18BCO5EL-GENERAL COMMERCIAL KNOWLEDGE I-UNIT-III
Entrepreneurship-meaning-types-qualities of an entrepreneur-factors influencing
entrepreneurship-functions of entrepreneur.
Entrepreneurship introduction
The term entrepreneurship denotes the process of setting up one's own business venture as
distinct from pursuing any other economic activity or any employment or practicing some
profession. The person who establishes business is termed as entrepreneur. The output of an
entrepreneurial process ends up in establishing an enterprise.
Meaning
Entrepreneurship generates employment opportunities to many people besides providing
self-employment to the entrepreneur. Any business venture started triggers a variety of
economic activities like purchasing raw material, creating employment opportunities and so
on. Thus, entrepreneurship become crucial for overall economic development of a nation.
Entrepreneurship can be regarded as one of the four major factors of production besides the
other three namely land, labour and capital.
Definition
According to J.A. Schumpeter Joseph A. Schumpeter, "Entrepreneurship is essentially a
creative activity. It consists of doing such things as are generally not done in ordinary course
of business. An entrepreneur is one who innovates, i.e. carries out new combination or
enterprise.
As per Mary Coulter, "Entrepreneurship is the process whereby an individual or group of
individuals use organised efforts to pursue opportunities to create value and grow by
fulfilling wants and needs through innovation and uniqueness, no matter what resources the
entrepreneur currently has."
Entrepreneurship plays a pivotal role in the economic development of a country.
Characteristics of Entrepreneur
The following points highlight the characteristics of entrepreneurship.
1. Spirit of Enterprise
Entrepreneur should be bold enough to encounter risk arising from the venture undertaken.
Entrepreneur should not get discouraged by setbacks or frustrations emerging during the
course of entrepreneurial journey.
