EMERGENCE OF ENTREPRENEURIAL CLASS (WORLD

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Monirba {Allahabad university} Supported by – Manish kanojia (MBA III sem} Presented by:-

INTRODUCTION

The term Entrepreneur first appeared in the Frenchlanguage and was applied to leaders of military expeditions in the beginning of the 16th century. Richard Cantillion , an Irishman living in France was the first person to use the term Entrepreneur to refer to economic activities. He defined Entrepreneur as a person who buys factor services at certain prices for selling his product at uncertain prices in future. He viewed an Entrepreneur as a bearer of non insurable risk.

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Entrepreneurial class came into being in 17th century. Invention of Steam Engine resulted in Industrial revolution (1769). It changed small scale production to large scale production. Due to this Industrial revolution, the Agrarian society in Europe got transformed into Industrial society. The European society was mainly dominated by Artisans and Peasants and they witnessed large scale production. A group of people mainly traders took risk for large scale production and they were called Entrepreneurs.

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Due to large scale production the Entrepreneurs had surplus matter available with them. They needed market to get their product absorbed. As Britain had colonies all over the world so they marketed their products to other countries. This is how Entrepreneurship originated.

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OCCUPATIONAL ORIGIN

The Entrepreneurs largely emerged from trading community. Prof. Ashton conducted a survey in which he selected 47 British Innovators of Industrial revolution period (mainly from manufacturing ). Out of them… 1 2 3 4 5 17 10 12 4 4 Manufacturing Proprietors Artisans Peasants Traders- Consumer goods Industry Professional men

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social origin
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The Entrepreneurs originated mainly from predominant socially distinct groups and were innovative. They were outsiders and worked in Trade / Finance rather than manufacturing industries.

q -- Prof. Geertz in 1963 conducted a survey in Lebanon and found that 80% of the Entrepreneurs were Christians however their population was very low ,only 16% were Muslim entrepreneurs. q --In Pakistan the Entrepreneurs were mainly from kwasi caste and not from muslim community.

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Societal perspective of entrepreneurial growth

Historical development of entrepreneurship is governed by different factors. These factors are important determinants of entrepreneurial growth and thus gave a societal perspective to the entrepreneurship. These factors are as follows:(1) (2) (3) (4) (5) (6) Ethical value of Entrepreneur Minority group moral Need for achievement motivation Political system Exposure to new ideas and opportunities Industrial climate

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(1) Ethical value system:- Max Weber opined “ the spirit of rapid industrialization depends upon a nationalized technology , acquisition of money and its rational use for productivity and multiplication of money.”


(2) Minority group morale:- According to Hagen “ disadvantaged minority group is generally the source of entrepreneurship” . Ex:- Japan


(3) Need for achievement motivation:McClellandapproach suggests that need for achievement motivation is crucial factor in determining the level of industrial and economic

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(4) New ideas and opportunities:- Exposure to new ideas and opportunities also matter for people entering into manufacturing activities. Ex:- Arya samaj and Brahma samaj (5) Political systems:- Political system also plays an important role in entrepreneurial growth. Ex:- Japan (6) Regional industrial climate:- Favorable regional industrial climate also motivates people from different parts of the country to develop an entrepreneurial class in that particular region or area.

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conclusion
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The origin of emergence of entrepreneurial class lies in Industrial revolution. The concept of entrepreneurship originated from Europeand then propagated to different parts of the world. The entrepreneurs largely emerged from Trading community. The entrepreneurs were mainly Outsiders who settled away from their country of origin. Disadvantaged minority group is generally the source of entrepreneurship.

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