8/14/2019 Emergence of Entrepreneurial Class (World)

1/11

EMERGENCE OFENTREPRENEURIAL CLASS(WORLD)

Monirba {Allahabaduniversity}

Supported by Manish kanojia (MBA IIIsem}

Presented by:-

Debanshu

8/14/2019 Emergence of Entrepreneurial Class (World)

2/11

INTRODUCTION The term Entrepreneur first appeared in the Frenchlanguage

and was applied to leaders of military expeditions in thebeginning of the 16th century.

Richard Cantillion , an Irishman living in France was the first

person to use the term Entrepreneur to refer to economicactivities. He defined Entrepreneur as a person who buysfactor services at certain prices for selling his product atuncertain prices in future. He viewed an Entrepreneur as abearer of non insurable risk.

8/14/2019 Emergence of Entrepreneurial Class (World)

3/11

Contd Entrepreneurial class came into being in 17th century.

Invention of Steam Engine resulted in Industrialrevolution (1769). It changed small scale production tolarge scale production.

Due to this Industrial revolution, the Agrarian society inEurope got transformed into Industrial society.

The European society was mainly dominated by Artisans and

Peasants and they witnessed large scale production.

A group of people mainly traders took risk for large scaleproduction and they were called Entrepreneurs.

8/14/2019 Emergence of Entrepreneurial Class (World)

4/11

Contd

Due to large scale production the Entrepreneurs hadsurplus matter available with them. They neededmarket to get their product absorbed.

As Britain had colonies all over the world so theymarketed their products to other countries. This ishow Entrepreneurship originated.

8/14/2019 Emergence of Entrepreneurial Class (World)

5/11

OCCUPATIONAL ORIGIN The Entrepreneurs largely emerged from trading community.

Prof. Ashton conducted a survey in which he selected 47British Innovators of Industrial revolution period (mainlyfrom manufacturing ). Out of them

1 17 Manufacturing Proprietors

2 10 Artisans

3 12 Peasants

4 4 Traders- Consumer goodsIndustry

5 4 Professional men

8/14/2019 Emergence of Entrepreneurial Class (World)

6/11

social origin

The Entrepreneurs originated mainly from predominantsocially distinct groups and were innovative.

They were outsiders and worked in Trade / Financerather than manufacturing industries.

q -- Prof. Geertz in 1963 conducted a survey inLebanon and found that 80% of the Entrepreneurswere Christians however their population was verylow ,only 16% were Muslim entrepreneurs.

q

--In Pakistan the Entrepreneurs were mainly fromkwasicaste and not from muslim community.

8/14/2019 Emergence of Entrepreneurial Class (World)

7/11

Societal perspective ofentrepreneurial growth Historical development of entrepreneurship is governed by

different factors. These factors are important determinantsof entrepreneurial growth and thus gave a societalperspective to the entrepreneurship. These factors are asfollows:-

(1) Ethical value of Entrepreneur

(2) Minority group moral

(3) Need for achievement motivation

(4) Political system

(5) Exposure to new ideas and opportunities (6) Industrial climate

8/14/2019 Emergence of Entrepreneurial Class (World)

8/11

Contd

(1) Ethical value system:- Max Weber opined thespirit of rapid industrialization depends upon anationalized technology , acquisition of money and itsrational use for productivity and multiplication ofmoney.

(2) Minority group morale:-According to Hagen

disadvantaged minority group is generally the sourceof entrepreneurship . Ex:-Japan

(3) Need for achievement motivation:-McClellandapproach suggests that need for

achievement motivation is crucial factor indetermining the level of industrial and economic-

8/14/2019 Emergence of Entrepreneurial Class (World)

9/11

Contd

(4) New ideas and opportunities:- Exposure to newideas and opportunities also matter for peopleentering into manufacturing activities. Ex:- Aryasamaj and Brahma samaj

(5) Political systems:- Political system also plays animportant role in entrepreneurial growth. Ex:-Japan

(6) Regional industrial climate:- Favorable regional

industrial climate also motivates people fromdifferent parts of the country to develop anentrepreneurial class in that particular region or area.

8/14/2019 Emergence of Entrepreneurial Class (World)

10/11

conclusion The origin of emergence of entrepreneurial class lies in

Industrial revolution.

The concept of entrepreneurship originated fromEuropeand then propagated to different parts of theworld.

The entrepreneurs largely emerged from Tradingcommunity.

The entrepreneurs were mainly Outsiders who settledaway from their country of origin.

Disadvantaged minority group is generally thesource of entrepreneurship.

8/14/2019 Emergence of Entrepreneurial Class (World)

11/11

Thank you