Entrepreneurship: definition and characteristics

Opportunity identification is an early entrepreneurial process in which a person observes an unmet need, problem, or demand and considers a useful product or service to address it. The entrepreneur then studies feasibility, resources, customers, and possible risks before acting. Therefore A is correct. B, C, and D describe actions that suppress or damage enterprise rather than identifying a viable opportunity.

Planning gives direction to an entrepreneur. Exam tip: consider planning as guidance for business.

In entrepreneurship, innovation means adopting a new and useful idea, product, service, or method to meet a need or solve a problem. Therefore, option C is correct. Simply copying an old method is not innovation because it lacks novelty. Exam tip: remember innovation as a ‘new and useful improvement’.

An entrepreneur takes calculated risk for possible benefit. Exam tip: understand risk as planned risk.

Starting one's own business is a sign of an entrepreneur. Exam tip: call a business starter an entrepreneur.

Starting work independently shows self-reliance. Exam tip: link entrepreneurship with self-reliance.

Market information helps understand demand and preferences. Exam tip: link market study with planning.

Satisfied customers help business success. Exam tip: connect customer satisfaction with quality.

Communication creates understanding with customers and partners. Exam tip: consider communication an entrepreneurial quality.

Records help understand profit loss and expenses. Exam tip: link financial discipline with entrepreneurship.

Improving quality helps a product or service meet customer expectations more effectively. It increases customer satisfaction, trust, and the likelihood of repeat purchases. Option A is incorrect because quality improvement does not always double costs; better processes can reduce defects and costs. Exam tip: associate quality with customer satisfaction and trust.

Leadership takes the team toward the goal. Exam tip: connect leadership with direction and motivation.

Perseverance helps continue efforts even after failure. Exam tip: remember continuous effort as an entrepreneurial quality.

Improvement according to changing needs is adaptability. Exam tip: link customer feedback with improvement.

An enterprise can create new work and employment. Exam tip: link entrepreneurship with employment generation.

A correct solution cannot be found without understanding the problem. Exam tip: identification is the first step of problem solving.

An entrepreneur shows creativity by developing new, useful and practical ideas, products or solutions to problems. Mere copying is not creativity because it does not involve originality or improvement. Exam tip: associate creativity with innovation and new solutions.

Resourcefulness helps use available means better. Exam tip: remember limited resources and proper use.

Honesty builds trust of customers and society. Exam tip: link honesty with business ethics.

An entrepreneur should make decisions after analysing information about the market, costs, customers and available resources. Such decisions help reduce risk and support planning. Decisions based on rumours or fear are not supported by reliable facts. Exam tip: In entrepreneurship, connect good decision-making with information, analysis and proper planning.