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Chapter – 2 Entrepreneurship

Chapter – 2 Entrepreneurship

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Published by samritigoel

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Published by: samritigoel on Mar 16, 2010
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The process undertaken by an entrepreneur to augment his business interestsgave birth to “
ENTREPRENEURSHIP”.THE CONCEPT OF ENTREPRENEURSHIPEntrepreneur Entrepreneurship Enterprise Person Process of action Object
is the act of being anentrepreneur , which is a Frenchword meaning "one who undertakes an endeavor".
Entrepreneurs assemble resources including innovations, finance and business acumen in an effort to transform innovations into economic goods.
The most obvious form of entrepreneurship is that of startingnew businesses; however, in recent years, the term has been extended toinclude social and political forms of entrepreneurial activity.
According to Robert L Schwarz, what is the basis for entrepreneurshipcharacteristics can be described as follows: “The entrepreneur is essentiallya visualizer and an actualizer. He can visualize something, and when hevisualizes it he sees exactly how to make it happen.”
The concept of entrepreneurship was first established in the 1700s, and themeaning has evolved ever since. Many simply equate it with starting one'sown business. Most economists believe it is more than that.
To some economists, the entrepreneur is one who is willing to bear the risk of a new venture if there is a significant chance for profit.
Others emphasize the entrepreneur's role as an innovator who markets hisinnovation.
Still other economists say that entrepreneurs develop new goods or  processes that the market demands and are not currently being supplied.
Business expert Peter Drucker (1909-2005) took this idea further, describingthe entrepreneur as someone who actually searches for change, responds toit, and exploits change as an opportunity.
Most economists today agree that entrepreneurship is a necessary ingredientfor stimulating economic growth and employment opportunities in allsocieties.
The word is derived from the French word ‘Entrependne’ and theGerman word ‘Uternchmen’ both of which refers to individuals who areundertakers i.e. who can undertake ‘risk’ by setting up a new enterprise.
They are contractors who bear the risk of profit as well as loss. They aresoldiers of fortune, adventurers or merchants.The concept of 
has a wide range of meanings. On the oneextreme an
is a person of very high aptitude who pioneers change, possessing characteristics found in only a very small fraction of the population.
Austrian economist Joseph Schumpeter 's definition of entrepreneurship placed anemphasis on innovation, such as:1.New products2.New production methods3.New markets4.New forms of organizationWealth is created when such innovation results in new demand. From thisviewpoint, one can define the function of the entrepreneur as one of combiningvarious input factors in an innovative manner to generate value to the customer with the hope that this value will exceed the cost of the input factors, thusgenerating superior returns that result in the creation of wealth.
Entrepreneurship vs. Small Business
Many people use the terms "entrepreneur" and "small business owner"synonymously. While they may have much in common, there are significantdifferences between the entrepreneurial venture and the small business.Entrepreneurial ventures differ from small businesses in these ways:1.
Amount of wealth creation
rather than simply generating an income streamthat replaces traditional employment, a successful entrepreneurial venture createssubstantial wealth, typically in excess of several million dollars of profit.

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its great can i get a reference for shumpeter definition of entrepreneurship pls thanks
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