Short question answers

Course Title: Entrepreneurship and Small Business

Development
Course code: BA 3103

Submitted to Submitted by
Arifuzzaman Khan Dhriti Roy
Adjunct Faculty ID: 20181027101
Department of Business 3rd year 1st semester
Administration, Khulna

North Western University, Khulna

1. Rashid has recently started a small grocery in his locality. Now, explain the

Factors those might be responsible for his success-failure in this business.

Answer:

Thing that might be responsible for his success

1. Good amount of funding

2. Choosing a good market
3. Less competition
4. Political stability
5. Good business plan
6. Proper market analysis

Things that might be responsible for his failure

1. Lack of funding
2. Too much compition
3. Setting up business in a wrong place
4. Political instability
5. Natural disaster
6. Customers behavior

2. Suppose you have started a new department store/super shop in your locality.

Now, explain the external environmental forces you might have to face while

Operating the shop?

External factors primarily include the factors that are out of your control. Irrespective of

the kind of business you are carrying out, these factors are going to affect your business at some
point or the other.

While operating my department store/super shop I might face the following external forces:-
● Changing Government policies

When there is a change in any Government policy related to business, I will have

to make sure that I also adjust my business operations accordingly.

● Competition from other similar businesses

The department store/super shop that I am opening up is bound to face

Competition from other similar department stores/super shops. In such a case, I

Will have to make sure that my business betters its operations as compared to

My competitors.

● Suppliers

Suppliers will automatically tend to have a prominent impact on my costs.

Therefore, to make my business succeed, I will have to make sure that my

Suppliers provide me with the best quality products at lower costs.

● Changing customer preferences

Customer preferences tend to change overtime. They are highly dynamic. I will

Make sure that my business caters to those changing needs and wants of my

Potential customers.

3. Suppose Sadiq, a recent business graduate from NWU, has decided to start his

own enterprise instead of applying for any job. Now, analyze different types of

risks he must take to be an entrepreneur.

It is quite obvious that as an entrepreneur Sadiq will have to face many risks. Setting up a new
business thereby establishing him as an entrepreneur will require him to take up
these risks and operate his business accordingly. Let's have a look at those risks.

● Technological risks

With the ever changing technological era, Sadiq will have to make sure that his

enterprise caters to the technologically changing environment. Non-compliance

to this will make his enterprise an outdated one. He also need to properly assess

and analyse what technological changes might occur in the coming times.

● Competitive risks

Competition occurs because there are other established businesses that offer

customers the same products. In such a scenario, Sadiq would have to make

sure that he sells his products at prices that can enable him to face his

competitors without hampering his own profit earning.

● Economical risks

Inflation, deflation, periods of boom (prosperity), periods of stagnation or

depression fall under the category of economical risks.

● Political risks

These involve the dynamic political landscape that brings changes in various

business related laws and regulations.

● Financial risks

Financial risks basically involve the downfall of corporate finances. Such risks

can be detrimental to a business's performance. Therefore, having a good and

credible sense of financial awareness is needed to tackle such risks.

4. Conventionally, an entrepreneur possesses a different set of characteristics than

a random person. How are the entrepreneurs different from other groups of

people?

Entrepreneurship is a different profession altogether. Unlike regular jobs that are safe in nature,
entrepreneurship holds a variety of risks that the entrepreneur has to face. It is quite obvious that
an entrepreneur holds a variety of characteristics that are usually not to be found in other groups
of people.

An entrepreneur serves as a leader or initiator to the enterprise that he starts up to

provide service to the society. His willingness and determination to convert his ideas into reality
is what makes him/her different from others. With the capability to take up risks that might let him
incur losses and still not giving up is a rare quality that is found only in entrepreneurs.

An entrepreneur is the owner of his/her enterprise. He/she has complete authority over the people
(managers) who are working under him. As we know that the prime objective of managers is to
perform the task at hand in the most efficient manner along with taking certain managerial
decisions, but on the other hand, the prime objective of an entrepreneur is the smooth running of
his/her enterprise's business operations along with its expansion.

5. Briefly explain the differences among sole proprietorship, partnership and

Corporation

Among the various kinds of business models that are present, sole proprietorship,

Partnership and corporation are the most common ones. The businesses that we see

Around ourselves usually fall into any one of the above-mentioned categories. Let’s have
a look at the features that differentiate them from one another.

Sole proprietorship

A sole proprietorship refers to an organization that has no legal entity. It does not exist

with its sole owner. In general, a sole proprietorship firm can be defined as a business

unit that is owned by a person. That single person is solely responsible for the profits of his firm,
and solely liable to any debts of the firm.

Partnership

In simple words, partnership refers to two or more people coming together and agreeing

to do business together and sharing profits amongst themselves. Similar to sole

Proprietorship, even in partnership firms, the law does not distinguish between the

Company and its owners. However, in partnership firms, it is needed that the partners

have a legal agreement specifying the ratio of profit sharing and other elements of

Decision making.

Corporation

A company or a corporation, unlike sole proprietorship and partnership firms, holds a legal entity
of its own. A company or corporation is regarded under the law

that is separate from its owners. It is an artificial person under the law and likewise has its own
rights and responsibilities.