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

DWIVEDI GUIDANCE

20 Nov 202319:14

Summary

TLDRThis 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.

Outlines

00:00

📚 Understanding the Origin and Definition of an Entrepreneur

The term 'entrepreneur' originates from the French word 'entreprendre,' meaning 'to undertake.' Richard Cantillon first used it in his 1755 essay 'The Nature of Commerce,' defining an entrepreneur as someone who buys factors of production at certain prices to produce a product and sell it at uncertain prices. Jean-Baptiste Say described an entrepreneur as an economic agent who unites all means of production to create a product, sell it, and pay rent, wages, and interest from the proceeds, with the remainder being profit. Entrepreneurs may not always own all production means but organize them to create and sell products in the market.

05:02

💡 Characteristics and Functions of Entrepreneurs

Entrepreneurs exhibit traits such as calculated risk-taking, innovation, organization, and leadership. They bear uncertainties, create new products, and improve production. Key functions include idea generation, determining objectives, raising funds, procuring raw materials, and managing production. Different authors emphasize various aspects: Marshall focuses on organization and management, Jean-Baptiste Say and Kirtan highlight risk-taking, Professor B.R. Knight and Schumpeter stress innovation and control, and Arthur H. Cole emphasizes decision-making. Entrepreneurs also diversify production, expand enterprises, and maintain employer-employee relations.

10:03

🔧 Tackling Entrepreneurial Challenges

Entrepreneurs face various challenges, including labor issues and coordination with external agencies. The distinction between 'entrepreneur' (a person) and 'entrepreneurship' (a purposeful activity) is crucial. Entrepreneurship involves activities like production and distribution of economic goods and services, creating enterprises, and performing actions to successfully run them. Key barriers include economic factors (lack of capital, labor, raw materials, and market availability) and non-economic factors (social, psychological, and political issues). Entrepreneurs must navigate these to perform their activities effectively.

15:04

🌍 The Role of Entrepreneurs in Economic Growth

Entrepreneurs significantly contribute to economic growth by generating employment, increasing national income, and dispersing economic power. They balance regional development, harness local resources, and reduce social tension among youth by providing alternatives to traditional employment. Innovations in enterprises improve living standards and reduce economic dependency. Factors influencing entrepreneurial success or failure include business selection, proper planning, initial capital, market demand, product marketing, education, experience, joint initiatives, employee recruitment, business location, and management quality. Effective management is crucial for the success of any enterprise.

Mindmap

Keywords

💡Entrepreneur

An entrepreneur is a person who undertakes the risk of starting a new business venture. They organize the factors of production—land, labor, and capital—to create a product or service and sell it in the market. The concept of an entrepreneur involves innovation, risk-taking, and economic uncertainty. For example, Richard Cantillon defined an entrepreneur as someone who buys factors of production at certain prices and combines them to produce a product to sell at uncertain prices.

💡Richard Cantillon

Richard Cantillon was an 18th-century economist who first used the term 'entrepreneur' in his work 'The Nature of Commerce' in 1755. He defined an entrepreneur as an individual who bears the risk and uncertainty of a business venture by combining factors of production to create and sell products. His definition highlights the role of entrepreneurs in dealing with economic uncertainties.

💡Factors of Production

Factors of production refer to the resources used to create goods and services, including land, labor, and capital. Entrepreneurs buy these factors at certain prices, combine them to produce products, and then sell the products in the market. The script emphasizes that managing these resources effectively is a key function of entrepreneurship.

💡Jean-Baptiste Say

Jean-Baptiste Say was an economist who defined an entrepreneur as an economic agent who unites all means of production—land, labor, and capital. According to Say, an entrepreneur combines these resources to produce goods and services, pays rent for land, wages for labor, and interest for capital, and what remains is the entrepreneur's profit. This definition underscores the organizational role of entrepreneurs.

💡Innovation

Innovation in entrepreneurship refers to the process of introducing new ideas, products, or methods. Joseph Schumpeter described entrepreneurs as innovators who raise money, collect inputs, organize talents, and provide leadership to bring their ideas to market. Innovation is crucial for entrepreneurs to stay competitive and meet market demands.

💡Economic Uncertainty

Economic uncertainty involves the unpredictable aspects of business, such as fluctuating market conditions and consumer demand. Entrepreneurs must bear this uncertainty when launching and running their ventures. Richard Cantillon and F.H. Knight emphasized the role of entrepreneurs in handling economic uncertainties to create successful enterprises.

💡Risk-Taking

Risk-taking is a fundamental characteristic of entrepreneurship, involving the willingness to undertake business ventures despite potential losses. Entrepreneurs calculate risks and make informed decisions to pursue opportunities. The script highlights this aspect through various definitions, noting that effective risk management is critical for entrepreneurial success.

💡Economic Agent

An economic agent is an individual or entity that makes economic decisions, such as producing, buying, and selling goods and services. Entrepreneurs act as economic agents by organizing resources, creating products, and driving economic activity. Jean-Baptiste Say's definition portrays entrepreneurs as key economic agents who unite production means to generate profits.

💡Entrepreneurship

Entrepreneurship is the process of starting and running a new business venture, involving activities such as innovation, risk-taking, and resource organization. According to H. Cole, entrepreneurship encompasses the purposeful actions taken by individuals or groups to produce and distribute economic goods and services. This process is essential for economic development and growth.

💡Market Knowledge

Market knowledge refers to an entrepreneur's understanding of market conditions, trends, and consumer behavior. This knowledge is crucial for making informed decisions about product development, marketing strategies, and business operations. Without adequate market knowledge, entrepreneurs may fail to meet consumer demands and face business failures.

Highlights

The term 'entrepreneur' originates from the French word 'entreprendre,' meaning 'to undertake,' implying taking risks and bearing uncertainty.

The word 'entrepreneur' was first used by Richard Cantillon in his essay 'The Nature of Commerce' in 1755.

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

Jean-Baptiste Say described an entrepreneur as an economic agent who unites all means of production, like land, labor, and capital, to produce a product.

An entrepreneur bears uncertainty and is responsible for combining production factors and selling the product.

Joseph Schumpeter defined an entrepreneur as an innovator who raises money, collects inputs, organizes talents, provides leadership, and creates a proper order in the organization.

Entrepreneurs are characterized by their ability to take calculated risks, innovate, organize, bear uncertainty, and be self-confident and optimistic.

Entrepreneurs are also decision-makers, action-oriented, visionary, business planners, opportunity seekers, stress-takers, leaders, and venture capitalists.

Functions of an entrepreneur include idea generation, determining objectives, raising funds, procuring raw materials, conducting market research, and recruiting manpower.

Entrepreneurial functions also involve planning, organizing, decision-making, managing, innovating, and bearing uncertainty.

Additional functions include diversifying production, expanding enterprises, maintaining employer-employee relations, tackling labor problems, and coordinating with outside agencies.

Barriers to entrepreneurship include economic factors like lack of capital, labor, raw materials, and market availability.

Non-economic factors like social norms, values, family background, education, financial stability, caste, religion, and psychological factors also pose barriers.

Government actions and political factors, such as policies, regulations, and documentation processes, can also hinder entrepreneurial activities.

Economic growth roles of entrepreneurs include employment generation, increasing national income, dispersing economic power, balanced regional development, harnessing local resources, reducing youth unrest and social tension, and improving living standards.