Small Business and Entrepreneurship · Class 11 · CBSE · Commerce Business Studies
Explain the concept of 'Entrepreneurship' as distinct from mere 'management'.
Practice question from Small Business and Entrepreneurship (Class 11 · CBSE · Commerce Business Studies), with the correct answer and a step-by-step solution.
hard · Subjective · Q-1601B6
Explain the concept of 'Entrepreneurship' as distinct from mere 'management'.
Answer: Entrepreneurship is the process of identifying business opportunities, gathering resources, and taking calculated risks to establish a new enterprise, focusing heavily on innovation and wealth creation. Management, on the other hand, is the ongoing process of planning, organizing, directing, and controlling the operations and resources of an already established enterprise to achieve its goals efficiently. While an entrepreneur is an innovator and risk-bearer, a manager is typically an employee or professional executing pre-determined policies.
Solution
An entrepreneur focuses on innovation, risk-bearing, and starting new ventures, whereas a manager focuses on continuous operations, administration, and execution within established frameworks.
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