02.

Abbreviations
 CCI - Commodity Channel Index
 CIBIL - Credit Information Bureau (India) Limited
 FICCI - Federation of Indian Chambers of Commerce & Industry
 LLP - limited liability partnership
 MSME - Micro, small & Medium Enterprises
 MUDRA - Micro Units Development & Refinance Agency Ltd
 PMEGP - Prime Minister Employment Generation Programme
 PPP - Public-private partnership
 SARFAESI - Securitization and Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002
 SMERA - Small and Medium Enterprises Rating Agencies

03.a) Entrepreneurial trait –

Ans- Entrepreneurial traits are the typical characteristics, abilities and thought patterns
associated with successful entrepreneurs. While some entrepreneurs are born with these traits,
others can develop them. These include: Being a good leader. Being optimistic.

Motivation

Hard mindset -working business owners are incredibly motivated to succeed. Fortunately,
showing you’re highly motivated is simple.You have to show up to work every day with a
positive attitude.

Creativity

No matter what industry you’re in, employers want workers with out-of-the-box ideas. They
want employees to be able to not only carry out assignments, but also come up with better ways
of doing things. That’s why it’s important to be creative to always be thinking of new ways you
can improve your company’s workflow, productivity,

Persuasiveness

Persuasiveness can make you a better negotiator, which gives you an edge when going after a
plum assignment, raise, or promotion

Vision

Successful entrepreneurs always keep one eye on the big picture, and this ability can make you a
better employees.
Versatility

You have to be able to adapt to changes in the workforce. You want to be someone that your
boss can go to in a pinch, so be prepared to tackle work that’s outside your job description. It’s
also important to be an early ad

Ultimately, using entrepreneurial skills at work entails adjusting to other people’s work styles,
avoiding office politics, celebrating your peers’ successes, meeting your deadlines, and putting
your company’s goals first.
b) Entrepreneurial skill –
Ans- Entrepreneurship is ‘an individual’s ability to turn ideas into action. It includes
creativity, innovation and risk-taking, as well as the ability toplan and manage
projects in order to achieve objectives’.
It is seen as vital to promoting innovation, competitiveness and economic growth
.Fostering entrepreneurial spirit supports the creation of new firms and business
growth. However, entrepreneurship skills also provide benefits regardless of whether
a person sees their future as starting a business. They can be used across people’s
personal and working lives as they encompass ‘creativity, initiative, tenacity,
teamwork, understanding of risk, and a sense of responsibility ’What constitutes
entrepreneurship skills has been the subject of much discussion. Unlike other
important economic skills, entrepreneurial skills .are not related to a specific
occupation, discipline or qualification. How ever, the greater emphasis on
entrepreneurship education and developing entrepreneurial skills has brought more
analysis and agreement of entrepreneurial abilities and competencies.

c) Entrepreneurial motivation –
Ans -entrepreneurial goals. In other words, the entrepreneurial motivation refers to the forces or
drive within an entrepreneur that affect the direction, intensity, and persistence of his / her
voluntary behaviour as entrepreneur. So to say, a motivational entrepreneur will be willing to
exert a particular level of effort , for a certain period of time toward a particular goal.

Motivation is regarded as “the inner state that energizes activities and directs or channels
behaviour towards the goal.

Motivation is the process that arouses action, sustains the activity in progress and that
regulates the pattern of activity.
d) Start up-

Ans - startup is a young company founded by one or more entrepreneurs to develop a

unique product or service and bring it to market. By its nature, the typical startup tends to
be a shoestring operation, with initial funding from the founders or their friends and
families.

 A startup is an entrepreneurial venture in search of enough financial backing to get

off the ground.
 The first challenge for a startup is to prove the validity of the concept to potential
lenders and investors.
 Startups are always risky propositions but potential investors have several
approaches to determining their value.

e) Venture capital –

Ans- Venture capital is a form of private equity and a type of financing that investors
provide to start up companies and small businesses that are believed to have long term
growth potential. Venture capital generally comes from well-off investors, investment
banks, and any other finacial institutions. However, it does not always take a monetary
form; it can also be provided in the form of technical or managerial expertise. Venture
capital is typically allocated to small companies with exceptional growth potential, or to
companies that have grown quickly and appear poised to continue to expand.

 Venture capital financing is funding provided to companies and entrepreneurs. It

can be provided at different stages of their evolution, although it often involves
early and seed round funding
 Venture capital funds manage pooled investments in high-growth opportunities in
startups and other early-stage firms and are typically only open to accredited
investors.
 It has evolved from a niche activity at the end of the Second World War into a
sophisticated industry with multiple players that play an important role in spurring
innovation.

04.Sources of finance for Entrepreneur-

I. Business angels
Business angels (BAs) are wealthy individuals who invest in high growth businesses in return for a share in the
business. Some BAs invest on their own or as part of a network. BAs are often experienced entrepreneurs and
in addition to money, they bring their own skills, knowledge and contacts to the company.  .
 II. Venture capital
Venture capital is also known as private equity finance. Venture capitalists look to invest larger sums of
money than BAs in return for equity.Venture capital is most often used for high-growth businesses destined for
sale or flotation on the stock market.

III. Crowdfunding
Crowdfunding is where a number of people eachinvest, lend or contribute small amounts of money to your
business or idea. This money is combined to help you reach your funding goal. Each individual that backs your
idea will usually receive rewards or financial gain in return.

IV. Enterprise Investment Scheme (EIS)

Some limited companies can raise funds under the EIS. The scheme applies to small companies carrying on a
qualifying trade.

There are potential tax advantages for individuals who invest in such companies, such as:

 the buyer of the shares gets income tax relief at 30 per cent on the cost of the shares
 Capital Gains Tax (CGT) on the sale of other assets can be deferred if the gain is reinvested into EIS
shares
Certain conditions must be met for a company to be a qualifying company and for an investor to be eligible for
tax relief - see HM Revenue & Customs

V. Alternative Platform Finance Scheme

If your small business is struggling to access bank finance, there is now a new government scheme in which
the UK's biggest banks will pass on details of any businesses they have rejected to three alternative finance
providers.

VI. The stock market

Joining a public market or stock market is another route through which equity finance can be raised. A stock
market listing can help companies access capital for growth and raise finance for further development.

05 . sources of ideas for entrepreneur

 From existing products

 From marketing distribution channels

 From research and development

 From the Government of the day

 From consumer or target audience

 From existing products and services