Types of Entrepreneurs Text Book Solutions

Dear Class 12 Samacheer Kalvi students, here are the text book solutions for Chapter 24, Types of Entrepreneurs in Commerce for your reference.

I. Choose the Correct Answers:

II. Very Short Answer Questions:

1. What is the other name of business entrepreneur?

Business entrepreneur is called solo entrepreneur.

2. Mention the other name for corporate entrepreneur.

Corporate entrepreneur is called promoter.

3. Who are agricultural entrepreneurs?

Agricultural entrepreneurs are those entrepreneurs who raise farm products and market them.

4. Give some examples of pure entrepreneurs.

Dhirubai Ambani, Jamshadji Tata, T.V. Sundaram Iyengar, Seshadriji, Birla, Narayanamurthi, Aziz Premji are some examples of pure entrepreneurs.

III. Short Answer Questions:

1. Who is a private entrepreneur?

Ventures started by individual either singly or collectively at their own risk after mobilising various resources in order to earn profit are called private entrepreneurship.

2. Explain about the imitative entrepreneur.

Imitative entrepreneur is one who simply imitates existing skill, knowledge or technology already in place in advanced countries. A simple redesign of the products developed in advanced countries to produce a version suited to their local conditions. For example, many electronic products invented in advanced countries are simply reengineered in developing countries. Similarly expensive medicines developed in advanced countries are simply reengineered by changing the composition of elements or changing the process of production.

3. Write about Fabian entrepreneur.

These entrepreneurs are said to be conservatives and sceptical about plasticising any change in their organisation. They are of risk-averse type. They do not simply change to the changes happening in the environment. But they adapt themselves to the changes only as a last resort when they fear that non adaptability to changes will inevitably lead to loss or collapse of the enterprise. Their dealings are governed by customs, religion, tradition and past practices handed down to them by their ancestors. They would like to follow in the footsteps of predecessors. Example; Narasus coffee

IV. Long Answer Questions:

1. Explain in detail on classification according to the type of business. (any 5)

1. Business Entrepreneur

Business entrepreneur is called solo entrepreneur. He is the one who conceives an idea for a new product/service and establishes a business enterprise to translate his idea into reality. He/she may establish small or large enterprise to commercially exploit his/he idea. He/she takes up production, operations and pursues marketing activities.

2. Trading Entrepreneur

Trading entrepreneurs are those who restrict themselves to buying and selling finished goods. They may be engaged in domestic and international trade. Their core strength lies in distribution and marketing. They get their income by way of commission and marketing.

3. Industrial Entrepreneur

These are entrepreneurs who manufacture products to cater to the needs of consuming public after identifying the need left unfulfilled by the manufacturer hitherto. They may be small, medium and large entrepreneurs. Industrial entrepreneurs mobilise the resources of various types and create an entity to manufacture the products or service. They add utility to products rolled out by them which is termed as value addition.

4. Retail Entrepreneurs

Retail entrepreneurs are those who enter into venture of distributing the end-product to final consumer while wholesale entrepreneurs take up the venture of distributing the product to retailer. They used to buy the goods in small quantities from numerous wholesalers and make it available different products of different brands under one roof to end consumer.

5. Service Entrepreneurs

Service entrepreneurs enter into the venture of supplying service products to end consumers. Hoteliers, airlines, banking, insurance and financial service providers, repair service organisation, bus operators, train service, advisory organisation, advertising firms, manpower supplier etc., come under service entrepreneur’s category.

2. Discuss the nature of functional entrepreneurs.       

1. Innovating Entrepreneur

Innovative entrepreneur is one who is always focussed on introducing a new project or introducing something new in the venture already started. They constantly observe the environment around them; collect information and analyse them in order to contribute something a new in the venture. Their innovation may take the form of brand new product, upgraded product, discovering untapped market, new method of production, reengineering of existing product, new method of distribution of product, simplification of complex process, adoption of a distinct process and so on.

2. Imitative Entrepreneur

Imitative entrepreneur is one who simply imitates existing skill, knowledge or technology already in place in advanced countries. A simply redesign of the products developed in advanced countries to produce a version suited to their local conditions. For example, many electronic products invented in advanced countries are simply reengineered in developing countries. Similarly expensive medicines developed in advanced countries are simply reengineered by changing the composition of elements or changing the process of production.

3. Fabian Entrepreneur

These entrepreneurs are said to be conservatives and sceptical about plasticising any change in their organisation. They are of risk-averse type. They do not simply change to the changes happening in the environment. But they adapt themselves to the changes only as a last resort when they fear that non adaptability to changes will inevitably lead to loss or collapse of the enterprise. Their dealings are governed by customs, religion, tradition and past practices handed down to them by their ancestors. They would like to follow in the footsteps of predecessors. Example; Narasus coffee

4. Drone Entrepreneur

Drone entrepreneurs are those who are totally opposed to changes unfolding in the environment. They used to operate in the niche market. They are similar to fabian entrepreneur in doggedly pursuing their conventional practices. The main difference between fabianentrepreneur and drone entrepreneur lies in the fact that while fabian entrepreneur adapts to changes eventually as a last resort, drone entrepreneur never adapts himself or herself to change, Example; Gopal Tooth powder.