7/29/2019 Entrepreneurship Develpment

http://slidepdf.com/reader/full/entrepreneurship-develpment 1/3

 An entrepreneur is defined as someone who organizes a business venture and assumes the

risk for it. But an entrepreneur is much more than just a creator of organisations;

entrepreneurship in itself is the characteristic and a trait of an individual.

Historically, India has been a country of the self-employed and not of employees. Even with

the influx of large corporate organisations into the economy, the bulk of the income

generation in the country today is centered on small and medium business owners. These

businesses are the largest contributors to national income & employment, and have

increasingly been courted by financial institutions and policy makers.

The self employed are the backbone of the nation. From the corner tea shop, mom-and-pop

grocery, scrap dealer and the internet start-up, all these entrepreneurs need encouragement

and help to be able to compete in the global economy, and the Government of India has been

at the forefront to promote private entrepreneurship by providing the right socio-economic

ecosystem for innovation & development.

Basics of Entrepreneurship

 An activity to convert ideas into economic opportunities is the core of entrepreneurship.

Entrepreneurship is referred to as a source of improvement and change resulting into

improvements in productivity and economic competitiveness. In fact, it is closely associated

with knowledge and flexibility as well.

With technological advancement and global competitiveness brought about by globalization

and economic liberalization, fostering entrepreneurship increases a country's competitiveness

in the ever changing economic forefront. Influence of entrepreneurship to economic growth

can be expressed through competition, innovation.

The key to transforming an individual from being "self-employed" to become an

"entrepreneur" is the establishment of a business organisation. The Ministry of  Micro, Small

and Medium Enterprises is the harbinger of this change, as a majority of new business

entities are launched with minimum capital and maximum vision.

Types of Entrepreneurs

Though, there are many thoughts about the classification of entrepreneurs, yet few of them

are classified on the basis of business they are into, use of technology, and others. Again,

being an entrepreneur is not a clearly defined thing. In fact, some day one is a manager and

7/29/2019 Entrepreneurship Develpment

http://slidepdf.com/reader/full/entrepreneurship-develpment 2/3

other day he/she is a motivator to inspire. Thus, being an entrepreneur means doing different

kinds of things at different moments. Some of them are:

  Business entrepreneurs convert ideas into reality; deal with both manufacturing and

trading aspect of business. Generally, they are small trading and manufacturing

business.

  Social entrepreneurs are motivated by a desire to help, improve and transform social,

environmental, educational and economic conditions of the society/country.

  Trading entrepreneurs undertake trading activities; more concerned with marketing at

domestic and international level.

  Industrial entrepreneurs generally undertake manufacturing activities only. They are

into new product development e.g. textile, electronics, etc.

  Corporate entrepreneurs are mainly interested in the managerial aspect of organisation.

They possess exceptional organising, coordinating skills to manage a corporate

undertaking.

   Agricultural entrepreneurs are into production and marketing of agricultural inputs and

outputs e.g. dairy, horticulture, etc.

  Technical entrepreneurs are production oriented; possess exceptionally innovative skills

in manufacturing, quality control etc.

  Non technical entrepreneurs are those who focus on developing marketing, distribution

facilities and strategies for the smooth operation.

o   Area- Rural and Urban entrepreneur

o  Gender/Age- Men and Women entrepreneur

o  Scale- Small and Large scale entrepreneur

Relation between Economy and Entrepreneurship

The idea that entrepreneurship and economic growth are very closely and positively linked

together has undoubtedly made its way since long. To quote Adam Smith, when the division of 

labour increases, so will economic development. An increase in the number of entrepreneurs

leads to an increase in economic growth. This effect is a result of the concrete expression of 

their skills, and more precisely, their propensity to innovate.

7/29/2019 Entrepreneurship Develpment

http://slidepdf.com/reader/full/entrepreneurship-develpment 3/3

Entrepreneurship is a key indicator of economic development of any country. As more and

more of the population becomes involved in opportunity entrepreneurship and as more and

more people leave necessity entrepreneurship (self-employment) the more we see rising levels

of economic development.

In other terms, the entrepreneurs are known as an economic agent - the "driving force of the

market". Entrepreneurs create new businesses, and new businesses in turn create jobs,

intensify competition, and may even increase productivity through technological change. High

measured levels of entrepreneurship will thus translate directly into high levels of economic

growth.