CONCEPT of ENTREPRENEURSHIP

Presented by-

Aditya Mayank
MBA-3rd sem

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 productive resources to attain profit and growth.
He possesses the vision and foresight of

identifying opportunities in a changing environment 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 word

entreprendre which means undertakers. The word referred to those who undertook the risk of starting a new enterprise. The word entrepreneurship has a very wide range of meaning. In one extreme, an entrepreneur is one who pioneers a change and in the other extreme he is one who works for himself. Entrepreneurship is among the four mainstream economic factors land, labour, capital and entrepreneurship.
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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 uncertain price. Thus he takes decisions regarding resource allocation and bears the consequential risks. He evidently seeks best opportunities for highest yields/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 capitalist that is a supplier of capital and at the same time working as a manager intervening between the labour and consumer.

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DefinitionEntrepreneurship is a multi-dimensional task defined differently by different authorities. There is no indisputable definition of entrepreneurship. Some are discussed below: The American Heritage Dictionary defines an entrepreneur to be "a person who organizes, operates, and assumes the risk for business ventures." Sociologists assert that entrepreneur brings in overall change through innovation for the good of the 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 leaders not simple owners of capital.
Schumpeter in his definition made the distinction

between entrepreneurs and inventors clear. The inventor might create a new product but the entrepreneur gathers resources, organizes talent and provides leadership to make the venture a commercial success.

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 In Peter Druckers view (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 involves

1.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, Laxmanrao

Kirloskar entrepreuners?
Was Ohno the GM of Toyota Motors who

introduced many innovative measures that revolutionized automobile industry an entrepreneur?

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 Now founders of small industries/ small business,

trading establishments etc are loosely termed as entrepreneurs.

They might have the attributes of an entrepreneur

but they are not entrepreneurs in the purest sense of the term, if they have not innovated.
They can just be called businessmen with

entrepreneurial attributes of risk taking and organizing.

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 Professionals in corporate organizations often

exhibit high degree of innovativeness. But they cannot be called entrepreneurs because they are essentially salaried employees. This form of corporate entrepreneurship also called Intrapreneurship 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 and popularize 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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2.

Jeff Bezos, the founder of Amazon (a Web-based bookstore) was the fist to sell books online on a large scale and patented the one-click system for online buying. Though selling books is not an innovation in itself, Jeff Bezos was innovative in the use of the Internet as a viable marketing and sales channel for selling books.

So an individual could be termed as an entrepreneur if he or she sells a product or service using new systems and/ or mediums of marketing, distribution or production methods as a basis for a new business venture.

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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 online store 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 the field 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 the venture, identifies needed resources using a business plan, and identifies strategies for penetrating markets or protecting intellectual property; 3. Resourcing: In which the entrepreneur identifies and acquires the financial, human, and capital resources needed for the venture start-up, 4. Actualization: In which the entrepreneur operates the venture and utilizes resources to achieve its goals and objectives 5. 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 terms of 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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