Question

a. Mention any four sources of business startup ideas. (1 Mark)
b. State and briefly explain any four habits you would cultivate in developing entrepreneurial mindset.
c. State and briefly explain the four types of innovation.
d. State and briefly explain any two benefits and three drawbacks of owning your own business.
e. State and briefly explain any two criteria you would consider in establishing your own business.
f. Differentiate between a business opportunity and a business environment. (1 Mark)

Answer 1

a) The four sources of business startup idea

· By doing business surveys

· Some general issues that we face in day to day life

· By going to trade fairs and listening to experts in different sectors

· From past experience

b) Four habits which are required are

· One should have good communication skill to convey your ideas and solutions

· One has to be persistent and not get discouraged easily

· One needs to be disciplined and financially sound to at some extent

· Be open to new ideas and accept where you are wrong

c) The four types of innovation are

· Disruptive innovation is where you have developed a new product completely

· Sustaining innovation is where you have improved the process for existing customer

· New market innovation is where you are providing your solutions to a new set of customers

· Integrative innovation is where multiple tasks are being done in a one unified way.

d) Two benefits

· If your business is successful it gives you financial freedom and brings wealth.

· You can pass on your business to your next generation but that is not the case with jobs.

              Drawback are

· You have to take responsibility for everything and make sure that in the beginning everything is being done properly.

· In the beginning you might face financial issues if you do not have strong cash flow.

· If the business does not succeed then it can create financial difficulty for you as well as for your family.

e) The two criteria to set up business would

· The product or idea should be financially feasible and should have high demand.

· The business should be setup in a area where the tax laws are favorable so that in the initial years the tax burdens are low.

f) The business environment is the external environment which is mostly like roads, infrastructure, income level of customer and other factors where as business opportunity is what you can gain by doing that task or performing that service.