Close relationship between entrepreneurship and business.....!
Close relationship between entrepreneurship and business.....!
Close relationship
between entrepreneurship and business
Business and Merchant Introduction
Trade is the process of producing and distributing goods or services to satisfy human needs and wants. People who engage in sexual activities are called merchants.
Needs and Wants
1.
Needs are the things that human beings have to fulfill in
order to go about their lives.
2.
Wants Wants are
different ways of satisfying human needs.
Differences between needs and wants
|
Requirements |
Options |
|
Developing early |
The second will be created after the demand has arisen |
|
Limited |
You will find many options to fulfill a need |
|
Common to all |
Preferences according to each individual's individual
situation There are various |
|
Born at birth |
Entrepreneurs can create their businessmen according to
the needs of individuals |
Products
& Services
1.
Goods are tangible products which are physically stable
to satisfy human needs and wants.
Ex:- Furniture
2. Service is the process presented by one group
of intangible elements to another in order to satisfy human needs and wants.
Ex:- Banking, Insurance Services, Transport
Services
Based on
the table given below, understand some of the special features of goods and
services.
Let's say.
|
Objects |
Services |
|
Can be touched, so there is a
physical position |
It cannot be touched and therefore there is no material
state |
|
Can be stored |
Cannot be stored |
|
Homogeneous ones can be protected |
Similar nature cannot be protected and differs
according to the people and occasions of the donor |
|
Consumers will not be required for the production
process |
Often consumers are part of the production process |
|
Can be separated from the provider |
Cannot be separated from the provider |
Characteristics of
Businesses
1.
Sales transaction taking place
2.
All business activities involve the sale or exchange of
goods and services on the basis of monetary value. Purchase and sale of goods and
services on a price basis. Sales or Exchanges
3.
Transactions taking place for goods and services
4.
Continuous transaction taking place
5.
Profit Promotion
6.
Presence of a risk
7.
Creating Options
8.
Unity of economic concern
Similarities
between entrepreneurs and businessmen
·
Engaging in Economic Activities
·
Facing the risk of loss
·
Engage in give-and-take
·
Use of resources
·
Making decisions on production, purchase and sales
·
Facing the competition
·
Thinking about sustainability
·
Self-motivation
Differences between entrepreneur and merchant
|
Entrepreneur |
Merchant |
|
He starts a business according to his ideas or ideas Example- Special Market |
Starts a business according to the prevailing concept or concept Example- Retail establishments |
|
Assesses the risks incurred and accepts the risks that
are acceptable example 1.
Expanding the business through new investments § Entering a new marketIn |
They are not very inclined to take responsibility for
the risks incurred Example- § Not interested in expanding the business |
|
They will seek competition willingly Example-
Taking the Competition as a Challenge |
They are often reluctant to face competition Example – 1.
Unwillingness to set up other businesses 2.
Fear of Imports |
|
The available resources will be used to the maximum
extent as required Example: Optimal utilization of existing limited resources Recycling of
waste generated |
They will not even derive maximum benefit from the
existing resources Example: Use of building, motor, vehicle,
machinery and raw materials at minimum level |
|
Solves problems in a constructive manner example: Finding and selling to customers |
Trying to solve problems naturally example: Selling when the customer arrives |
|
Long-term goal holder Example:Longterm sustainability in the market |
Create a Short Term Goal Example: Getting quick profits Selling goods at
any rate |
|
He will expand his business day by day and will not be
satisfied with the present situation. example:
Exploring New Markets |
Satisfaction in running the business in the present
situation example: Pavement Trading Traditional Retail |
Entrepreneur
An entrepreneur is
one who creatively understands the opportunities available in the environment
and takes risks and innovates.
There is no
definitively accepted definition of who an entrepreneur is. The following
definition of an entrepreneur can be given.
An entrepreneur is
a person who considers changes in the market as an opportunity for business.
Innovation is his weapon." (Peter F. Tucker)
Types of
Entrepreneurs
Business Entrepreneurs: Business entrepreneurs
are those who are engaged in entrepreneurial activities and generally engage in
business activities with the intention of making a profit.
Example: Retailer
Social
Entrepreneurs
The idea is to
engage in innovation to find solutions to social problems with the intention of
serving the community. Satisfaction, welcome, fame, reward etc., are expected
from social entrepreneurship. The aim of social entrepreneurship is to make the
world a better place.
Example: Spread of communicable diseases, nutrition
problems,
illiteracy, drug abuse,
poverty
Social entrepreneurs come forward to bring
about social change by coming up with solutions to these problems. It can be
seen that it works on a regional, national and international basis
Example:- Rural Credit Scheme, introduction of a program
to
prevent
epidemic diseases
Here are some of the world's most famous
social entrepreneurs.
Example: Mahatma Gandhi, Madam Marie Curie, Dr. Mohammad
Younis etc.
There are many social entrepreneurs who are
nationally reputed.
Example: C. W. W.Kannangara
Internal
(Enterprise) Entrepreneurs :
• In different
creative positions in organizations, individuals change not only the product,
but also the methods of production. The Senior Managers will encourage such
individuals to take up such constructive actions. Entrepreneurship that
operates within an organization that introduces changes in the system is called
internal entrepreneurship.
Examples: Heads of state institutions who have received
awards
and principals of schools who
have received awards
Importance of Learning Business
Environment
The
environment in which the factor influencing business activities operates is called the business
environment
Factors that
the company can or cannot control
Changes are
taking place within the business environment every day.By identifying the changes and responding appropriately, the entrepreneur can easily
handle the business activities and also derive various benefits required for
the business. Now that Sri Lanka is based on the economic
market, it is possible to identify and study the changes in the business
environment and bring out creative business ideas and opportunities through
various environmental sectors
example :
·
Interest in Computer
Technology, Telecommunication
Technology and Electronics Business
·
Tourist Travel Industry
Increase in the number of local and foreign tourists
·
Opportunity in the
construction sector
The business
environment plays an important role in ensuring the existence of the
entrepreneur who is building a quality business culture. To achieve business
objectives, the business environment should be handled carefully
Identifying
the pros and cons of the business environment will help in achieving the
objectives and objectives of the business.It is
clear from this that the opportunities
and fruits to be identified through
environmental factors are beneficial and weaknesses and challenges are adversely affected
The
entrepreneur should take action to identify the positive effects and thereby
build the business further, identify the
unfavorable results and propose solutions to minimize them. Factors in the business environment provide the
background for entrepreneurs to make the right decisions
Differences
between ancient and modern business environment
|
Most of the basic
needs of the people of that time were limited |
The basic needs of the
people are very high |
|
Needs and wants were
simple |
Vanilla goods and
services are available to meet the needs |
|
Less competition |
Competition is high |
|
Profit as the main
objective |
Apart from
profitability, it is also essential to meet various objectives such as social
responsibilities |
|
Limited to a
particular area |
They have spread all
over the world |
|
The speed of
conversions is too low |
The speed of conversions
is too high |
|
The merchants were
powerful |
Consumers are powerful
|
1.
Reconciliation of
strengths and weaknesses of the business
2.
Identify the different
types of business opportunities available in a business environment
3.
Reconciling Challenges
to Business
4.
Production and marketing
activities in a manner relevant to the changing environment.
5.
Formulation of plans and
strategies in response to environmental
changes
Types of
Business Environment
The business
environment can be divided into two parts
1.
Internal Environment
2.
External Environment
Internal environment
The various parties involved in a business activity
and other factors that affect the
business process are called the "internal environment".
Internal environmental factors include
1. owner
2. Manager
3. employee
4. abundance
5. Company
Culture
6. Organizational
Structure
Internal Environment and its Impact
By understanding the internal environmental factors, one
can accurately understand the strengths and weaknesses of one's business. Using force, you can make a business successful. Avoiding weaknesses will also lead to success in the business. A special feature is that businesses are able to control the impacts through internal
environmental factors
Let us study the
above factors and their impact on environmental classification separately
He will be a capital investor in the business. The
financial strength, business knowledge and experience of the owners are the key
to the success of a business
The owner is the person who invests capital in the business or the party which invests
the fund and accepts the profit or loss
Manager
A manager is a person who provides leadership to
achieve the goals and objectives of the enterprise by channelizing the human
and physical resources of the business
employee
Employees are those who perform their assigned
duties correctly using their knowledge and skills. They are called. Their
positive attitude and dedication are key to the success of a business.
A person
engaged in business activities is called an employee. Employees put their physical and mental
labour into business activities for which they receive wages or remuneration
abundance
Supply means
all the physical and financial aspects of carrying on business activities
Company
Culture
Organizational
culture is the beliefs, values, attitudes, customs , behaviours and role
models that are shared with everyone in
the business and passed on
to the next generation
Organizational Structure
Organizational structure is the process of
separation of functions, resources and authority of the organization in such a way that the objectives of the
organisation can be easily achieved.
Internal environment can
be studied by
1.
Strengths can be identified
2.
Weaknesses can be identified
result
Strengths
are the factors that directly influence the business organisation
Weakness
Weakness is the negative factor in a business system
Tabulating the strengths and
weaknesses associated with internal environment factors
|
Factors |
result |
Weakness |
|
owner |
Presence of more people Increase their financial strength Increase in their knowledge and experience |
Presence of a small number of
people If they have less pedal strength Lack of knowledge and experience |
|
Manager |
Increased training and experience Ability to make right decisions |
Lack of training and experience Incorrect Determination |
|
employee |
Availability of skilled and
experienced staff Having a variety of skills Positive attitude Motivated employees will be found |
Presence of untrained employees Not having multiple skills Hostile attitude Presence of inefficient employees |
|
abundance |
Availability of necessary
resources Availability of quality material Updated Availability of resources |
Lack of adequate resources Poor quality Presence of timeless prosperity |
|
Company Culture |
There is a straight assessment and
a straight system Developed behavior, discipline and
habits |
No Interview and Evaluation will be
conducted Lack of developed behavioural discipline |
|
Organizational Structure |
Appropriately distributing work Organizing appropriately |
Without better inter-sectarian
links |
External Environment
All the factors that influence the activities of a
business enterprise but are found outside the business premises are called
external environment.
External environmental factors
include
1. Proximity
2. Political and legal environment
3. Economic environment
4. Social and cultural context
5. Technical Environment
6. Natural Environment
7. People Environment
8. Global environment
External Environment and its Impact
If the objectives of the business are to be easily
achieved, it should take maximum advantage of the opportunities and obtain the
right solutions to the challenges
Proximity
A proximate environment is one of the external environmental factors that
act most closely to business
Recent environmental
factors include customers, suppliers, competitors, manufacturers and suppliers of substitutes and those who intend to enter the business
sector in the near future
customer
Customers are
those who purchase goods and services in a business. The stability of a
business is determined by them. Therefore, it is necessary to identify their
various needs and wants and satisfy them in the right way. Businesses need to
take action. Changes in customer buying patterns It can have a great impact on
the operations of a business.
Suppliers
Suppliers are
those parties who provide various services such as raw materials, transport
facilities etc. required in the course of running a business. Supplier services
such as ensuring the quality of raw materials and services on a continuous and
timely basis are very important for the continuity of the business.
Competitors
Companies that
produce or supply an equivalent good or service of a business are considered as
competitors. The way competitors conduct their business activities, the prices
and quality of the products of the competitors also have a major impact on the
business operations.
Economic environment
The factors that
determine the economic activities of a country are called the economic
environment
Economic environmental factors such as changes in interest rates, price
levels, people involved, salary level, foreign exchange, changes
etc., have a beneficial and negative impact on business activities. It is
useful for the entrepreneur to be aware of the opportunities and challenges
arising from them
example:
·
Increase in employment opportunities will increase income
and expand market opportunities
·
Rising interest rates on loans are a challenge for the
business
Political
environment
The stability of
the government in the country and the different policies followed by the
government can have an impact on businesses. Businessmen should conduct their
business activities keeping these in mind. Some examples of political
situations are given below.
Example –
§ Stability of the State
§ Infrastructure Development Policies
§ Budget Policies
§ Labour Policies
Legal
Environment
The legal environment includes the laws and
regulations that are approved to protect the local producers, consumers,
business community and the environment. The laws and regulations imposed by the
government have different impacts on businesses. Similarly, the government has
appointed institutions, boards, commissions and responsible officials and
individuals to enforce the laws and regulations. Several examples of such rules
are given below.
Example:-
§ Companies Act No. 07 of 2007 Consumer Affairs
Authority Act No. 09 of 2003
§ Shop and Office Employees Act No. 14 of 1954
There are many
such positions and institutions that have been established to enforce laws and
regulations.
example
Registrar General
of Companies
Industrial Dispute
Board
Central
Environmental Authority of Sri Lanka
Public Health
Inspector
Consumer
Affairs/Consumer Affairs Authority
Scientific & Technical Environment
The scientific and technological environment in business refers to the
development of technology, scientific research, and how technological devices
affect the business.
Technological
Development
New technologies and devices will improve business performance, for
example, professional software, artificial intelligence (AI), and meta-plate colors.
Scientific
Research
Innovations and
research will improve business techniques. For example, research into
developing new drugs in pharmaceutical companies.
Impact of
technology
Depends on how
technology affects business performance. For example, authentication systems,
cloud services, and data analytics.
To see how changes
in technology are changing business models. For example, online business and
electronic commerce.
Reach new markets
and create new business opportunities through technological development and
scientific research. Improve performance with technical assistance, save time
and increase productivity
This scientific
and technological environment will be key to creating outcomes of business and
promoting its growth.
example
§
An opportunity for internet merchants
§
The use of my camera reduced the demand for photography shops and posed a challenge to photo shop owners
Environment
The environment which includes all the influences of natural phenomena on commercial activities is called natural environment
The raw materials required for commercial activities
are obtained from the natural environment. Natural environmental factors
include natural resources, natural meanings etc.There are valuable resources used and used
for commercial activities.Many business opportunities can be
achieved when natural resources are used in a way that does not harm the
environment. Natural disasters can also pose a
challenge to business
example
§ Demand Moons are a commercial
opportunity for plant based products produced from indigenous medicinal plants
§ Natural phenomena such as drought
and flooding pose a challenge to agricultural activities
Social and cultural context
The social
and cultural environment is the
environment that includes the commonsense, value, and the pool of life
Sociocultural
factors include habits, morality, beliefs and changes in life patterns. It is essential to be aware of the business
opportunities and challenges that arise when engaging in business activities in
a multi-ethnic country. Business activities should be
handled in such a way that the social and
cultural value is protected
example
§ Foreign tourist biryanis visiting
the annual Dalada Perugara are an opportunity for business
§ The increase in the number of
plant-based customers is a challenge for carnivorous business
New
trends in the sociocultural environment
§ Increasing early marriage
§ Luxury craze
§ Increase in family separation or
divorce
§ Guru disrespect
§ Bold speech
§ Lack of affection for children
towards parents
§ Parental affection for children is
high
The process
by which countries across the world work together across national boundaries is
called the global environment
example
§ The opportunity to enter
international markets is the opportunity
of increasing business
§ The presence of foreign products in
the domestic market is a challenge for local traders
The environment that includes the population of a
country and the factors related to their
life pattern is called the environment of the people
The market for goods and services is
designed based on the environment of the people. As the population increases,
the market activities expand and there is a need
to produce more goods and services. Increase in population, age difference and population composition are some of the factors that influence the trade
example
§ Increase in the child
population is a good opportunity for the production of toys
§
The increasing number of elderly people in the country's
population is a challenge for businesses producing children's goods
Economy
of Sri Lanka
Nature of Sri Lanka's economy
Sri Lanka was
a prosperous country in ancient times and when the rulers ran the
administration, the people of the country were able to fulfill their needs and
desires through agriculture. The plantation
training was the opening point of
Sri Lanka's economy which underwent many changes with the arrival of western
nationals in later
years. Since then, there have been certain
and significant changes in economic, social administration, trade and industry
After independence in 1948, various
economic plans were formulated for the economic development of Sri Lanka . With the development of technology,
many new products were introduced in the market through trade. Infrastructure facilities such as highways, electricity, telecommunications, insurance, money and banking spread throughout the
country Expansion of industrial activities resulted in a rapid increase in
revenues from the service sector Not just the domestic market.The main
objective of modern economics is to enter foreign markets and write about the
overall economic growth
Major
Business Sectors Covered by the Economy of Sri Lanka
§ Primary or Primary
1.
This category includes the use of resources from the natural environment in
the same form without any change
2.
The following are some examples of startups.
§ Agricultural, forestry, livestock industry
§ F Fisheries
§ Mining and Mining
§ S Secondary Division
It is the
change in shape, texture and colour of
natural resources obtained from the natural environment and put them for consumption or use of other commercial activities. That
is, the business sector which includes the industry engaged in production
It is of two
types
1. Production (Shoe, Book etc.)
2. Construction (building , bridge etc.)
§ All service providers are called
tertiary trade.
§ Business Wholesale Retail etc.
§ Ancillary services of the business (banking, insurance, transport etc.)
Resources
in abundance in Sri Lanka
In our country, there are abundant
resources that are both used and unused by entrepreneurs in a country. Commercial activities are carried out using man-made resources and
resources obtained from the gathering. These resources can be divided into
two main areas
1. Human Resources
2. Physical Resources
Human
Resources
The manager and other employees engaged in
business activities can be considered as human resources. Human resources are
the sources of maximum benefit from all resources. A high level of writer and ability
to learn education are the special features of Sri Lankan human resources. Identify the best qualities of your human resources and engage them in
business opportunities.
Physical
Resources
This includes
natural resources other than human resources engaged in commercial activities and man-made resources.
The physical
resources are as follows
Waterfalls, rivers, seas, fertile mountains, May
days, shallow seas, forests, seabeds, reefs, biologically diverse ecosystems,
etc.
Mineral resources
Gemstone, marble, limestone, etc.
Cultural Wealth
Historical pictures like Naduvai
Sigiriya like Anuradhapura, leather
goods, sculptures, wood carvings,
paintings, etc.
Natural forests
Sanctuaries like Yala Kumana and
natural forests like Sinharajavanam
Animal Resources
Rare species of animals, birds,
reptiles, etc.
Some of the business opportunities
that may arise due to the exploitation of Mercury resources are given
below
§ Agricultural activity
§ Tourism Industry
§ Department of Ayurvedic
Medicine
Business Ideas and Opportunities
Choosing a business mind
All the
goods, services, activities and products that have arisen in the world today were presented as solutions to the
problems faced by man.
Business Intention Concept
The business
idea is defined as the idea of a business which satisfies human needs and wants
as solutions to environmental problems. Business colour is
important in entrepreneurship as it is the first means of converting the desire and control of the entrepreneur into a business
opportunity.
It is a claim in the
business sector that you can buy "a dozen for ten cents." This shows that business thinking is light. But these are not the colours of business opportunities, and turning them
into business opportunities lies in the hands of entrepreneurs.
1.
Should have the ability to develop the business together
2.
It should be able to meet the needs arising from the environment.
3.
Needs should be able to respond to changes in preferences
4.
Be able to face the competition successfully
5.
Should be technology compatible
6.
The level of risk expected should be minimized.
7.
Income can be earned through the growth of the business together.
8.
Should be able to protect own business ideas
Sources
of business ideas
Business ideas manifest themselves
in various forms, some of the main sources are given below.
§ Through entertainment preference
Human beings have a wide variety of
hobbies like floriculture, painting, ornamental fish farming, photography etc.
§ Through individual energy and
experience
Business ideas arise from the skills
gained by one's occupation and the development of personal skills such as
sports, dancing, singing, etc.
§ Emergence of business attitude
through market research
Market research is done by
enterprise or companies to study the conduct of consumers in relation to goods
and services. Business ideas arise through the needs, wants and reflections of
the consumers
For example: banks provide night services to meet the needs
of their customers.
Through consumer reactions
Enterprise is
good Business ideas arise through the
understanding of the needs, wants and reactions of consumers. Suggestion boxes and reference books are widely used to gauge consumer
feedback.
Example: Changing the menu according to consumer feedback.
Through the power of creative thinking
New ideas to
bring about a change in an existing one or a task emerge through creative
thinking
Eexample: Manufacture of a light equipment that converts steam
into
drinking water when necessary.
By communication device
Business
ideas are also born out of the information and news published by the media.
example: most of the
business ideas are born out of the newspapers and other magazines that appear on the day of the week.
Through the supplier
A person who
is currently running a business can
take advice from their suppliers, companies and persons related to the business and through that they can generate
business ideas.
Through Competition Analysis
Business
ideas are born out of analyzing the performance of competitors
Example: A bank can provide new services to
the market similar to those offered by its competitors. When a bank introduces a new account for pensioners, other banks should follow suit.
Through Academic Courses
Commercial
colours are born out of the knowledge that people have through the subjects
they have
For example, there are people who start businesses with the knowledge and
experience gained at the end of technical college and university courses.
Through exhibition and experience
Participation
in exhibitions and competitions
organized by institutions such as the Chamber of Commerce inculcates business
ideas in
entrepreneurs.
example :Entrepreneurs' Product Exhibitions
Competition for Innovators
Develop a business idea as a business opportunity
The success of a business does not happen in an
instant. It has a long walk. Now we are going to look at the selection of a suitable
business opportunity out of thousands of
business ideas.
Close relationship between entrepreneurship and business.....!
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