Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Entrepreneurial Opportunity

Question:

Read the passage given below to answer the questions :

A successful food entrepreneur today, Debashish Majumdar belonged to a lower middle class back ground, studied to become a banker. He got his first job as an office assistant. He rose from being an office assistant to the chief accountant and later on pursued a career as a banker with a good salary. After some time he quit his job and the first business he started in 2017, which was an ice cream shop. That did not take off and he made a loss of almost 10 lakh rupees. Idea to start a momo joint came to him when he visited an outlet in Guwahati and felt he could have served better momos. With a loan of about 23.5 lakh with an interest rate of 10 per cent, he launched 'Momomia' is 2018. He ensured that the location was prime to ensure good footfall. That also meant higher rent rate. He started operations with a team of three others. Eventually when he approached investors, he was told his operations were too small to be considered. Monthly sales in the first years were touching about Rs. 1.5 lakh, political turmoil in the state started. The pressure of returning the loan amount was also growing. Gradually situation become better, soon business picked up and in Feb. 2021, first franchise store was opened in Haridwar. Franchise model worked so well for him that he has opened up 55 such franchise outlets in Assam, Arunachal Pradesh, Bihar, Gujrat, Uttar Pradesh and Madhya Pradesh.

'Momomia' provides employment to over 200 people across 50+ outlets. Mean while Momomia's customers can choose from 100 difference kinds of momos.

Debashish was arranging funds to give practical shape to his idea. Identify the stage of creativity mentioned here :

Options:

Idea Generation

Incubation

Verification

Illumination

Correct Answer:

Illumination

Explanation:

Idea germination: This is the seeding stage of a new idea. It is the stage where the entrepreneur recognises that an opportunity exists. The idea germination takes place according to interest, curiosity of the entrepreneur according to which opportunity is explored and exploited to its best potential. Creative idea germinates besides the interest, the need of a specific problem or area of study.

Incubation: This is the subconscious assimilation of information. This is the transition period. The entrepreneur starts thinking about the idea and implementation in his sub-conscious mind.

Verification: Also called the validation or testing stage. This is where the idea is verified to prove that it has value. This is the most difficult phase of creativity as obstacles begin to appear. This is the developing stage in which knowledge is developed into application.

Illumination: In this period of illumination the idea re-surfaces in realistic way and entrepreneur comes out with viable plan to give practical shape by collecting raw-material, arranging funds, policy–making for the implementation of idea.