Chapter: Introduction to Entrepreneurship process and principles
Definition of entrepreneur
-According to American Heritage Dictionary, “Entrepreneur is a person who organizes, operates and assumes the risk for business venture” -According to Skinner SJ and Ivancevich JM,” An entrepreneur is a person who takes the risks necessary to organize and manage a business and receives the financial profits and monetary rewards” -Entrepreneur is a person who organizes and assumes the risk of his or her own venture”.
Meaning and definition of Entrepreneurship
-According to R.M.Hodgehs,-‘Entrepreneurship is the process of organizing, managing and assuming the risk of a business.” Entrepreneurship is the capacity for innovation, investment, and expansion in new markets, products and techniques. So entrepreneurship is considered as the act of assuming the risk and task of an entrepreneur, so it is the act of starting a business.
Definition of Intrapreneurship
-The term intrapreneurship refers to entrepreneurial activities that receive organizational sanction and resource commitments for the purpose of innovative results.
Definition of Intrapreneur
-According to Griffin, “Intrapreneur is an extrepreneurial person employed by a corporation and encouraged to be innovative and creative, a person with entrepreneurial characteristics who is employed within a large corporation, moreover, intrapreneurs are usually found in enterprises that encourage experimentation, tolerate failure, recognize success and share the wealth.
Differences between Entrepreneuer and Intrapreneur.
The basic differences are:
1.DependencyAn entrepreneur is independent in his operationsBut an intrapreneur is dependent on the entrepreneur i.e., the owner. 2.Raisingof fundsAn entrepreneur himself raises funds required for the enterprise.Funds are not raised by the entrepreneur only operate it. 3.RiskEntrepreneur bears the risk involved in the business.An intrapreneur does not fully bear the risk involved in the enterprise. 4.OperationsAn entrepreneur operates from outside.An intrapreneur operates from within the organization itself.
Characteristics attributed to entrepreneur
An entrepreneur’s characteristics attributed are following:- 1.Entrepreneurs are in committed, determine and perseverance. 2.Drive to achieve- Entrepreneur play challenging role to achieve something new. 3.Opportunity orientation- A successful entrepreneur is opportunity hunger, his focus is on opportunity rather than resource structure and strategy. 4.Initiative and Responsibility- An entrepreneur is a person who always take new right initiative and retain greater responsibility of business. 5.Seeking Feedback-Entrepreneur always evaluate his or her performance, his employees, and overall his business performance. 6.Internal locus of control-Entrepreneur believes and formulates himself as internal locus of controllable person for success of his business. Type A personality. 7.Tolerance of ambiguity- Entrepreneur tolerates of different unacceptable and ambigus situation as well as tactfully solve it. 8.Calculate risk taking-He is a sound calculator of risk and retain the ability of good judgments and analytical skills. 9.Tolerance of failure- Entrepreneurs use failure as a learning experience. 10.Creativity and innovativeness- He has vast creativity and innovative ideas. 11.Vision-Entrepreneurs know where they want to go. They have a vision and concept of what their firm can be. 12.Independence- The desire for independence s a driving force behind entrepreneurs.
Functions of an Entrepreneur(For entrepreneurship)
Functions of an entrepreneur are two types:-
A) General functions:-
1) Risk taking- without taking risk entrepreneurs cannot take any initiative. Risk involved in every work and effort. 2) Innovation- According to economists, an entrepreneur is a...