Definitions of an entrepreneur Stems: from the French word entrependre meaning one who undertakes or one who is a gobetween

1725: Richard Cantillon: An entrepreneur is a person who pays a certain price for a product to resell it at an uncertain price, thereby making decisions about obtaining and using the resources while consequently admitting the risk of enterprise. ENTREPRENEURSHIP According to Peter Drucker Entrepreneurship is defined as a systematic innovation, which consists in the purposeful and organized search for changes, and it is the systematic analysis of the opportunities such changes might offer for economic and social innovation. CONCEPT OF WOMENENTREPRENEURS GENERAL CONCEPT: A woman or a group of women who initiate, organize and run a business. Women who innovate, imitate or adopt a business activity are called women entrepreneurs. Functions of Women Entrepreneurs Women entrepreneur performs all the functions an entrepreneur performs while establishing an enterprise which are already discussed under the heading functions of an entrepreneur. However, Federick Harbison has enumerated five entrepreneurial function of women entrepreneur as follows: 1. Exploration of the prospects of starting a new business enterprise, 2. Undertaking of risks and handling of economic uncertainties involved in the business. 3. Introduction of innovations or imitation of innovations. 4. Co-ordination, administration and control. 5. Supervision and leadership. 1. Innovation: Innovation is the basis function of woman entrepreneur. She has to introduce new product, creation of new markets, application of new process of production, discovery of new and better sources of raw materials and developing a new and better form of industrial organization. 2. Risk taking: It is the fundamental function of a woman entrepreneur. It refers to take the responsibility for loss that may occur due to unforeseen contingencies of the future.

A woman entrepreneur visualizes opportunities for introducing new ideas and handles economic uncertainty. She is a self-confident and highly optimistic lady willing to assume the risk involved in innovations, new ventures and expansion of an existing venture. 3. Organization building: Organization and management of the enterprise is the main function of a woman entrepreneur. It refers to bring together the various factors of production. She alone decides the lines of business to expand and capita to employ. FUNCTIONS OF WOMEN ENTREPRENEURS 1. 2. 3. 4. 5. 6. 7. Functions for establishment of an enterprise: Idea generation and screening Determination of objectives Project preparation Product analysis Form of business Raising funds Procuring men, machine and materials.

PROBLEMS FACED BY WOMEN ENTREPRENEUR

Women entrepreneur encounter two sets of problems, viz,general problems of entrepreneurs. These are discussed as follows:PROBLEMOFFINANCE Finance is regarded as life blood" for any enterprise, is it big or small. However, women entrepreneurs suffer from shortage of finance on two counts. Firstly, women do not generally have properly on their names to use them as collateral for obtaining funds from external sources. Thus, their access to the external sources of funds is limited. Secondly, the banks also consider women less credit- worthy and discourage women borrowers on the belief that they can at any time leave their business. Given such situation, women entrepreneurs are bound to rely on their own savings, if any and loans from friends and relatives which are expectedly merge and negligible. Thus women entrepreneur fail due to the shortage of finance. SCARCITYOFRAWMATERIAL: Most of the women enterprise is plagued by the scarcity of raw material and necessary inputs. Added to this are the high prices of raw material, on the one hand, and getting raw material, on the one hand, and getting raw material at the minimum, on the one hand, and getting raw material at the minimum of discount, on the other. STIFFCOMPETITION: Women entrepreneurs do not have organizational set up to pump in a lot of money for canvassing and advertisement. Thus, they have to face a stiff competition for marketing their products with both organised sector and their male counterparts. Such a competitors ultimately results in the liquidation of women enterprises. LIMITEDMOBILITY: Unlike men, women mobility in INDIA is highly limited due to various reasons. A single woman asking for room is still looked upon suspicion. Cumbersome exercise involved in starting an enterprise coupled with the officials humiliating attitude towards women compels them to give up idea of starting an enterprise.

LACKOFEDUCATION: In India, around 60% of women are still illiterate. Illiteracy is the root cause of socioeconomic problems. Due to the lack of education and qualitative education, women are not aware of business, technology and market knowledge. Also, lack of education causes low achievement motivation among women. Thus, lack of education creates problem for women in the setting up and running of business enterprise.

LOWRISKBEARINGABILITY: Women in India lead a protected life. They are less educated and economically and not selfdependent. All these reduce their ability to bear risk involved in running an enterprise. Riskbearing is an essential requisite of a successful entrepreneur. In addition to above problems, inadequate infrastructural facilities, shortage of power, high cost of production, social attitude, low need for achievement and socio- economic constraints also holds the women

backfromenteringintobusiness. FunctionsofanEntrepreneur An entrepreneur performs a series of functions necessary right from the genesis of an idea up to the establishment and effective operation of an enterprise. He carries out the whole set of activities of the business for its success. He recognises the commercial potential of a product or a service, formulates operating policies for production, product design, marketing and organisational structure. He is thus a nucleus of high growth of the enterprise. According some economists, the functions of an entrepreneur is classified into five broad categories: 1. Risk-bearing function, 2. Organisational function, 3. Innovative function, 4. Managerial function, and 5. Decision making function. 1. Risk-bearing function: The functions of an entrepreneur as risk bearer are specific in nature. The entrepreneur assumes all possible risks of business which emerges due to the possibility of changes in the tastes of consumers, modern techniques of production and new inventions. Such risks are not insurable and incalculable. In simple terms such risks are known as uncertainty concerning a loss. The entrepreneur, according to Kinght, "is the economic functionary who undertakes such responsibility of uncertainty which by its very nature cannot be insured or capitalised or salaried too." Richard Cantillon conceived of an entrepreneur as a bearer of non-insurable risk because he described an entrepreneur as a person who buys things at a certain price and sells them at an uncertain price. Thus, risk bearing or uncertainty bearing still remains the most important function of an entrepreneur which he tries to minimise by his initiative, skill and good judgement. J.B. Say and other have stressed risk taking as the specific function of the entrepreneur. 2. Organisational Function: Entrepreneur as an organiser and his organising function is described by J.B. Say as a function whereby the entrepreneur brings together various factors of production, ensures continuing management and renders risk-bearing functions as well. His definition associates entrepreneur with the functions of coordination, organisation and supervision. According to him, an entrepreneur is one who combines the land of one, the labour of another and the capital of yet another and thus produces a product. By selling the product in the market, he pays interest on capital, rent on land and wages to labourers and what remains is his/her profit. In this way, he describes an entrepreneur as an organiser who alone determines the lines of business to expand and capital to employ more judiciously. He is the ultimate judge in the conduct of the business.

Marshall also advocated the significance of organisation among the services of special class of business undertakers. 3. Innovative Function: The basic function an entrepreneur performs is to innovate new products, services, ideas and information for the enterprise. As an innovator, the entrepreneur foresees the potentially profitable opportunity and tries to exploit it. He is always involved in the process of doing new things. According to Peter Drucker, "Innovation is the means by which the entrepreneur either creates new wealth producing resources or endows existing resources with enhanced potential for creating wealth". Whenever a new idea occurs entrepreneurial efforts are essential to convert the idea into practical application. J.A. Schumpeter considered economic development as a discrete dynamic change brought by entrepreneurs by instituting new combinations of production, i.e. innovation. According to him innovation may occur in any one of the following five forms. The introductions of a new product in the market with which the customers are not get familiar with. Introduction of a new method of production technology which is not yet tested by experience in the branch of manufacture concerned. The opening of a new market into which the specific product has not previously entered. The discovery of a new source of supply of raw material, irrespective of whether this source already exists or has first to be created. The carrying out of the new form of organisation of any industry by creating of a monopoly position or the breaking up of it. 4. Managerial Function: Entrepreneur also performs a variety of managerial function like determination of business objectives, formulation of production plans, product analysis and market research, organisation of sales procuring machine and material, recruitment of men and undertaking, of business operations. He also undertakes the basic managerial functions of planning, organising, co-ordinating, staffing, directing, motivating and controlling in the enterprise. He provides a logical and scientific basis to the above functions for the smooth operation of the enterprise thereby avoids chaos in the field of production, marketing, purchasing, recruiting and selection, etc. In large establishments, these managerial functions of the entrepreneur are delegated to the paid managers for more effective and efficient execution. 5. Decision Making Function: The most vital function an entrepreneur discharges refers to decision making in various fields of the business enterprise. He is the decision maker of all activities of the enterprise. A. H. Cole described an entrepreneur as a decision maker and attributed the following functions to him. He determines the business objectives suitable for the enterprise. He develops an organization and creates an atmosphere for maintaining a cordial relationship with subordinates and all employees of the organization.

He decides in securing adequate financial resources for the organisation and maintains good relations with the existing and potential investors and financiers. He decides in introducing advanced modern technology in the enterprise to cope up with changing scenario of manufacturing process. He decides the development of a market for his product develops new product or modify the existing product in accordance with the changing consumer's fashion, taste and preference. He also decides to maintain good relations with the public authorities as well as with the society at large for improving the firms image before others. Entrepreneurs perform a number of functions from the stage of starting a business to its level of success. These functions include: 1. Planning This is the first step in setting up an enterprise. The planning process involves:

Scanning for the best suitable idea Selection of the product line Determining the type of business organization (individual or partnership or corporate) Estimation of capital resources Selection of location/site Studying the government policies and regulations Studying the availability of labour force Studying of the market and marketing strategy to be adopted

2. Organization An entrepreneur co-ordinates, assembles and supervises other factors of production - land, labour and capital during the promotion and performance stage for optimum utilization of resources. 3. Decision-making As a decision maker, an entrepreneur takes various decisions regarding the following matters:

Determining the objectives of the business enterprise Procurement of machinery, material, men, etc Acquisition of efficient technology and new equipment Development of a market for the product

4. Management This involves the operations of the venture and managing of day-to-day activities. It involves direction of men, machine, material and other resources. 5. Innovation This may involve:

Launching of a new product on the market Introduction of new technology in production Creation of new markets Discovery of new and better sources of raw materials

6. Risk bearing An entrepreneur undertakes the responsibility for loss that may arise due to un foreseen circumstances in the future. 7. Uncertainty bearing There are some risks which cannot be insured against and incalculable, for example uncertain trends in the market. ENTREPRENEUR vs. MANAGER 1. Entrepreneur - An entrepreneur is involved with the start-up process. Manager - A manager with running the business over a long period of time. 2. An entrepreneur assumes financial, material and psychological risks A manager does not have to bear risks 3. An entrepreneur is driven by perception of opportunity A manager by the resources he currently possesses 4. An entrepreneur initiates change A manager follows rules & procedures 5. An entrepreneur is his own boss A manager is a hired employee 6. An entrepreneur gets uncertain rewards A manager gets fixed rewards and salary Intrapreneurs vs. Entrepreneurs Entrepreneurs provide the spark. Intrapreneurs keep the flame going. Entrepreneurs are found anywhere their vision takes them. Intrapreneurs work within the confines of an organization. Entrepreneurs face many hurdles, and are sometimes ridiculed and riddled with setbacks. Intrapreneurs may sometimes have to deal with conflict within the organization. Entrepreneurs may find it difficult to get resources. Intrapreneurs have their resources readily available to them. Entrepreneurs may lose everything when they fail. Intrapreneurs still have a pay check to look forward to (at least for now) if they fail. Entrepreneurs know the business on a macro scale. Intrapreneurs are highly skilled and specialized. 1. An entrepreneur is an independent person who starts his venture and bears full risk of his failure and enjoys the fruit of his success whereas intrapreneur is partially independent and is sponsored by the corporation in which he is working. He is also not liable to bear the losses in case of his failure. 2. An entrepreneur raises the finance from various sources and also guarantees their return

whereas an intrapreneur does not own the responsibility to raise the capital or to return it. 3. An entrepreneur has no relation with any organization whereas an intrapreneur operates within the organization where he is working. 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. Some other types of entrepreneurs: (i) Solo operators: These are the entrepreneurs who essentially work alone and if needed at all employ a few employees. In the beginning most of the entrepreneurs start their enterprises like them. (ii) Active partners: Active partners are those entrepreneurs who start or carry on an enterprise as a joint venture. It is important that all of them actively participate in the operations of the business. (iii) Innovators: Such entrepreneurs with their competence and creativity innovate new products. Their basic interest lies in research and innovative activities.

(iv)

Buyers entrepreneurs: These are the entrepreneurs who do not like to bear

much risk. They do not take the risk of production but take the risk of marketing a product i.e. wholesaler and retailer. (v) Life timers: These entrepreneurs believe business as an integral part of their life. These entrepreneurs actually inherit their family business i.e. goldsmith, potter etc. (vi) Challengers: These are the entrepreneurs who initiate business because of the challenges it presents. They believe that No risk, No gain. When one challenge seems to be met, they begin to look for new challenges.