Entrepreneurship Process and Principles

15897 WordsJul 23, 201064 Pages
Entrepreneurship process and principles Chapter: Introduction to Entrepreneurship process and principles Definition of entrepreneur -According to American Heritage Dictionary, “Entrepreneur is a person who organizes, operates and assumes the risk for business venture” -According to Skinner SJ and Ivancevich JM,” An entrepreneur is a person who takes the risks necessary to organize and manage a business and receives the financial profits and monetary rewards” -Entrepreneur is a person who organizes and assumes the risk of his or her own venture”. Meaning and definition of Entrepreneurship -According to R.M.Hodgehs,-‘Entrepreneurship is the process of organizing, managing and assuming the risk of a business.” Entrepreneurship is the…show more content…
He can not only set up a venture but also strive for the extension and continues growth of it. 4) Management and Marketing- When an entrepreneur establishes a new enterprise, he obliged to manage that obligation and run it properly. B) Specific function:- 1) Idea generation and scanning of the best suitable one. 2) Determination of business objectives. 3) Product analysis and marketing research 4) Determination and form of ownership. 5) Completion of promotional formalities 6) Raising necessary funds 7) Purchasing machine and materials 8) Recruitment of people 9) Undertaking the business operations. Distinction between entrepreneur and a manager. The major points of distinction are below: Points Entrepreneur Manager 1.Motive The main motive of an entrepreneur is to start a venture by setting up an enterprise. But the main motive of a manager is to render his services in an enterprise at ready setup by someone else. 2.Status An entrepreneur is the owner of the enterprise A manager is the servant in the enterprise owned by the entrepreneur. 3.Risk bearing An entrepreneur assumes all risks and uncertainty involved in running the organization. A manager as the servant does not bear any risk involved In the enterprise. 4.Rewards The rewards an entrepreneur gets for bearing risks involved in the enterprise in profit, which is highly uncertain. A manager gets salary as a reward for the services rendered by him in the enterprise. Salary of a manager is
Open Document