MEANING,NEED,FUNCTIONS AND QUALITY OF ENTREPRENEUR

v  MEANING,NEED,FUNCTIONS AND QUALITY OF ENTREPRENEUR
ENTREPRENEURSHIP DEVELOPMENT 1

ENTREPRENEURSHIP DEVELOPMENT 1

v  BUSINESS STUDY FOR PLUS TWO

·          CONTENTS OF THIS LECTURE

1.     NEW PLAYLIST ENTREPRENEURSHIP DEVELOPMENT IS ADDED ON MY CHANNEL SHASHI AGGARWALON YOU TUBE .IN A WEEK TWO LECTURES RELATED TO THIS SUBJECT WILL BE UPLOADED AND THIS TOPIC IS ALSO A PART OF THE BUSINESS STUDY PLUS TWO

2.     BRIEF INTRODUCTION AND MEANING

3.     FEATURES

4.     NEED

5.     ROLE/IMPORTANCE/FUNCTIONS OF THE ENTREPRENEUR

v      INTRODUCTION

·         THE WORD ENTREPRENEUR ORIGINATES FROM A THIRTEENTH CENTURY FRENCH VERB ENTREPRENDER MEANING TO DO SOMETHING OR TO DO SOMETHING

·         BY THE SIXTEENTH CENTURY,THE NOUN FORM ENTREPRENEUR WAS BEING USED TO REFER TO SOMEONE WHO UNDERTAKE A BUSINESS VENTURE

·         RICHARD CANTILLON MADE ACADEMIC USE OF THE WORD IN 1730 AND EXPLAINED THE WILLINGNESS TO BEAR THE PERSONAL FINANCIAL RISK OF A BUSINESS VENTURE AS THE DEFINING CHARACTERISTICS OF AN ENTREPRENEUR.

·         1N 1800S ECONOMISTS JEAN-BAPTISE SAY AND JOHN STUART MILL FURTHER POPULARIZED THE ACADEMIC USAGE OF THE WORD ENTREPRENEUR.

·         JOSEPH SCHUMPETER STRESSED HIM AS ENTREPRENEUR AS AN INNOVATOR

·         KIRZNER FOCUSED ON ENTREPRENEURSHIP AS A PROCESS OF DISCOVERY

v      CONCEPT OF ENTREPRENURSHIP

• ENTREPRENEURSHIP REFERS TO PROCESS OF ACTION AN ENTREPRENEUR UNDERTAKES TO ESTABLISH HIS ENTERPRISE. IT IS CONCERNED WITH THE DEVELOPMENT AND COORDINATION OF ENTREPRENEURIAL FUNCTIONS.
• ENTREPRENEURSHIP AND ENTREPRENEUR ARE USED SYNONYMOUS BUT CONCEPTUALLY THEY ARE DIFFERENT. ENTREPRENEUR MEANS THE PERSON WHO EXERCISES INITIATIVE BY ORGANIZING A VENTURE TO TAKE THE BENEFIT OF AN OPPORTUNITY AND AS THE DECISION MAKER,DECIDES WHAT,HOW AND HOW MUCH OF A GOOD OR SERVICES WILL BE PRODUCED.
• JOSEPH ALOIS SCHUMPETER” ENTREPRENEURS ARE NOT NECESSARILY MOTIVATED BY PROFITS BUT REGARD IT AS A STANDARD FOR MEASURING ACHIEVEMENT OR SUCCESS
• AND SCHUMPETER DISCOVERED THAT :

1. GREATLY VALUE SELF RELIANCE
2. STRIVE FOR DISTINCTION THROUGH EXCELLENCE
3. HIGHLY OPTIMISTIC
4. ALWAYS FAVOR CHALLENGES OF MEDIUM RISK

v      CONCEPT OF ENTREPRENURSHIP

·         ACCORDING TO SCHUMPETER IT IS A CREATIVE ACTIVITY OR IT IS INNOVATION FUNCTION

·         THE PROCESS OF INNOVATION MAY BE IN THE FORM OF :-

1.     INTRODUCTION OF A NEW PRODUCT

2.     USE OF NEW METHOD OF PRODUCTION

3.     OPENING OF NEW MARKET

4.     THE NEW SOURCE OF SUPPLYING RAW MATERIALS

5.     A NEW FORM OF ORGANIZATION

v      CONCEPT OF ENTREPRENURSHIP

◦     J. B SAY CALLED ENTREPRENEUR AS AN IMPORTANT AGENT OF PRODUCTION WHO GETS TOGETHER ALL THE FACTORS OF PRODUCTION

◦     THE ENTREPRENEUR IS ESSENTIALLY A BUSINESS LEADER AND THE FUNCTION BY HIM IS ENTREPRENEURSHIP. IT IS CONCERNED WITH THE DEVELOPMENT AND COORDINATION OF ENTREPRENEURIAL FUNCTION.

◦     NOBEL LAUREATE THEODORE W. SCHULTZ: ENTREPRENEURS AS ALL INDIVIDUALS WHO TOOK AN INITIATIVE,ASSUMING ALL THE RELATED RISKS AND PROFITS AND ESTABLISHED A PRODUCTIVE MACHINERY TO MEET CONSUMER DEMAND

v      FEATURES OF ENTREPRENEURSHIP

v  ECONOMIC ACTIVITY: SETTING AND RUNNING OF A ENTERPRISE AND CONCERNED WITH PRODUCTION AND DISTRIBUTION

v  INNOVATIVE ACTIVITY

v  MCCLELLAND STRESSED THAT ENTREPRENEURS ARE HIGHLY MOTIVATED BY CHALLENGES AND HIGHLY COMPETITIVE SITUATIONS

v  ORGANIZATION FUNCTION BY BRINGING TO GATHER VARIOUS FACTORS OF PRODUCTION

v  RISK BEARING FUNCTION

v  MUST HAVE MANAGERIAL AND LEADERSHIP SKILL

v  DECISION MAKING

v  NEED FOR ENTREPRENEURSHIP

1.     PROPER UTILIZATION OF RESOURCES

2.     GROWTH OF AN ENTERPRISE

3.     MINIMIZING RISK ELEMENT

4.     FOR IMPROVING PERFORMANCE

5.     MOBILIZATION OF TALENT

6.     IMPROVING QUALITY OF GOODS

7.     PROPER PLANNING

v      ROLE/SIGNIFICANCE/FUNCTIONS OF ENTREPRENEURSHIP

•    ENTRPRENURAIL FUNCTIONS:-

1.     INNOVATION

2.     RISK TAKING

3.     CHANGE AGENT

•    PROMOTIONAL FUNCTIONS:-

a)    DISCOVERY OF AN IDEA

b)    DETAILED INVESTIGATION

c)    ASSEMBLING THE FACTORS OF PRODUCTION

·         MANAGERIAL FUNCTIONS:-

1.     PLANNING

2.     ORGANIZING

3.     DECISION MAKING

4.     STAFFING

5.     DIRECTING

6.     LEADERSHIP

7.     COMMUNICATION

8.     MOTIVATION

9.     SUPERVISION

10.  COORDINATING

11.  CONTROLLING

◦     OPERATIVE FUNCTION:-

1.     PRODUCTION

2.     MARKETING

3.     PERSONNEL

4.     FINANCE

5.     ACCOUNTING

6.     OFFICE

v      QUALITY OF AN ENTREPRENEUR

1.     CLARITY OF OBJECTIVES

2.     INTELLIGENT,CREATIVE AND MGMT ABILITY

3.     CAPACITY TO BEAR RISK

4.     MOTIVATOR

5.     SECRECY

6.     CAPACITY TO TAKE THE DECISION

7.     TECHNICAL KNOWLEDGE

8.     COMMUNICATOR

9.     ABILITY TO MOBILIZE THE RESOURCES