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Presented by-

Aditya Mayank

MBA-3rdsem

CONCEPTof

ENTREPRENEURSHIP

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Entrepreneurs: Definitions

Entrepreneur is a proprietary capitalist that is a

supplier of capital and at the same time working

as a manager intervening between the labour and

consumer. He effectively coordinates productiveresources to attain profit and growth.

He possesses the vision and foresight of

identifying opportunities in a changingenvironment and becomes an economic agent

who transforms demand in to supply for profits.

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UNDERSTANDING OF THE TERM

The word is derived from the French wordentreprendre which means undertakers.

The word referred to those who undertook therisk of starting a new enterprise.

The word entrepreneurship has a very wide rangeof meaning. In one extreme, an entrepreneur isone who pioneers a change and in the otherextreme he is one who works for himself.

Entrepreneurship is among the four mainstreameconomic factorsland, labour, capital andentrepreneurship.

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According to Richard Cantillon (1755) a French

economist introduced the concept of

entrepreneurship in economics.

As per him an entrepreneur is one who buys a

product, repacks and transforms the farms

produce to market and then sells it at uncertainprice.

Thus he takes decisions regarding resource

allocation and bears the consequential risks.

He evidently seeks best opportunities for highestyields/profit.

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According to Adam Smith (1776) entrepreneurs

were economic change agents who reacted to

environmental changes.

They were agents who converted new demand in

to supply.

Entrepreneur was a proprietary capitalistthatis a supplier of capital and at the same time

working as a manager intervening between the

labour and consumer.

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Definition-

Entrepreneurship is a multi-dimensional taskdefined differently by different authorities.

There is no indisputable definition ofentrepreneurship. Some are discussed below:

The American Heritage Dictionary defines anentrepreneurto be "a person who organizes,operates, and assumes the risk for businessventures."

Sociologists assert that entrepreneur brings inoverall change through innovation for the good ofthe society. He contributes in modernizing society.

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According to Joseph Schumpeter(1950)entrepreneur is one who coverts a new invention or

idea in to successful innovation.

He said that entrepreneurs are the business leadersnot simple owners of capital.

Schumpeter in his definition made the distinctionbetween entrepreneurs and inventors clear.

The inventor might create a new product but theentrepreneur gathers resources, organizes talent and

provides leadership to make the venture acommercial success.

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In Peter Druckersview (1985)Entrepreneurship is

neither a science nor a art. It is a practice. It is not just

about making money. It is all about imagination,flexibility, creativity, willingness to think conceptually,

readiness to take risk.

Acc to H.N.Pathak- Entrepreneurship involves1.Perceptoin of an opportunities.

2.organizing an industrial unit.

3.Running the industrial unit as profitable, going &

growing concern.

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WHO CAN BE CALLED AN ENTREPRENEUR?

Let us first start with some questions:

Is a fruit vendor an entrepreneur?

Were G.D. Birla, Jamnalal Bajaj, LaxmanraoKirloskar entrepreuners?

Was Ohno the GM of Toyota Motors whointroduced many innovative measures thatrevolutionized automobile industry anentrepreneur?

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Now founders of small industries/ small business,

trading establishments etc are loosely termed asentrepreneurs.

They might have the attributes of an entrepreneur

but they are not entrepreneurs in the purestsense of the term, if they have not innovated.

They can just be called businessmen with

entrepreneurial attributes of risk taking andorganizing.

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Professionals in corporate organizations often

exhibit high degree of innovativeness. But theycannot be called entrepreneurs because they are

essentially salaried employees.

This form of corporate entrepreneurship also

calledIntrapreneurship

emerges within existing

enterprise.

Intraprenurs introduce innovative ideas in the

organizations they work for and thus add great

value.

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Few examples-(for a better understanding of the terms entrepreneurship

and innovation)

1. Mary Quant, the English fashion designer,

arguably invented the miniskirt in the sixties. But

she definitely was the first to name, market andpopularize the product. Skirts were not a new

outfit but her redefining the hemline and

popularizing it was innovative enough to call her

an entrepreneur.

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3. Stuart Skorman was the founder of Reel.com, which

is essentially one of the first cyber movie stores. It has

a very large inventory of over a 100 000 videos.

Though setting a movie store was revolutionary then,

Reel.com main distinction was being known as the

first online store to expand by opening an offline

store. Stuart Skorman felt that by doing so, the onlinestore could be an advertisement for the offline store

and vice versa, thus strengthening this click and

mortar business venture.

It was an example of creativity and innovation in thefield of e-commerce.

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STAGES OF ENTREPRENEURSHIP

Fundamentally there are five (often overlapping) stages:1. Discovery:In which the entrepreneur generates ideas,

recognizes opportunities, and determines the feasibility of ideas,markets, and ventures;

2. Concept development:In which the entrepreneur plans theventure, identifies needed resources using a business plan, and

identifies strategies for penetrating markets or protectingintellectual property;

3. Resourcing:In which the entrepreneur identifies and acquiresthe financial, human, and capital resources needed for theventure start-up,

4. Actualization:In which the entrepreneur operates the venture

and utilizes resources to achieve its goals and objectives5. Harvesting:In which the entrepreneur decides on the ventures

growth, development, or even demise.

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BENEFITS OF ENTREPRENEURSHIP

Benefits of entrepreneurial activities are immense both in termsof personal growth and contribution to the society. Only a few

have been listed below:

Opportunity of huge personal financial gain.

Scope of high order of Job satisfaction, sense of

achievement, self employment.

Generation of employment / income for others.

Contribution to overall growth in the region/ nation /world

Encourages higher quality products.

Development of new products and markets.

Contribution towards growth and promotion of the use of

modern technology.

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My References-

The Dynamics Of Entrepreneurial Development

And Management- Vasant Desai.

www.google.com

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