Amity Global Business School Entrepreneurship Development ABA – VI Entrepreneurship”Entrepreneurship Is a process of giving birth to an enterprise”. Economist Joseph Schumacher has given a significant contribution in understanding deception of entrepreneurship. According to him, “An entrepreneur Is a person who is willing amendable to convert a new Idea or Invention Into a successful Innovation. ” In the view of Schumacher entrepreneur employs “the gale of creative destruction. Creative destruction can be defines the process of creating new product, business del, or other business innovations practicing the old ones. Thus, new products and technologies developed by entrepreneurs overtime make current products and technologies obsolete. For example, before the advent bimodal phones, pagers were very popular among people, but with the invention of Mephistopheles, pagers became obsolete. Therefore, Schumacher held the argument that characterizations is the main factor behind economic growth and Industry dynamism.
He also held view that entrepreneurship results not only in new Industries, but also In new combinations efficiently existing Inputs. Schumacher exemplified this concept with the Invention of a steaming, which was used to develop a horseless carnage. Further, the horseless carriage washerwomen Into a car. This formation of car from steam engine was not the development of anew technology, but the application of existing technologies in a novel manner. Thus, we can say that entrepreneurship is an act of bearing risks, bringing environmentalists employment, and monopolizing resources.
Entrepreneurs and entrepreneurship play a significant role in the socio- economic development a nation. Entrepreneurs set up enterprises and generate employment for people in tercentenaries. This helps in reducing unemployment, which is the main cause of all socio-economic problems as well as results in increasing the total Income of a country. Moreover,goods and services produced by entrepreneurs, after meeting the domestic demand, arrested to foreign countries to earn foreign exchange. In this way, entrepreneurs play escalating role In the country”s growth and prosperity In terms of production, multimillionaires, and export.
The significance of entrepreneurship is explained in the pollination’s: Raises productivity through technical and other forms of innovation Generates employment opportunities by establishing new enterprises Facilitates the transfer of technology Plays a strategic role in counterclaiming new inventions and products Facilitates the proper utilization of resources Improves the standard of living Plays a crucial role in the restructuring and transforming economy Facilitates a balanced economic development Brings dynamism in industries by launching innovative products and services Creates new markets and facilitates expansion into international markets 2. Entrepreneurship Is the pursuit of market opportunities to produce Innovative goods indicatives. Once the enterprise gets established, the entrepreneurial process becomes effectively recurring progress of opportunities. It becomes the process of allocating scarce resourcefulness’s to pursue the value- adding opportunities. The steps involved in the interchangeableness are the entrepreneurial process in which an individual decides to start his/her own enterprise.
The desire to become entrepreneur may be triggered by any on the following factors: Arising of an innovative idea backed up the ability to start a business Inheriting wealth and skills to establish an enterprise Prevailing problems n current Jobs Willing to become own boss Pursuing own ideas Realizing the need of earning multidimensionality and evaluating the opportunity: Refers the second stage of the interchangeableness. In this process, the entrepreneur recognizes potential opportunities. Sometimes, theses mechanisms, such as entrepreneurship development training programs and superciliousness to promote entrepreneurs, help potential entrepreneurs in identifying deportation’s. The entrepreneurs keep on scanning the environment to gather supplementation for identifying opportunity in the form of a potential product or service. Further,they evaluate and screen the identified opportunity.
The evaluation of the denationalizations helps entrepreneurs in assessing whether the opportunity is realistic and tureens of the opportunity are as per the resources required. Developing a business plan: Involves developing a successful business plan to exploit identified opportunity. Developing a business plan involves setting goals, standards, methods,and techniques of achieving those set goals. A well drafted business plan serves as a road map the entrepreneur to guide and monitor his/her activities towards the set goals. Determining the required resources: Involves determining the resources squired to meet identified opportunity.
In this step, the entrepreneur assesses the available resources and threescore that are essential to convert the identified opportunity into a reality. Thunderstruck needs to be careful while determining the amount and quality of resourcefulness as insufficient or inappropriate resources can hamper the success of the opportunity. Next, he/she needs to acquire the resources required in a timely manner, while focusing morning quality and quantity. Converting the idea to an enterprise: Refers to the most important step of the interchangeableness in which the entrepreneur develops his/her own enterprise to execute the denationalizations. In this step, the entrepreneur brings the set business plan into practice.
He/eagerness the resources that are identified in the previous step. Moreover, he/she takes indoctrinations all internal and external environmental forces, while developing the enterprise. Managing and growing the enterprise: Refers to the final stage of the entrepreneurial process. Once the resources are acquired, the entrepreneur uses them efficiently to carry out the 3. Business plan successfully. He/she also strives to identify and examine operational problems,and solve them. Apart from this, the entrepreneur needs to implement an effective controversy’s to identify and resolve problem areas on time. The growth of the enterprise depends on the selection of an appropriate target market.
The entrepreneur needs to take into account outpour AS, product, price, promotion, and place of marketing, for the growth and development of the enterprise. Intercommunicating to Encyclopedia Americana (1988), “An entrepreneur is a businessman who assumes risk of bringing together the means of production including capital, labor and material undeceives his reward in profit from the market alee of his product”. An entrepreneur takes the risk and organizes resources to opportunities in the market, converts attained action, bears the risk and uncertainties involved, and takes promotional activities to launched enterprise. In addition, they strive for excellence in their field. Some of the functions of entrepreneur are described as follows: 1.
Idea Generation: Implies that an entrepreneur identifies business opportunities, selects the most suitable business opportunity, and converts that opportunity/idea into a successful business venture. 2. Promotion: Indicates that n today’s time the activities of entrepreneurs are not only limited to establish an enterprise. Nowadays, entrepreneurs are also involved in various other activities, such as promoting for setting up a new enterprise, attracting the investors, expanding the existing enterprise, and combining two or more enterprises. As a promoter, an entrepreneur conducts feasibility studies, decides the form of organization, assembles the required resources, such as capital and human resource, and shapes up the enterprise. 3.
Risk and Uncertainty Bearing: Implies that an enterprise needs to bear risks involved in establishing a new enterprise or starting a ewe business venture. He/she should be ready to bear the losses that may arise because of unforeseen situations in future. He/she does not hesitate in doing new things and adopting new methods of production. 4. Arranging Finance: Indicates that entrepreneurs arrange finance for setting up the enterprise. An entrepreneur is an individual, who provides initial capital to start the venture and arranges additional funds required to carry on activities and expand the business. 5. Staffing: Signifies that an entrepreneur needs to employ individuals with the required skill-sets for operating in the different functions of the organizations 4.
Entrepreneurial leaders and Manager Differences between Entrepreneurial Leaders and Managers Entrepreneurial Leaders Manageresses of Differentiationposition They are their own bosses They are salaried employer’s Bearer They are the owner of They are the employees of enterprises; therefore, the organization and need bear all the risks and the not bear any risk uncertainties involved in the objectiveness’s Their objective is to Their objective is to introduce innovations and supervise and create act as change agents routines as well as implement entrepreneur’s plans and displays ND Rewards Their income is not fixed They get fixed salaries and and depends on the rewards for performing performance of the well entrepreneurship and Failures They believe in They put efforts to avoid experimenting new ideas; mistakes therefore, may experience faults and failure. They also believe to learn from their failures. Decision Making They take own decisions They execute the decision of the owner 5.
Entrepreneur and Interconnectedness’s between Entrepreneurs and Entrepreneurial of Differentiation Entrepreneurs Entrepreneurial of Activity They work inside as well They are bound to as outside the enterprise perform within he enterprises An entrepreneur An entrepreneur adopts generates ideas the idea generated by an entrepreneur and makes it potentiometer An entrepreneur employs An entrepreneur are paid entrepreneur and pays for using their creative them in exchange of their thinking and services implementing the dissidents of Responsibility An entrepreneur works An entrepreneur works overtime to run his/her overtime helping to run own business someone’s else business for the enterprise’s afterwards The rewards of An entrepreneur is a entrepreneurs depend on person compensation is fixed