Programme Name: BCS (HONS)

Course Code: MPU 3223

Course Name: Basic Entrepreneurship

First assignment

Date of Submission: 12/06/2020

Submitted By: Submitted To:

Student Name: Anil khatri Faculty Name: Sweta Adhikari

IUKL ID: 041802900008 Department: BCS

Semester: 5th

Intake: September2018
You have a friend who is very interested in cooking and baking. Since she was
10, she has been cooking different dishes instinctively. She refers to YouTube for
newer recipes, watching cooking shows, and keenly participating in different
training and programs related to cooking. At recent times, she has been baking
different types of cookies and bread and selling them to her friends, neighbors,
and relatives. To her delight, she has been receiving orders from people who like
her food. These people are mostly contacts of people who she has sold her work
to. She has a feeling the she needs to work more professionally now. She knows
that you are studying entrepreneurship. So, she wants to talk to you about:

A.Is it good idea for her to launch a venture at this point of time? If yes, why?
And if no, why?

[while answering the question please be mindful of; how has the concept of
entrepreneurship evolving overtime and what does it mean in today’s context,
what are the characteristics and qualities of an entrepreneur, why do people
become entrepreneurs, and what could be some benefits and drawbacks of
entrepreneurship?

Ans: As there is saying “It is never too late to start something.” yes, it’s a good idea
for her to lunch a venture at this point of time because at this point many business
face problem circulating their business normal way. Starting her own business
venture is a tempting thought. She can be her own boss instead of being hectored
around. She can gain life experience and know many people. we have seen friends,
relatives, neighbors and even colleagues do it. With this opportunity to open a
venture you'll make it more homely with a really secure and safe environment. With
this said, I might wish to ask her about entrepreneurship. To start out a business an
individual must know what a business is. Nowadays, entrepreneur is increasing day
by day in whole world with new ideas to determine an old business. Yet, being her
own boss is no easy task. For every business venture that is successful, there are two
that bite the dust, and for good reasons too. Since her products are being liked by the
people which means she has already one step ahead toward her entrepreneurship.
 As for the successful entrepreneurship she should build up some good qualities and
carry out some habits for good step ahead. Following are the some characteristics and
qualities she should build up for successful entrepreneur:-

 Desire and willingness to take initiative

 Preference for moderate risk

 Confidence in their ability to succeed

 Self-reliance: Independent (thinking and doing)

 Perseverance: Determination

 Desire for immediate feedback

 High level of energy

 Competitiveness

 Future orientation

 Skilled at organizing

 Value of achievement over money

As there is always advantage as well as disadvantage of business or start-up.

following are the some of the advantage and drawback of entrepreneurship.

The advantages of entrepreneurship include:

 The entrepreneur gets the chance to participate in a venture that they enjoy. This
increases the chances of success in the venture since the individual is passionate and
dedicated to work for the venture.

 Entrepreneurship offers flexibility to the entrepreneur allowing them to participate

in family and social activities.

 An entrepreneur has the capacity to set a salary that they believe is commensurate
to their input and this helps improve the level of motivation to achieve more.

The disadvantages of entrepreneurship include:

 Uncertainty of income

 Risk of losing your entire invested capital

 Long hours and hard work

 Lower quality of life until the business gets established

 High levels of stress

 Complete responsibility

 Discouragement

B. Also, explain her about two major schools of entrepreneurship in detail

and how it can affect her entrepreneurial journey and success/failure.

Ans: From the above mentioned points, there are further more things to look into if
you are going to start your entrepreneurial journey. There are two different major
school of thoughts of entrepreneurship depending upon the locus of control,
namely:

Macro View:
Macro view contains the factors related to the success/failure of an entrepreneurial
journey in the external locus of control(Psychological concept where one believes to
have control over the situations and experiences affecting his/her life.) These factors
are out of the reach of the potential entrepreneur and has to adjust as per these
factors. This view includes following sub-categories:
Environmental School of Thoughts:
Entrepreneurs’ success is highly influenced by the environment they live in.
Example; school, friends, family,etc.
Financial School of Thoughts:
This school of thought estimates that entrepreneurs can only reach their goal if
they have;
(a) capital,
(b) knows how to grow it, and
(c) knows how to manage it.
Displacement School of Thoughts:
This school of thought explains that, in case of a situation where a person feels less
valued, or displaced then such feeling will cause him/her to pursue entrepreneurial
venture to create a mark and change the people’s attitude and perception towards
him/her.

Micro view
The micro view of entrepreneurship focuses on what the entrepreneur can actually
control.
• The Entrepreneurial Trait School of Thought: Entrepreneur’s success largely
depends on the traits/characteristics that an entrepreneur exhibits.
• Venture opportunity School of Thought: This school of thought outlines that, an
entrepreneur’s ability to sense an opportunity, and capitalize it also influences his/her
success as an entrepreneur.
• Strategic Formulation School of Thought: This school holds that an entrepreneur’s
ability to develop unique and relevant strategy to position itself in the market largely
determines their venture’s success.

Hence, these are the major schools of thoughts to consider before starting a
successful venture journey. Before you take that step ahead, these schools of
thoughts are essential to put in account because once you process your idea through
these schools, you will have a clear view on the market conditions, where you will
be when you start, your competition, your slowing stones, the ways to outweigh
those stones for a successful venture.
C. Also, explain to her the different approaches to entrepreneurship, so
that she understands the concept more clearly with widened
perspective towards it.

Please give example, so that your advice becomes more insightful.

Ans: As I have already mentioned that entrepreneurship is not something you are
born with, rather acquired with learning and experience. There are few approaches
toward entrepreneurship which might make you more insightful. Specifically, there
are four approaches to study entrepreneurship. They are:
• Economic Approach

Entrepreneurship is an economic phenomenon. It's observed in firms, and it to profit,

or other value, for the entrepreneur and the society.

• Sociological Approach

Entrepreneurial firms are active in human societies. They interact with other firms or
groups of people; such as customers and local communities. This approach considers,
how humans function within groups and societies. Concepts from sociology that
should be considered while studying entrepreneurship are; social norms, social
capital, and social networks.

• Psychological Approach

The entrepreneurial activities are mainly driven by an individual (the entrepreneur),

with their own psychological characteristics and needs. There have been many
attempts to link specific psychological characteristics to successful as well as
unsuccessful entrepreneurship.