Meaning of Entrepreneurship Joseph Schumpeter revived the concept of
The word entrepreneurship originates from the entrepreneurship as an innovative function.
French word entrependre, which means “to
High Level Need for Achievement
undertake”.
The person who are motivated with the need for high
Entrepreneurship is the key to innovation,
achievement have a high level of entrepreneurial
productivity and effective competition.
activities.
When a person realizes his ability or capacity and
They have a desire to be successful in competitive
makes its practical use and establishes new business
situations.
unit this activity is known as entrepreneurship.
Search for Profitable Opportunities
Concept of Entrepreneurship:
Entrepreneurship is actively searching for
Joseph A. Schumpeter
opportunities to do new things or to do existing
Entrepreneurship is an innovative function. It is a
things in new ways for a profitable business.
leadership rather than an ownership. The process of
Potential entrepreneurs are always looking for
innovation may be in the form of:
unique opportunities to fill needs and wants.
Introduction of a New Product
Wealth Creation
Use of a New Method of production
Entrepreneurs are economic agents who
Opening of a New Market
transform demand into supply and they transform
The conquest of New Source of supplying Raw
resources into useful goods & services, that lead to
Materials
creation of wealth and industrial growth.
Traditional Concept
Change Agent
Ability and aptitude to bear various types of This is an agent who transforms the resources into
business-related risk and facing of uncertainties. useful goods and services, often creating the
circumstances that lead to industrial growth.
Modern Concept
Process of Creating New Values
The ability to establish new enterprise, and carrying This is also a modern concept.
out various new improvements in the enterprise. Through entrepreneurship, new products, services,
Risk Bearing Capacity transactions, approaches, resources, technologies
Risk refers to the variability of outcomes (or returns). and market are created that contribute some value
Entrepreneurs are “risk-taker”- people who don’t to a community or marketplace.
fear anything in business. Value can be created- when resources are
Entrepreneurship involve taking of risks and making transformed into output such as products &
the necessary investments under conditions of services.
uncertainty. Subject or Discipline
Organization Building Ability Entrepreneurship education is a fast-growing
Entrepreneurship is ability to connect and coordinate area in Colleges & Universities.
the productive resources to organize a venture and Most universities in the countries did research
enterprise. on entrepreneurship, followed by training
It is bringing together the factors of courses.
production or and to organize them. Due to fully developed subject, many
Entrepreneur makes decisions about resource entrepreneurial schools have been opened.
allocations. Definition of Entrepreneurship
Managerial and Leadership Skills -it is classified in:
Entrepreneurship is the process of bringing together Established of new enterprises based
creative and innovative ideas and actions with the Function based
management & leadership skills to mobilize the Combination based
appropriate people, money and operating resources Decision making based
to create wealth in the process. Innovation based
Entrepreneurs can translate their ideas into action Function Based
with management and leadership skills. Entrepreneurship is an innovative function. It is a
leadership rather than an ownership- Joseph A.
Innovative Function Schumpeter
Innovation is the specific function of It reveals various opportunities and abilities like
entrepreneurship. forecasting of economic opportunities and ability
It is the means by which the entrepreneur either to organize various sources and technique of
create new wealth- producing resources or production.
endows existing resources with enhanced potential
for creating wealth.
Combination Based Public sector
Many scholars elaborate entrepreneurship as the Private sector
combination of functions and activities, and Entrepreneurship
organization. Own boss
H.W Johnson, Entrepreneurship is a composite of Make own plans
three elements- inventions, innovation, and Creative activity
adaptions Can be negative sometimes
Decision Making Based Generally surplus
Entrepreneurship is that form of social decision Creates wealth, contribute to GDP
making performed by economic inventions- Lamb Can choose from-
It focus on social responsibilities and role of Industry
business Trade or
Does not lay emphasis on doing innovations Service Enterprise
directly in the society. Who is Entrepreneur?
Innovation Based Is an individual who starts a business venture and
Entrepreneurship can be described as creative and is responsible for its development.
innovative response to the environment- Prof. Rao And individual who bears the risk of operating a
and Mehta. business in the face of uncertainty.
Entrepreneurship is an activity of linking the One who organizes, manage and assumes the risk
business with the society and environment of a business or enterprise.
Components or Elements of Entrepreneurship Characteristics of Entrepreneur
Entrepreneur 1. Mental Ability- It must have creative thinking and must
Pursuit of Opportunities be able to analyze problems and situations. It should be
Innovation able to anticipate changes.
Organization creation 2. Business Secrecy- it should guard the business secrets
Creating Values from his competitors.
Profit or non-profit- for- profit 3. Clear Objectives- it must have clear objectives as to the
Growth exact nature of business or nature of goods to be produced.
Uniqueness 4. Human relations- it must maintain good relation with the
Process customers, employees, etc. To maintain good relationship
Characteristics of Entrepreneurship he should have emotional stability, personal relations,
Innovation risk tactfulness, and consideration.
Bearing Capacity 5. Communication Ability- it should have good
Creative Decision communication skills means both sender and receiver
Creating and Managing Resources should understand each others message.
Managerial Skills and Leadership 6. Technical Knowledge- it should have sufficient technical
Gap Filling Function knowledge.
Business Oriented Tendency Importance of Entrepreneurship:
Economic Activity -reduces poverty level
Producing results -increases employment
Lifestyles -fulfills the demand of people
Concept of Entrepreneur -helps to develop Economic Condition of a Country
It refers to a person Causes of Failure
It refers to creator = lack of visible concept
It refers to organizer = lack of market knowledge
It refers to Decision maker = lack of seed capital
It refers to initiator = lack of business knowledge
It refers to leader = lack of motivation
It refers to motivator = time pressure and distractions
It refers to a risk taker =legal constraints and regulations
Wage Employment =monopoly and protectionism
Work for others
Follow instructions
Routine job
Earning is fixed, never negative
Does not create wealth
Can be choose from-
Government service
Entrepreneur Entrepreneurship
Person Process
Visualizer Vision
Creator Creation
Organizer Organization
Innovator Innovation
Planner Planning
Leader Leadership
Types of Entrepreneurships
nature -Innovating, imitative,
-Fabian, drone
Activity Sole, work power, builde, product innovating, format,
unused resource user, take over, capital accumulating
Ownership Private, government, joint sector, Co-operative
Size Small scale
Large scale
Social Exploitative
ideal
Number Sole, group
Copreneurs, institutional
Role And Importance of Entrepreneurship
Help in bringing changes in social framework
Contribution in the formation of industrial climate
Contribution to generate employment
opportunities
Contribution to raise the standard of living
Help in removing regional disparities
Encouragement to investigation & research
