Chapter-1 Entrepreneurship Development Introduction
UNIT 1: INTRODUCTION TO ENTREPRENEURSHIP 12 Hrs.
Introduction – Meaning & Definition of Entrepreneurship, Entrepreneur &
Enterprise ; Differences between Entrepreneurship, Entrepreneur &
Enterprise; Functions of Entrepreneur; Role of Entrepreneur for Economic
Development; Factors influencing Entrepreneurship; Pros and Cons of being
an Entrepreneur; Differences between Manager and Entrepreneur; Qualities
of an Entrepreneur; Types of Entrepreneurs. Entrepreneurship Development
– Need
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.
Robert D.Hisrich, M. Peters & D.A Shepherd
Who is an Entrepreneur?
He or she is an individual who actively form or lead their own business and
nurture them for growth and prosperity.
UiTM Entrepreneurship Study Group
A person who creates and manages change by the recognition of
opportunities (needs, wants, opportunities, problems, and challenges) and
develops people and manages resources to take advantage of the resources
to take the opportunity and creates a venture (profitable business).
Eston Kimani, MIT
,Role of entrepreneurship in economic development
1. Wealth Creation and Sharing: By establishing the business entity,
entrepreneurs invest their own resources and attract capital (in the form of
debt, equity, etc.) from investors, lenders and the public. This mobilizes public
wealth and allows people to benefit from the success of entrepreneurs and
growing businesses. This kind of pooled capital that results in wealth creation
and distribution is one of the basic imperatives and goals of economic
2. Create Jobs: Entrepreneurs are by nature and definition job creators, as
opposed to job seekers. The simple translation is that when you become an
entrepreneur, there is one less job seeker in the economy, and then you
provide employment for multiple other job seekers. This kind of job creation
by new and existing businesses is again is one of the basic goals of economic
development.
3. Balanced Regional Development: Entrepreneurs setting up new businesses
and industrial units help with regional development by locating in less
developed and backward areas. The growth of industries and business in these
areas leads to infrastructure improvements like better roads and rail links,
airports, stable electricity and water supply, schools, hospitals, shopping malls
and other public and private services that would not otherwise be available.
4. GDP and Per Capita Income: India’s MSME sector, comprised of 36 million
units that provide employment for more than 80 million people, now accounts
for over 37% of the country’s GDP. Each new addition to these 36 million units
makes use of even more resources like land, labor and capital to develop
products and services that add to the national income, national product and
per capita income of the country. This growth in GDP and per capita income is
again one of the essential goals of economic development.
5. Standard of Living: Increase in the standard of living of people in a
community is yet another key goal of economic development. Entrepreneurs
again play a key role in increasing the standard of living in a community. They
do this not just by creating jobs, but also by developing and adopting
, innovations that lead to improvements in the quality of life of their employees,
customers, and other stakeholders in the community.
6. Exports: Any growing business will eventually want to get started with
exports to expand their business to foreign markets. This is an important
ingredient of economic development since it provides access to bigger
markets, and leads to currency inflows and access to the latest cutting-edge
technologies and processes being used in more developed foreign markets.
Another key benefit is that this expansion that leads to more stable business
revenue during economic downturns in the local economy.
7. Community Development: Economic development doesn’t always translate
into community development. Community development requires
infrastructure for education and training, healthcare, and other public services.
For example, you need highly educated and skilled workers in a community to
attract new businesses. If there are educational institutions, technical training
schools and internship opportunities, that will help build the pool of educated
and skilled workers.
Entrepreneur vs Entrepreneurship
• If an individual wish to set up a company of one Million $, then this
vision is entrepreneurship whereas the individual who visualizes it is an
entrepreneur.
• Entrepreneur innovates/develop some unique products or services or
technology whereas the processes/ measures to innovate or discover
that products or services are Entrepreneurship.
• An entrepreneur is a leader, motivator or director who leads the
organisation towards its vision whereas the tactics or practices through
which an entrepreneur leads the organisation is entrepreneurship.
• Entrepreneurs are risk-takers who always ready to take risks to make
their company profitable and to serve society, on the other hand, there
are several segments in which an entrepreneur has to bear risks, hence
these risk-taking practices are Entrepreneurship.
• An entrepreneur is a coordinator who establishes coordination among
different essential requirements of the organisation whereas the process
of coordination is entrepreneurship.
UNIT 1: INTRODUCTION TO ENTREPRENEURSHIP 12 Hrs.
Introduction – Meaning & Definition of Entrepreneurship, Entrepreneur &
Enterprise ; Differences between Entrepreneurship, Entrepreneur &
Enterprise; Functions of Entrepreneur; Role of Entrepreneur for Economic
Development; Factors influencing Entrepreneurship; Pros and Cons of being
an Entrepreneur; Differences between Manager and Entrepreneur; Qualities
of an Entrepreneur; Types of Entrepreneurs. Entrepreneurship Development
– Need
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.
Robert D.Hisrich, M. Peters & D.A Shepherd
Who is an Entrepreneur?
He or she is an individual who actively form or lead their own business and
nurture them for growth and prosperity.
UiTM Entrepreneurship Study Group
A person who creates and manages change by the recognition of
opportunities (needs, wants, opportunities, problems, and challenges) and
develops people and manages resources to take advantage of the resources
to take the opportunity and creates a venture (profitable business).
Eston Kimani, MIT
,Role of entrepreneurship in economic development
1. Wealth Creation and Sharing: By establishing the business entity,
entrepreneurs invest their own resources and attract capital (in the form of
debt, equity, etc.) from investors, lenders and the public. This mobilizes public
wealth and allows people to benefit from the success of entrepreneurs and
growing businesses. This kind of pooled capital that results in wealth creation
and distribution is one of the basic imperatives and goals of economic
2. Create Jobs: Entrepreneurs are by nature and definition job creators, as
opposed to job seekers. The simple translation is that when you become an
entrepreneur, there is one less job seeker in the economy, and then you
provide employment for multiple other job seekers. This kind of job creation
by new and existing businesses is again is one of the basic goals of economic
development.
3. Balanced Regional Development: Entrepreneurs setting up new businesses
and industrial units help with regional development by locating in less
developed and backward areas. The growth of industries and business in these
areas leads to infrastructure improvements like better roads and rail links,
airports, stable electricity and water supply, schools, hospitals, shopping malls
and other public and private services that would not otherwise be available.
4. GDP and Per Capita Income: India’s MSME sector, comprised of 36 million
units that provide employment for more than 80 million people, now accounts
for over 37% of the country’s GDP. Each new addition to these 36 million units
makes use of even more resources like land, labor and capital to develop
products and services that add to the national income, national product and
per capita income of the country. This growth in GDP and per capita income is
again one of the essential goals of economic development.
5. Standard of Living: Increase in the standard of living of people in a
community is yet another key goal of economic development. Entrepreneurs
again play a key role in increasing the standard of living in a community. They
do this not just by creating jobs, but also by developing and adopting
, innovations that lead to improvements in the quality of life of their employees,
customers, and other stakeholders in the community.
6. Exports: Any growing business will eventually want to get started with
exports to expand their business to foreign markets. This is an important
ingredient of economic development since it provides access to bigger
markets, and leads to currency inflows and access to the latest cutting-edge
technologies and processes being used in more developed foreign markets.
Another key benefit is that this expansion that leads to more stable business
revenue during economic downturns in the local economy.
7. Community Development: Economic development doesn’t always translate
into community development. Community development requires
infrastructure for education and training, healthcare, and other public services.
For example, you need highly educated and skilled workers in a community to
attract new businesses. If there are educational institutions, technical training
schools and internship opportunities, that will help build the pool of educated
and skilled workers.
Entrepreneur vs Entrepreneurship
• If an individual wish to set up a company of one Million $, then this
vision is entrepreneurship whereas the individual who visualizes it is an
entrepreneur.
• Entrepreneur innovates/develop some unique products or services or
technology whereas the processes/ measures to innovate or discover
that products or services are Entrepreneurship.
• An entrepreneur is a leader, motivator or director who leads the
organisation towards its vision whereas the tactics or practices through
which an entrepreneur leads the organisation is entrepreneurship.
• Entrepreneurs are risk-takers who always ready to take risks to make
their company profitable and to serve society, on the other hand, there
are several segments in which an entrepreneur has to bear risks, hence
these risk-taking practices are Entrepreneurship.
• An entrepreneur is a coordinator who establishes coordination among
different essential requirements of the organisation whereas the process
of coordination is entrepreneurship.
