Significance of entrepreneur in economic development

Significance of entrepreneur in economic developmentFrom:Ayush (1)Isha (2)Mehak (3)Richa (4)

Concept of EntrepreneurIndividuals who take initiative to establish business and work for themselves on their own risk.

A key figure in economic growth.

The word entrepreneur has its origin in French language which refers to organiser of musical or other entertainment.

Meaning of entrepreneurAn entrepreneur is a person who has already started or is in the process of starting an enterprise.

Definition Joseph Schumpeter Entrepreneur is an innovator who brings economic development through new combinations of factors of production.

DefinitionsWebsters dictionary one who organizes, manages and assumes the risk of a business or Entreprise.

A. H.Cole Entrepreneurship is a purposeful activity of an individual or a group of associated individuals, undertaken to initiate, maintain or organize profit oriented business unit for the production and distribution of economic goods and service.

Modern concept of entrepreneurshipPerceive opportunities for profitable investmentInitiative in establishing a businessRisks bearingCo-ordination of different factors of productionIntroduction of innvotionsProvision of capital

Main features of entrepreneurship

Basic components of entrepreneurship

DIFFERENCE BETWEEN INTRAPRENEURSHIP ANDENTREPRENEUR

ENTREPRENEURSHIPEntrepreneurship is the practice of embarking on a new business or reviving an existing business by pooling together a bunch of resources, in order to exploit new found opportunities.An entrepreneur takes substantial risk in being theowner and operatorof a business with expectations of financial profit and other rewards thatthe businessmay generate.

INTRAPRENEURSHIPIntrapreneurship is the practice of entrepreneurship by employees within an organization.An intrapreneur is an individual employed by an organization for remuneration, which is based on the financial success of the unit he is responsible for.

TYPES OF ENTREPRENEUR

Types of entrepreneur

The Manager EntrepreneurThis is the type of person who becomes involved with start ups once they have received a fair bit.The Setup For Failure EntrepreneurThis is the kind of entrepreneur that has failure written all over everything he does. All he does is complain, and when he takes on a project it is too ambitious and destined to fail even before he starts.

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The Lifestyle EntrepreneurSome people just want to live the life and act the part. They promote entrepreneurship, have lots of ideas about entrepreneurship but they dont actually do anything. Well, maybe consult a bit on the side.The Cash-flow EntrepreneurThis entrepreneur doesnt think about anything except money. In general that can be a good thing for an entrepreneur but some people overdo it. Entrepreneurship is about the bottom-line but also about innovation, inspiring your team, thinking ahead and building something out of nothing.

The Better World Entrepreneur. First focus should be in making your company more successful and then using your success to make the world a better place.

The Headlines EntrepreneurSome entrepreneurs are in it strictly for the fame. They rush from one headline to another and are more focused on making it to the front page of the newspaper than actually doing business. Your company is doing well when you get lots of customers, make a lot of money and your investors are happy..

Functions of EntrepreneurEntrepreneur is the person who takes the initiative of establishing a business enterprise. He is also designated as the captain of the industry, business organizer, and the business manager. An entrepreneur is responsible for the performance areas of: PRODUCTION

HUMAN RESOURCE ENTERPRENEUR SALES/MARKETING

TECHNOLOGY FINANCE

The various functions performed by the entrepreneurs are: He brings into existence a business unit and therefore he acts as a promoter.He prepares the blue print of the business activities.He arranges the various factors of production and finance for the business.He sets up the desired organisation and prepares plans and policies for its smooth operation.He performs distributive functions by making necessary payment to land, labour and capital.He must be a man of clear vision and full knowledge of business activities.

Functions can be further categorized as:-

1. Risk-bearing function: The functions of an entrepreneur as risk bearer is specific in nature. The entrepreneur assumes all possible risks of business which emerges due to the possibility of changes in the tastes of consumers, modern techniques of production and new inventions.2. Organisational Function: The entrepreneur brings together various factors of production, ensures continuing management and renders risk-bearing functions as well. Entrepreneur is an organiser who alone determines the lines of business to expand and capital to employ more judiciously.

3. Innovative Function: The basic function an entrepreneur performs is to innovate new products, services, ideas and informations for the enterprise. The entrepreneur foresees the potentially profitable opportunity and tries to exploit it.4. Managerial Function: Entrepreneur performs a managerial function like determination of business objectives, formulation of production plans, product analysis and market research, organisation of sales procurring machine and material, recruitment of men and undertaking, of business operations.

5. Decision Making Function:He determines the business objectives suitable for the enterprise,He develops an organization and creates an atmosphere for maintaining a cordial relationship with subordinates and all employees of the organization,He decides in securing adequate financial resources for the organisation,He decides in introducing advanced modern technology in the enterprise,He decides the development of a market for his product, develops new product or modify the product in accordance with the changing consumer's preference,He also decides to maintain good relations with the public authorities as well as with the society at large for improving the firms image before others.

ROLE OF ENTREPRENEURINECONOMIC GROWTH

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Economists viewThe position of the entrepreneur in modern production is like that of the director of a play.

The entrepreneur directs production and he must do whatever is necessary for its success.

Role in modern economic development has at least three aspectsThe entrepreneur co-ordinates the other factors of production.

Co-ordination involves selection of the right type of factors, employment of each factor in the right quantity, use of the best technical devices, division of labour, reduction of waste etc.

(b) The entrepreneur takes risks.

(c) The entrepreneur innovates

The entrepreneur can undertake any type of the following five categories of innovation. The introduction of a new good or a new quality of a good.The introduction of a new method of production.The opening of a new market.The conquest of a new source of supply of raw materials.The carrying out of a new organisation of any industry.

IMPORTANCE OF ENTREPRENEURIN ECONOMIC DEVELPOMENT

Entrepreneurship is the dynamic need of a developing nation and sustains the process of economic development in the following ways:

Employment generation National incomeDispersal of Economic powerBalanced Regional development Harnessing Locally available resources and EntrepreneurshipReducing unrest and social tension amongst youthInnovations in enterprises Improvement in living standards Economic independence

Conclusion

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