Concept Of Entrepreneurship

 Entrepreneurial Management

Entrepreneurship

                         Meaning and Definition of entrepreneur The word entrepreneur has come from the France word “entreprendra” which means to undertake, to pursue opportunities to fulfill needs and wants through innovation to undertake business. In the year 1725 the word entrepreneur was first brought into economics by a social scientist named Richard cantilion. the expert who invented the theory of entrepreneurship was David mc cellion in 1961. There was various definition of entrepreneur.

There was various definition of entrepreneur. 

According to America heritage dictionary;

“Entrepreneur is a person who organizes operates and assumes the risk for business venture” 

The dictionary of social sciencehas defined entrepreneur from functional viewpoint. According to it “entrepreneur is a person 1) who exercise the function or 2) initiating coordinating controlling or institute major change in a business enterprise and or 3) bearing those risk of operation which arise from the dynamic nature of society and imperfect knowledge of the future which can cast through transfer calculation or elimination.

According to encyclopedia Britannica 

“Entrepreneur as the individual who bears the risk of operating a business in the face of uncertainty about future condition and who is rewarded accordingly by his profit or losses”. 

Richard cotillion says

“Entrepreneur is the agent who purchased the means of production for combination into marketable product”. 

So we can say that entrepreneur a person who takes risk for establishing a new venture or business in order to create utility for the welfare of human being as well as for him of herself. She or he is always a person who seeks out opportunities and takes on challenges.

Meaning and Definition of Entrepreneurship:

Entrepreneurship is considered as of assuming the risk of an entrepreneur.

Characteristics of an entrepreneur:

An entrepreneur is a person who initiates a business venture. there are some essential feature of an entrepreneur which are describe below.

Risk taking capability: every business has risk of time money etc .so an entrepreneur must have the risk taking capability. 

Creativity and innovation: an entrepreneur has an initiator possesses creativity and innovative power.

Need for achievement: the entrepreneur has strong desire to achieve the goal of business. He is always driven by the needs for achievement. 

Need for autonomy: an entrepreneur does not like to be under anybody. it is the need for autonomy which drives a person to be an entrepreneur. 

Internal locus of control: an entrepreneur believes in him his work.

External locus of control: he also believes in fate for ultimate result.

Self confident: an entrepreneur has confidence in him.

Leadership capability: an entrepreneur must have leadership capability to lead works under him.

Industriousness: a successful entrepreneur must have leadership capability to lead workers working under him.

Decision making capability: the entrepreneur has capability to take quick decision .

Adaptability: he has the capacity to adapt with any kind of situation that arise in the enterprise.

Foresightness: The entrepreneurs have a good foresight to know about future business environment. · Others; the other feature are dynamism, ambition, education and training, long term involvement, future orientation.

Qualities of successful entrepreneur:

To become a successful as an entrepreneur in its business life, a businessman should possess a quite a number of essential qualities. Those are noted below:

1. Moderate risk taking: an entrepreneur always takes calculated risk to operate the organization

2. Hard work: an entrepreneur is very much hard worker, he or she always busy with various types work.

3. Accountability: a successful entrepreneur is accountable well as his associates always accountable to him.

4. Educated in real sense: successful entrepreneur is educated In real sense .he tries to implement his organizational objectives through his education.

5. Analytical mind: a successful entrepreneur is analytical minded. he scrutinizes every activity on the organization.

6. Dynamic leadership: a successful entrepreneur is always dynamic to operate the organization 

7. Presence of mind: a successful entrepreneur is always at present of mind he is always aware of activities that to happening in the organization and around him

8. Accommodative: a good entrepreneur has the capacity to make his own place at every sector

9. Courageous and tactful: Corsages and techniques is very much essential for a successful entrepreneur

10. Maker of right decision: A successful entrepreneur makes right decision in right time in right place

11. Foresighted: a successful entrepreneur foresights the future and take decision accordingly

12. Right perception of things: A successful entrepreneur things in a right way

13. Enjoy simple life: A successful entrepreneur always deals a simple life a general people of the society

14. Strong desired to success: A successful entrepreneur have a strong desire to success. he is driven by the desire to success

15. Innovation: innovation is the process of making new something. A successful entrepreneur is innovative

16. Self confidence: A successful entrepreneur is self confidence. does not really on other for decision or fate

17. Goal setting: a successful entrepreneur set the goal

18. Keen observation: A successful entrepreneur always observes the origination

19. Sociable: A successful entrepreneur is sociable person

20. Loves to work : A successful entrepreneur is very much addicted to work

21. Loves new ideas: A successful entrepreneur loves new ides of the organization

22. Team builder: A successful entrepreneur builds a suitable team

23. Clean understanding: A successful entrepreneur clearly understands every things

24. Ability to conceptualize: A successful entrepreneur is able to conceptualize the reality

25. other: the other qualities are patience, optimistic ,strategist, etc

Relationship between entrepreneur and entrepreneurship: 

The relationship between entrepreneur and entrepreneurship are discussed below:

                    Entrepreneur                              vs                         Entrepreneurship 

         1) Entrepreneur is a person.                                              Entrepreneurship is a process. 

        2) Entrepreneur is an organizer.                                         Entrepreneurship is an organization.

        3) Entrepreneur is an innovator.                                         Entrepreneurship is an innovation.

        4) Entrepreneur is a risk bearer.                                         Entrepreneur is a risk bearing.

        5) Entrepreneur is a motivator.                                          Entrepreneur is a motivation.

        6) Entrepreneur is a creator.                                               Entrepreneur is a creation.

        7)Entrepreneur is a visualizer.                                            Entrepreneur is a vision. 

        8)Entrepreneur is a leader.                                                 Entrepreneurship is a leadership.

        9)Entrepreneur is an imitator.                                            Entrepreneurship is an imitation.

Distinction between an Entrepreneur and a Manager. 

Sometimes the word entrepreneur and manager are used as synonyms. In fact there are some differences between them. They are described below –

1. Motive Thinking function. His main motive is to start a new venture by setting up an enterprise. Doing function. His main motive is to render service to the organization already established. 

2. Status Entrepreneur is the owner of the enterprise. Manager is the service holder or servant of the enterprise. 

3. Risk bearing Being owner of the enterprise assume all risk and uncertainty involved in the enterprise. As the servant don’t take or bear risk and uncertainty involved in the organization. 

4. Reward Reward is profit which is highly uncertain. Get salary as a reward which is fixed and certain. 

5. Innovation An entrepreneur is an innovator. A manager is not an innovator in that sense he implements the plan prepared by the entrepreneur. 

6. Qualification They are not highly qualified but have extraordinary experience forecasting. They are highly qualified (institutional education). After the above discussion we can say that at a time an entrepreneur can be a manager but a manager cannot be an entrepreneur.

Different types of entrepreneurs: 

On the basis of nature Clarence Danhof classified entrepreneurs into four categories. These are

1. Innovative entrepreneurs: An innovative entrepreneur in one, who introduces new goods, inaugurates new method of production, discovers new market and recognizes the enterprise. It is important to note that such entrepreneurs can work only when a certain level of development is already achieved and people look forward to change and improvement.

2. Imitative entrepreneurs: These types of entrepreneurs creatively imitate the innovative technical achievement made by another firm. Imitative entrepreneurs are suitable for underdeveloped countries as it is hard for them to bear the high cost of innovation.

3. Fabian entrepreneurs: Fabian entrepreneurs are characterized by very great caution and skepticism to experiment any change in their enterprises. They usually do not take any new challenge. They imitate only when it becomes perfectly clear that failure to do not so would result in a loss of the relative position in the enterprise.

4. Drone entrepreneurs: They are characterized by a refusal to adopt any change even at cost of severely reduction of profit.

Causes of success and failure of entrepreneur: 

An entrepreneur may sometime become successful and sometime becomes failure. There are some causes of such success and failure. They are noted below:

1. Selection of business: It is an important aspect. That means an entrepreneur has to determine what type business he is going to start. Form various points of view the feasibility of the business should be tested.

2. Proper planning: Proper planning me s also important. For planning, planning premises like political, economic, social premised should be considered first. The steps of planning should be followed properly.

3. Initial capital: if the initial capitals are not an optimal level the organization would fall. So whether the enterprise is big or small the initial capital should be sufficient enough.

4. Determination of market demand: Through research the demand in the market should be identified. Both for long term and short term it should be considered.

5. Marketing of product: If the promotion policy, channel of destitution, transportation is not good the enterprise would fall.

6. Education and experience: One of the important tasks of the entrepreneurs is to select right person for the right post because the success of an enterprise depends on the right selection of employees.

7. Joint initiative: One may have much money and another may have more merit. Through joint initiative it can be balanced. But sometime for joint initiative misunderstanding arise, or sometimes corruption occur which may result in fall of enterprise.

8. Employment: Recruitment and appointment should be properly done. Those who have specialized skill should be appointed to that specialized job. Inefficient, corrupted employees may be responsible for fall of business.

9. Location of business: Site selection is an important factor. While starting a new business, an entrepreneur should think about the location of the business. In this case, many factors should be considered such as availability of raw materials, proper communication system, availability of labor, marketing facilities and so on.

10. Qualities of management: The management must have a minimum quality to success otherwise it would fall.

Support Institutions

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Financial Institutions:

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