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List The Ways in Which An Entrepreneur Affects A Society: Unit 4 Entrepreneurial Skills

An entrepreneur affects society in several ways: 1. They create jobs as their business grows and needs more employees. This lowers unemployment. 2. As the business succeeds, wealth is shared with employees and others in related businesses who have more money to live comfortably. 3. When more entrepreneurs offer the same product, competition increases and prices lower, benefiting consumers. The most important function of an entrepreneur is making decisions for all aspects of running the business from production and sales to managing operations and finances. They take on risks that employees do not. Entrepreneurship allows more control over one's time and potential for greater financial returns compared to wage employment which offers a fixed salary but less

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3K views2 pages

List The Ways in Which An Entrepreneur Affects A Society: Unit 4 Entrepreneurial Skills

An entrepreneur affects society in several ways: 1. They create jobs as their business grows and needs more employees. This lowers unemployment. 2. As the business succeeds, wealth is shared with employees and others in related businesses who have more money to live comfortably. 3. When more entrepreneurs offer the same product, competition increases and prices lower, benefiting consumers. The most important function of an entrepreneur is making decisions for all aspects of running the business from production and sales to managing operations and finances. They take on risks that employees do not. Entrepreneurship allows more control over one's time and potential for greater financial returns compared to wage employment which offers a fixed salary but less

Uploaded by

Sai Santhosh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Unit 4 Entrepreneurial Skills

1. List the ways in which an entrepreneur affects a society


Ans:
a) Create Jobs : With the growth of a business, entrepreneurs look for
more people to help them. They buy more material from more people. They
also hire more people to work for them. Thus, they create employment.

b) Sharing of Wealth : Wealth means having enough money to live a


comfortable life. As entrepreneurs grow their business, the people working
for them and in their related businesses also grow. Hey will have more
money to live a better quality life.

c) Lower Price of Products : As more entrepreneurs sell the same


product, the price of the product goes down. For example, when more mobile
phones were getting sold in India, the cost of the phone became lesser

2. What do you think is the most important function of an entrepreneur? Write


your answer giving suitable examples

DECISIONS: An entrepreneur makes decisions everyday. This includes what


to produce or sell, how much and where to sell.

MANAGING THE BUSINESS: An entrepreneur plans the future of his or her


business. He/she arranges for raw material, hires people for work and tells
everyone what to do. They also check if the plan is being followed.

DIVIDE INCOME: The entrepreneur divides the business money to many


groups. He/she spends money to buy material, pays rent of the building and
salaries to people.

TAKING RISK: Risk is the chance of something going wrong. An


entrepreneur takes risks against fires, lost items and theft.

CREATE A NEW METHOD, IDEA OR PRODUCT: An entrepreneur is always


trying new things. He/she does this to increase their importance and
income
3. What is the difference between a misconception and reality? Give an example.
Ans: Misconception is a view or opinion that is incorrect because based on
faulty thinking or understanding where as Reality is the state of things as they
actually exist.
Example:
Misconception 1
Every business idea needs to be unique or special.

Reality
A person can take an idea that is already there in the market and do something
different with it.

4. What is the difference between entrepreneurship and wage employment? Which


is better as a life choice?

Wage Employment Entrepreneurship


Work for others Own boss
Follow instructions Make own plans
Routine job Creative activity
Earning is fixed, never Can be negative sometimes,
negative generally surplus
Does not create wealth Creates wealth, contributes to GDP

For those who are driven, who want to take on a challenge, want more control of
their time and money, and thrive in the excitement of building their own future,
taking the entrepreneurial path may be the best choice.
If you like to play it safe, reduce stress in your life, and find passion in personal
endeavours, employment may be your best option.

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