Escolar Documentos
Profissional Documentos
Cultura Documentos
ENTREPRENEURIAL DEVELOPMENT
Evolution of Concept
The word „entrepreneurs‟ is derived from the French As an Organizer:
verb „entreprendre‟. It means to „undertake‟ it originally means Jean Baptiste says “One who combines the land of one
that to designate an organize of musical or other the labour of another and capital of yet another and thus
entertainments. Oxford dictionary in 18 “the director or a produces a product. By selling the product in the market he
manager of a public musical institution, one who „gets up‟ pays interest on capital, rent on land wages to laborers and
entertainment, especially musical performance”. In it the early what remains is his/her profit. Thus he made a clear distinction
16th century entrepreneur was applied to those who were between the role of capitalist as a financed and entrepreneurs as
engaged in military expeditions. In the 17th century it was a organizer.
considered as to cover civil engineering activities such as
construction and notification. It was only in 18th century the As an Innovator:
word entrepreneur was used to cover economic aspects. The Joseph A Schumpeter in 1934 in his book “theory of
term entrepreneur is used in various ways and terms. The views economic development” he says economic development as a
are broadly classified in three ways. discrete dynamic change brought entrepreneur by instituting
Risk bearer new combination of production i.e, .innovations. According to
Organizer and him introduction of new product may occur in any of following
Innovator five norms:
Risk Bearer: 1. Introduction of new product in the market
In 18th century Richard Cantillon an Irish man living in 2. The instituting of new production technology which is
France, was first used entrepreneur and defined as An agent not yet tested by experience in the branch of
who buys factors of production at certain prices in order to manufacture.
combine them in to a product with a view entrepreneurs are 3. Opening of new market into which the specific product
risk bearing agents of product. has not previously entered.
Knight also described entrepreneur to be a specialized 4. The discovery of new source of supply raw material
group of persons who bear uncertainty. Uncertainty can be 5. The carrying out of the new form of organization of any
defined as a risk which cannot be in insured against and is industry b creating of monopoly position or the
incalculable. breaking of it.
1
ENTREPRENEURIAL DEVELOPMENT
2
ENTREPRENEURIAL DEVELOPMENT
eh cost of severely reduced returns relative to other like Distinction between an Entrepreneur and a
producers. Such entrepreneurs may even suffer from losses but
they are not ready to make changes in their existing production Professional Manager:
methods. A professional manager is one who specializes in the
Following are some more types of entrepreneurs listed
by some other behavioral scientists: work of planning, organizing, leading and controlling the
Solo operators: efforts of others by the systematic used of classified knowledge
These are the entrepreneurs who essentially work alone
and it needed at all, employ a few employees. In the beginning and principles.
most of entrepreneurs start their enterprise like them. Both managers and entrepreneurs are answerable for
Active partners:
Active partners are those entrepreneurs who start/carry producing results. Both have to produce results through people
on an enterprise as a joint venture. It is important that all of working with them though they deal with different sets of
them actively participate in the operations of the business.
Inventors: people. Both are decision makers but the decisions are different
Such entrepreneurs with their competence and as their tasks vary. Both have to operate under constraints
inventiveness invent new products. Their basic interest lies in
research and innovative activities. which are understandably different. To be effective in their
Buyers: respective roles, both have to follow sound principles of
These are those entrepreneurs who do not like to bear
much risk. Hence, in order to reduce risk involved in setting up management like planning, staffing, delegation and control.
a new enterprise, they like to buy the ongoing one.
Lifetime:
These entrepreneurs take business as an integral part of
their life. Usually, the family enterprise and businesses which
mainly depend on exercise of personal skill fall in this
type/category of entrepreneurs.
3
ENTREPRENEURIAL DEVELOPMENT
4
ENTREPRENEURIAL DEVELOPMENT
5
ENTREPRENEURIAL DEVELOPMENT
INTRAPRENEUR
A new breed of entrepreneurs is coming to the fore in Differences between Entrepreneur and Intrapreneur:
large industrial organizations. They are called „intrapreneurs‟. Points Entrepreneur Intrapreneur
They emerge from within the confines of an existing enterprise. Ownership entrepreneur is the An intrapreneur is an
In big organizations, the top executive‟s area encouraged to owner of the employee of the
catch hold of new ideas and then convert these into products organization enterprise
through research and development activities within the Status An entrepreneur is An intrapreneur is
framework of organization. The concept of Intrapreneurship independent in his dependent on his
has become very popular in developed countries like America. status employer or owner
It was Gifford Pinchot III, an American Management Raising of an entrepreneur raises An intrapreneur does
expert, who used the term „intrapreneur‟ for the first time in capital: the required capital for not raise the capital
1983. a his business
A person within a large corporation who takes direct Risk An entrepreneur bears An intrapreneur does
responsibility for turning an idea into a profitable finished the risk involved in his not bear any risk
product through assertive risk taking and innovation business. involved in his
Intrapreneurs have entrepreneurial skills blended with business
managerial skills but operate within the confines of an operations An entrepreneur An intrapreneur
organization. operates in his business operates from within
"Intrapreneurship refers to employee initiatives in from outside his business
organizations to undertake something new, without being asked organization.
to do so". This Intrapreneur focuses on innovation and Guarantee of An entrepreneur gives An intrapreneur does
creativity and who transforms a dream or an idea into a payment guarantee of payment not required to do so
profitable venture, by operating within the organizational of money to the
environment. Thus, Intrapreneurs are inside entrepreneurs who lenders
follow the goal of the organization. Convention An entrepreneur An intrapreneur has
of new ideas converts his new ideas only to create his new
or high intrapreneurs‟ ideas but he cannot
ideas into reality. convert them on his
own account.
6
ENTREPRENEURIAL DEVELOPMENT
7
ENTREPRENEURIAL DEVELOPMENT
2. Seeks a challenge
3. Desires immediate and specific feedback on his
performance
4. Is objective oriented.
5. Is pre-occupied with his work and
6. Has a high level of energy to hard work.
Need for power:
This is concerned with the desire
1. To influence or control other people,
2. To be responsible for others
3. To hold authority over them and
4. To control one‟s environment including resources and
information.