Professional Documents
Culture Documents
ENTREPRENEUR
The word entrepreneur has been taken from the French language
where it cradled and originally meant to designate an organizer of
musical or other entertainments.
Oxford English Dictionary (in 1987) : the director or a manager of
a public musical institution, one who gets-up entertainment,
especially musical performance.
In the early 16th century, it was applied to those who were engaged
in military expeditions. It was extended to cover civil engineering
activities such as construction and fortification in the 17th century.
It was only in the beginning of the 18th that the world was used
refer to economic aspects. In this way, the evolution of the concept
of entrepreneur is considered over more than four centuries.
These views are broadly classified into three groups, namely,
risk-bearer, organizer and innovator.
CHARACTERISTICS OF AN ENTREPRENEUR
1)Hard Work
2)Desire for High Achievement
3)Highly Optimistic
4)Independence
5)Foresight
6)Good Organizer
7) Innovative
FUNCTIONS OF ENTREPRENEURS
1)Idea generation
2)Determination of objectives
3)Raising of funds
4)Procurement of raw materials
5)Procurement of machinery
(a) The details of technology
(b) Installed capacity of the machines
(c) Names of the manufacturers and suppliers
(d) Whether the machines are indigenously made or foreign made
(e) After-sales service facilities
(f) Warranty period of the machineries
6) Market research
7) Determination of form of enterprise
8) Recruitment of manpower
(a) Estimating manpower need of the organization
(b) Laying down of selection procedure
(c) Devising scheme of compensation
(d) Laying down the rules of training and development
9) Implementation of the project
TYPES OF ENTREPRENEURS
1)Innovating Entrepreneurs
2)Imitative Entrepreneurs
3)Fabian Entrepreneurs
4)Drone Entrepreneurs
Features
Entrepreneur
Managers
Motive
He
understands
the enterprise
Status
already
set
up
by
someone else.
enterprise
owned
by
the
entrepreneur
Risk-bearing An entrepreneur being the owner of A manager as a servant does not
the enterprise assumes all risks and bear any risk involved in the
uncertainty involved in running the enterprise.
enterprise.
Rewards
Innovation
ENTREPRENEUR IN ECONOMIC
DEVELOPMENT
a)Promotes Capital Formation
b)Creates Large-Scale Employment Opportunities
c)Promotes Balanced Regional Development
d)Reduces Concentration of Economic Power
e)Wealth Creation and Distribution
f)Improvement in the Standard of Living
g)Promotes Country's Export Trade
h)Facilitates Overall Development
SCHUMPETERIAN THEORY OF
ENTREPRENEURSHIP
According to Schumpeter, an entrepreneur is one who perceives
the opportunities to innovate, i.e. to carry out new combinations
or enterprise. Innovation involves problem solving and the
entrepreneur is a problem solver. In his views, the concept of
new combination leading to innovation covers the following five
cases.
Presentation
of
disequilibrium
situation
through
narrow
because
individuals,
'though
operate
Walker on entrepreneurship
According to Walker, entrepreneur is a person who organizes and
coordinates the various agents of production.
Drucker on entrepreneurship
Peter F. Drucker opined that "an entrepreneur is one who always
searches for change, responds to it and exploits it as an
opportunity."
EMERGENCE OF ENTREPRENEURIAL
CLASS
1. Period I: Entrepreneurship in Ancient period
2. Period II: Entrepreneurship in pre-Independence era, i.e. before
1850
3. Period III: Entrepreneurship between 1850-1947
4. Period
IV: Entrepreneurship
Independence period
in
1947
and
onwards-post-
counteract
the
discriminatory
policy
of
the
British
Government.
In 1964, the Bajaj group laid the foundation of Hind Lamps and
in 1949 Dalmia group established a cement factory in Orissa.