ENTREPRENEURSHIP

By:Ankit Sindhi
0781663907

What is Entrepreneurship?

This term first started being used in the

18th century by Richard Cantillon.

Joseph Schumpeter describes an

entrepreneur as a person who is willing
and able to convert a new idea or
invention into a successful innovation.

Entrepreneur

As a Risk Taker

As an Organizer

As an Innovator

Entrepreneur- A Risk Taker

Richard CantillonEntrepreneur is an agent who buys factors
of production at certain prices in order to
combine them into a product with a view to
sell it at uncertain prices.
Because of this uncertainty, Entrepreneurs are
risk bearing agents of production.

For Frank Knight & Peter Drucker too,

Entrepreneurship is about taking risks.
Knight classified 3 types of uncertainty:
1.
Risk (measurable statistically)
2.
Ambiguity (hard to measure statistically)
3.
True Uncertainty (impossible to predict
statistically)
Acts of Entrepreneurship True Uncertainty

Entrepreneur- An Organizer

Jean Baptist associates an Entrepreneur

with the functions of co-ordination,
organization & supervision. An
Entrepreneur is endowed with good
judgment, perseverance & overall
knowledge of the business.

Francis A. Walker describes an

Entrepreneur as a person with more than
average capacities to risk in organizing &
coordinating various factors of production.

Noah Webster says an Entrepreneur

assumes the risk, manages the business, &
is involved in planning & coordination of
various activities to create economic
surplus.

Alfred Marshal suggests an Entrepreneur

has moral qualities of work judgment,
perseverance, knowledge, sufficient capital,
& capability to work under uncertainty of
profits.

Entrepreneur- An Innovator
Joseph Schumpeter was the first to assign
the crucial role of an Innovator to an
Entrepreneur.
A person who introduces innovation change is
an entrepreneur.

Frank Young describes an Entrepreneur as

a change agent who innovates, raises
money, assembles inputs, chooses
managers, sets up an organization &
manages it.

Peter Drucker describes an

Entrepreneur as a person who
searches for change, responds to it, &
exploits it as an opportunity.

References

Notes from Prof. Sanjay Mittal

The Internet

Questions?