EMERGENCE OF

ENTREPRENEURIAL CLASS
(WORLD)

Monirba {Allahabad
university}
Supported by – Manish kanojia (MBA III
sem}
Presented by:-
 INTRODUCTION
 The term Entrepreneur first appeared in the Frenchlanguage
and was applied to leaders of military expeditions in the
beginning of the 16th century.


 Richard Cantillion , an Irishman living in France was the first

person to use the term Entrepreneur to refer to economic
activities. He defined Entrepreneur as a person who buys
factor services at certain prices for selling his product at
uncertain prices in future. He viewed an Entrepreneur as a
bearer of non insurable risk.
Contd…………………………
 Entrepreneurial class came into being in 17th century.


 Invention of Steam Engine resulted in Industrial

revolution (1769). It changed small scale production to
large scale production.


 Due to this Industrial revolution, the Agrarian society in

Europe 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 scale

production and they were called Entrepreneurs.



Contd…………………………
 Due to large scale production the Entrepreneurs had
surplus matter available with them. They needed
market to get their product absorbed.


 As Britain had colonies all over the world so they

marketed their products to other countries. This is
how Entrepreneurship originated.
 OCCUPATIONAL ORIGIN
 The Entrepreneurs largely emerged from trading community.
Prof. Ashton conducted a survey in which he selected 47
British Innovators of Industrial revolution period (mainly
from manufacturing ). Out of them…


 1 17 Manufacturing Proprietors

2 10 Artisans

3 12 Peasants

4 4 Traders- Consumer goods

Industry
5 4 Professional men
 social origin
 The Entrepreneurs originated mainly from predominant
socially distinct groups and were innovative.
 They were outsiders and worked in Trade / Finance
rather than manufacturing industries.


q -- Prof. Geertz in 1963 conducted a survey in

Lebanon and found that 80% of the Entrepreneurs
were Christians however their population was very
low ,only 16% were Muslim entrepreneurs.
q --In Pakistan the Entrepreneurs were mainly from
kwasi caste and not from muslim community.


Ø


Societal perspective of
entrepreneurial growth
 Historical development of entrepreneurship is governed by
different factors. These factors are important determinants
of entrepreneurial growth and thus gave a societal
perspective to the entrepreneurship. These factors are as
follows:-


 (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
Contd………………………
 (1) Ethical value system:- Max Weber opined “ the
spirit of rapid industrialization depends upon a
nationalized technology , acquisition of money and its
rational use for productivity and multiplication of
money.”


 (2) Minority group morale:- According to Hagen “
disadvantaged minority group is generally the source
of entrepreneurship” . Ex:- Japan


 (3) Need for achievement motivation:-
McClellandapproach suggests that need for
achievement motivation is crucial factor in
determining the level of industrial and economic
Contd……………
 (4) New ideas and opportunities:- Exposure to new
ideas and opportunities also matter for people
entering into manufacturing activities. Ex:- Arya
samaj and Brahma samaj


 (5) Political systems:- Political system also plays an

important role in entrepreneurial growth. Ex:- Japan


 (6) Regional industrial climate:- Favorable regional

industrial climate also motivates people from
different parts of the country to develop an
entrepreneurial class in that particular region or area.
 conclusion
 The origin of emergence of entrepreneurial class lies in
Industrial revolution.
 The concept of entrepreneurship originated from
Europeand then propagated to different parts of the
world.
 The entrepreneurs largely emerged from Trading
community.
 The entrepreneurs were mainly Outsiders who settled
away from their country of origin.
 Disadvantaged minority group is generally the
source of entrepreneurship.




Thank you