Class 9 Notes

Unit 4 Part B
Entrepreneurial Skills

An entrepreneur is a person who decides to start their own company based on a concept they have or a product
they have developed, taking on the majority of the risks and enjoying the majority of the advantages.
Business – Meaning and Types
A business is described as an ongoing activity in which people engage in economic activity with the intention of
making a profit through the production, sourcing, purchase, and sale of goods and services.
Businesses share the following characteristics regardless of their type, size, scale, or ownership:
Trade-related – Trade-based enterprises are those that primarily involve the buying and selling of goods or
services.
Economic or social motive – Typically, the main goal of most firms is to make a profit. This is why they engage
in economic activities including production, distribution, trade, and expansion.
Presence of an entrepreneur – Every business has a founder who is more than just an entrepreneur. This person
is in charge of taking the initiative to launch, manage, and expand the firm, as well as to make important
decisions and accept the associated risks.
Regular Transactions – A company needs to conduct transactions and deal with customers frequently. Even if a
profit is made, an activity that only involves one transaction in which products and services are exchanged or
transferred cannot necessarily be regarded as a business.
Uncertainty – Every firm is characterized by uncertainty regarding sales, profits, and success. There is no
assurance that the money invested will yield a return or that the company will make a certain quantity of money.

Types of Businesses
There are basically four types of Businesses –
Manufacturing Business – Manufacturing businesses source product s that can be used as raw materials, with
the intention of converting these materials to make an end product.
Service Business – A company that provides services to its clients is known as a service business.
Transportation, cleaning, travel, hospitality, maintenance, and consultation are a few examples of service
business.
Merchandising Business – One of the most common business types is a merchandising company. A company
that buys finished goods and resells them to customers is known as a merchandiser. Think about supermarket or
clothes retailer.
Trading Business – Reselling products is another activity done by a trade company. The distinction between a
trading business and a merchandising business is that a trader is not required to maintain an inventory. For
example Real estate brokers, middlemen, importers, exporters, foreign exchange traders, etc. are a few examples
of trading firms.
Hybrid Business – Combining various organisational patterns to create goods and/or services is what is meant
by a hybrid business model. Businesses have realised that hiring virtual assistants is the most effective approach
to streamline operations, cut expenses, and expand their operations.

Features of Types of Businesses

Types of Businesses in Our Community
Based on size –
Micro Enterprise – A micro enterprise is a business enterprise where the investment in plant and machinery or
equipment is not more than INR 1 crore and turnover does not exceed INR 5 crores.
Small Enterprise – A small enterprise is a business enterprise where the investment in plant and machinery or
equipment is not more than INR 10 crore and turnover does not exceed INR 50 crores.
Medium enterprise – A medium enterprise is a business enterprise where the investment in plant and machinery
or equipment is not more than INR 50 crore and turnover does not exceed INR 250 crores.
Based on legal form –
Sole proprietorship – In a sole proprietorship, the ownership and control of the business is with one single
person, and the liability of the owner is not separate from the entity.
One Person Company – A One Person company also has only one person as a member, who acts in the
capacity of both, a shareholder and a director, but an OPC is legally separate from its owners. There is no threat
on the owner’s personal property in case of unmet liabilities.
Partnership – Partnership is a legal form, where at least two people, or more start a business as co-founders or
co-owners and divide the share as per agreement. The partners are personally liable for an unlimited amount of
liabilities.
Limited Liability Partnership – In a Limited Liability Partnership, there are two or more partners. In this, no
one single partner or owner is individually responsible for any other partner’s or member’s negligence or
misconduct or liability.
Company – A company is defined as a legal entity formed to get engaged in business, by a group of individuals.
Usually, these individuals have limited liability, and the capital in units of equal value of a company are called
‘shares’. Company can be public or private.

Based on sector –
Primary sector – Businesses that extract, retrieve, harvest, and produce raw materials using earth-based natural
resources are included in this category. Coal, wood, wheat, iron, corn, and other raw commodities are some
examples. Mining, agriculture, fishing, horticulture, and other core sectors are examples.
Secondary sector – The conversion of raw materials into finished items is the primary activity of enterprises in
this industry. It organises all manufacturing variables using primary sector items to create both utility and
luxurious goods.
Tertiary sector – This sector is defined by provision of services to businesses and customers. It is completely
based on a service and there is no production of goods involved.
Objectives of Entrepreneurship Development
Some of the core objectives of entrepreneurship development include:
1. Assisting entrepreneurs in undergoing the process of entrepreneurship.
2. Handholding budding entrepreneurs to recognize and design unique business opportunities.
3. Helping aspiring entrepreneurs start and grow dynamic businesses that provide high value add.
4. Developing the motivational needs of entrepreneurs.
5. Training entrepreneurs to develop the required skills and gain knowledge for running and
managing a new business.
6. Providing support to entrepreneurs for effective business planning
7. Accelerating and incubating new ideas.
8. Aiding in the availability of technology or raw material.
9. Creating adequate infrastructure for entrepreneurial activities.
10. Providing financial assistance from banks and other financial institutions.
11. Enabling a suitable entrepreneurship ecosystem and business environment.
12. Implementing norms, policies and rules for establishment of new ventures and enterprises.
13. Providing tax benefits, incentives, subsidies etc. for creation of new enterprises.
14. Encouraging research and development across industries

Phases of Entrepreneurship Development

Stimulatory phase
Stimulatory phase involves stimulating or generating need, interest, motivation and awareness among individuals
to become entrepreneurs. It is done by orienting them towards the meaning, process, benefits and practice of
entrepreneurship.
Support phase
The support phase involves helping new businesses with their varied activities through mentoring, incubating,
funding, and counselling the entrepreneurs. Some of these actions include choosing a business strategy, creating
a prototype or product, registering a company legally, consulting on management issues, providing money,
providing a building and power, choosing the right equipment and plant, obtaining licences and permissions, etc.
Sustenance phase
The goal of the maintenance phase is to aid businesses in making expansion plans. Strategies for growth,
expansion, diversification, modernization, etc. are all given guidance. Additionally, assistance is provided in the
form of research and development, additional funding, market research, etc.
Challenges of Entrepreneurship Development
 Lack of continued motivation
 Lack of formal education
 Low technical knowledge
 Absence of managerial skills
 Inadequate infrastructure and resources
 Lack of finance availability
 Lack of awareness about entrepreneurship schemes
 Strict regulatory framework
 Low margin market linkages

Entrepreneurship – Characteristics, Role and Rewards

Characteristics of Entrepreneurship
Innovation
innovation can be understood as creative use of one’s ideas to propose a solution that introduces something
unique or new to the world. There are many types of innovation such as product, process, disruptive etc.
Dynamic Economic Activity
Entrepreneurship involves creation of value or wealth through a business enterprise, that buys and sells
commodities/product/services and uses resources optimally.
Risk bearing
When putting certain decisions and ideas into practise, entrepreneurs must take risks. Businesses can anticipate
certain risks, such supply constraints, rising raw material costs, price volatility, shifts in governmental laws, etc.
Potential For Profit
“Profit potential is the likely level of return or compensation to the entrepreneur for taking on the risk of
developing an idea into an actual business venture.” For a commercial entrepreneur, profit is usually the main
goal.
Entrepreneur Vs. Entrepreneurship Vs. Enterprise – Characteristics
Role of Entrepreneurship
Capital Formation – Entrepreneurship leads to value addition and creation of wealth, because entrepreneurs
promote capital formation by mobilising the idle savings of public.
Employment Generation – Increased entrepreneurial activity has the potential to lead to more prospects for
large-scale employment. Numerous employment opportunities for skilled, unskilled, and jobless people are
produced as more firms, offices, factories, trade entities, etc. are established, especially in emerging nations.
Balanced Regional Development – Entrepreneurship helps to remove regional disparities
through setting up of industries in less developed and backward areas. Micro businesses and cottage industries
also play a role in increasing entrepreneurial activity in many specific cultural regions.
Value Creation – Value creation happens when a client base recognizes a product or service as having more
value and a firm makes money by selling the good or service to satisfy the customer’s requirements and wants.
Wealth Distribution – Due to entrepreneurship and transaction-based activities, wealth and income are
distributed among people and regions. Salary payments are made to employees, suppliers are compensated for
their supplies, commodities are sold in a variety of markets, large-scale services are rendered, etc.
Industrialization and Development – If a business is established in an area and is perceived as a lucrative
prospect, it is possible that other people will be inspired to establish businesses of a similar nature.

Rewards of Entrepreneurship
Economic development – The most effective use of resources, the development of new concepts, wealth
creation, constant money flow, skill development, etc. are some characteristics of economic development. These
aspects are all made possible by entrepreneurship and are crucial for a country’s economic growth.
Enterprise and Business Creation – Entrepreneurship has a direct impact on the growth of businesses.
By merging and coordinating various resources, including human, financial, physical, and intellectual capital, as
well as entrepreneurial aptitudes like risk-taking, creativity, leadership, and resource management.
Capacity Building – As an entrepreneur spends in educating staff members and enhancing their managerial
skills, skill development and training is a big benefit of becoming an entrepreneur. Similar to this, an
entrepreneur also improves his or her own skills by resolving issues, making choices, accepting setbacks, trying
out other strategies, etc.
Improved Standard of Living – Customers have various options when choosing from a variety of goods and
services to fulfil the same need thanks to entrepreneurship. Higher standards of life are a result of the diversity
and accessibility of better goods and services provided by businesses.
 Class 9 Notes
Unit 5: Green Skills

We cannot imagine our lives without the environment around us. Everything that surrounds us
comprises Environment – Living beings, flora and fauna, non-living things, the vegetation,
climate, natural resources.
Relationship Between Society and Environment
The society constitutes of group of people living together in a community, a village, a city, a
town, a states or a country. It is these group of people with their own set of ideologies and
beliefs that affects the environment. If a group of people believe that rivers are sacred, then all
people belonging to that group will resonate the practices that support their belief.
If a group of people believe that killing of animals is a heinous crime, the people in that
community will reflect it in their behavior shaping their relationship. But, if a group of people is
greedy and is concerned to accumulate wealth, their actions will echo their mind-set and will
have adverse effect on the environment.
Ecosystem and Factors Causing Imbalance
When an ecosystem’s natural balance is disturbed by a natural or artificial disturbance,
ecological complications that may arise. Ecological imbalance is directly related to human
activity.
Following are the man-made disruption that causes ecological imbalance:
Deforestation – Due to increase in population the need for building houses has emerged. To
overcome this challenge more and more houses are built in hilly regions due to which trees
are cut. Also, in order to maintain the life style a lot of forests have been cut. Due to shifting
climatic circumstances, many species of birds and other creatures are in danger of going
extinct.
Degradation of Land and Soil Erosion – Deforestation has also given rise to problems like
soil erosion and degrading quality of land. The poor quality of land and soil is resulting in rising
health concerns for human beings. It is also leading to problems for herbivorous animals
causing concerns of their extinction.
Overexploitation of Resources – To satisfy our needs, we are not only using the resources
available to us but we are exploiting them as well. We are great tons of waste due to over
usage of resources making it difficult for our ownselves to breathe fresh air. The
overexploitation of resources is also one of the factors adding to degradation of land in urban
cities.
Industrial and Atmospheric Pollution – The rising number of industries is one of the major
concerns these days. The pollution caused by these industries and factories is not limited to
air. The presence of the industries near the rivers to dispose the waste is causing water
pollution.

Faulty Mining Practices – Large-scale mining has led to the conversion of forests and
agricultural areas into stockyards, roadways, and other infrastructure. Additionally, mining dust
is deteriorating. factors affecting the ecosystem disrupt the balance of the air around us. Land
degradation is a result of improper disposal of mining waste. Poor mining techniques have a
serious impact on human health.
Natural Resource Conservation
Air, Water, Land, and Energy are the four main categories of natural resources. Conservation
of these resources is the top priority in the current climate, when pollution levels have
increased to the point of posing health risks.
Air Conservation – The conservation of air is the protection and cleaning of the earth’s air
supply. Air pollution can be caused by any number of sources, including transportation, power
plants, and factories. This pollution can cause a number of health problems, so it is important
to practice air conservation when possible.
Water Conservation – Scarcity of Water has caused International agencies to act
immediately.
Wisely using the water is need of the hour. Adopting Rain Water Harvesting Systems in our
communities and waste water treatment plants shall contribute in conserving water for future
generations.
Land Conservation – : Conserving land means to act at two levels. First, promoting
afforestation
and discouraging deforestation for material benefit. This will help promote other life forms to
survive
and help to maintain balance in the eco system. Second, improving the quality of soil, most of
the
health concerns today are due to poor quality of food.
Energy Conservation – : We use a lot of non-renewable sources of energy to fulfil our daily
needs.
Conservation of Energy means to conserve these resources and use alternative sources of
energy to
meet our needs such as wind, solar, wave energy.
Green Economy and Its Importance
The green economy will help preserve resources for both the current and the next generation,
while also ensuring that new employment and investment opportunities are developed to
support the nation’s economic progress. Future-ready will be a green economy. Less health
issues will be seen in a green economy, which will also encourage healthy lifestyles and the
usage of cutting-edge technologies. Such an economy will be self-sufficient and independent.
But creating such an economy will require work on all fronts.