ENTREPRENEURSHIP DEVELOPMENT

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WHO IS AN ENTREPRENEUR ???????

The word  ‘entrepreneur ‘ had its origin from FRENCH language in the beginning RD CANTILLON who was considered as a FRENCH ECONOMIST,  he was the first author to use the term entrepreneur for economic activities, he considered an entrepreneur as a” BEARER OF UNCERTAINTY AND RISK “. This definition talks about an important characteristic of the sense of an organizer who combines various factors of production. An ENTREPRENEUR comes up with a valuable product and sells it in the market from which he pays for the factor of production land, labour, and capital and whatever remains is his profit.

WEBSTER defines an entrepreneur as the one who sees, manages and assumes the risks of a business enterprise. Thus an entrepreneur visualizes a business opportunity, HE takes the steps to establish the enterprise, gives it a start and co-ordinates various factors of production. JOSEPH SCHUMPETER, an Australian economist, regarded entrepreneur as an innovator who carries out new combinations to initiate and accelerate the process of economic development.

History is full of examples of the process of the progress and achievements made by many countries as a result of the efforts of these entrepreneurs. The increase in the number of entrepreneurs is an indication of the increased sensitivity of the nation to be productive and generative. This will gradually increase the GROSS NATIONAL PRODUCT of the country through increased productivity and the pursuit of excellence and cost-effectiveness. One might have been in the Indian context remarkable entrepreneurs in the field of information technology and other fields.IN fact, every country needs effective entrepreneurs to utilize various resources for economic growth and development.

 

 



CONCEPTS OF ENTREPRENEURS AND ENTREPRENEURSHIP

An entrepreneur is a person who searches for change and responds to it by starting on the enterprise.  Adam Smith defines,” entrepreneur as  an individual who undertakes the formation of an organization for commercial purposes by recognizing the potential demand for goods and services and thereby acts as an economic agent and transforms demand and supply “

ENTREPRENEURSHIP is the process that involves all actions an entrenched undertakes to establish an enterprise to give reality to his business ideas. According to JOHN KASO and HOWARD STEVENSON, “entrepreneurship is the attempt to create value through recognition of business opportunity, the management of risk-taking appropriate to the opportunity and through the communicative and management skills to mobilize human, financial and material resources necessary to bring a project to fruition.” This definition recognizes that entrepreneurship involves this fusion of capital, technology, and human talent to complete a project successfully and with a reasonable degree of risk “.

“Entrepreneurship is also defined as the ability to create and build something from practically nothing. It is a knack of sensing the opportunity where others see chaos, contradiction, and confusion. Entrepreneurship is the attitude of the mind to seek opportunities, take calculated risks and derive benefits by setting up a venture thus, it comprises of numerous activities involved in conception, creation and running an enterprise”.

According to Higgins ,”ENTREPRENEURSHIP means the function of seeking investment and production opportunity ,organising an enterprise to undertake a new production process , raising the capital,discovering new sources of capital ,hiring the labour  introducing new sources of raw materials and selecting  a new technique , discovering  new sources of raw materials and selecting top managers for day to day operations of the enterprise.” This definition highlights risk-taking, innovating and resource organizing aspects of entrepreneurship.

ENTREPRENEURSHIP can be described as a creative and innovative response to the environment such responses can take place in any field of social endeavour business, agriculture, education, social work, and the like. The entrepreneur is an innovator, action-oriented and highly motivated, he visualizes business opportunity, gathers the necessary resources to take advantage of the environment and initiates appropriate action to ensure success.

The foregoing definitions indicate that entrepreneurship is associated with the following activities or functions :

  1. Perceiving opportunities for profitable investment
  2. Initaive in establishing a business
  3. Risk-bearing
  4. Introduction of innovations
  5. Provision of capital
  6. and Coordination of different factors of production

 



NATURE OF ENTREPRENEURSHIP

The characteristics of entrepreneurship are discussed below :

1.ECONOMIC ACTIVITY

ENTREPRENEURSHIP involves the creation and operation of an enterprise.THEREFORE, it is essentially an economic activity concerned with value or wealth.

2.CREATIVE RESPONSE TO ENVIRONMENT

ENTREPRENEURSHIP  involves innovation or introduction of something new.IT is a creative response to the environment .entreprenuer recognizes the need for change and initiates it.HE does things in new and better ways.

3.PURPOSEFUL ACTIVITY

ENTREPRENEURSHIP is the purposeful activity of an individual or a group of individuals who seek to earn profits through the production and distribution of economic goods and services.

4.DYNAMIC PROCESS

ENTREPRENEURS thrive on the changing environment which brings new opportunities for business. Flexibility is the hallmark of a successful entrepreneur.

5.RISK ELEMENT

ENTREPRENEURS make decisions in the face of uncertainty.T therefore, the risk is an in the inherent and inseparable element of entrepreneurship. Until the new venture idea becomes popular amongst the costumes, it runs a family high degree of risk of incurring losses.

6.CREATOR ORGANISATION

An entrepreneur assembles and co-ordinates other factors of production i.e. land, labour, and capital. Managerial skills and leadership are other very important facets of entrepreneurship.

7.GAP FILLING FUNCTION

It is the job of an entrepreneur to fill the gaps between needs and goods services.H e has to complete the inputs and provides the knowledge about the production process.

8.OPTIMUM USE OF RESOURCES

An entrepreneur optimizes the use of resources by arriving at the most productive combination that will provide the society the neede and services.

 

ENTREPRENEUR, MANAGER, and INTRAPRENEUR



DISTINCTION between ENTREPRENEURS and MANAGERS

QUITE often an entrepreneur and a manager are considered similar because of some overlapping in their roles. In a small firm, the owner himself acts as the manager. But there are some important differences between an entrepreneur and a manager which are discussed below

 

1.VENTURE CREATION

An entrepreneur often sets up a new venture while a manager only runs an existing venture.

2. INNOVATION

An entrepreneur introduces new ideas to increase profits and therefore is, an innovator, on the other hand, the manager runs the business on established lines and often maintains the status quo. An entrepreneur is a change agent whereas a manager is the product of change . Entrepreneurship involves combining initiate changes in production whereas management involves combining to initiate changes in production whereas management involves combing to produce.

3.RISK BEARING

An entrepreneur assumes the risk of economic uncertainties involved in the enterprise. A paid manager, on the other hand, undertakes no risk.

4.STATUS

An entrepreneur is his own boss and enjoys an independent status. In contrast, a manager is an employee and dependent on the owner.

5.REWARD

For bearing risks, an entrepreneur earns  A profit which may fluctuate widely from one time period to another. But the reward of a manager is the salary which is relatively fixed and regular.

6.CONTINUITY

MANAGEMENT refers to the ongoing coordination of the production process whereas entrepreneurship is a discontinuous phenomenon appearing to initiate change in the production process and then disappear until it reappears to initiate another change.

 



       ENTREPRENEUR V/S MANAGERS

   BASIS  ENTREPRENEUR MANAGER
1. VENTURE CREATION An entrepreneur sets up a new venture and runs it. A manager only runs an existing unit.
2.INNOVATION ENTREPRENEURSHIP  is another name of innovation. He works to find new methods, products etc. A manager is an employee of the business organization. He cannot operate independently.
3.RISK TAKING An entrepreneur starts and runs his venture independently. He is self-employed and on his own basis. A manager takes fewer risks as compared to an entrepreneur. He is less tolerant of uncertainty. He does not share business risks.
4.STATUS An entrepreneur takes calculated risks. He may even jeopardize his own financial security. He is responsible for the failure and financial loss. A manager need not be an innovator. He deals with the day-to-day affairs of a going concern.
5.REWARD An entrepreneur is motivated by profits. He may even suffer loss. A manager is motivated by rewards or incentives. His salary cannot be negative.
6.CHANGE An entrepreneur is a response to external environments and is always prepared to change. A manager may not very receptive to change unless he is enterprising.

 

 

INTRPRENUERSHIPOR CORPORATE ENTREPRENEURSHIP

An  INTRPRENUER is an entrepreneur within an already established organisation this term is used to represent the new breed of corporate entrepreneurs who have come to the fore in a big corporation. We can call them as internal entrepreneurs they are creative and innovative people working within the framework of the organization,  they catch hold of new ideas for a product, service or process and work to bring their vision into reality.

 

BASIS ENTREPRENEURS INTRAPRENEUR
1.STATUS   the entrepreneur is the owner of the business.   Intrapreneur works an employee of the business.
2.CAPITAL entrepreneur raises the requisite capital himself.   Intrapreneur does not raise any capital
3.FREEDOM  Entrepreneur works independently  He Intrapreneur is semi in-depth
4.RISK-TAKING  An Entrepreneur is one who beans full risks of his business.   Intrapreneur does not bear not my bear any     risks of business
5.GUARANTEE  Entrepreneur guarantees planet to suppliers of inputs.  No such guarantee is required to be given by the Intrapreneur.
6.NORMS AND RULES  Entrepreneur operates independently. he is the master of his snow as he frames norms and rules of his business.  Intrapreneurs operate from within the organization. He is an organization man and is bound by organizational norms and rules.

 




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