Concept of Entrepreneurship-BBA-MBS TU notes-Bikram - Learn Something New With BIKRAM ADHIKARI

The word entrepreneur is derived from the French word entreprendre, which means to  do  something  or  to  undertake.  The  first  academic  usage  of  the  term  was  by  economist  Richard  Cantillon  in  1730.i  According  to  him/her,  the  bearing  of  risk  engaging  in  business  without  an  assurance  of  the  profits  that will be derived is the distinguishing feature of an entrepreneur. 

Entrepreneurship  is  the  process  of  creating  new  enterprise.  It  involves  purposeful  and  systematic  innovation.  Innovation  is  doing  something  new  or different. Innovation is essential to address the changing demands of the customers  and  grab  opportunities.  Risk  bearing  is  another  basic  element  of  entrepreneurship.  Risk  is  the  degree  of  uncertainty  involved  in  a  particular  work or activity. The risk arises due to changes in organizational and market conditions.  Innovation  is  always  risky.  It  also  involves  the  exploration  of  opportunity.  For  this,  resources  are  acquired  and  managed.  They  may  be  capital, men, material, technology, equipment, and intellectual properties. 

Entrepreneurship  is  important  for  economic  and  social  development.  The  entrepreneurs  develop  new  products  and  technology  which  increase  the  productivity of all sectors of the nation.

The following are some of the notable definitions of entrepreneurship.

Hisrich et.alii

 Entrepreneurship  is  the  process  of  creating  something  new  with  value  by  devoting  the  necessary  time  and  effort;  assuming  the  accompanying  financial,  psychic,  and  social  risks  and  uncertainties;  and  receiving the resulting rewards of monetary and personal satisfaction. 

Schumpeteriii

Entrepreneurship  is  based  on  purposeful  and  systematic  innovation.  It  essentially  consists  in  doing  things that are not generally done in the ordinary course of business routine. 

Druckeriv

Entrepreneurship  is  gathering  and  using  resources  to  produce  results.  It  is  allocating  resources  to  opportunities rather than problems. 

Lambv

Entrepreneurship is that form of social decision making performed by economic innovators. 

 Colevi

Entrepreneurship  is  the  purposeful  activity  of  an  individual  or  a  group  of  associated  individuals,  undertaken to initiate, maintain or aggrandize profit by production or distribution of economic goods and services.

From   the   above   discussion   and   definitions,   it   may   be   concluded   that   entrepreneurship  is  a  creative  process  of  starting  and  managing  a  venture  for seeking opportunities. 

Features of Entrepreneurship

Entrepreneurship involves creation of new ventures with a certain vision. It is  a  creative  process  involving  exploitation  of  market  opportunities.  It  has  certain features. The important ones are discussed below.

1.     Risk: 

Risk is the probability of loss or damage that mainly occurs due to external vulnerabilities. Entrepreneurship involves assumption of risks. Entrepreneurial   risks   may   be   financial,   career,   social,   health   and   employee trusting risk. 

2.     Vision:  

Vision  is  the  desired  future  state  of  an  organization.  It  is  an  imaginary    ideal    situation    of    the    organization.    Entrepreneurship    involves   creation   of   a   venture   with   a   certain   vision.   All   the   entrepreneurial activities are directed towards achieving the vision. 

3.     Leadership:  

Leadership  is  the  ability  to  anticipate,  envision,  maintain  flexibility,  and  empower  others  to  create  change  as  necessary.  It  is  multifunctional   in   nature   and   involves   managing   through   others.   Leadership is always at the heart of entrepreneurial success. Hence, an entrepreneur must have necessary leadership qualities and skills. 

4.      Innovation:  

Innovation  is  always  at  the  center  of  entrepreneurship.  Business  ventures  must  bring  ideas,  improved  and  unique  products  and  innovative  solutions  to  the  business  problems.  Innovations  is  all  about turning the idea into reality and keeping the business apart from the    competitors.    Innovation    is    essential    for    grabbing    market    opportunities. 

5.     The     value:   

Businesses   must   create   customer   values   through   their   products  and  services  to  succeed.  By  bringing  value  to  the  customers,  entrepreneurs  create  a  network  of  loyal  customers.  Entrepreneurial  success is largely dependent on the creation of customer value. 

6.Opportunity:    

Opportunity    is    the    favorable    conditions    in    the    environment.   The   entreprenuerial   activities   are   directed   toward   grabbing  opportunities.  For  this,  customers’  needs  and  expectations  as  well  as  the  market  conditions  are  analyzed  and  the  organization  is  prepared accordingly.