Category: Commerce Notes PPT

A bureaucratic theory introduced by Max Weber includes two essential elements, including structuring an organization into a hierarchy and having a clearly defined role to help administer an organization and its members. A German Sociologist, Max Weber, described a theory to operate an organization effectively which is known as the Bureaucratic management approach or Weberian Bureaucracy. Read the article below to know more about the Max Weber Bureaucracy Theory. 

What do You mean by Bureaucracy? 

“Bureaucracy is an organizational structure characterized by many laws, standardized procedures, procedures and requirements, number of desks, the meticulous division of labour and responsibility, clear hierarchies and professional interactions between employees that are almost impersonal.”- Max Weber.

The Concept of Max Weber Bureaucracy Theory

A German scientist, Max Weber, describes bureaucracy as an institution that is highly organized, formalized, and also impersonal. He also developed the belief that there must be a fixed hierarchical structure for an organization and clear rules, regulations, and lines of authority that regulate it. The bureaucracy of Max Weber  has the following attributes:

• Specialization of labour

• A formal set of rules and regulations

• Well-defined hierarchy within the organization

• Impersonality in the application of rules

Max Weber Bureaucracy Theory Organizational Structure

Bureaucratic organizations evolved from traditional structures due to the following changes:

• In traditional structures, the leader delegates duties and can change them at any time. However, over time, this changed and there was a clear specification of jurisdiction areas along with a distribution of activities as official duties.

• In a bureaucratic organization, the subordinates follow the order of superiors but can appeal if they feel the need. On the other hand, in the traditional structure, the authority was disseminated. 

• The rules are detailed, stable, and can be easily understood by employees. Additionally, the company registers them in permanent archives. 

• Personal property is distinct from property in the workplace. The means of production or administration, therefore, belong to the bureau. 

• The selection of officials shall be based on professional qualification and appointment and shall not be based on an election. In addition, for their service, officials receive a salary as compensation.

• The official is hired for a trial period and then offered a permanent position with the organization. This protects him from arbitrary discharge.

Max Weber’s Bureaucratic Form – 6 Major Principles

Max Weber identified the following six core principles of the bureaucratic form:

• A Structured Hierarchical Structure: In a bureaucratic organization, each level governs the level below it. Also, the level below it governs it. The foundation of central planning and centralized decision making is a formal hierarchy. 

• Rules-Based Management- To exercise control, the company uses rules. Therefore at higher levels, the lower levels effortlessly execute the decisions made.

• Organization of Functional Specialties – Specialists do the job. The company often breaks workers into groups depending on the type of work they do or the abilities they possess. 

• Up-Focused Or In-Focused: If the organization’s purpose is to represent the stockholders, board, or some other institution that motivated it then it is up-focused. On the other hand, it is in-focused if the goal is to serve the company itself and others inside it (like producing income, etc.).

• Impersonal – All workers are handled fairly by hierarchical organizations. They also fairly treat all clients and do not allow individual differences to affect them. 

• Employment-oriented Professional Qualifications – Selection is based on technical qualifications and skills as well as employee promotion.

Though criticism has come from several corners of these laws, the organization’s hierarchical structure tends to live on.

Features of Bureaucratic Organization

Following are the different features of bureaucratic organization:

• A well-defined chain of command exists. 

• The high level of Division of Labor and Specialization.

• It follows Rationality, Objectively, and Continuity theory. 

• The relationship between the members of the association is formal and impersonal. And it’s focused not on personalities, but roles.

• The rules and regulations are well defined and employee duties and privileges are indicated. Such ideals range from the bottom of the organization to all and must be strictly observed. 

• Professional credentials are used for selection and promotion. 

• Relevance is granted only to bureaucratic or legal authority.

Criticism of Bureaucratic Organization

Max Weber’s Hierarchical Management Approach still has several fault lines and has attracted criticism for that. 

• The focus is only on rules and laws. 

• Owing to the formalities and regulations of the Hierarchical Organisation, there would be needless gaps in decision-making. 

• Owing to so much formality and laws, organization and communication were hindered.

• Bureaucracy requires a lot of paperwork and has an extensive level of authority, resulting in a lot of time, effort, and resources being wasted. Not optimal for effectiveness. 

• A hierarchical approach is not ideal for business organizations because of its unnecessary formality. For government agencies, the bureaucratic model might be appropriate.

• The professional skills of the personnel for promotion and transfers are given too much significance. The dedication and commitment of the worker are not considered. 

• Human Resource Limited scope exists for human resources. Informal groups are not given any meaning and no scope is given to form one.

• The hierarchical approach of Max Weber served as a solution to the issues of conventional administrative structures. But it was not the optimal solution or “close to perfect.” 

• The bureaucratic system gives top-level management all the significance and control. 

And there are just so many rules and degrees of authority. It gives the workers a greater sense of security. But a window for “red-tapism” is created by bureaucratic management.

It refers to the part of the market where the financial instructions mobilize the savings of the people and lend them long-term so that new capital can be raised in the country. A capital market is nothing but the process by which funds are borrowed and lent over a long period of time. The capital market can also be considered a marketplace where financial securities (stocks, bonds, and government-backed loans) are bought and sold.

Types of Capital Market

Primary Market

A primary market is the most important type of capital market. It is also known as the new issue market. The primary function of this market is to deal with new securities, i.e. securities that are issued for the first time to a new investor.

Primary markets serve the most important function of generating capital for companies, governments, and institutions. Investors are able to find companies through this service who are interested in investing in their expansion or project.

Secondary Market

Another type of market besides primary markets is the secondary market. The stock exchange market is usually called the secondary market. There are securities on the market in the form of shares, debentures, bonds, bills, etc., which are bought and sold between parties. A primary market deals solely with newly issued securities, whereas a secondary market deals with existing securities. However, the secondary market deals with securities already in existence. The secondary market does not issue new securities.

Regulation and legalization of the securities market ensure strict rules and regulations for the trading of securities. To make sure that investors can trade without fear of being scammed, this step has been taken. Technology has played a major role in advancing secondary capital markets during the last decade.

The Functions of Capital Markets

• Capital Formation – Promote savings and make them available to companies and public authorities.

• Various financial instruments are available on the capital market that allows economic agents to pool, price, and exchange risks.

• Financial savings are encouraged by assets with favorable yields, liquidity characteristics, and risk characteristics.

• The stock exchange allows long-term investors to convert their holdings into cash through the market. It also provides companies with securities with the option of obtaining cash without reducing their liquidity.

• An important function of the capital market is to mobilize funds and resources needed for development and to implement policies related to stabilization, monetary control, and banking system regulation.

Capital Market Objectives

Capital market regulation is primarily intended to protect investors, insider dealings, creative accounting, and misuse of client money are some of the vices investors need protection from.

Some of the objectives of capital market regulation are as follows:

• The protection of investors.

• Make sure markets are fair, efficient, and transparent.

• Taking steps to reduce systemic risk.

Accordingly, capital market regulation is intended to protect the public interest, which operates on the need to foster economic development and confidence, which in turn can boost inward investment.

Some Methods of Raising Funds

The companies raise money in the primary market through securities such as shares, debentures, loans and deposits, and preference shares, etc. Let us take a look at the various methods of how new securities are floated in the primary market.

• Offer Through Prospectus: This method involves public issues. It is widely used in the public method to raise funds. In this method, the companies invite the investors to invest in their company through an advertisement (known as a prospectus).

After issuing a prospectus the public starts investing in shares, debentures, etc. According to the response, shares will be allotted to the public. In case the subscriptions are high, allotment is done on a pro-rata basis. The company shares can be sold to the public. Generally, it hires brokers or underwriters.

So, when the company sells its shares to any financial institution like banks, insurance companies and so on it helps in raising funds quickly, economically, and efficiently. Such a company neither sells nor offers the securities largely to the public.

• Rights Issue: Often when a company wants to expand or needs additional funds, it generally first turns to the current investors. Thus, the current shareholders have an opportunity to invest more in the company. They can buy new shares before the public is given a chance.

The allotment of new shares is performed on a pro-rata basis. If the shareholder chooses to let go of this offer then the public is allowed to purchase the shares. If the shareholder wants to purchase the shares then they will acquire more shares.

SEBI introduced this system in India 3 years ago. This makes the entire process of IPO faster and more efficient. The company will have to work with brokers to accept the received applications. Apart from this, a registrar must be appointed to the issue.

Secondary Market

The other type of market apart from the primary market is the secondary market. This market is more commonly known as the stock market of the stock exchange. This market is inclusive of securities in the form of shares, debentures, bonds, bills etc and these are bought and sold between parties.

The main difference between the primary and the secondary market is that primary markets only deal with new securities that were issued. On the other hand, the secondary market is for trading in existing securities. There are no fresh issues in the dealings of the secondary market.

The trading of securities takes place in a highly regulated and legalized market under strict rules and regulations. This is to make sure that the investors can trade without the fear of scams. During the last decade, technological advancements have resulted in a great boon for the secondary capital market.

New ideas, unceasing passion, unique talent, and the courage to take the risk and a route less travelled are entrepreneurs. Despite these excellent attributes, an entrepreneur faces several challenges to scale up to the top. An entrepreneur’s potential is compromised by the challenges he needs to face to be a successful entrepreneur. A simple definition according to Robert D Hisrich, “Entrepreneurship is the process of creating something new and assuming risks and rewards.”

According to the Uitm Entrepreneurship Study Group, “An entrepreneur is a member who actively forms or leads their own business and nurtures them for growth and prosperity.”

Let’s Look at the Five Key Challenges or Problems He Faces or Needs to Overcome

Raising Funds

Financial planning is the most crucial in any business set-up. Many ventures fail as they are not able to cater to the financial aspect of the growing business. An entrepreneur needs a substantial sum to start and promote the goods/services. You need funds to overcome the hindrances. 

A steady flow of cash is necessary to sustain and survive in a volatile market and one may always need extra cash or funds to take care of the business during rainy days.

Risk of Losing the Capital

Starting a business is all about taking risks. Small business failure is relatively high. According to one study done by the National Federation of Independent Business (NFIB), 35% of businesses fail in the first two years, 54% fail in the first four years and 64% new businesses fail after six years of starting. This failure can be devastating to an entrepreneur financially and emotionally. An entrepreneur needs to assess the risk and be prepared to face the failure too.

Dealing With the Unknown, Self-Doubt, and Criticism

Every entrepreneur, no matter how passionate or talented he or she is, will deal with self-imposed questions whether he is doing the right thing in the right manner at the right time. These questions and doubts can be demotivating and discouraging. Criticism may also lead to self-doubt but one should know to separate the wheat from the chaff.

Cut-Throat Competition With Large Industries

Businesses in India on certain goods and services are controlled and have a monopoly by the already established industries. Hence, the entry of new entrepreneurs is very limited and challenging.

Heavy Taxation and Corruption

The rapid development of new business is not easily possible due to the tax and corruption in society. It is so prevalent that directly or indirectly, an entrepreneur faces the repercussions of it. Unless he or she has the grit to overcome with good financial background and unique innovation – it becomes highly difficult to succeed.

A Whole Responsibility

An entrepreneur might not be well-versed in all areas of business but yet needs to take decisions despite lacking complete knowledge about the same. The knowledge that the decisions are based can affect the success or the failure of the business.

Grey Market and Counterfeit Goods

The sale of goods through a distribution channel not authorized or intended by the manufacturer and this happens when the product of the price in the market is much higher than in other nearby markets. A new venture desirous of building its brand needs to keep a strategy ready to tackle the problems posed by the grey market.

Hiring the Right Talent

After deciding to launch a new product or service in the market, you need a team to execute this. A dream team is a secret behind any success in any business and there is no exception here too. Although, the major decision making is done by the entrepreneur he requires the right talented people to back him up. Getting the right people who trust your ideas and share a common vision is difficult.

Effective Marketing

Marketing plays a pivotal role in reaching out to people. No matter how wonderful and unique your product or service is but without good marketing, success in these businesses is not possible. You need an effective marketing plan to reach out to your target audiences.

Dealing with Stress

It is rightly said, “Without pain, there is no gain”. Success does not come without the passion to strive and sweat. The complete onus of the business is on an entrepreneur. An entrepreneur’s life can be a roller coaster. Fighting the odds of society, government, corruption, and facing competition and comparison, dealing with downfall and failure is a part of an entrepreneur’s life. Hence, he needs to be very possible, calm, and at the same time strong enough to handle the consequence of his decisions. 

The challenges and struggles of an entrepreneur are umpteen but the right attitude to face failure in order to harness the energy to persevere is the key.

Accounting is a vast field of study that deals with money management. Naturally, there are different classifications made by experts. These classifications help students to cover the area adequately and learn the concepts clearly. Here are the details of the modern classification of accounts. Having explicit knowledge about it can help you cover the whole section. 

There are mainly three subfields of accounting, such as Cost Accounting, Management Accounting, and Financial Accounting. All of these are discussed in detail.  

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Cost Accounting 

The type of accounting that deals with keeping records, analyzing, and summarizing the costs for a service product is known as cost accounting. An organization can access the classification of the expenses in cost accounting easily. Cost accounting can be vital for any company as it helps the executives observe the levels of costs in different production aspects and take necessary decisions. They take the help of some prominent elements such as labor, material, and miscellaneous expenses to calculate the total costs. Moreover, the above elements are costs for a company that can either be direct or indirect. The modern classification of accounts gives way to several kinds of costs.

Types of Costs and Their Details

• Variable Cost: The quantitatively dynamic cost is also known as Variable Cost. Generally, it is directly proportional to production. Labor and Material costs are the two variable costs

• Fixed Cost: The costs that are static in contrast to the level of production are known as fixed costs such as wages and salaries. 

• Semi-variable Cost: The cost which can be variable or fixed depending upon the element is known as semi-variable cost. There are two other costs known as Sunk cost and Opportunity Cost that are related to the production level and semi-variable cost.

• Financial Accounting: As per the classification of accounting principles, Financial Accounting is another subtype of accounting. As it is evident by the name, it deals with the finances of the business company over a specific time period. 

The document-based data that comes under financial accounting are income bills, statements, and balance sheets. The executives can derive reports related to company transactions from financial accounting. An executive has to follow financial principles to get reports of financial accounting. He has to follow the facts mentioned in GAAP to make the reports. 

Multiple types of companies like International Public companies, International Financial Reporting, and others are all related to GAAP. The methodologies that the executives can follow are Cash Basis, Accrual Basis, and the hybrid between the two. The advantage of proper financial accounting in a company is that it can enhance complete transparency. Moreover, it can ease the process of making the annual reports too.

• Management Accounting: The executive board of the organization fully manages management accounting. It relates to organizational decision-making in different aspects. It is mainly done based on the reports on cost accounting and financial accounting and other data. It holds an important place in the case of the classification of accounting. 

Management Accounting Segregation

The details of the management account segregation are given below:

1. Cost Accounting Based 

• Analysis of the profit and cost volume.

• Analysis of the standard costs and variance. 

• The method of differential and incremental costing 

2. Financial Accounting based 

• Analysis of all the data present in the financial statements

• Analysis of the  cash flow statements

• Analysis of the return on capital

3. Future Data Information Based: Segregation of management accounting through budget control and project evaluation. 

4. Mathematics Based: Segregation with the help of operation research, network analysis, and linear programming. 

5. Final Words: So these are the details about the classification of accounting. All large business companies hire the best team when it comes to accounting as the outcomes show the fields where the company investments are done already or may happen in the future.

Why is Accounting Important? 

For running any business smoothly and efficiently one should maintain accounts. Accounting helps you to track income and expenditures and provides investors, administration, and government with quantitative financial information which can be used in making business.

The goal of accounting is to collect data and to prepare reports on financial statements, about the performance of the firm, whether it is running smoothly, its financial situation, and the cash flows of a business.

By taking all these things in consideration decisions are made for the progress of the firm. They not only help to manage the business of the firm but also to make future decisions like to invest more money in it or lend money etc.

Rules of Accounting

Accounts are of three types 

1. Real Account:

2. Personal Account:

• In personal accounts, receivers are debited and givers are credited in the balance sheet.

• An example of some personal accounts might be Preeti account Sharma account

3. Nominal Accounts:

• In nominal accounts, all expenses and losses are debited and all incomes and gains are credited. The nominal accounts are applicable to the Income, losses, and profits of a firm.

• For example salary, wages, purchases, sales, etc.

Need and Objectives of Accounting

• To record transactions in a systematic manner.

• Assessment of loss and profit of a firm.

• Tax filing.

• Providing important information to the administration.

• Effective Control over the Business

How Can We Maintain a Daily Account Check at Home?

We can maintain accounts even at home. 

• Your expenditure or expenses should not be more than your income.

• Your cash inflows should be high when compared to your expenses.

• Always have an adequate balance in your accounts.

• Keep vigilance on your expenses and cut down on unnecessary expenditure along with your actual income.

The three terms – Business, Profession and Employment though may seem synonyms to each other, but in a real sense, their meanings are wide apart from each other. The three terms are the basic way to earn a living for an individual. People working around the globe are engaged in either of the three terms.

 

Knowing each of these terms well and analyzing its difference by chalking a whole table of the three has been done here in this section. Students studying the business studies subject must study this enthusiastically.  

 

Difference between Business, Profession and Employment

Before delving into the comparison study, we must first know distinctively what each term means. 

 

What is Business?

Business refers to the economic activities, which are connected with the production or the purchase or sale of goods or supply of services with the main objective of earning profit. People engaged in business earn income in the form of profit they make out of their venture. Examples: Grocery Shop, Hair Salons are examples of Businesses. 

 

Business is the act of making one’s living or making money by producing or buying and selling products. This is any activity or enterprise which is entered into for profit. This does not mean it is a company, a corporation, a partnership, or has any formal organizational structure, but this can range from a roadside peddler to the General Motor. 

 

There can be four kinds of business organizations according to the law, which are Sole Proprietorship, Corporation, LLC (Limited Liability Company), and Partnership. In a sole proprietorship, a Business name won’t separate the business entity from the owner; this means that the owner of the business is responsible and is liable for debts incurred in his own business. If the business acquires debts, the creditors can go after the owner’s personal possessions and have their dues in return. A business structure does not attract corporate tax rates. The proprietor of the business is personally taxed on all income from the business. Hence, due to all the reasons mentioned above, the proprietary form of business is discouraged (mainly due to the risk involved), the person should try to make the company public as soon as possible. There is no educational or technical entry barrier in existence in order to become a successful business owner. There are many successful examples of businessmen who have completed their formal education.

 

Some examples of businesses: fishing, mining, manufacturing industries, Grocery Shop, Hair Salon, Medicine Shop etc are some of the huge types of business. 

 

What is Profession?

The profession includes the activities, which is a requisite of special knowledge and skill which is to be applied by individuals in their occupation. These activities are generally subject to the guidelines or codes of conduct laid down by the professional bodies. People who are engaged in professions are known as professionals.

 

Examples of Professionals: Doctors, Chartered Accountants etc.

 

A profession is neither a trade nor an industry, which is delved with three professions: divinity, medicine and law. They are called the “learned professions”. 

 

What is Employment?

Employment is the occupation in which people work for others and get remuneration in return. Those who are employed by others are known as employees, and these employees are hired by the employers. 

 

Example: Any person working for others on a salary basis such as an Accountant, Sales Manager or Peon etc.

 

Employment is a relationship between two working parties who usually is based on contract and is paid for, here one party, which may be a corporation, (either profit or non-profit organization) or any other entity is an employer and the other is working in accordance with the employer is the employee. 

 

Employees work in return for their payment. This payment may be in the form of an hourly wage by a piece worker or by an annual salary worker. This happens depending on the type of work an employee is assigned for. Also, employees in many sectors get bonuses, stock options; these are all part of their contractual relationship among the employee and employment, which they receive in addition to their payment.  

 

The difference between the three terms can be explained with the following chart given below: 

 

Discussion on the Inter-Relationship between Business, Profession and Employment

Although, all these three activities are distinguished from each other, mainly on the account of factors of investment and risk. Yet one cannot forget the important role played by all the three of them in the existence of others.

 

A business can only thrive and become successful if the role of professional experts and employees is correctly completed. 

 

Professionals of various types like consulting engineers, management consultants, financial consultants, legal experts, doctors, architects, chartered accountants, cost accountants and others are retained by business identities to deal with a variety of complicated technical problems that the modern big-scale business firms have to deal with. And As the large-scale business requires a huge number of specialists and the number of expert knowledge in modern businesses, In such circumstances, businesses will need skillful management consultants to stay up-float. Economic institutions of recognized importance (mainly the big and successful businesses), provides employment to many peoples and is now the livelihood of those employed by the company. 

 

The prosperity and success of a business depend, not merely on the sales done and the resources of businessmen, but are equally determined by the availability of the right type of employees that have a positive attitude towards the work. Thus, while business provides employment opportunities to people, the employees provide the organized and devoted effort which is a necessity for any business firm to get the best results out of their investment. 

 

Without the business, the word “employment” also loses all its meaning, and thus both of these terminologies highly depend on each other, the disappearance of one will be an existential threat for the other.

Entrepreneurship studying is a recent trend in the career that has been initiated by the Government itself owing to the importance of this element in an economy. Today we study about ‘Entrepreneurship’ to know its character, instilled behavioral pattern, wants and wishes, their growing strategy and their action in building their empire in industries. In Entrepreneurship, the students are enlightened about the practicality of to-day’s business ideas, a modern lifestyle adopted by an entrepreneur in regard to taking risk and responsibility of the business. 

What is Entrepreneurship? What are its Characteristics? Is the main base of our discussion in this content.  

Concept of Entrepreneurship

Entrepreneurship can be defined as the creation or the acquiring of value. Entrepreneurship can also be viewed as “change” which includes other values other than simply economic ones.

The constricted definitions of Entrepreneurship talks about the process of designing, launching, and running a new business that actually starts as a small business. Entrepreneurship can also be defined as – the capacity and the willingness to develop, organize and to manage a business.  

The people who start and create a business with a new model, in a view to solve a societal problem they are referred to as entrepreneurs. The discussed definitions of entrepreneurship specifically focus on the launching and taking over the business with high risks involved in launching.

Characteristics of Entrepreneurship

Digging deeper in the definition of Entrepreneurship, leads us to the characteristics of Entrepreneurship which means an Entrepreneur can be identified with definite sets of characters built in him/her.

First, to talk about this inbuilt character, an Entrepreneur should be Creative. He should take the initiation of innovating something which is out of the box.

Next, his lifestyle should be filled with Professionalism, an Entrepreneurs manners and behavior with his fellow team mates or employees should be of a quality, they should possess the touch of professionalism in their attitude. This also leads to self-discipline, which will encourage the entrepreneurs to achieve their high goals.   

Risk Taking, this is an important character which is must for an entrepreneur to develop within himself. This character comes, when he gets the self-confidence triggering in himself. A good entrepreneur will always take risks in ventures after methodically analyzing them.

Features of Entrepreneurship

All the success not always happens to every individual who dreams to be an entrepreneur. They fail in the journey to be an entrepreneur due to lack of entrepreneurial features in him. Entrepreneurial features are a must to be a successful entrepreneur. 

Important Features That Distinct An Entrepreneur Are As Follows

1. Tenacity – In simple words tenacity means the power of ‘not giving up’. An entrepreneur with his new business model may fall a thousand times, but these mere failures do not block their vision to check what is missing and why they fail, they work on it even a thousand times and then successfully pitch his brand-new business model in the industry. They do not take ‘no’ as an answer. They work incessantly until they achieve their goal.

2. Passion – Passion is often regarded as a driving force. An entrepreneur is ever passionate about his dream. It is not just the passion of mere making of money, but is a passion of solving a societal problem with their business idea and model. Without a high degree of passion, it is not possible to stay motivated.

3. Risk Taking – Entrepreneurs are never hesitant to take risk, this does not mean they are reckless, rather they analyse method studying in their investment before they take a risk. ‘High risk cultivates higher profit’ this is the mantra that an entrepreneur always follows.

List any Four Characteristics of Entrepreneurship

Famous entrepreneurs discuss about four key characteristics that entrepreneurs possess:

1. Ambition and Self Confidence

2. Willingness to take a leap of faith

3. Ability to learn from mistakes

4. Trust in and respect for the team

Ambition – An entrepreneur is highly ambitious. They see a problem and then they engage in an activity to solve the problem, this mental state is never changing in them.

Faith – That faith in self that the problem is worth solving and he has been placed right to solve it is the enormous leap of faith. It is the confidence about his own work.

Learning from Mistakes – Entrepreneurs do not repent and wail over mistakes or the times when they fail, rather than the mistakes as they analyze their mistakes and see what was missing. They gather the understanding of their mistake, where they lacked and again start their work not from the scratch but now from a lot of experience.

Work Together – Entrepreneurs work in a team. They make the team and lead it. He takes mutual help and harmoniously works in the team, they beautifully collaborate the team and destine them to work for his own idea.

Characteristics of Entrepreneurship Development    

To run a business successfully, an entrepreneur needs to develop certain characters in them. Certain traits that must be developed and always polish in themselves are as follows –

1. Self confidence

2. Risk taking ability

3. Decision making ability

4. Competitive 

5. Intelligent

6. Visualization

7. Emotional Tolerance

8. Patience

Thus, these were the concepts and characteristics of an entrepreneur that we learn in this discussion.