Cumilla University

Department of
Accounting & information systems
Term-paper on

Entrepreneurship
Course title: Introduction to business
Course code: 112

SUBMITTED TO:
Mr. Shuvabrata Saha Submitted by:
Associate Professor, Afrin sultana shorna
Id: 12306013
Department of Accounting &
17th batch
Information Systems Department of AIS
Comilla University Comilla university

Submission date: 08-11-2023

1
October 23, 2022
Mr. Shuvabrata Saha
Associate Professor,
Department of Accounting & Information Systems,
Comilla University,Comilla

Subject:Prayer for granting our term paper on “entrepreneurship”

Dear Sir,
With due respect and humble submission, we would like here to state that, we are student of BBA
program (17th Batch), session 2022-2023 of Department of Accounting & Information Systems,
Comilla University. We are delighting to submit here with a copy of term paper report for your kind
evaluation and appreciation.

This report is about "entrepreneurship" Term Paper. We have found the study to be quite interesting,
beneficial, and knowledgeable and it has been a blissful and instructive experience for us to prepare
this report.

For your kind consideration we would like to mention that there might be some errors and mistakes
due to limitations of our knowledge. We hope that you will forgive us considering that we are still
learner and in the process of learning.

Thanking for your time and reviews. We sincerely hope that this term Paper report will get your
approval. We would be glad to furnish you with clarifications, if required.

Sincerely yours,
Afrin sultana shorna
(ID No:12306013)

On behalf of Group-D

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 Acknowledgement

The Performance of term paper its accomplishment successfully is quite impossible except someone
who can sincerely and constructively assist us to make this term paper and thus we would like to
specially extend thanks to our honorable course teacher Mr. Shuvabrata Saha for his support, valuable
insights, and suggestions regarding the preparation of term paper to its completion. It is a great pleasure
in submitting the term paper on “entrepreneurship" under the course "Introduction to Business" We are
truly grateful to our respective sir who made a chance for us to have the knowledge about this. We
hope in future we will get his assistance to make such kind of study and we also hope we will get his
solitude indications and valuable advice. At last, we would like to thank almighty Allah for answering
our prayers and giving us the strength, courage, and patience to finish this task within responsible time.

3
 Group Members

SL NO. NAME ID NO.

1. Afrin sultana shorna (Leader) 12306013

2. Md. Roni mia 12306020

3. Md. Nadim 12306007

4. Md Shahin ahmed 12306046

5. Mehedi hasan 12306022

4
 Table of Content

Content no Content Page no

1. entrepreneurship

2. entrepreneur

3. characteristics of entrepreneurs

4. manager

5. leader

6. Difference between a manager, a leader and a

entrepreneur
7. What is intrapreneur

8. Characteristics of intrapreneur

9. Difference between entrepreneurs and intrapreneurs

10. Risk of entrepreneurship

11. Needs of entrepreneurship

12. Franchise

13. Franchising

14. Small business

15. Small business administrative

16. Small business large Impact

17. Previous year questions

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 Entrepreneurship
Entrepreneurship
Entrepreneurship refers to the process of starting and managing a business, taking on financial risks in
the hope of achieving profit and success. Entrepreneurs are individuals who identify opportunities,
innovate, and organize resources to create and run a business. It involves a combination of creativity,
initiative, and a willingness to take on challenges in the pursuit of business goals.

Definition of an entrepreneur?
The individual who takes the responsibility to establish and conduct business is called as an entrepreneur.
The word ' Entrepreneur ' comes from the French word ' Entreprendre ' that means ' to undertake ' and ' to
purpose opportunities '. That means " to fulfill needs and wants through innovation and starting business "

Characteristics of entrepreneurs?
❖ Need for achievement: a strong desire to succeed to grow, to accomplish challenging task. The
strong desire for achievement leads to a desire for independence. Such enterpreneurs need to be
free to set their own course. Established there own goals and use their own style.
❖ Low need to conform: entrepreneur listen but they are able to ignore others “advice”. Also,
handling is skepties is easy for entrepreneurs. Taking the unpopular course of action. if they
considered it best, is the way they do business.
❖ Persistence: growth-oriented entrepreneurs are persistent doggedly doing what is best for the
business to succeed. they work hard on the details and relentnessly attempt to find way to
become more profitable.
❖ High energy level: the capacity for sustained effort requires a high energy level. All the
necessary work—planning, organizing, directing, creating strategy and finding funds-- can only
be accomplished on a demanding schedule. The 60 to 80 hour work week is common.
❖ Risk taking tendency: Mc Clelland's finding suggest that people with a high Neat for
achievement tend to take risks. Growth oriented entrepreneurs believe so strongly in their ability
to achieve that they do not see much possibility to failure. Thus they accept risk and find it
motivating.
❖ Data driven decision making: they rely on data analysis to make informed decisions, optimize
marketing efforts and understand customers behaviour.
❖ Globalization: They explore International Markets and are not limited by Geographic
boundaries, aiming to capitalize on global opportunities.
❖ Sustainability: many of them recognize the importance of sustainability and incorporate
ecofriendly practices into their business strategies to appeal to environmentally conscious
consumers.
❖ Continuous learning: They understand the importance of staying updated on industry trends,
regulations and emerging Technologies.
❖ Adaptability: In a rapidly changing business environment, they remain adaptable and are not
afraid to pivot their strategies whe necessary.
❖ Collaborative partnerships: they form strategic partnerships and collaborations to access new
markets, technology and resources.

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 ❖ Innovation Hubs: growth oriented entrepreneurs may be based in or closely connected to
innovation hubs, fostering creativity and collaboration with other innovative business.
❖ Customer centricity: they prioritize providing exceptional customers experience recognizing that
satisfied customers can become brand advocates and fuel growth.
❖ Diverse talent: They volve diversity in their workforce, believing that a diverse team can bring
fresh perspectives and ideas that drive Innovation and growth.
❖ Rapid scaling: They are prepared to scale rapidly whe the opportunity arises while managing the
associated challenges effectively.
❖ Brand building: they invest in building a strong brand presence and reputation, which Can
attract loyal customers and open up opportunities.

Differences between an entrepreneur and entrepreneurship

Entrepreneur Entrepreneurship
• An individual who initiates and manages • The overall concept, process, and activities
a business or venture, taking on the risks involved in creating and managing new
associated with it. businesses.

• The focus is on the individual who starts • The focus is on the broader concept of
and runs a business, their qualities, and business creation, including the ecosystem,
their decision-making abilities. culture, and strategies that support
entrepreneurship.

• Acts as the key driver and decision-
maker in a specific business venture.
• Concentrates on a single person involved
in a business.
• Encompasses the entire field of business
creation and development, including
various business ventures and their
founders.
• Encompasses a wide range of activities,
from idea generation to business planning,
financing, and growth.

• Bears the primary responsibility and risk • Involves risk-taking at various levels,
associated with their specific business. including financial, market, and strategic
risks.

• Often associated with introducing • Encourages and supports innovation in

innovative ideas and solutions in their business and the economy as a whole.
business.

• Contributes to economic development • Contributes to economic growth and job

through their individual business creation at a larger scale by fostering a
ventures. culture of business innovation.

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 • May operate at a small or large scale, • Can involve the creation of various types
depending on the nature of their and sizes of businesses within a given
business. economy.

So these were the vital differences between entrepreneur and entrepreneurship. From these distinctions,
we get a clear idea about the two related terms which seem to be similar very often, but as we can see
actually they have several significant dissimilarities between themselves

Manager
A manager is an individual responsible for overseeing and coordinating the activities of a group of
people or a department within an organization. Their role often involves planning, organizing, and
directing resources to achieve specific goals and objectives. Managers play a crucial role in decision-
making, team leadership, and ensuring the efficient operation of their area of responsibility.

Leader
"Leader" typically refers to a person who guides or directs a group, organization, or country. Leaders
often influence and inspire others to achieve common goals. Leadership qualities can vary and may
include traits like vision, decisiveness, and effective communication.

8
Difference of a manager a leader and a entrepreneur

points Manager Leaders Entrepreneur

➢ Managers are ➢ Leader ➢ Entrepreneurs

primarily concentrate the are driven by
concerned with bigger picture identifying
operation all vision and opportunities
Focus details task and long-term goals creating new
ensuring that of an products or
work is organization. services and
completed building
efficiently. businesses
from seratch.
➢ They make ➢ They make ➢ They take
decisions based decisions that calculated ricks
on established align with the and make
policies organizations decisions that
Decision Making procedures and vision and can
guidelines. inspire others to significantly
follow. impact the
success or
failure to their
venturs.
➢ Managers ➢ Leaders can ➢ Entrepreneurs
typically emerge from typically start
operate within any level of an with minimal
an existing organizations or no hierarchy
Hierarchy organization and may not and gradually
hierarchy and hold formal build their
have positions of organizations.
designated authority
positions.
➢ The innovation ➢ They encourage ➢ They are at the
for a managers Innovation and forefront of
is to drive change, innovation,
growth, stay fostering a constantly
competitive culture of seeking new
and adapt to adaptability and and better ways
changing growth. of doing things.
Innovation market
dynamics. It
involves
identifying
opportunities
for
improvement
fostering a

9
 culture of
creativity and
implementing
new ideas to
enhance
efficiency and
product service
quality.
➢ Manager are ➢ Leaders are ➢ Entrepreneurs
accountable for responsible for bear the
the execution setting a ultimate
task and direction, responsibility
Responsibly achieving motivating for the success
short-terms teams and and survival of
objectives. creating a their venture.
positive work
environment.
➢ They are skills ➢ Their skill set ➢ They are skill
set often includes set includes
includes communication, creativity,
planning, inspiration and adaptability
Skills organizing, the ability to resourcefulness
budgeting and influence and and the ability
problem inspire others. to manage
solving within uncertainly.
defined
boundaries.
➢ Managers ➢ Leader lead ➢ Entrepreneurs
manage people people by often need to
as employees example, wear many
and aim to inspiring and hats, from
People ensure that empowering leadership to
work is carried them to achieve management in
out according a shared vision. the early stage
to established of their
standards. Ventures.

What is intrapreneur?
An “intrapreneur” is an employees within a larger organisation who behaves like an entrepreneur. They
take on innovative and proactive rules to develop and implement new ideas, products or processes
within the company. Intrapreneur are typically encouraged to take risks, think creatively and drive
change within the corporate structure to promote growth and innovation.

Characteristics of intrapreneur
1. Creativity: Intrapreneurs generate new ideas and think outside the box.
2. Risk-taking:They embrace calculated risks to pursue opportunities.
3. Proactiveness: Intrapreneurs are proactive in identifying and addressing challenges.

10
4. Autonomy: They seek autonomy to drive projects and make decisions.
5. Resourcefulness: Intrapreneurs find creative solutions with available resources.
6. Vision: They have a clear vision and strategic outlook for their initiatives.
7. Adaptability: Intrapreneurs adapt to change and pivot when necessary.
8. Passion: They are passionate about their projects, driving sustained effort.
9. Leadership: Intrapreneurs can lead and inspire teams toward a common goal.
10. Persistence: They persevere through obstacles, learning from failures.
11. Customer-focus: Intrapreneurs prioritize meeting customer needs and preferences.
12. Networking: Building internal and external relationships is crucial for success.
13. Result-oriented: They focus on achieving tangible outcomes and impact.
14. Innovativeness: Intrapreneurs constantly seek innovative solutions and improvements.
15. Problem-solving: They excel at identifying and solving complex problems.

Differences between entrepreneurs and intrapreneurs:

Entrepreneurs Intrapreneurs

▪ Entrepreneurs own and operate their ▪ Intrapreneurs work within an existing

own businesses.
▪ Entrepreneurs assume all the financial
risks associated with their business.
organization and do not own the
company.
▪ Intrapreneurs do not bear the financial risks;
they operate within the organization's
budget.

▪ Entrepreneurs create new businesses, ▪ Intrapreneurs innovate and drive new

products, or services from scratch. projects or ideas within an established
company.
▪ Entrepreneurs have full control over ▪ Intrapreneurs work within the established
their businesses and decision-making. hierarchy and may have limited autonomy.

▪ Entrepreneurs establish their own ▪ Intrapreneurs operate within the existing

organizational structure. organizational structure.

▪ Entrepreneurs must secure their own ▪ Intrapreneurs have access to the company's
resources and funding. resources and support.

▪ Entrepreneurs are primarily motivated ▪ Intrapreneurs may be motivated by

by the potential for profit and financial improving the company's performance or
success. achieving specific goals, with less direct
financial gain.

▪ Entrepreneurs have the flexibility to ▪ Intrapreneurs work within the longevity and
pivot or close their businesses as they see stability of the parent company.
fit.

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 ▪ Entrepreneurs are responsible for ▪ Intrapreneurs operate within the existing
complying with all relevant legal and legal framework of the organization.
regulatory requirements for their
business.

▪ Entrepreneurs often drive disruptive ▪ Intrapreneurs typically focus on incremental

innovations and create entirely new innovations that enhance the company's
markets. existing products or services.

Risk of entrepreneurship
The risk of entrepreneurship refers to the potential for financial, personal, and professional loss or
adversity that individuals or organizations face when they undertake entrepreneurial activities, such as
starting and running a new business or venturing into innovative projects. It encompasses the
uncertainties, challenges, and potential negative outcomes associated with entrepreneurial endeavors,
including financial investments, market dynamics, competition, operational issues, and the risk of
business failure. Entrepreneurs knowingly assume these risks as they pursue opportunities for
innovation, growth, and financial success, understanding that the potential rewards can outweigh the
inherent uncertainties and potential setbacks.

1.Financial Risk:
Starting a business often requires a significant financial investment. Entrepreneurs risk their savings,
taking out loans, or seeking investors. There's a chance of losing the entire investment if the business
doesn't succeed. This can lead to personal financial instability and even bankruptcy.

2.Market Risk:
Market risk is prevalent, as entrepreneurs must navigate ever-changing consumer preferences,
economic fluctuations, and industry trends. If the market doesn't respond favorably to a product or
service, the business can suffer losses.

3.Competition:
Entrepreneurs often face stiff competition. Existing businesses with established customer bases can
make it challenging for newcomers to gain a foothold in the market. Competing with well-funded or
more experienced companies adds to the risk.

4. Operational Risk:
Managing day-to-day operations, hiring and retaining skilled employees, and ensuring the supply
chain runs smoothly are constant challenges. Operational failures can lead to losses or even business
failure.

5. Legal and Regulatory Risk:

Complying with laws and regulations, including permits, licenses, and tax requirements, is crucial.
Legal issues, such as lawsuits or regulatory fines, can have a substantial financial and operational
impact.

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6. Personal Sacrifice: Entrepreneurship often requires long hours and personal sacrifices. The stress
and strain on personal relationships and well-being can be considerable.

7. Failure Risk:
Many startups fail within their first few years. This can be emotionally and professionally challenging
for entrepreneurs who put their heart and soul into their ventures.

8. Health Risk:
The stress and pressure of entrepreneurship can take a toll on an individual's physical and mental
health, potentially leading to burnout and other health-related issues.

9. Reputation Risk:
A business's reputation is fragile. Negative customer reviews, product recalls, or public relations
crises can severely damage a company's image and credibility

Needs of entrepreneurship
The needs of entrepreneurship refer to the specific requirements and demands that entrepreneurship
fulfills in society and the economy. These needs encompass job creation, innovation, economic growth,
wealth generation, market diversity, community development, skills development, resilience, and other
factors that contribute to the well-being and progress of individuals, communities, and nations.
Entrepreneurship addresses these needs by creating and running businesses, developing new products
and services, and fostering an environment of innovation and economic development.

1. Job Creation: Entrepreneurship is a significant source of job opportunities. New businesses hire
employees, thereby reducing unemployment and enhancing income levels in the community.

2. Innovation and Progress: Entrepreneurs often identify unmet needs and create innovative solutions.
This leads to the development of new products, services, and technologies that benefit society and
drive economic progress.

3. Economic Growth: Entrepreneurship stimulates economic growth by increasing productivity and

fostering competition. It encourages efficient resource allocation and contributes to the GDP of a
country.

4. Wealth Creation: Successful entrepreneurs have the potential to accumulate substantial wealth. This
not only benefits them personally but can also lead to philanthropic activities that support social causes.

5. Market Diversity: Entrepreneurship introduces diversity into the market, offering consumers a wider
range of choices. This can lead to increased competition, improved quality, and more affordable
products and services.

6. Local and Global Impact: Entrepreneurship can address local and global challenges. Social
entrepreneurs, in particular, focus on creating ventures that aim to solve societal issues, such as poverty,
healthcare, and environmental sustainability.

7. Community Development: Entrepreneurial activities can revitalize communities by attracting

investment, improving infrastructure, and fostering a spirit of innovation and progress.

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8. Rural Development: In rural areas, entrepreneurship can help diversify income sources, reduce
urban migration, and boost local economies.

9. Skills and Education: Entrepreneurship encourages the development of critical skills like problem-
solving, decision-making, and risk management. It often leads to increased investment in education
and training.

10. Resilience and Adaptability: Entrepreneurs are often adaptable and resilient in the face of
challenges. This mindset can benefit both businesses and communities in times of economic
uncertainty or crisis.

11. Global Trade: Entrepreneurial ventures often engage in international trade, promoting global
economic integration and cooperatio

Franchise
A franchise is a business arrangement in which an established and successful company (the franchisor)
grants the rights to individuals or entities (the franchisees) to operate their own businesses using the
franchisor's brand name, business model, products, services, and support. In exchange for these rights,
franchisees typically pay fees, including an initial franchise fee and ongoing royalties, and agree to
follow the franchisor's established operational guidelines and standards. This business model allows
franchisees to leverage the brand recognition, marketing, and support of the franchisor while
maintaining a degree of independence as business owners. Franchises exist in various industries,
including fast food, retail, hospitality, and service-based businesses, offering entrepreneurs a proven
and structured path to business ownership.

Franchising
Franchising is a business arrangement where one party, known as the franchisor, grants another party,
the franchisee, the right to use its trademark or trade name, as well as certain business systems and
processes. In return, the franchisee typically pays fees and royalties to the franchisor. This model allows
for the expansion of a business with lower risk for the franchisor and provides the franchisee with a
proven business concept and support.

Features of Franchising

1. Business Model: In a franchise system, the franchisor licenses its proven business model to
franchisees. This model includes the use of the franchisor's brand, trademarks, products or services,
operational procedures, and marketing strategies.

2. Branding and Recognition: Franchisees benefit from the established brand recognition and
reputation of the franchisor. This often leads to easier customer acquisition and a competitive edge in
the market.

3. Support and Training: Franchisors provide comprehensive training and ongoing support to
franchisees, covering areas like business operations, marketing, and management. This support is
crucial for maintaining consistent quality and standards across all franchise locations.

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4. Fees and Royalties: Franchisees typically pay various fees to the franchisor, including an initial
franchise fee, ongoing royalty fees (a percentage of sales), and, in some cases, marketing or advertising
fees.

5. Territorial Rights: Franchise agreements may grant franchisees exclusive territorial rights, ensuring
that they have a defined area in which to operate without direct competition from other franchisees of
the same brand.

6. Uniformity and Standards: Franchisors maintain strict standards and guidelines to ensure
uniformity in the customer experience, no matter which franchise location a customer visits.

7. Legal Agreements: The relationship between the franchisor and franchisee is governed by legally
binding agreements, including a Franchise Disclosure Document (FDD) that provides information
about the business, the terms of the franchise, and other relevant details.

8. Exit Strategy: Franchise agreements often outline provisions for selling or transferring the franchise,
offering franchisees the potential to exit the business and potentially benefit from the resale value.

Franchising can be an attractive option for entrepreneurs who want to start a business with the support
of an established brand and a proven business model. It provides a balance between business ownership
and reduced risk, but it also comes with obligations and financial commitments.

Franchising benefits side

1. Proven Business Model: Franchisees benefit from a well-established and proven business model,
reducing the risk associated with starting a new business from scratch.

2. Brand Recognition: Franchisees leverage the brand recognition and reputation of the franchisor,
making it easier to attract customers.

3. Training and Support: Franchisors provide training and ongoing support, helping franchisees
operate their businesses effectively.

4. Marketing Assistance: Franchisees often receive marketing and advertising support from the
franchisor.

5. Territorial Rights: Many franchise agreements grant exclusive territorial rights, reducing direct
competition from other franchisees of the same brand.

6. Uniformity: Franchisors maintain consistent quality and operational standards across all franchise
locations.

7. Economies of Scale: Franchises benefit from the purchasing power of the larger franchise network,
leading to potential cost savings.

8. Business Guidance: Franchisees have access to the expertise and guidance of the franchisor and the
broader franchise community.

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9. Exit Strategy: Franchise agreements often provide options for selling or transferring the franchise.

10. Reduced Risk: While entrepreneurship involves risk, franchising can reduce some of the
uncertainties associated with starting an independent business.

Small business
A small business typically refers to a privately-owned enterprise with a relatively low number of
employees and revenue compared to larger corporations. The specific criteria defining "small" can
vary by industry and region. Small businesses can span various sectors, from retail and services to
technology and manufacturing. Small businesses play a crucial role in local economies, fostering
innovation and creating job opportunities. Often characterized by their agility and close-knit
environments, these enterprises contribute to community development and provide personalized
products or services. Despite facing challenges, such as limited resources and competition, many small
businesses thrive through creativity, adaptability, and a strong connection with their customer base.

Charateristics of small business :

Small business have the following characteristics

1. Independent ownership : Small business are often independently owned and operated by one
or a few individuals or families.
2. Limited scale: They are characterized by a relatively small scale of operations, including a
smaller number of employees and a more localized or niche market .
3. Limited Resources: Small businesses typically have limited financial and human resources
compared to larger enterprises.
4. Flexibility: Small businesses can adapt quickly to changing market conditions and customer
needs due to their smaller size .
5. Personalized service: They often provide more personalized customer service and are
closely connected to their customer.
6. Local Focus: Many small businesses serve a local or regional market, and their success can
be tied to the health of the local economy.
7. Entrepreneurial spirit : Small business owners are often entrepreneurs who take risks and
directly involved in the day – to- day.
8. Potential Growth : While they start small some small businesses have the potential to grow
and expand overtime.

Small business administration

The Small Business Administration (SBA) serves as a cornerstone for small enterprises. The Small
Business Administration (SBA) was established on July 30, 1953, as an independent agency of the
U.S. government. Its creation was authorized by the Small Business Act, which aimed to promote and
strengthen small businesses in the country. Established to bolster entrepreneurship, it provides

16
essential support through various avenues. The SBA offers financial assistance, including loans and
grants, facilitating business development. Additionally, it delivers counseling, training, and resources
to empower small business owners. The agency's role extends to helping navigate government
contracts, opening avenues for expansion. By fostering growth, innovation, and job creation, the SBA
significantly contributes to the vibrancy and resilience of the small business sector, playing a crucial
part in the economic fabric of the nation.

❖ Advantage of small businesses administration:

1. Access to funding : The small businesses administration loans and grants to small
businesses which can be crucial for startups or businesses in need of capital.
2. Resources and Guidance: Small businesses offers a wealth of resources, including
business counseling and educational programs to help entrepreneurs succeed.
3. Government contracts : Small businesses administration helps small businesses secure
government contracts opening up significant revenue opportunities.
4. Disaster Assistance: Small businesses administration offers disaster recovery assistance,
aiding businesses in times of crisis.
5. Advocacy: The small businesses advocates for small businesses in government policy and
regelation.

❖ Disadvantages of small business administration:

1. Strict Eligibility Requirements : Small businesses loans often have strict eligibility
criteria ,and not all businesses qualify.
2. Bureaucracy: The application process for small businesses administration loans can be
complex and time consuming.
3. Limited loans accounts : Small businesses administration loans may not cover all
financial needs for some businesses.
4. Competition: The small business assistance programs can lead to increased competition
for resources and contracts.
5. Risk of default : If a business fails to repay an small business administration loan,it can
have serious consequences, including collateral seizure.

Small Business Large Impact:

Small businesses have a significant impact on the economy and society. They are responsible for
creating three-fifths of net new jobs in the US, driving a big share of employment growth. Small
businesses also generate 44% of US economic activity. They are considered to be more flexible and

17
innovative than larger corporations, allowing them to react more quickly to changing market forces
and develop innovative product ideas more quickly. Small businesses also provide greater
advancement opportunities for women and minorities. Small businesses are also viewd positively by
the public. According to the National Federation of Independent Businesses, 85% of Americans view
small businesses as a positive influence on American life. They are regarded as resilient and able to
respond fairly quickly to changing economic conditions by refocusing their operations.
In summary, small businesses play a vital role in the economy and society. They create jobs, build
wealth, help close racial and gender wealth gaps, and provide greater advancement opportunities for
women and minorities.
The big impact of small businesses:
✓ Contribution to Employment the small business sector makes a significant contribution to
employment.
✓ Capacity to Innovate when it comes to innovation, small businesses lead the way because
innovation is essential to maintaining a competitive edge.
✓ Community Impact behind each small business statistic, there are hardworking individuals
contributing to their community.

The Trends in Entrepreneurship and small Business Ownership:

Entrepreneurship and small business ownership have been on the rise in recent years. According to a
report by OpenStax entrepreneurship has changed since the late 1990s, when starting a dot.com while
still in college seemed like a quick route to riches and stock options. Today, much entrepreneurial
opportunity comes from major changes in demographics, society, and technology, and at present there
is a confluence of all three. The report also highlights that small businesses are the backbone of many
countries economies and are responsible for nearly 70% of both jobs and gross domestic product (GDP)
worldwide. Catering to the needs of an older population and a surge in web-based companies fuel
continues technology growth.
A report by Finance Online predicts that new technologies, evolving customer demands, societal shifts,
and the COVID-19 pandemic are rapidly changing the business landscape. These factors paved the
way for location independent companies, as well as closely-knit communities of entrepreneurs. Trends
in Entrepreneurship and Small Business Ownership include:
❖ Working from home and hybrid work.
❖ Mobile optimization.
❖ Increased diversity in the workforce.
❖ Niche market service.
❖ The rise of the gig economy.
❖ Long-term cash planning.
❖ Subscription-based businesses.
❖ Eco-friendly business practices and products.
❖ Business from home.
❖ Globalized business powered by remote work.
❖ Mobile commerce.
❖ Social commerce.
❖ Increasingly niche markets.
❖ Evolving social and demographic trends.
❖ Operating in a fast-paced technology dominated business climate

18
Small business large impact on earning foreign currency:
Small business can have a significant impact on earning foreign currency. They can help to increase
the export of goods and services, which in turn can lead to an increase in foreign currency earnings.
However, small businesses can also be negatively impacted by fluctuations in foreign currency
exchange rates. For example, if a small business is importing goods from another country and the value
of the domestic currency increases relative to the foreign currency, the cost of importing those goods
will increase. Similarly, if a small business is exporting goods to another country and the value of the
domestic currency increases relative to the foreign currency, the price of those goods will increase for
foreign buyers, which could lead to a decrease in demand. Therefore, small businesses need to be aware
of the potential risks associated with foreign currency exchange rates and take steps to mitigate these
risks. This could be include using derivatives or forex markets to hedge their currency risk.
Challenges faced by small businesses:
Small businesses face a variety of challenges that can make it difficult to succeed. Here are some of
the most common challenges faced by small businesses:
1. Limited cash flow: Small businesses often struggle with cash flow, which can make it difficult to
pay bills, invest in new equipment, or hire new employees.
2. Client dependence: If a small business relies too heavily on one client, it can be vulnerable if
that client decides to take their business elsewhere.
3. Founder dependence: Small businesses often rely heavily on their founders, which can make it
difficult to scale the business or take time off.
4. Hiring and retaining employees: Small businesses may struggle to attract and retain top talent
due to limited resources and competition from larger companies.
5. Marketing and branding: Small businesses may struggle to build brand awarenesses and attract
new customers due to limited marketing budgets.
6. Competition: Small businesses may face intense competition from larger companies with more
resources.
7. Regulatory Compliance: Small businesses must comply with a variety of regulations, which can
be time consuming and expensive.

These challenges can be daunting, but there are many resources available to help small businesses
overcome them. For example, small business owners can seek out mentorship, attend networking
event, or work with consultants to develop strategies for growth and success.

Small businesses large impact on developing our country:

Small businesses can have a significant impact on developing countries economy. They are the
backbone of many countries economies and are responsible for nearly 70% of both jobs and gross
domestic product ( GDP) worldwide. Small businesses represent countless hours of hard work,
commitment, resilience, and thousands of jobs. When people support small businesses, they make a
big impact. Small businesses play a significant role in the economic development of a country.
They have the potential to
❖ Generate employment.
❖ Utilize latent resources.

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 ❖ promote equality in income distribution.
❖ Contribute to balanced regional development.
❖ Provide flexibility of operation Create limited demand and others. Small businesses are also
important for economic diversification, innovation, poverty reduction, wealth creation, and
income redistribution. In the US, small businesses generated 44% Of all economic activity and
created two-thirds of all jobs in 2019.

Previous year questions:

Question-1
Session 2017-2018
a. What is Entrepreneurship?

b. What are the problems of developing entrepreneurship in Bangladesh?

c. Is manager known as entrepreneur? What do you think? Explain.

Answer
A
Entrepreneurship is the process of creating, developing, and managing a business or startup, typically
with the goal of bringing innovative products or services to the market. Entrepreneurs are individuals who
take calculated risks, invest their time and resources, and often identify opportunities to solve problems or
meet unmet needs in the market. They play a crucial role in driving economic growth and innovation by
creating new businesses and driving change in various industries. Entrepreneurship involves activities
such as idea generation, business planning, securing funding, marketing, and managing the day-to-day
operations of a business.

Developing entrepreneurship in Bangladesh faces several challenges:

1. Access to Capital: Limited access to financing options and credit for startups and small
businesses is a significant hurdle.
2. Regulatory Hurdles: Complex and bureaucratic regulations can make it difficult for
entrepreneurs to start and operate businesses.
3. Infrastructure: Inadequate infrastructure, such as reliable power supply and transportation, can
hinder business operations.
4. Skills and Education: Limited access to quality education and vocational training can lead to a
lack of skilled workers.
5. Access to Markets: Expanding to international markets is challenging due to trade barriers and
lack of market information.
6. Political Instability: Political instability can affect business confidence and long-term planning.
7. Corruption: Widespread corruption can hinder entrepreneurship by increasing the cost of doing
business.

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 8. Cultural Barriers: Societal norms and cultural factors may discourage risk-taking and
entrepreneurship, especially among women.
9. Limited Research and Development: Insufficient investment in research and development can
hinder innovation.
10. Environmental Challenges: Issues like natural disasters and climate change can disrupt
businesses, especially in agriculture.
11. Access to Technology: Limited access to technology and digital infrastructure can hinder the
growth of tech startups.
Addressing these challenges requires a multi-faceted approach involving government policies, private
sector initiatives, and international support to promote entrepreneurship and economic growth in
Bangladesh.

While the roles of a manager and an entrepreneur share certain similarities, they are fundamentally
distinct in their objectives, responsibilities, and approaches. To elucidate this, let's explore the key
differences between these two roles and how they contribute to the success of an organization.
Entrepreneurship:
Entrepreneurship is the process of identifying, creating, and growing a new business venture.
Entrepreneurs are individuals who have a vision for a new product, service, or business model and take
the initiative to turn that vision into a reality. They are risk-takers who often invest their own resources,
time, and energy into a new venture, with the hope of achieving substantial financial and personal
rewards.
Entrepreneurs typically exhibit several distinctive characteristics, including a strong sense of innovation, a
willingness to take risks, and the ability to think creatively. They are responsible for conceiving the
business idea, securing funding, building a team, and navigating the challenges of the early stages of a
startup. Entrepreneurs are driven by the pursuit of opportunity and the desire to disrupt existing markets
or create entirely new ones.
Management:
Management, on the other hand, involves overseeing and directing the operations of an existing
organization to achieve its predetermined goals and objectives. Managers are responsible for planning,
organizing, staffing, leading, and controlling various aspects of a business to ensure its smooth
functioning and sustained growth. They work within established structures and systems to ensure that
resources are utilized efficiently and that the organization's day-to-day activities run smoothly.
Managers are typically more focused on maintaining stability and optimizing current processes, rather
than seeking radical change or innovation. They ensure that the organization's employees are productive,
resources are allocated effectively, and the organization remains in compliance with relevant regulations.
The role of a manager often requires strong communication, decision-making, and problem-solving skills.
Key Differences:
❖ Objective: Entrepreneurs are driven by the pursuit of new opportunities and the desire to create
something new, while managers are focused on optimizing existing processes and maintaining
stability.
❖ Risk: Entrepreneurs embrace a higher degree of risk, as they often invest their own capital and
resources in unproven ventures, whereas managers typically work within established systems and
processes, minimizing risk.
❖ Innovation: Entrepreneurs are innovative thinkers who disrupt markets, whereas managers are
more concerned with improving current processes and ensuring the efficient operation of an
organization.

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 ❖ Ownership: Entrepreneurs often have a significant ownership stake in their ventures, while
managers work for an organization and do not typically have the same level of ownership.
❖ Timeframe: Entrepreneurs may initially focus on short-term survival and long-term growth,
while managers often have a more stable and long-term perspective.
In conclusion, while both entrepreneurs and managers play vital roles in the business world, they are not
synonymous. Entrepreneurs are the visionaries and risk-takers who create new business opportunities,
while managers are the stewards who oversee and optimize the operations of existing organizations. Each
role requires a unique skill set and mindset, and their contributions are essential for the success and
growth of businesses and the economy as a whole.

Question-2
Session 2019-2020
a. Define Franchising Business with example. Discuss the merits and demerits of franchising
business in perspectives franchisors and franchisees.
b. What is the difference between licensing and Franchising?

c. Explain the term Entrepreneurship and Entrepreneur. Critically explain the conceptual model
of entrepreneurship.

Answer
A
Franchising Business:

Franchising is a business model where one party, the franchisor, grants the rights and licenses to another
party, the franchisee, to operate a business under the franchisor's established brand, systems, and support.
The franchisee pays fees or royalties to the franchisor in exchange for these rights and support.
Example:
An example of a franchising business is McDonald's. McDonald's Corporation (franchisor) grants
individuals or companies (franchisees) the right to operate McDonald's restaurants using the brand, menu,
and systems. In return, franchisees pay fees, such as an initial franchise fee and ongoing royalties, and
follow McDonald's operational standards.

Merits for Franchisors

❖ Rapid Expansion: Franchising allows rapid growth and market penetration as franchisees invest
capital and effort in opening new outlets.
❖ Brand Extension: Expanding through franchisees helps build the brand's presence in various
locations, increasing brand recognition.
❖ Lower Financial Risk: Franchisees bear the cost of setting up and operating their units, reducing
the financial burden on the franchisor.
❖ Diverse Skill Sets: Franchisees bring local knowledge and expertise, enhancing the business's
adaptation to local markets.

Demerits for Franchisors:

❖ Loss of Control: Franchisors must relinquish some control over individual franchisee operations,
which can lead to inconsistencies.

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 ❖ Franchisee Issues: If franchisees fail or mismanage their units, it can negatively impact the
brand's reputation.
❖ Initial Investment: Establishing a franchise system requires significant time and resources to
develop training, support, and legal documentation.
❖ Royalty Dependence: Franchisors rely on royalty fees, which may fluctuate based on franchisee
performance.

Merits for Franchisees:

❖ Established Brand: Franchisees benefit from operating under a recognized and trusted brand,
reducing the need for extensive marketing efforts.
❖ Proven Systems: Franchisees receive training and access to established operational systems,
reducing the learning curve.
❖ Ongoing Support: Franchisors provide support, marketing, and often collective buying power,
helping franchisees succeed.
❖ Risk Mitigation: Franchisees have a higher chance of success compared to starting an
independent business due to the proven business model.

Demerits for Franchisees:

❖ Costs: Franchisees must pay initial franchise fees, ongoing royalties, and adhere to pricing and
procurement requirements, which can be costly.
❖ Limited Autonomy: Franchisees must follow franchisor rules and standards, limiting their ability
to make independent business decisions.
❖ Market Competition: In some cases, franchisees may face competition from other franchisees of
the same brand in close proximity.
❖ Contractual Obligations: Franchise agreements are legally binding, and breaking them can lead
to financial penalties or loss of the business.

Franchising offers both advantages and challenges for both franchisors and franchisees, and the success of
a franchise system often depends on effective communication, support, and adherence to the terms of the
franchise agreement.

B
Licensing and franchising are both business arrangements that allow one party to use another party's
intellectual property, products, or business model, but they differ in several key ways:
❖ Ownership and Control:
o Licensing: In a licensing agreement, the licensor retains ownership of their intellectual
property or product and grants the licensee the right to use it under certain terms. The
licensor typically has less control over how the licensee operates their business.
o Franchising: Franchising involves a more extensive relationship where the franchisor
not only licenses their brand and business model but also exerts greater control over how
the franchisee operates, including store layout, processes, and quality standards.
❖ Business Model:
o Licensing: Licensing is often used for specific products, technology, or intellectual
property, such as patents, trademarks, or copyrighted content.

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 o Franchising: Franchising is commonly used in the context of retail businesses,
restaurants, and service-based operations. It involves replicating an entire business
model.
❖ Fees and Royalties:
o Licensing: Licensees usually pay licensing fees or royalties based on the usage of the
licensed property.
o Franchising: Franchisees often pay both an initial franchise fee and ongoing royalties to
the franchisor, typically based on a percentage of sales.
❖ Support and Training:
o Licensing: While some support may be provided, licensors generally offer less
comprehensive training and ongoing assistance to licensees.
o Franchising: Franchisors typically offer extensive training, ongoing support, and access
to a network of other franchisees.
❖ Brand and Image:
o Licensing: Licensees have more freedom to adapt the licensed property to their specific
needs and branding.
o Franchising: Franchisees are expected to adhere closely to the franchisor's established
brand and image standards.
❖ Termination and Renewal:
o Licensing: License agreements are often shorter-term and can be easier to terminate or
not renewed.
o Franchising: Franchise agreements tend to be longer-term contracts with specific
renewal terms and conditions.
In summary, licensing is generally a simpler and less involved arrangement for the use of intellectual
property, while franchising involves a more comprehensive partnership, often with greater control and
support from the franchisor. The choice between licensing and franchising depends on the specific
business needs and goals of both parties involved.

C
Entrepreneurship is a dynamic and multifaceted concept that involves the process of creating, developing,
and managing a business or venture with the aim of achieving financial profit and fulfilling a need in the
market. It encompasses the willingness and ability to take risks, identify opportunities, allocate resources
effectively, and innovate to bring new products, services, or business models to the market.
An entrepreneur is an individual who embodies the spirit of entrepreneurship. Entrepreneurs are
innovative, risk-takers, and visionaries who recognize opportunities, organize resources, and take
calculated risks to start and operate a business. They play a crucial role in economic growth and
development by introducing new ideas and solutions, creating jobs, and driving technological and societal
progress.
The conceptual model of entrepreneurship can be examined through various theoretical frameworks,
but I'll provide a simplified overview:

1. Opportunity Identification: The process begins with recognizing a market gap or an unmet need
that presents a business opportunity. Entrepreneurs scan their environment, gather information,
and assess trends to identify these opportunities.
2. Resource Acquisition: After identifying an opportunity, entrepreneurs need to secure the
necessary resources, including financial capital, human capital, and technology, to turn their idea
into a viable business plan.

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3. Innovation and Creativity: Entrepreneurship often involves creative problem-solving and
innovation. Entrepreneurs develop unique products, services, or business models to address the
identified opportunity.
4. Risk Assessment and Management: Entrepreneurs must assess and manage risks associated with
their venture. They make calculated decisions about how much risk to undertake, balancing the
potential rewards with potential losses.
5. Business Planning: Entrepreneurs create a comprehensive business plan that outlines their
strategy, marketing approach, financial projections, and operational details.
6. Implementation: This stage involves executing the business plan and bringing the venture to life.
Entrepreneurs oversee the daily operations, hire and manage employees, and adapt to changing
circumstances.
7. Growth and Adaptation: Successful entrepreneurs aim for growth and expansion. They may seek
additional funding, scale their operations, and adapt to market changes to remain competitive.
8. Exit Strategy: Entrepreneurs may eventually exit their venture by selling the business, going
public, or passing it on to others. This stage is crucial for realizing the financial rewards of
entrepreneurship.
In summary, entrepreneurship is a multifaceted concept involving recognizing opportunities, resource
allocation, innovation, risk management, and the creation and management of businesses. The
conceptual model of entrepreneurship encompasses these stages and represents the journey that
entrepreneurs undertake to bring their ideas to fruition and contribute to economic development.

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