Entrepreneurship is the process of identifying, developing, and bringing a business

idea to life with the goal of creating value, solving problems, and
generating profit.

Characteristics of Entrepreneurs

1. Self-Motivation- refers to an entrepreneur's ability to drive themselves to take action,

set goals, and work consistently towards achieving them without
external pressure.
2. Risk Tolerance- refers to an entrepreneur's ability to assess, accept, and manage
uncertainties and potential losses in pursuit of business
opportunities.
3. Flexibility- refers to the ability to adapt to changing circumstances, market conditions,
and customer needs.
4. Passion- is a key characteristic of an entrepreneur, as it drives their motivation and
commitment to their business goals.
5. Management Skills and Knowledge- a characteristic of an entrepreneur refer to the
ability to effectively plan, organize, lead, and control resources to achieve
business goals.
6. Vision- the ability to see the big picture and set long-term goals.
7. Confidence- refers to the belief in one’s abilities, decisions, and vision to
successfully run and grow a business.
T
S Entrepreneurial Skills
E
C 1. Time Management- refers to the ability to prioritize tasks, allocate time effectively,
C and maximize productivity to achieve business goals.
For 2. Strategic Thinking- is the ability to analyze situations, anticipate future trends, and
Net plan long-term actions to achieve business objectives.
Bra 3. Efficiency - refers to the ability to achieve maximum productivity with minimal wasted
S effort or resources.
4. Communication - refers to the ability to convey ideas, information, and instructions
clearly and persuasively to various stakeholders, including
employees, customers, investors, and partners.
5. Curiosity- refers to a natural desire to learn, explore new ideas, and seek out
innovative solutions.
6. Finance - refers to the ability to manage and make informed decisions about money,
investments, and resources to ensure the financial health and growth of a
business.
7. Networking - refers to the process of building and maintaining relationships with
people who can provide support, advice, and opportunities for
business growth.
8. Branding- refers to the process of creating a unique identity for a business that
differentiates it from competitors and resonates with customers.
9. Sales -refers to the ability to sell products or services to customers by understanding
their needs, persuading them, and closing deals that contribute to
business growth.

Types of Personality

R 1. Realistic personality is characterized by a practical, hands-on approach to problem

I solving and decision-making.
A 2. Investigative - is characterized by a strong inclination toward research, analysis, and
S problem-solving.
E 3. The Artistic personality is characterized by creativity, self-expression, and a
C preference for unstructured and innovative approaches.
4. The Social personality is characterized by a strong focus on building relationships,
helping others, and creating collaborative environments.
5. The Enterprising personality is characterized by leadership, ambition, and a drive to
influence and achieve success.
6. The Conventional personality is characterized by a preference for structure,
organization, and adherence to established systems and processes.

Classification of Business

1. Public Enterprises are businesses or organizations owned, operated, and funded by

the government to provide goods or services that serve public
interests.

2.Private Enterprises are businesses owned and operated by individuals, groups, or

private organizations rather than the government.

TYPES OF BUSINESS

1. A Service Business is a type of enterprise that provides intangible products,

focusing on delivering services rather than manufacturing
or selling physical goods.
2. A Merchandising Business is a type of enterprise that buys goods in bulk from
manufacturers or wholesalers and sells them directly to
customers at a profit.
3. A Manufacturing Business is a type of enterprise that produces goods by
transforming raw materials into finished products
through various processes, machinery, and labor.

Forms of Business Organization

refer to the different legal structures through which businesses can operate. Each form
has distinct features regarding ownership, management, liability, and tax treatment. Key
forms include:

1. Sole Proprietorship: A business owned and operated by one individual, where the
owner has full control and responsibility, but also
unlimited liability.
2. Partnership: A business owned by two or more individuals who share
responsibilities, profits, and liabilities.
3. Corporation: A legal entity separate from its owners, offering limited liability to
shareholders and the ability to raise capital through stocks.
4. Limited Liability Company (LLC): A hybrid structure combining the flexibility of a
partnership with the limited liability of a corporation

-allows for the pooling of resources and skills of individuals while limiting the
liability of each owner

5. Cooperative: A business owned and operated by a group of individuals who share

profits and decision-making power, typically for mutual benefit.

FUNCTIONS OF BUSINESS

1. Production Function
- is the creation of goods and services with the help of certain processes.

2. The Marketing Function refers to the activities involved in promoting, selling, and
distributing products or services to customers.

3. The Finance Function refers to the management of financial resources to ensure

the business operates effectively, remains profitable, and
meets its financial objectives.

4. The Human Resource (HR) Function in business is responsible for managing and
supporting the organization's workforce to ensure that
employees are effective, motivated, and aligned with the
business’s goals.
Ethical Behavior Required of an Entrepreneur involves adhering to moral
principles and standards in all aspects of business, ensuring that decisions and
actions benefit not only the entrepreneur but also the community, employees,
customers, and other stakeholders.

1. Public Image refers to the perception and reputation that an individual or

business creates and projects to the public, including customers,
employees, investors, and other stakeholders.

2. Employee Satisfaction refers to the level of contentment and positive feelings

that employees have toward their job, work environment, and the
organization they work for. It is a key driver of productivity,
engagement, and retention.

3. Ethical Leadership refers to the practice of leading with integrity, fairness, and
transparency, while consistently making decisions that align with
ethical principles and values. An ethical leader serves as a role
model, promoting honesty and fairness, both within the organization
and in its dealings with external stakeholders.

4. Environmental Management refers to the process of managing a business's

impact on the environment through sustainable practices,
regulations compliance, and resource conservation. It involves
identifying environmental risks, minimizing negative impacts, and
promoting eco-friendly practices.

5. Consumer Awareness refers to the understanding and knowledge that

consumers have about their rights, the products or services they purchase,
and the impact of their choices on their health, safety, and the environment.

Social Responsibility of an Entrepreneur Towards Different Sections of

The Society

1. The Social Responsibility of an Entrepreneur Towards Employees involves

ensuring fair treatment, providing a safe and supportive work environment,
offering fair compensation, and promoting opportunities for growth and
development.

2. The Social Responsibility of an Entrepreneur Towards Customers involves

providing high-quality, safe products or services, being transparent, and ensuring
fair pricing while prioritizing customer satisfaction and ethical business practices.

3. The Social Responsibility of an Entrepreneur Towards Shareholders involves

ensuring transparent communication, making sound business decisions, and
striving for long-term profitability and value creation while considering ethical and
sustainable practices.

4. The Social Responsibility of an Entrepreneur Towards Suppliers and Creditors

involves maintaining fair and timely payments, fostering transparent relationships,
and treating them with respect and integrity to ensure mutual growth and trust.

5. The Social Responsibility of an Entrepreneur Towards the Public involves

contributing to community welfare, minimizing environmental impact, and
engaging in ethical practices that benefit society as a whole.

6. The Social Responsibility of an Entrepreneur Towards the Government involves

complying with laws and regulations, paying taxes, and contributing to the
economic and social well-being of the country through ethical business practices.