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Entrepreneurship Development and Small Business Management BBA. VI Sem. Study Notes

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Entrepreneurship Development and Small Business Management BBA. VI Sem. Study Notes S.B.S.Government Post Graduate College, Rudrapur (Udham Singh Nagar) Entrepreneurship Development and Small Business Management BBA. VI Sem. Study Notes Chapter 1 Introduction: Meaning of Entrepreneur, Entrepreneurship, and Intrapreneurship Dr. P.N.Tiwari Associate Professor 1 Chapter 1 Introduction: Meaning of Entrepreneur, Entrepreneurship, and Intrapreneurship (1) A person who sets up a business or businesses, taking on financial risks in the hope of profit. (2) An entrepreneur is an individual who, rather than working as an employee, runs a small business and assumes all the risks and rewards of a given business venture, idea, or good or service offered for sale. The entrepreneur is commonly seen as a business leader and innovator of new ideas and business processes. (3) One who organizes, manages, and assumes the risks of a business or enterprise. (4) A person who starts a business and is willing to risk loss in order to make money. (5) A person who organizes and manages any enterprise, especially a business, usually with considerable initiative and risk. (6) The owner or manager of a business enterprise who, by risk and initiative, attempts to make profits (7) One who starts a business or other venture that promises economic gain but that also entails / involves risks? (8) A person who organizes and manages an enterprise, especially a business unit with huge initiative. (9) Someone who risks their own capital in a business enterprise. (10) An entrepreneur is someone that goes out and does the work to create something that didn’t exist before (11) An entrepreneur is someone who mixes passion, innovation, and drive to turn a vision into a working business (12) Entrepreneur is a person who takes an idea, product or service and does whatever is necessary to introduce it to the marketplace where it can produce revenue. 2 (13) The word entrepreneur originates from the French word, entreprendre, which means "to undertake." In a business context, it means to start a business. In the year 1725 the word entrepreneur was first brought into economics by a social scientist named Richard Cantilion. The expert who invented the theory of entrepreneurship was David McClelland in 1961. Various definition of Entrepreneur: According to America Heritage Dictionary: “Entrepreneur is a person who organizes, operates and assumes the risk for business venture” The Dictionary of Social Science has defined entrepreneur from functional viewpoint. According to it “entrepreneur is a person 1) who exercise the function or 2) initiating coordinating ,controlling or institute major change in a business enterprise and or 3) bearing those risk of operation which arise from the dynamic nature of society and imperfect knowledge of the future which can cast through transfer calculation or elimination According to Encyclopedia of Britannica: “Entrepreneur as the individual who bears the risk of operating a business in the face of uncertainty about future condition and who is rewarded accordingly by his profit or losses”. Richard cotillion says “Entrepreneur is the agent who purchased the means of production for combination into marketable product”. So we can say that entrepreneur is a person who takes risk for establishing a new venture or business in order to create utility for the welfare of human being as well as for him of herself. She or he is always a person who seeks out opportunities and takes on challenges. Other name of Entrepreneur 1. Administrator 2. Contractor 3. Executive 4. Manager 5. Producer 6. Backer 7. Businessperson 8. Founder 9. Industrialist 10. Organizer 11. Promoter 12. Undertaker 3 Examples of Entrepreneurs 1. Bill Gates, founder of Microsoft. There are probably not many people that have not been touched by one of his products, such as Microsoft Windows, Microsoft Office and Internet Explorer. 2. Steve Jobs, co-founder of Apple computers, which produces iPods and iPhones, as well as Apple TV. 3. Mark Zuckerberg, the founder of Facebook. 4. Pierre Omidyar, founder of eBay. 5. Arianna Huffington, founder of the Huffington Post, a well-known online news site. 6. Caterina Fake, co-founder of Flikr, which hosts images and videos on the Internet. Meaning of Entrepreneurship (1)The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit. The most noticeable example of entrepreneurship is the starting of new businesses. (2) Entrepreneurship is the willingness to take risks and develop, organize and manage a business venture in a competitive global marketplace that is constantly evolving. Entrepreneurs are pioneers, innovators, leaders and inventors. They are at the forefront of technological and social movements – in their fields, in their forward thinking, in their desire to push the envelope. They are dreamers and most importantly – doers. (3) Entrepreneurship refers to the concept of developing and managing a business venture in order to gain profit by taking several risks in the corporate world. (4) Drucker defines entrepreneurship as the process of extracting profits from new, unique and valuable combinations of resources in an uncertain and uncertain environment. (5) Entrepreneurship is the dynamic process of creating incremental wealth. The wealth is created by individuals who assume the major risks in terms of equity, time and/or career commitment or provide value for some product or service. The product or service may or may not be new or unique, but value must somehow be infused by the entrepreneur by receiving and locating the necessary skills and resources efficiently and effectively. (6) In simple words, entrepreneurship is a process in which a person invests, design and run a small business setup on his own. An entrepreneur is not an employee; rather he or she takes risks and faces ups and downs of a business. 4 (7) Entrepreneurship is considered as of assuming the risk of an entrepreneur. (8)According to Natheal Leff: Entrepreneurship is the capacity for innovation investment and expansion in new markets product and techniques. (9)Webster highlights entrepreneurship as economic venture organizing and risk taking capabilities. (10)According to S. S. kanaka: Entrepreneurships is a process involving various actions to be taken to establish an enterprise. From the functional view point entrepreneurship is defined as the combination of activities such as perception of market opportunities gaining command over scarce resources purchasing input producing and marketing of product responding to competition and maintaining relation with political administration and public bureaucracy for concession licenses and taxes etc. There are various meanings given to the word entrepreneurship. The meanings are given to understand it in different point of views. These different meanings and concepts are listed below. 1-Starting a New Business: Entrepreneurship is a discipline of starting a new business. 2-Risk Taking: It is the willingness to bear /assume/ take risk on a new venture. 3-Profit Making: It is starting a new business if it has a considerable amount of profit. 4-Innovation and Invention: Entrepreneurship is about innovation and invention. 5-New Products and Services: It is the production of new products or services or processes that are not currently found in the market. 6-New Ways: It is establishing new ways of doing business by destroying the old and obsolete one. 7-Cause of Change: Entrepreneurship is searching for change, responding to change and taking the advantage of change as an opportunity. 8- Input: It is an important input for economic growth and employment opportunity. 9-Passion Expression: It is presenting various opportunities for expression and recognition of once passion for doing something new and different. 5 10-Decision Making: Entrepreneurship is concerned about the power of decision-making. 11-Opportunity Search: Entrepreneurship is the search of an alternate opportunity involving the formation of a new business. 12-Value Addition: It is concerned about value addition and creation to the business owner. 13-Job and Wealth Creation: Entrepreneurship is the means by which new business ventures are formed with their resulting job and wealth creation. 14- Bringing Resources Together: Entrepreneurship is the process of bringing together a unique package of resources to exploit an opportunity and create a value. 15- Choosing what you Like: Entrepreneurship is to be own boss, choosing and doing what you love most, choosing with whom to do business. 16-Fund Raising: It is raising capital for new business and taking actions to make an organization. 17-Organizing: It is organizing an enterprise to undertake new production process. 18-Vision: It is the process of having long-term vision. 19-Leadership: Entrepreneurship involves the ability to lead others effectively. 20- Motivation: It is the driving force to get things done. 21- Action: It is the ability to carry out things effectively. Relationship between entrepreneur and entrepreneurship: Entrepreneurship Entrepreneur Entrepreneur is a person. Entrepreneurship is a process. Entrepreneur is an organizer. Entrepreneurship is an organization. Entrepreneur is an innovator. Entrepreneurship is an innovation. Entrepreneur is a risk bearer. Entrepreneur is a risk bearing. Entrepreneur is a motivator. Entrepreneur is a motivation. Entrepreneur is a creator. Entrepreneur is a creation. Entrepreneur is a visualizer. Entrepreneur is a vision. Entrepreneur is a leader. Entrepreneurship is a leadership. Entrepreneur is an imitator. Entrepreneurship is an imitation. 6 Intrapreneurship is a relatively recent concept that focuses on employees of a company that have many of the attributes of entrepreneurs. An intrapreneur is someone within a company that takes risks in an effort to solve a given problem. An intrapreneur is an employee who is given the authority and support to create a new product without having to be concerned about whether or not the product will actually become a source of revenue for the company. Unlike an entrepreneur, who faces personal risk when a product fails to produce revenue, an intrapreneur will continue to receive a salary even if the product fails to make it to production.
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