N.B. (1) All questions in Section 1 are compulsory.
(2) Answer any three questions from Section 2.
(3) Answer Section 1 and 2 together.
(4) Support your answers with relevant examples.
(1) Explain in brief: (10)
(a) Role of culture in Development of Entrepreneurship
(b) Psychic Risk
(c) Change in lifestyle
(d) Entrepreneurial motivation
(e) Working capital management
(2) Case Study:
Feel-Safe Elevators Private Limited was a company setup by four entrepreneurs, who left a leading elevator organization to achieve their goals.
In an industry like elevators, customer-service is of prime importance. High rise building occupants suffer if the maintenance and service of elevators are not proper. At the same time, technicians, service mechanics have a safety dimension. They get affected from due to risky nature of job. Many a times, the operation of the elevator is not proper because the service mechanic fears the safety and does not reach out unsafety located parts of the elevator.
Contract labour, exploitation and sub-standard material are the business practices committed by unscrupulous service and maintenance agencies. However, Feel-Safe Elevators Private Limited decided that they would build their organization on proper ethics and morals to keep the established practices away.
A service which could turn fatal for passengers as well as technicians had to be provided on a solid moral ground and ethics. Hence, the group set about the 4-way test, that of truth, justice, friendliness and helpfulness to others. Within a short span, name of Feel-Safe was an across suburbs and interiors because of the practices and name-sake proving real.
Now, the group is doing a turnover of Rs. 30.00 crores and the funded equity of the promoters stands at Rs. 5.00 crores. Very recently, it has been approached by a German elevator manufacturer, who has offered to buy the equity of promoters and requested the promoters to run the company as before.
Salary, perquisites and incentives are much more than the Entrepreneurial benefits, so far. However, the philosophy of Feel-Safe would have to change. The 4-way test would soon be replaced by competitive and contemporary philosophy of opportunism.
Nevertheless, the promoters can make merry with Rs. 1.25 crores each simply by compromising their own philosophy, allowing exploitation of labour, living off staff and substituting the same with contract labour. All that it would need is accepting change.
You are now being approached to advise them on following:
(a) Can they give up the ethics and morals, responsible for business growth, for personal benefit? (5)
(b) In today’s context, where competition, outsourcing and profiteering are prevalent, are the practices of promoters the right practices? In case, the company continues to remain with promoters, what change should the promoters pursue? (5)
(c) If the promoters accept the offer from the German manufacturer, what would be their status? Do you think such change in status is possible? Quote a few examples. (5)
(d) Entrepreneurship is a child sized by entrepreneur. So giving away the child for personal benefit may not fulfill obligations of entrepreneurship. Comment. (5)
(3) What is a Sectoral study? In your opinion, which sectors can be expected to do well in future? (10)
(4) Why is Innovativeness important in Entrepreneurship? Describe a few ways to promote innovativeness in an organization (10)
(5) Contribution to Indian economy has to come from entrepreneurial achievements. Evaluate the statement, signifying the role of Entrepreneurship. (10)
(6) “Reverse migration of labour can be achieved through Entrepreneurship.” How? (10)
(7) Short notes on (any two):
(a) Idea Generation
(b) Opportunities in service sector
(c) Economic benefits for a location