Entrepreneurs

hip
Types of Start up
Role of Entrepreneurship in Economic
Development

QUIDIP, Marjorie

Concept of
Entrepreneur
Individuals who take initiative to
establish business and work for
themselves on their own risk.
A key figure in economic growth.
The word entrepreneur has its origin in
French language which refers to
organizer of musical or other
entertainment.

Meaning of
Entrepreneur
An entrepreneur is a person who has already
started or is in the process of starting an
enterprise.
Other Definition
Joseph Schumpeter
Entrepreneur is an innovator who brings
economic development through new
combinations of factors of production.

Meaning of Entrepreneur

A. H.Cole

Entrepreneurship is a purposeful activity of an

individual or a group of associated individuals,
undertaken to initiate, maintain or organize
profit oriented business unit for the production
and distribution of economic goods and
service.

Types of Start up

Lifestyle
Firm
Privately held; usually achieves only
modest growth.
Qualities of a Lifestyle Business
Built to operate for many years.
Generates a good income for those
involved.
Allows founders to pursue passions &

Lifestyle
Firm
Examples of Lifestyle Businesses
Writer/Professional Blogger
Consultant
Ecommerce Store

Foundation
Company

Created from research and development.

Lays the foundation for a new business area.

One of the characteristics of the legal entities existing under
the status of "Foundations", is a wide diversity of structures and
purposes. Nevertheless, there are some common structural
elements that are the first observed under legal scrutiny or
classification.
Chart of a foundation
Legal requirements followed for establishment
Purpose of the foundation
Economic activity
Supervision and management provisions

Foundation Company
Accountability and Auditing provisions
Provisions for the amendment of the statutes or
articles of incorporation
Provisions for the dissolution of the entity
Tax status of corporate and private donors
Tax status of the foundation
Some of the above must be, in most jurisdictions,
expressed in the document of establishment.
Others may be provided by the supervising
authority at each particular jurisdiction.

Foundation
company

High-potential
venture
Receives the greatest investment interest and
publicity.
Starts out like a foundation company, but attains
rapid growth.
Also called gazelles, is integral to the economic
development of an area.

Role of
Entrepreneurs
hip in
Economic
Development

 Innovation is depicted as a key to economic development.

Product-evolution process: Process through which innovation
is developed and commercialized.
Iterative synthesis: Critical point in the product-evolution
process.

Three types of innovation:

Ordinary
Technological
Breakthrough

Role of
Entrepreneur
in
Economic
Development

Economists
view
The position of the entrepreneur
in modern production is like that
of the director of a play.
The entrepreneur directs
production and he must do
whatever is necessary for its
success.

Role in modern economic

development has at least three
aspects
The entrepreneur co-ordinates the other
factors of production.
Co-ordination involves selection of the right
type of factors, employment of each factor in
the right quantity, use of the best technical
devices, division of labor, reduction of waste
etc.

Role in modern economic

development has at least three
aspects

The Entrepreneur takes risks.

Abandonin
g the
steady
paycheck
Donating
personal
time (and
health)

Sacrificing
personal
capital

RIS
K

Betting on
a crucial
deadline

Trusting a
key
employee

Relying on
cash flow

Estimatin
g popular
interest

Role in modern economic development has

at least three aspects
The Entrepreneur innovates
The entrepreneur can undertake any type of
the following five categories of innovation.
The introduction of a new good or a new
quality of a good.
The introduction of a new method of
production.
The opening of a new market.

Role in modern economic development has

at least three aspects

The conquest of a new source of supply of raw

materials.
The carrying out of a new organization of any
industry.