Class 11 Entrepreneurship – Unit 2 Magic Words

This document provides easy-to-learn magic words and essential keywords for every topic in Unit 2 to help you remember the headings and write accurate explanations in your exams.

1. Types of Entrepreneurs (C. Danhof’s Classification)

Magic Words: FIDI

F – Fabian Entrepreneurs: Keywords -> shy and lazy, cautious, do not venture/take risks, rigid, second generation
I – Imitative Entrepreneur: Keywords -> copy or adopt suitable innovations, adaptive, flexible, organisers, underdeveloped economies
D – Drone Entrepreneurs: Keywords -> refuse to copy/use opportunities, conventional, resist changes, suffer losses, laggards
I – Innovative Entrepreneur: Keywords -> early phases, initiative, introduces new products/methods, discovers new market, aggressive

2. Types of Business

Magic Words: CAB IT

C – Corporate Entrepreneur: Keywords -> innovative ideas and skill, organise, manage and control corporate undertaking, promoters
A – Agricultural Entrepreneur: Keywords -> agricultural and allied activities, raising and marketing of crops, employment of modern techniques
B – Business Entrepreneur: Keywords -> idea for new product/service, establish enterprise, materialise idea, small trading and manufacturing
I – Industrial Entrepreneur: Keywords -> manufacture products and offer services, effective demand, convert economic resources and technology
T – Trading Entrepreneur: Keywords -> trading activities, identify potential market, stimulate demand, demonstration

3. Use of Technology

Magic Words: TN

T – Technical Entrepreneur: Keywords -> technical by nature, developing new and improved quality, knowledge/skill/specialisation, craftsmen
N – Non-technical Entrepreneur: Keywords -> alternative marketing and distribution strategies, promote business, not concerned with technical aspects

4. Professional Entrepreneurs

Magic Words: PRO

P – Professional Entrepreneurs: Keywords -> establish business enterprises to sell them, develop alternative projects, selling running business, not interested in managing operations, dynamic

5. Motivation (Based on Motivating Factors)

Magic Words: SIM

S – Spontaneous Entrepreneurs: Keywords -> pure entrepreneurs, desire for self-fulfilment, personal satisfaction, natural entrepreneurs, no external motivation
I – Induced Entrepreneurs: Keywords -> governmental supports, financial assistance/incentives, special circumstance, forced
M – Motivated Entrepreneurs: Keywords -> technical and professional expertise, highly ambitious, making and marketing new products, reward in terms of profit

6. Other Categories of Entrepreneurs

Magic Words: FIT

F – First-Generation Entrepreneurs: Keywords -> own innovative skill and expertise, combine different technologies, no entrepreneurial background
I – Inherited / Second Generation Entrepreneurs: Keywords -> inherit family business through succession, pass from one generation to another
T – Third Generation Entrepreneurs: Keywords -> grandparents and parents have been entrepreneurs, inherited the business

7. Competencies of an Entrepreneur

Magic Words: CRISP LIP PEEQ

C – Creativity and Innovation: Keywords -> basic traits, meet challenges, take advantage of utility
R – Risk Taking and Risk Management: Keywords -> areas of uncertainty, potential challenge, calculated risks
I – Initiative: Keywords -> fundamental competencies, keen observer, speed
S – Systematic Planning: Keywords -> limited resources, develop a detailed blueprint
P – Problem Solving: Keywords -> more than one way, alternative strategies, generate new ideas
L – Leadership: Keywords -> guide and motivate entire team, effective business acumen
I – Information Seeking: Keywords -> personally conducting research, decides success and failure
P – Persistence: Keywords -> intense perseverance, roadblocks should not deter
P – Persuasion and Influencing Others: Keywords -> influence environment, mobilizing resources, highlighting strong points
E – Enterprise Launching Competencies: Keywords -> identify and avail facilities and resources needed to launch
E – Enterprise Management Competencies: Keywords -> demands management abilities, production/marketing/finance
Q – Quality Performance: Keywords -> outstanding performance, standards, comparing quality

8. Ethical Standards (Examples)

Magic Words: PEP NJ

P – Providing quality and correct quantity: Keywords -> goods to consumers
E – Environmental issues: Keywords -> keep in mind during production
P – Paying minimum and correct wages: Keywords -> to the workers
N – Not to use child labour: Keywords -> in their production
J – Judicious use of natural resources: Keywords -> natural resources

9. Entrepreneurial Values (Core Values)

Magic Words: IIRQ

I – Innovation and creativity: Keywords -> creative ideas, solve specific problems, experimenting, facing uncertainty
I – Independence or ownership (self-reliance): Keywords -> positive ego drive, ‘mission’ concept, clear vision, commitment
R – Respect for work: Keywords -> achieve anything through hard work, goal direction, rewards and incentives linked to efforts
Q – Quest for outstanding performance: Keywords -> excellence, over comer, resolve problems under pressure, persistent

10. Features of Attitude

Magic Words: PAIA

P – Pervasive: Keywords -> formed in socialisation, relate to anything
A – Affects behaviour: Keywords -> consistency, intended behaviour
I – Invisible: Keywords -> psychological phenomenon, indirectly observed
A – Acquired: Keywords -> learnt over a period of time, family members impact

11. Sources of Attitudes

Magic Words: DIG

D – Direct personal experience: Keywords -> quality of direct experience
I – Influential Others: Keywords -> personal contact, respected friends/experts, opinion leaders
G – Group Associations: Keywords -> influenced by other members, family, work, peer groups

12. Essential Attitudes of an Entrepreneur

Magic Words: F FACT PD CREW B

F – Flexible (Be flexible, except with core values): Keywords -> plans change, do not compromise core values
F – Fear of failure (Don’t let it hold you back): Keywords -> opportunity to learn
A – Asset (The major company asset is oneself): Keywords -> health is valuable, balance and energy
C – Criticism (Encourage and accept graciously): Keywords -> honest opinions, state it once
T – Trustworthiness (Set an example of): Keywords -> culture of integrity, confidence
P – Passion (Have passion for the business): Keywords -> work should be fun, renew passion
D – Decisions (Make timely decisions): Keywords -> intuition, avoid procrastination
C – Comfort zone (Periodically getting out of): Keywords -> uncomfortable implementing change, grow personally
R – Rebound (quickly from setbacks): Keywords -> learn from setbacks, move on
E – Ego (Keep under control): Keywords -> build a war chest, hear out new ideas
W – Work ethic (Maintain a strong): Keywords -> beat competition, outworking them
B – Believe (in oneself): Keywords -> confidence is contagious

13. Maslow’s Hierarchy of Needs

Magic Words: PS BES

P – Physiological needs: Keywords -> food, water, warmth, lowest-level, driving force
S – Safety needs: Keywords -> shelter, security, stability, employment security
B – Belongingness and love needs: Keywords -> intimate relationships, friends, interact with co-workers
E – Esteem needs: Keywords -> prestige, accomplishment, self-respect, reputation, status
S – Self-actualisation: Keywords -> achieving full potential, continuous self-development

14. McClelland’s Theory of Needs

Magic Words: AAP

A – Achievement: Keywords -> master complex tasks, set goals, concrete timely feedback
A – Affiliation: Keywords -> desire to belong, teamwork, interpersonal relationships
P – Power: Keywords -> control and influence others, win arguments, have an impact