Professional Documents
Culture Documents
Concept of Entrepreneur
ENTREPRENEUR
The word "entrepreneur" is derived from a French root ‘entreprendre’, meaning, "to
undertake". The term "entrepreneur" seems to have been introduced into economic theory by
Cantillon (1755) but Say (1803) first accorded the entrepreneur prominence. It was
Schumpeter however, who really launched the field of entrepreneurship by associating it
clearly with innovation. Drucker’s definition of entrepreneurship, namely a systematic,
professional discipline, brought a new level of understanding to the domain (Maurer,
Shulman, Ruwe & Becherer 1995:526). Sharma and Chrisman (1999:12) identified two
clusters of thought on the meaning of entrepreneurship. One group focused on the
characteristics of entrepreneurship (e.g. innovation, growth, uniqueness) while a second
group focused on the outcomes of entrepreneurship (e.g. the creation of value).
An entrepreneur is a person who starts an enterprise. He searches for change and responds to
it. A number of definitions have been given of an entrepreneur-
The economists view him as a fourth factor of production along with land labour and capital.
The sociologists feel that certain communities and cultures promote entrepreneurship like for
example in India we say that Gujaratis and Sindhis are very enterprising.
Still others feel that entrepreneurs are innovators who come up with new ideas for products,
markets or techniques.
Stems: from the French word ‘entrependre’ meaning one who undertakes or one who is a
‘go-between’
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.
J.B. Say: An entrepreneur is an economic agent who unites all means of production- 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 rent of land, wages to labour, interest on capital and
what remains is his profit. He shifts economic resources out of an area of lower and into an
area of higher productivity and greater yield.
Schumpeter: According to him entrepreneurs are innovators who use a process of shattering
the status quo of the existing products and services, to set up new products, new services.
Kilby: Emphasizes the role of an imitator entrepreneur who does not innovate but imitates
technologies innovated by others. Are very important in developing economies.
Albert Shapero: Entrepreneurs take initiative, accept risk of failure and have an internal
locus of control.
Concept of Entrepreneurship
ENTERPRISE
Entrepreneur is a person who starts an enterprise. The process of creation is called
entrepreneurship. The entrepreneur is the actor and entrepreneurship is the act. The outcome
of the actor and the act is called the enterprise. An enterprise is the business organization that
is formed and which provides goods and services, creates jobs, contributes to national
income, exports and over all economic development.
Wage Employment
Entrepreneurship
TRADER ENTREPRENEUR
A trader is not always an entrepreneur An entrepreneur also a trader
Involve in buying and selling Involve in creating new product
Always work out to gain profit Besides profit, also considered about
satisfaction and successful
Not interested in new technology Always alert and follow any new changes
evolvement and new changes and technologies
Selling common stuff Introduce new products
Competition is a common challenge Competition is a challenge that needs
further details
Focus on daily matter Farsighted and try to improve in the
future
Short term profit oriented Long term profit oriented