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1. Introduction………………………………………………………....…...2
2. “Who is an Entrepreneur?”…………………………………..
………….3
a. Economists’ view………………………………………………...8
b. Sociologists’ view………………………………………………..9
c. Psychologists’ view………………………………………….
….10
d. Managers’ view………………………………………………....11
5. Conclusion……………………………………………………………..12
6. References…………………………………………….……………….13
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Introduction:
Do you know that there are millions of unemployed youth in the country and by the time we
graduate, this number would have increased substantially? Do you want to be a part of that
group which keeps knocking from pillar to post, checking with employment exchanges,
relatives, friends, and neighbors and still not able to get a job to their liking and then settle for a
second or third rate job?
You can also choose to be like Mr. Patel of Nirma who was a chemist’s assistance and has a Rs.
2500 crore company today. Did you know that the original Mr. Bata was a cobbler? And now
has stores in more than 30 countries all over the world. Or you could be like Dhiru Bhai Ambani
who started life as a clerk in a French company in Aden. He was not born into a business family
nor did he possess an MBA degree and yet, he is a household name in India and figures in the
Forbes list of the richest Asians. Lakshmi Mittal, the steel giant, Satbir Bhatia of Hotmail fame
and Narayan Murthy of Infosys are some other names in the endless list you could choose from.
If your answer is yes then you can definitely opt for a career in entrepreneurship, and let me
remind you that this career opportunity is not only for boys but also for girls - all those girls who
think smart, are ready to act and script the story of their own life - like Shehnaz Hussain or Ritu
Kumar or Kiran Majumdar Shaw.
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“Who is an Entrepreneur?”
An entrepreneur is a person who starts an enterprise. He searches for change and responds to it.
The word entrepreneur has been derived from 17th French entrepreneur, refers to individuals
who were “undertakers” particularly the leader of military operations. Later it was used to refer
other types of adventures in civil engineering like construction of roads, bridges, harbors’, etc. It
was since the 18th century that the term entrepreneur came to be used, specifically after the
industrial revolution.
Peter Drucker defines an entrepreneur as one who always searches for a change responds to it
and exploits it as an opportunity. An entrepreneur innovates. Innovation is a specific instrument
of success available to entrepreneur.
J.B.Says: “Entrepreneur is influenced by the society [he recognizes needs and fulfils them
through organizing and managing resources] and he also influences society by creating new
enterprises.”
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Richard Cantillion: “Entrepreneur is the agent who buys means of production at a certain price
in order to combine them into a product that is going to sell at prices that are uncertain at the
moment at which he commits himself to the costs”
Hence an entrepreneur can be defined as a person who identifies the opportunities in his
environment and responds to opportunities in an innovative way so as to make economic surplus
by engaging himself efficiently, exploiting the environment and the opportunities it offers.
• Is a moderate risk taker and works under uncertainty for achieving the goal.
• Is innovative
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“What Makes Someone an Entrepreneur?”
Who can become an entrepreneur? There is no one definitive profile. Successful entrepreneurs
come in various ages, income levels, gender, and race. They differ in education and experience.
But research indicates that most successful entrepreneurs share certain personal attributes,
including: creativity, dedication, determination, flexibility, leadership, passion, self-confidence,
and “smarts.”
• Creativity is the spark that drives the development of new products or services or
ways to do business. It is the push for innovation and improvement. It is continuous
learning, questioning, and thinking outside of prescribed formulas.
• Dedication is what motivates the entrepreneur to work hard, 12 hours a day or more,
even seven days a week, especially in the beginning, to get the endeavor off the ground.
Planning and ideas must be joined by hard work to succeed. Dedication makes it happen.
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wanted to buy muffins as well. Rather than risking the loss of these customers, the
entrepreneur modified her vision to accommodate these needs.
• Leadership is the ability to create rules and to set goals. It is the capacity to follow
through to see that rules are followed and goals are accomplished.
• Passion is what gets entrepreneurs started and keeps them there. It gives entrepreneurs
the ability to convince others to believe in their vision. It can’t substitute for planning,
but it will help them to stay focused and to get others to look at their plans.
• Self-confidence comes from thorough planning, which reduces uncertainty and the
level of risk. It also comes from expertise. Self-confidence gives the entrepreneur the
ability to listen without being easily swayed or intimidated.
Every entrepreneur has these qualities in different degrees. But what if a person lacks one or
more? Many skills can be learned. Or, someone can be hired who has strengths that the
entrepreneur lacks. The most important strategy is to be aware of strengths and to build on them.
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Views on making of an Entrepreneur
Many scholars of different fields have expressed their views on the factors which make a person
an entrepreneur. Economists, sociologists, Psychologists and managers have all attempted to
give a clear picture of the entrepreneur.
Sociologists analyze the characteristic of entrepreneurs in terms of caste, family, social value
and migration.
Psychologists on the other hand attempt to isolate entrepreneurs from general population on
various personality trials such as need for achievement, creativity, propensity to take risk,
independence leadership etc.
Thus all the views can be explained under the following heads:
a. Economists’ view
b. Sociologists’ view
c. Psychologists’ view
d. Managers’ view
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Economists’ view
• The economists view him as a fourth factor of production along with land labor and
capital.
1. Land.
2. Labor.
3. Capital.
4. Entrepreneurship.
8
Sociologists’ view
• The sociologists feel that certain communities and cultures promote entrepreneurship
like for example in India we say that Gujaratis and Sindhis are very enterprising.
• Sociologists focused on theories that considered the role of social norms and legitimacy
as well as social mobility in understanding the supply of entrepreneurship in a society.
• According to Peter Marris, to assemble or reassemble from what is available, very
concrete kind of imagination, to see what others have missed , sensitivity to business and
social environment, zest in industrial development and entrepreneurial courage are the
factors that make an entrepreneur.
• According to the sociologists the presence or absence of certain social baits motivate or
de-motivate individuals from taking up entrepreneurial ventures. some of the important
ones are:
a. Family background: This factor means the size of the family, type of the family
along with economic situation. To some extent joint family provides better financial
security in the form of joint property holdings, which allows an individual to
undertake risks of business. Joint family system also helps in expansion of business,
at the same time; major drawback of joint family business is lack of independence
with regard to decision-making.
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d. Occupational background: It has been significantly found that, people coming
from a business background in the family have a better aptitude towards
entrepreneurship.
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•
Psychologists’ view
The entrepreneur…
11
• K. L. Sharma maintains that entrepreneurs are men with qualities of leadership in solving
persistent professional problems; but those persons likewise demonstrate eagerness to
seize unusual opportunities.
Managers’ view
• Managers feel entrepreneurs are innovators who come up with new ideas for products,
markets or techniques.
• According to Peter Kilby
An Entrepreneur is one who performs the following functions:
1. Perception of market opportunities
2. Gaining command over scarce resources
3. Purchasing inputs
4. Marketing of product & responding to competition
5. Dealing with public bureaucracy (concessions, licenses, taxes)
6. Management of human relations within the firm
7. Management of customer & supplier relations
8. Financial management
9. Production management
10. Upgrading processes and product quality
11. Introduction of new products
12
Conclusion
After studying the views of the experts of different fields we can conclude as:
Managers present him as an innovator who comes up with new ideas for products, markets
or techniques.
13
References
• Dynamics of Entrepreneurial development and Management Millennium ed.
By Vasant Desai
• Entrepreneurial Development By S.S. Khanka
• http://www.emeraldinsight.com/Insightview/ContentItem.do;jsessionid=775
F860CD1D99B928129B43356108E5/AcontentType=Article&contentId=84
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• http://www.emeraldinsight.com/Insightview/ContentItem.do;jsessionid=775
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• http://www.emeraldinsight.com/Insightview/ContentItem.do;jsessionid=775
F860CD1D99B928129B43356108E5/AcontentType=Article&contentId=14
64956
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