Documente Academic
Documente Profesional
Documente Cultură
RMB 402
Dr. Anurag Joshi
Unit 1
• The word entrepreneur originates from the French word,
entreprendre, which means "to undertake.“
• In a business context, it means to start a business. The
Merriam-Webster Dictionary presents the definition of an
entrepreneur as one who organizes, manages, and assumes the
risks of a business or enterprise.
• The concept of entrepreneurship has a wide range of
meanings. On the one extreme an entrepreneur is a person of
very high aptitude who pioneers change, possessing
characteristics found in only a very small fraction of the
population.
• On the other extreme of definitions, anyone who wants to
work for himself or herself is considered to be an entrepreneur.
Schumpeter's View of Entrepreneurship
Austrian economist Joseph Schumpeter 's definition of
entrepreneurship placed an emphasis on innovation, such
as:
new products
new production methods
new markets
new forms of organization
Wealth is created when such innovation results in new
demand. From this viewpoint, one can define the function
of the entrepreneur as one of combining various input
factors in an innovative manner to generate value to the
customer with the hope that this value will exceed the cost
of the input factors, thus generating superior returns that
result in the creation of wealth.
• Entrepreneur is one of the important segments of
economic growth. Entrepreneur is a person
brings overall change through innovation for the
maximum social good. He is one who is
responsible for setting up a business or an
enterprise. Entrepreneur is visionary and an
integrated man with outstanding leadership
quality.
Definition
• The entrepreneur is an organizer of a business
firm, central to its distributive and production
function- Cantillon
• An entrepreneur is the economic agent who
unties all means of production, the labor force of
the one and the capital or land of the others and
who finds in the values of the products his result
from their employment, the reconstitution of the
entire capital that he utilizes and the values of
the wages, the interest and the rent which he
pays as well as profit belonging to himself.
J.B.Say
• As per New Encyclopedia Britannica considers an
Entrepreneur as “an individual who beers the risk
of operating a business in the face of uncertainty
about the future conditions.
Characteristics of Entrepreneur
• Need to achieve
• Independence
• Risk bearing
• Locus of control
• Positive self- concept
• Hope of success
• Flexibility
• Analytical ability of mind
• Confronting uncertainty
• Interpersonal skills
• Stress takers
• Innovators
• Business communication skills
• Leadership
• Ability to mobilize resources
• Self confident
Qualities of Entrepreneurs
• Disciplined • Creativity
• Confidence • Determination
• Open Minded • Strong people skills.
• Self Starter • Strong work ethic
• Competitive • Passion
Importance of Entrepreneur
• Develop new market
• Discover new sources of materials
• Mobilize capital resources
• Introduces new technologies
• Create employment
• Increase in national income
• Balanced regional development
• Bringing change in structure of business &
society
• Knowledge and social need filling
• Dispersal of economic power
• Better standards of living
• Creation innovation
• Production evolution process
• Enhancing welfare amenities
Functions of Entrepreneur
• Primary function • Other function
– Planning – Product diversification
– Organizing – Expansion of enterprise
– Decision making – Maintaining cordial
– Management industrial relation
– Innovation – Coordination without side
– Risk bearing agencies
– Uncertainty bearing
• Entrepreneurial function
– Idea generation
– Determination of objectives
– Raising of funds
– Procurement of raw material
– Procurement of machinery
– Market research
– Determination of form of enterprise
– Recruitment of manpower
– Implementation and control of project
• Functions for developing countries
– Management of scarce resources
– Dealing with public bureaucracy (license, subsidies)
– Acquiring and overseeing assembly of factory
– Industrial designing & reengineering
– Marketing of product & responding to competition
– Industrial new product
– Perception of market opportunities
– Financial/production management
– Management of customers and suppliers relation
Classification of Entrepreneur
Based on functional characteristics
• Innovative entrepreneur
• Imitative or adoptive entrepreneur
• Fabian entrepreneur
• Drone entrepreneur
Based on development angle
• Prime mover
• Manager
• Minor innovator
• Satellite and Local trading
• Innovating Entrepreneurs: They are generally
aggressive on experimentation & cleverly put
attractive possibilities into practices. It
introduces new goods, inaugurated new
methods of production, discovers new
markets and recognizes the enterprises.
• Imitative Entrepreneurs: They do not
innovate the changes themselves, they only
imitate technology & techniques innovate by
others. They copy & learn by Innovating
Entrepreneurs.
Fabian Entrepreneurs: They are the second
generation Entrepreneur and they are very skeptic
(normally Refuse to adopt the changes) about
taking a step unless and until they are definite, it
would be a loss, if not steps are not taken in time