INTRODUCTION

Entrepreneurship is the process of designing, launching and running a new business,

which is often initially a small business. The people who create these businesses are
called Entrepreneur. Entrepreneurship has been described as the "capacity and
willingness to develop, organize and manage a business venture along with any of its
risks in order to make a profit. While definitions of entrepreneurship typically focus on
the launching and running of businesses, due to the high risks involved in launching
a start-up, a significant proportion of start-up businesses have to close due to "lack of
funding, bad business decisions, an economic crisis, lack of market demand or a
combination of all of these.

A broader definition of the term is sometimes used, especially in the field of economics.
In this usage, an Entrepreneur is an entity which has the ability to find and act upon
opportunities to translate inventions or technology into new products: "The entrepreneur
is able to recognize the commercial potential of the invention and organize the capital,
talent, and other resources that turn an invention into a commercially viable innovation.
“In this sense, the term "Entrepreneurship" also captures innovative activities on the part
of established firms, in addition to similar activities on the part of new businesses.
 REVIEW OF LITRETURE

"Entrepreneur" is a loanword from French. The word first appeared in the French

dictionary entitled Dictionnaire Universel de Commerce compiled by Jacques des
Bruslons and published in 1723.Especially in Britain, the term "adventurer" was often
used to denote the same meaning. The study of entrepreneurship reaches back to the work
in the late 17th and early 18th centuries of Irish-French economist Richad Cantillon,
which was foundational to classical economics. Cantillon defined the term first in
his Essai sur la Nature du Commerce en Général, or Essay on the Nature of Trade in
General, a book William Stanley Jevons considered the "cradle of political
economy".Cantillon defined the term as a person who pays a certain price for a product
and resells it at an uncertain price, "making decisions about obtaining and using the
resources while consequently admitting the risk of enterprise". Cantillon considered the
entrepreneur to be a risk taker who deliberately allocates resources to exploit
opportunities in order to maximize the financial return.Cantillon emphasized the
willingness of the entrepreneur to assume the risk and to deal with uncertainty, thus he
drew attention to the function of the entrepreneur and distinguished between the function
of the entrepreneur and the owner who provided the money.

Jean-Baptiste Say also identified entrepreneurs as a driver for economic development,

emphasizing their role as one of the collecting factors of production allocating resources
from less to fields that are more productive. Both Say and Cantillon belonged to French
school of thought and known as the physiocrats.

Dating back to the time of the medieval guilds in Germany, a craftsperson required

special permission to operate as an entrepreneur, the small proof of competence (Kleiner
Befähigungsnachweis), which restricted training of apprentices to craftspeople who held
a Meister certificate. This institution was introduced in 1908 after a period of so-called
freedom of trade (Gewerbefreiheit, introduced in 1871) in the German Reich. However,
proof of competence was not required to start a business. In 1935 and in 1953, greater
proof of competence was reintroduced (Großer Befähigungsnachweis Kuhlenbeck),
which required craftspeople to obtain a Meister apprentice-training certificate before
being permitted to set up a new business.

20TH CENTURY

In the 20th century, entrepreneurship was studied by Joseph Schumpeter in the 1930s and
other Austrian economists such as Carl Menger, Ludwig von Mises and Friedrich von
Hayek. While the loan from French of the word "entrepreneur" dates to the 1850, the
term "entrepreneurship" was coined around the 1920s. According to Schumpeter, an
entrepreneur is willing and able to convert a new idea or invention into a successful
innovation. Entrepreneurship employs what Schumpeter called "the gale of creative
destruction" to replace in whole or in part inferior offerings across markets and
industries, simultaneously creating new products and new business models, thus creative
destruction is largely responsible for long-term economic growth. The idea that
entrepreneurship leads to economic growth is an interpretation of the residual
in endogenous growth theory and as such continues to be debated in academic
economics. An alternative description by Israel Kirzner suggests that the majority of
innovations may be incremental improvements such as the replacement of paper with
plastic in the construction of a drinking straw that require no special qualities.

For Schumpeter, entrepreneurship resulted in new industries and in new combinations of

currently existing inputs. Schumpeter's initial example of this was the combination of a
steam engine and then current wagon making technologies to produce the horseless
carriage. In this case, the innovation (i.e. the car) was transformational, but did not
require the development of dramatic new technology. It did not immediately replace the
horse-drawn carriage, but in time

Incremental improvements reduced the cost and improved the technology, leading to
the modern auto industry. Despite Schumpeter's early 20th-century contributions, the
traditional microeconomic theory did not formally consider the entrepreneur in its
theoretical frameworks (instead of assuming that resources would find each other through
a price system). In this treatment, the entrepreneur was an implied but unspecified actor,
consistent with the concept of the entrepreneur being the agent of x-efficiency.

For Schumpeter, the entrepreneur did not bear risk: the capitalist did. Schumpeter
believed that the equilibrium was imperfect. Schumpeter (1934) demonstrated that the
changing environment continuously provides new information about the optimum
allocation of resources to enhance profitability. Some individuals acquire the new
information before others and recombine the resources to gain an entrepreneurial profit.
Schumpeter was of the opinion that entrepreneurs shift the production possibility curve to
a higher level using innovations.

Initially, economists made the first attempt to study the entrepreneurship concept in
depth. Alfred Marshall viewed the entrepreneur as a multi-tasking capitalist and observed
that in the equilibrium of a completely competitive market there was no spot for
"entrepreneurs" as an economic activity creator.
 21TH CENTURY

In the 2000s, entrepreneurship has been extended from its origins in for-profit businesses
to include social entrepreneurship, in which business goals are sought alongside social,
environmental or humanitarian goals and even the concept of the political
entrepreneur. Entrepreneurship within an existing firm or large organization has been
referred to as intrapreneurship and may include corporate ventures where large entities
"spin-off" subsidiary organizations.

Entrepreneurs are leaders willing to take risk and exercise initiative, taking advantage of
market opportunities by planning, organizing and deploying resources, often by
innovating to create new or improving existing products or services.In the 2000s, the
term "entrepreneurship" has been extended to include a specific mindset resulting in
entrepreneurial initiatives, e.g. in the form of social entrepreneurship, political
entrepreneurship or knowledge entrepreneurship.

According to Paul Reynolds, founder of the Global Entrepreneurship Monitor, "by the

time they reach their retirement years, half of all working men in the United States
probably have a period of self-employment of one or more years; one in four may have
engaged in self-employment for six or more years. Participating in a new business
creation is a common activity among U.S. workers over the course of their careers".In
recent years, entrepreneurship has been claimed as a major driver of economic growth in
both the United States and Western Europe.

Entrepreneurial activities differ substantially depending on the type of organization and

creativity involved. Entrepreneurship ranges in scale from solo, part-time projects to
large-scale undertakings that involve a team and which may create many jobs. Many
"high value" entrepreneurial ventures seek venture capital or angel funding (seed money)
in order to raise capitalfor building and expanding the business. Many organizations exist
to support would-be entrepreneurs, including specialized government agencies, business
incubators (which may be for-profit, non-profit, or operated by a college or
university), science parks and non-governmental organizations, which include a range of
organizations including not-for-profits, charities, foundations and business advocacy
groups (e.g. Chambers of commerce). Beginning in 2008, an annual "Global
Entrepreneurship Week" event aimed at "exposing people to the benefits of
entrepreneurship" and getting them to "participate in entrepreneurial-related activities"
was launched.

PSYCHOLOGICAL MAKEUP

Stanford University economist Edward Lazear found in a 2005 study that variety in

education and work experience was the most important trait that distinguished
entrepreneurs from non-entrepreneurs. A 2013 study by Uschi Backes-Gellner of
the University of Zurich and Petra Moog of the University of Siegen in Germany found
that a diverse social network was also important in distinguishing students that would go
on to become entrepreneurs.

Studies show that the psychological propensities for male and female entrepreneurs are
more similar than different. Empirical studies suggest that female entrepreneurs possess
strong negotiating skills and consensus-forming abilities. Asa Hansson, who looked at
empirical evidence from Sweden, found that the probability of becoming self-employed
decreases with age for women, but increases with age for men. She also found that
marriage increased the probability of a person becoming an entrepreneur.

Jesper Sørensen wrote that significant influences on the decision to become an

entrepreneur are workplace peers and social composition. Sørensen discovered a
correlation between working with former entrepreneurs and how often these individuals
become entrepreneurs themselves, compared to those who did not work with
entrepreneurs. Social composition can influence entrepreneurialism in peers by
demonstrating the possibility for success, stimulating a "He can do it, why can't I?"
attitude. As Sørensen stated: "When you meet others who have gone out on their own, it
doesn't seem that crazy".

Entrepreneurs may also be driven to entrepreneurship by past experiences. If they have

faced multiple work stoppages or have been unemployed in the past, the probability of
them becoming an entrepreneur increases. Per Cattell's personality framework, both
personality traits and attitudes are thoroughly investigated by psychologists. However, in
case of entrepreneurship research these notions are employed by academics too, but
vaguely. According to Cattell, personality is a system that is related to the environment
and further adds that the system seeks explanation to the complex transactions conducted
by both traits and attitudes. This is because both of them bring about change and growth
in a person. Personality is that which informs what an individual will do when faced with
a given situation. A person's response is triggered by his/her personality and the situation
that is faced.

Innovative entrepreneurs may be more likely to experience what psychologist Mihaly

Csikszentmihalyi calls "flow". "Flow" occurs when an individual forgets about the
outside world due to being thoroughly engaged in a process or activity. Csikszentmihalyi
suggested that breakthrough innovations tend to occur at the hands of individuals in that
state. Other research has concluded that a strong internal motivation is a vital ingredient
for breakthrough innovation. Flow can be compared to Maria Montessori's concept of
normalization, a state that includes a child's capacity for joyful and lengthy periods of
intense concentration. Csikszentmihalyi acknowledged that Montessori's prepared
environment offers children opportunities to achieve flow. Thus quality and type of early
education may influence entrepreneurial capability.

Research on high-risk settings such as oil platforms, investment banking, medical

surgery, aircraft piloting and nuclear power plants has related distrust to failure
avoidance.When non-routine strategies are needed, distrusting persons perform better
while when routine strategies are needed trusting persons perform better. This research
was extended to entrepreneurial firms by Gudmundsson and Lechner. They argued that in
entrepreneurial firms the threat of failure is ever present resembling non-routine
situations in high-risk settings. They found that the firms of distrusting entrepreneurs
were more likely to survive than the firms of optimistic or overconfident entrepreneurs.
The reasons were that distrusting entrepreneurs would emphasize failure avoidance
through sensible task selection and more analysis. Kets de Vries has pointed out that
distrusting entrepreneurs are more alert about their external environment. He concluded
that distrusting entrepreneurs are less likely to discount negative events and are more
likely to engage control mechanisms. Similarly, Gudmundsson and Lechner found that
distrust leads to higher precaution and therefore increases chances of entrepreneurial firm
survival.

Researchers Schoon and Duckworth completed a study in 2012 that could potentially
help identify who may become an entrepreneur at an early age. They determined that the
best measures to identify a young entrepreneur are family and social status, parental role
modeling, entrepreneurial competencies at age 10, academic attainment at age 10,
generalized self-efficacy, social skills, entrepreneurial intention and experience of
unemployment.
 ENTREPRENEUR AND ENTREPRENEURSHIP

Entrepreneurship is a driver of competitive advantage. Entrepreneurship is viewed as a

key competency creativity and innovation. Entrepreneurship has been recognized as
being of fundamental importance for the economy in every country. The entrepreneurial
process involving all the functions, activities, and actions associated with the perception
of opportunities and creation of organizations to pursue them has generated considerable
academic interest.On the other hand Entrepreneurs in all of the organization has a
significant role to the success and growth of organization, Society and country.The main
purpose of this survey was to identify Concept Entrepreneurship, Entrepreneurs and
Entrepreneurship Training.Also,in this paper at first we have tried to review the literature
of Entrepreneurial Activities concept. Finally we explain about Entrepreneurs’ Traits and
Characteristics.

Contemporary writers in management and business have presented a wide range of

theories of entrepreneurship. Many of the leading thinkers remain true to the
SaySchumpeter tradition while offering variations on the theme. For instance, in his
attempt to get at what is special about entrepreneurs, Peter Drucker starts with Say‟s
definition, but amplifies it to focus on opportunity. Drucker does not require
entrepreneurs to cause change, but sees them as exploiting the opportunities that change
(InTechnology, consumer preferences, social norms, etc.) creates. He says, “This defines
entrepreneur and entrepreneurship the entrepreneur always searches for change, responds
to it, and exploits it as an opportunity.” The notion of “opportunity” has come to be
central to many current definitions of entrepreneurship. It is the way todays management
theorists capture Say s notion of shifting resources to areas of higher yield. An
opportunity, presumably, means an opportunity to create value in this way. Entrepreneurs
have a mind-set that sees the possibilities rather than the problems created by change. For
Drucker, starting a business is neither necessary nor sufficient for entrepreneurship. He
explicitly comments, “Not every new small business is entrepreneurial or represents
entrepreneurship.” He cites the example of a “husband and wife who open another
delicatessen store or another Mexican restaurant in the American suburb” as a case in
point. Drucker also makes it clear that entrepreneurship does not require a profit motive.
Early in his book on Innovation and Entrepreneurship, Drucker asserts, “No better text
for a History of Entrepreneurship could be found than the creation of the modern
university, and especially the modern American university.” He then explains what a
major innovation this was at the time. Later in the book, he devotes a chapter to
entrepreneurship in public service institutions (Khanifar et al, 2012). The objective of the
paper was to identify entrepreneurship Concept and Entrepreneurs Traits. So in this
article, researchers provide various definitions of entrepreneurship, entrepreneurship and
entrepreneurial activity

CONCEPT OF ENTREPRENEURSHIP

Literature abounds as to what entrepreneurship is all about. Davis in 1983, as cited in

Igbo (2005) sees entrepreneurship as the creation and running of one’s own business.
Timmons in 1987 also cited in Igbo (2005), sees it as the creation, building and
distribution of something of value from practically nothing to individuals, groups,
organizations and society. He summed up by stating that it involves planning and
organizing small business ventures through the mobilization of people and resources to
meet people’ s needs. Scholarly J. Bus.Admin. 151 According to Schumpeter (1995),
entrepreneurship is a process of change where innovation is the most vital function of the
entrepreneur. It is the basic requirement for economic development in a free enterprise or
mixed economy where innovation is the basis of development. Innovation in a system can
increase the marginal productivity of the factors of production. UNIDO (1999) defined
entrepreneurship as the process of using initiative to transform business concept to new
venture, diversify existing venture or enterprise to high growing venture potentials. The
above definitions and discussions point to the fact that entrepreneurship involves
innovation, development, recognition, seizing opportunities and converting opportunities
to marketable ideas, value while bearing the risk of competition. Entrepreneurial
development is a catalyst for economic, social and industrial development. Peter and
Clark in 1997 as cited in Egai (2008) affirms that entrepreneurial development is a
disposition to accept new ideas, new methods and making people more interested in
present and future than the past. The entrepreneurial class provides leadership in resource
change, innovation, technical progress and capital formation to produce new knowledge,
new production techniques/possibilities, profits and economic growth. Historically
entrepreneurship development Nigeria has remained excluded from industrial policy until
changes began to occur in 1980s due to am bivalency of competition and increasing
service sector.According to Audretsch and Thurik (2001) the role of the entrepreneurial
sector changed when industrial comparative advantages shifted towards knowledgebased
economic activities. Large firms lost their competitive edge while smaller and more
flexible entrepreneurial firms gained new importance in the increasing knowledge-based
economy. New dynamic ventures are acknowledged to be drivers of innovation.

ENTREPRENEURSHIP THEORY

Within the study of entrepreneurship, a variety of approaches have been selected to

describe entrepreneurs (Cunningham and Lischeron, 1991).Studies focusing on
entrepreneurs‟ personalities, backgrounds, early experiences (Carland, Hoy, Boulton and
Carland, 1984), and traits have been widely criticized and have generally produced
disappointing findings. More recently, studies have increasingly focused upon the
behavioral aspects of entrepreneurs. The cognitive processes in the decision making
reported by entrepreneurs have also been explored. A particularly promising research
focus has been entrepreneurial cognition, the way entrepreneurs think Amiri and
Marimaei 152 and the individual decision-making processes or heuristics adopted by
entrepreneurs.Entrepreneurs regularly find themselves in situations that tend to maximize
the potential impact of various heuristics. Busenitz and Barney have argued that the level
of uncertainty entrepreneurs‟ face is substantially greater than that of managers of well-
established organizations who have access to historical trends, past performance, and
other information that can usually be readily obtained.Entrepreneurs often have to make
decisions with little or no historical trends, no previous levels of performance, and little if
any specific market information surrounding whether new products or services will be
accepted.However, entrepreneurs can gain new insights from interpreting new
combinations of information via unique heuristic-based logic.Simplifying heuristics may
have a great deal of utility in enabling entrepreneurs to make decisions that exploit brief
windows of opportunity. We develop below the implications of this approach for the
understanding of entrepreneurial behavior by different types of entrepreneur and within
different organizational forms.

ENTREPRENEURS AND ENTREPRENEURIAL ACTIVITIES

Entrepreneurship has long been considered a significant factor for socioeconomic growth
and development because it provides job opportunities, offers a variety of consumer
goods and services, and generally increases national prosperity and competitiveness.The
entrepreneur is shorthand for uncertainty, imperfect information, and the unknown.
Entrepreneurship, innovation and new ventures provide the fuel for the engine of the
modern development. The importance of these three elements cannot be overstated. The
process of entrepreneur's hip has been defined as managerial behavior which consistently
exploits opportunities to deliver result beyond one's own capabilities. Entrepreneurs are
typically described as individuals who perceive a vision, commit themselves to that
vision, and almost single handedly carry the vision to its successful implementation. Gibb
states that "the traditional economist's view of the entrepreneur as an opportunity seeker,
someone who combines the factors of production in an innovative manner and who seeks
out and exploits opportunities and gaps in the market". The literature has "conceptualized
entrepreneurship as a process by which individuals either on their own or inside
organizations pursue opportunities without regard to the resources they currently
control". Entrepreneurship centers itself on a vision, a vision that allows the entrepreneur
to see beyond the confines of resource constraints and identify opportunities missed by
others. Entrepreneurs respond to environmental turbulence and uncertainty, attempting to
establish a strong strategic position, albeit temporary in nature; they also create
uncertainty for others with proactive initiatives. They create opportunities by disturbing
the existing status quo, they spot and seize new opportunities ahead of any competitors,
and they stay vigilant to potential threats. In a situational sense entrepreneurship is not so
much a characterization consisting of weights on the personality vector of "intuition,
independence, charisma and creativity" but rather a skills profile made up of aptitudes
which have been mastered to a lesser or greater degree. They may include the ability to
negotiate, present a case and conduct talk.Kirzner, the Austrian economist and vigorous
theorist of entrepreneurship, generally defines entrepreneurial behavior as
"entrepreneurial discovery" ubiquitous in all human action, not just economic activity.
There are two major streams of theory building in entrepreneurship.

PSYCHOLOGICAL TERM

Studies on the psychology of entrepreneurs look at what distinguishing psychological

characteristics entrepreneurs have. These characteristics have been correlated with
entrepreneurial performance in an attempt to predict who will become successful
entrepreneurs. These psychological theories take a broad view of psychology. The three
factors most often studied in relation to entrepreneurs are:

1. Psychological influences;

2. Personal characteristics;
3. Effects of previous experience on, the individual.

The psychological profiles are a determinate of organizational success due to their

influence on other variables such as innovation, proactive behavior or risk taking. This is
clear from the specific organizational strategies for entrepreneurship and the individual
traits and characteristics of entrepreneurs. One research model was developed to illustrate
the critical interaction of several activities rather than events that occur in isolation.
Montagno believe the decision to act entrepreneuriallyoccur as a result of interactions
among organizational characteristics, individual characteristics, and some kind of
precipitating event. The precipitating event provides the impetus to behave
entrepreneurially when other conditions are conducive to such behavior.Stevenson and
Gumpert present an outline of the entrepreneurial organization–