introduction to entrepreneur

7/29/2019 introduction to entrepreneur

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Entrepreneur

Concept of entrepreneur.

Concept of entrepreneurship.

Characteristics of entrepreneur.

Types of entrepreneurs.

Economic role of entrepreneur.


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Evaluation of concept of Entrepreneur

The word entrepreneur has been taken from the French language whecradled and originally meant to designate an organizer of musical or oentertainments.

Oxford dictionary (in 1897) also defined an entrepreneur in similar wa

The director or a manager of a public musical institutions, one who entertainment, specially musical performance.

In the early 16th century, it was applied to whose who were engaged expeditions.

It was extended to cover civil engineering of the 18 century that the wused to refer to economic aspects.

In this way , the evaluation of the concept of entrepreneur is considemore than four year centuries. Cont

organizer

Director or

manager

Engag

Economicaspects

Organizer,

director or

Manager

Engaged,

EconomicsAspects


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Entrepreneur

Since then, the term entrepreneur is used in various views.

These view are broadly classified into three groups, namely, risk

bear, organizer and innovator. Now, we are discussing below eacof these view.


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Various views

Entrepreneur as a Risk Bearer.

Entrepreneur as an Organizer.

Entrepreneur as an Innovator.


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Various views

ENTREPRENEUR AS A RISK BEARER:

F.H Knight ( risk, uncertainty and profit , harper and row , New York,1965)is defined as a risk which cannot be insured against and is can bereduced through the insurance principle, where the distribution of the

outcome in a groups as instances is known.On the contrary, uncertainty is the risk which cannot be calculated.

The entrepreneur, according to Knight, is the economic functionary wundertakes such responsibility of uncertainty which by its very naturecannot be insured nor capitalized nor salaried too.


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Various views

Entrepreneur as an organizer:

Jean Baptiste (J.P) Say, his definition associats entrepreneurwith the functions of coordination organization and supervisions

According to him an entrepreneur is one who combines the landone, the labor of at another and the capital of yet another andthus, produces a product. By selling the product in the market, pays interest on capital, rent on land and wages to laborers andwhat remains is his/her profits.


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Various views

oEntrepreneur as an innovator :

Joseph A. Schumpeter, for the first time in 1934, assigned acrucial role of innovation to the entrepreneur in his magnum op theory of economic development. Schumpeter consideredeconomics development as a descrete dynamic change brought

entrepreneur by instituting new combinations of production, i.einnovations.


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Various views

o The introduction of new combination of factor of productions accordito him may occur in any one of the followings five forms:

The introduction of new product in the market.

The instituting's a new productions technology which is not yet testedexperience in the branch of manufacture concerned.

The opening of a new market into which the specific product has notpreviously entered.

The discovery of new source of raw material.

The carrying out the new form of organizations of any industry bycreating of a monopoly positions or the breaking up of it.


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Concept of entrepreneurship

According to Schumpeter,(1949) Entrepreneurship is based onpurposeful and systematic innovation. It included not only theindependent business but also company directors and manager whactually carry out innovative functions.


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Entrepreneurship is a process involving various actions to be undertaken toestablish an entrepreneur an enterprise, it is ,thus process of giving birth to new enterprise.

Innovation and risk-bearing are regarded as the two basic elements involvedentrepreneurship

Innovation::

Innovation that is doing something new or something different is a necessary

condition to be called a persons as an entrepreneur.The entrepreneurs constantly on the look to do something different and uniq

to meet the changing requirements of the customers.

They may or not invent new product or new methods of production, but theypossess the ability to forsee the possibility of making use of the inventions fotheir enterprise.


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In order to satisfy the changing preference of customersnow-a- days fruit juice is sold in small cartons ( mangofruity) instead of bottles so that customers can carry itand throw away the container after drinking the juice.


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In order to satisfy the changing preference of customersnow-a- days fruit juice is sold in small cartons ( mangofruity) instead of bottles so that customers can carry itand throw away the container after drinking the juice.


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You may have heard of henry ford, the founder of the thford motor company in the united state.

Henry ford himself did not invent the automobile.Foreseeing the people desire to have passenger cars to customers at affordable price.

Since customers taste and preference always changing,hence the entrepreneur needs to apply inventionafterinvention on a continuous basis to meet the customerschanging demands for products.


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RISK BEARING :

Starting a new enterprise always involves risk and trying for doisomething new and different is also risky.

The enterprise may earn profits or incur losses because of variofactors like increasing competition, changes in customers

preference, shortage of raw material and so on.An entrepreneur, therefor, needs to be bold enough to assume trisk involved in the enterprise.


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Relationship Between Entrepreneur &Entrepreneurship

Though the term entrepreneur is often used interchangeably with entrepreneurship yet tconceptually different.

The relationship between the two is just like the two side of the same coin as depicted ifollowings :

Entrepreneur Entrepreneurship

Person process

Organizer organization

innovator Innovation

Risk- bearer Risk bearing

Motivator Motivation

creator Creation

Visualizer Vision

Leader leadership

Imitator Imitation


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Characteristics of entrepreneurs

If u go through the business history of India, we come across thecharacteristics names of persons who have emerged as successfentrepreneur.

For example: Birla, Dalmia and others are well-known names ofsuccessful entrepreneurs in the country who started their busine

entrepreneur himself/ herself. Then, the question is : what makes the entrepreneurs successfu

Whether they had anything common in their personal character

The scanning of their personal characteristics show that there acertain characteristics of entrepreneur which are found usuallyprominent in them:


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Hard work

Desire for high achievement

Highly optimistic

Independence

Foresight

Good organizer

Innovative

The Principal ones are Scanned and Discussed Here :


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Hard work :

Willingness to work hard distinguish a successful entrepreneur funsuccessful one.

The entrepreneur with his tedious, sweat-filled hours and perserevive their business even from one verge of failure.

In most of the successful entrepreneurs work hard endlessly, espin the beginning and the same become their whole life.


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Desire for high achievement :

The entrepreneur have a strong desire to achieve high goals in busine

This high achievement motive strengthened them to surmount overcome) the obstacles, suppress anxieties, repair misfortunes and dplan) expedients ( suitable) and only set up and run a successful busin

Highly optimistic :

The successful entrepreneurs as not disturbed by the present problemby them.

They are optimistic future that the situations will become favourable business in future.

Thus, they can run their enterprises successfully


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Independence:

One of the common characteristics of the successful entrepreneur hasthat they do not like to be guided by others and follows their routine.

They resist to be pigeonholded

They liked to be independent in the matters of their business.

Foresight:

The entrepreneurs have a good foresight to know about future busineenvironment.

In other words, they well visually the likely changes to take place in mconsumers attitude, technological development, etc. and take timelyaccordingly.


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Good organizer:

Different resources for production are divorced from each other.

It is the ability of the entrepreneurs that brings together all resourcesfor starting up an enterprise and then to produce goods.

Innovative:

Productions meant to meet the customers requirement.In view of the changing taste of customers from time to time, the entreinitiate research and innovative activities to produce goods to satisfy thcustomers changing demands for the products.

The research institutes centres established by tat, birla, Kirloskar,etc. examples of the innovative activities taken by the successful entreprenour country.


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introduction to entrepreneur

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