B.

Com (Computer Application)- Semester VI

Course Name- Entrepreneurship Development
Topic- Entrepreneur: Introduction, Evolution and Characteristics
Reference Video Link

https://www.youtube.com/watch?v=aozlwC3XwfY
https://www.youtube.com/watch?v=oEXIIkSZ0kM
https://www.youtube.com/watch?v=YEhhqqCFxog

Study Material
An entrepreneur can be described as “one who creates a new business in the face of risk
and uncertainty for the purpose of achieving profit and growth by identifying significant
opportunities and assembling the necessary resources to capitalize on them” (Zimmerer
& Scarborough, 2008, p. 5).

Entrepreneurship can be defined as a field of business that seeks to understand how

opportunities to create something new (e.g., new products or services, new markets,
new production processes or raw materials, new ways of organizing existing
technologies) arise and are discovered or created by specific persons, who then use
various means to exploit or develop them, thus producing a wide range of effects
(Baron, Shane, & Reuber, 2008, p. 4)

The word 'entrepreneur' comes from the French word "entrepredre" which means "to
undertake". In the Malay language it can be defined as "to take over". According Histrich and
Peter (1988), entrepreneurship is a dynamic process of wealth creation. Wealth is created by
the individual who bears the risk of the 'equity', time and career commitment or provide value
to a product or service. It is the process of creating something new by taking into account the
time and effort to take into account the risk of financial, psychological and social. And
receive the benefits in terms of financial, personal satisfaction and freedom. Besides, Kuratko
and Hodgetts (2004) define entrepreneurship as a process of innovation and creation through
the four dimensions of the individual, organization, environment and the process of
collaboration with networks in government, education and institutional.

EVOLUTION OF ENTREPRENEURSHIP

In the Earliest period, definition of entrepreneurship began as early as the Marco

Polo who comes to the Middle East for trade. Marco Polo has signed an agreement with
the capitalists to sell their products. In the contract merchant adventurer took a loan at
22.5% rate including insurance. Capitalist was the passive risk bearer and merchant
adventurer took the active role in trading, bearing all physical and emotional risks.
When the merchant adventurer successfully sold the goods and completed the trip, the
profits were divided with the capitalist taking most of them up to 75%, while the
merchant adventurer settled for the remaining 25%.
In middle ages, Entrepreneur is described as someone who is involved in the care
and control of a large production projects. It is possible to control the project using the
resources provided by the government. In this case, the entrepreneur does not bear any
risk. Entrepreneurs in this age, is a have control and authority of construction works
such as public buildings and churches. A typical entrepreneur in the middle age was the
priest.
In 17th century, the evolution of entrepreneurship can be related with the
relationship between risk and entrepreneurs. Entrepreneurship is the person who
signed the contract agreement with the government to provide a service or supply
products that have been determined. The contract price is fixed. Then, the
entrepreneurs are fully responsible for the gains and losses of the business. John law, a
Frenchman was one of the entrepreneurs in that period. The founder of the royal bank
of France and the Mississippi Company, which had an exclusive franchise to trade
between France and the new world. Monopoly on French trade eventually led to
collapse of the company. Richard Cantillion, an economist defines entrepreneurs
earlier. In his view, the entrepreneur is risk insurers. Merchants, farmers, craftsmen,
and so is an entrepreneurs. They buy things at a certain price and sell it at a price that is
uncertain, with the risks
 . In the 18th century, the person with capital was differentiated from the one who
needed capital. The entrepreneur was distinguished from the capital provider. One
reason for this differentiation was the industrialization occurring throughout the world.
Eli Whitney was an American inventor best known for inventing the cotton gin. This
was one of the key inventions of the industrial Revolution. Thomas Edison, the inventor
of many inventions. He was developing new technologies and was unable to finance his
inventions himself. Edison was a capital user or an entrepreneur, not a provider or a
venture capitalist.
In 19th and 20th century, Entrepreneurs are not always associated with the
management. According to Merriam-Webster's online dictionary, an entrepreneur is
one who organizes, manages, and assumes the risk of a business or an enterprise. The
entrepreneur organizes and manages an enterprise for personal gain. The materials
consumed in the business, for the use of the land, for the services he employs, and for
the capital he requires. Andrew Carnegie is one of the best examples of this
definition. Carnegie, who descended from a poor Scottish family, made the American
Steel Industry one of the wonders of the industrial world.
In the middle of the 20th Century, the function of the entrepreneurs is to recreate
or revolutionize the pattern of production by introducing an invention. Innovation, the
act of introducing some new ideas, is one of the most difficult tasks for the
entrepreneur. For example, Edward Harriman, who reorganized the railroad in the
United States and John Morgan, who developed his large banking house by reorganizing
and financing the nation’s industries. Besides, the Egyptian who designed and built
great pyramids out of stone blocks weighing many tons each, to laser beams, supersonic
planes and space stations.

In 21st century, Entrepreneurs are known as a hero for Free Enterprise market.
Entrepreneur of the century created many products and services and is willing to face a
lot of risks in the business. According to Kuratko & Hodgetts, most people say
entrepreneurs are pioneers in creating new businesses. In the year 2005 Hisrich, Peter
and Shepherd regarded entrepreneur as an organizer who controls, systematize,
purchases raw materials, arranges infrastructure, throw in his own inventiveness,
expertise, plans and administers the venture.
The Future of entrepreneurship will be growth with development of technologies.
The modern technologies and internet have improved the ways of conduct business.
Entrepreneurs now have the luxury of putting their business idea into action through
the click of button.

Characteristics of a successful entrepreneur

1. They take what they do seriously.
Entrepreneurs understand that the success of the business ultimately rests upon their
shoulders. When you run a startup, whether or not rent is paid depends on how you run
the business. Because of this, all successful entrepreneurs take their work very
seriously.

2. They make it all about the customer

Customers are why a business exists. Their sales dollars determine the success of any
business. Successful entrepreneurs realize this early on and make their business about
the customers. Studies show that customers are four times more likely to switch to a
competitor if they have a customer service concern versus a price or product issue.

3. They make the big decisions carefully.

Every decision has consequences, whether good or bad. Over time, those consequences
shape our reality and tell the story of our lives. Entrepreneurs who are doing well take
note and carefully identify the potential long-term effects of each decision, while
seeking counsel before making major decision.

4. They aren’t scared of the road less traveled.

Following the crowd only leads to where others have been before. Successful
entrepreneurs aren’t afraid to venture out on their own with a company and blaze a
new trial. That’s their defining characteristic. Some of the best inventions and designs
have come from the minds of those who weren’t afraid to be different.
5. They harness technology.

Things change constantly, and they change especially quickly in business. To best serve
their customers, successful entrepreneurs keep up to date with the best technology can
offer to them. Take, for example, live chat. It can make a huge difference in your
company’s customer service results and overall growth.

6. They invest in themselves.

You can’t make other people better unless you make yourself better first. Entrepreneurs
who are successful make a point to carve out time from their calendar and money from
their budget to invest in themselves. This investment may be further education or a
well-earned vacation. Either way, successful entrepreneurs find ways to recharge and
propel themselves further.

7. They are constantly learning.

There’s always something you don’t know and something else that has just been
discovered. Both are essential for entrepreneurs. You can’t build a business around
something you don’t know about, and you can’t improve products and services using
outdated methods. Entrepreneurs are always on the prowl to learn more about what
they do and what the competition is working on.

8. They’re not afraid of risks

The best things in life are often found on the other side of a worthwhile risk; in that way,
the best business you can build may be on the other side of possible failure.
Entrepreneurs don’t shy away from the unknown or the uncharted. They know that’s
where the future sales dollars and profits are. While uncalculated risks can cause
terrible consequences, calculated risks are the sweet spot of a new business venture.

9. They’re willing to experience failure

Very few successful entrepreneurs have made it without living through some failure,
large or small. They realize failure is just information about what doesn’t work, not the
end of the journey. They continue trying long after most would have given up.

10. They adapt to the current needs of the customer and market
As conditions and society go through changes, so do the needs of customers. The
successful businesses of tomorrow will be those that learn how to meet those needs
quickly and don't get left behind in the heap of non-adapters.

11. They know how to sell themselves

Successful entrepreneurs know when something is valuable, even if no one else does
yet. They can explain and prove why their product or service is worth the price or
investment. Finding a way to sell yourself before anyone believes in you or your
business is the key to successful entrepreneurship.

12. They network, network, network

Not everyone is going to be jumping at the chance to use a new product and service, and
some still won’t adopt even after a lot of compelling information. So entrepreneurs
network; not only to find clients, but also to meet others who share their passion and
desire and who can help them go even further.