Entrepreneurship is one of the four mainstream economic factors land, labour , capital and entrepreneurship.

During 14th century, references speak about tax contractorsindividuals who paid a fixed sum of money to a government for the license to collect taxes in their region. Known as tax contractors they used to take the risk of collecting taxes. If they collected more than the sum paid for their license , they made profits and kept the excess. The concept of entrepreneurship of was existing in 17th century and was a common topic in economic essays for much of the 18th and 19th centuries.

 Entrepreneurship refers to a process of actions an entrepreneur undertake to establish his business. It is a creation and innovative response to the environment and an ability to recognize, initiate and exploit an economic opportunity . In today s world of modernization and development the term entrepreneurship is a well known term. Entrepreneurship is the ability to foresee or ascertain the various opportunities related with investment and then to evaluate these various opportunities and forming enterprise, the purpose of which is to give the maximum contribution in the nationals growth. When we combine these activities performed by entrepreneurs the resultant is known as entrepreneurship.

1.

2.

Innovation is an important function of entrepreneurship . Innovation means doing something new or doing old things in new or different way . It is the introduction of new methods and ways of doing the work. an entrepreneur should be innovative. According to DRUCKER, INNOVATION IS THE MEANS BY WHICH ENTREPRENEUREITHER CREATES NEW WEALTH PRODUCING RESOURCES OR ENDOWS EXISTING RESOURCES WITH NEW PRODUCTS, SERVICES, IDEAS, AND INFORMATION Risk bearing. Risk bearing is also an important function of entrepreneurship. Prof knight in his theory RISK UNCERTAINTY AND PROFITS DEFINES there are two types of risk; Foreseeable risk is the risk which can be insured and capable of being calculated. Unforeseeable risk.- is the risk which cant be insured and it is tough to calculate it.

RISK

FORESEEABLE RISK
EARTHQUAKE THEFT FLOODS

UNFORESEEABLE RISK
BUSINESS RISK GOVT POLICY RISK COMPETATIVE RISK

3. Organizing function entrepreneurship can also be defined as an organizing function. Organization means organizing all the factors of production and directing them towards the attainment of the goal of organization. 4. Management skills. Entrepreneur must posses managerial skills like motivation and leadership. Motivation is inner urge that emerges the behaviour towards achievement of goals. It can be positive and negative, financial and non-financial and leadership is to direct the people to do what you want your men to do. 5.Economic activity. Entrepreneurship is an economic activity as it is concerned with earning more and more profits. 6. Goal oriented. Entrepreneurship is an goal oriented activity. It is undertaken to achieve the predetermined goals of the entrepreneur.

 Decision Making: Entrepreneur takes decisions regarding activities of enterprise. He decides about the type of business to be done and the ways of doing it. An entrepreneur has to make decisions to take actions with unknown and unpredictable results. Function of High Achievement: People for high need for achievement are more likely to succeed as entrepreneur. Resource Mobilisation: Gap filling is the most significant feature of entrepreneurship. The job of entrepreneur is to fill the gap or make up the deficiencies which always exist in the production function. He has to perform the functions of input completing and gap filling.

OBJECTIVES OF ENTREPRENEURSHIP
Economic Objectives
Profit Earning Production of Goods

Human Objectives
Welfare of Employees Satisfaction of Consumers

Social Objectives
Availability of Goods Supply of Quality goods Co-Operation with government Creation of More Employment

Personal Objective
Growth

National Objectives
Helping National efforts Development of Small Entrepreneur

Survival Earning Prestige

Creating Market
Technological Improvement

National Self Sufficiency

Development of Skilled Personal

Utilising Natural Resources Properly

 1.

The role of Entrepreneurship in development of an economy in discussed from the following points; Entrepreneurship and balanced regional development. Imbalanced regional development means a few sectors of an economy are developed and others remained undeveloped. This is a major problem faced by an under developing country. These sectors remain backward because entrepreneurs are not willing to invest in these sectors due to lack of availability of infrastructural facilities. It is the government who can encourage entrepreneurs to invest in these sectors by giving then subsidies and concessions. So the balanced regional development can be ensured with the help of entrepreneurs. Increase in per capita income. due to over population in developing countries per capita income is low as compared to the other developed nations. Per capita income can be increased either by reducing population or by increasing national income. Entrepreneurs play an important role in the growth of national income by utilizing the resources land, labour and capital. As they are innovators they can device new methods and techniques with minimum of cost and maximum profits which leads to increase in national income , increase in per capita income.

4.Generation of employment. Entrepreneurs offer solution of the grave unemployment problem confronting the economy. Entrepreneurs firstly generate self employment and secondly be employing others in their enterprise , solve unemployment problem of others. Small scale units need less investment and absorb a large number of unemployed persons. 5.Raise standards of living. Entrepreneurship help in rising the standard of living of people of the country. As entrepreneurs invest in small scale and large scale industries which leads to industrial growth in the country and industrial growth in turn leads to availability of abundance of goods for the consumers. As supply of goods increase it will lower the price of commodities become accessible to every walk of people in order developed countries and improves their standard of living. 6. Self Sufficiency. Self sufficiency means a stage where a country is not dependent on world economy for its needs. Tools of self sufficiency are export promotion and import substitution. With the help of developed entrepreneurial structure a nation can increase its production. When the production of goods in the country is increased, the surplus which will left over after satisfying the domestic consumption can be exported, and with this we can earn foreign currency.

THEORIES OF ENTREPRENEURSHIP
Four Categories of Entrepreneurship:

Entrepreneurial history is felt to be interdisciplinary in approach and thus, it is difficult to label entrepreneurship as purely a theory of economics or sociology or psychology or a anthropology. The concept of entrepreneurship is as old as civilization while theories of entrepreneurship have been evolved from over a period of more than two centuries.

The Economists View

The Sociologists View

The Psychologists View

The Anthropologists View

1). Economic Theory

Richard Cantillion (1755) was the first person to recognise the role of entrepreneurs in economic theory. He stated that , the farmer is an entrepreneur who promises to pay the land owner for his farm or land, a fixed sum of money without assurance for the profit he will derive from his enterprise. Hence entrepreneur is always at risk of bearing losses if he would unable to sell the goods at a higher price. J.Schumpeter (1994) added the concept of innovation to the theory of entrepreneurship . He visulalised the entrepreneurs as the key figure in the economic development because of his role in introducing innovations. For Schumpeter, the ability to identify new opportunities in the market is a central entrepreneurial activity which creates disequilibrium In the economy. According to economists, G.F Papanek and J.R. Harris, economic incentives bring forward a favourable drive for entrepreneurial activities. A desire to have more economic gain sparks the entrepreneurial instinct. Lack of incentives , unattractive economic polices and unfavourable market conditions tend to reduce the vigour of entrepreneurship.

2).Sociological Theory
Sociologists suggests that the entrepreneurship can conceptualized as a social movements and entrepreneurs exist not only in the economy but in other spheres of society as well. S.M Lipset argues that cultural values deeply effects entrepreneurship and the level of economic development. Mark Granovetter points that family ties may create an obstacle for a businessman. According to Hoselitz, the approach which emphasizes the theory of deviance assumes that those who introduce changes must be deviants since they reject the traditional elites way of doing things. For example , in Latin America , recent immigrants , members of minority groups have formed a considerable section emerging business elite. A great land mark in entrepreneurial studies is represented by study conducted at Harvard University (1948-1958). A journal of the centre Explorations in Entrepreneurial History, states that entrepreneurship should not be studied by focusing on individual entrepreneur but rather by looking enterprise . Special attention was often paid to the social relations within the enterprise and to the relations between the enterprise and its surroundings.

3).Psychological Theory
Joseph Schumpeter states that the entrepreneur is mainly motivated and driven by three things: a. The dream and the will to found a private kingdom. b. The will to conquer. c. The joy of creating. J.Schumpeter formulation can be translated as: a) the desire of power and independence ; b) The will to succeed; c) The satisfaction of getting things done. d) According to him , money is not what ultimately motivates the entrepreneur. Thus he supports the psychological theory and not the economic theory. He asserts that what matters is the behaviour and not the actors.

4).Anthropological Theory
Barth on of the leading anthropologist of the world , states that entrepreneurial behaviour means to connect two different spheres in the society, between which huge discrepancy in value. Something which is cheap in one sphere may be expensive in another.

Each of the above theories is incomplete and none of them is right or wrong. Theories of entrepreneurship are inter-disciplinary and are influenced by multitude of factors. It is the integration of external environment , achievement motivation, ability and ambition which largely determines whether an individual become an entrepreneur.

PROS AND CONS OF ENTREPRENEURSHIP

Pros includes various points of Benefits, advantages or importance of entrepreneur Whereas cons refers to various adverse affects or dark side of entrepreneurship. ADVANTAGES OF ENTREPRENEURSHIP: 1) Generation of Employment. 2) Increasing per Capita Income. 3) Helping in Capital Formation. 4) Balanced Regional development. 5) Optimum Utilisation of Resources. 6) Promoting Self reliance. 7) Helps in raising living standards . 8) Mobilise the Idle savings & formation of capital. 9) Dispersal of economic wealth. 10)Economic independence. 11) Life line of Nation.

CONS OF ENTREPRENEURSHIP
There are various factors responsible for the failure of entrepreneurship. Karl H Vesper has identified following entrepreneurship: 1) Lack of Viable concept. 2) Lack of market Knowledge. 3) Lack of technical skill. 4) Lack of seed Capital. 5) Lack of Business Knowledge. 6) Complacency-Lack of motivation. 7) Social Stigma. 8) Time pressure and distractions. 9) Legal constraints and regulations. 10)Monopoly and protectionism. 11)Inhibitions due to patents. 12)Low Level of Commitment 13)Shortage of Resources 14)Inferior Communication Network

 INVENTION.
Means creating something new. Creative persons conceives an idea, work on it, collects the related information. Then test the idea to prove its importance. By passing through various stages of inventions, the creative persons become inventors e.g., Edison invented the bulbs. Invention is creating not only products rather new ways or methods of production, new technologies, new processes, new designs etc, an invention when made up open new markets. As consumers tastes and preferences go on changing day by day, they demand new things every time. They want something different, which is not in use by others.

INNOVATION.
is to put the ideas of inventors in action. Innovators transforms the ideas into useful application and resultant is new products, methods procedures, services etc. innovation requires analytical ability to work. Entrepreneurs are innovators, to exploit the ideas entrepreneurs makes the arrangement of materials, staff site etc. and establish an enterprise. Entrepreneurs are gifted with some competencies talents and qualities which make them different from others.

 INTRODUCTION The term entrepreneurship emerged in America in late seventies. In late seventies many big business executives in America left their jobs and started their own small scale ventures. The reason behind this was that their innovative ideas killed because these cannot be put in use by the higher authorities of the corporations. Such persons achieved success and their success became a cause rivalry among the corporation which they left. Such class of people were recognized as entrepreneurs. An American management expert, Gifford Pinchot III wrote his famous book resigned from their well paid executive position to launch their own ventures .

INTRAPRENEURSHIP

Employees of an organisation who have entrepreneurial talent and are motivated to use their abilities and initiatives and do something on their own business are known as intrapreneurs. Intraprenurship implies that entrepreneurial activities are explicitly supported within established organizations, provided with organisational resources and accomplished by company employees.

In the words of Pinchot Intrapreneur, also termed as corporate entrepreneur, as someone who violates policy, ignores the chain of command, defies established procedures, and perhaps, comes up with a new product for the company in which he is employed.

 Employees who give innovative ideas should be rewarded and they should not be punished if they make some mistake. There should be team spirit, cooperation, knowledge, sharing and spirit of encouragement within an organization. Interaction between employees and employers must be free. It is most essential feature of entrepreneurship. It is essential for entrepreneurship to identify skills of employees and give them proper training to develop their skills and talents. Employees should be motivated by giving them rewards , in the form of bonus, promotions etc.

Essentials of Intraprenurship :
1. Fradette and Michaud(1998) describe four main elements essential for the success of intraprenurship: 2. Right strategic and structural environment within the organisation. 3. Talents of employees are recognized and their key skills are trained. They should be motivated and rewarded from time to time. 4. Support system, team working, information sharing and learning are essentials for invoking the dormant talents of employees. 5. Successful employees should have be suitably rewarded while they should not be penalised for their mistakes to such extent that they are dissuaded from further initiatives. As intrapreneurial organisation should have a magnetic feeling in which style of management is more coaching than infrastructure. Employees should fond of their workplace. The enthusiasm and excitement will start spreading to others if the work culture encompasses sharing and trust.

JOSEPH A.SCHUMPETERS CONTRIBUTION TO ENTREPRENEURSHIP

Joseph A. Schumpeter (1883-1950) is the main figure in the literature of entrepreneurship as it was him who gave a well-rounded picture of theory of an entrepreneur. His book entitled Theory of Economic Development (1911), argued that all the important changes in the economy are set off by an entrepreneur and these changes then slowly work themselves through the economic system, in the form of business cycle. In the second attempt of his book, Schumpeter attempts to develop a number of economic theories- of interest, capital, credit , profit and the business cycle by relating them to the theory of entrepreneurship. Schumpeters work on entrepreneurship is much richer and distinct. His research inspired people to be innovative. He emphasised more on technological innovations rather than on organisational innovations.

Incompetence and poor management Low level of commitment Restrictions imposed by custom and tradition Involvement of high risk Socio-cultural rigidities Lack of motivation Lack of infrastructural facilties Lack of communication network Absence of entrepreneurial aptitude Low status of businessmen Market imperfections Legal formalities involved to set up a unit Low quality products Low package of salaries to employees.

Difficulties :
Terazano states that it is not so easy to achieve effective intraprenurship, some of the difficulties are as follows: 1) Efficient implementation of facilties and controls are difficult to implement without conflicts. 2) Fair remuneration and reward system is difficult to establish to ensure justice. 3) Even employees may feel extremely disappointed if they face difficulties and failures while trying their new ideas Inspite of all odds, business have to take risks and allow and encourage their employees to take up intraprenurship.

CONCLUSION:
To sum it up, it can be said that Intrapreneurs are the executives who develop commercially viable ideas, new divisions, new subsidiaries, new products or new business within existing and established business. Both entrepreneurs and intrapreneurs are the innovators and both perform the function of management. But entrepreneurs set up their own business and give shape to the ideas of intrapreneurs.