Entrepreneurship : Concept and Objective, Entrepreneur, Introduction to entrepreneurship bcom, bba

Summary

This video provides an in-depth explanation of entrepreneurship, starting with its origins from the French word 'entreprendre,' meaning to undertake risks and uncertainties. Key definitions by various economists like Richard Cantillon, Jean-Baptiste Say, and Joseph Schumpeter highlight an entrepreneur's role in combining factors of production to create and market products. The video also discusses the characteristics, functions, and barriers to entrepreneurship, emphasizing innovation, risk-taking, and management. Additionally, it explores the economic impact of entrepreneurs, such as employment generation and regional development, and factors influencing entrepreneurial success or failure.

Takeaways

• 📜 The term 'entrepreneur' is derived from the French word 'entreprendre,' which means to undertake, bear uncertainty, and take responsibility.
• 📚 Richard Cantillon first used the word 'entrepreneur' in his essay 'The Nature of Commerce' in 1755, defining it as someone who buys factors of services at certain prices to combine them into a product and sell it at uncertain prices.
• 💡 Jean-Baptiste Say described an entrepreneur as an economic agent who unites all means of production, combines them to create a product, and sells it, paying rent, wages, and interest from the proceeds.
• 🧠 Joseph A. Schumpeter emphasized that an entrepreneur is an innovator who raises money, collects inputs, organizes talents, provides leadership, and establishes proper order in an organization.
• 🤝 Various authors have different views on entrepreneurship, seeing it as an uncertainty bearer (F.H. Knight), an organizer (Jean-Baptiste Say), or an innovator (Joseph A. Schumpeter).
• 📈 The primary functions of an entrepreneur include idea generation, determining objectives, raising funds, procuring raw materials, machinery, market research, recruitment of manpower, and project implementation.
• 🛠️ Managerial functions performed by entrepreneurs involve planning, organizing, decision-making, management, innovation, risk-bearing, and handling economic uncertainties.
• 🌍 Entrepreneurs play a significant role in economic growth by generating employment, increasing national income, dispersing economic power, balancing regional development, harnessing local resources, and reducing social unrest among youth.
• 🚀 Barriers to entrepreneurship include economic factors (lack of capital, labor, raw materials, market availability), non-economic factors (social norms, psychological factors), and government/political factors (policies, regulations).
• 📊 Success or failure of an entrepreneur depends on factors such as proper business selection, planning, initial capital, market demand determination, product marketing, education and experience, joint initiatives, employment of skilled labor, business location, and quality of management.

Q & A

What is the origin of the word 'entrepreneur'?

The word 'entrepreneur' originates from the French word 'entreprendre,' which means 'to undertake.' It involves taking risks, bearing uncertainty, and taking responsibility.

Who first used the term 'entrepreneur' and in which work?

Richard Cantillon first used the term 'entrepreneur' in his essay 'The Nature of Commerce' in 1755.

How did Richard Cantillon define an entrepreneur?

Richard Cantillon defined an entrepreneur as someone who buys factors of production at certain prices to combine them to produce a product and sell it at uncertain prices.

What is the economic agent perspective of an entrepreneur according to Jean-Baptiste Say?

Jean-Baptiste Say described an entrepreneur as an economic agent who unites all means of production, such as land, labor, and capital, to produce a product and sell it, paying rent, wages, and interest from the proceeds.

How does Joseph Schumpeter define an entrepreneur?

Joseph Schumpeter defines an entrepreneur as an innovator who raises money, collects inputs, organizes talents, provides leadership, and manages an organization in proper order.

What are some common characteristics of entrepreneurs?

Common characteristics of entrepreneurs include being calculated risk-takers, innovators, organizers, uncertainty bearers, creative persons, self-confident, optimistic, decision-makers, action-oriented, visionary, business planners, opportunity seekers, stress-takers, leaders, and venture capitalists.

What are the primary functions of an entrepreneur?

The primary functions of an entrepreneur include idea generation, determining objectives, raising funds, procuring raw materials and machinery, conducting market research, determining the form of enterprise, recruiting manpower, and implementing projects.

What managerial functions do entrepreneurs perform?

Entrepreneurs perform managerial functions such as planning, organizing, decision-making, management, innovation, risk-bearing, and handling economic uncertainties.

What barriers can entrepreneurs face?

Entrepreneurs can face barriers such as economic factors (lack of capital, labor, raw materials, market availability), non-economic factors (social norms, values, family background, education, financial stability, caste, religion), psychological factors (lack of motivation, mental ability, clear perception), and government or political factors (policies, regulations, documentation process).

What role do entrepreneurs play in economic growth?

Entrepreneurs contribute to economic growth by generating employment, increasing national income, dispersing economic power, promoting balanced regional development, harnessing local resources, reducing social unrest among youth, driving innovation, improving living standards, and reducing economic dependency.

What factors determine the success or failure of an entrepreneur?

Factors determining the success or failure of an entrepreneur include the selection of business, proper planning, initial capital, market demand determination, product marketing, education and experience, joint initiatives, employment selection, business location, and quality of management.