Entrepreneurship - Class 12 Biotechnology - Chapter 13 - Notes, NCERT Solutions & Extra Questions
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Extra Questions - Entrepreneurship | NCERT | Biotechnology | Class 12
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Define the term ‘entrepreneurship’. Describe its importance.
Entrepreneurship is the process by which individuals pursue opportunities without regard to the resources they currently control. It involves identifying a business opportunity, organizing the necessary resources, and assuming the associated risks and rewards. The importance of entrepreneurship includes stimulating economic growth by creating new jobs and businesses, fostering innovation and efficiency, and driving competitive markets. Additionally, entrepreneurs contribute to society by improving products and services, increasing productivity, and addressing societal needs in creative and effective ways. Their ventures often result in increased wealth and improved standards of living, making entrepreneurship a critical force in economic and social development.
What are the qualities of an entrepreneur?
Entrepreneurs embody a set of distinct qualities that contribute to their success:
1. Initiative: Entrepreneurs are innovators who take the necessary action to launch new ventures, facing the challenges head-on.
2. Knowledge and Skill: They possess deep insights into the industry, understanding market trends, consumer preferences, and technological advancements.
3. Risk-Taking: Entrepreneurs willingly embrace the uncertainties associated with their ventures, driven by the prospects of long-term success.
4. Adaptability: They are flexible and adjust strategies in response to changing business environments.
5. Self-Confidence: A strong belief in their decisions and actions characterizes successful entrepreneurs, fueling their willingness to take risks.
6. Wealth Creation: They contribute to economic growth by turning innovative ideas into profitable businesses, creating jobs and enhancing societal wealth.
Differentiate between entrepreneur and intrapreneur.
Aspect | Entrepreneur | Intrapreneur |
---|---|---|
Risk and Investment | Takes on substantial financial risk by investing personal or external funds. | Utilizes company resources; minimal personal financial risk involved. |
Autonomy | High autonomy in decisions and actions. | Operates under corporate policies and management hierarchy. |
Rewards and Returns | Stands to gain directly from profits and growth; also bears losses. | May receive bonuses or promotions, but does not directly gain from profits. |
Resource Access | Must secure own resources and capital. | Has access to company resources, networks, and capabilities. |
Innovation Scope | Often aims to introduce a new product, service, or enter new markets. | Focuses on innovation within the company’s existing framework. |
What are the steps of preparing a feasibility report?
When preparing a feasibility report for a new business idea, the following steps should be taken:
- Conduct a Preliminary Analysis: Screen the project idea to identify potential obstacles or validate the concept before progressing further.
- Prepare a Projected Income Statement: Estimate financial outcomes including direct and indirect costs, and revenue projections.
- Conduct a Market Survey: Define the market area, analyze environmental and competitive factors, assess potential market share, and identify expansion opportunities.
- Plan Business Organization and Operation: Design the operational structure and identify technical and resource requirements.
- Prepare an Opening Day Balance Sheet: List assets and liabilities, detailing the source and financing methods.
- Review and Analyze Data: Reassess all collected data and financial projections to mitigate risks.
- Decision Stage: Based on the analysis, decide whether to proceed with the business idea, considering its potential for growth and income generation.
Define a ‘start-up’. What are the sources of funds for a new venture?
A start-up is a newly established business, often in the technology sector, that is defined by its high growth potential and innovative solutions. Under the Startup India Action Plan, a start-up is recognized based on several criteria, including being recently incorporated, focusing on innovation or improvement, and not exceeding INR 100 crores in turnover.
Sources of funds for a new venture include:
- Personal investment: Demonstrates the entrepreneur’s commitment.
- Venture capital: Provides equity financing for high-potential growth.
- Angel investors: Contribute capital and expertise in early stages.
- Business incubators and accelerators: Offer support, resources, and funding.
- Government grants and subsidies: Facilitate financing with fewer stringencies.
- Bank loans: Traditional but require a strong business plan for approval.
Elaborate the significance of a Biotechnology Entrepreneur.
Biotechnology entrepreneurs are pivotal in merging science with business to create impactful innovations in health, agriculture, and the environment. Driving innovation, they transform scientific discoveries in biotechnology into viable products that address crucial societal needs. Solving real-life problems is at the heart of their enterprises, often motivated by a desire to improve global health and sustainability. Economic contribution is substantial as these entrepreneurs create jobs and foster economic growth through high-tech innovation. Additionally, their work promotes scientific advancement and commercialization, ensuring that biotechnological advancements reach the market and benefit society. Ultimately, biotechnology entrepreneurs are central to the progress and application of scientific discoveries.
Identify the similarities and differences between General Entrepreneur and Biotechnology Entrepreneur.
Similarities:
1. Idea: Both types of entrepreneurs need competitive ideas to thrive.
2. Teamwork: Success for both depends on having experienced and effective teams.
3. Risk: Both accept and manage considerable risks with perseverance.
Differences:
1. Gestation Period: General Entrepreneurs have a variable gestation period, while Biotech Entrepreneurs often experience a high gestation period due to complex research and development.
2. Uncertainty: Though both face business uncertainties, Biotech Entrepreneurs also deal with scientific uncertainties, which add another layer of risk.
3. Capital Requirements: While this can vary for General Entrepreneurs, Biotech Entrepreneurs typically need high capital investment due to expensive research processes.
4. Regulatory Framework: Biotech Entrepreneurs face a higher level of regulatory scrutiny compared to General Entrepreneurs, especially concerning safety and efficacy of products.
5. Relevance of Academic Qualifications: It is very high for Biotech Entrepreneurs due to the technical and scientific knowledge required.
Basis | General Entrepreneur | Biotech Entrepreneur |
---|---|---|
Idea | Must be competitive | Must be competitive |
Teamwork | Necessary | Necessary |
Risk | Takes all risks | Takes all risks including scientific |
Gestation Period | Variable | High |
Capital Requirements | Variable | High |
Regulatory Framework | Moderate | High |
Relevance of Academic Qualifications | Moderate to negligible | Very High |
Explain the process of starting a Biotech Enterprise.
Starting a biotech enterprise requires careful planning and execution. Here's the summarized process:
- Need Assessment: First, conduct a thorough market analysis to validate the demand for your product and secure intellectual property rights if necessary.
- Identify Founders and Key Personnel: Assemble a diversified team with expertise in biotechnology, business, and legal aspects.
- Legal Expert Consultation: Work with a legal advisor to help navigate corporate and business laws.
- Incorporation: Register your business, ideally as a Private Limited Company, due to the high capital needs and extended gestation period typical in biotech startups.
- Design Marketing and Business Strategy: Develop a detailed strategy covering market needs, product solutions, projected earnings, and utilization of funds.
- Focus on Technology Development: After securing initial funding, prioritize the development of your technology and achieving key product milestones.
Each step contributes to the foundation of a successful biotech enterprise.
Explain the concept of IPR and aspect of IPR in Biotechnology.
Intellectual Property Rights (IPR) refer to the legal protections granted for creations of the mind, such as inventions, literary and artistic works, designs, and symbols used in commerce. IPRs enable creators to control and benefit from their creations. In biotechnology, IPRs are crucial for fostering innovation and investment in new biological products and technologies.
Key aspects of IPR in biotechnology include:
- Patents: Protect novel, non-obvious, and useful biotechnological inventions.
- Plant Breeder's Rights: Protect new plant varieties.
- Trademarks: Safeguard brand identities by differentiating products and services.
- Copyrights: Cover literary works, including research papers and software used in biotechnology.
These rights allow biotech firms to safeguard and commercialize their innovations, essential for industry growth and public benefit.
Explain the role of IPR in Biotechnology Enterprise.
In a Biotechnology Enterprise, Intellectual Property Rights (IPR) play a critical role in fostering innovation and ensuring competitive advantage. Patents protect the proprietary technologies, processes, and biological materials, enabling companies to achieve returns on their R&D investments. Copyrights shield proprietary software and written materials crucial for biotech operations. Trademarks help in building and maintaining brand identity and consumer trust. Trade Secrets protect confidential information such outside the realm of patents, ensuring a competitive edge. Additionally, the Plant Breeder’s Rights safeguard new plant varieties, enhancing agricultural biotech innovations. Overall, IPR safeguards encourage investment and aid in the commercialization of biotechnological advancements, vital for growth and sustainability in this sector.
What are the three central criteria for grant of Patents of any scientific inventions?
The criteria for the grant of patents for any scientific invention are critical to ensure that the invention is legally recognized and protected. The three central criteria are:
1. Novelty: The invention must be new, meaning it should not already be part of the public domain or previously disclosed before the filing date of the patent application.
2. Inventive Step or Non-obviousness: The invention must not be obvious to a person skilled in the art. It should involve an inventive step that is not a natural progression or commonly known from the existing knowledge.
3. Utility: The invention must be practically applicable, usable, and provide some form of benefit or solve a specific problem. It should have industrial applicability and usability.
These criteria ensure that the patents granted are not only original but also contribute value and practical solutions.
‘Angel’ usually provide what type of financing?
(a) Debt
(b) Equity
(c) Stock Sales
(d) None of the above
(b) Equity
Angel investors are generally wealthy individuals who invest in promising startups by providing equity financing. They are often leaders in their fields, who not only invest money but also contribute ideas and experience to the ventures they support.
A patent is granted for a specified amount of time because of the assumption:
(a) That during this time, the firm will cover its development costs
(b) That firm will earn a sufficient profit during this period
(c) To limit the monopoly of the firm
(d) That it will stimulate the idea and development of a better product
The correct answer is (a) That during this time, the firm will cover its development costs. Patents are granted for a limited period to allow a firm to recover the costs involved in developing a new invention. This is a period during which the patent holder has the exclusive right to exploit the invention financially, which includes recovering development costs and potentially obtaining profits influenced by the lack of competing products.
A short-term, internal source of funds can be obtained by reducing all of the following EXCEPT ______________.
(a) short-term assets
(b) cash
(c) fixed assets
(d) Inventory
The correct answer is (c) fixed assets. Fixed assets are not considered a short-term source of funds for an organization, as they are typically used in the long-term operations and are not easily liquidated in the short term. Reducing fixed assets would not be an immediate or practical method for acquiring internal funds on a short-term basis.
A typical researcher entrepreneur usually ___________.
(a) is highly creative and enjoys the process of research
(b) does not encourage change
(c) is not willing to take risk
(d) dislikes change
A typical researcher entrepreneur usually (a) is highly creative and enjoys the process of research. This aligns with the qualities of entrepreneurs described in the provided chapter where they are often innovators who bring new products into the market, signalizing creativity and a drive for research.
Which of the following elements is NOT an important element of the financial data and projections section of a business plan?
(a) SWOT analysis
(b) Projected income statements
(c) Break-even analysis
(d) Cost controls
(b) Projected income statements
Which of the following cannot be covered under the copyright protection?
(a) Computer software
(b) Computer hardware
(c) Poems and songs
(d) Models and sculpture
(b) Computer hardware
Copyright protection is intended for the creators of literary, dramatic, musical, and artistic works, as well as for producers of cinematograph films and sound recordings. It does not cover physical objects such as computer hardware.
Which of the following is false?
(a) A business plan is often prepared by an existing company to ensure that growth is properly managed.
(b) A business plan is usually not required when obtaining finance for a startup.
(c) If a business plan is completed for a start-up, it may help the entrepreneur avoid costly mistakes.
(d) All of the above.
The false statement among the given options is:
(b) A business plan is usually not required when obtaining finance for a startup.
A business plan is crucial for obtaining finance for a startup. It helps in demonstrating to potential investors or financial institutions the viability of the business idea, the expected financial returns, and how the business plans to achieve its goals.
Which of the statements is/are true with respect to entrepreneurship?
(i) Entrepreneur is an individual who undertakes an activity foreseeing business opportunity.
(ii) He/She organises resources needed for starting the enterprise and also bears the risk involved in the process
(iii) There are three prominent roles that an entrepreneur fulfils that of an innovator, organiser and a risk bearer.
Options:
(a) Only (i)
(b) Only (i) and (ii)
(c) Only (i) and (iii)
(d) (i), (ii) and (iii) are true
The correct option is:
(d) (i), (ii) and (iii) are true
All three statements accurately depict the roles and responsibilities of an entrepreneur, as stated in your Biotechnology book chapter. The assertions cover the fundamental characteristics and roles of an entrepreneur, which include identifying business opportunities, organizing necessary resources, bearing associated risks, and fulfilling the roles of an innovator, organizer, and risk bearer.
Seed capital assistance is ______________________.
(a) a long-term assistance.
(b) initial assistance
(c) a help for the purchase of seeds.
(d) a short-term assistance.
(b) initial assistance
Which one of the following is a pioneering initiative of India to prevent misappropriation of country’s traditional medicinal knowledge at International Patent Offices?
(a) Traditional Knowledge Digital Library (TKDL)
(b) National Digital Library of India (NDLI)
(c) Digital Library of Open Access Books (DOAB)
(d) Universal Digital Library
The correct answer is: (a) Traditional Knowledge Digital Liberty (TKDL)
TKDL is a pioneering initiative of India designed to prevent the misappropriation of the country's traditional medicinal knowledge at International Patent Offices.
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Comprehensive Entrepreneurship Class 12 Notes
Introduction to Entrepreneurship
Entrepreneurship refers to the process by which individuals identify opportunities and transform them into viable business ventures. Howard Stevenson, a notable figure in the field, defines entrepreneurship as "the process by which individuals pursue opportunities without regard to the resources they currently control."
Importance of Entrepreneurship
Entrepreneurship plays a critical role in economic development by:
- Creating Employment: Entrepreneurs generate jobs, thereby reducing unemployment rates.
- Economic Growth: Innovations and new business enterprises contribute to economic development.
- Community Development: Diverse entrepreneurial ventures enhance the standard of living and stability within communities.
Key Roles of an Entrepreneur
An entrepreneur wears multiple hats, mainly playing the role of an Innovator, Organizer, and Risk Bearer.
Innovator
Entrepreneurs introduce new products and ideas to the marketplace, driving innovation.
Organizer
They coordinate the necessary resources to transform ideas into reality.
Risk Bearer
Entrepreneurs take on financial risks in anticipation of future rewards.
Qualities of a Successful Entrepreneur
Successful entrepreneurs often share specific attributes:
- Initiative: They take proactive steps at the right time.
- Knowledge and Skill: They possess industry-relevant expertise.
- Risk-taking Ability: They are willing to bear uncertainties.
- Adaptability: They adjust to changes in the business landscape.
- Self-confidence: They have faith in their decisions.
- Wealth Creation: They turn ideas into profitable ventures.
Entrepreneur vs Intrapreneur
While entrepreneurs and intrapreneurs share qualities like innovation and creativity, important differences exist:
Differences and Similarities
- Entrepreneur: A risk-taker who starts a business to make profits.
- Intrapreneur: An employee who innovates within an existing organisation.
Planning and Resourcing an Enterprise
Business Planning
Creating a feasibility report is essential in business planning. Here’s how it’s done:
graph TD
A[Step 1: Preliminary Analysis] -->B[Step 2: Projected Income Statement]
B --> C[Step 3: Market Survey]
C --> D[Step 4: Business Organisation Planning]
D --> E[Step 5: Opening Day Balance Sheet]
E --> F[Step 6: Data Review & Analysis]
F --> G[Step 7: Decision Making]
Sources of Funds for Startups
Personal Investment
Entrepreneurs often invest their own money initially, demonstrating long-term commitment.
Venture Capital
Venture capitalists are investors looking for high-growth potential companies.
Angel Investors
Wealthy individuals who finance startups in exchange for equity.
Business Incubators
Organisations that support high-tech startups during their early growth stages.
Government Grants and Subsidies
Government agencies offer grants and subsidies to encourage business ventures.
Bank Loans
Banks provide loans to startups with feasible business plans.
Entrepreneurship in Biotechnology
Significance and Importance
Biotechnology entrepreneurship merges science with business to bring scientific discoveries to market. Entrepreneurs in this field are crucial for many reasons:
- Solving Real-life Problems: They apply their innovations to practical issues.
- Altruism: They often aim to make a positive impact.
- Financial Rewards: Successful biotech products can be highly profitable.
Challenges Faced by Biotech Entrepreneurs
Biotech entrepreneurs face unique challenges, including long gestation periods and high capital requirements.
Intellectual Property Rights (IPR)
Overview and Importance
IPR protects the proprietary aspects of innovations, ensuring that inventors can capitalise on their inventions.
Patent Acts and Protection in Biotechnology
Biotechnological inventions must meet criteria such as novelty and utility to be patentable, thus ensuring protection and fostering innovation.
Understanding Biopiracy
Definition and Impact
Biopiracy involves the commercial exploitation of naturally occurring biochemical and genetic materials without proper authorisation.
Examples and Case Studies
- Neem Tree Case: The European Patent Office revoked a patent granted to the US Department of Agriculture for Neem, based on traditional Indian knowledge.
- Turmeric Patent Controversy: The US Patent and Trademark Office revoked a patent on the use of turmeric in wound healing, proving it was already documented in Indian traditional knowledge.
Case Study: Dr. Krishna Ella and Bharat Biotech
Early Life and Education
Dr. Krishna Ella, founder of Bharat Biotech, hails from a rural background and pursued higher education in life sciences, eventually transitioning to human and yeast molecular biology.
Founding of Bharat Biotech
With support from angel investors, Dr. Ella founded Bharat Biotech in Hyderabad in 1996. The company has since developed numerous vaccines, including COVAXIN, the first made-in-India COVID-19 vaccine.
Achievements and Contributions
- COVAXIN Development: Developed in a record time of eight months, COVAXIN has been critical in combating the COVID-19 pandemic.
Inspirational Quotes and Vision
Dr. Ella believes in predicting future problems and finding innovative solutions, inspiring the next generation of scientists to pursue impactful careers.
Government Schemes and Startup Promotion
Startup India Action Plan
This initiative recognises startups under specific criteria, offering support in various forms.
Eligibility Criteria for Startups
- Must be a private limited company, partnership firm, or limited liability partnership.
- Turnover should be less than INR 100 crores.
- The entity should be working towards innovation and potential wealth creation.
Conclusion
Entrepreneurship is a cornerstone for economic and social development. Understanding its principles, particularly at the Class 12 level, equips students with the knowledge to succeed in this dynamic field.
This comprehensive guide to entrepreneurship delves into key concepts and practical insights, making it an invaluable resource for Class 12 students. From understanding the importance of entrepreneurship to learning about funding sources and the specific challenges faced by biotech entrepreneurs, this article covers it all.
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