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DEFINITION OF BUSINESS
BUSINESS
A Business is a state of being busy as an individual or as an organisation in a profit earning economic activity.
TYPES OF BUSINESS
MANUFACTURING
Manufacturing is a type of business that uses raw material, labour, technology, capital and other resources for the production of new and finished goods.
Example: food, beverages, apparels, furniture, mobile phones, laptops, cosmetics and many more
SERVICE
Service is a type of business that provides services either physically or online, in the form of consulting, accounting, hospitality, education, etc.
Professionals or experts in such areas provide them.
Example: Salon, Bank, Schools, Cricket Coaching Centre
MERCHANDISING
Merchandising is a type of business wherein the finished products are purchased at wholesale price and sold to consumers at retail price.
Example: selling daily grocery items in grocery stores
HYBRID
Hybrid is a mix of two or more different types of businesses.
Example: restaurant business, home deliveries (by online or offline means)
PRODUCT BUSINESS
A business where a seller and buyer exchange an item, which can be seen and touched, is called a product-based business. For example, a Sports shop.
FORMS OF BUSINESS
SOLE PROPRIETERSHIP
A sole proprietorship is a business owned and operated by one individual. The owner has complete control over the business but also assumes all the risks and liabilities.
Example: A local bakery run by a single owner, who makes all the decisions and is responsible for any debts or legal issues.
PARTNERSHIP
Business is legally owned and operated by two or more individuals (partners) for the purpose of earning profits.
CORPORATION
Corporation is a business organisation with a separate legal entity created by individuals or shareholders who come together and pursue a common goal.
Example: Coca Cola, Microsoft, Johnson & Johnson, etc
LIMITED LIABILITY COMPANY (LLC)
Limited Liability Company is most suitable and popular for small or low risk businesses and is a blend of sole proprietorship, partnership and corporation.
Example: SONY, IBM, eBay, etc
STEPS FOR STARTING A BUSINESS
- Plan and finalize a business idea
- Plan and finalize your finances
- Choose your legal business structure
- Finalize the business location
- Build your team
- Target the prospective customers
- Promote the business
- Feedback in the long run
WHO IS AN ENTREPRENEUR?
ENTREPRENEUR
The term entrepreneur is derived from the French verb ‘Entreprendre’ which means to undertake.
“An entrepreneur is a person who invests his time, energy, money to start an enterprise with a new idea.”
Also Read:
• File Management and Organisation of Data
WHAT IS ENTREPRENEURSHIP?
ENTREPRENEURSHIP
The process of developing a business plan, launching and running a business using innovation to meet customer needs and to make a profit is entrepreneurship.
ENTERPRISE
An enterprise is a project or undertaking that is bold and fulfils a need of the society that no one has ever addressed.
Entrepreneur + Entrepreneurship = Enterprise
ELEMENTS OF ENTREPRENEURSHIP
- Innovation
- Organisation
- Risk Bearing
- Perception
CHARACTERSITICS OF AN ENTREPRENEUR
- Risk Taking Capability
- Innovative
- Visionary and Leadership Qualities
- Open-Minded
- Flexible (to circumstances)
- Knows his Product
ROLE OF AN ENTREPRENEUR
- Economic Development (primary role)
- Social Development (service benefit to society, customer)
CORE SKILLS OF A SUCCESSFUL ENTREPRENEUR
- Disciplined, dedicated, hard working
- Highly optimistic, deal with obstacles
- Innovative (to increase market potential of his business, to meet customers need)
- Very calculative (while taking risks)
- Good social skills (to build his network with people)
- Confident, good communication skills
- Maintains good relations (with employees and society)
- Strong leadership qualities
These qualities contribute to the development of Entrepreneurial Skills.
CHALLENGES OF ENTREPRENEURSHIP
- High Risk
- No regular income
- Management Issues
- No fixed hours
REWARDS OF AN ENTREPRENEUR
- Master of his own time
- His own boss
- Makes profit for himself
- Lives his passion
DIFFERENCE BETWEEN BUSINESSMAN & ENTREPRENEUR
BUSINESSMAN & ENTREPRENEUR
| Businessman | Entrepreneur |
| A person who starts a business based on an idea already existing in a society. | A person who starts an enterprise with a new idea |
| Low risk | High risk |
| High competition | Low competition |
| Focus on profits | Focus on customers, employees, profits and society |
Thank you dear readers for reading Entrepreneurial Skills Class 9 CBSE Notes! Hope you must have clearly understood the core concepts and important subheadings of this chapter. You may also watch my YouTube video dedicated to Entrepreneurial Skills Class 9 CBSE Notes, so that you can better understand the concepts in less time! Once again, thanks!