Emergence of Entrepreneur Class

Entrepreneurial class came into being in 17th century

Invention of Steam Engine resulted in Industrial revolution
(1769). It changed small scale production to large scale
production.
Due to this Industrial revolution, the Agrarian society in Europe
got transformed into Industrial society.
The European society was mainly dominated by Artisans and
Peasants and they witnessed large scale production.
A group of people mainly traders took risk for large scale
production and they were called Entrepreneurs.

 Due to large scale production the Entrepreneurs

had surplus matter available with them. They
needed market to get their product absorbed.
As Britain had colonies all over the world so they
marketed their products to other countries. This
is how Entrepreneurship originated

 OCCUPATIONAL ORIGIN
The Entrepreneurs largely emerged from
trading community Prof. Ashton conducted a
survey in which he selected 47
British Innovators of Industrial revolution period
(mainly from manufacturing ). Out of them
17 Manufacturing Proprietors,10 Artisans,12
Peasants, 4 Traders- Consumer goods Industry,
4 Professional men

social origin

The Entrepreneurs originated mainly from

predominant socially distinct groups and were
innovative.
They were outsiders and worked in Trade /
Financer rather than manufacturing industries.

Societal perspective of entrepreneurial growth

Historical development of entrepreneurship is

governed by different factors. These factors are
important determinants of entrepreneurial growth and
thus gave a societal perspective to the
entrepreneurship. These factors are as follows:(1) Ethical value of Entrepreneur
(2)Minority group moral
(3)Need for achievement motivation
(4)Political system
(5)Exposure to new ideas and opportunities
(6)Industrial climate

Macro environment in which the

firm operates
Five identifiable, though overlapping segments:
1. Politics and government
2. Macro economy
3. Technology
4. Socio demography
5. Ecology

Historical Context
The Industrial Revolution to World War II
Rules of businesses were being developed
Devotion of most energy towards creation of
new production technology
Inventions and new technologies were
continually creating, changing and improving
products and processes

Beginning of twentieth century

Age of mass production

Minimal government intervention
Environment for business had stabilized
Business emphasized production efficiency

The Postwar Era

Following World War II business entered the
mass-marketing era
Radical changes in communication and
transportation
Affluent customers stagnated with standardized
products
Consumer Behaviour was discovered
Environment for business was changing, but at
slow pace

The Postindustrial age

Oil producing nations of Middle East had all the
economic preconditions for cartel behavior
Radical Changes in macro environment, markets
and technology
Shift from Product/market focus to Information
focus
Problems were not sequential but rather
cumulative

Conclusion
The origin of emergence of entrepreneurial class lies in
Industrial revolution.
The concept of entrepreneurship originated from Europe
and then propagated to different parts of the world.
The entrepreneurs largely emerged from Trading
community.
The entrepreneurs were mainly Outsiders who settled
away from their country of origin.
Disadvantaged minority group is generally the source of
entrepreneurship

Need for entrepreneurship

Dispersal of economic power

Higher rate of economic growth
Development of backward and tribal classes
Creation of opportunity
Improvement of standard of living
Involvement of all classes in economic growth