Entrepreneurship

(MH-206)

By: Dr. Millo Yasung

Department of Management and Humanities
NITAP
 Introduction

Derived form French word “entreprendre”

which means “to undertake”.

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Entrepreneur Entrepreneurship Enterprise
(Person) (Process/Action) (Outcome)

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◈ Entrepreneur - (Adam Smith) An individual, who undertakes
the formation of an organization for commercial purposes by
recognizing the potential demand for goods and services, and
there by acts as an economic agent and transforms demand into
supply.

◈ Entrepreneurship - Process of identifying opportunities in the

market place and marshalling the resources required to pursue
these opportunities for long term gains. It is the attempt to
create value.

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◈ Enterprise - the business organization that is
formed and which provides goods and services,
creates jobs, contributes to national income, exports
and contributes to the overall economic
development.

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 Importance of/Need for Entrepreneurship

◈ Life-line of a nation

◈ Provides innovation

◈ Increase profit

◈ Employment opportunities

◈ Social Benefits

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 Role/Functions of an Entrepreneur

1) Entrepreneurial Function

a) Innovation

b) Risk-taking

c) Organisation Building

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2) Promotional Function

a) Discovery of Idea

b) Detailed Investigation

c) Assembling the requirements

d) Financing the proposition

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3) Managerial Function

a) Planning
b) Organising
c) Staffing
d) Directing (Leadership, Communication, Motivation,
supervision)
e) Co-ordination
f) Controlling

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4) Commercial Function

a) Production

b) Marketing

c) Personnel

d) Accounting

e) Finance

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