Definition of entrepreneurship
Entrepreneurship is the process of starting a business, a start-up
company or other organization. It can also be referred to as the process of
discovering new ways of combining resources. The entrepreneur develops a business plan, acquires the human and
other required resources, and is fully responsible for its success or failure.
An entrepreneur is someone who organizes, manages, and assumes the risks
of a business or enterprise. An entrepreneur is an agent of change.
company or other organization. It can also be referred to as the process of
discovering new ways of combining resources. The entrepreneur develops a business plan, acquires the human and
other required resources, and is fully responsible for its success or failure.
An entrepreneur is someone who organizes, manages, and assumes the risks
of a business or enterprise. An entrepreneur is an agent of change.
Depending
upon the level of willingness to create innovative ideas, there can be the
following types of entrepreneurs:
upon the level of willingness to create innovative ideas, there can be the
following types of entrepreneurs:
1. Innovative entrepreneurs:
These
entrepreneurs have the ability to think newer, better and more economical ideas
of business organisation and management. They are the business leaders and
contributors to the economic development of a country.
entrepreneurs have the ability to think newer, better and more economical ideas
of business organisation and management. They are the business leaders and
contributors to the economic development of a country.
2. Imitating entrepreneurs:
These
entrepreneurs are people who follow the path shown by innovative entrepreneurs.
They imitate innovative entrepreneurs because the environment in which they
operate is such that it does not permit them to have creative and innovative
ideas on their own. Such entrepreneurs are found in countries and situations
marked with weak industrial and institutional base which creates difficulties
in initiating innovative ideas.
entrepreneurs are people who follow the path shown by innovative entrepreneurs.
They imitate innovative entrepreneurs because the environment in which they
operate is such that it does not permit them to have creative and innovative
ideas on their own. Such entrepreneurs are found in countries and situations
marked with weak industrial and institutional base which creates difficulties
in initiating innovative ideas.
In
our country also, a large number of such entrepreneurs are found in every field
of business activity and they fulfill their need for achievement by imitating
the ideas introduced by innovative entrepreneurs. Development of small shopping
complexes is the work of imitating entrepreneurs. All the small car manufacturers
now are the imitating entrepreneurs.
our country also, a large number of such entrepreneurs are found in every field
of business activity and they fulfill their need for achievement by imitating
the ideas introduced by innovative entrepreneurs. Development of small shopping
complexes is the work of imitating entrepreneurs. All the small car manufacturers
now are the imitating entrepreneurs.
3. Fabian entrepreneurs:
The
dictionary meaning of the term ‘fabian’ is ‘a person seeking victory by delay
rather than by a decisive battle’. Fabian entrepreneurs are those individuals
who do not show initiative in visualising and implementing new ideas and
innovations wait for some development which would motivate them to initiate
unless there is an imminent threat to their very existence.
dictionary meaning of the term ‘fabian’ is ‘a person seeking victory by delay
rather than by a decisive battle’. Fabian entrepreneurs are those individuals
who do not show initiative in visualising and implementing new ideas and
innovations wait for some development which would motivate them to initiate
unless there is an imminent threat to their very existence.
4. Drone entrepreneurs
The
dictionary meaning of the term ‘drone’ is ‘a person who lives on the labor of
others’. Drone entrepreneurs are those individuals who are satisfied with the
existing mode and speed of business activity and show no inclination in gaining
market leadership. In other words, drone entrepreneurs are die-hard
conservatives and even ready to suffer the loss of business.
dictionary meaning of the term ‘drone’ is ‘a person who lives on the labor of
others’. Drone entrepreneurs are those individuals who are satisfied with the
existing mode and speed of business activity and show no inclination in gaining
market leadership. In other words, drone entrepreneurs are die-hard
conservatives and even ready to suffer the loss of business.
5. Social Entrepreneur:
Social
entrepreneurs drive social innovation and transformation in various fields
including education, health, human rights, workers’ rights, environment and
enterprise development.
entrepreneurs drive social innovation and transformation in various fields
including education, health, human rights, workers’ rights, environment and
enterprise development.
Functions of an entrepreneur
The
important functions performed by an entrepreneur are listed below:
important functions performed by an entrepreneur are listed below:
1. Innovation
An
entrepreneur is basically an innovator who tries to develop new technology,
products, markets, etc. Innovation may involve doing new things or doing
existing things differently. An entrepreneur uses his creative faculties to do
new things and exploit opportunities in the market. He does not believe in
status quo and is always in search of change.
entrepreneur is basically an innovator who tries to develop new technology,
products, markets, etc. Innovation may involve doing new things or doing
existing things differently. An entrepreneur uses his creative faculties to do
new things and exploit opportunities in the market. He does not believe in
status quo and is always in search of change.
2. Assumption of Risk
An
entrepreneur, by definition, is risk taker and not risk shirker. He is always
prepared for assuming losses that may arise on account of new ideas and
projects undertaken by him. This willingness to take risks allows an
entrepreneur to take initiatives in doing new things and marching ahead in his
efforts.
entrepreneur, by definition, is risk taker and not risk shirker. He is always
prepared for assuming losses that may arise on account of new ideas and
projects undertaken by him. This willingness to take risks allows an
entrepreneur to take initiatives in doing new things and marching ahead in his
efforts.
3. Research
An
entrepreneur is a practical dreamer and does a lot of ground-work before taking
a leap in his ventures. In other words, an entrepreneur finalizes an idea only
after considering a variety of options, analyzing their strengths and
weaknesses by applying analytical techniques, testing their applicability,
supplementing them with empirical findings, and then choosing the best
alternative. It is then that he applies his ideas in practice. The selection of
an idea, thus, involves the application of research methodology by an
entrepreneur.
entrepreneur is a practical dreamer and does a lot of ground-work before taking
a leap in his ventures. In other words, an entrepreneur finalizes an idea only
after considering a variety of options, analyzing their strengths and
weaknesses by applying analytical techniques, testing their applicability,
supplementing them with empirical findings, and then choosing the best
alternative. It is then that he applies his ideas in practice. The selection of
an idea, thus, involves the application of research methodology by an
entrepreneur.
4. Development of Management Skills
The
work of an entrepreneur involves the use of managerial skills which he develops
while planning, organizing, staffing, directing, controlling and coordinating
the activities of business. His managerial skills get further strengthened when
he engages himself in establishing equilibrium between his organization and its
environment.
work of an entrepreneur involves the use of managerial skills which he develops
while planning, organizing, staffing, directing, controlling and coordinating
the activities of business. His managerial skills get further strengthened when
he engages himself in establishing equilibrium between his organization and its
environment.
However,
when the size of business grows considerably, an entrepreneur can employ
professional managers for the effective management of business operations.
when the size of business grows considerably, an entrepreneur can employ
professional managers for the effective management of business operations.
5. Overcoming Resistance to Change
New
innovations are generally opposed by people because it makes them change their
existing behavior patterns. An entrepreneur always first tries new ideas at his
level. It is only after the successful implementation of these ideas that an
entrepreneur makes these ideas available to others for their benefit. In this
manner, an entrepreneur paves the way for the acceptance of his ideas by
others. This is a reflection of his will power, enthusiasm and energy which
helps him in overcoming the society’s resistance to change.
innovations are generally opposed by people because it makes them change their
existing behavior patterns. An entrepreneur always first tries new ideas at his
level. It is only after the successful implementation of these ideas that an
entrepreneur makes these ideas available to others for their benefit. In this
manner, an entrepreneur paves the way for the acceptance of his ideas by
others. This is a reflection of his will power, enthusiasm and energy which
helps him in overcoming the society’s resistance to change.
6. Catalyst of Economic Development
An
entrepreneur plays an important role in accelerating the pace of economic
development of a country by discovering new uses of available resources and
maximizing their utilization.
entrepreneur plays an important role in accelerating the pace of economic
development of a country by discovering new uses of available resources and
maximizing their utilization.
Importance of entrepreneurship
Entrepreneurship
offers the following benefits
offers the following benefits
1. Development of managerial capabilities
The
biggest significance of entrepreneurship lies in the fact that it helps in
identifying and developing managerial capabilities of entrepreneurs. An
entrepreneur studies a problem, identifies its alternatives, compares the
alternatives in terms of cost and benefits implications, and finally chooses
the best alternative.
biggest significance of entrepreneurship lies in the fact that it helps in
identifying and developing managerial capabilities of entrepreneurs. An
entrepreneur studies a problem, identifies its alternatives, compares the
alternatives in terms of cost and benefits implications, and finally chooses
the best alternative.
This
exercise helps in sharpening the decision making skills of an entrepreneur.
Besides, these managerial capabilities are used by entrepreneurs in creating
new technologies and products in place of older technologies and products
resulting in higher performance.
exercise helps in sharpening the decision making skills of an entrepreneur.
Besides, these managerial capabilities are used by entrepreneurs in creating
new technologies and products in place of older technologies and products
resulting in higher performance.
2. Creation of organisations
Entrepreneurship
results into creation of organisations when entrepreneurs assemble and
coordinate physical, human and financial resources and direct them towards
achievement of objectives through managerial skills.
results into creation of organisations when entrepreneurs assemble and
coordinate physical, human and financial resources and direct them towards
achievement of objectives through managerial skills.
3. Improving standards of living
By
creating productive organisations, entrepreneurship helps in making a wide
variety of goods and services available to the society which results into
higher standards of living for the people. Possession of luxury cars,
computers, mobile phones, rapid growth of shopping malls, etc. are pointers to
the rising living standards of people, and all this is due to the efforts of
entrepreneurs.
creating productive organisations, entrepreneurship helps in making a wide
variety of goods and services available to the society which results into
higher standards of living for the people. Possession of luxury cars,
computers, mobile phones, rapid growth of shopping malls, etc. are pointers to
the rising living standards of people, and all this is due to the efforts of
entrepreneurs.
4. Means of economic development
Entrepreneurship
involves creation and use of innovative ideas, maximisation of output from
given resources, development of managerial skills, etc., and all these factors
are so essential for the economic development of a country.
involves creation and use of innovative ideas, maximisation of output from
given resources, development of managerial skills, etc., and all these factors
are so essential for the economic development of a country.
Gains/benefits from the
study of entrepreneurship as a course/discipline
study of entrepreneurship as a course/discipline
Students
who are taught about entrepreneurship show a positive change in attitude and
strong success orientation, and are more likely to be focused on academic and
professional achievements and aspirations and leadership. The following are
some of the benefits from the study of entrepreneurship as a course/discipline:
who are taught about entrepreneurship show a positive change in attitude and
strong success orientation, and are more likely to be focused on academic and
professional achievements and aspirations and leadership. The following are
some of the benefits from the study of entrepreneurship as a course/discipline:
·
Life skills: Students who are
given entrepreneurial training as young people are taught personal,
professional and financial skills they will utilize for the rest of their
lives. Goal setting, visualization, financial literacy, brainstorming,
problem-solving, project management, teamwork, determination, the feeling of
accomplishment that comes from planning a project from an idea to completion,
and all the steps in between.
Life skills: Students who are
given entrepreneurial training as young people are taught personal,
professional and financial skills they will utilize for the rest of their
lives. Goal setting, visualization, financial literacy, brainstorming,
problem-solving, project management, teamwork, determination, the feeling of
accomplishment that comes from planning a project from an idea to completion,
and all the steps in between.
·
Self-sufficiency:
Youth recognize and discover the possibilities that lie within. They are
provided with the framework to achieve, to do, to think, and to dream. Laying
the groundwork for the possibility of working for themselves instead of for
someone else. In a tough job market, they can rely on their own ability to
generate income.
Self-sufficiency:
Youth recognize and discover the possibilities that lie within. They are
provided with the framework to achieve, to do, to think, and to dream. Laying
the groundwork for the possibility of working for themselves instead of for
someone else. In a tough job market, they can rely on their own ability to
generate income.
·
Community leadership:
Entrepreneurial thinking helps youth identify community needs and recognize
that they have the power to provide solutions of both personal and public
benefit.
Community leadership:
Entrepreneurial thinking helps youth identify community needs and recognize
that they have the power to provide solutions of both personal and public
benefit.
·
Brain retain!:
Entrepreneurship invests youth in their city as a place that they are excited
to work, live and grow in, countering “brain drain” epidemic.
Brain retain!:
Entrepreneurship invests youth in their city as a place that they are excited
to work, live and grow in, countering “brain drain” epidemic.
·
Community: Entrepreneurial
education provides students with financial options to discourage illegal means
of making money, which translates into reduced crime and a boost to the local
economy. We all do better when we all do better. Entrepreneurial education help
teen, student, or youth group with the skills necessary to succeed in life. The
goal of entrepreneurial education is to prepare the next generation to become
more innovative, confident, self-aware, and create their futures, regardless of
socioeconomic status or background.
Community: Entrepreneurial
education provides students with financial options to discourage illegal means
of making money, which translates into reduced crime and a boost to the local
economy. We all do better when we all do better. Entrepreneurial education help
teen, student, or youth group with the skills necessary to succeed in life. The
goal of entrepreneurial education is to prepare the next generation to become
more innovative, confident, self-aware, and create their futures, regardless of
socioeconomic status or background.
References
Hisrich, R. D. (2011). Entrepreneurship.
McGraw-Hill Education.
McGraw-Hill Education.
Shane, A. (2000). A General Theory of Entrepreneurship: The
Individual-opportunity Nexus. Edward Elgar Publishing.
Individual-opportunity Nexus. Edward Elgar Publishing.
Johnson, D. P. M. (2005). “A Glossary of Political Economy Terms,
2005”. Auburn University.
2005”. Auburn University.
Paul, D. (2007). Entrepreneurship in the United States: The
Future Is Now. Springer.
Future Is Now. Springer.
Mark, V. (2000). Angel Investing. John Wiley & Sons.
Landstrom, H. (2007). Pioneers in Entrepreneurship and Small
Business Research. Springer.
Business Research. Springer.