Ch 2Selection of Enterprise — Class 11 Fundamentals of Entrepreneurship, concept-first.

An enterprise is any economic unit — a factory, a workshop, a shop or a service establishment — that is engaged in the production of goods or the rendering of services with the aim of earning a profit…

Each size-class of enterprise has its own typical features. Knowing them helps a would-be entrepreneur judge where their planned venture is likely to fall and what to expect from it.

Micro and small enterprises (MSEs) are often called the backbone of the Indian economy. Though each unit is small, together they contribute a very large share of output, exports and employment.

Despite their importance, micro and small enterprises face many difficulties that limit their growth and survival.

An entrepreneurial opportunity is a favourable set of circumstances that lets an entrepreneur offer a product or service, meet a real need in the market and earn a profit by doing so.

Before selecting an enterprise, the entrepreneur must first identify promising opportunities. Identification is the process of scanning the environment, spotting unmet needs, and shortlisting ideas wo…

Once an opportunity has been identified and an enterprise selected, the entrepreneur must actually set it up. This is a series of planned steps that turn the idea into a working unit.