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An Entrepreneur (ahntra pra nur) is aperson who organizes and manages a

business undertaking, assuming the riskfor the sake of profit. Any person (anyage) who starts and operates a businessis an entrepreneur

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The word has been taken from theFrench language Entreprendre : toundertake

Originally meant to designate anorganiser of musical or otherentertainment programs

Beginning of eighteenth century gave ita economical aspect.

Views of entrepreneur are classified intoRisk bearer ,organizer and innovator

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1) As a risk-bearer :

According to Richard Cantillon, an entrepreneur is anagent who buys factors of production at certainprices in order to combine them into a product witha view to selling it at uncertain prices in future.

2) As an organiser : Jean- Bapite Say, an industrialist, with unpleasant

practical experiences developed this concept thatsurvived for over two centuries.

He explains an entrepreneur as one who combines

the land of one, the labour of another and thecapital of yet another, and thus, produces aproduct.

Distinction between capitalist as a financer andentrepreneur as an organiser.

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3)As an innovator :

Joseph. A. Schumpeter, considered economicdevelopment as a dynamic change brought by anentrepreneur by instituting new combinations ofproduction ie: innovations.

Entrepreneurship is essentially a creative activity or it isa innovation function. The process of innovation may

be in the form of

Introduction of a new product.

Use of a new method of production.

Opening of a new market.

The conquest of new sources of supplying raw material

A new form of organization

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Entrepreneurship is meant to be thefunction of seeing investment and

production opportunity, organizing anenterprise to undertake a newproduction process, raising capital, hiringlabour, arranging for supply of raw

material and selecting top managers forthe day to day operation of theenterprise

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Idea generation and scanning of the

best suitable idea. Determination of the business objectives.

Product analysis and market research

Determination of form ofownership/organisation.

Completion of promotional formalities

Raising necessary funds

Procuring machine and material

Recruitment of men

Undertaking the business operations

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I. Innovating Entrepreneurs : is the one who

introduces new goods, inaugurates newmethod of production, discovers newmarket.

II. Imitative Entrepreneurs : do not innovatechanges on their own, they imitatetechniques and technology innovated byothers.

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III. Fabian Entrepreneurs : are characterisedby very great caution and scepticism in

experimenting any change in theirenterprises.

IV. Drone Entrepreneurs : refusal to adoptopportunities to make changes in

production formulae even at the cost ofseverely reduced returns

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Emerge from an existing enterprise.

The top level executives are encouragedto brainstorm, catch hold of new ideasand convert them into products through

R&D activities. Such intrapreneurs breed to the

innovative entrepreneurs who

inaugurate new products thus acting asa threat to the organisations.

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Parameter Entrepreneur IntapreneurDependency Independent Dependent on

entrepreneur

Raising of funds On his own Not by his ownRisk Bears the risk Does not fully bear the

risk

Operation Operates from outside Operates from withinthe organization

Who would you like to be ?

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Motive

BehaviourGoal

Process of Motivation

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Esteem needs. These needs classified into twosubsidiary sets. These are, first, the desire forstrength, achievement, adequacy, masteryof competence, confidence, independenceand freedom. Second, the desire forreputation or prestige (defining it as respectfrom other people), status, fame, glory,dominance, importance, recognition, dignityor appreciation.

Need for self-actualization- This doesnt justaddress what we are lacking in our lives, but itgives us room to grow and develop as anindividual. Once someone has satisfied the first fourlevels of needs then they have the ability toconcentrate on functioning to their highestpotential. Eg. Realise once potential- writing abook.

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Theory of High Achievement/Theory of Achievement Motivation

McClelland identified 2 characteristics ofentrepreneurship

Doing things in a new and better way

Decision making under uncertainty

He stressed that people with high achievementorientation (need to succeed) were more likely tobecome entrepreneurs

Such people are not influenced by money or externalincentives

They consider profit to be a measure of success andcompetency

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Motivation theory by McClelland(Acquired Needs theory)

According to McClelland, a person hasthree types of needs at any given time,which are:

Need for achievement (get success with onesown efforts)

Need for power (to dominate, influence others)

Need for affiliation (maintain friendly relations

with others)

The need for achievement is the highest forentrepreneurs

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Has a strong need to set andaccomplish challenging goals.

Takes calculated risks to accomplishtheir goals.

Likes to receive regular feedback ontheir progress and achievements.

Often likes to work alone

In Summary: The drive to excel, toachieve in relation to a set ofstandards, and to strive for success

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Wants to belong to the group. Wants to be liked, and will often go

along with whatever the rest of thegroup wants to do.

Favors collaboration overcompetition.

Doesn't like high risk or uncertainty Suitable job position- Customer service

and client interaction

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