Entrepreneurship second assignment, M.Com, Commerce

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Danish saqi www.facebook.com/mdanishsaqi
Q1:- Explain the procedure of launching new product.
Answer:
New Product Launch:
The success of a new product launch depends largely on the planning and preparation you
invest in the launch of your new product. New product can also be use to Increase/defend
market share by offering more choice or updating older products and improve
relationship with distributors.
Procedure of Launching New Product:
1. Idea Generation:
The development of a product will start with the concept. The rest of the process
will ensure that ideas are tested for their viability so in the beginning all ideas are good
ideas. The ideas can and will come from many different directions. The best place to start is
with a SWOT analysis, which incorporates current market trends.
2. Idea & Product Screening:
After the firm identifies potential products, it must screen them. In product
screening, poor, unsuitable, or otherwise unattractive ideas are weeded out from further
action. Today many companies use a new product-screening checklist for preliminary
evaluation. The checklist is standardized and allows ideas to be compared.
3. Concept Development & Testing:
You have an idea and its passed the screening stage. However, internal opinion is
not the most important. You need to ask some people that matter your customers. Using a
small group of your true customer base those that convert the idea need to be tested to see
their reaction.
4. Business & Financial Analysis:
Once the concept has been tested and finalized business case needs to be put
together to assess whether the new product or service will be profitable or not. This should
include a detailed marketing strategy, highlighting the target market and the marketing mix
that will be used.
5. Product Development:

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If the new idea or product is approved it will be passed to the technical and
marketing development stage. Product development converts a product idea into a physical
form and identified a basic marketing strategy. It involves product construction, packing,
branding, product positioning, and usage testing.
6. Test marketing:
Test marketing is different to concept or consumer testing. Test marketing involves
placing a product for sale in one or more selected areas and observing its actual
performance under the proposed marketing plan.
7. Commercialization:
After testing is completed, the firm is ready to introduce the product to its full target
market. This is commercialization and corresponds to the introductory stage of the product
life cycle. Commercialization involves implementing a total marketing plan and full
production.
8. Launch:
When all the steps or stages are complete and product is finally complete or in
physical exist than the firm ready to launch the new product in the market and other
different areas.

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Q2:- Explain financial planning balance sheet, income
statement and cash flow statement.
Answer:
Balance sheet:
“A statement, which shows the financial position of a business”.
“A statement of the assets, liabilities, and capital of a business or other organization at a
particular point in time, detailing the balance of income and expenditure over the preceding
period”.
Elements of balance sheet:
1) Assets:
“Assets are things that a company owns that have value”.
a) Tangible assets
A tangible asset is an asset that has physical form. Tangible assets include
both fixed assets, such as machinery, buildings and land, and current assets,
such as inventory. The opposite of a tangible asset is an intangible asset.
b) Intangible assets
An intangible asset is an asset that is not physical in nature. Corporate
intellectual property (items such as patents, trademarks, copyrights, business
methodologies), goodwill and brand recognition are all common intangible
assets in today's marketplace.
c) Long-term investment
A long-term investment is an account on the asset side of a company's
balance sheet that represents the company's investments, including stocks,
bonds, real estate and cash, that it intends to hold for more than a year.
d) Deferred assets
A deferred asset is an expenditure that is made in advance, and is not yet
consumed. It arises from one of two situations: short consumption period.
The expenditure is made in advance, and the item purchased is expected to be
consumed within a few months.

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e) Current assets.
Cash and other assets that are expected to be converted to cash within a
year.
2) Liabilities:
A liability is legally binding obligations payable to another entity.
Liabilities incurred in order to fund the ongoing activities of
a business. Examples of liabilities are accounts payable, accrued expenses,
wages payable, and taxes.
a) Authorized capital
The authorized capital of a company (sometimes referred to as the
authorized share capital, registered capital or nominal capital, particularly in the
united states) is the maximum amount of share capital that the company
is authorized by its constitutional documents to issue (allocate) to shareholders.
b) Issued capital
The share capital that has been issued to shareholders. This is part of a
company's authorized capital (the maximum amount of capital a company
can issue under its articles of association). The part that has not been issued is
called unissued capital.
c) Paid up capital
Paid-up capital is the amount of money a company has received from
shareholders in exchange for shares of stock. Paid-up capital is only created
when a company sells its shares on the primary market directly to investors.
d) Reserve
A reserve is profits that have been appropriated for a particular purpose.
Reserves are sometimes set up to purchase fixed assets, pay an expected legal
settlement, pay bonuses, pay off debt, pay for repairs and maintenance, and so
forth.
e) Current liabilities.
Current liabilities are a company's debts or obligations that are due within
one year, appearing on the company's balance sheet and include short-term debt,
accounts payable, accrued liabilities and other debts. Essentially, these bills are
due to creditors and suppliers within a short period.

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f) Shareholders’ equity
Shareholders equity is the difference between total assets and total
liabilities. It is also the share capital retained in the company in addition to the
retained earnings minus the treasury shares.
Income statement
A statement, which show the operation of business. It is also known as the profit and loss
statement (P & l), statement of operations, or statement of earnings.
Elements of the income statement:
1) Revenue:
Gross receipts earned by the company selling its goods or services
2) Expenses:
The costs of the company to earn the gross receipts
3) Gains:
Total revenue is greater than total expenses.
4) Losses:
Wise versa
Methods for constructing the income statement:
a) Single stepincome statement
Single step income statement totals revenues, and then subtracts all
expenses to find the bottom line.
b) Multiple stepincome statement
The more complex multi-step income statement (as the name
implies) takes several steps to find the bottom line.
Cash flow statement
A financial statement shows how changes in balance sheet accounts and income
affect cash and cash equivalents, and breaks the analysis down to operating, investing and
financing activities.
a) Operating activities.

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Operating activities are the functions of a business related to the provision of its
offerings. These are the company's core business activities, such as manufacturing,
distributing, marketing and selling a product or service
b) Investing activities.
Investing activities are the second main category of net cash activities
listed on the statement of cash flows and consist of buying and selling long-term assets
and other investments. In other words, this is the net amount of cash received and paid
during an accounting period for long-term assets and investments.
c) Financing activities.
Financing activities are transactions with creditors or investors used to
fund either company operations or expansions. These transactions are the third set of
cash activities displayed on the statement of cash flows.
Q3:- Explain the barriers to creativity.
Answer:
Creativity.

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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.
Barriers to creativity:
There are five basic types of barriers to creativity as under:
1. Historical:
 History repeat itself
 Useless any attempt to change
 Little control over life
In the historical sense, the following examples might give reason for an individual or
a society not to attempt the new to seek another solution to find a better way.
For example, there was Plato maintaining that history repeats itself. He wrote so
convincingly of the circles of civilization repeating them that too many it has seemed
futile to attempt any changes.
2. Biological:
 Creative ability is a genetic feature
 Environment is the major factor
For biological point view some scholars insist that creative ability is a hereditary trait
while others maintain that environment is the major factor. Inherited genes do play a
role within the measures of any kind of intelligence but too often in the case of
creative intelligence, heredity seems to be more excuse than actual fact.
3. Physiological:
 Brain damage
 Disease
 Accident
Physiological barriers can exist through types of brain damage one might incur
through disease or accident. Or one might have a physical disability of some sort that
prevents certain types of productivity.
4. Sociological:
 Social environment affects our creative expression
 Creative expression involves personal risk
 Negative reaction
Most certainly, our social environment affects our creative expression. A society is
comprised of individuals organized in some manner for the protection and supposedly
the advancement of its individual members. Social environment is a major factor in
our ability to use our creative potential and to express our own uniqueness. Creative
expression involves personal risk. Negative reactions to our expressions from our
own group can cause us to experience even less self-significance.

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5. Psychological:
 Self- imposed barriers
 Conformity or giving the answer expected
 Lack of effort in challenging the apparent
 Evaluating too quickly
 Fear of looking like a fool
The self-imposed barrier is one of the more difficult barriers to recognize. We put it
up ourselves either consciously or unconsciously.
The barrier of conformity follows the previous barrier in the sense that many
managers feel they have to conform to the patterns established by their colleagues in
the organization in which they work.
Another barrier is the lack of effort in challenging the obvious solution. This barrier is
in fact two barriers rolled into one. When faced with problems there is a tendency to
go for the obvious answer, which is accepted without question.
Q4:- Explain the Techniques to Improve Creativity.
Answer:

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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.
Techniques to Improve Creativity:
1. Be diverse. (Team Work)
There is a reason they say that two heads are better than one. Diverse teams can be far
more creative than individuals can because several brains naturally can generate more ideas
than a single brain. However, too much or the wrong kind of diversity can actually hurt. To
be most creative, teams should have people of differing skills, talents and backgrounds, but
with similar values and motivations. Everyone should be united behind a common goal.
2. Take a break.
Ceaselessly grinding away at a problem is less likely to produce a creative breakthrough
than consistent effort combined with occasional breaks to rest, relax, and recharge.
Incorporating exercise into breaks helps even more. Research shows people come up with
more and better ideas while walking than while standing still. Moreover, do not discount
meditation. The regular practice of mindfulness has been consistently connected with greater
creativity.
3. Reduce time pressures.
Although necessity may be the mother of invention, that does not mean people will only
be creative or be more creative when their backs are up against the wall. In fact, deadlines
have been shown to make people less creative. So, while you may at times be forced to be
creative when an 11th-hour problem strikes, you'll probably be at your creative best in a
more relaxed environment when you are not under the gun to deliver results quickly.
4. Change the scene.
Changing the physical environment has been shown to significantly help creativity.
Moving outside the business's familiar walls also helps barnstormers get outside their
familiar thought patterns.
5. Embrace failure.
One of the best-established connections between creativity and corporate culture has to
do with the way failure is treated. Simply put, creative people have to feel safe to come up
with new approaches and to try them out. That means not punishing failure and, in fact,
rewarding it.
6. Developing a procedure for capturing ideas

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It is the best techniques to improve the creativity of a business. The organization also
cans develop a procedure to capture new ideas to improve creativity and improve the
organization’s production process and other systems.
7. Providing creativity training
The organization can train their employees to make them creative by providing them
creativity training. Most of the international organizations use this method to improve their
product and to do some thinks new.
8. Diversity of thought
Try different ways of thinking. Recognizing where you (and your team) are strong, and
where you aren’t, is critical. If you know you are not adept at one part of the creative process,
seek others who are. Bounce thoughts off them and listen to the new directions their different
thinking can provide. Challenge yourself to be open to other’s perspectives.
Q5:- Explain the components of business plans.
Answer:

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Business plan:
A carefully constructed guide for a person for starting a business.
Components of business plans:
The main components of business plans are following:
1. Introduction:
Basic information of business such as ; name, address and phone number of the
business; the date of the plan was issued and a statement of confidentiality to keep
important information away from potential competitors.
2. Executive summary
The executive summary is a crucial part of the business plan. It is a synopsis of
the main points of your business plan, highlighting the key features. This is usually the
first part of your plan that prospective investors will read and it must be interesting and
concise.
3. Benefits to the community
It includes all information that how the business will have an impact on economic
development, community development, and human development.
4. Company and industry
It also important to show the background of the company and choice of legal
form, information on the product and service to be offered, examination of potential
customers, current competitors and the business’s future.
5. Management team
In this portion of the plan, a description of each member of the company
management team is provided. It should include their qualifications, accomplishments,
and commitments to business success.
6. Manufacturing and operations plan
This step of business plan include; discussion of skills, talents and job description
of management team, managerial compensation, management training needs, and
professional assistance requirements.
7. Labor force
In this step the management discuss the quality of skilled workers available and
the training, compensation, and motivation of workers.

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8. Marketing plan
A marketing plan is a business document written for describing the current market
position of a business and its marketing strategy. Marketing plans usually cover a period
of one to five years.
9. Financial plan
Financial planning is the task of determining how a business will afford to
achieve its strategic goals and objectives. Usually, a company creates a financial plan
immediately after the vision and objectives have been set.
10. Exit strategy
An entrepreneur's strategic plan to sell his or her investment in a company he or
she founded. An exit strategy gives a business owner a way to reduce or eliminate his or
her stake in the business and, if the business is successful, make a substantial profit.
11. Critical risk and assumptions
In this step, the management evaluate the weakness of the business and how the
company plans to ideal with these and other business problem.
12. Appendix
The appendix consists of an array of documentation that ranges from receipts and
bank statements to contracts and inventories. It should be used on an as-needed basis
and include only essential information.
Q6:- Difference between managerial and entrepreneurial
decision-making.
Answer:

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The difference between the entrepreneurial and the managerial styles (managerial
styles are called the administrative domain) can be viewed from five key business dimensions;
which are following.
1. Strategic orientation
The entrepreneur’s strategic orientation depends on his or her perception of the
opportunity. This orientation is most important when other opportunities have
diminishing returns accompanied by rapid changes in technology, consumer economies,
social values, or political rules. When the use of planning systems as well as measuring
performance to control current resources is the strategic orientation, the administrative
(managerial) domain is operant, as is the case with many large multi-national org.
2. Commitment to opportunity
In terms of the commitment to opportunity, the second key business dimension,
the two domains vary greatly with respect to the length of this commitment. The
entrepreneurial domain is pressured by the need for action, short decision windows, a
willingness to assume risk, and few decision constituencies and has a short time span in
terms of opportunity commitment. This administrative (managerial) domain is not only
slow to act on an opportunity, but once action is taken, the commitment is usually for
a long time span, too long in some instances. There are often no mechanisms set up in
companies to stop and re-evaluate an initial resource commitment once it is made - a
major problem in the administrative (managerial) domain.
3. Commitment of resources
An entrepreneur is used to having resources committed at periodic intervals that
are often based on certain tasks or objectives being reached. These resources, often
acquired from others, are usually difficult to obtain, forcing the entrepreneur to
maximize any resources used. This multistage commitment allows the resource
providers (such as venture capitalists or private investors) to have as small an exposure
as possible at each stage of business development and to constantly monitor the track
record being established. Even though the funding may also be implemented in stages in
the administrative domain, the commitment of the recourses is for the total amount
needed. Administratively oriented individuals respond to the source of the rewards
offered and receive personal rewards by effectively administering the resources under
their control.
4. Control of resources
Control of the resources follows a similar pattern. Since the administrator (manager)
is rewarded by effective resource administration, there is often a drive to own or

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accumulate as many resources as possible. The pressures of power, status, and financial
rewards cause the administrator (manager) to avoid rental or other periodic use of the
resource. The opposite is true for the entrepreneur who—under the pressure of limited
resources, the risk of obsolescence, a need for flexibility, and the risks involved—strives
to rent, or otherwise achieve periodic use of, the recourses on an as-needed basis.
5. Management structure
The final business dimension, management structure, also differs significantly
between the two domains. In the administrative domain, the organizational structure is
formalized and hierarchical in nature, reflecting the need for clearly defined lines of
authority and responsibility the entrepreneur, true to his or her desire for independence
employs a flat organizational structure with informal networks throughout.
Q7:- Explain the Michael porter’s five forces model
Answer:
Porter's five forces
“Porter five forces analysis is a framework that attempts to analyze the level of
competition within an industry and business strategy development. It draws upon industrial
organization (IO) economics to derive five forces that determine the competitive intensity
and therefore attractiveness of an Industry”.
“Porter's five forces is a model of analysis that helps to explain why different
industries are able to sustain different levels of profitability. This model was originally
published in porter's book, "competitive strategy: techniques for analyzing industries and
competitors" in 1980. The model is widely used, worldwide, to analyze the industry
structure of a company as well as its corporate strategy”.
1. Competition in the industry

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The importance of this force is the number of competitors and their ability to
threaten a company. The larger the number of competitors, along with the number of
equivalent products and services they offer, dictates the power of a company. Suppliers
and buyers seek out a company's competition if they are unable to receive a suitable deal.
2. Potential of new entrants into an industry
The force of new entrants into its market also affects a company’s power. The less
money and time it costs for a competitor to enter a company's market and be an effective
competitor, the more a company's position may be significantly weakened.
3. Power of suppliers
This force addresses how easily suppliers can drive up the price of goods and
services. The number of suppliers of key aspects of a good or service, how unique these
aspects are and how much it would cost a company to switch from one supplier to
another affects it. The fewer number of suppliers and the more a company depends upon
a supplier, the more power a supplier holds.
4. Power of customers
This specifically deals with the ability customers have to drive prices down. How
many buyers, or customers affect it, a company has, how significant each customer is and
how much it would cost a customer to switch from one company to another. The smaller
and more powerful a client base, the more power it holds.
5. Threat of substitutes
Competitor substitutions that can be used in place of a company's products or
services pose a threat. For example, if customers rely on a company to provide a tool or
service that can be substituted with another tool or service or by performing the task
manually and this substitution is fairly easy and of low cost, a company's power can be
weakened.

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Q8:- Explain the women entrepreneurship.
Answer:
Women entrepreneurs:
It may be defined as a woman or group of women who initiate, organise and run a
business enterprise.
Definition:
“Women who innovate initiate or adopt business actively are called women entrepreneurs.”
J. Schumpeter
“Women entrepreneurship is based on women participation in equity and employment of a
business enterprise.” Ruhani j. Alice
Qualitiesof women entrepreneur
1) Accept challenges
2) Ambitious
3) Hard work
4) Patience
5) Motivator
6) Adventurous
7) Conscious
8) Educated
9) Intelligent
Functionsof women entrepreneur
There are basic four functions of women entrepreneur
 Planning:

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Planning is the most important function of entrepreneurship. Women entrepreneur
planning the all procedure or management to complete tasks of the business. The women
entrepreneur cannot be run without planning.
 Organizing:
Organizing is also an important function of women entrepreneurs that what, when
and how to do. If the business cannot be run without organizing of all procedure of
business.
 Decision making:
Decision-making is a very difficult function of women entrepreneur. In case of
any problem, the good decision plays very important role. The wrong decision can make
the obstacles to achieve the business goals.
 Risk bearing:
Every business includes some portion of risk. However, women entrepreneurs
have risk taking capacity. They calculate different types of risks such as financial risk,
social risk, psychological risk etc. They handle risks by gathering information.
Psychosocial barriers:
1) Poor self-image of women
2) Inadequate motivation
3) Lack of courage and self-confidence
4) Inadequate encouragement
5) Lack of social acceptance
6) Unjust socio-economic and cultural system
7) Lack of freedom of expression
8) Afraid of failures and criticism
9) Susceptible to negative attitudes
10) Lacking in leadership qualities
Problemsof women entrepreneurs:
1) Defying social expectations
Women may feel as though they need to adopt a stereotypically "male" attitude
toward business: competitive, aggressive and sometimes overly harsh.
2) Limited access to funding

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Women mostly have limited funds to start business or to continue the business.
Mostly businessmen are investing in high level of companies other than women
entrepreneurs.
3) Owning your accomplishments
The communal, consensus-building qualities encouraged in young girls can leave
women unintentionally downplaying their own worth. A startup that provides personal
storage for events, said she has always found it difficult to convey her own worth as a
leader.
4) Building a support network
Forty-eight percent of female founders report that a lack of available advisers and
mentors limits their professional growth. Most of business today still rings true with the
philosophy that 'it's not what you know; it's who you know,' this can be a huge factor in
your ultimate success.
5) Balancing business and family life
It is also very difficult for women to adjust timing of business and family life.
Mostly mothers, who start the business and try to adjust their life between business and
their family is very difficult.
6) Coping with a fear of failures
The fear of failure is the top concern of women who launch startups. Failure is a
very real possibility in any business venture.
Remediesto solve the problems:
1. The financial problems can be removed by making finance cells to provide the financial
sports to women entrepreneurs.
2. Markiting co-opratives are very help full for women entrepreneurs to solve marketing
problems and increase the sales.
3. Availability of raw material is also a problem of women entrepreneurs, it can be solve by
suppling raw material with proper chain system.
4. By developing the education institutions and colleges, the lack of education and
awareness can be removed.
5. Training problem can be removed by developing the training centers for giving training
facility to women entrepreneurs.

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Q9:- Describe business model? Identify four major component
of business model.
Answer:
Business model:
It represents the common group of characteristic and methods of doing business to
generate sales revenues and reduce expenses.
Majorcomponents of business model:
Major components of business model are following:
1. Producer
Each model includes the entity that offers a product or service. In most models, the
company itself fills this position and is the producer of the product. Sometimes, for example,
the company delivers, rather than makes, the product. That company, then, is the producer of
the delivery system.
2. Offer or Value Proposition
The value proposition is the perceived value your products provide as the solution to
the consumer's problem or need. Typically, this is a physical product, but services, digital
products, intellectual property and ideas are all value propositions. Often, companies will
offer a product and a related service together, such as a car and its maintenance.
3. Target Market Segment
The targeted market is the group of consumers your plan to offer the value of your
product to. Since different markets use the same or similar products, adding multiple
segments can increase the potential gain for your company.
4. Distribution or Movement Channel

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Getting your product to its target market, from advertising to retail outlet, is the
distribution, or movement, channel. This establishes the means by which your business
relates to your customers.
5. Consumer Relationship
How you establish relationships with your various customer segments is your
consumer relationship. It defines how you gain their trust and deliver your product. Brand
recognition falls under this area, as does customer service.
6. Value and Resource Configuration
How you utilize the activities, personnel, and resources necessary to produce your
product are your value and resource configuration or value chain. This configuration is the
basis for your cost and revenue structures.
7. Core Competency
The basic knowledge, skill set, abilities, and expertise required to produce your
product is your core competency. Initially, it rests in the owner-innovator and the team she
surrounds herself with to bring the product to market.
8. Network or Affiliation Partners
The partner network represents agreements between your business and other
companies necessary to produce and market your product. They include materials and parts
suppliers, retail outlets, shippers, advertising agencies, and media outlets. Commercializing
the value of your product relies on your partnerships.
9. Cost Structures
The expense required to manufacture a product or provide a service is the cost
structure. This includes fixed costs such as leases or mortgage payments, and variable costs,
such as research and development, marketing, shipping, and payroll. The ratio of fixed costs
to variable costs represents the cost structure.
10. Revenue Streams
The ways a company makes income are its revenue streams. Most often, this is
income due to sales. However, it can refer to bartered goods and value-added returns from
consumers, partners or third parties such as unsolicited viral or social marketing.

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Q10:- Role of entrepreneur in economic development and
Explain social responsibility and ethics.
Answer:
Role of Entrepreneur in Economic Development:
The major Roles played by an entrepreneur in the economic development of an economy
are discussed in a systematic and orderly manner as follows.
(1) Promotes capital formation:
Entrepreneurs promote capital formation by mobilizing the idle savings of public.
They employ their own as well as borrowed resources for setting up their enterprises.
Such types of entrepreneurial activities lead to value addition and creation of wealth,
which is very essential for the industrial and economic development of the country.
(2) Creates large-scale employment opportunities:
Entrepreneurs provide immediate large-scale employment to the unemployed,
which is a chronic problem of under developed nations. With the setting up. Of more
and more units by entrepreneurs, both on small and large-scale numerous job
opportunities are created for others.
(3) Promotes balanced regional development:
Entrepreneurs help to remove regional disparities through setting up of industries
in less developed and backward areas. The growth of industries and business in these
areas lead to a large number of public benefits like road transport, health, education.
(4) Reduces concentration of economic power:
Economic power is the natural outcome of industrial and business activity.
Industrial development normally leads to concentration of economic power in the hands
of a few individuals which results in the growth of monopolies.
(5) Wealth creation and distribution:

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It stimulates equitable redistribution of wealth and income in the interest of the
country to more people and geographic areas, thus giving benefit to larger sections of
the society. Entrepreneurial activities also generate more activities and give a
multiplier effect in the economy.
(6) Increasing gross national product and per capita income:
Entrepreneurs are always on the lookout for opportunities. They explore and
exploit opportunities, encourage effective resource mobilization of capital and skill,
bring in new products and services and develops markets for growth of the economy. In
this way, they help increasing gross national product as well as per capita income of the
people in a country.
(7) Improvement in the standard of living:
Increase in the standard of living of the people is a characteristic feature of
economic development of the country. Entrepreneurs play a key role in increasing the
standard of living of the people by adopting latest innovations in the production of wide
variety of goods and services in large scale that too at a lower cost. This enables the
people to avail better quality goods at lower prices, which results in the improvement of
their standard of living.
(8) Promotes country's export trade:
Entrepreneurs help in promoting a country's export-trade. They produce goods
and services in large scale for the purpose earning huge amount of foreign exchange
from export in order to combat the import dues requirement. Hence, import substitution
and export promotion ensure economic independence and development.
(9) Induces backward and forward linkages:
Entrepreneurs like to work in an environment of change and try to maximize
profits by innovation. When an enterprise is established in accordance with the
changing technology, it induces backward and forward linkages, which stimulate the
process of economic development in the country.
(10) Facilitates overall development:
This leads to overall development of an area due to increase in demand and
setting up of more and more units. In this way, the entrepreneurs multiply their
entrepreneurial activities, thus creating an environment of enthusiasm and conveying an
impetus for overall development of the area.

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Socialresponsibility
Entrepreneurship is not only limited to starting business for profit but also should
combine notions of innovation, changes, opportunities and resources along with social
responsibility. It combines the entrepreneurship with a mission to serve the society.
ESR ensures the better living and improving communities through their social
activities; and providing amenities to the poor and the entrepreneurs can develop better
impact social interventions to lift the communities out of poverty.
Example:
The flood in Pakistan arises then the Edhi Foundation was performed their social
responsibilities to save peoples.
Ethics:
Ethics are a set of principles outlining a behavioral code that lays out what is good and
right or bad and wrong. It may outline obligations and appropriate moral actions for both the
individual and the organization. Ethics does not just apply to business but also to apply on
normal life. It may be difficult for individuals or groups in society to agree upon what is right
and wrong
Many businesses develop their own codes of ethics. These codes outline what employees
are to do in order to carry out what the company sees as the “right thing to do” in various
circumstances
Example:
Following are the example of ethics in business:
 Honesty
 Keeping Your Promises
 Loyalty
 Integrity
 Respect

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Entrepreneurship second assignment, M.Com, Commerce

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