Entrepreneurship - Misconceptions

‡ Successful entrepreneurship needs only a great idea. ‡ It is easy. ‡ It is a risky gamble. ‡ It is found only in small business. ‡ Entrepreneurial ventures and small business is the same thing. ‡ Entrepreneurship cannot be developed.

Entrepreneurship is:
‡ ‡ ‡ ‡ A multi-dimensional concept A purposeful economic activity. A dynamic and risky process. A fusion of capital, technology and human intellect.

arranging the supply of raw materials. finding site. discovering new sources of raw materials and selecting top managers for day-to-day operations of an enterprise. hiring labor.Entrepreneurship is: ‡ HIGGINS: Entrepreneurship is the function of seeking investment and production opportunity. . organizing an enterprise to undertake a new production process. raising capital. introducing a new technique and commodities.

maintain or aggrandise profit by production or distribution of economic goods and services. undertaken to initiate. .H.COLE: Entrepreneurship is the purposeful activity of an individual or a group of associated individuals.Entrepreneurship is: ‡ A.

Distinctive Features of Entrepreneurship ‡ ‡ ‡ ‡ ‡ Innovation Motivation Risk Taking Organizing Building Managerial Skills and Leadership .

organizer and innovator.Concept of Entrepreneur ‡ Derived from French word entreprendre which means to initiate or undertake. ‡ Now the word is used to indicate one who is risk taker. ‡ Richard Cantillon: ³Entrepreneur is an agent who buys factors of production at certain prices in order to combine them into a product with a view to selling it at uncertain prices in future.´ .

Concept of Entrepreneur ‡ Knight: ³Entrepreneur is the economic functioning who undertakes such responsibility of uncertainty which by its very nature cannot be insured nor capitalised nor salaried too.´ .

suppress anxieties. By selling the product in the market.Concept of Entrepreneur ‡ JEAN-BAPTISTE SAY: ³An entrepreneur who combines the land of one. rent on land. repair misfortunes and device expedients. and wages to labor. he pays interest on capital. He has to surmount obstacles. labor of another and capital of yet another and produces a product. What remains is his profit.´ .

´ .Concept of Entrepreneur ‡ New Encyclopedia Britannica: ³Entrepreneur is an individual who bears the risk of operating a business in the face of uncertainty about the future conditions.

Concept of Entrepreneur ‡ Joseph A. Those who bring resources together in an unusual situations to generate profits. a product with which consumers are not yet familiar. Schumpeter: ³Entrepreneur is an individual who introduces something new in the economy ± a method of production not yet tested by experience in the branch of manufacture concerned. a new source of raw material or of new markets and the like. .´ ‡ ³Entrepreneur are creative disrupters.

responds to them and exploits them as an opportunity.´ ‡ The entrepreneur uses resources not merely to solve problems but also to take advantage of opportunities. Drucker: ³Entrepreneur is one who always searches for changes.Concept of Entrepreneur ‡ Peter F. .

Concept of Entrepreneur ‡ Karl Vesper: ³Entrepreneurs are achievement oriented individuals driven to seek challenges and new accomplishments.´ .

WHO IS AN ENTREPENUER ‡ Entrepreneur are doers and not thinkers. ‡ They do unexpected things. ‡ They are the movers and shakers who constructively disrupt the status quo. ‡ They are change agents of progressive societies. ‡ Often adventurers. they can at once disrupt a society and instigate progress. .

ii) Rational entrepreneur ± one who is well ± informed about the general economic conditions and introduces changes that look more revolutionary. Schumpeter: Talks of adventurous entrepreneur ± one who acts on his own account.Types of Entrepreneurs ‡ Joseph A. introduces changes that others do not dare to experiment with. Cole: i) Empirical Entrepreneur ± one who hardly introduces anything revolutionary as follows the rule of thumb. . ‡ Arthur H.

.Concept of Entrepreneur iii) Cognitive Entrepreneur: One who is wellinformed. draws upon the advices and services of experts and introduces changes that reflect complete break from the existing frame of things.

Innovative Entrepreneur: Aggressive and industrial leader. Imitative or Adoptive Entrepreneur: He imitates innovations done by others. ii. new methods. CLARENCE DANHOF classifies as: . CDChin Shipyard used technology provided by Mitsubishi Heavy industries. he introduces new products. Japan. i. opens new markets and reorganises the enterprise. new methods of production.

refuses to adopt and use opportunities. lazy. Drone Entrepreneur: Laggard.CLARENCE DANHOF classifies as: iii. past practices. is guided by custom. No will or desire. tradition. skeptical. . iv. No risk but follows footsteps of predecessors. He may even be pushed out of market when product marketability. Fabian Entrepreneur ± cautions. shy.

Some of other Types of Entrepreneurs ‡ Nascent Entrepreneur: An individual who is in the process of starting a new business. established another new business. and continues that cycle of entrepreneurial behaviour. ‡ Serial Entrepreneur: An individual who has sold or closed an original business. ‡ Habitual Entrepreneur: An individual who has prior ownership experience. sold and closed it. ‡ Novice Entrepreneur: An individual who has no previous business experience as a founder inheritor. .

.Some of other types of Entrepreneurs ‡ Portfolio Entrepreneur: An individual who retains an original business and builds a portfolio of additional businesses through inheriting. establishing or purchasing them.

Entrepreneurial Values ‡ Values are the inner most layer of the self which provide goal and direction to an individual. ± Innovativeness ± Independence ± Outstanding Performance ± Respect for work .

.Entrepreneurial Attitude Tendencies to act in response to stimulus is called attitude. ‡ Imaginative ‡ Initiative ‡ An eye for economic activity ‡ Belief that he can change the environment ‡ Enjoyment of freedom of expression ‡ Analysis of situation and planning Action ‡ Satisfaction from successful completion of task. ‡ Tendency to take moderate risk.

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