Concepts of entrepreneurship

ENTREPRENEURSHIP AWARENESS CAMP

Entrepreneurship Concepts

WHAT IS ENTREPRENEURSHIP?

DEFINITION OF ENTREPRENEURSHIP-1

The term "entrepreneur" was first introduced

by the early 18th century French economist

Richard Cantillon (1680~1734).

In his writings, he formally defines the

entrepreneur as the "agent who buys means

of production at certain prices in order to

combine them into a new product and sell

them at uncertain prices”


ALFRED MARSHALL

(1842~1924) The necessity of

entrepreneurship for

production was first formally

recognized

Organization as the fourth

factor of production, which

brings the other factors

together

Entrepreneurship is the driving

element behind organization.

By creatively organizing,

entrepreneurs create new

commodities or improve "the

plan of producing an old

commodity"


Joseph Schumpeter talks about “creative destruction” whereby established ways of doing things are destroyed by the creation of new and better ways of getting things done

Described Entrepreneurship as a process and entrepreneurs as innovators who use process to shatter the status quo through new methods...

Joseph Schumpeter

1883-1950

Entrepreneurship is•a dynamic process of creating something new

with

value

•through recognition of business opportunity and

•mobilizing the required resources and

•assuming the risks and

•receiving the rewards of money, personal

satisfaction and independence


Parameter Small Business Entrepreneurial

VentureBusiness methods Conventional proven

methods

Innovative Practices

Markets Attempts to penetrate

existing Markets

Seeks new Opportunities

Creates New Markets

Source of finance Independently owned and

operated

Seeks funds through

Venture Capitalists

Ownership Structure Proprietorship or

Partnerships

Private Limited or

Public Limited

Goals Financial security for the

family

Creating something new

Achieving independence

Effect on Competition Too small to make an

impact

Creative destruction

Old companies lose market

shares

Comparison of Small Businesses and

Entrepreneurial Ventures

IMPORTANCE OF ENTREPRENEURSHIP

IMPORTANCE OF ENTREPRENEURSHIPE

CO

NO

MIC

DE

VE

LO

PM

EN

T


Employment Generation Tata Consultancy Services 226,756

State Bank of India 215,500

Infosys Technologies 150,000

C TS 140,000

Wipro Ltd 120,000

HCL Technologies Ltd 82,464

Tata Steel 81,600

Tata Motors 29,217

Reliance Industries 23,166

Infosys Technologies Ltd has given away stock

options worth Rs 50,000 crore, or over $10.5

billion (at current market prices), to its employees

since its inception 30 years ago.

Dhirubhai Ambani always kept the interests of

the ordinary shareholder uppermost in mind, in the

process making millionaires out of many of the

initial investors in the Reliance stock, and creating

one of the world’s largest shareholder families

Equitable Distribution of income and wealth


DISTRIBUTION OF INCOME-

AMOUNT SPENT BY TOP Cos ON THEIR

EMPLOYEES (Rs Cr)

With a commitment to economic and

social development in rural India as its

core value, Suguna is rewriting the

futures of thousands of farmers and

entrepreneurs.

Suguna currently operates in 11 states

working with over 15,000 farmers,

25,000 channel partners and 4,800

employees.

Development of Backward

regions


Please watch a small video on

“Three things the Entrepreneurs do”


Economic Development

Effective Mobilisation of resources

Innovation

Employment Generation

Equitable Distribution of income and wealth

Development of Backward regions

Can you imagine a world without entrepreneur?

Concepts of entrepreneurship

Small Business & Entrepreneurship

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