Introduction Entrepreneur and entrepreneurship Entrepreneur: An entrepreneur is a person who starts an enterprise.

He searches for change and responds to it. From the French word entrependre meaning one who undertakes or one who is a go-between. According to Richard cantillon(1725), 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. According to Peter Drucker(19640: An entrepreneur searches for change, responds to it and exploits opportunities. Innovation is a specific tool of an entrepreneur hence an effective entrepreneur converts a source into a resource. Entrepreneurship: Entrepreneurship can be described as a process of action an entrepreneur undertakes to establish his enterprise. Entrepreneurship is a creative activity. It is the ability to create and build something from practically nothing. It is a knack of sensing opportunity where others see chaos, contradiction and confusion. Entrepreneurship is the attitude of mind to seek opportunities, take calculated risks and derive benefits by setting up a venture. According to Peter Drucker, Entrepreneurship is defined as a systematic innovation, which consists in the purposeful and organized search for changes, and it is the systematic analysis of the opportunities such changes might offer for economic and social innovation.
NATURE AND DEVELOPMENT OF ENTREPRENEURSHIP The term entrepreneur comes from the French and translates "between-taker" or "go-between." Earliest Period In this period the money person (forerunner of the capitalist) entered into a contract with the go-between to sell his goods. While the capitalist was a passive risk bearer, the merchant bore all the physical and emotional risks. Middle Ages In this age the term entrepreneur was used to describe both an actor and a person who managed large production projects. In such large production projects, this person did not take any risks, managing the project with the resources provided. A typical entrepreneur was the cleric who managed architectural projects. 17th Century In the 17th century the entrepreneur was a person who entered into a contract with the government to perform a service Richard Cantillon, a noted economist of the 1700s, developed theories of the

entrepreneur and is regarded as the founder of the term. He viewed the entrepreneur as a risk taker who "buy[s] at certain price and sell[s] at an uncertain price, therefore operating at a risk." 18th Century In the 18th century the person with capital was differentiated from the one who needed capital. In other words, entrepreneur was distinguished from the capital provider. Many of the inventions developed during this time as was the case with the inventions of Eli Whitney and Thomas Edison were unable to finance invention themselves. Both were capital users (entrepreneurs), not capital providers (venture capitalists.) Whitney used expropriated crown property. Edison raised capital from private sources. A venture capitalist is a professional money manager who makes risk investments from a pool of equity capital to obtain a high rate of return on investments. 19th and 20th Centuries In the late 19th and early 20th centuries, entrepreneurs were viewed mostly from an economic perspective. The entrepreneur "contributes his own initiative, skill and ingenuity in planning, organizing and administering the enterprise, assuming the chance of loss and gain." Andrew Carnegie is one of the best examples of this definition, building the American steel industry on of the wonders of industrial world, primarily through his competitiveness rather than creativity. In the middle of the 20th century, the notion of an entrepreneur as an innovator was established.

ENTREPRENEURIAL DECISION PROCESS

For the person who actually starts his or her own business, the experience is filled with enthusiasm, frustration, anxiety, and hard work. There is a high failure rate due to such things as poor sales (lack of demand), intense competition, lack of capital, or lack of managerial ability. The financial and emotional risk can also be very high. What, then, causes a person to make this difficult decision? Many individuals have difficulty bringing their ideas to the market and creating a new venture. Yet, entrepreneurship and the actual entrepreneurial decision have resulted in several million new businesses being started throughout the world, even in previously controlled economies such as those of China, Hungary, Poland, and Russia. While no one knows the exact number, in the United States (which leads the world in company creation) estimates indicate that from 1 to 2 million new companies have been created each year in recent years. Indeed, millions of companies are created despite recession, inflation, high interest rates, lack of infrastructure, economic uncertainty, and the fear of failure. Each of these companies is created through a very personal human process that, although unique, has some characteristics common to all. Like all processes, the entrepreneurial decision entails a movement, from something to something a movement from a present life-style to creating a new enterprise.

Entrepreneurship and Economic Development

Entrepreneurial spirit of people is greatly responsible for economic development of any country. There is no resource including diamond mines as valuable as human resource. South Africa and a few other African countries despite their fertile gold and diamond mines have remained poor/relatively poor, where as Japan with literally no natural resources and having suffered devastation during WWII became a developed country in just three decades. Therefore, if a country allows its human resources to be unutilized/underutilized (Unemployment/disguised unemployment), its economic development would be severely hampered. Failure of communism worldwide and our own harrowing experience with socialism has shown that Govt has no business to be in Business. Govt should only govern. Business activity should be left to people. And this is where entrepreneurs enter the picture. (a) Entrepreneurs set up enterprises which provide employment not only to themselves but to many others directly and indirectly and thereby put into utilization Human Resource of the country. (b) Entrepreneurs combine resources, put their time and efforts and produce goods or services. The Value Addition that they do to the resources brings prosperity to the country. (c) What they contribute productivity, output, value addition, income and Employment. (d) Entrepreneurship is a Low Cost Strategy. An entrepreneur works with maximum financial efficiency in order to maximize his profits. Entrepreneurs rarely indulge themselves in luxury of Business Class travel and 5 Star Hotel comforts which the managers avail without fail. Thus, many such costs are either avoided or kept in check. Entrepreneurs perform the crucial role themselves. (e) The spirit of Entrepreneurship Drive, achieving higher goals, creativity, innovative attitude. (f) A dynamic society emerges and the spirit spreads like a chain reaction Many entrepreneurs have proved to be catalyst for growth of a bevy of smaller entrepreneurs. Jamshedpur was a small town before Tata Steel Plant was set up. Once the plant came up in the place, many people set up their small enterprises to cater to the needs of the growing population.
ETHICS AND SOCIAL RESPONSIBILITY OF ENTREPRENEURS The entrepreneur must establish a balance between ethical exigencies, economic expediency, and social responsibility. A managers attitudes concerning corporate responsibility tend to be supportive of laws and professional codes of ethics. Entrepreneurs have few reference persons, role models, and developed internal ethics codes. Entrepreneurs are sensitive to peers pressure and social norms in the community as well as pressures from their companies.

While ethics refers to the "study of whatever is right and good for humans," business ethics concerns itself with the investigation of business practices in light of human values. The word "ethics" stems from the Greek thos, meaning custom and usage. Development of Our Ethical Concepts Socrates, Plato, and Aristotle provide the earliest writings dealing with ethical conceptions; earlier writings involving moral codes can be found in both Judaism and Hinduism.
American attitudes on ethics result from three principle influences: Judeo-Christian heritage, a

belief in individualism and opportunities based on ability rather than social status. Research on business ethics can be broken down into four broad classifications: 1. Pedagogically-oriented inquiry 2. Theory-building without empirical testing 3. Empirical research, measuring the attitudes and ethical beliefs of students and academic faculty.