THEORIES OF ENTREPRENEURSHIP

INTRODUCTION
 The concept and theories of entrepreneurship evolved over more than two centuries have undergone major changes. Yet the concept of entrepreneurship is still elusive.

The distinctive features of entrepreneurship over the years are:

Innovation A function of high achievement Organization building Group level activities Managerial skills and leadership Gap filling Status withdrawal Entrepreneurial supply and EntrepreneurshipEntrepreneurship- an emerging class.

 Entrepreneurship, as a process, has

and is undergoing changes in keeping with the continued 6 changes in different fields. In keeping with these changes, different theories of entrepreneurship have been evolved by different thinkers at different times. It is a continuously evolving process of change.

ENTREPRENEURSHIP IN DEVELOPING COUNTRIES

 Among the many definitions of the entrepreneur, that which distinguishes him as a person who undertakes to organize, manage and assume the risk of running a factory is the one generally adopted in the region. Small enterprises, like entrepreneurship, cannot be defined specifically. The concept is variously understood in different countries depending on the prevailing economic and social conditions. Generally, the definition is based on two criteria: quantitative, which includes the size of the company in terms of the number of workers, consumption of energy, capitalization or value of sales and qualitative, which refers to the organization and management of the enterprise, methods of production or influence on the market.

A variety of social, economic, political and cultural factors are stimulating entrepreneurial activity and consequently generating economic development. These stimulants of change are as follows: An increasing focus on capital formation: Availability of capital is formation: a stimulant to an entrepreneur to start a new firm or give birth to a new idea. The ability to transform scientific and technical developments through new institutional developments. The supportive government programmes. Availability of required training inputs. A collaborative relationship between business and research and their direct attempts to transfer technology to the market place will be an opportunity for entrepreneurs who commercialize their ideas. Finally, an endeavour to create an environment conducive to innovation will provide a much- needed stimulant to muchentrepreneurial activities.

ENTREPRENEURSHIP AND ECONOMIC GROWTH

INNOVATION CENTRE
INVENTORS LICENSE TO ANOTHER COMPANY

ENTREPRENEURS

TECHNOLOGICAL EVALUATION NEW COMPANY IN INCUBATION CENTRE

BUSINESS AND GOVERNMENT EMPLOYEES

COMMERCIAL FEASIBILITY STUDIES

STUDENT AND FACULTY

ENTREPRENEURIAL ASSESSMENT

PRODUCT DEVELOPMENT AND MODIFICATION

NEW COMPANY IN WORK PLACE

NEW COMPANY IN BUSINESS ENVIRONMENT

Joseph Schumpeter (1934) for the first time put the human agent at the centre of the process of economic development and assigned a critical role to entrepreneurship in his theory of economic development. According to Schumpeter, entrepreneurship is essentially a creative activity or it is an innovative function. The process of innovation may be in the form of
 introduction to new product  use of new method of production  opening new market  the conquest of new source of supplying raw material  a new form of organization

 In the Indian context, entrepreneurship has yet another dimension. An entrepreneur may not necessarily be an innovator but an imitator who would copy the organization, technology, products of innovators from other developed regions.  Other social scientists, notably Max Weber, have talked of the importance of entrepreneurship and expressed the view that creative and entrepreneurial energies are generated by the adoption of exogenously supplied beliefs which in turn produce intense efforts in occupational pursuits and accumulation of productive assets leading to the manufacture of goods and services.

ENTREPRENEURSHIP AND ECONOMIC SYSTEMS

 Entrepreneurship plays an important role in the economic system which determines the nature and scope of this field. Economic systems grow and take shape under the influence industrial policy, economic policy, and the socio-political socioand cultural ideas of the people. Entrepreneurship gives a fillip to new organizational forms and the economy has to adjust to these demands.  The economic systems may be Capitalism, Socialism and Mixed Economy. The role of entrepreneur in each of the economic system changes.

FACTORS INFLUENCING ENTREPRENEURSHIP

 Peter Heydernann, the science counselor in the U.S Embassy here seems much impressed with the role the small business play in the process of innovation in the U.S economy. He explained incubators are used successfully in the United States to encourage small entrepreneurs.  Factors influencing entrepreneurship are:
Type of economy. Social environment Government rules and regulations Enforce developmental programmes

LEAP FORWARD

 Inspite of the trials and tribulations, the term entrepreneur in the modern sense entrepreneur came into usage in the late 18th century with the advent of the Industrial Revolution in England. It was during this period that people developed inventions and made an appreciable amount of discoveries in a variety of productive occupations. Their innovative behaviour enganged them in doing new and useful things or old things in an improved way. The flow chart of an industrial entrepreneur is mentioned below for illustration.

FLOW CHART OF INDUSTRIAL ENTREPRENEUR

GENERATES PROFITS INDUSTRIAL LICENSE

DEVELOPMENT

MARKETING

PRODUCTION

MOTIVATION

TECHNICAL KNOW-HOW

ARRANGES INITIAL CAPITAL

E N T R E P R E N E U R

RISK TAKING

EXPLORATION

PROFITABLE INVESTMENT

INNOVATION

PERCEPTION

A PRESENTATION BY: SHRI S.B SHARAN