Lesson Objective:

• Define entrepreneur and

entrepreneurship.
 Definition

Entrepreneur – originates from

the French word
“entreprendre” which means
to undertake. It connotes a
business paradigm which
signifies the start of a new
business undertaking.
Joseph Schumpeter (the Austrian
economist and political scientist) -
gave much emphasis on the
concept of product innovation,
marketing and production
methods.
- he described an
entrepreneur as an individual with
distinct social characteristics or
attributes.
 Entrepreneurship –
comes from the word
entrepreneur. It refers to a
particular field of practice or
process, as compared to an
entrepreneur which is a
person practicing
entrepreneurship.
According to American
Heritage Desk Dictionary,
entrepreneur as a person
who organizes, operates,
and assumes the risk of
business ventures. This
venture is called enterprise.
Entrepreneur is defined as a
person who strongly
advocates and correctly
practices the concepts and
principles of entrepreneurship
in operating and managing the
self-owned business venture.
Entrepreneurship is the art of
observing correct practices in
managing and operating a
self-owned wealth-creating
business enterprise by
providing goods and services
that are valuable to the
customers.
 Small Business and
Ordinary Small Business

Small Business – refers to a

business or enterprise that
correctly adopts and practices the
principles of entrepreneurship. It
is owned by one person with a
limited workforce of not more than
20 persons. It includes small and
medium enterprise (SME).
 Ordinary Small Business
– pertains to a business
enterprise managed and
operated by an owner who is
not an advocate of and does
not practice the concepts and
principles of
entrepreneurship.
 However, the mere
opening of a business
enterprise is not
entrepreneurship and the
person owning and running
its day-to-day operations is
not an entrepreneur but
rather a businessperson.