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ANS.1) Entrepreneurship is the act and art of being an entrepreneur or one who

undertakes innovations or introducing new things, finance and business acumen in an effort to

transform innovations into economic goods. This may result in new organizations or may be part of

revitalizing mature organizations in response to a perceived opportunity.

The capacity and willingness to develop, organize and manage a business venture along with any

ofits risks in order to make a profit. The most obvious example ofentrepreneurship is the starting of

new businesses. In economics, entrepreneurship combined with land, labor, natural

resources and capital can produce profit. Entrepreneurial spirit is characterized by innovation and risk-

taking, and is an essential part of a nation's ability to succeed in an ever changing and

increasingly competitive global marketplace.

Factors affecting Entrepreneurship Development

Entrepreneurship is influenced by four distinct factors: economic development, culture, technological

development and education. In areas where these factors are present, you can expect to see strong and

consistent entrepreneurial growth.

Let us look at each one of them in details.

Economic Factors

1. Capital: Capital is one of the most important factors of production for the establishment of an

enterprise. Increase in capital investment in viable projects results in increase in profits which help in

accelerating the process of capital formation. Entrepreneurship activity too gets a boost with the easy

availability of funds for investment.

2. Labor: Easy availability of right type of workers also effect entrepreneurship. The quality rather thanquantity of labor influences the emergence and growth of entrepreneurship. The problem of labor

immobility can be solved by providing infrastructural facilities including efficient transportation.

Raw Materials: The necessity of raw materials hardly needs any emphasis for establishing any industrial

activity and its influence in the emergence of entrepreneurship. In the absence of raw materials, neither

any enterprise can be established nor can an entrepreneur be emerged

4. Market: The role and importance of market and marketing is very important for the growth of

entrepreneurship. In modern competitive world no entrepreneur can think of surviving in the absence of

latest knowledge about market and various marketing techniques.

5. Infrastructure: Expansion of entrepreneurship presupposes properly developed communication and

transportation facilities. It not only helps to enlarge the market, but expand the horizons of business

too. Take for instance, the establishment of post and telegraph system and construction of roads and

highways in India.

Social Factors: Social factors can go a long way in encouraging entrepreneurship. In fact it was the highly

helpful society that made the industrial revolution a glorious success in Europe. Strongly affect the

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entrepreneurial behavior, which contribute to entrepreneurial growth. The social setting in which the

people grow, shapes their basic beliefs, values and norms.

Caste Factor: There are certain cultural practices and values in every society which influence the actions

of individuals. These practices and value have evolved over hundred of years. For instance, consider the

caste system (the varna system) among the Hindus in India. It has divided the population on the basis ofcaste into four division. The Brahmana (priest), the Kshatriya (warrior), the Vaishya (trade) and the

Shudra (artisan): It has also defined limits to the social mobility of individuals.

2. Family Background: This factor includes size of family, type of family and economic status of family. In

a study by Hadimani, it has been revealed that Zamindar family helped to gain access to political power

and exhibit higher level of entrepreneurship.

3. Education: Education enables one to understand the outside world and equips him with the basic

knowledge and skills to deal with day-to-day problems. In any society, the system of education has a

significant role to play in inculcating entrepreneurial values.

4. Attitude of the Society: A related aspect to these is the attitude of the society towards

entrepreneurship. Certain societies encourage innovations and novelties, and thus approve

entrepreneurs actions and rewards like profits. Certain others do not tolerate changes and in such

circumstances, entrepreneurship cannot take root and grow.

5. Cultural Value: Motives impel men to action. Entrepreneurial growth requires proper motives like

profit-making, acquisition of prestige and attainment of social status. Ambitious and talented men

would take risks and innovate if these motives are strong. The strength of these motives depends upon

the culture of the society. If the culture is economically or monetarily oriented, entrepreneurship would

be applauded and praised; wealth accumulation as a way of life would be appreciated.

ANS.2) Successful businesspeople have many traits in common with one another. They are confident

and optimistic. They are disciplined self starters. They are open to any new ideas which cross their path.

Here are ten traits of the successful entrepreneur.

1. Disciplined

These individuals are focused on making their businesses work, and eliminate any hindrances or

distractions to their goals. They have overarching strategies and outline the tactics to accomplish them.

Successful entrepreneurs are disciplined enough to take steps every day toward the achievement oftheir objectives.

2. Confidence

The entrepreneur does not ask questions about whether they can succeed or whether they are worthy

of success. They are confident with the knowledge that they will make their businesses succeed. They

exude that confidence in everything they do.

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3. Open Minded

Entrepreneurs realize that every event and situation is a business opportunity. Ideas are constantly

being generated about workflows and efficiency, people skills and potential new businesses. They have

the ability to look at everything around them and focus it toward their goals.

4. Self Starter

Entrepreneurs know that if something needs to be done, they should start it themselves. They set the

parameters and make sure that projects follow that path. They are proactive, not waiting for someone

to give them permission.

5. Competitive

Many companies are formed because an entrepreneur knows that they can do a job better than

another. They need to win at the sports they play and need to win at the businesses that they create. An

entrepreneur will highlight their own companys track record of success.

6. Creativity

One facet of creativity is being able to make connections between seemingly unrelated events or

situations. Entrepreneurs often come up with solutions which are the synthesis of other items. They will

repurpose products to market them to new industries.

7. Determination

Entrepreneurs are not thwarted by their defeats. They look at defeat as an opportunity for success. They

are determined to make all of their endeavors succeed, so will try and try again until it does. Successful

entrepreneurs do not believe that something cannot be done.

8. Strong people skills

The entrepreneur has strong communication skills to sell the product and motivate employees. Most

successful entrepreneurs know how to motivate their employees so the business grows overall. They are

very good at highlighting the benefits of any situation and coaching others to their success.

9. Strong work ethic

The successful entrepreneur will often be the first person to arrive at the office and the last one to

leave. They will come in on their days off to make sure that an outcome meets their expectations. Their

mind is constantly on their work, whether they are in or out of the workplace.

10. Passion

Passion is the most important trait of the successful entrepreneur. They genuinely love their work. They

are willing to put in those extra hours to make the business succeed because there is a joy their business

gives which goes beyond the money. The successful entrepreneur will always be reading and

researching ways to make the business better.

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11.Team Player: Those who go into business for themselves but do not utilize teamwork wind up

without the team but still have all the work to get done. They shoulder the whole burden for

themselves, and wind up just trading their old job for a new and more demanding one in an attempt to

be self-employed. But the new venture carries greater personal and financial risks.

12) Grateful: Being grateful for what we have opens us up to receive more, and one reason that is true is

because those who are grateful appreciate what they are given. They respect it and nurture it. They do

their best to make it grow instead of allowing it to dwindle away due to neglect. Entrepreneurs learn to

take nothing for granted in this world. That gives them the agility and flexibility to adapt to changes and

demands, while it also invests in them a thankfulness that reminds them that riches and wealth are not

about stuff, but are about fulfillment, satisfaction, and the pleasure that comes from ones

accomplishments and contributions.

13) Optimistic: A positive outlook is essential for the entrepreneur, who learns to see setbacks as

bargain priced tuition for the valuable business lessons gained through firsthand experience. Past

shortcomings, failures, or disappointments are relegated to the past so that they cannot continue to

haunt the present or obstruct the future. And when things go right and business prospers, this further

fuels the optimism and positive mindset of an entrepreneur, helping to give impetus and momentum for

greater accomplishments and increased hopefulness.

14) Not Afraid of Risk or Success

Many people could be successful if they only took chances. And many people who do take chances and

become somewhat successful find the realization of their dreams an overwhelming possibility, so they

sabotage their continued success by retreating back into a comfort zone of smallness. As discussed

earlier, the employee mindset is preoccupied with a need for security. Those who cling to what is

familiar to them even if it means the denial of their dreams lack the perseverance and ambition that

the real entrepreneur exhibits. Entrepreneurs are not immune to fear. But they prioritize their approach

to life so that the fear of failure, frustration, boredom, drudgery, and dissatisfaction far outweighs the

lingering fear of success.

Successful entrepreneurs want to see what the view is like at the top of the business mountain. Once

they see it, they want to go further. They know how to talk to their employees, and their businesses soar

as a result.

ANS.3)