Page 108 - Computer - 9(A&B)

4 4 Entrepreneurial Skills-I

Session 1

Identify Various Types of Business Activities

Business is an economic activity that is related to the regular production and distribution of goods and services
for profi t. Businesses are important for the society to sustain. They cater to the needs of the people. But at times
we fi nd that there is a gap between what is needed and what is available. This gap is used by some people as an
opportunity in setting up small businesses. They are the people who are ready to take risks and fi ll the gaps by
providing necessary products and services for profi t. These people are called entrepreneurs. So, an entrepreneur
is a business person who is self-employed and sets up a business taking on calculated fi nancial risks in the
hope of earning profi t. An entrepreneur brings a new idea to start a business. Here the term ‘new idea’ is very
important because a business person cannot be called entrepreneur unless he/she introduces a new idea or
methodology to the business. For example, a greengrocer is also a self-employed person but he cannot be called
an entrepreneur because he is not bringing a new idea to his business.
Entrepreneurship is the process of discovering an opportunity, mobilizing resources and launching an enterprise
to use the opportunity. Business and entrepreneurship are complementary to each other and cannot be separated.
The steps in any entrepreneurial venture can be summarised in the following table:

Idea The fi rst step is to come up with a business idea. A business idea could be based on:
 something you are interested in doing.
 a need you see in the market.

Getting Money Once you have the idea, you can start business on a small scale with enough money to
and Material help you in buying basic material.
Understanding Once you start selling, you will fi nd out what your customer likes and wants. You will
Customer Needs also fi nd out what your customer does not like during this stage.
Improving You can use the knowledge of your customer’s needs to assess what your customer
Product/Service likes and what does not. This will help you to improve your product.

Steps for starting a business

Businesses can be for-profit organisations or non-profit
organisations, depending on their line of work and way
of working.

Various Types of Business Activities
The business activities are varied and comprise several types of activities. All business activities may be classifi ed
into three broad categories:

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