Introduction to Entrepreneurship development

An entrepreneur is a person who sets up his own business or enterprise with an objective of making profits. He is the owner of an enterprise who makes important economic decisions like what to produce, how much to produce and what method to use. He basically studies the market, anticipates demand and then decides whether to go ahead with the business propositions or not. He combines all the factors of production and bears all the risk.

The word entrepreneur is derived from the French word “entreprendre” which means to undertake.



Definition of an entrepreneur

1. Richard Cantillon

He defined entrepreneur as an agent who buys factor of production at a certain price and combines them into products and sells them at uncertain prices in the future.

2. Joseph Schumpeter

Entrepreneur is an individual who introduces something new in the economy-method of production not yet tested, products which consumers are not familiar with, new sources of raw material, new market and new changes in the organization and management.

Concept of Entrepreneur

Economists have different views about who an entrepreneur is Some say entrepreneurs are risk takers who bear uncertainty . Uncertainty is the risk which cannot be foreseen. An entrepreneur undertakes whole responsibility of the risk. He tolerates ambiguity and tries to accept and overcome the risk.

Entrepreneurs are also innovators who create something new. It may be a new idea, a new method of production or a new marketing process. He uses his creativity and knowledge in order to innovate which is more purposeful.

Entrepreneurs are ones who start new and small businesses with objective of profit and economic development of the country by creating employment opportunities. They not only try to achieve their goals but also contribute to the society.