ENTREPRENEURSHIP

(BMA6033)

VIKNESWARY A/P NARAYANAN

22710130
MASTER OF BUSINESS ADMINISTRATION

INTERNATIONAL UNIVERSITY COLLEGE OF TECHNOLOGY

 ENTREPRENEURSHIP (BMA6033)

QUIZ

QUESTION 1

Four characteristics of entrepreneurship.

i. Self-confidence
Self-confidence is the cornerstone of entrepreneurial success. By cultivating a
positive mindset and taking persistent action, entrepreneurs can unleash their
full potential. With unwavering self-belief, they can overcome challenges,
inspire others and navigate the everchanging landscape of entrepreneurship.
With self-confidence, entrepreneur having ability to transform fear into
focused thinking, communication and action. Self-confidence is what will allow
an entrepreneur to turn obstacles into opportunities, weaknesses into
advantages and setbacks into breakthrough.

ii. High energy level

High energy level entrepreneur is someone who has lot of available energy
for his or her business activities. They understand that energy is a finite
resource and that there are ways to maximize it such as through sleep, diet
and exercise. Entrepreneurial energy is endogenous force that fuels
motivation and sustains entrepreneurial action and momentum. Encapsulating
hope, optimism and obsessiveness, the nature and experience of the
entrepreneurial energy provides meaning to the entrepreneurial pursuit and
venture.

iii. Flexibility
A flexible entrepreneur is someone who is adaptable and able to pivot their
business strategy as needed. They are willing to try new things and take
calculated risks in order to stay ahead of the competition. Being adaptive and
 flexible also entails being open to new ideas and opinions. It is critical to be
ready to examine other ways and to attempt new things. It is equally critical to
be able to modify the viewpoint when confronted with fresh facts or proof.

iv. High need for achievement

Entrepreneurs with a high need for achievement are self-motivated and do
not require external validation or encouragement to stay on track. They are
driven by their own internal desire to succeed and are willing to put in the
hard work and dedication required to achieve their goals. Entrepreneurs are
characterized by a need for achievement or an achievement orientation,
which is a drive to excel, advance and grow.

QUESTION 2

Four reasons contributing to the failure of small business

i. Poor leadership
Business can fail if manager exhibit poor management skills, which can be
evident in many forms. Owner or manager will struggle as a leader if don’t
have enough experience making management decisions, supervising a staff,
or the vision to lead the organization. Perhaps, leadership team is not in
agreement on how the business should be run. Owner and leaders may be
arguing with each other publicly or contradicting each other’s instructions to
the staff. When problems requiring strong leadership occur, manager may be
reluctant to take charge and resolve the issues while your business continues
to slip toward failure.

ii. Poor financial control

A primary reason why small businesses fail is a lack of funding or working
capital. In most instances a business owner is intimately aware of how much
money is needed to keep operations running on a day-to-day basis, including
funding payroll; paying fixed and varied overhead expenses, such as rent and
 utilities; and ensuring that outside vendors are paid on time; however, owners
of failing companies are less in tune with how much revenue is generated by
sales of products or services. This disconnect leads to funding shortfalls that
can quickly put a small business out of operation.

iii. Lack of expertise

Another common reason small businesses fail is a lack of business acumen
on the part of the management team or business owner. In some instances, a
business owner is the only senior-level person within a company, especially
when a business is in its first year or two of operation. While the owner may
have the skills necessary to create and sell a viable product or service, they
often lack the attributes of a strong manager and don't have the time to
successfully oversee other employees. Without a dedicated management
team, a business owner has greater potential to mismanage certain aspects
of the business, whether it be finances, hiring, or marketing.

iv. Bad or no strategy

Business owners who fail to address the needs of the business through a well
laid-out plan before operations begin are setting up their companies for
serious challenges. Similarly, a business that does not regularly review an
initial business plan or one that is not prepared to adapt to changes in the
market or industry will meets potentially insurmountable obstacles throughout
the course of its lifetime. To avoid pitfalls associated with business plans,
entrepreneurs should have a solid understanding of their industry and
competition before starting a company. A company’s specific business model
and infrastructure should be established long before products or services are
offered to customers and potential revenue streams should be realistically
projected well in advance. Creating and maintaining a business plan is key to
running a successful company for the long term.