Definition of Entrepreneurs
Entrepreneurs are action-oriented highly motivated
individuals who take risks to achieve goals. An entrepreneur is an innovator of
a new combination in the field of production.
The entrepreneur is the founder of the enterprise who
identifies opportunities, assembles skilled manpower and necessary resources
for the operation of the enterprise, attracts persons and financial
Institutions and takes psychological responsibility for managing the enterprise
successfully.
Examples of Entrepreneurs
·
Bill
Gates, founder of Microsoft. There are probably not many people that have not
been touched by one of his products, such as Microsoft Windows, Microsoft
Office and Internet Explorer.
·
Steve
Jobs, co-founder of Apple computers, which produces Macs, iPods and iPhones, as
well as Apple TV.
·
Mark
Zuckerberg, the founder of Facebook.
·
Pierre
Omidyar, founder of eBay.
·
Arianna
Huffington, founder of the Huffington Post, a well-known online news site.
·
Caterina
Fake, co-founder of Flikr, which hosts images and videos on the Internet.
List of top most
successful entrepreneurs of India who are as follows:
1.DHIRUBHAI AMBANI-RELIANCE.
2.RATAN TATA-TATA GROUPS.
3.NARAYANA MURTHY-INFOSYS.
4.AZIM H. PREMJI-WIPRO.
5.Lakshmi Mittal-ARCELOR.
6.DR. VERGHESE KURIEN-AMUL.
7.ANAND MAHINDRA-MAHINDRA GROUP.
8.SHIVA NADAR-HCL.
Concept of Entrepreneurship:
The word “entrepreneur” is derived
from the French verb enterprendre, which means ‘to undertake’. This refers to
those who “undertake” the risk of new enterprises. An enterprise is created by
an entrepreneur. The process of creation is called “entrepreneurship”.
Entrepreneurship is a process of
actions of an entrepreneur who is a person always in search of something new
and exploits such ideas into gainful opportunities by accepting the risk and
uncertainty with the enterprise.
Characteristics of Entrepreneurship:
1. Economic and dynamic activity:
Entrepreneurship is an economic
activity because it involves the creation and operation of an enterprise with a
view to creating value or wealth by ensuring optimum utilisation of scarce
resources. Since this value creation activity is performed continuously in the
midst of uncertain business environment, therefore, entrepreneurship is
regarded as a dynamic force.
2. Related to innovation:
Entrepreneurship involves a continuous
search for new ideas. Entrepreneurship compels an individual to continuously
evaluate the existing modes of business operations so that more efficient and
effective systems can be evolved and adopted. In other words, entrepreneurship
is a continuous effort for synergy (optimization of performance) in
organizations.
3. Profit potential:
“Profit potential is the likely level
of return or compensation to the entrepreneur for taking on the risk of
developing an idea into an actual business venture.” Without profit potential,
the efforts of entrepreneurs would remain only an abstract and a theoretical
leisure activity.
4. Risk bearing:
The essence of entrepreneurship is the
‘willingness to assume risk’ arising out of the creation and implementation of
new ideas. New ideas are always tentative and their results may not be
instantaneous and positive.
The characteristics of
the entrepreneur are discussed below:
1. Entrepreneur is an
agent
An entrepreneur is perceived as an economic agent who
assembles materials for producing goods at a cost that ensures profits and
re-accumulation of capital.
He is also understood as a change agent who brings about
changes in the structure and formation of the organization, market and the
arena of goods and services.
2. Entrepreneur is a
risk-taker
Many experts – old and new, have emphasized this
characteristic. Back I955, Redlich pointed out that an entrepreneur is a person
who identifies the nature of risk and takes a decision.
Later on, Burch, Meredith and other experts have agreed
that an entrepreneur is a risk-taker while undertaking a venture.
3. Entrepreneur is a
profit maker
An entrepreneur is an individual who establishes and
manages the business for the principal purpose of profit and growth.
4. Entrepreneur is an
achievement motivator
David C. McClelland has initiated this concept of the
entrepreneur by calling him “as per sun with a strong desire for achievement.”
Later on, Meredith and others have expressed the same
concept while they termed “entrepreneurs are action-oriented, highly’ motivated
individuals.”
Therefore, entrepreneurs have to have a deep-rooted need
for achieving their goals.
5. Entrepreneur is a
capital provider
Entrepreneur a person who operates a business by
investing his or her capital. Abbett first pointed out this characteristic in
1967.
It supported by Nadkami (l97S) and Sharma (1981). They
perceived entrepreneur as the founder of an enterprise who assembles necessary
resources for the operation of the enterprise.
6. Entrepreneur is the
determinant of the nature of the business
This characteristic /concept of the entrepreneur was
promoted by Evans in 1957 It says that an entrepreneur is the person or group
of persons who perform the task of determining the kind of business to the
operated.
Therefore, entrepreneurs promote diversified and distinct
types of business in society.
7. Entrepreneur is an
innovator
Joseph A. Schumpeter {1934) characterized entrepreneur as
an innovator of a new combination in the field of production Later on Robinson
(1962) and Hagen (1962) have described entrepreneurs as a person who lakes a
small venture to the edge of success by his efforts, innovation and motivation.
Innovation is perceived by Schumpeter as an action that
introduces a product, a new quality, a new method of production, a new market
and a new organization.
Therefore, an entrepreneur innovates something that
brings about disequilibria in the industry.
8. Entrepreneur is a reward receiver
An entrepreneur is a person who creates something new of
value by devoting time and efforts and in tum receives monetary and personal
rewards. Max Weber, Hartman, Hisrich and Peters have recognized this distinct
phenomenon of entrepreneurs.
9. Entrepreneur is a challenge
taker
It perceives an entrepreneur as a person who accepts
challenges for developing and exercising vigilance about success and failure to
take a risk and to generate products.
The above-mentioned characterizes an entrepreneur show’
that an entrepreneur is a dynamic person who promotes society and civilization
by taking ventures that give an enormous variety of goods and organizations to
bring about changes in the arena of industrial activity.
Entrepreneurs Classification
Nature Basis Entrepreneurs
Classification
Nature denotes here the human characteristics that act as
a prime motivator for taking entrepreneurial ventures. On this basis
entrepreneurs are classified into two groups;
i.
Individual entrepreneur: Person
is the pioneer of entrepreneurship in the history of human civilization. When a
single person undertakes an entrepreneurial venture then it is termed as an
individual entrepreneur.
ii.
Institutional entrepreneur: Institutions
are-groups of persons with a common goal. When an institution undertakes
entrepreneurial ventures then it is called an institutional entrepreneur.
Both of the above categories; individual and
institutional arc further classified into various types of their motivational
force.
1.
Technical Entrepreneur
The entrepreneur that utilities a modified form of
existing technology for producing a good or rendering service is known as a
technology entrepreneur.
The person familiar to a particular technology may see
some of the prospective changes, which will make cost-effective output. This
generates/ promotes technical entrepreneurs.
These entrepreneurs may enter the business to
commercially exploit their inventions and discoveries.
Their main asset is technical expertise.
They raise the necessary capital and employ experts in
financial, legal, marketing and other areas of business. Their success depends
upon how fast they start production and on the acceptance of their products in
the market.
2.
Innovative Entrepreneur
An innovative entrepreneur is a person who discovers new
use of the old product through adding new utilities; innovation denotes new
techniques of work, new market, a new source of materials, new management style
or system, a new strategy or a new opportunity in the present or future
environment.
Therefore, the person who takes the initiative to do
existing activities in a new way that has value to customers is called an
innovative entrepreneur.
3.
Drone Entrepreneur (Season /
Opportunity based business)
Drone entrepreneurs are those persons who can immediately
transfer an opportunity into a viable project. The environment is an
ever-changing phenomenon.
Any change in any variable of an environment may bring
about a profitable opportunity for initiating some activity of
entrepreneurship.
A wise and prudent entrepreneur may grasp the visible
change and its potentiality and initiates a venture of enormous prosperity.
Therefore, they are known as drones or opportunist entrepreneurs.
4.
Imitative Entrepreneurs
Imitation is the art of creating a product similar to
another product already in (he market. A person who adopts this technique is an
imitative or adoptive entrepreneur.
Franchising is a popular way to imitate a product.
Imitative entrepreneurs are most suitable for under-developed nations because
in these nations people prefer lo imitate the technology, knowledge, and skills
already available in more advanced countries.
5.
Fabian Entrepreneurs
Fabian entrepreneurs are very cautious and skeptical
while practicing any change. They are shy and lazy. Their dealing is determined
by custom, religion and past practices.
Fabian entrepreneurs do not have much interest in taking
a risk and try to follow the footsteps of the predecessors. When they are clear
that the chance of failure does not exist and there is no possibility of loss
in a particular- venture from the experience of others in the market, then they
take the venture initiatives.
6.
Forced Entrepreneurs
The entrepreneurs who are forced to be so by the
competing environment are known as forced entrepreneurs. The fall of a business
may force a person to initiate a new venture.
Sex Basis Entrepreneurs
Classification
Entrepreneurs are classified based on the natural
division of human and therefore, there are two sections of entrepreneurs on the
criteria of sex. They are male and female entrepreneurs.
Historically, male entrepreneurs are the dominant
entrepreneurial class in our civilization.
Place Basis Entrepreneurs
Classification
The place of entrepreneurial activity is the basis of
classifying entrepreneurs into two categories, such as rural and urban
entrepreneurs.
Urban entrepreneurs are the persons who initiate their
venture in the urban area of a country. They are large in number in all the
countries of the world.
The balanced growth of the economy requires rural
entrepreneurs too.
Rural entrepreneurs take their initiatives in rural areas
of the country. They use indigenous resources, which enhance the use of local
natural resources and enhance the local standard of living.
Size Basis Entrepreneurs
Classification
The size of an entrepreneurial project is taken as a
basis for categorizing entrepreneurs into two classes.
They are;
1.
Small scale entrepreneur: Small-scale
entrepreneurs are those who have small capital or investment, as well as small
production capacity, number of employment and a small area of the market, it
denotes the limited operation of a business.
2.
Large scale entrepreneurs: Large-scale
entrepreneurs are those persons or groups of persons who initiate a venture
with a large-scale production capacity. They address large aggregate demand and
involve with huge investment in production technology. They are small in number
in all the countries of the world.
Generation Basis
Entrepreneurs Classification
Entrepreneurs are classified in the context of generation
loo. The enormous types of new ventures initiate this classification.
1.
New generation
entrepreneurs: New generation entrepreneurs arc those
who utilize technology or idea in their new version. Cybercafe, fast-food shop,
virtual universities are a few of the examples of new generation
entrepreneurial projects.
2.
Old generation
entrepreneurs: Old generation entrepreneurs are those
who do not like change. They normally take the initiation of old styled
projects. They are hesitant to new technology but fond of familiar or traditional
and prevailing technology.
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