Unit 1: Introduction

Concept of Entrepreneurship
“Entrepreneurship is the process whereby an individual or group of individuals use organized efforts to
pursue opportunities to create value and grow by fulfilling wants and needs through innovations and
uniqueness, no matter what resource the entrepreneur currently has”.
Entrepreneurship has long been described by researchers and writers with terms such as new, innovative,
flexible, dynamic, creative, and risk-taking.
Common Theme of Entrepreneurship
 Process
 The Entrepreneur
 Innovation
 Organization Creation
 Creating Value
 Profit or non-profit
 Growth
 Uniqueness
Nature and Development of Entrepreneurship
 Historical Evolution Of Entrepreneurship
 Earliest Period
 Middle Ages
 17th Century
 18th Century
 19th & 20th Century
Earliest Period
 Go-Between is Marco Polo
 Sign contract with a money person(Venture capitalist) to sell his goods
 VC passive risk bearer
 Merchant Adventurer took active role in trading- active risk bearer (Physical, emotional)
 Merchant Adventurer completes trip successfully profits were divided- VC taking 75% & MA
25%
Middle Age
 Actor & person who managed large production projects
 Individual didn’t take risks but only managed the project using the resources provided
 Usually by the Government of the Country
17th Century
 Emergent connection of risk with entrepreneurship developed
 Entrepreneur entered into contractual agreement with the government to perform a service or to
supply products
 The contract price was fixed any profits or losses were of entrepreneur’s.

18th Century
 Person with capital was differentiated from the one who needed capital
 Entrepreneur was distinguished from the capital provided(Venture capitalist)
 One reason for differentiation was the industrialization occurring throughout the world
 Invention developed during this time were reaction to the changing world
19th and 20th Century
 E were viewed from Economic Perspective
 ‘E’ organizes & operates an enterprise for personal gain
 Pays prices for material consumed in the business, for land, personal services he employs, capital
he requires
 Assumes the chance of loss and gain
 Residue of the annual receipts is retained for himself.
 20th Century- Notion of an E as an innovator was established
21st Century
 The development of information communication technology, vast stretches of opportunities are
created.
 Even in the developing countries, the privatization of public enterprises is also creating a new
breed of entrepreneurs.
 Small Business is really growing and booming in the 21st Century because many people are
opting for small business opportunities over working for large companies.
Entrepreneural Process
Ethics and Responsibilities of Entrepreneurs
Employees
Government
Suppliers
Stockholders
Trade associations
Social Action Group
Communities
Customers
Role of entrepreneurship in economic development
 Promotes Capital formation
 Optimum utilization of resources
 Promotion of employment opportunities
 Balances regional development
 Reduced concentration of economic power
 Backward and forward Linkage
 Promote foreign trade
 Industrialization
Promoting entrepreneurship in Nepal
 Promoting entrepreneurship by motivating young generation to commercial farming.
 Celebrate and recognize successful local entrepreneurs.
 Investing in education and vocational education and training as means to strengthen the skills
base of the Nepalese labour force. This should be coupled with more flexible labour market
policies that encourage skills combination and labor mobility.
 Governments should enact agreements and strategies aimed at improving the regulatory
environment for business and promotion competition.
 Attract investments in the most dynamic sectors.
 Make more efficient use of the business incubator model to facilitate the establishment and
growth of small and medium enterprises (SMEs).