ENTREPRENEUR

SHIP
& INNOVATION
BY – SANCHIT GUPTA
660
ENTREPRENEURSHIP
 Entrepreneurship is not a new phenomenon but in recent times , it has become more important
due to the recognition of the role it plays in economic development of the country. Kao and
Stevenson (1984) defined entrepreneurship as “attempt to create value through recognition of
business opportunity , the management of risk taking appropriate to the opportunity and
through the communicative and management skills to mobilize human , financial and material
resources necessary to bring a project to fruition.
FUNCTIONS OF
ENTREPRENEURSHIP
 Creation of value : Entrepreneurship creates value for business customers and society.
Entrepreneurship may be commercial entrepreneurship or social entrepreneurship . Example -
barefoot College in Rajasthan.
 Fosters innovation and creativity : Entrepreneurship not only involves taking advantages of
business opportunities but also fosters a culture of innovations .
 Undertakes risks : Entrepreneurship requires an attitude of risk taking . While any new venture
could be undertaken after planning and forecasting , even best of plans may fail due to unforeseen
circumstances .
 Economic development : Entrepreneurship helps in economic development through employment
generation , contributing to GDP , promoting domestic and foreign trade , wealth creation and
distribution .
 Improving standard of living : Through innovations in product , services end processes ;
entrepreneurship improves the standard of living of the people .