ENTREPRENEURSHIP
The concept of Entrepreneur
The word ‘entrepreneur’ has its roots in a French word—enterprendre—which means “to undertake”. ‟ i.e.
individuals who undertake the risk of a new enterprise.
and was first defined by the Irish‐French economist Richard Cantillon. He defined an entrepreneur as an agent
who buys factors of production at certain prices in order to combine them into a product with a view to selling it at
certain prices in future.
An entrepreneur is a person who starts an enterprise and converts a situation into opportunity. A number of
definitions have been given of an entrepreneur. The economists view him/her as the fourth factor of production,
along with land, labor and capital.
To some economists, the entrepreneur is one who is willing to bear the risk of a new venture if there is a significant
chance for profit. Others emphasize the entrepreneur’s role as an innovator who markets his innovation. Still other
economists say that entrepreneurs develop new goods or processes that the market demands and are not currently being
supplied.
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The concept of Entrepreneur
Richard Cantillon: As a person, who pays a certain price to 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.
Adam Smith: An individual, who undertakes the formation of an organization for commercial purposes by
recognizing the potential demand for goods and services, and there by acts as an economic agent and transforms
demand into supply.
Joseph Schumpter: Entrepreneurs are innovators, who use the process of entrepreneurship to shatter the status quo of
the existing products and services, to set new products, new services. He describes entrepreneurs as innovators.
Peter F. Drucker: An entrepreneur is one who always searches for changes, responds to it and exploits it as an
opportunity. (For example, A quick look at changes in communications—from typewriters to personal computers to
the Internet—illustrates these ideas).
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The concept of Entrepreneur
An entrepreneur is a person responsible for setting up a business or an enterprise. He has the initiative, skill for innovation and who
looks for high achievements. He puts up new green field projects that create wealth, opens up many employment opportunities and
leads to growth of other sectors.
Entrepreneur is a person who discovers new ideas and business opportunities, bring together funds to establish a business, organizes
and manages its operations in order to provide economic goods and services, for the public.
We can define an entrepreneur as: A person who sees an opportunity in the market gathers his/her resources and creates and grows a
business venture to meet those needs. This person will bear the risk and will be rewarded with profit if the venture is successful.
In fact, according to reports by the Global Entrepreneurship Monitor, 74.1% of entrepreneurs in the U.S. mentioned that building
wealth was their motivation to start a business. However, entrepreneurs also play a far more important and fulfilling role in driving
innovation and accelerating economic growth.
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Entrepreneur is a person who:
❑ Discover a business opportunity.
❑ Develops and owns his own enterprise.
❑ Manage a business (This means that there must be planning, organization, leadership and control of all the functions)
❑ Is a risk taker and works under uncertainty for achieving the goal.
❑ Is innovative.
❑ Is dissatisfied with routine activities.
❑ Exhibits a sense of leadership.
❑ Exhibits a sense of competitiveness.
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Entrepreneur is a person who:
❑ Is oriented towards the future.
❑ Invest the necessary funds.
❑ Decide what, how, and when to produce and sell.
❑ Push the company towards growth and greater profits.
❑ Has the ability to move quickly in response to changing market needs (Flexibility)
❑ Self-confidence.
❑ Takes the initiative to combine land, capital and labor to produce goods and services.
❑ Has the ability to organize multiple people and tasks and makes business policy decisions to set the course of the
business enterprise.
Examples
There is little dispute that people who have started and developed major companies are
entrepreneurs. Examples might include Bill Gates of Microsoft who became arguably the
world’s wealthiest person, Richard Branson founder of the Virgin Group who started a series of
businesses from record companies to airlines, Ted Turner the founder of Turner Broadcasting
System including the CNN News company and Henry Ford, the founder of Ford Motors.
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A successful entrepreneur needs to possess certain abilities and qualities. These qualities include:
❑A clear vision of goals.
❑ Motivated to achieve goals, coupled with having a high degree of self‐confidence.
❑ Prepared to take moderate risks.
❑Having initiative and independence.
❑ Possessing leadership and organizational skills.
❑ Seeking creative solutions to problems.
❑ A positive outlook.
❑ Taking responsibility for decisions.
❑A positive attitude to all tasks.
❑ Being enterprising (recognizing business opportunities).
❑Operates under uncertain circumstances.
❑Manage a business ‐ This means that there must be planning, organization, leadership and control of all the functions.
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SKILLS OF Entrepreneur
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FUNCTIONS OF AN ENTREPRENEUR
1. Assumption of Risk The entrepreneur assumes all possible risks of business. A business risk is also involves the risk due to the
possibility of changes in the tastes of consumers, techniques of production and new inventions.
2. Business Decision He has to decide the nature and the type of goods to be produced. He enters the particular industry which
offers him the best prospects and produces whatever commodities he think will pay him most and employs those methods of
production which seem to him the most profitable.
3. Managerial Functions He performs managerial functions through they are different for entrepreneur. He formulates production
and financial plans, purchases raw materials, provides production facilities, organizes sales and assumes the task of personnel
management. In a large establishment, these management functions are delegated to the paid management personnel.
4. Function of Innovation : An important function of entrepreneur is ‘innovation’. Innovation is an ongoing function .
5. Raising Necessary Funds an Entrepreneur after having an explicit image of the idea, he needs to put this innovated idea into
practice for which he requires funds.
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Entrepreneur versus Entrepreneurship
The term Entrepreneur is often used interchangeably with ‘entrepreneurship. but, conceptually, they are different, yet
they are just like the two sides of a coin. Both the terms are co-related.
An Entrepreneur is a person who starts an enterprise (is the actor), while entrepreneurship represents the dynamic
process to set up and run a business.(is the act).
An entrepreneur is a person who bears the risks, unites various factors of production and carries out creative
innovations. He/she is an individual or one of a group of individuals who try to create something new or unique.
On the contrary, entrepreneurship is the set of activities performed by an entrepreneur. It is process of identifying
opportunities in the market place and marshalling the resources required to pursue these opportunities for long
term gains.
Entrepreneurship: Entrepreneurship is the process or an action taken by the entrepreneur. Entrepreneurship is also the
process of creating something new and assuming the risks and rewards.
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Entrepreneur versus Entrepreneurship
Entrepreneurship is a process of starting a new business, generally there also needs to be someone who
undertakes such a process? That is the entrepreneur. The output of the process, that is, the business unit is
called an enterprise. An enterprise is the business organization that is formed and which provides goods and
services, creates jobs, contributes to national income, exports and contributes to the overall economic
development. Enterprise is the starting point of an entrepreneur.
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DIFFERENCE BETWEEN AN ENTREPRENEUR AND A MANAGER
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What Is Intrapreneurship?
Internal entrepreneurs, or “intrapreneurs,” apply the principles of entrepreneurship to projects within an existing company or
organization. One important distinction between entrepreneurs and intrapreneurs is the latter’s lack of personal investment,
which reduces the impact of potential failure on any individual.
The term intrapreneurship refers to a system that allows an employee to act like an entrepreneur within a company or other
organization. typically one they don't own, to foster entrepreneurial ideas and innovation. Intrapreneurship can be another source of
economic growth.
An intrapreneur is someone an existing company hires to fulfill the role of an entrepreneur within the organization’s boundaries. In
particular, intrapreneurs drive innovation in products, services, processes, etc., to enhance the company’s future.
When companies give employees the freedom to experiment and grow within an organization, they can benefit from the success of their
employees’ internal projects. However, firms that fail to personally recognize the work of intrapreneurs risk seeing them leave to
become true independent entrepreneurs.
Intrapreneurs are self-motivated, proactive, innovative, action-oriented (people who have leadership skills), think outside the box, they
discover a new business opportunity and implement it for their companies.
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What Is Intrapreneurship?
An intrapreneurship creates an entrepreneurial environment by allowing employees to use their entrepreneurial skills for the benefit of both
the company and the employee. It gives employees the freedom to experiment, as well as the potential for growth within an organization.
It's important for employers to recognize these employees. By not promoting intrapreneurship or recognizing employees who demonstrate an
intrapreneurial spirit can be detrimental to a brand or company. Employers who encourage intrapreneurship stand to benefit because it leads
to the success of the department or the company as a whole. Keeping these employees can help lead to innovation and growth.
Identifying intrapreneurs can sometimes be difficult. These employees are generally self-starters who are both ambitious and goal oriented.
They are often able to solve problems on their own, and come up with ideas that lead to process improvements.
Intrapreneurs are able to resolve specific issues such as increasing productivity or cutting costs. This requires a high level of skill—
namely leadership skills and thinking outside the box—directly applicable to the assignment. An intrapreneur also takes risks and
drives innovation within a business to better serve the market through increased goods and services.
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Example of Intrapreneurship
Ramzi Haidamus, the president of Nokia Technologies, is often considered an intrapreneur
because of his initiatives with the company. He decided to do away with individual offices within
three months of starting his job in 2014. He believed an open office led to more sharing of ideas
and added greater value to the organization. Haidamus interviewed more than 100 engineers
individually to determine which technologies had the greatest chance of being successful in the
marketplace at the time.
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Difference Between Entrepreneur and Intrapreneur
Although both entrepreneur and intrapreneur are correlated, they have several differences. The main difference between
an entrepreneur vs. intrapreneur is that an entrepreneur starts their own company, whereas an intrapreneur works at a
company that someone else founded.
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Thanks
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