their services, sells their skills to other peoples falls under Service based sector. It simply means that you had seen some websites, which builds the beautiful designs for you, websites for you etc. They are selling their skills to you, and they could not be touched by your hands. And thus they are Service Based Enterprise/Business.

3. Technology Based Enterprise/Business -: It means that all the Enterprise/Business which uses Technology, IT and ICT on their business falls under this category. Any company who is service based or product based could come inside technology based. Let's take an example to understand this sentence - You had taken some clothes from the website of Nike (Product Based). Before that you had logged in into website and gives your order details, then you could purchase anything. So, Nike will have certain data centers which stores your data and to store the data properly, they must have a tech team. And thus, they also fall under Technology Based.

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5. Entrepreneurship at Various levels -:

In this section we are going to learn about the various levels of Entrepreneurship which is a very important topic for class 9. There are mainly two levels of Entrepreneurship, these are given below -:

• SME - Small Medium Enterprise
• IDE - Innovation Driven Enterprise

1. SME -: SME stands for Small Medium Enterprise, as the name suggests small Enterprise. means setting up a small business or industry, in which there are not too much risk. SME supplies their product or services to a small area. The profit and Loss could not be exponential, and when the graph of profit and loss of SME will be checked, the lines will form a linear graph. These are usually service based business, and this could be started by even a small capital amount. The Business is usually controlled by the owner's family members. These SME's stay small.

2. IDE -: IDE stands Innovation Driven Enterprise. It is completely opposite to SME. It means setting up a large company or industry, which feeds a large number of people, whole country or even all continents. There is much risk in IDE. But, in a IDE, the profit and loss could be exponential. and it will not show a linear graph. The IDE required a large capital amount and funding to start it. Here, the business is controlled by shareholders and different employees. IDE may be started from a small point, but it can own a very large area.

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6. Entrepreneurship Vs. Employment

Entrepreneurship as you know, becoming your own boss and building up own's company that is based on a new idea, working on that company, and earning the profit from it. But, in this section we are going to talk about Employment, as this means, working for someone's company. And taking a monthly salary. The other differences between Entrepreneurship and Employment are given below -:

1. Entrepreneurship -: The first and the major difference between Entrepreneurship and Business is that you are your own boss. All roles from the owner of the company to the servant, you have to perform it all. You have to work 24 X 7, means everyday for all hours. An entrepreneur has to manage every resource within its company like - man, money and Machine. An entrepreneur has to take all decisions and goals by himself. An entrepreneur's first quality is to take care of all the staff members and employees that are working on his company. An entrepreneur can become big as much as he want means, he could touch the sky also. An entrepreneur helps in building the GDP of the nation, and he is also a job provider.

2. Employment -: In Employment, you have to work for someone other. An Employee has to work only that, which is being assigned to it by his officials. Here, you have to work for fixed hours, Like - 8AM to 5PM etc. An employee has to manage only that is being assigned to him. An employee's decisions and goals were being assigned for him by his upper ones. An employee would just look up to himself and his team only. An employee cannot go beyond the CEO (Chief Executive Officer) of that company. An employee just works for him self's monetary grains and he is not a job provider.

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7. Risks, Rewards and Challenges of an Entrepreneur

It is the last topic of the Entrepreneur Skills Class 9 chapter. In which we are going to learn about the Risk, Rewards and Challenges of an Entrepreneur. At first, we will talk about its Risks, then Rewards then at last Challenges.

Risks -:

1. No Regular Income -: As on starting on the field of Entrepreneurship, there will be a low income and, you will not find a regular income. Sometimes, the earnings can be increased exponentially and sometimes it can be decreased exponentially. Thus, it is said that the nature of Entrepreneurship is intuitive.

2. No Personal Time -: On the field of Entrepreneurship, there is hustle all day and on between this hustle, you would not find a single second for yourself and for your parents. You will work all day for improving the graph of your business.

3. Raising capital for your venture -: The first risks of an entrepreneur when it starts its Enterprise is to raise the funding for business. At the starting time, your company's profit graph will be very low, and thus no one will give you funding. And this is the first reason why most of the Ideas dies in their starting days.

Rewards -:

1. Follow your passion -: The first benefit of becoming an entrepreneur is that you could follow your passion and could live your life in your own terms & condition.

2. Monetary Gains -: You might think that the risk in Entrepreneurship is high, so you should also be agree by statement that the monetary gains from Entrepreneurship is uncountable, but after some years and months. Some one has said that "Risk takers are game changers".

3. Own time and Place -: Here, in Entrepreneurship, you are your own boss. So, you have the power to decide that, where you and all your employees will work and what should be the timing of work.

Challenges -:

1. Team Building -: Choosing the right team or candidates and considering their income is a big challenge for an entrepreneur.

2. Time Management -: Managing the time for his business could be the biggest challenge for an entrepreneur. An entrepreneur has to perform all work, manage the employees, gives them their salary, harvest the profit and many things, and for all these work an entrepreneur must have the skill of time management.

3. Decision Making -: An entrepreneur has to take all lowest to highest level of decision by himself. Entrepreneurs makes hundreds of decision every day, and it is very important to take right decisions at the right time.

4. Cashflow Management -: Cashflow is crucial for any business to survive. Cashflow means, payment from customers delays one one hand and on other hand giving employees's payment, debt repayment delays. Most of the ideas of an entrepreneurs dies because of poor cashflow management.

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8. FAQs

What does IDE stands for?

IDE stands for Innovation Driven Enterprise.

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What is Entrepreneurship and what is the main motto of an Entrepreneur?

Entrepreneurship means developing a business model which solves a major problem of the society, working on it and creating the business into a successful business. The main motto of an Entrepreneur is to solve the problem.

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What are the skills which are required must to become an successful entrepreneur?

Skills needed to become an successful entrepreneur are -: Communication skill, Risk Taking skill, Time Management skill, Money Management skill, Decision Making skill etc.

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9. Conclusion

At last, I want to say that I had tell you everything about an entrepreneur, skills required, what is Entrepreneurship?, risk, rewards, challenges to be faced in it. Now, it is in your hand that you want to become your own boss or wants that someone else controls you and become your boss. In my opinion, I would suggest you to become an entrepreneur rather than becoming an employee, I know that risks are much, but rewards are enormous in it.

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