A vision-driven individual who assumes significant personal and financial risk to start or expand a

business.

 Derived from French word Entreprendre means to

undertake.
Richard Carleton: a person who buys factors of

production at certain prices in order to combine them into a product with a view to sell them at uncertain prices.
Considered as a risk bearer. Ex. Farmer pays definite

price for seeds, fertilizers, pesticides, labours etc but not certain at which price he could sell his produce.

 Peter F Drucker: One who considers the changes

that take place in market as an opportunity to do business. Innovation is his tool.

Joseph Schumpeter: Individuals who introduce

something new in the market or economy.

New encyclopaedia: An individual who bears the risk

of operating business in the face of uncertainty about the future conditions.

The pursuit of opportunity through innovation, creativity and hard work without regard for the resources currently controlled.

 Process of initiating a business venture Organizing the necessary resources Assumes associated risks and rewards

 Entrepreneurship is defined as the process of making money,

earning profits and increasing the wealth while posing characteristics such as risk taking, management, leadership and innovation.
Entrepreneurship

refers to the functions performed by an entrepreneur in establishing an enterprise. Entrepreneurship is a process involving various actions to be undertaken to establish an enterprise.

Entrepreneurship is the purposeful activity of an individual or a

group of associated individuals, undertaken to initiate, maintain, or earn profit by production or distribution of economic goods and services.

Innovation
Schumpeter viewed entrepreneurship as a force of creative

destruction.

Innovation is doing something new or different which is necessary . Economic development is considered as a discrete dynamic change

brought by entrepreneur by instituting new combinations of production, i.e. innovation.

a creative activity or it is an innovative function.

According to A Schumpeter The entrepreneurship is essentially

After the Second World War, entrepreneurship received new

meaning for attaining economic development within the shortest possible time; as concern for economic development became allpervasive.

Innovation may occur in any of the following five forms:

Introduction of a new product in the market. Instituting of a new production technology which is not

yet tested by experience in the branch of manufacture concerned.

Opening of a new market into the specific product. Discovery of new source of supply of raw material. Carrying out of the new form of organisation by creating

monopoly position or by breaking up of it.

Risk taking A new enterprise always involves risk and trying for doing something new and different is also risky.
The enterprise may earn profits or incur losses because of

various factors like competition, changes in consumer preferences, shortage of raw material etc.
The entrepreneur needs to be a risk taker, not risk avoider. Risk bearing ability of an entrepreneur enables him even if he

fails in one venture to persist on and on which ultimately helps him succeed.
F.H. Knight described entrepreneur to be a specialised group

of persons who bear uncertainty.

Vision Entrepreneurship is an activity or process which is undertaken to achieve a desired goal in future.
Entrepreneurship is always the result of a vision.

"Vision without action is a day dream but action without vision is nightmare"

Organising skill Entrepreneurship is the process of combining all the factors of production, coordinating them, organising them, controlling them and undertaking the production to fulfill anticipated demand.
Entrepreneurship

also includes a number of complex operations like obstacles to be surmounted, worries to be suppressed, misfortunes to be repaired etc.

Essential Factors: Moral qualities for work judgement and knowledge about the business world.
Command over sufficient capital. Uncertainty of profits.

 He is a person who develops and owns his own enterprise

or expands the business.

He is a moderate risk taker and works under uncertainty

for achieving the goal.

He is innovative.
Reflects strong urge to be independent. Tirelessly tries to do something better. Dissatisfied with routine activities.

 Prepared to withstand the hard life. Determined but patient. Exhibits sense of leadership. Also exhibits sense of competitiveness. Takes personal responsibility. Oriented towards the future. Tends to carry on in the face of hard times. Convert a problematic situation into opportunity.

 Mental Ability Business Secrecy Clear Objectives Human Relation Communication Ability

Rewarded by chance to work on something new and creative Idealists 24%

Thrive on the challenge Enjoy chance to balance of building a larger, more work and personal life profitable business

Optimizers 21%

Hard Workers 20%

Jugglers 20%

Sustainers 15%

Get personal satisfaction from being a business owner

High energy people who enjoy handling every detail of their own business