Chapter 1: Concepts of Entrepreneurship PDF

CHAPTER - 1 CONCEPT OF ENTREPRENEUR, ENTREPRENEURSHIP, AGRIPRENEUR OR AGRIENTREPRENEURSHIP, BUSINESS, BUSINESSMAN AND ENTREPRENEURSHIP DEVELOPMENT. INTRODUCTION An entrepreneur is an individual who creates a new business, bearing most of the r...

CHAPTER - 1 CONCEPT OF ENTREPRENEUR, ENTREPRENEURSHIP, AGRIPRENEUR OR AGRIENTREPRENEURSHIP, BUSINESS, BUSINESSMAN AND ENTREPRENEURSHIP DEVELOPMENT. INTRODUCTION An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards as an economic agent. The entrepreneur is commonly known as an innovator, as an creator, a source of new ideas, goods, services and business or procedures As an economic agent entrepreneur plays a key role in the economic development of a country. CONCEPT OF ENTREPRENEUR An Entrepreneur is an individual with knowledge, skills, initiative, drive and spirit of innovation who aims at achieving goals. An entrepreneur identifies opportunities and seizes opportunities for economic benefits. Entrepreneurs being an economic man aim to optimize his business profits through innovative means. An entrepreneur is someone who practice initiative by organizing a venture to take benefit of an opportunity and, as the decision maker, decides what and how venture to be create, and what, how and how much of a goods or service will be produced. An entrepreneur provides risk capital (venture capital) as a risk taker, and observes and controls the business activities which give profits. The entrepreneur is usually a sole proprietor, or a partner, or the one who owns the majority of shares in an incorporated venture. If one desires to be an entrepreneur, the given equation is what describes, what an entrepreneur actually is. Entrepreneur + Capital = Products + Customers = Business. HISTORY OF THE TERM ENTREPRENEUR Around 1700 A.D. the term was used for architects and contractor of public works. In many countries, the term entrepreneur is often associated with a person who starts his/her own new business. The word “Entrepreneur” is derived from the French verb "entrependre" In the early 18th century French economist Richard Cantillon used the term entrepreneur to business. Since that time the word entrepreneur means one who takes the risk of starting a new organization or introducing a new idea, product or service to society. French economist Richard Cantillon was known as Father of Entrepreneurs world. DEFINITIONS Some of the definitions given by scientists to understand who an entrepreneur is; According to Oxford Dictionary, An entrepreneur is a person who sets up a business or businesses, taking on financial risks in the hope of profit. According to the International Encyclopaedia, entrepreneur is an individual who bears the risk of operating a business in the face of uncertainty about the future conditions. According to Richard Cantillon, An entrepreneur is the agent who buys factors of production at certain prices in order to combine them into a product with a view to selling it at uncertain prices in future. CONCEPT OF ENTREPRENEURSHIP The term ̳entrepreneurship‘ is often used synonymously with the term ‘Entrepreneur‘ though, they are two sides of the same coin, conceptually they are different. Entrepreneurship is the dynamic process of creating gradual wealth. This wealth is created by individuals who assume the major risks in terms of wealth, equity, time, and/or career commitment of providing value/ identity for some product or service in the market. Entrepreneurship is now regarded as Pioneer ship of business. The history of the early industrial development and trade and subsequent innovation in any country is largely the history of its entrepreneurs. In short, the concept of entrepreneurship can be easily understood as under: a) Entrepreneurship involves decision making, innovation, implementation, forecasting of the future, independency, and success. b) Entrepreneurship is a dynamic and risky process. c) Entrepreneurship is a process. It is not a combination of some stray incidents. d) It involves a fusion of capital, technology and human talent. e) Entrepreneurship is equally applicable to big and small businesses, to economic and non- economic activities. f) Different entrepreneurs might have some common traits but all of them will have some different and unique qualities. g) It is the purposeful and organized activities for change, conducted after systematic analysis of opportunities in the environment. h) Entrepreneurship is a creative activity. i) It is the ability to create and build something from practically nothing. DEFINITIONS "Entrepreneurship is the process of identifying and utilizing the available opportunity and resources to convert an idea into the form of a product or services to market." According to Peter F. Drucker, Entrepreneurship is defined as a systematic innovation, which consists in the purposeful and organized search for changes, and it is the systematic analysis of the opportunities such changes might offer for economic and social innovationǁ. According to Richard Cantillon, Entrepreneurship entails bearing the risk of buying at a certain price and selling at uncertain prices. According to Joseph A. Schumpeter, Entrepreneurship is any kind of innovative function that could have a bearing on the welfare of an entrepreneur. CONCEPTS OF AGRIPRENEURS OR AGRIENTREPRENEURS Agrientrepreneurs or Agripreneurship is the entrepreneurial process proceed in agriculture or in allied sectors. It is the process of adopting new ideas, methods processes, techniques in agriculture or in allied sectors of agriculture for better output and profit earnings. Agriculture is the mainstay of the Indian economy because of its high share in employment and livelihood creation. It supports more than half a billion people providing employment to 57.90 per cent of the workforce. Amidst the changing paradigms and demanding global structure, India, In order to remain a front-runner needs to primarily focus on the agriculture sector, the backbone of the economy. DEFINITION OF AGRIPRENEURSHIP It is defined as generally "Sustainable, community oriented, directly marketed agriculture". Sustainable agriculture denotes a holistic, systems oriented approach to farming that focuses on the interrelationships of social, economic and environmental process. CONCEPTS OF BUSINESS AND BUSINESSMAN Business is derived from the word "busyness" meaning engaged in an activity. In simplest terms, business means to get or purchase something at low cost and sell it at a higher cost, meanwhile, the margin produced between that is the profit. Business‘s only purpose is profit, it is driven by it. Business necessarily has to be economic activities. In a business if we plan on bringing and selling a product, it has to either manufacture that product or purchase it and add a profit margin to it and sell it further. In other term we can say that “Business is any occupation which includes all activities which are connected with production or procurement of goods for sale and adding a profit margin to those costs for further selling it to the customer for the satisfaction of their needs.” Most importantly, the business aims at a profit but only through the satisfaction of the needs of the customers. The business includes every occupation in which people are busy in earning the income by the means of producing, purchasing, selling or exchanging goods or services to fulfil needs of other people with the objective of making a profit. A business man is an individual who operate or start a business for his personal needs. The sole purpose of businessman is to earn money and maximization of profit from business. It steps into the market with the main objective of earning a profit for the survival of business in a necessary. If a business can‘t produce profit, it is expected of it to go downhill market, getting profit is extremely financially. Therefore the businessman does all the possible tricks to maximize its profits by increasing the volume of sales or decreasing the costs.