CHAUDHARY CHARAN

SINGH HARYANA
AGRICULTURAL UNIVERSITY

AGRO.ECONOMICS
SUBMITTED TO –DR. K.K KUNDU
 ENTERPRENEURSHIP
 The word entrepreneurship is derived from French verb
ENTERPRENDRE which means to undertake.
 The Frenchmen who organized and led military
expenditure in the early 16th century were referred as
entrepreneur.
 Around 1700 A.D the term entrepreneur was used for
architecture and contractors of public work.

Definition of entrepreneur
Acc. To oxford dictionary
One who undertakes an enterprise , especially a contracting as
intermediatory between capital and labour.
According to Peter P. Druker
Innovation is the specific tool of entrepreneurs the means by
which they exploitchanges or an opportunity for different
business or different service.
CHARACTERSTICS OF AN ENTERPRENEURS

 MENTAL ABILITY – entrepreneur must have creative

thinking and must be able to analyze problems and
situations. He should be able to anticipate changes.
  BUSSINESS SECRECY – He should guard his business secrets
from his competitors
 CLEAR OBJECTIVES – He must have clear objectives as to
exact nature of business or the nature of goods to be
produced.
 HUMAN RELATIONS –He should maintain good relations
with the customers , employees etc. to maintain good
relationship.He should have emotional stability , personnel
relations ,tactfulness and consideration.
 COMMUNICATION ABILITY –He should have good
communication skills means both the sender and receiver
should understand each other message.
 TECHNICAL KNOWLEDGE- He should have sufficient
technical knowledge
Personnel Characterstics of an enterpreneure
1 Longterm involvement
2 Motivator
3 Moderate risk taker
4 Initiative high energy level
5 Goal setter
6 Self confident

DEFINITION OF AN ENTERPRENEUR
Acc. To COLE
Enterpreneureship is the purposeful activity of an individual or
group of associated individuals, undertaken to initiate
mountain or aggrandize profit by production or distribution of
economic goods and services
Acc. To Peter .P .Druker
Entrepreneurship is neither a science nor an art. It is a practice.
It is knowledge base .knowledge in entrepreneurship is means
to an end i.e by the practice.

THEORIES OF ENTERPRENEURSHIP
THE ECONOMIST’S VIEW
1. According to the economists entrepreneurship and
economics market will take place in those situations where
particular economic conditions are not favourable .
2. According to J.B say rationally combining the forces of
product into men producing organization in functionof an
enterpreneurer.
3. According to cantillion an enterpreneurer is an uncertainly
bearer buying at a fixed price and selling it an uncertain
price
 4. Entrepreneur connects different markets,he is capable of
gap filling he is input completer and he creates or expands
things
5. Small industry is natural habitat of entrepreneur where is
role is like that of striker who keeps the fire burning.
6. The entrepreneurship development in a particular country
largely depends upon the economic policy,programme and
economic environment of that country.

THE SOCIOLOGISTS VIEWS……..

 It emerges under specific social culture according to
sociologists social sanctions cultural values and role
expectations are respoinsible for emergence of
enterpreneurship .
 Society values are most important determinant of
attitudes and role expectations.
 According to flavia ,the function of enterpreneurer is to
co-ordinate at every stage i.e beginning maintenance and
expansion.
 Every enterpreneurer needs two qualities the are
optimistic outlook and dynamism
 Protest ethnic from the west emerge as new class of
industrialists
1 Samurai from japan
 2 halal momon industrialist in Pakistan
3 christian from lebnan
4 marwaris and pasis from india

THE PSYCHOLOGISTS VIEW

 It is most likely to emerge when a society has sufficient
supply of individuals possessing particular psychological
characterstics.
 It is high need achievement which drives people toward
enterpreneural activities.
 Individual with high achievement motives tend to take
learn interest in situation of high risk, desire for
respoinsibility and desire for task performance.
 Enterpeneur possess three things i.e an institutional
capacity to see things in way which later proves to be true,
a land of effort of will and mind to overcome fixed habits
of thinking . lastly the capacity to overcome social
opposition against doing something together.
 Frank young describes an entrepreneur as a change agent .
 T.V rao describes entrepreneurship as a creative and
innovative response to environment.

MANAGERIAL VIEWS
  The view gives more importance to managerial aspects like
perception of market opportunities and operational skills
as qualities required to carry out an enterprise.
 Entrepreneurship is an outcome of complex and varying
combination of socio economic,psychological and other
factors.

EVALUATION OF ENTERPRENEURSHIP IN
INDIA
The concept of entrepreneur of entrepreneurship includes
basic qualilites of leadership enterprise innovation,vision,
hardwork and profit maximization.
In india 70% of total sales comes from family bussiess e.g tata
make trucks , Mahindra make jeaps etc.
Entrepreneur , intrapreneuir or manager of 90s have modeled
in psycho-philosphy not I Indian context and values.

FACTORS AFFECTING ENTERPRENEURAIAL

GROWTH
1. ECONOMIC FACTORS-
Lack of adequate overhead facilities ,profitable innovations
requires basic facilities like transportation, communication
,power,supply etc. they reduce cost of production and increase
profit.
non availability of capital- inventions atre capital oriented in
less developed nations most capuital equipment have to be
imported which involves foreign exchange which act as
different problem.
Great risk-risk is high in case of less developedcountries as
there is lackn of reliable information ,markets for foods and
services is small etc…
Non availability of labour and skills-though there is abundant
labour supply there is generally scarcity of skills at all levels.
2. SOCIAL FACTORS
A society that is rational in decision making would have
favourable for decision making .education research and training
is given less importance in less developed countries ,therefore
there is very little vertical mobility of labour.
3. CULTURAL FACTORS
If the culture is economically or monetarily oriented
entrepreneurship would be applauded and praised .in less
developed countries people are not economically motivated
.people have ample opportunities for attaining social distinction
by non economic pursuits.
 4. PERSONALITY FACTORS
In less developed countries entrepreneurship is looked upon
with suspicion .public opinion is less developed nations sees in
the entrepreneur only a profit makes and exploits.

WHO IS ENTERPRENEUR?
A person who brings in change through
innovation for the maximum social good.
DEFINITION OF ENTERPRENEUR – joseph A.
Schumpeter defines entrepreneur for an advanced
economy as:
An individual who introduces something new the
economy
i.e the method of production or process [new]
 a product
 raw material
 new market

DEFINITION OF ENTERPRENEUR
 In case of developing economy
one who starts an industry old or new , undertakes risks and
uncertainities
 performance managerial functions.

PETER DRUCKERS SAYS :

An entrepreneur needs to search for innovation at risk
innovation must be build on strength innovation has to be
market focused.

DIAGRAMATIC RELATION
RISK TAKING INNOVATION

VALUES ETHICS
OPERATIONAL SKILLS

VISION ORGANISATIONAL
SKILLS
CONCEPT OF ENTERPRENEUR
History
  Marco polo attempted to establish trade routes
for east
 Signed contracts of money with merchants
Middle ages
 The term entrepreneur was used to describe
individuals who managed resources provided by
the government e.g castels cathedrals.
17th century
 Period where risk was attached to entrepreneur
ship process the process entered into
contractual agreement with government.
 The term ‘entrepreneuwas applied to business
by French economist ‘centillion’.
CANTILLION THEORY
Catellion designed the term .dealer who purchases means of
production [4Ms] and combines them into marketable profits.

LATEST CONCEPT OF ENTERPRENEUR

 Perceives opportunities for profitable investments.
 Arranges capitak
  Provides personnel guarantees.
 Supplies technical knowtions

DIFFERENCE BETWEEN entrepreneur AND

ENTERPRENEURSHIP
ENTERPRENEUR entrepreneurship
person process
visualiser vision
creater creation
organizer organisation
innovator innovation
planner planning
leader leadership

CHARACTERSTICS OF ENTERPRENEURER
 Risk taker
 Self confident
 Optimistic
 Deal for achievement
 Hard work
 Emotional stability
 Patience
  Communication
 clear objectives
 need for independence
 creative
 imaginary
 business secrecy
 good organizer

FACTORS AFFECTING ENTREPRENEURSHIP

Family tradition,social, cultural, political,
psychosocial , ecomical policies.
NEED BASED ENTERPRENEURSHIP
A person who starts his venture with the thought process of
surviving i.e to earn his living e.g vendors in train.
Opportunities based entrepreneurship
A person who does start his venturewith the thought process of
expansion and a person with zeal to start with his own
enterprise , to create a niche forb himself.

IST GENERATION ENTERPRISE

A person who does not have backing which is available from
the family and struggles to achieve own e.g dhirubhai ambani ,
JRD tata steel
2ND GENERATION ENTERPRISE
an enterpreneur who has a family tradition of bussiness and
joins to be the part of iot for e.g mukesh and anil ambani.

Enterpreneuraial functions…

RAISING FINANCE
DECIDING PLANNING
PROJECTS PRO.

ENTERP EARNING
INNOVATION PROFITS
RENEURER

MANAGING

RISK TAKER

THEORIES OF ENTERPRENEURSHIP
 Identified by mark cassin
 DeMand for enterpreneurshipis limited
 It is available in dentifying than becomes difficult.

LIEBSTINE X-EFFICIENCY THEORY.

  DeMand for enterpreneurshipis astems from need to
adjust change scarcity of requivi site qualitieHAS BEEN
APPLIED TO ANALYSE THE ROLE OF ENTERPRENEUR
 X- efficiency is degree of inefficiency in use of resources
 theory identyfyimg TWO MAIN ROLES
IMPROVED FLOW OF information gap filling

DYNAMIC ENTERPRENEURSHIP THEORY

 Advocated by Schumpeter
 Considers entrepreneurship as catalyst that distribute to
stationary circukar flow of economy
 Initiate and sustains process of development i.e new
combination

HARVERD SCHOOL THEORY

 It initiate , maintain or develops a profit oriented business
States entrepreneurship as purposeful activity
 Can be achieved by balancing internal factors with the
external levels.

THEORY OF ACHIEVEMENT
MC. CLELLAND identified characterstics of entrepreneurship
doing new things in a new way
decision making under uncertainity.

THEORY OF PROFIT
Knight identifies entrepreneurships as
Recipient of pure profit
Pure profit is bearing the cost of uncertainity.
For which self confidence is important.

THEORY OF CHANGE :
young conductedthe theamatic appreciationt test
[tat] concluded that :
 group becomes reactive when group
experiences low status.
 Defined access to important social networks.
 Group has better institutional resources.
THEORY OF PRICE
Kirzener believes adjustment of price as main role of
entrepreneurer . alertness to price is im portant

THEORY OF MARKET EQUILIBIRIUM

  Hayenks theory states that ‘world where there
is continous process of discovery .
 market is a place which help people to
communicate,discover and learn discoveries.
 Moving towards sale of equilibirium[DD &SS]
THEORY OF ENTERP.SUPPLY
Advocated by john kunkel
 States that individual activities are related to
both past and present .
 Influenced by social structures and physical
conditions.
 Conditioning procedure can be accidental and
deliberate.
THEORY OF PERSONNEL RESOURCEFULNESS
 Personnel resourcefulness means ‘belief in one ‘s own
capacity
 Initiating process self regulation
 Mediated internal feelings and emotions advocated by
kanungo.

THEORY OF CULTURAL VALUES

THOMAS COCHRA advocated this theory .
Focussed on attitude ,role expectation and operational
requirement.

CLASSIFICATION OF ENTERPRENEURERS
BUSSINESS ENTERPRENEURERS-individual who conceive
an idea [product and service] create business.
Taps production and marketing , big or small

TRADING ENTERPRENEURERS- person who is not

considered with manufacturing but only undertakestrading
activities .
Identeies markets ,stimulate demand for products line among
buyers.

INDUSTRIAL ENTERPRENEURERS- essentially a

manufacturer
Identifies the need of customer and tailors of product.
Converts economic resources and technological resources into
profitable ventures e .g electronic industry, textile units .
CORPORATE ENERPRENEURERES- A person who
demonstrates his innovative skills in organizing and managing
corporate undertakings
Business organisationregistered under companies act/trust act.

AGRICULTURAL ENTERPRENEURERS- one who

undertakes agricultural activities and marketing of crops,
fertilizersetc. E.g agri tourism

TECHNICAL ENTERPRENEURERS- basically addressed

craftman as they concentrate on production and less or
negligible on sales.

ENTERPRENEURERS AND MOTIVATION

PURE ENTERPRENEURERS
individual motivated by psychological and economic reward
takes activities for personnel satisfaction in work ,ego and
status

INDUCED ENTERPRENEURERS
one who is induced to takeup enterpreneurial tasks
assistance provided through incentives ,concessions etc. e.g
women enterpreneurers
MOTIVATED ENTERPRENEURERS enterpreneurers
motivated by desire of self fulfilment

e.g to try what one feels is right e.g kiran majumdar sholi

SPONTANEUS ENTERPRENEURERS
enterpreneurers who start their bussiness by natural talent
personnel activities

ENTERPRENEURIAL ENVIRONMENT
atmosphere
Political
Quality of leadership
Economic- policies ,labour, trade subsidies
Social- social harmony ,risk culture
Technological- risk, efficiency , profitability
Legal and cultural – values ,aspirations,rules and
regulations.
Institutions in aid of enterpreneurers
EDIT: entrepreneurship development institute of inia set up in
1982 at ahemdabad
One of the resource organization at national level established
by central government.

NIFSBUD- national institute of enterprenurial and small

business development.
Located at new delhi
Co-ordinates activities related to enterprenurial and small
business development.

RED- rural enterprenurial development institute set up in

ranchi in 1983
Aims setting up new ventures in rural areas.

MDI- management development institute institute in india set

up in gurugram [Haryana].
Act as management training, research and consultancy.
Prime goal is to improve the managerial effective ness

Conducts for executives a no. of developmental

programmes
Objective of institute is to accelerate the process of
entrepreneurial development .
To evolve standard process of selecting training to
run enterprise
To provide vital to the trainers
STEPS- science and technology entrepreneurship
parles BITS, NECP, TREC
Maulana aazad college of social service ranchi
involved with tribals.
Group of young tribals and youth formed local
organizations for promotion of socio economic and
health schemes.
IMPORTANCE OF ENTERPRENEURSHIP IN
DEVELOPMENT OF ECONOMY
The nature of developing economy is suite different
from a developed economy . the developing
economy can be agricultural country moving
towards the industrialization or it may be one
where in the industry may be in its infancy lacking
advance technology.
Modern era is an era of changes.the whole world is
becoming a village due to industrial revolution and
lost developing communication technology. The
globalization of induste=ry and commerce is
bringing a vast change in various aspects of life,.
Economic development of a country is an outcome
of purposefulhuman activity.
Economic development is highly dynamic process
characterized by pattern of demand shifts ,new
products are needed , appear for production of
goods within a country .
A developing country needs entrepreneurs who are
competent to perceive new opportunuities and are
willing to incure the necessary risk in exploiting
them.
A developing economy is required to be brought out
of vicious circle of low income and poverty.
Entrepreneur can break this vicious circle.
Enterpreneurers and helping governments can
change a developing economy in developed
economy.
MOTIVATION
Motivation is ab act of stimulating someone or
oneself to get desired course of action ,to push thre
right button to get the desired results.
MOTIVATING FACTORS
1 educational background
2 occupational experience family background
3 desire to work independently in manufacturing
line
4 assistence from financial institution
5 availability of technology
6 other factors.
THANK YOU………….