ACE INSTITUTE OF MANAGEMENT

ASSIGNMENT –II
DESCRIPTIVE QUESTIONS

ENTREPRENEURSHIP
Date: 1st August, 2020

Submitted by: Submitted To:

Mandip Shrestha Faculty Member
EMBA Fall 2018 Sohan Babu Khatri

1|Page
Q.No 1 Continuing on Peter Baskerville’s train of thoughts, explain your understanding of
this Unique Entrepreneurial Mindset, what makes the Entrepreneurial mindset different
from the “traditional approach to business development”. Assist your explanation with an
artful compare and contrast between the effectual logic and causal logic. Use examples where
relevant.
Answer: Unique Entrepreneurial mindset is a set of distinctive objectives and goals. It is the
mindset of thinking out of the box and has risk taking abilities. Risk averse individuals have an
entrepreneurial mindset. The unique entrepreneurial mind is very creative, communicative and can
tactfully handle failure.
The traditional approach to business development has a certain process and steps towards
development. The breakdown of the fixed traditional approach and working according to the need
of the hour differentiates unique entrepreneurial mindset.
Casual logic is a pre-planned and structured way of performing things whereas effectual logic is
more like creative and on the spot doing things. I would like to use Toastmasters meeting as an
example to explain both the logic. The meeting is conducted with two types of speech one is
polished and prepared speech and other is impromptu speech. The speaker who has already
prepared speech on a given topic, practiced the way of delivering the speech is a causal logic. The
speaker who catches the topic on the spot, delivers an impromptu speech is an effectual logic.
Q.No 2 The field of Entrepreneurship is riddled with myths around and among the youths
specifically, few of them are:
Answer:
 Entrepreneurs are risk-taking gamblers:
Entrepreneurs are not risk taking gamblers because to run business entrepreneurs cannot
rely on luck. Risk is everywhere. Entrepreneurs take risk but they take calculated risk and
believe if they work effectively they can turn risk into reward. On other hand, entrepreneurs
see opportunity while we people see opportunity as a threat.

 With a great idea and enthusiasm, anyone can achieve entrepreneurial success:
You don’t need a great idea to start a business. Everyone has a business idea but they often
judge their idea and don’t consider good enough. There is nothing wrong to start your
business with an existing idea until and unless you breach someone else patent, copyright
or trademark. For example Uber was launched in 2009 and Lyft was launched in 2012.
Both are doing great in market and cover nearly same percentage of customers. You just
need a creative marketing tactics to promote your business.

 Entrepreneurs are introverted loners:

People have different personalities. Some are introvert and some are extrovert. Your
business cannot grow until and unless you don’t talk with others. You have to have good
connection with other businessperson. So, some entrepreneurs might socialize with other
2|Page
 people for their business benefit and in personal life they like to remain isolated. Some of
loners entrepreneur are: Bill Gate, Warren Buffet etc.

 You hate bosses. That is reason enough to become an entrepreneur:

Some people don’t want to follow order or in simple word people who hate authority
mainly think of starting their own business. It’s good to start your own business but you
also have to think about business factors. If you do not have entrepreneurial qualities such
as passion, creative, good listener, vision etc. then it’s just a waste of time and resources
you put on your business. Even though you become an entrepreneur you have to listen to
your clients, partners, investors. Therefore simply because you hate authority or bosses I
think it’s a childish move to become an entrepreneur.

 To be an entrepreneur you must invent something truly novel:

Entrepreneurs are characterized as a person who invents something novel but it is a myth.
To Be an entrepreneur, you don’t necessarily have to invent something novel, all you have
to do is create new ideas, innovation, find gap in market and be creative in whatever field
you work. More than novelty, entrepreneurs are people with visions and creativity.

Q.No 3 Do you agree that startups and small businesses are indeed different ventures with
vastly different goals and that they need different things? In that case do you think there
should be different approaches to managing a startup and a small business? Explain the
difference with proper reasoning for each.

Answer: Yes, I agree that start-ups and small businesses are indeed different ventures with vastly
different goals and that they need different things because think of what the CEO of a start-up
does: They come up with a stellar business idea, gather some interest from big players in the
industry, raise early rounds of capital, and use that funding to prove their business model in the
market. Admittedly, this is a simplified account of the challenging job of being a chief executive
of a company. But when you break it down to these basics, it’s easy to assume that a start-up is
really just a small version of a soon-to-be large corporation. This is partly true some start-
ups do become large, global companies. However, it’s much, much harder to boil every large
corporation down to its start-up form. That’s because start-ups, technically, are not small versions
of large corporations. Instead, they’re better defined as organizations formed to search for a
repeatable and scalable business model. Start-up founders are not only searching to prove their
business model and execute on it, but they’re looking for a way to do so quickly, and in a way that
has a major impact on their given market.

3|Page
 I feel that both startup and small business are different and the objective for both are definitely
different one. Startup is much more challenging with a lot of pressure and newness and lot much
to prove, in today’s time it is more technology oriented so that can it reach to bigger audience as
the target audience is big and the target is to create a difference and an impact on them is totally
different and newness. While on the other hand, small business is much clearer and the aim is
profit, the target audience is niche and it is much easier to operate in the local market. For Startup
it is all from zero level from investment to risk, it cannot accept result overnight it is not the same
for the small business.
Small business doesn’t require any business model whereas for startup it has to create its own role
model with trial and error approach since from day one. Small business are self-sustaining and can
generate revenue in the niche market from day one, there is definitely some sale in the market.
While in startup initial phase is just to make the people believe in what the startup is all about.
Whereas also, small business needs small investment while it is not always in the case with startup
business.
Q.No 4 What is your take on the opinions of the authors that “Intrapreneurship is a myth”.
Do you believe that bureaucracy is indeed the source of all-evil that deters large companies
from adopting intrapreneurship effectively and therefore company’s should rid of all policies
and procedures that hinder entrepreneurial tendencies in employees? In such case, what do
you prescribe organizations to do who want to enhance their innovative capacity by incuding,
developing and retaining intrapreneurship?
Answer: I feel that it depends on the type of business whether it is a startup, small business or large
business and the leadership system that is followed by the company. If it is a large company with
traditional approach yes intrapraneurship is a myth because mostly new employees are dominated.
Domination is because of many reasons - old employees don’t want the new one to do good - old
employees tries to show there seniority.
And the new employee in order to create a space in the organization and to be accepted gradually
does what is being done always, which kills the creativity. While in startups n small business with
modern approach, as there is less no. of employees and they have motive to proof themselves and
achieve the goal ideas of new employees are welcomed and are taken seriously.
Qno 5. Explain with illustration, how doing so can cause big and established companies to
fail and what his caution means against the disruptive innovation.
Answer: In simple words, Disruptive innovation is about innovating new and more to offer
customers every time and eventually because the business go down. When business tries to offer
as per the need of the customer, trying to match the current needs of the customers, firm may lose
the actual purpose of the products. Big and established companies may try to maintain their market
share trying to bringing innovations. However, even though the organization may seek to grab
highest possible profit from targeted customer segment, firm may fail to look the overall picture.
As it is said, Closer you are lesser you will see, too much focus in the same product, provides
opportunity to new entrants to serve the customer neglected by big companies. Big companies may
earn profit from high level customers, but will lose its share in another way round. Product offered

4|Page
to high level customers may not attract main user of products because of the added features to
existing products. Mainstream user will always be attracted towards the main features of the
products, and may get distracted from unnecessary products. Supply from the companies though
innovative may not match with demand of the market. Caution purpose by the author against the
disruptive innovation are:
• New technology and innovation should be focused towards right customers rather than their
current customers.
• Technology and innovation should be placed with proper investigation and should focus on large
customer sets and bigger wins.
• Priority should be given to product, the processes and values used and quality rather than adding
unnecessary add ups.
• Resources should be provided as per the demand of the product rather than completely using the
resources while running after innovations.

5|Page
 References
Landau,C(n.d.)Difference between startup and small business retrieved from bplans
https://articles.bplans.com/whats-difference-small-business-venture-startup/

https://www.forbes.com/search/?q=Do%20you%20agree%20that%20startups%20and%20small
Do%20you%20agree%20that%20startups%20and%20small%20businesses%20are%20indeed%
20different%20ventures%20with%20vastly%20different%20goals%20and%20that%20they%20
need%20different%20things?%20In%20that%20case%20do%20you%20think%20there%20sho
uld%20be%20different%20approaches%20to%20managing%20a%20startup%20and%20a%20s
mall%20business?%20Explain%20the%20difference%20with%20proper%20reasoning%20for%
20each.%20businesses%20are%20indeed%20different%20ventures%20with%20vastly%20diffe
rent%20goals%20and%20that%20they%20need%20different%20things?%20In%20that%20case
%20do%20you%20think%20there%20should%20be%20different%20approaches%20to%20man
aging%20a%20startup%20and%20a%20small%20business?%20Explain%20the%20difference%
20with%20proper%20reasoning%20for%P a g e | 620each.#5602a22279f4

6|Page