CONCEPT OF
ENTREPRENEURSHIP
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Entrepreneurship is one of the four mainstream
economics factors – land, labour, capital &
entrepreneurship.
Different economists have different opinion about
entrepreneurship.
Richard Cantillon, Frank H. Knight, J.B. Say developed
the concept of entrepreneurship.
Schumpeter considered entrepreneur is the source of
dynamic change which leads to economic development.
According to Kerzner, “Entrepreneurship means
alertness towards profit opportunities.
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“Entrepreneur precedes entrepreneurship”
According to A.H.Cole, “ Entrepreneurship is the purposeful
activity of an individual or a group of associated
individuals, undertaken to initiate, maintain or organise a
profit-oriented business unit for the production or
distribution of economic goods & series”. Therefore
entrepreneurship can be defined as the prosperity of
mind to take calculated risks with confidence to achieve a
pre-determined business or individual objective.
Mc-Clelland identifies two characteristics of
entrepreneurship
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Doing things in a new and better way.
Decision making under uncertainty.
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Entrepreneur
Refers to a person.
Creator.
Organiser.
Decision maker.
Initiator.
Leader.
Motivator.
Risk Taker.
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Entrepreneurship
Refers to a process.
Creation.
Organisation.
Decision making.
Initiative.
Leadership.
Motivation.
Risk Taking.
Importance of Entrepreneurship
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Intangible factor.
Moving Force.
Leads to establishment & management of Small Business
enterprises & setting up these units.
Acts as a solution to the baffling problems like over
population, unemployment, under employment and poverty.
Leads to:
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Generation of employment.
Increasing per capita income.
Helping in capital formation.
Balanced regional development.
Promoting self reliance.
HURDLES TO THE SUCCESS OF ENTREPRENEURSHIP
IN INDIA
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Inadequate infrastructural facilities.
Shortage of Capital.
Shortage of Technical Knowledge.
Shortage of Transport Facilities.
Absence of Cheap & Good quality Raw-Material.
Shortage of Power.
FEATURES OF ENTREPRENEURSHIP
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Economic Activity.
Decision making about resource allocation.
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Innovative Activity.
Process of doing new thing i.e. introduction of new good,
new method of production, new market, new source of
supply of raw-material, new industry, etc.
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A function of High Achievement.
Doing new things in a different and better way.
Decision making under uncertainity.
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Creative & Purposeful Activity.
The ability to bring something new into existence.
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Organising function.
Brings together various factors of production, ensures the
continuing management & reduces risk bearing function.
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Risk bearing function.
Organising, Coordinating, Supervising & undertaking risk
& handling economic uncertainty.
INVENTIONS & INNOVATIONS.
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Inventions
Creating Something New
Resulting in New
Knowledge.
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Innovations
Transfering an idea
into application.
Resulting in new
products, services or
process.
THEORIES OF ENTREPRENEURSHIP
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Economic Theory:
1. Versatile and multi – disciplinary.
2. Combining various factors of production.
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Sociological Theory:
1. Social movement.
2. Cultural values, family ties, trust effect, entrepreneurship.
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Psychological Theory:
1. It leads to setting & achieving goals by accepting moderate
risks.
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Anthropological Theory:
1. Entrepreneurship behavior means to connect different
spheres in the society.
Problems in Growth of Entrepreneurship
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Incompetence and Poor Management.
Involvement of High Risks.
Socio- Cultural Rigidities.
Lack of Motivation.
Lack of Infrastructural Facilities.
Lack of Communication Network.
Market Imperfection.
Legal Formalities.
INTRAPRENEURSHIP
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Establishment of Entrepreneurship activity in large
organisations to improve Products & Services.
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Intrapreneur are the employees of organisations who
have something new, but does not have funds to start
new business.
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Don’t Presume Ownership.
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No Financial Risk.