2. Entrepreneurs: DefinitionsEntrepreneur is a proprietary
capitalist that is asupplier of capital and at the same time
workingas a manager intervening between the labour andconsumer. He
effectively coordinates productiveresources to attain profit and
growth.He possesses the vision and foresight ofidentifying
opportunities in a changingenvironment and becomes an economic
agentwho transforms demand in to supply for profits.4/19/2013 6:34
AM2 Concept of Entrepreneurship 3. UNDERSTANDING OF THE TERM The
word is derived from the French wordentreprendre which means
undertakers. The word referred to those who undertook therisk of
starting a new enterprise. The word entrepreneurship has a very
wide rangeof meaning. In one extreme, an entrepreneur isone who
pioneers a change and in the otherextreme he is one who works for
himself. Entrepreneurship is among the four mainstreameconomic
factors land, labour, capital andentrepreneurship.4/19/2013 6:34
AM3 Concept of Entrepreneurship 4. According to Richard Cantillon
(1755) a Frencheconomist introduced the concept ofentrepreneurship
in economics. As per him an entrepreneur is one who buys aproduct,
repacks and transforms the farmsproduce to market and then sells it
at uncertainprice. Thus he takes decisions regarding
resourceallocation and bears the consequential risks. He evidently
seeks best opportunities for highestyields/profit.4/19/2013 6:34
AM4 Concept of Entrepreneurship 5. According to Adam Smith (1776)
entrepreneurswere economic change agents who reacted
toenvironmental changes. They were agents who converted new demand
into supply. Entrepreneur was a proprietary capitalist thatis a
supplier of capital and at the same timeworking as a manager
intervening between thelabour and consumer.4/19/2013 6:34 AM5
Concept of Entrepreneurship 6. Definition-Entrepreneurship is a
multi-dimensional taskdefined differently by different
authorities.There is no indisputable definition ofentrepreneurship.
Some are discussed below: The American Heritage Dictionary defines
anentrepreneur to be "a person whoorganizes, operates, and assumes
the risk forbusiness ventures." Sociologists assert that
entrepreneur brings inoverall change through innovation for the
good ofthe society. He contributes in modernizing society.4/19/2013
6:34 AM6 Concept of Entrepreneurship 7. According to Joseph
Schumpeter (1950)entrepreneur is one who coverts a new invention
oridea in to successful innovation.He said that entrepreneurs are
the business leadersnot simple owners of capital. Schumpeter in his
definition made the distinctionbetween entrepreneurs and inventors
clear.The inventor might create a new product but theentrepreneur
gathers resources, organizes talent andprovides leadership to make
the venture acommercial success.4/19/2013 6:34 AM7 Concept of
Entrepreneurship 8. In Peter Druckers view (1985) Entrepreneurship
isneither a science nor a art. It is a practice. It is not
justabout making money. It is all about imagination,flexibility,
creativity, willingness to think conceptually,readiness to take
risk. Acc to H.N.Pathak- Entrepreneurship involves1.Perceptoin of
an opportunities.2.organizing an industrial unit.3.Running the
industrial unit as profitable, going &growing concern.4/19/2013
6:34 AM8 Concept of Entrepreneurship 9. 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,
LaxmanraoKirloskar entrepreuners? Was Ohno the GM of Toyota Motors
whointroduced many innovative measures thatrevolutionized
automobile industry anentrepreneur?4/19/2013 6:34 AM9 Concept of
Entrepreneurship 10. Now founders of small industries/ small
business,trading establishments etc are loosely termed
asentrepreneurs. They might have the attributes of an
entrepreneurbut they are not entrepreneurs in the purestsense of
the term, if they have not innovated. They can just be called
businessmen withentrepreneurial attributes of risk taking
andorganizing.4/19/2013 6:34 AM10 Concept of Entrepreneurship 11.
Professionals in corporate organizations oftenexhibit high degree
of innovativeness. But theycannot be called entrepreneurs because
they areessentially salaried employees. This form of corporate
entrepreneurship alsocalled Intrapreneurship emerges within
existingenterprise. Intraprenurs introduce innovative ideas in
theorganizations they work for and thus add greatvalue.4/19/2013
6:34 AM11 Concept of Entrepreneurship 12. Few examples-(for a
better understanding of the terms entrepreneurshipand innovation)1.
Mary Quant, the English fashiondesigner, arguably invented the
miniskirt in thesixties. But she definitely was the first toname,
market and popularize the product. Skirtswere not a new outfit but
her redefining thehemline and popularizing it was innovativeenough
to call her an entrepreneur.4/19/2013 6:34 AM12 Concept of
Entrepreneurship 13. 2. Jeff Bezos, the founder of Amazon (a
Web-basedbookstore) was the fist to sell books online on a
largescale and patented the one-click system for onlinebuying.
Though selling books is not an innovation in itself,Jeff Bezos was
innovative in the use of the Internet as aviable marketing and
sales channel for selling books.So an individual could be termed as
an entrepreneur if heor she sells a product or service using new
systems and/or mediums of marketing, distribution or
productionmethods as a basis for a new business venture.4/19/2013
6:34 AM13 Concept of Entrepreneurship 14. 3. Stuart Skorman was the
founder of Reel.com, whichis essentially one of the first cyber
movie stores. It hasa 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 thefirst online store to expand
by opening an offlinestore. Stuart Skorman felt that by doing so,
the onlinestore could be an advertisement for the offline storeand
vice versa, thus strengthening this click andmortar business
venture.It was an example of creativity and innovation in thefield
of e-commerce.4/19/2013 6:34 AM14 Concept of Entrepreneurship 15.
STAGES OF ENTREPRENEURSHIPFundamentally 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 theventure, identifies needed
resources using a business plan, andidentifies strategies for
penetrating markets or protectingintellectual property;3.
Resourcing: In which the entrepreneur identifies and acquiresthe
financial, human, and capital resources needed for theventure
start-up,4. Actualization: In which the entrepreneur operates the
ventureand utilizes resources to achieve its goals and objectives5.
Harvesting: In which the entrepreneur decides on the
venturesgrowth, development, or even demise.4/19/2013 6:34 AM15
Concept of Entrepreneurship 16. BENEFITS OF
ENTREPRENEURSHIPBenefits of entrepreneurial activities are immense
both in termsof personal growth and contribution to the society.
Only a fewhave been listed below: Opportunity of huge personal
financial gain. Scope of high order of Job satisfaction, sense
ofachievement, 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 ofmodern technology.4/19/2013 6:34 AM16 Concept of
Entrepreneurship 17. 4/19/2013 6:34 AM17 Concept of
Entrepreneurship 18. 4/19/2013 6:34 AM18 Concept of
Entrepreneurship
