ENTREPRENEURSHIP

DEVELOPMENT

Entrepreneur
According to Peter Drucker
Entrepreneur is one who always searches
for change, respond to it and exploits it as
an opportunity. innovation is a specific tool
of entrepreneurs, the mean by which they
exploit change as an opportunity for
different business or services, assuming the
risk for the sake of profit.

Entrepreneurship
Entrepreneurship is the process of creating
value by bringing together a unique package of
resources to exploit an opportunity.
OR
Entrepreneurship is the process of creating
something new with value of devoting the necessary
time and effort, assuming the accompanying
financial, and social risk and receiving the resulting
rewards of monetary and personal satisfaction and
independence

ENTERPRISE
A project or an activity undertaken or
especially one that is important or
difficult and that require energy or
boldness to complete.

ENTREPRENEURSHIP
Entrepreneurship is the process under which person
should develop the ability, capability, and tendency to
perform the following activities :
1. Identify business opportunities
2. Manage a business effort which brings profit to the
entrepreneur and the public
3. obtain success and richness by fulfilling the society's
needs.
4. Take calculated risks
5. Manage & utilize the factors of production to bring
economical development and enhance social welfare
6. Work hard and be prepared to make new changes that
can increase production quantity and quality from time
to time

A Evolution and Brief History Of

Entrepreneurship
Contents

Earliest Period
Middle Ages
17th Century
18th Century
19th Century
&
20th Century

Evolution Of
Entrepreneurship
The word entrepreneur is derived from the French
word enterprendre it means to undertake or
go-between
Entrepreneur is the person who brings together the
factors of production and combines them into a
product.
He organizes and manages a business unit assuming
the risk for profit.
Entrepreneur is an individual who takes risk and starts
something new.

Earliest Period
Marco polo , as a go-between was an Italian. He tried to
establish trade route to the far East
As a go-between, He had to sign a contract with a money
person or venture capitalist to sell his goods.
Capitalist was the passive risk bearer and merchant-adventurer
took the active role in trading, bearing all physical and
emotional risks.
When the merchant-adventurer successfully sold the goods
and completed the trip, the profits were divided with the
capitalist taking most of them(up to 75%), while the merchantadventurer settled for the remaining 25 %.

Middle Ages
Entrepreneur used to describe a
person who
managed large
production projects.
Individuals did not take any risks
because all the resources used is
provided by the government of the
country, entrepreneur job is just to
manage it.

16th CENTURY:
16th CENTURY:
The term entrepreneur was referred to a person who was involved
in military expeditions.

17th CENTURY:
The connection of the actual risk with entrepreneurship
developed in the 17th century.
It was Richard Cantillon, French Economist, who applied
the term entrepreneur to business for the first time (1734).
He defined an entrepreneur as a person or an agent who
buys factor services at certain prices with a view to sell
them at uncertain prices in the future.
The profit was taken (or loss was borne) by the
entrepreneur.

Concept 1:ENTREPRENEUR = RISK BEARER

th
18
18thCENTURY:
CENTURY:

Jean-Baptiste
Jean-BaptisteSay,
Say,(industrialist)
(industrialist)inin1803
1803An
Anentrepreneur
entrepreneurisisan
an
economic
economicagent
agentwho
whounites
unitesall
allmeans
meansofofproductionproduction-land,
land,labour
labour
and
andcapital
capitaltotoproduce
produceaaproduct
productor
orservice.
service.

Product
Productsales,
sales,pay
payrent,
rent,wages,
wages,interest
interestand
andwhat
whatremains
remainsisisprofit.
profit.

He
Heshifts
shiftseconomic
economicresources
resourcesfrom
froman
anarea
areaofoflower
lowertotoan
anarea
areaofof
higher
higherproductivity.
productivity.
Concept
Concept2:2:ENTREPRENEUR
ENTREPRENEUR==ORGANISER
ORGANISER

th
19
19th Centuries
Centuries

Joseph
JosephA.
A.Schumpeter
Schumpeter(1934)
(1934)

The
Theentrepreneur
entrepreneurininan
anadvanced
advancedeconomy
economy isis an
anindividual
individualwho
who
introduce
introducesomething
somethingnew
newininthe
theeconomyeconomy-aamethod
methodofofproduction
production

not
not yet
yet tested
tested by
by experience
experience inin the
the branch
branch ofof manufacturing,
manufacturing, aa
product
productwith
withwhich
whichconsumers
consumersare
arenot
notyet
yetfamiliar,
familiar,aanew
newsource
source
ofofraw
rawmaterial
materialor
orofofnew
newmarkets
marketsand
andthe
thelike.
like.

Concept
Concept3:3:ENTREPRENEUR
ENTREPRENEUR==INNOVATOR
INNOVATOR

20th Centuries
In the early 20th centuries, entrepreneurs were
frequently not distinguished from managers and were
viewed mostly from an economic perspective.
The entrepreneur organizes and manages an
enterprise for personal gain.
The materials consumed in the business, for the use
of the land, for the services he employs, and for the
capital he requires.