Entrepreneurship

Entrepreneurship
• Entrepreneurship – one of the core
economic factors (material, labour, capital)
• Entrepreneurs:
• inspired people – who through the process
of disruption initiate progress in the society
• Risk takers who harness/use resources in
unusual ways to opportunities
 Entrepreneurship
• Richard Cantillon, French economist gave
the concept of entrepreneurship a central
role in economics
• He stated that entrepreneurs consciously
make decisions about resource allocation

Investment Transformation Profit/Loss

 Entrepreneurship
• Adam Smith spoke about the enterpriser as an individual
who undertook the formation of an organisation for
commercial purposes
• Jean Baptist Say, French economist, described an
entrepreneur as one who possessed certain arts and
skills of creating new economic enterprises; had insight
into society needs and was able to fulfill them
• Carl Menger, Austrian economist, defined an
entrepreneur as a change agent who tranforms
resources into useful goods and services, thereby
creating industrial growth
• Menger’s model talks of adding value to the original
resource in such a way as to eventually satisfy a human
need.
 Entrepreneurship
• Joseph Schumpeter, an Austrian
economist defined entrepreneurship as a
process and entrepreneurs as innovators
who use the process to challenge the
status quo through new combinations of
resources and new methods of commerce
 Entrepreneurship
• Rober Ronstadt - Entrepreneurship is the process of generating
incremental wealth.
This wealth is created by individuals who assume the major risks in
terms of equity, time, career commitment of providing value for
some product or service. The product or service may not be new or
unique but value must be infused by the entrepreneur by securing
and allocating the necessary skills and resources.
• Joseph Schumpeter - Entrepreneurship consists in doing things
that are not generally done in the course of business routine.
The entrepreneur reforms/revolutionizes the pattern of production by
exploiting an invention or untried technological possibility for
producing a new commodity or producing an old one in a new way,
by opening up a new source of supply of materials or new outlet for
products