1st Assignment of Enterpreneurship

MuhammadDanish| www.knowledgedep.blogspot.com
Directorate of Distance Learning
Education
G.C University Faisalabad
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Q1: CharacteristicsorFeatures or importance of successful Entrepreneurs
or explain the personalFeatures ofEntrepreneurial Leadership.
Answer:
Entrepreneur:
An Entrepreneur is an individual who undertakes the risk associated with creating,
organizing, and awning a business.
Entrepreneurship:
It is the process of starting a business, a startup company or other organization.
CharacteristicsorFeatures:
There are ten features or characteristics of Entrepreneurship.
1) Risk Taking:
Entrepreneurs are risk takers ready to drive deep into a future of uncertainty. But
not all risk takers are successful entrepreneurs. Successful entrepreneurs are will to risk
time and money on knowns, but they also keep resources plans, and bandwidth for
dealing with “unknown unknowns” in reserve. When evaluating risk, a successful
entrepreneur with ask herself, is this risk worth the cost of My career, time and money?
And. What will do if this venture doesn’t pay off?
2) Self – belief, hard work & Disciplined Dedication.
Entrepreneurs enjoy what they do. They believe in themselves and are confident
and dedicated to their project. Occasionally, they may show stubbornness in their intense
focus on and faith in their idea. But the flip side is their demonstrated discipline and
dedications.
3) Adaptability & flexibility.
It is good to be passionate or even stubborn about what you do. But being
inflexible about client or market need will lead to failure. Remember, an entrepreneurial
venture is not simply about doing what you believe is good, but also making successful
business out of it.
4) Understand your offering and its market.

Entrepreneurs know their product offering inside and out. They also know the
marketplace and its dynamics inside & out. Remaining unaware of changing market
needs, competitor moves and other internal factors can bring even great products to
failure (for example, Blockbuster)
5) Money Management.
It takes times to get to profitability for any entrepreneurial venture till then,
capital is limited and needs to be utilized wisely. Successful entrepreneurs realize this
mandatory money management requirements and plan for present and future financial
obligations. Even after securing funding or going fully operational, a successful business
man keeps a complete handle on cash flows, as it is the most important aspect of any
business.
6) Planning (But not over planning)
Entrepreneurship is about building a business from scratch while managing
limited resources (including time, money and personal relationships). It is long term
commitment, and attempting to plan as much as possible at the beginning is a noble
impulse. In reality, however, planning for every thing and having a ready solution for all
possible risks many prevent you from even taking the first step. Successful entrepreneurs
do keep some dry powder in reserve, but more importantly they maintain a mindset and
temperament to capable of dealing with unforeseen possibilities.
7) Networking Abilities.
How do you tap your Network for solutions, may people seek comfort in
commiseration: friends colleagues and neighbors are happy to complain with your about
“the global slowdown” poor demand, or unfair competition; but that won’t improve the
bottom line. They reach out to mentors with more experience and intensive networks to
seek valuable advice.
8) Being prepared to take the Exit
Not every attempt will result in success. The failure of entrepreneurial ventures is
very high. At times, it is absolutely fine to take the “practical” exit route and try
something new, instead of continuing to make sunk cost investments in the some venture.
Many famous entrepreneurs weren’t successful the first time around. But they had the
serenity and foresight to know when to cut their losses.
9) Entrepreneurs Doubt themselves but not too much.
You may ask yourself, am 1 an entrepreneur? And the very question may put you
in doubt about the answer. Even if you don’t have the flair of Steve jobs or the hair of

Elon musk, if you have the courage to ask yourself intimidating questions. Can I do this?
Do I want to do this? You have the stuff to be an entrepreneur.
Instead of worrying about fitting the image of the perfect entrepreneur, check in with
your gut
10) Passion & Motivation.
The one word that describes the basic requirement for and entrepreneurship
venture is “passion”
 Is there something that you can work on over and over again, with out
getting bored?
 Is there something that keeps you awake?
 Is there something that you have built and want to continue to improve
upon?
 Is there something that you enjoy the most and want to continue doing for
the rest of your life?
Your demonstration of passion and motivation will determine your success in any
entrepreneurial venture. From building and implementing a prototype, to parching you idea
to venture capitalists, success is a function of passion and determination.
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Q2: What is entrepreneurial decisionprocess?
Answer:
Entrepreneur:
An individual who gather resources to create an economic activity while bearing different
types of social and economic risks.
Entrepreneurship:
It is the process of creating something new;
1) With the value of devoting the necessary time & effort
2) Assuming the accompanying financial and social risks.
3) And receiving the resulting rewards of monetary and personal satisfaction and
independence.
The Entrepreneurial DecisionProcess.
Some ventures result from specific circumstances many entrepreneurs follow the
entrepreneurial process, which entails a movement form something to something a movement
from a present lifestyle to forming a new enterprise, as indicated in Table .
Decision for a potential Entrepreneur
Form New Enterprise
Desirable
1. Cultural
2. Sub cultural
3. Family
4. Teachers
5. Peers
Possible
1. Govt
2. Background
3. Marketing g
4. Financing
5. Role Models
Change from present
lifestyle
Work environment
disruption

 Changefrom present lifestyle:
The decision to leave a career or lifestyle is not an easy one. It takes a great deal of
energy and courage to change and do something new and different.
1) Work environment (R&C and Marketing)
While working in technology (research & Development) individuals
develop new product ideas or processes and often leave to from their own
companies when these new ideas are not accepted by their employers (R&D)
2) Disruption (A negative force)
A significant number of companies are formed by individuals who
have retired, who are relocated due to a move by the other members in a dual
career family, or who have been fired.
There is possibly no greater force then personal dislocation to
galvanize (snock into taking action) a person’s will to act.
 Form New Enterprise
The decision to start a new company accurse when an individual perceives that
forming a new enterprise is both desirable & possible
a) Desirability of new venture formation
Aspects of a once situation that make desirable to start a new enterprise are
culture, subculture, family, teacher and peers.
1) Culture:
A culture that values an individual who successfully creates a new
business will spawn more venture formation that one that does not. The
American culture places a high value on being a success and making
money all aspects of entrepreneurship.
2) Sub – Culture:
Many subcultures that shape entrepreneurial value systems operate
within a culture framework.
3) Family:

High percentage of the founders of companies had fathers &
mothers who valued Independent. The Independence achieve by the
companies owners, professionals.
4) Teachers
Encouragement to form a company is further stimulated by
teachers who can significantly influence individual to regard
entrepreneurship as desirable
5) Peers:
Finally, peers are very important in the decision to form a company
an idea with a pool and a meeting place where entrepreneurs can discuss
ideas, problems, and solution spawns more new companies.
b) Possibility of new venture formation.
Factors making possible to create a new venture are government,
background marketing, role models, financing.
1) Govt.
The Govt contributes by providing the infrastructure to help &
support a new venture.
2) Background:
Formal education and previous business experience give the skills
needed to form and manage a new enterprise.
3) Marketing.
There must also be a level of marketing know how to put together
the best total package of product, price, distribution and promotion
needed.
4) Role Models:
To see someone else succeed makes it easies to picture your self-
engaged in a similar activity.
5) Financing:
Most of the start up money for any new company comes from
personal savings, credit, friends, family and relatives; there is often need
for addition seed capital.

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Q3: Entrepreneurship and the entrepreneurial process, explain.
Answer:
Entrepreneurship:
It is the process of creating something new with value by devoting the necessary time &
effort, assuming accompanying financial, psychic, and social risks and receiving the resulting
rewards of monetary and personal satisfaction & Independence.
Entrepreneurial process:
Steps in the Entrepreneurial process;
1) Discovery;
The stage in which the entrepreneur generates ideas, recognizal opportunities, and
studies the market.
 Consider your Hobbies & skills
 Consider consumer needs & wants
 Conduct surveys & questionnaires
 Study demographics
 Systematic search for new product ideas from internal and enternal
sources
o Internal ides sources:
Include employees, top management engineers, manufacturing
staff, and sales people.
o External idea sources
Customers, competitors, distributors, and suppliers and other ideas.
2) Concept development:
A detailed proposal describing the business idea that there, when & how to start
and run the business.
 Choose the business location
 Will a patent or trademark be required.
3) Resourcing.

The stage in which the entrepreneur identifies and acquires the financial, human,
and capital resources needed for the venture startup. For example money or capital labour
and technology.
Startup resources.
 Identify potential investors
 Apply for loan grand
 Hires employees
4) Actualization.
The stage in which the entrepreneur operates the business and utilizes resources to
achieve its goals & objectives
 Grand opening
 Day to day operations.
 Use modem technology
 Marketing the product
 Improve the product
 Develop the business
5) Harvesting
The stage in which the entrepreneur decides on ventures future growth,
development, or demise.
 What is your 5 year or 10 year plan?
 Consider adding location or providing different products services
 Will you go public
We can easily understand the entrepreneurial process with following graph.
Entrepreneurial
Process
Discovery
Developing
a Business
Plan
Resourcing
Managing
Company
Harvesting

Q4: Explain break even analysis & its calculator
Answer:
Break-evenpoint:
The point at which total of fired & variable costs of a business become equal to its total
revenue is known as break-even point.
Revenues = variable cost
At this point a business neither earns any profit nor suffers any loss it also known as, no
profit, no loss, or zero profit point.
Calculation of break even point is important for every business because it tells business
owners & managers how much sale are needed to cover all fixed as well as variable expenses of
the business or the sale volume after which the business will start generating profit. The
computation of sales volume required to break even is known as break-even analysis.
 When there is profit.
 Revenue > variable cost + fixed cost
 At break point
 Revenue = variable cost + fixed cost
 When there is a loss.
 Revenue < variable cost + fixed cost
Calculationof break-evenpoint
1) Use of equation method:
The application of equation method facilitates the computation of break even
point both in units and in dollars.
Q = variable expenses + fixed expenses
Sales price per unit
Q = Number (quantity) of units to be manufactured & sold during the period
Suppose;
The annual fixed expenses to run the business are $ 15,000 and variable expenses
are $ 7.50 per unit sale price of your product is $ 15 per unit. The number of units to be
sold to break even can be easily calculated using equation method.

Q = variable expenses + fixed expenses
Sales price per unit
Q = Q7.5 + 15000
15
15Q = 7.5Q + 15000
15Q – 7.5 Q = 15000
7.5 Q = 15000
Q= 15000 / 7.5
Q= 2000 units
The break-even point in unit is 2000 units and break even point in dollars are;
=2000 units x $15
= 30,000
2) Use of contribution margin method;
The method describe above is equation method. Some people use another method
called contribution margin method under this method; the total fixed expenses are divided
by contribution margin per unit.
Consider the following computations.
= Total fixed exp / Contribution margin per unit
If total fixed exp are 15000 and margin ration is 0.5 then.
= $ 15000
0.5
= 30,000
Note: 0.5 = (15-7.5)
15
Graphical presentation

The graphical presentation of dollar and unit sales needed to break even is
known as break even chart or cup graph;
Number of units
Explanation:
With the help of above graph, we can easily judge the break – even point and can estimate the
revenue and variable & fixed expenses. On the above diagram, the “E” shows the break-even
point, show the 1800 units at 11000 dollars.
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0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
500 1000 1500 2000 2500
Break Even Point
Total Cost Revenue
E

Q5: write down the steps in preparing marketing plan
Answer:
Marketing plan
A written statement of marketing objectives, strategies, and activities to be followed in
business plan. It is design to provide answers to three basic question.
 Where we have been?
 Where we want to go?
 How do we get there?
Steps in preparing the marketing plan
There are seven steps involve to prepare the market plan.
1) Defining the business situation.
Situation analysis describes past and present business achievements of new
venture. In case of a new venture, information should related to how and why the product
or service was developed. After a new venture has started up information should be
related to present market condition.
2) Defining the forget market opportunities & threats.
The target market is specific group of potential customers toward which the
venture aims its marketing plan. A market should be divided into definable & measurable
groups for purposes of targeting marketing strategy
The process of segmenting and targeting customers.
 Decide on general market or industry to pursue.
 Decide on general into smaller groups
 Select segment to target.
 Develop a marketing plan integrating product, price, place & promotion.

3) Establishing Goals & objectives.
Theses are statements of level of performance desired by new venture. Realistic
and specific marketing goals and objectives respond to the question where do we want to
go? And limit the number of goals or objectives to between six and eight. Goals should
represent key area to ensure marketing success.
4) Defining marketing strategy and action programs
I. Product service:
Product may consider more then the physical characteristics. It involves
packaging, brand name, price, warranty, image, delivery time, style and even web
site.
II. Pricing:
Price of product based on costs – material cost, labor cost, cost of goods
from supplier, labor & overhead exp, etc. its should be competitive and afordable
and easy to purchase.
III. Distribution
It provides utilities to the customers. It also must be consistent with other
marketing mix variables.
IV. Promotion
Promote to inform potential customers about the product’s availability or
to educate the customer. Print, ratio, television advertising, internet, direct mail or
newspapers are use to promote the product.
5) Marketing strategy:
It involves tow types of market;
I. Consumer market;
It involves selling products to households for personal consumption
II. Business to business market
It involves selling of products or services to another business on large
scale with direct channels of distributions.

6) Budgeting and implementation;
Budgeting costs should be reasonably clear and its assumption, if
necessary, should be clearly stated. It is useful in preparing the financial plan.
The plan is meant to be a commitment by the entrepreneur to a specific strategy.
Entrepreneur should ensure coordination and implementation of the plan.
7) Monitoring the progress of marketing actions;
It involves tracking results of the marketing effort. Entrepreneur should
prepare for contingencies. Minor adjustments in the plan are normal; significant
changes indicate a poorly prepared plan. Weaknesses in market planning may be
due to poor analysis of the market and competitive strategy.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Q6: What is the importance of international entrepreneurship?
Answer:
International entrepreneurship
It is the process fo an entrepreneur conducting business activity across the
national boundaries. It may consist of exporting, licensing, opening, sales office in another
country.
Importance:
It sales of company is declining in domestic market, they can sell products in
international market considering demand of product in other country market customs.
1) Increased sales & profit:
When the entrepreneurs are not able to earn profit or demand for their
product decreases in local market they can sell their products in foray market
where life cycle of product is in favorable condition E.9. Apple, HP, Dell, Sony,
Samsung.
2) Lower manufacturing cost.
If the company manufacturing cost increases by manufacturing product in
home country, than company can opt in the production process in host country, on
the contrary of the company is in no profit or on loss situation that company can
choose in any option. E.G MC Donald’s
3) Advantage of cheap labour:
Quantity & quality of labour is one of the major challenges for every
business, if the labour is cheap in foreign countries that company can out source
required labour if organization is into foreign operations.
4) Utilization of talent & managerial competence:
When business are not able to get required talented work force in country,
they can get the activity outsourced or hire host country employee which has give
birth to concept of expatriation.
5) Growth opportunity:

An entrepreneur whose care business strategy is expansion and
diversification of business, international business is one of the primary platforms
to achieve these objectives.
6) Expansion of domestic market:
International business coursing domestic market to expand beyond
national boundaries. When the domestic market has been fully tapped than
company can go in for expansion of business to market their products in the
international market their products in the international market.
7) Globalization of customers:
It refer to when customers in country prefer purchasing foreign products
then domestic company have to go in for internationalization of business to keep
in pace with competition to attract customers. Tata international begin to operate
in international (begin) market after entry of foreign competitors in induction
market like ford.
8) Globalization of competitors
International business increases the opportunity not only for the survival
and growth but also motivates companies to face competition from global entrant
s in market, which in turn leads to growth of market, pursing global scale
efficiencies act.
9) Pay offs of international business:
International business improve image of the company in domestic market
and attract more customers in domestic markets and attracts to internalization of
business. E.G Ranbaxy.
10) Customer relation management:
Internationalization of business with teaches entrepreneurs how to
cultivate habit of customers relation management. It’s also most helpful in
improving product with the view of customer
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Q7: Entrepreneurial entry into international business.
Answer:
Entrepreneur:
An individual who gather resources to create an economic activity while bear social &
economic risks.
Entrepreneurial entry into international business.
The choice of entry method depends on the goals of the entrepreneur & the company’s
strengths and weakness.
1) Exporting:
As a general rule, an entrepreneur starts doing international business through exporting
a) Indirect exporting:
It involves a foreign purchaser in the local market r using an export
management firm. For certain commodities, foreign buyers seek out sources of
supply. Export management firm, another commercial central
b) Direct exporting:
Thorough independent distributors or through one’s own over seas sales
office in another entry method. An independent foreign distributes directly
contacts foreign customers and takes care of all technicalities. Entrepreneurs who
do not wish to give up control over marketing can open over seas offices and hire
their own sales people
2) Non equity arrangement:
Non-equity arrangement allows the entrepreneur to enter of market without direct
equity investment in the foreign market.
3) Licensing:
It involves a manufacturer giving a foreign manufactures the right to use a paten,
trademark, or technology in return for a royalty. This arrangement is most appropriate
when the entrepreneur has no prospect of entering in market through exporting or direct
investment. The process in usually low risk and an easy way to generate incremental
income.

4) Turn key projects:
Lesser-developed countries are able to obtain manufacturing technology without
surrendering economic control through turn key projects. A foreign entrepreneur build
facility, trains the workers, and trains the management to run the installation. Once the
operations once line. In is turned over to local owners. Initial profits can lead to follow up
sales.
5) Management contracts:
Entrepreneurs can contract their management techniques and skills, after
following a turnkey project; the management contract allows the purchasing country to
gain foreign expertise without turning ownership over to a foreigner
6) Direct foreign investment:
The wholly owned foreign subsidiary has been the preferred mode of ownership
for direct investment. The entrepreneurs are also invest to the foreign companies, whose
interest rate are high and they facilitate the investors.
7) Minority interest:
The minority interest provider the firm with either a sources of raw materials or a
captive market for products. Entrepreneurs have used minority position to gain a foothold
in the market before making a major investment.
8) Joint ventures.
Two firms get together and form a third company in which they share the equity.
Joint venture does not follow the accounting concept going concern the managers of joint
venture are known as con- ventures. It is a temporary business activity.
9) Franchising:
Ranching is the practice of the right to use a firm’s business model and brand for
a prescribed period. The word franchise is of Anglo French derivation from franc
meaning free and is used both as a noun and as a (transitive) verb
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Q8: Features ofjoint venture & franching
Answer:
1) Franching:
Franching is the practice of the right to use a firm’s business model and brand for a
prescribed period.
Features ofFranching:
There are several essential features to look for when evaluating any franchise
business. Here are the top six:
1) Stable industry:
You need to be marketing something that will be profitable no matter the
economy. one example is a disaster restoration franchise in which the franchisee organize
the clean – up process for business when fires or water damage occurs.
2) A necessary, recession – resistant product or service.
Choose something that consumers either don’t have time to do make or despise
doing and, thus would rather pay someone also for. Stay away from fads, as they are
unpredictable and don’t provide longevity.
3) Market potential versus the competition.
It’s wise to choose a franchis that has little or no competition from other similar,
established franchises. You would not locate a quizenos franchise within a block of to
sub ways that have been there for two years and are always crazy busy. Ideally, pick a
franchise where your main competition comes form small mom and pop stores, which
allow you to dominate and thrice
4) The leader in its category.
A major contributor to your potential success a franchises is teaming with a
franchise in which they are the undisputed leader.
5) A dominant brand
Brand recognition is huge
Aamco = transmissions.
Fantastic sams = hair care
This is a major reason to franchise in the first place.

6) Growth opportunities:
Look for a franchise that encourages you to buy a 3 pack or a 5- pack or one that
markets the right to become an area developer or a master franchise. These are strong
indictors that the franchise is thriving and planning to expand and grow the business.
2) Joint venture:
A joint venture is a business arrangement in which two or more parities agree to pool their
resources for accomplishing a specific task other business activity.
Features ofjoint ventures:
1) Joint venture is a special partnership without a firm name.
2) Joint venture does not follow the accounting concept going concern
3) The members of joint venture are known as co- ventures.
4) Joint venture is a temporary business activity
5) In joint venture, profits and loses are shared in agreed proportion. If there is no agreement
regarding the distribution of profit, they will share profit equally.
6) Joint venture is an agreement for polling of capital & business abilities to be employed is
some profitable venture
7) At the end of venture all the assets are liquidated and liabilities are paid off. If necessary
the assets & liabilities could be shared by co – venture.
8) Joint venture always follows cash basis of account.
9) The dispute resolution must be effective easy and cheap to execrate
10) The purpose of joint venture must be clearly defined.
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Q9: Features and types of Synergy in Mergers andAcquisition?
Answer:
Synergy:
Synergy is two or more things working together in order to create something that is
bigger or greater than the sum of their individual efforts.
Example: When an actor and a great director work together to create a movie that is more
amazing than would have happened if each had worked separately.
Features ofsyergy:
1. Companies can spread their commercial interest.
2. Increase profit of each seperate medium
3. Enhances company’s image
4. influince public opinion
5. Can reach shrinking audiences with diverse tastes.
6. Dominant a variety in markets.
7. Sharing skills between two companies and exploiting strengths.
8. Companies can merge with a corporation making a loss in order to reduce their tax
burden.
9. Corporate synergies due to mergers result in larger firm size which is perceived
10. Increase in managerial effectiveness, which is required for the success of a corporation.
Types of Synergy:
There are two types of synergies in mergers and acquisition.
1. Operational Synergies:
Operating synergy is when the value and performance of two firms combined is
greater than the sum of the separate firms apart and, as such, allows the firms to increase
their operating income and achieve higher growth.
Operating synergies can arise from the following:
 Economies of scale;
 Greater pricing power and higher margins resulting from greater market share
and lower competition;
 Combination of different functional strengths such as marketing skills and good
product line; or
 Higher levels of growth from new and expanded markets.

Operating synergies are achieved through horizontal, vertical or conglomerate mergers.
Mergers of firms, which have competencies in different areas such as production,
research and development or marketing and finance, can help achieve operating
efficiencies.
Operating synergy is an important reason why strategic buyers sometimes pay
significant premiums. Mid-market business owners that are approached by strategic
buyers should try to quantify the operating synergies that buyers might be able to realize
post acquisition. This can go a long way to obtaining a premium valuation upon exit.
2. Financial Synergies:
Financial synergy is when the combination of two firms together results in greater
value than if they were to operate separately. Financial synergies are most often evaluated
in the context of mergers and acquisitions. These type of synergies relate to improvement
in the financial metric of a combined business such as revenue, debt capacity, cost of
capital, profitability, etc.
Synergies related to operational metrics are referred to as operating synergies.
Examples of positive financial synergies include:
 Increased revenues through a larger customer base
 Lower costs through streamlined operations
 Talent and technology harmonies
In addition, financial synergies can result in the following benefits post acquisition:
 Increased debt capacity
 Greater cash flows
 Lower Cost of Capital
 Tax Benefits
When evaluating a merger or acquisition, the positive synergies usually produce a
successful result. While financial synergies are often used with a positive connotation,
these synergies can also be negative in some situations. For instance, an acquiring
company may have to incur additional costs in the target company to bolster the
management team or implement systems to meet the standards of the acquirer.
Although financial synergies are usually experienced by strategic buyers, a
financial buyer may be willing to pay a premium for the acquisition of a mid-market
business due to the benefits associated with a more efficient capital structure and lower
cost of financing.

Other synergies:
 Surplus Human Resources: companies with skilled managers and staff can best utilize t
hese resources only if they have problems to solve. The acquisition of inefficient
companies is sometimes the only way of using skilled human resources.
 Surplus cash flow: companies with large amounts of surplus cash may see the
acquisition of other companies as the only possible application for these funds.
 Market power: horizontal mergers may enable the company to seek a degree of monopo
ly power, which could increase its profitability.
 Organic growth: growth using mergers and acquisition is speedier than the organic
growth.
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Q10: What are methods of generating ideas also explain Innovation,
creativity and Entrepreneurship?
Answer:
The following are some of the key methods to help generate end test new ideas:
1. Focus Groups:
These are the groups of individuals providing information in a structural format.
Moderator leads a group of people through an open, in-depth discussion rather than
simply asking questions to solicit participant response. Such groups form comments in
open-end in-depth discussions for a new product area that can result in market success. In
addition to generating new ideas, the focus group is an excellent source for initially
screening ideas and concept.
2. Brainstorming:
It is a group method for obtaining new ideas and solutions. It is based on
the fact that people can be stimulated to greater creativity by meeting with others and
participating in organized group experiences. The characteristics of this method are
keeping criticism away; free wheeling of idea, high quantity of ideas, combinations and
improvements of ideas. Such type of session should be fun with no scope for domination
and inhibition. Brainstorming has a greater probability of success when the effort focuses
on specific product or market area.
3. Problem inventory analysis:
It is a method for obtaining new ideas and solutions by focusing on problems.
This analysis uses individuals in a manner that is analogous to focus groups to generate
new product areas. However, instead of generating new ideas, the consumers are
provided with list of problems and then asked to have discussion over it and it ultimately
results in an entirely new product idea.
Innovation:
The process of translating an idea or invention into a good or service that creates value or
for Innovation involves deliberate application of information, imagination and initiative in
deriving greater or different values from resources, and includes all processes by which new
ideas are generated and converted into useful products, Which customers will pay to be called an
innovation, an idea must be replicable at an economical cost and must satisfy a specific need.
Creativity:
Creativity is the act of turning new and imaginative ideas into reality. Creativity is
characterized by the ability to perceive the world in new ways, to find hidden patterns, to make
connections between seemingly unrelated phenomena, and to generate solutions. Creativity

involves two processes: thinking, then producing. If you have ideas, but don’t act on them, you
are imaginative but not creative.
Entrepreneurship:
The capacity and willingness to develop organize and manage a business venture along
with any of its risks in order to make a profit. The most obvious example of entrepreneurship is
the starting of new businesses.
In economics, entrepreneurship combined with land, labor, natural resources and capital can
produce profit. Entrepreneurial spirit is characterized by innovation and risk-taking, and is an
essential part of a nation's ability to succeed in an ever changing and increasingly competitive
global marketplace.
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1st Assignment of Enterpreneurship

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1st Assignment of Enterpreneurship