CONTENTS

Concept and introduction Theories that are associated with it Factors which are influencing the development of entrepreneurship

Entrepreneur
The word Entrepreneur is derived from the French word Entreprendre Which means to undertake. In the early 16th century the French men who organized and lead military expeditions were referred to as Entrepreneurs. After 1700, the term was applied to other types of adventures, mainly civil engineering like construction of roads etc.

Entrepreneurship
Entrepreneurship can be defined as a process of action an Entrepreneur undertakes to establish his enterprise. It involves: New investment and production Process Raising Capital Hiring Labor Arranging for the supply of Raw Material Selecting the Managers for operations of this Enterprise.

Concept of Entrepreneurship
The early history of entrepreneurship in India reflect from the culture , customs and tradition of the Indian people. After the second world war entrepreneurship received new meaning for attaining economic development within the shortest possible time. The young entrepreneur should be motivated to come out with determination to do something of their own and also to contribute to the national income and wealth in the economy.

Theories of Entrepreneurship

Economic Theory

Sociological Theory

Psychological Theory

Entrepreneurship Innovation Theory

Economic Theory

Entrepreneurship and economic growth take place when the economic conditions are favorable. Economic incentives are the main motivators for entrepreneurial activities. Economic incentives include taxation policy, industrial policy, sources of finance and raw material, infrastructure availability , investment & marketing opportunities, access to information about market conditions, technology etc.

Sociological Theory

Entrepreneurship is likely to get a boost in a particular social culture. Societys values, religious beliefs, customs influence the behavior of individuals in a society . The entrepreneur is a role performer according to the role expectations by the society.

Psychological Theory

Entrepreneurship gets a boost when society has sufficient supply of individuals with necessary psychological characteristics, The psychological characteristics include need for high achievement, a vision of foresight, ability to face opposition, These characteristics are formed during the individuals upbringing which stress on standards of excellence.

Entrepreneurship Innovation Theory

Theory by Joseph Schumpeter, who believes that entrepreneur helps the process of development in an economy, He says that an entrepreneur is the one who is innovative, creative and has a foresight,
According to him, innovation occurs when, - introduces a new product - introduces a new production method - opens up a new market - finds out a new source of raw material supply - introduces new organization in any industry.

Factors influencing Entrepreneurship Development

Social Negative attitude Social status Lack of social interaction

Environmental
Political Economical Capital Labor Raw material market

Managerial Changing the attitude of employees Change in the knowledge level

Technical Knowledge of recent technology Availability of equipments