• Entrepreneurship is derived from the

French word ‘Entreprendre,’ which means

‘to undertake,’ ‘to pursue opportunities’, or
‘to fulfill needs and wants through
innovation and starring businesses.’ The
word first appeared in the French dictionary
in 1723.
• Entrepreneurship is the ability and willingness to create,
organise, and manage a business enterprise, including all
of its uncertainties, in order to earn profit. The most
visible example of entrepreneurship is the establishment
of new businesses. Entrepreneurship involving land,
labour, natural resources, and capital can yield a profit.
The entrepreneurial vision is defined by exploration and
risk-taking, and it is an essential component of a nation’s
ability to succeed in an ever-changing and more
competitive global marketplace.
• Entrepreneurship is also responsible for the creation and
expansion of opportunities for the other two economic
activities, that is, Employment and Profession. Every
country, whether it’s developed or developing, requires
entrepreneurs, whereas a developing country requires
entrepreneurs to kickstart the development process, and
a developed country requires entrepreneurship to sustain
it.

• Entrepreneurship is the process of establishing one’s

own business as opposed to engaging in any other
economic activity, such as employment or practicing a
profession. An entrepreneur is someone who establishes
his own business. The process’s output is the business
unit which is referred to as an Enterprise.
WHO IS ENTREPRENEUR?
• The entrepreneur is defined as someone who has
the ability and desire to establish, administer and
succeed in a startup venture along with risk
entitled to it, to make profits. The best example of
entrepreneurship is the starting of a new business
venture. The entrepreneurs are often known as a
source of new ideas or innovators and bring new
ideas in the market by replacing old with an
invention. It can be classified into small or home
business to multinational companies.

• In a nutshell, anyone who has the will and

determination to start a new company and deals
with all the risks that go with it can become an
Entrepreneur.
 Basis of Economic Development of the Country-
Development of any country depends on entrepreneurship,
it depends on the businessmen of a country, how
successful or not the country is. The more the businessmen
in a country understand these simple words, the more
successful the business will be, the more the country will
develop. That's why a successful business shows how
developed the country is.
 It Helps in Establishing New Enterprises- Entrepreneurship
also motivates others, so that others can start their own
business or their new enterprises. For example, if you are a
successful businessman, then you can also help others to
become successful through your experience and they are
motivated to start a business.
 Contribution in Development and Expansion of Existing
Enterprises- Today's entrepreneurs help old businessmen
to expand their business. The old businessmen who do not
know about today's system, tell them to expand their
business, because of which the country's economic system
is good.
Helps in Developing New Products and Techniques- With the help of
businessmen, new products come in the market, new technology will not come in
the market until they invent by their production, and the consumer will not get to
use anything new. So it is only because of the businessmen that we are able to
use new products today.

Opportunity to Get Full Human Potential- Whenever a business starts, whatever

people work there, this businessman ensures that the people who are working in
his company give their hundred percent. He wants his workers to give their
hundred percent and they also have the skills to get their work done completely
by the workers as they also motivate them.

Balances Economic Development- Both the urban sector and the rural sector will
be balanced economically due to entrepreneurship. It means that enterprises
help in reducing the gap between the rich and the poor. Entrepreneurs start the
business by going to the rural sectors, they provide jobs to the people of the rural
areas and help in the development of that area.
 Elements of an Entrepreneurship
 Innovation
• Innovation is considered as the key factor in the concept of
entrepreneurship. An entrepreneur adds to the economy in
terms of innovation and discrepancy and the degree of these
assures a positive outcome. The entrepreneurs carry out
imaginative and unique thoughts on the available situations
and strive to foster something new. It can be in terms of a
new product, production technique, technology, marketing
strategy, and so on.
 Organization
• The organization is another key element of successful
entrepreneurship. Without organization, everything will
become disorganized and unmanageable which further will
cause losses, decreasing business goodwill, unsatisfied
customers, and mental stress to the staff due to which the
workers may leave the organization Hence it is insignificant
to maintain a decent organizational structure within the
company, which defines who will perform a specific task and
the way that task would be performed.
 Risk
• All businesses involve risks and in entrepreneurship, it
is the sole responsibility of the entrepreneur only as it
is a “one-man-show”. Without taking risks, a business
cannot flourish but on the other hand, indulgence in
excessive risk-taking may lead to severe losses. Risk-
taking is another word for exploiting opportunities and
gaining a competitive edge over others performing in
the same market. This way, the business and the
economy both are facilitated.
 Vision
• An entrepreneur must have a strong vision if he wants
to succeed in the business. The foresight of the
entrepreneur determines how the business and other
business policies will run. The way the entrepreneur
visualizes his business in the coming years is how the
business moves forward and the profitability is earned.
Keeping the vision in the head, the tasks are identified,
performed, risks are taken and organizational culture is
brought forth. It is important to set long-term and
short-term goals for a business so that the
organizational objectives are learned.
 DETERMINANTS OF
ENTREPRENUERSHIP

The important determinants of entrepreneurship

classified under the three broad categories:

• Personal level factors

• Social level factors

• Economy level factors

PERSONAL LEVEL FACTORS
• These are the personal and physiological
characteristics of the individual that have an effect
in the entrepreneurship environment of an
economy.
Willingness to take risk:
• Entrepreneurs who take moderate risk seem to earn
higher returns on their assets as opposed to those
who take no risk at all or take extravagant risks
Motives/Goals
• Besides wealth, entrepreneurs also seek power,
prestige, security and service to society. Non-
monetary aspect such as independence, persons
self-esteem, power and regard of the society also
serves as motives which determines the success of
an entrepreneur.
 Achievement needs
• Entrepreneurs are known to pursue activities in a
new and innovative manner and make decisions
under uncertainty. They are characterized by a
high achievement orientation, which drives them
to excel and grow.
 Locus of control
• Locus of control implies that entrepreneurs tend
to subscribe to the idea that they can control
their own lives and are not influenced by factors
such as luck and fate.
 Withdrawal of status respect
• It implies that when members of a certain social
group perceive that they are not respected by the
dominant groups, there arises a personality
change for example creativity, which stimulates
entrepreneurial behaviour.
SOCIAL LEVEL FACTORS
• These are the various aspects and perspectives of
the society that influence entrepreneurial culture.
Family background
• This factor includes family size, types of family
and economic status of family. For instance, the
background of a family in manufacturing provided
a source of industrial entrepreneurship.
Occupational and social status of the family
influenced mobility.
Educational system
• Education enables as an individual to comprehend
the outside world and equip him or her with the
fundamental knowledge and skills to deal with
everyday problems. In any society, the system of
education has a significant role to play incubating
entrepreneurial values.
Societal attitudes
• Certain societies are known to encourage
innovations and thus approve entrepreneurs’ action
and awards such as profits. Certain do not tolerate
changes and in such circumstances,
entrepreneurship finds it difficult to shape and
develop.
ECONOMY LEVEL FACTORS
Availability of raw materials
• This is one of the basic ingredients required for
production. Shortage of Raw material can adversely
affect the entrepreneurial environment.
Availability of labour
• Easy availability of right type of labour is a strong
determinant of entrepreneurship. The quality rather
than quantity of labour influence the emergence and
growth of entrepreneurship
 Capital investment
• Increase in capital investment in viable projects result
in an increase in profits. Capital is regarded as a
catalyst to the process of production.
 Financial market
• Existence of well-regulated financial markets with
specific financial institutions, instruments and
participants goes a long way in supporting
entrepreneurship in an economy.
 Market conditions
• The role importance of market and marketing is
critical for the growth of entrepreneurship. In fact,
the proof of all production lies in the strength of its
marketing activities. If the market conditions are not
good, the business will not be able to survive, on the
other hand if the market conditions are extremely
well or stable in that case the entrepreneur will get
various opportunities and will be able to survive in
the market