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CBSE Class 12 Commerce Entrepreneurship Problem Solving

CBSE Class 12 Commerce Entrepreneurship Problem Solving

CBSE Class 12 Commerce Entrepreneurship Problem Solving

CBSE Class 12 Commerce Entrepreneurship Problem Solving : Entrepreneurship has traditionally been defined as the process of designing, launching and running a new business, which typically begins as a small business, such as a startup company, offering a product, process or service for sale or hire. The people who create these businesses are called entrepreneurs. It has been defined as the “capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit”. 

While definitions of entrepreneurship typically focus on the launching and running of businesses, due to the high risks involved in launching a start-up, a significant proportion of businesses have to close, due to “lack of funding, bad business decisions, an economic crisis – or a combination of all of these” or due to lack of market demand. In the 2000s, the definition of “entrepreneurship” expanded to explain how and why some individuals (or teams) identify opportunities, evaluate them as viable and then decide to exploit them, whereas others do not and, in turn, how entrepreneurs use these opportunities to develop new products or services, launch new firms or even new industries and create wealth. 

CBSE Class 12 Commerce Entrepreneurship Problem Solving

Recent advances stress the fundamentally uncertain nature of the entrepreneurial process, because although opportunities exist their existence cannot be discovered or identified prior to their actualization into profits. What appears as a real opportunity ex ante might actually be a non-opportunity or one that cannot be actualized by entrepreneurs lacking the necessary business skills, financial or social capital.

CBSE Class 12 Commerce Entrepreneurship Problem Solving

Entrepreneurs are nothing other than problem solvers for humanity. Their stock in trade is creatively thinking up solutions to the problems plaguing the world. This unusual burden is the essence of entrepreneurship. To successfully carry out this task, as entrepreneurs we must first understand fully the nature of what we are up against – problems.

A problem is a gap between where you are and where you want to be, with obstacles existing that prevent easy movement to close the gap.

A problem is a roadblock in a situation, something that sets up a conflict and forces you to find a solution. When an entrepreneur identifies such a road block, he/she is said to have identified the problem. Objectives of problem identification:

  • It should clearly state the problem
  • Identify target group facing the problem

CBSE Class 12 Commerce Entrepreneurship Problem Solving

Find the market acceptability of the solution to the problem Uses of problem Identification It helps the entrepreneur to:

1. Bring out new products in the market

2. Understand the problems and needs of the market

3. Be creative 4. Increase employment generation

4. Increase national income (of the country) For example, in our everyday lives, we face a number of problems for which we wish sometimes for instant solutions. If we look carefully, there is an array of instant food products flooding the market on a daily basis. Some of them are very successful, the reason being that, the younger generation is highly career–oriented and does not have time to cook.

If you find problem-solving to be energizing, you could be the next great entrepreneur. On the other hand, if facing unforeseen problems annoys you and causes ongoing stress, don’t quit your day job. Creating an innovative new business is guaranteed to test your skills, patience and determination, and you need to derive satisfaction from the journey, as well as the destination.

CBSE Class 12 Commerce Entrepreneurship Problem Solving

Tips for aspiring entrepreneurs

If you’re ready to enter the world of entrepreneurship, here are five important tips from experts to keep in mind.

Learn from others’ failures : Rather than admiring the small percentage of businesses that grow to become successful, study those that end up failing. Gottlieb said this research would greatly increase your chances of success, because most companies have made common mistakes that have led to their demise. He said that having the humility to learn from the mistakes of others before making them yourself is the secret to success.

Make sure this is what you want : Because entrepreneurship entails so much hard work, it is critical to ensure you’re following the right path, said Elizabeth Amini, CEO and co-founder of Anti-Aging Games LLC, a company that develops online games to train memory and focus. “If this is something you really want, then think long term, and be persistent,” she said. “The vast majority of great entrepreneurs failed multiple times before they finally found the business idea that took off and brought them success.”

Solve problems : Entrepreneurs should always be in search of problems to solve and not the other way around, said Ajay Bam, a lecturer in entrepreneurship and innovation at the University of California, Berkeley’s Haas School of Business. In other words, “they should not start with a solution looking for a problem,” he said.

Be passionate : Successful entrepreneurs are driven primarily by a need for achievement and the desire to make a meaningful difference, Bachenheimer said. “The most important traits are passion and persistence, but these must not be confused with arrogance and stubbornness,” he said.

Get advice from those who have done it : Amini advised would-be business owners to find mentors who are successful, in addition to reading books, networking with people they admire and looking into great education programs to help them throughout the process. 

CBSE Class 12 Commerce Entrepreneurship Problem Solving

Contrary to a popular myth, problem-solving is a talent that can be developed. To do it well requires a focus on several key activities and practices, including the following:

1. Maintain a positive attitude, since startup problems are normal.

If you feel angry or exhibit a negative attitude to the team about problems, you will jeopardize the potential success of your startup. Successful problem-solving is often more a state of mind than any particular skill or process.

2. Remember that learning requires listening more than talking.

The first challenge for many aspiring entrepreneurs is to put aside their passionate advocacy long enough to acknowledge an existing problem. That means practicing non-defensive listening to key advisors, team members and customers. You can’t solve a problem if you don’t see one.

3. Openly communicate about each problem and commit to fix it.

Entrepreneurs who solve problems well don’t hide them from their teams or make excuses and publicly take responsibility for a timely resolution. It’s smart to outline initial actions, but not so smart to promise any specific solution until you have had time to investigate the source.

4. Don’t hesitate to call in an experienced advisor or mentor to help.

Very few startup problems are unique. An experienced advisor, board member or investor has seen them all. You can save yourself countless hours of frustration and failed efforts by swallowing your pride, asking for help and following expert suggestions.

5. Follow a disciplined analysis before jumping to conclusions.

Make sure you have all the facts, as well as insights from relevant sources and outside experts. Don’t let your passions and emotions drive you to a quick judgment, and remember that there are always at least two sides to every question. Practice active listening to get all input.

6. Track every problem.

Problems become crises when affected people hear nothing or sense that no attention is being paid to the issue. Thus a visible system is required for reporting to all relevant parties, which also keeps your focus on the problem until it is resolved.

7. Set deadlines and measure and pay for performance.

Remember the old adage that you get what you pay for. If everyone is incented to find new customers, there will be little focus on resolving problems with current ones. Make sure there are metrics for problem counts, resolution time and revenue impact.

8. Analyze issues to prevent similar problems.

Usually it pays to dig deeper on lost sales opportunities and negative customer reviews to resolve a deep-seated product deficiency or delivery channel issue. Make sure processes are updated, training is improved or priorities are communicated as required. 

The best entrepreneurs understand that solving problems is what a business is all about. Of course, problem-solving is required for scaling and continued business growth. It never ends.

Thus every aspiring entrepreneur needs to develop a problem-solving mindset, and learn to enjoy both the problem and the solution. That mindset will help you develop and survive as a person as well, and build better organizations and communities.

Entrepreneurial actions are efforts to solve problems for others. Therefore, entrepreneurs are Problem Solvers. When one solves a problem a new value is created. In the business world, problem solvers take risks, but often create value by solving a customer or
market problem, which is the key to creating a profitable enterprise. The more or larger problems an entrepreneurial organization solves, the more profit it can generate.

CBSE Class 12 Commerce Entrepreneurship Problem Solving

Solving Problems to Meet the Needs and Wants of People:
Most entrepreneurial ventures have survived when they solve problems of people, understanding their needs and accordingly changing the product to their needs. Study the following examples:

The Story of Kellogg: In 1894, Dr. John Harvey Kellogg was superintendent of a famous hospital and health spa in Battle Creek, Michigan. His younger brother, Will Keith Kellogg, was the business manager. The hospital stressed healthful living and kept its patients on a diet that eliminated caffeine, meat, alcohol and tobacco.

The brothers invented many foods that were made from grains, including a coffee substitute and a type of granola, which they forced through rollers and rolled into long sheets of dough.

One day, after cooking some wheat, the men were called away. When they finally returned, the wheat had become stale. They decided to force the tempered grain through the rollers anyway. Surprisingly, the grain did not come out in long sheets of dough. Instead, each wheat berry was flattened and came out as a thin flake. The brothers baked the flakes and were delighted with their new invention.

They realized that they have discovered a new and delicious cereal, but they had no way of knowing that they had accidentally invented a whole new industry. Will Keith Kellogg eventually opened his own cereal business and its most famous product is still sold today. It wasn‘t until 1906 that Kellogg‟s Corn Flakes were made available to the general public.

CBSE Class 12 Commerce Entrepreneurship Problem Solving

To download CBSE Class 12 Commerce Entrepreneurship Problem Solving syllabus check here CBSE Class 12 Commerce Entrepreneurship syllabus

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