Different Definition of Entrepreneur

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  • Topic: Factors of production, Joseph Schumpeter
  • Pages : 1 (259 words )
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  • Published : January 20, 2013
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1. Different definition of Entrepreneur

a.) Entrepreneur is a loanword from French and was first defined by the Irish-French economist Richard Cantillon as the person who pays a certain price for a product to resell it at an uncertain price, thereby making decisions about obtaining and using the resources while consequently admitting the risk of enterprise.

b.) An Entrepreneur is an economic agent who unites all means of production. Land of one, the labour of another and the capital of another and thus produces a product. By selling the product in the market he pays rent of land, wages to labour, interest on capital and what remains is his profit.

c.) Entrepreneurs are innovators who use a process of shattering the status quo of the existing products and services, to set up new products, new services.

d.) An Entrepreneur is a person with a high need for achievement. He is energetic and a moderate risk taker.

e.) An Entrepreneur searches for change, responds to it and exploits opportunities, innovation is a specific tool of an entrepreneur hence an effective entrepreneur converts a source into a source.

f.) An Entrepreneur supplies risk capital as a risk taker, monitors and controls the business activities. The Entrepreneur is usually a sole- proprietor, a partner or the who owns the majority of shares in an incorporated venture.

g.) Entrepreneurs are not necessarily motivated by profit but regard it as a standard for measuring achievement or success.

h.) Entrepreneurs take initiative, accept risk of failure and have an internal locus of control.