INTRODUCTION AND DEFINITION:
• The entrepreneur initiates, organizes, manages and
controls the affairs of a business unit. He is in the centre of industrial
production system.
• He is the owner of the business unit and works
with the profit motive.
• The maximization of profit depends on many
factors, such as the capital output, quality of the product, demand of the
product and the internal management.
• Entrepreneur is a person who buys factor services
at certain prices and sells them at uncertain prices in future.
• In the late 18th century, “Nicolous Bandeau called
the agricultural cultivator an entrepreneur and credited him with the essential
characteristics of risk-taking and innovation”
• Cole defines “entrepreneurship as an integrated sequence of actions taken by an individual or a group operating for individual business units in a world characterized by a large measure of uncertainty”
.SALIENT FEATURES OF ENTREPRENEURS:
The entrepreneurs’ motivation for creative activity
lies in their intense urge for self-realization.
(i) High need for achievement.
(ii) Acquisitiveness.
(iii) Self-confidence and autonomous personality.
(iv) Non-dogmatic and non-conformist personality.
(v) Aggressiveness and risk-bearing capability.
(vi) Rationality
and pragmatism.
(vii) Creative and technical mind.
(viii)
Adaptability.
(ix) Managerial skill and leadership qualities.
(x) Administrative ability.
(xi) Sound decision-making ability.
(xii) High personal efficacy.
(xiii) High commitment to the task.
THE RELATION BETWEEN ENTREPRENEUR, ENTREPRENEURSHIP
AND ENTERPRISE
IMPORTANCE OF ENTREPRENEURSHIP
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.
2. Creation of organizations: Entrepreneurship results into creation of organizations
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 organizations,
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, maximization of output from given resources, development of
managerial skills, etc., and all these factors are so essential for the
economic development of a country.
ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT
1. Increased Per capita Income: In the process of entrepreneurship new products and
services are introduced which helps in the development of new market and
economic growth.
2. Wealth creation and Distribution: Entrepreneurship creates value and wealth in the
business and society. The change is visible in the high production and economic
growth. This is creased output and helps in the distribution of wealth in the
various members of society.
3. Production evolution Process: Production evolution process is a process where
innovation develops and an entrepreneur commercializes new products.
4. Capital formation: Entrepreneurship promotes capital formation by
mobilizing the saving of the general public. The development process mainly depends
upon the capital formation. The higher the rate of capital formation the faster
is the pace of economic growth.
5. Employment:
Entrepreneurship provides immediate large-scale employment. Thus it helps to
reduce the unemployment problem in the country. Entrepreneurship encourages
effective recourse mobilization of capital and skill which might otherwise
remain unutilized.
6. Promotes export: Entrepreneurship also induces backward and forward
linkages which stimulate the process of economic development in the country. It
also promotes country’s export trade i.e. an important ingredient to economic
development.
PROBLEMS IN ENTREPRENEURIAL GROWTH:
1). Financial Problems: Getting your business funded is one of the main
issues that all business faces and has to tackle in order to survive. While you
might have initial money saved up to start a business, they don’t survive for
long and you cannot just rely on the next sales check to arrive so you can pay
the bills and take care of the next step in business.
2) Hiring workforces and team Building: We all have faced interviews at one or other point
of our lives and for many; it has been one of the most stressful points in
their lives. While we all have been in the above situation one point or
the other, there are very few of us who have conducted interviews and it is
equally hard if not more as the majority you have not done it before and thus
have no idea how to go about it.
3) Decision Making issues due to lack of Practical
Knowledge: New entrepreneurs
have a harder time making decisions as they often equate even small decisions
with how it will impact the company and its budget. Self-doubt also makes them
question the decisions they have made already made and if it was the right one.
It’s is only with time that they learn to take hundreds of decisions a
day, big and small, without questioning themselves and often facing decision
fatigue.
4) Time management: When you are starting
out with a new business time management might be one of the biggest
problems faced by entrepreneurs. As a newcomer, an entrepreneur has to take up many
roles and don as many hats as he can. He or she has to accomplish a lot in a
limited amount of time and thus is always running from pillar to post to take
care of things. While the limited time and funds are something that no one can
control, what you can do is have a strict schedule that allocates your
time and money to each task.
5)
Balancing Perfection & Progress: The
above is a great way to break the chains of getting bogged down in the never
ending pursuit of perfection and detailed minutiae. Do pay attention to the
details and polish. It can make a difference. Yet, you aren’t getting anywhere
unless you actually take action. As Seth God in puts it, you need to recognize
the difference between almost barely good enough, and perfect enough.
DIFFERENCE
BETWEEN INTRAPRENEURSHIP VS ENTREPRENEURSHIP
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