Employability Skills - Entrepreneurship Skills
27 E
Entrepreneur and Entrepreneurship, role and functions of Entrepreneur
Objectives: At the end of this lesson you shall be able to
• define entrepreneur, entrepreneurship and enterprise
• state the advantages of entrepreneurship
• state the role and function of entrepreneur
• list out the qualities of good entrepreneur
• state entrepreneur vs Management (or) Manager.
The word 'entrepreneur' brings to our mind the images
of very famous business tycoons like Tata, Birla and
Ambani. How they are different from others? The only
answer is their entrepreneurship skills.
It is not that only big business person requires
entrepreneurship skill. Even to start our own small
business, we do require entrepreneurship skill to make
the business successful and achieve financial gain.
The Concept of Entrepreneurship
Entrepreneur Entrepreneurship Enterprise
Person Process or action Outcome
(Subject) (Verb) (Object)
Entrepreneur
"An entrepreneur is a person who takes risk of setting up
his own business venture for perceived rewards. He is a
person who initiates the idea, formulates a plan, organise
resources and puts the plan into action to achieve his/
her goal".
Entrepreneurship
Entrepreneurship is the process of planning, organizing,
operating, and assuming the risk of a business venture.
Entrepreneurship is a process involving various actions
to be undertaken to establish an enterprise. Innovation
and risk bearing is regarded as the two basic elements
involved in entrepreneurship. Individuals performing these
functions are the entrepreneurs and their enterprising
ability and skill is known as ‘entrepreneurship’.
Enterprise
An enterprise is the business organization that is formed,
which provides goods and services, creates jobs,
contributes to national income, exports and overall
economic development.
Need of Self Employment
The main need for Self Employment in any country is for
economic development. Economic growth depends on
the rate of innovation in the economic field, which in turn
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Theory 2.1.
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depends on the number and quality of entrepreneurs in R
the society. Thus, self employment is an agent of progress S
in the society. H
I
Self Employment is needed for: P
• economic growth
S
• new ideas, imagination and vision to the enterprise. K
• solutions to meet the challenge of changing I
environment and technology. L
L
• opportunities for future growth and development by S
reducing costs, increases its profits.
• maximising employment opportunities.
• Good living standard through good quality products
and services at the lowest possible cost
Advantages of Entrepreneurship/Self Employment
Every successful entrepreneur brings about benefits not
only for himself/ herself but for the region or country as a
whole. The benefits that can be derived from entrepre-
neurial activities are as follows:
• Enormous personal financial gain
• More job satisfaction and flexibility
• Development of more industries, especially in rural
areas or regions; Income generation and increased
economic growth
• Encouragement of the processing of local materials
into finished goods for domestic consumption as well
as for export
• Freedom from the dependency on the jobs offered by
others and to give employment for others
• Entrepreneurship is motivated by the drive to meet
personal, emotional or financial needs of the individual.
Function of entrepreneur
The various functions performed by entrepreneur are:
• Entrepreneur begins into the existence of a business
unit and therefore he acts as a promoter.
• Entrepreneur arranges the various factors of
production and finance for the business.
• Entrepreneur sets up the desired organisation and
prepares plans and policies for its smooth functioning.