Entrepreneurship

Definition of an Entrepreneur :
An entrepreneur is a person who undertakes to do a job Richard Cantillon (1755).
The term entrepreneur is a French word first coined by Richard Cantillon.

Adam Smith (1776) - An entrepreneur is a person who acts as agent in transforming demand into supply.

 Jean Babtiste Say (1803) - An entrepreneur is a person who shifts resources from an area of low productivity to high productivity. John Stuart Mill (1848)-An entrepreneur is a prime mover in the private enterprise. The entrepreneur is the fourth factor of production after land ,labor and capital. Carl Menger (1871)-The entrepreneur acts as an economic agent who transforms resources into products and services .
The entrepreneur transforms and gives added value.

 Joseph Aloysius Schumpeter (1934)-An entrepreneur is an innovator. The economy moves through leaps and bounds and the prime mover is the entrepreneur through the process of creative destruction David McClelland - The entrepreneur is a person with a high need for achievement. This need for achievement is directly related to the process of entrepreneurship.

 Peter F. Drucker (1964)...maximization of opportunities is a meaningful, indeed a precise, definition of the entrepreneurial job. It implies that effectiveness rather than efficiency is essential in business. The pertinent question is not how to do things right but how to find the right things to do, and to concentrate resources and efforts on them.

 Responsible for innovations that significantly improve human productivity. Bell Henry Ford Edison

Enterprise
involves measures to encourage individuals to become entrepreneurs and equip them with the necessary skills to make a business successful
(Mason, 2000)

In essence, enterprise is about spotting opportunities, creating new ideas and having the confidence and capabilities to turn these ideas into working realities
(Nixon, 2004)

Entrepreneurship
Entrepreneurship: a way of thinking, reasoning, and acting that is: opportunity obsessed holistic in approach and leadership balanced
(This definition of entrepreneurship has evolved over the past two decades from research at Babson College and the Harvard Business School and has recently been enhanced by Stephen Spinelli, Jr., and John H. Muller, Jr., Term Chair at Babson College.)

Lets check with specialists

Economists: Schumpeter: entrepreneurs bring resources together in unusual combinations to generate profit. Psychologists: Vesper: Entrepreneurs are achievement oriented individuals driven to seek challenges and new accomplishments Marxists: entrepreneurs are exploitative adventurers. Corporate managers : entrepreneurs as small business people who lack in potential needed for corporate management.

 Trait Theory seeks to identify common links that bind them Social Development Approach includes risk, family influences, constraints etc. Structure Opportunity Model includes wider social factors such as family, neighbourhood, school, peer group, work environment etc.

Who is an Entrepreneur?
Managers Opportunities
Future Goals
Change Status Quo

Possible

Entrepreneur

Satisfied manager

Perceived Capability
Blocked
Frustrated manager Classic bureaucrat

Burch's Entrep. Personality Traits

1.A desire to achieve

Conquer problems, create successful venture Their workload is very hard to match

2.Hard work

3.Nurturing quality 4.Acceptance of responsibility

Morally, legally and mentally accountable Want be rewarded for their efforts

5.Reward orientation

Burch's Entrep. Personality Traits

6.Optimism

Anything is possible Pride in something first class They are wholly "take charge" people

7.Orientation to excellence

8.Organization

9.Profit orientation

Profit primarily a gauge of performance

Characteristics of an Entrepreneur
Drive Perseverance Ambition Leader Survivor status Competitive Interpersonal skills Innovative skills Ability to bounce back Vision Motivation Self-confidence Self Satisfaction Extrovert Results orientated Committed Risk taker Sociable

Psychological Characteristics of Entrepreneurs

Need for achievement Locus of Control Internal External Risk-taking Prosperity Tolerance for ambiguity Type A Behaviour Impatient, time urgency, driving ambition, competitiveness Need for Independence

What is the Role of the Entrepreneur?

Opportunity recognition Market uncertainties
Dealing with the future

Risk taking
Businesses, financial and personal

Resource gathering Profits/Reward

Lumpkin and Dess, 1996

Entrepreneurial orientation
Pro-activeness Innovation Risk taking Competitive aggressiveness

CLASSIFICATION OF ENTREPRENUERS
INNOVATIVE ENTREPRENEUR s/he is the one who introduces a new product or a new method of production or opens anew market or explore new source of supply of raw material or carry out a new type of organization. :Schumpeter innovative entrepreneur are real entrepreneur. IMITATIVE / ADOPTIVE ENTREPRENEUR are those who imitate the successful entrepreneurs in techniques innovated by others.

DRONE ENTREPRENEUR Drone entrepreneur are those who never allow any change in their production & style of functioning. They never explore anything. They are also called Laggards. They are pushed out of market when product loses its marketability.
FABIAN ENTREPRENEUR are always cautious. They neither introduce new changes nor adopt new methods invented by others. They are lazy. They follow old customs, old method of production, techniques.

Lets differentiate
Small Business substitute income
Family PSF Franchise

Corporate Entrepreneurship/ intrapreneurship

Your Understanding.
It is more than mere creation of business Entrepreneurship is a process of innovation and new venture creation through four major dimensions individual, organizational, environmental and process. The entrepreneurship process is aided by collaborative networks in government, education and institutions.