What Is Entrepreneurship? Definition, Characteristics, Quality

What Is Entrepreneurship? Definition, Characteristics, Quality

  • The entrepreneur is derived from the french word 'Entrepreneur' i.e. 'individuals who were undertakers', meaning who undertook the risk of a new enterprise.
  • According to adam smith, "Entrepreneur is an individual who forms an organization for commercial purpose."
  • According to carl menger, "Entrepreneur is a change agent who transfers resources into useful goods and services thus, creates the circumstances leading to industry growth."
  • According to peter drucker," An entrepreneur is one who always searches for changes, responds to it, and exploits it as an opportunity."
  • According to joseph schumpter," Entrepreneurs are innovators who use the process of shattering the status quo of the existing products and services. An entrepreneur is one who innovates, raises money, collects input, organizes talent, provides leadership, and sets the organizations."

Quality of Entrepreneur:-

           What makes an entrepreneur is the combination of various factors that have enabled the personality formation right from childhood as also the psychological urge that exists intensively in the person. These psychological processes lead men to set up on their own a successful business enterprise beginning the very early life and have a cumulative effect. The influence of early childhood and other social roles are determinate factors for the formation of that personality that motivates an individual towards becoming an independent businessman or Entrepreneur.

Characteristics of Entrepreneur

            Men who established new businesses are men who have right from childhood faced a different set of environments in their family, school, and other social situation. Research studies have indicated that successful Entrepreneurs identify a crisis before they venture into new entrepreneurial activities. Even in their childhood most of them had threatening non-supportive and disgusting adults figures who had much say in their social and economic life. Most of these have a childhood of impoverishment and stress. Economic deprivation also works as a motivational factor towards creating something on their own and freeing them from the clutches of operating forces that attempt to kill their spirit of individualism.

           Thus it has been found that creating a successful new business is not due to an isolated incidence in the life of an individual but has been as a result of a learned response to their total social, emotional and economic environment. The family background plays an important role in building up the personality necessary for turning into an entrepreneur later in life. The family situations where security and non-risk-bearing activities are encouraged, right from childhood the individual likes to be more security-oriented rather than an attempt on his own in areas where adventures and uncertain conditions prevail.

           Also in families where deep attachments and emotional relationships are encouraged, it has been, found that the child growing under such situations tends to take up activities that are more security-oriented than risk-oriented. Since in most middle-class families, attachment and security-oriented activities are encouraged despite seeking academic excellence, it itself does not help the person to develop a deep urge to be independent and create a framework required for enjoying autonomy. As a result of this attitude building, many bright graduates shy away from placing themselves in open positions but instead choose to stay in the established organizations because they have developed a favorable attitude towards the establishment. 

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