AN OVER LOOK ON ENTREPRENEURIAL ATTITUDE

IMPORTANCE OF ETHICS IN ENTREPRENEURSHIP

IMPORTANCE OF ETHICS IN ENTREPRENEURSHIP

The word ‘ethics’ has its origin in the Greek word ‘ethos’ meaning character; norms, ideals or morals prevailing in a group or society. Ethics is concerned with what is right and what is wrong in human behaviour judged on the basis of a standard form of conduct/behaviour of individuals, as approved by society in a particular field of activity. Ethics may be viewed as the entire body of moral values that society attaches to the actions of human beings. Ethics can also refer to codes or other system for controlling.

Business ethics refer to the socially determined moral principles which should govern business activities. Business ethics are: charging fair prices from customers, using fair weights for measurement of commodities, giving fair treatment to workers and earning reasonable profits. A business person behaves ethically when her or his actions are upright and serve the interest of society. Business ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.

Ethics has very important values in entrepreneurship ventures. This is particularly essential in decision making process. Ethical conscience reminds entrepreneurs to make trustworthy and profitable entrepreneurship decisions. Awareness of moral and ethical principles will help the entrepreneurs to solve challenging ethical problems. Those who follow ethical principles will continue their business practices for a long time.

An entrepreneur is actually running his own business and being a businessman he has some obligation of a business to meet his economic and legal responsibilities. The world economy requires innovators and entrepreneurs to both advance and sustain global community. While ethics of an entrepreneur and businesses undertake the plan and consider social responsibility a vital event in their activities, everybody benefits. Therefore an entrepreneur has to become aware about his role and strive to obey them in perfect manner which would be beneficial to him as well as the community as a whole. Following activities will help the entrepreneurs to protect the ethical values for the progress of their business ;

(1)              Avoid breaking criminal law in one’s work related activity

(2)             Providing good quality and correct quantity of goods to consumers.

(3)            Taking necessary actions to avoid pollution during production.

(4)             Paying  reasonable wages and salary to workers.

(5)            Avoid promoting child labour for production purpose and other activities in the firm.

(6)            Sustainable and judicious use of natural resources.

(7)             Give maximum employment opportunities to the peoples in the locality of business.

(8)            Collect maximum resources ( may be raw materials ) from the society and try to avoid importing of it.

IMPORTANCE OF ETHICS IN ENTREPRENEURSHIP

IMPORTANCE OF ETHICS IN ENTREPRENEURSHIP

The word ‘ethics’ has its origin in the Greek word ‘ethos’ meaning character; norms, ideals or morals prevailing in a group or society. Ethics is concerned with what is right and what is wrong in human behaviour judged on the basis of a standard form of conduct/behaviour of individuals, as approved by society in a particular field of activity. Ethics may be viewed as the entire body of moral values that society attaches to the actions of human beings. Ethics can also refer to codes or other system for controlling.

Business ethics refer to the socially determined moral principles which should govern business activities. Business ethics are: charging fair prices from customers, using fair weights for measurement of commodities, giving fair treatment to workers and earning reasonable profits. A business person behaves ethically when her or his actions are upright and serve the interest of society. Business ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.

Ethics has very important values in entrepreneurship ventures. This is particularly essential in decision making process. Ethical conscience reminds entrepreneurs to make trustworthy and profitable entrepreneurship decisions. Awareness of moral and ethical principles will help the entrepreneurs to solve challenging ethical problems. Those who follow ethical principles will continue their business practices for a long time.

An entrepreneur is actually running his own business and being a businessman he has some obligation of a business to meet his economic and legal responsibilities. The world economy requires innovators and entrepreneurs to both advance and sustain global community. While ethics of an entrepreneur and businesses undertake the plan and consider social responsibility a vital event in their activities, everybody benefits. Therefore an entrepreneur has to become aware about his role and strive to obey them in perfect manner which would be beneficial to him as well as the community as a whole. Following activities will help the entrepreneurs to protect the ethical values for the progress of their business ;

(1)              Avoid breaking criminal law in one’s work related activity

(2)             Providing good quality and correct quantity of goods to consumers.

(3)            Taking necessary actions to avoid pollution during production.

(4)             Paying  reasonable wages and salary to workers.

(5)            Avoid promoting child labour for production purpose and other activities in the firm.

(6)            Sustainable and judicious use of natural resources.

(7)             Give maximum employment opportunities to the peoples in the locality of business.

(8)            Collect maximum resources ( may be raw materials ) from the society and try to avoid importing of it.

COMPETENCIES OF AN ENTREPRENEUR - PPT

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Sample Question With Marking Scheme - ENTREPRENEURSHIP DEVELOPMENT PROGRAMME

Sample Question With Marking Scheme

                                                                               ENTREPRENEURSHIP DEVELOPMENT PROGRAMME

Class : XI.D                                                                                                                                             Marks : 35

Time : 1.30

Answer All The Questions

1.         Define the term Entrepreneurship.                                                                     (2)

2.       List out the major characteristics of an entrepreneur                     (3)

3.       Explain any ten functions of an  entrepreneur                                   (5)

4.       Make a comparison of this aspects Entrepreneur, Entrepreneurship

and enterprise                                                                                                       (3)

5.       Write an operational definition for the term ‘Entrepreneur’                            (2)

6.       Why we need entrepreneurship ?                                                                        (5)

7.       Explain the different myths of entrepreneurship                                               (5)

8.       Explain the different process involved in starting of an

Entrepreneurship                                                                                  (5)

9.       Explain any ten types of entrepreneurs                                                              (5)

MARKING SCHEME

Question Number	Value points	Marks Per Point	Total
1.	According to Adam Smith, “An individual, who undertakes the formation of an organization for commercial purposes by recognizing the potential demand for goods and services , and there by acts as an economic agent and transforms demand into supply”.	2	2
2.	§  Develops and owns his own enterprise. §  Is innovative. §  Is a persuader of deviant persuits. §  Reflects a strong urge to be independent. §  Persistently tries to do something better. §  Is dissatisfied with routine activities.	½ ½ ½ ½ ½ 1/2	3
3.	Entrepreneurial Functions                 As an entrepreneur , he/she performs the following activities; §  Innovation It is the basic function of an entrepreneur. As an innovator he has to bring new product, new market, new source of raw materials ,etc. He foresees a potentially profitable opportunity and tries to exploit it. §  Risk taking Risk taking refers to taking responsibility for a loss . A good entrepreneur reduces the risk in his business. He is a self-confident and highly optimistic person and willing to assume the risk involved in his enterprise. Promotional Functions                                            §  Discovery of an Idea There are lots of opportunities / ideas available in our world to set up an enterprise. But it is the ability of a good entrepreneur to discover a suitable idea that helps to develop profitable ventures. He / she has to develop the discovered idea with the support of experts in the field. §  Detailed Investigation The entrepreneur will conduct a detailed analysis about the demand for his product in the market. There after he will analyse  the availability of finance, power, labour, raw materials and machinery, etc. §  Assembling the Requirements After making sure that the idea is practical and profitable one, he will acquire some patent rights , if he has invented something. Then the entrepreneur selects the factory site, decides about plant and machinery, contacts suppliers of raw materials. Preliminary contracts are finalized and projects set to begin. 3. Managerial Functions §  Planning It is the basic and foremost managerial function of an entrepreneur .  It helps in determining the course of action to be followed to achieve various entrepreneurial objectives. It is decision making in advance , what to do, when to do it, how to do it and who will do a particular task. §  Organising The entrepreneur sets up the objectives or goals to be achieved by its personnel. The function of organising is to arrange, guide, co-ordinate, direct and control the activities or the factors of production. §  Staffing It is concerned with the human resources of an enterprise. It consist of manpower planning, recruitment, selection , placement, human resource development, promotion, transfer, appraisal and determination of employee’s remuneration. §  Directing It is concerned with carrying out the desired plans with the support of proper instructions. It ensures effective performance of planned activities by the subordinates, §  Leadership It is the process of inspiring or influencing the workers by satisfying their needs for the fulfillment of organisational objectives. §  Controlling The controlling process begins with establishing standards of performance, measuring actual performance, comparing actual with standard performance, finding variations and taking corrective actions.	½ ½ ½ ½ ½ ½ ½ ½ ½ ½ ½	5
4.	a) Entrepreneurship is a ship on a voyage that has on board , innovative and creative men and women, who like to do all those constructive things which nobody could lay his/her hands on before. b) An Entrepreneur is a person is responsible for setting up a business or an enterprise c) The outcome of the joined effort of entrepreneur and entrepreneurship is enterprise.	1 1 1	3
5.	An Entrepreneur is a person is responsible for setting up a business or an enterprise . He has the initiative , skill for innovation and who looks for high achievements. He is a catalytic agent of change and works for the good of people. He puts up new green field projects that create wealth , opens up many employment opportunities and leads to growth of other sectors.	2	2
6.	Need for Entrepreneurship                 Every nation needs entrepreneurship for the economic development. In capitalist countries , entrepreneurship plays a vital role, but in an under developed countries the importance for entrepreneurship is low. In developing countries there is equal importance to government and private entrepreneurs. Economic growth depends on the rate of innovation in the economic field. Creative entrepreneurs are agents of progress in the society. The need of innovative entrepreneurs is an unavoidable one in a progressing country like India. §  Life Line of a Nation If one country wants to become a developed nation, there must be more importance for the development of entrepreneurship. Entrepreneurship is the yardstick to measure the level of development of a country. §  Change of Growth / Inclusive Growth An enterprise works in a dynamic environment. In order to meet the challenges of automation and advanced technology, there must be more importance for development of entrepreneurship. §  Increased Profit Profits can be increased in any enterprise , either by increasing the sales revenue or reducing cost. Entrepreneurship by reducing cost , increase its profits and provides opportunity for future growth and development. §  Employment Opportunities Entrepreneurship and its activities provide the maximum employment potential.  Growth of enterprises in a good manner brings lots of employment opportunities in a country. It brings more national income and development. §  Social Benefits Origin of enterprises raises the standard of living by providing good quality products and services  at the lowest possible cost. It also makes the optimum use of scarce resources and promotes peace and prosperity in the country.	1 1 1 1 1	5
7.	Myths of Entrepreneurship                 By myths of entrepreneurship we mean the believes about the creation and running of enterprises in our country. The most common are the following; §  Starting an entrepreneurship is easy in our society but running for a long term is difficult. §  A lot of entrepreneurs use debt rather than equity to fund their enterprises. §  Most entrepreneurs start businesses in attractive industries. §  The growth of start –up depends more on an entrepreneur’s talents than on the business he chooses. §  Most creative product producing enterprises are successful financially.	1 1 1 1 1	5
8	Process of Entrepreneurship Entrepreneur is a creative person, he has to do lots of different activities for carrying out his business. Following are the different steps in the creation of an enterprise. §  Self Discovery : Finding out new ideas he can do, and analyse their strength and weaknesses. Also analyse its potential opportunities in the market. §  Identifying Opportunities : Search for unsatisfied needs and wants, problems and challenges of the society. It will give new opportunity for starting a new enterprise. §  Generating and Evaluating Ideas : Using creativity and past experience to devise new and innovative ways to satisfy the needs , wants , problems and challenges of the society. §  Planning : Researching and identifying resources needed to make the idea successful one. Plan all the activities for making the idea into a good venture. §  Raising Start-up Capital : Using the business plan , entrepreneur has to collect the necessary amount of funds to start the business. §  Start-up : Starting the production activities or collection of goods and services, distribution of goods and services to needy people, creation of a good collection of regular customers. §  Growth : Develop the business with new strategic plans and changing technologies . §  Harvest : Marketing the products and harvesting the rewards.	1 ½ ½ ½ ½ ½ ½ ½ ½	5
9	Types of Entrepreneurs                 Entrepreneurs are creative individuals who conducts lots of innovative businesses. Some may prefer to carry forward the business alone and share the business with others. They are in different forms , may be the farmers, labourers, fisherman, artisans, importers, exporters, bankers, professionals, etc. Lots of classifications available about entrepreneurs . They are ; §  Innovative Entrepreneur Innovative entrepreneurs are those who introduces new products, new methods of production techniques or discovers a new market or new services etc. they are commonly found in developed countries. They are aggressive in nature and they always try to make the idea successful one. §  Imitative Entrepreneur This type of entrepreneurs always tries to copy the innovations made by innovative entrepreneurs. They are organizers of factors of production  rather than creators. They contribute to the under developed countries. They are adaptive and more flexible. §  Fabian Entrepreneurs Fabian Entrepreneurs are very shy an lazy . They are very cautious . They do not venture or take risk . They are rigid and fundamental in their approach . they follow the foot steps of their predecessors . §  Drone Entrepreneurs This type of entrepreneurs are conventional in their approach . They refuse to copy or use opportunities that come their way. They are not ready to make changes in their existing production methods even if they suffer losses. They resist changes. §  Business Entrepreneurs Business entrepreneurs are those who develop an idea for a new product or service and then establishes an enterprise to produce products according to their ideas. Most of the entrepreneurs belongs to this category . §  Trading Entrepreneurs They undertakes trading activities whether domestic or foreign trade . They have to identify the potential market for his products in order to stimulate the demand of products. They use many techniques to promote trading. §  Industrial Entrepreneurs They essentially manufacture products and offer services, which have an effective demand in the market. They have the ability to convert economic resources and technology into a profitable venture. §  Corporate Entrepreneurs They are those who through their innovative ideas and skill able to organize , manage and control a corporate undertaking very effectively and efficiently. Usually, they are promoters of the undertaking / corporations , engaged in business, trade or industry. §  Agricultural Entrepreneurs Those who undertakes agricultural as well as allied activities in the field of agriculture is known as agricultural Entrepreneurs. They engage in raising and marketing of crops, fertilisers and other inputs of agriculture through employment of modern techniques, machines and irrigation. §  Technical Entrepreneurs The Entrepreneurs who are technical by nature in the sense of having the capability of developing new and improved quality of goods and services out of their own knowledge , skill and specialization are called technical Entrepreneurs. They concentrate more on production than marketing .	½ ½ ½ ½ ½ ½ ½ ½ ½ ½	5