Who in entrepreneur? An entrepreneur is an enterprising individual who builds capital through risk and/or initiative.

[1][note 1] The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon.This term first appeared in the French Dictionary "Dictionnaire Universal de Commerce" of Jacques des Bruslons published in 1723. Entrepreneur in English is a term applied to a person who is willing to help launch a new venture or enterprise and accept full responsibility for the outcome. Over time, scholars have defined the term in different ways. Here are some of their definitions. 1725: Richard Cantillon: An entrepreneur is a person who pays a certain price for a product to resell it at an uncertain price, thereby making decisions about obtaining and using the resources while consequently admitting the risk of enterprise. 1803: J.B. Say: An entrepreneur is an economic agent who unites all means of production- land of one, the labour of another and the capital of yet another and thus produces a product. By selling the product in the market he pays rent of land, wages to labour, interest on capital and what remains is his profit. He shifts economic resources out of an area of lower and into an area of higher productivity and greater yield. 6 1934: Schumpeter: According to him entrepreneurs are innovators who use a process of shattering the status quo of the existing products and services, to set up new products, new services. 1961: David McClleland: An entrepreneur is a person with a high need for achievement [N-Ach]. He is energetic and a moderate risk taker. 1964: Peter Drucker: An entrepreneur searches for change, responds to it and exploits opportunities. Innovation is a specific tool of an entrepreneur hence an effective entrepreneur converts a source into a resource. 1971: Kilby: Emphasizes the role of an imitator entrepreneur who does not innovate but imitates technologies innovated by others. Are very important in developing economies. 1975: Albert Shapero: Entrepreneurs take initiative, accept risk of failure and have an internal locus of control. 1983: G. Pinchot: Intrapreneur is an entrepreneur within an already established organization.[note
2]

Schumpeter tied entrepreneurship to the creation of five basic "new combinations." 1. 2. 3. 4. 5. Introduction of a new good Introduction of a new method of production The opening of a new market The conquest of a new source of supply The carrying out of a new organization of industry

Personality of entrepreneurshiphis qualities.. . Ambition. Most people believe they are ambitious, I think. But there is ambitious, and then there is 70-hour-a-week obsessive, driven, hungry ambitious. Can you make it if you are just kind of ambitious? Probably, in some cases. But most successful entrepreneurs I know paid some serious dues. They did not want to be successful, they needed to be successful.

2. Creativity. Im not talking about painting a picture or writing a love song. Im talking about coming up with innovative ideas about marketing, management or finance (preferably not too creative in finance). Not all business schools do enough to encourage creativity, but it can really bloom in a business and have a huge impact on its success. 3. Tenacity. I did not know this when I started, but tenacity is critical to starting and staying in business. Rookie entrepreneurs make many mistakes, and they have to be fixed. Plus, bad things and bad economies happen, and they have to be survived. Being stubborn can be a terrible attribute to have in school but a great asset in business. 4. Risk tolerance. It is almost impossible to go into business without taking risk, and it doesnt necessarily get better along the way. Bigger buildings, more employees, more expensive computer systems, the list goes on and on. Some people cant handle having a credit card balance, and other people can borrow big money without hesitation. Some people obsess about everything that can go wrong, some people dont think about it or are confident they can deal with whatever happens. Nature or nurture? Dont know. Doesnt really matter. What does matter is that you know your own tolerance. Again, this is not tested in school. 5. Intuition. Some people are just better at seeing what is coming down the road and coming up with the right answers to vague questions. Think Steve Jobs. Even just a little bit of Steve Jobs can go a long way. 6. Personality. You remember the person who was always the life of the party in college but almost didnt graduate? That person might be a successful entrepreneur (or might be living in a van down by the river). The meek may inherit the earth, but they are probably not going to be entrepreneurs. For an entrepreneur, an optimistic personality is a gift and an occupational hazard. Creative - An entrepreneur needs to be creative and innovative. His/her ability to create something new, or to modify something old into something useful will be very crucial in the world of entrepreneurship. The main point here is, be creative to provide value to the customer. Good leader - A successful entrepreneur needs to be a good leader. He/she needs to know how to handle the staff as well as the business/products. A good employment policy to retain the companys best people might be the entrepreneurs only advantage over his/her competitors. Good communicator The ability to deliver the right idea across in a right way is always an important skill to have, not only to an entrepreneur but to other people as well. Being a good communicator will help the entrepreneur in sales/marketing, promoting teamwork, effective discussion with the staff, etc. Balanced life Being an entrepreneur means leading a very busy life. You will most probably be very occupied with your business, your employees, your customers, etc.but you should never ever abandon your personal life your family and friends. Your family and friends will always be there to support you when your business is not in a good condition. Therefore, dont turn away from them.neither should you turn away from your business. Strike a balance.

Hardworking - Hardworking is the next attribute an entrepreneur should have. An entrepreneur needs to work hard to improve himself/herself constantly, to come out with new ideas, to try many different things, etc. Persistent - Persistent is the next nature of a successful entrepreneur. An entrepreneur should always have the never-say-die attitude. Failing once or twice, or even 99 times (like what Thomas Alva Edison did) is no big deal. The main thing is to keep carry on until youve succeeded.

Some stylish quality of Entrepreneur DNA I will be posting a series on what makes an entrepreneur. There will be 11 posts in this series. Click on the links below to read any of the posts. 1. Tenacity the most important attribute of an entrepreneur is never being willing to give up. 2. Street Smarts getting out and understanding customers is far more important than book smarts or computer research. 3. Ability to Pivot its not good enough to be tenacious and smart. You also need to be sure you have a great product/market fit and that it is a big enough market to make money. The best entrepreneurs fine tune their product and their business model until they find this groove. 4. Resiliency being an entrepreneur is sexy for those who havent done it. In reality its gritty, tough work where you will be filled with self doubt. Entrepreneurs are survivors. 5. Inspiration - Tenacity + street smarts is not enough without inspiration. You need to lead teams and convince others to move mountains when by all means they shouldnt believe they can. 6. Perspiration - We all know people who can stand up at a conference and deliver a rousing speech or who sound awesome in front of customers. But it takes more than inspiration to build a successful business. It takes perspiration also. 7. Willingness to Accept Risk Im not talking about crazy risks, but entrepreneurs are people who are willing to start a business on a leap of faith. They dont wait on the sidelines forever doing side projects until the day when theyre ready to start a company. If you arent willing to take a shot by going full time on your startup it tells investors you arent confident enough in the idea or in yourself. 8. Attention to Detail If youre going to lead an early stage business you need to be on top of all your details. You need to know your financial model. You need to be involved in the product design. You need to have a details grasp of your sales pipeline. You need to be hand on. 9. Competitiveness - The best entrepreneurs hate losing. Whether in person life or business they play to win. It consumes them. Sharing the market is not enough they want to win every

deal, hire every great employee and sign-up every partner. And they want to do it at the expense of the competition. As Leo Durocher famously said, nice guys finish last. 10. Decisiveness / Gets Things Done Entrepreneurs dont noodle, they do. This is what separates entrepreneurs from big company executives, consultants and investors. Everybody else has the luxury of analysis and Monday-morning quarterbacking. Entrepreneurs are faced with a deluge of daily decisions much of it minutiae. All of it requiring decisions and action. 11. Domain Experience Domain experience is not an absolute requirement. In fact, some people would argue that the uber successful ventures come from people outside the industry willing to challenge the conventional wisdom. But I believe that having domain experience and relationships gives you an unfair advantage. Better that you start with this than from scratch. 12. Integrity I believe that integrity and honesty are very important to most venture capital investors. Unfortunately, I dont believe that they are required to make a lot of money. This post talks about my views on this attribute.

Examples..
Dheeru Bhai Ambani..(But his sons are not) Sunil Mittal Vijay Maallya. Pawan Munjal Shahnaaz hussain Ekta Kapoor Kiran Majumdaar shah

HOW ENTREPRENEURSHIP ECONOMIC DEVELOPMENT

CONTRIBUTE

TO

What is the Role of an Entrepreneur in Economic Development ? CHINMOY KUMAR

The entrepreneur who is a business leader looks for ideas and puts them into effect in fostering economic growth and development. Entrepreneurship is one of the most important input in the economic development of a country. The entrepreneur acts as a trigger head to give spark to economic activities by his entrepreneurial decisions. He plays a pivotal role not only in the development of industrial sector of a country but also in the development of farm and service sector. The major roles played by an entrepreneur in the economic development of an economy is discussed in a systematic and orderly manner as follows.

(1) Promotes Capital Formation:

Entrepreneurs promote capital formation by mobilising the idle savings of public. They employ their own as well as borrowed resources for setting up their enterprises. Such type of entrepreneurial activities lead to value addition and creation of wealth, which is very essential for the industrial and economic development of the country.

(2) Creates Large-Scale Employment Opportunities:

Entrepreneurs provide immediate large-scale employment to the unemployed which is a chronic problem of underdeveloped nations. With the setting up.of more and more units by entrepreneurs, both on small and large-scale numerous job opportunities are created for others. As time passes, these enterprises grow, providing direct and indirect employment opportunities to many more. In this way, entrepreneurs play an effective role in reducing the problem of unemployment in the country which in turn clears the path towards economic development of the nation.

(3) Promotes Balanced Regional Development:

Entrepreneurs help to remove regional disparities through setting up of industries in less developed and backward areas. The growth of industries and business in these areas lead to a large number of public benefits like road transport, health, education, entertainment, etc. Setting up of more industries lead to more development of backward regions and thereby promotes balanced regional development.

(4) Reduces Concentration of Economic Power:

Economic power is the natural outcome of industrial and business activity. Industrial development normally lead to concentration of economic power in the hands of a few individuals

which results in the growth of monopolies. In order to redress this problem a large number of entrepreneurs need to be developed, which will help reduce the concentration of economic power amongst the population.

(5) Wealth Creation and Distribution:

It stimulates equitable redistribution of wealth and income in the interest of the country to more people and geographic areas, thus giving benefit to larger sections of the society. Entrepreneurial activities also generate more activities and give a multiplier effect in the economy.

(6) Increasing Gross National Product and Per Capita Income:

Entrepreneurs are always on the look out for opportunities. They explore and exploit opportunities,, encourage effective resource mobilisation of capital and skill, bring in new products and services and develops markets for growth of the economy. In this way, they help increasing gross national product as well as per capita income of the people in a country. Increase in gross national product and per capita income of the people in a country, is a sign of economic growth.

(6) Improvement in the Standard of Living:

Increase in the standard of living of the people is a characteristic feature of economic development of the country. Entrepreneurs play a key role in increasing the standard of living of the people by adopting latest innovations in the production of wide variety of goods and services in large scale that too at a lower cost. This enables the people to avail better quality goods at lower prices which results in the improvement of their standard of living.

(7) Promotes Country's Export Trade:

Entrepreneurs help in promoting a country's export-trade, which is an important ingredient of economic development. They produce goods and services in large scale for the purpose earning huge amount of foreign exchange from export in order to combat the import dues requirement. Hence import substitution and export promotion ensure economic independence and development.

(8) Induces Backward and Forward Linkages:

Entrepreneurs like to work in an environment of change and try to maximise profits by innovation. When an enterprise is established in accordance with the changing technology, it induces backward and forward linkages which stimulate the process of economic development in the country.

(9) Facilitates Overall Development:

Entrepreneurs act as catalytic agent for change which results in chain reaction. Once an enterprise is established, the process of industrialization is set in motion. This unit will generate demand for various types of units required by it and there will be so many other units which require the output of this unit. This leads to overall development of an area due to increase in demand and setting up of more and more units. In this way, the entrepreneurs multiply their entrepreneurial activities, thus creating an environment of enthusiasm and conveying an impetus for overall development of the area.

Entrepreneurship and Economic Development

Entrepreneurship helps in the process of economic development in the following ways:

1) Employment Generation : Growing unemployment particularly educated unemployment is the problem of the nation. The available employment opportunities can cater only 5 to 10 % of the unemployed. Entrepreneurs generate employment both directly and indirectly. Directly, self employment as an entrepreneur and indirectly by starting many industrial units they offer jobs to millions. Thus entrepreneurship is the best way to fight the evil of unemployment.

2) National Income: National Income consits of the goods and services produced in the country and imported. The goods and services produced are for consumption within the country as well as to meet the demand of exports. The domestic demand increases with increase in population and increase in standard of living. The export demand also increases to meet the needs of growing imports due to

various reasons. An increasing number of entrepreneurers are required to meet this increasing demand for goods and services. Thus entrepreneurship increases the national income.

3) Balanced Regional Development: The growth of Industry and business leads to a lot of Public benefits like transport facilities, health, education, entertainment etc. When the industries are concentrated in selected cities, development gets limited to these cities. A rapid development . When the new entrepreneurers grow at a faster rate, in view of increasing competition in and around cities, they are forced to set up their enterprises in the smaller towns away from big cities. This helps in the development of backward regions.

4) Dispersal of economic power: Industrial development normally may lesd to concentration of economic powers in a few hands. This concentration of power in a few hands has its own evils in the form of monopolies. Developing a large number of entrepreneurers helps in dispersing the economic power amongst the population. Thus it helps in weakening the harmful effects of monopoly.

5) Better standards of living: Entrepreneurers play a vital role in achieving a higher rate of economic growth. Entrepreneurers are able to produce goods at lower cost and supply quality goods at lower price to the community according to their requirements.When the price of of the commodies decreases the consumers get the power to buy more goods for their satisfaction. In this way they can increase the standard of living of the people.

6) Creating innovation: An entrepreneur is a person who always look for changes. apart from combining the factors of production, he also introduces new ideas and new combination of factors. He always try to introduce newer and newer technique of production of goods and services. An entrepreneur brings economic development through innovation.