Entrepreneurship Notes

WHAT IS ENTREPRENEURSHIP?

Entrepreneurship is the process of creating something new of value by devoting (giving) the necessary time and effort. By accepting and acknowledging the necessary financial, psychological, and social risks, and finally receiving the resulting rewards be it monetary and personal satisfaction and freedom to do what you want.

Process of creating something new and assuming the risks and rewards.

WHO IS AN ENTREPRENEUR?

A person who organizes, manages, and assumes the risks of a business or enterprise. It is derived from Old French, from entreprendre, meaning “to undertake”. Entrepreneurs identify a need—any need—and fill it. An entrepreneur is an innovator or developer who recognizes and seizes opportunities; converts those opportunities into workable/marketable ideas; adds value through time, effort, money, or skills; assumes the risks of the competitive marketplace to implement these ideas; and realizes the rewards from these efforts.

What is the Role of an Entrepreneur in Economic Development?

(1) Promotes Incremental Wealth:

Entrepreneurs promote incremental wealth by mobilizing the idle savings of public. They employ their own as well as borrowed resources for setting up their enterprises. Such type of entrepreneurial activities leads to value addition and creation of wealth, which is very essential for the industrial and economic development of the country.

(2) Creates Large-Scale Employment Opportunities:

Entrepreneurs provide immediate large-scale employment to the unemployed which is a chronic problem of underdeveloped nations. With the setting up of more and more units by entrepreneurs, both on small and large-scale numerous job opportunities are created for others, the country which in turn clears the path towards economic development of the nation.

(3) Promotes Balanced Regional Development:

Entrepreneurs help to remove regional disparities through setting up of industries in less developed and backward areas. The...