Evalution of the_concept_of_entrepreneur


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Evalution of the_concept_of_entrepreneur

  1. 1. Evolution of the concept of Entrepreneur. What does the term ‘Entrepreneur’ mean?(än´´tr pr nûr´) (KEY) [Fr.,=one who undertakes], person who assumes the organization,management, and risks of a business enterprise. It was first used as a technical economic term bythe 18th-century economist Richard Cantillon. To the classical economist of the late 18thcentury the term meant an employer in the character of one who assumes the risk andmanagement of business; an undertaker of economic enterprises, in contrast to the ordinarycapitalist, who, strictly speaking, merely owns an enterprise and may choose to take no part in itsday-to-day operation. In practice, entrepreneurs were not differentiated from regular capitalistsuntil the 19th cent., when their function developed into that of coordinators of processesnecessary to large-scale industry and trade. Joseph Schumpeter and other 20th-centuryeconomists considered the entrepreneur‟s competitive drive for innovation and improvement tohave been the motive force behind capitalist development.There are many differing views on what makes someone an entrepreneur and what anentrepreneurial venture is. In a sense the definition itself is evolving as the field itself comes intothe mainstream of American business. While we speak of many of the originators of businessesin the past as entrepreneurs, it was not until the mid1970s that the concept became a prevalentenough part of our economy that definitions even were necessary. Consequently, we see in theliterature a wide variety of possibilities for what this field of endeavor really is.Looking online, the Websters Revised Unabridged Dictionary from 1913 defined anentrepreneur as "one who creates a product on his own account." That sounds a trifle stuffy, isvery limited and doesnt fit for many of the people widely known as entrepreneurs. The meaningof the word entrepreneur has certainly evolved since 1913.Does just creating a product make you entrepreneurial if you never do anything with it? What ifyou take someones product and make it a success? That is not entrepreneurial? Investorwords, aset of definitions of financial terms, defines an entrepreneur as "an individual who starts his/herown business." At what point then are you no longer an entrepreneur? When are you no longerstarting up? From the Merriam-Webster Online comes a more current definition: "one whoorganizes, manages, and assumes the risks of a business or enterprise." Assuming risk certainlyfits most entrepreneurs. This definition is definitely richer, but still lacks the sense of innovationthat one usually associates with entrepreneurs.Moving from formal definitions, Ashoka, an organization which promotes social change, callsfor "social entrepreneurs," people who open up major new possibilities in education, health, theenvironment, and other areas of human need, "just as business entrepreneurs lead innovation incommerce, social entrepreneurs drive social change." The concept of business entrepreneursleading innovation is appealing because it denotes more than just starting a business. Anentrepreneur herself, Daile Tucker, provides her thoughts on what it takes to be an entrepreneurin Are You an Entrepreneur? She defines an entrepreneur as "a person who has decided to take
  2. 2. control of his future and become self-employed whether by creating his own unique business orworking as a member of a team, as in multi-level marketing." She identifies work ethics andseveral character traits of successful entrepreneurs, ending with "Entrepreneurs compete withthemselves and believe that success or failure lies within their personal control or influence."This begins to touch on motivational aspects for being an entrepreneur which may distinguish thetype of person drawn to being an entrepreneur.Mark Hendricks takes Tuckers definition a step further, acknowledging innovation, but alsoproviding alternatives. Hendricks suggests that to be an entrepreneur you dont particularly haveto be daring. Many entrepreneurs are perfectly content to sell tried-and-true products, bringing asteady income without the intensity of launching a new product. He labels these lifestyleentrepreneurs. They want to be their own boss and make a good living, but they dont need to beon the cutting edge, which entails living where one wants, working with people one likes, anddoing work one wants to do. ENTREPRENEUR VS INTREPRENEUREntrepreneurship is the practice of embarking on a new business or reviving an existing business bypooling together a bunch of resources, in order to exploit new found opportunities.What is Intrapreneurship?: Intrapreneurship is the practice of entrepreneurship by employees withinan organization.An entrepreneur“… is one who has a dream and builds an organization to achieve it.”An intrapreneur is one who has a dream and tries to achieve it within an already existingcorporationentrepreneur is starting a business while intraprenuer is developing a new product in an already existingbusinessDifference between an entrepreneur and an intrapreneur:An entrepreneur takes substantial risk in being the owner and operator of a business with expectationsof financial profit and other rewards that the business may generate. On the contrary, an intrapreneuris an individual employed by an organization for remuneration, which is based on the financial successof the unit he is responsible for. Intrapreneurs share the same traits as entrepreneurs such asconviction, zeal and insight. As the intrapreneur continues to expresses his ideas vigorously, it willreveal the gap between the philosophy of the organization and the employee. If the organizationsupports him in pursuing his ideas, he succeeds. If not, he is likely to leave the organization and set uphis own business.
  3. 3. Example of intrapreneurship: A classic case of intrapreneurs is that of the founders of Adobe, JohnWarnock and Charles Geschke. They both were employees of Xerox. As employees of Xerox, they werefrustrated because their new product ideas were not encouraged. They quit Xerox in the early 1980s tobegin their own business. Currently, Adobe has an annual turnover of over $3 billion.Features of Intrapreneurship: Entrepreneurship involves innovation, the ability to take risk andcreativity. An entrepreneur will be able to look at things in novel ways. He will have the capacity totake calculated risk and to accept failure as a learning point. An intrapreneur thinks like anentrepreneur looking out for opportunities, which profit the organization. Intrapreneurship is a novelway of making organizations more profitable where imaginative employees entertain entrepreneurialthoughts. It is in the interest of an organization to encourage intrapreneurs. Intrapreneurship is asignificant method for companies to reinvent themselves and improve performance.In a recent study, researchers compared the elements related to entrepreneurial and intrapreneurialactivity. The study found that among the 32,000 subjects who participated in it, five percent wereengaged in the initial stages of a business start-up, either on their own or within an organization. Thestudy also found that human capital such as education and experience is connected more withentrepreneurship than with intrapreneurship. Another observation was that intraptreneurial startupswere inclined to concentrate more on business-to-business products while entrepreneurial startupswere inclined towards consumer sales.Another important factor that led to the choice between entrepreneurship and intrapreneurship wasage. The study found that people who launched their own companies were in their 30s and 40s. Peoplefrom older and younger age groups were risk averse or felt they have no opportunities, which makesthem the ideal candidates if an organization is on the look out for employees with new ideas that canbe pursued.Entrepreneurship appeals to people who possess natural traits that find start ups arousing theirinterest. Intrapreneurs appear to be those who generally would not like to get entangled in start upsbut are tempted to do so for a number of reasons. Managers would do well to take employees who donot appear entrepreneurial but can turn out to be good intrapreneurial choices.Examples of Intrapreneurs:A lot of companies are known for their efforts towards nurturing their in-house talents to promoteinnovation. The prominent among them is “Skunk Works” group at Lockheed Martin. This group formed
  4. 4. in 1943 to build P-80 fighter jets. Kelly Johnson was the director of the project, a person who gave“14 rules of intrapreneurship”.At “3M” employees could spend their 15% time working on the projects they like for the betterment ofthe company. On the initial success of the project, 3M even funds it for further development.Genesis Grant is another 3M intrapreneurial program which finances projects that might not end upgetting funds through normal channels. Genesis Grant offers $85,000 to these innovators to carryforward their projects.Robbie Bach, J Allard and team’s XBOX might not have been feasible without the Microsoft’s moneyand infrastructure. The project required 100s of millions and quality talent to make the product. Entrepreneur VS ManagerDistinction between an Entrepreneur and a ManagerThe terms Entrepreneur and Manager are considered one and the same. But thetwo terms have different meanings.The following are some of the differences between a manager and an entrepreneur.· The main reason for an entrepreneur to start a business enterprise is because hecomprehends the venture for his individual satisfaction and has personal stake in itwhere as a manager provides his services in an enterprise established by someone.· An entrepreneur and a manager differ in their standing, an entrepreneur is theowner of the organization and he bears all the risk and uncertainties involved inrunning an organization where as a manager is an employee and does not acceptany risk.· An entrepreneur and a manager differ in their objectives. Entrepreneur‟s objectiveis to innovate and create and he acts as a change agent where as a manager‟sobjective is to supervise and create routines. He implements the entrepreneur‟splans and ideas.· An entrepreneur is faced with more income uncertainties as his income iscontingent on the performance of the firm where as a manager‟s compensation isless dependent on the performance of the organization.· An entrepreneur is not induced to involve in fraudulent behavior where as amanger does. A manager may cheat by not working hard because his income is nottied up to the performance of the organization.· Entrepreneur is required to have certain qualifications and qualities like highaccomplishment motive, innovative thinking, forethought, risk-bearing ability etc.
  5. 5. Conversely it‟s mandatory for a manager to be educated in the fields ofmanagement theories and practices.· An entrepreneur deals with faults and failures as a part of learning experiencewhere as a manager make every effort to avoid mistakes and he postpones failure.“An entrepreneur could be a manager but a manager cannot be an entrepreneur”.An entrepreneur is intensely dedicated to develop business through constantinnovation. He may employ a manager in order to perform some of his functionssuch as setting objectives, policies, rules etc. A manager cannot replace anentrepreneur in spite of performing the allotted duties because a manager has towork as per the guidelines laid down by the entrepreneur.On the downside, typical manager brings professionalism into working of anorganization. They bring fresh perspectives, ideas and approach to trouble shootingwhich can be invaluable.Lately there has been convergence of the entrepreneur and the manager in certainsectors like software. An employee is being given highly valuable stock options,which make a typical „manager‟ a part owner.What is entrepreneurship?Who is an entrepreneur?An entrepreneur is a person who develops a new idea and takes the risk of setting up anenterprise to produce a product or service which satisfies customer needs. All entrepreneurs arebusiness persons, but not all business persons are entrepreneurs. Let us now think of why allbusiness persons are not entrepreneurs. Think of a woman who sits by the roadside leading toyour home and who has been selling the same type of food, from the same size of saucepan orpot, from the same table top, and may not have been able to change her standard of living to anyappreciable extent. Such a woman may be a business person but not an entrepreneur. Theentrepreneur, on the other hand is the business person who is not satisfied with his/herperformance and therefore always finds ways to improve and grow.Now let us consider the characteristics or some special qualities and strengths which make anentrepreneur different from a business person. It is important for us to note that a successfulentrepreneur possesses the following characteristics.
  6. 6. InitiativeAn entrepreneur takes actions that goes beyond job requirements or the demand of the situationOpportunity seekingAn entrepreneur is quick to see and seize opportunities. He/she does things before he/she isasked to work by people or forced by situation.PersistenceAn entrepreneur is not discouraged by difficulties and problems that come up in the business orhis/her personal life. Once she sets a goal she is committed to the goal and will becomecompletely absorbed in it.Information seekingAn entrepreneur undertakes personal research on how to satisfy customers and solve problems.He/she knows that different people have different capabilities that can be of help to them. He/sheseeks relevant information from his/her clients, suppliers, competitors and others. He/she alwayswants to learn things which will help the business to grow.Demand for quality and efficiencyAn entrepreneur is always competing with others to do things better, faster, and at less costhe/she strives to achieve excellence.Risk takingAre you afraid of uncertainties? Then you cannot be an entrepreneur. Entrepreneurs are not highrisk takers. They are also not gamblers; they calculate their risks before taking action. They placethemselves in situations involving moderate risk so they are moderate risk takers.Goal settingAn entrepreneur sets meaningful and challenging goals for him/herself. An entrepreneur does notjust dream. Him/she thinks and plans what he/she does. He/she is certain or has hope about thefuture.Commitment to workAn entrepreneur will work long hours after into the night just to be able to keep his/her promiseto his/her client. He/she does the work together with his/her workers to get a job done. He/sheknows how to make people happy to work for him/her due his/her dynamic leadership.Systematic planning and monitoring
  7. 7. An entrepreneur plans for whatever he/she expects in the business. He/she does not leave thingsto luck. He/she plans by breaking large tasks down into small once and puts time limits againstthem. Since and entrepreneur knows what to expect at anytime he/she is able to change plans andstrategies to achieve what he/she aims at.Persuasion and networkingAn entrepreneur acts to develop and maintain business contacts by establishing good workingrelationship. Uses deliberate strategies to influence others.Independence and self confidenceMost entrepreneurs start business because they like to be their own boss. They are responsiblefor their own decisions. The importance of entrepreneurship The role of entrepreneurship and an entrepreneurial culture in economic and social development has often been underestimated. Over the years, however, it has become increasingly apparent that entrepreneurship does indeed contribute to economic development. Transforming ideas into economic opportunities is the crux of entrepreneurship. History shows that economic progress has been significantly advanced by pragmatic people who are entrepreneurial and innovative, able to exploit opportunities and willing to take risks. Entrepreneurs produce solutions that fly in the face of established knowledge, and they always challenge the status quo. They are risk-takers who pursue opportunities that others may fail to recognize or may even view as problems or threats. Whatever the definition of entrepreneurship, it is closely associated with change, creativity, knowledge, innovation and flexibility-factors that are increasingly important sources of competitiveness in an increasingly globalized world economy. Thus, fostering entrepreneurship means promoting the competitiveness of businesses. Entrepreneurship and enterprise development Private sector development and entrepreneurship development are essential ingredients for achieving the Millennium Development Goal of reducing poverty. While
  8. 8. sound macroeconomic policies and providing market access are crucial, emerging markets need to nurture and develop entrepreneurs able to take advantage of opportunities created by globalization. For many developing countries, private sector development has been a powerful engine of economic growth and wealth creation, and crucial for improving the quality, number and variety of employment opportunities for the poor. Economically, entrepreneurship invigorates markets. The formation of new business leads to job creation and has a multiplying effect on the economy. Socially, entrepreneurship empowers citizens, generates innovation and changes mindsets. These changes have the potential to integrate developing countries into the global economy.Role of Entrepreneur with respect to entreprenurial cultureEntrepreneurship is not an inborn skill, it is a product of the environment. It involves a complexof economic and social behaviour. To be successful, an entrepreneur has to remain dynamic andresponsible to the whole environment. Entrepreneurship can hardly survive under any givencircumstances. It can flourish only under the right environment. It is a part of the total system.The social values, culture, government policies, political system, technology, economicconditions, customs, laws, etc. influence the growth of entrepreneurship.In fact, the entrepreneurship cannot be kept aloof from the changing social values, ideologies,new emerging aspirations, environmental pressures, religious beliefs, consumer wants andsociety needs etc. Business is a system made up of certain environmental factors which requirethe entrepreneur to adopt a dynamic attitude and a new strategy of their own.Entrepreneurial culture implies a set of values, norms and traits that are conducive to the growthof entrepreneurship.Cultural values deeply affect entrepreneurship and the level of economic development –Structural conditions make development possible – cultural factors determine whether thepossibility becomes an actuality.Culture has everything to do with the entrepreneurial process and focuses on the discovery andinterpretation of opportunities, neglected by others. No entrepreneur can overlook the country‟scultural heritage and values if he wants to survive and progress. He needs to function on the basisof social expectations, desires and goals. The entrepreneur has to respect the human society, itscultural values and traditions.Awareness and understanding of the cultural environment of business maybe useful to theentrepreneur in several ways:
  9. 9. i) To better understand the behaviour and conduct of people with regard to entrepreneurship.ii) To predict behaviour and determine how people will act in a certain situation as regards toentrepreneurship.iii) It develops the sensitivity of the entrepreneur.iv) It facilitates change of the entrepreneur.Understanding entrepreneurial culture is important, not only to the theoretical understanding ofentrepreneurship, but also to entrepreneurship as a practical enterprise, which can provide newand fresh ideas of entrepreneurship, by looking at innovative business behaviour in other times,in other societies and in other cultures – and also by looking at entrepreneurship from novelangles and much wider perspective.Culture is of great importance to entrepreneurship, because it determines the ethos of people. Ittrains people along particular lines. It creates distinctions. It conveys a sense of identity. Itenhances social system stability. It creates people, enterprising men and risk bearers. Itdetermines goods and services. The understanding of culture enables the entrepreneur toskillfully manipulate the cultural codes of his society, balancing between the permissible and theprofane, tugging moral codes into a new conformation.The entrepreneur‟s ability to “read” opportunities cannot be due to isolation or separateness, butis rather due to a higher degree of sensitivity to what others are looking for. And it is culture thatgives pre-direction to the entrepreneur‟s vision, enabling him to read certain things. They canpick up the sense of where their fellows in the culture stand, what values they adhere to, whatpurposes they pursue, what they consider beautiful and what they deem profane.The entrepreneur‟s ability to move ahead with confidence, his struggle to turn setbacks intoopportunities, to advance and survive in the business world is the knowledge and instinct thatcomes from experience gathered in a particular cultural milieu.Sociologists like Max Weber argue that entrepreneurship is most likely to emerge under aspecific social culture. According to them, social sanctions, cultural values and role expectationsare responsible for the emergence of entrepreneurship. For many researchers, modernentrepreneurship is a distinctly new variant of a timeless species created and sustained by cultureand creative of it at the same time.Some cultures are enormously supportive of entrepreneurship – indeed to the point whereentrepreneurship develops its own culture, such as in Hong Kong. Others (such as CommunistCountries) regard the entrepreneurial way of life with suspicion. The differences go a long waytowards explaining why some societies are vibrant and progressive, while others stagnate.Religion/ caste and family influences greatly determine entrepreneurial culture. Some religionsare found to be conducive to entrepreneurship, while others inhibit entrepreneurship. Religiousbeliefs produce intensive exertion in occupational pursuits, the systematic ordering of means to
  10. 10. an end and the accumulation of assets. It is these beliefs and the caste system that are found toinfluence the propensity to become an entrepreneur.Religion often determines what business one stays out of. In India, it is religiosity that keepsmany people in business and often determines what business one stays out of. The mighty Birlaschose to stay out of the hotel business because of the necessity to consider serving non-vegetarian food. Religion based norms become easy and convenient reference points fordesigning one‟s course of actions.Family too plays an important role in shaping entrepreneurial instincts. Family background,simply familiarity with a business environment, growing from “table talk” at home is the key toincreasing the probability that an offspring will later become an entrepreneur. Entrepreneurs arevery much in terms with the „conversations‟ going on around him. Brought up in a family, wherecommercial activity is part of the daily household routine, it becomes a conscious battle for theentrepreneur to create viable business.The characteristics of the family enterprises – commitment, continuity, putting a face to thecompany and close interaction between the family and the business – may have a strong impacton the strategic choices in the business.Family background of business-family values, business conversations as a part of the dailyhousehold routine, family support and encouragement, has given these young entrepreneurs, thedrive, the desire, and the motivation to create their own viable business unit. On the other hand,successful family business that have been forced on in heritage, has curbed the development ofindependent, innovative ventures.Family enterprises also play a major role in regional and local economics – often act as theengines of their economic development as they have a positive attitude towards growth, and theirgrowth is usually more cost efficient than of other firms. The owners that put a face to theirfamily enterprises are committed to developing their firms as well as to their continuity.To conclude, the influence of human institutions such as norms, values, morals, family ties andsupport – in other words – culture- form the framework within which individuals can pursueentrepreneurial opportunities.Current PerspectiveIn a country like India, social (value system) and cultural issues hold theirimportance besides issues related to infrastructure. Any innovation to succeed inour society needs to be accepted by our value systems and cultural issues. It willnot be wrong to say that Dot.com (or any innovation) will not succeed until andunless a high level of awareness is achieved and the idea is taken to the commonpeople. An acceptance by the mass in itself is a kind of social innovation. Further, inour country, where the population is more concerned about making both endsmeet, entrepreneurial activity will achieve sustainability only when support isprovided both at the societal and governmental levels.
  11. 11. Scope of entrepreneurship development in IndiaIn India there is a dearth of quality people in industry, which demands high level ofentrepreneurship development programme through out the country for the growthof Indian economy.The scope of entrepreneurship development in country like India is tremendous.Especially since there is widespread concern that the acceleration in GDP growth inthe post reforms period has not been accompanied by a commensurate expansionin employment. Results of the 57th round of the National Sample SurveyOrganization (NSSO) show that unemployment figures in 2001-02 were as high as8.9 million. Incidentally, one million more Indian joined the rank of the unemployedbetween 2000-01 & 2001-02. The rising unemployment rate (9.2% 2004 est.) inIndia has resulted in growing frustration among the youth. In addition there isalways problem of underemployment. As a result, increasing the entrepreneurialactivities in the country is the only solace. Incidentally, both the reports preparedby Planning Commission to generate employment opportunities for 10 crore peopleover the next ten years have strongly recommended self-employment as a way-outfor teaming unemployed youth.We have all the requisite technical and knowledge base to take up theentrepreneurial challenge. The success of Indian entrepreneurs in Silicon Valley isevident as proof. The only thing that is lacking is confidence and mentalpreparation. We are more of a reactive kind of a people. We need to get out of thisand become more proactive. What is more important than the skill and knowledgebase is the courage to take the plunge. Our problem is we do not stretch ourselves.However, it is appreciative that the current generations of youth do not have hang-ups about the previous legacy and are willing to experiment. Theses are the peoplewho will bring about entrepreneurship in India.We can take the example of Vikas Kedia - one of Indias most eligibleentrepreneurs; he was barely 21 when he had turned his back on a possible $100,000-a-year job. Vikas Kedia, a graduate from the Indian Institute ofManagement-Bangalore, is much in demand. He has also created history of sorts inthe IIM circuit by starting his own dot-com company in Bangalore, now he has hisown company which is a California and Kolkata based GRMtech.At present, there are various organizations at the country level & state leveloffering support to entrepreneurs in various ways. The Govt. of India & variousState Govts. have been implementing various schemes & programmes aimed atnurturing entrepreneurship over last four decades. For example, MCED inMaharashtra provides systematic training, dissemination of the information & data
  12. 12. regarding all aspects of entrepreneurship & conducting research inentrepreneurship. Then there are various Govt. sponsored scheme for the buddingentrepreneurs.Recognizing the importance of the entrepreneur development in economic growth &employment generation, Maharashtra Economic Development Council (MEDC) hasidentified entrepreneurial development as the one of the focus area for Councilactivities two years ago.Various Chambers of Commerce & apex institutions have started organizingseminars & workshops to promote entrepreneurship. Incidentally, variousmanagement colleges have incorporated entrepreneurship as part of theircurriculum. This is indeed a good development. This shows the commitment of theGovt. & the various organizations towards developing entrepreneurial qualities inthe individuals.Promoting EntrepreneurshipIn India, where over 300 million people are living below the poverty line, it issimply impossible for any government to provide means of livelihood to everyone.Such situations surely demand for a continuous effort from the society, where thepeople are encouraged to come up with their entrepreneurial initiative.Encouragement at attitudinal and social levelIn the future, innovation and entrepreneurship needs to be encouraged at Sociallevels, Governmental levels and Managerial levels. There must be a social attitudethat views innovations with positive attitude and reject an innovation only when it isnot acceptable.Encouragement at physical levelAt this level the encouragement will refer to two aspects necessary forentrepreneurship to thrive, one is the provision of venture capital and the otherbeing infrastructural support. A real example is Export Processing Zones which areperforming extremely well when given the support.Entrpreneurship and Economic Development
  13. 13. 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. Theavailable employment opportunities can cater only 5 to 10 % of the unemployed. Entrepreneursgenerate employment both directly and indirectly. Directly, self employment as an entrepreneur andindirectly by starting many industrial units they offer jobs to millions. Thus entrepreneurship is thebest 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 goodsand services produced are for consumption within the country as well as to meet the demand ofexports. 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. Anincreasing number of entrepreneurers are required to meet this increasing demand for goods andservices. 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, developmentgets limited to these cities. A rapid development . When the new entrepreneurers grow at a fasterrate, in view of increasing competition in and around cities, they are forced to set up their enterprisesin 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. Thisconcentration of power in a few hands has its own evils in the form of monopolies. Developing a largenumber of entrepreneurers helps in dispersing the economic power amongst the population. Thus ithelps 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 areable to produce goods at lower cost and supply quality goods at lower price to the communityaccording to their requirements.When the price of of the commodies decreases the consumers get thepower to buy more goods for their satisfaction. In this way they can increase the standard of living ofthe people.
  14. 14. 6) Creating innovation :An entrepreneur is a person who always look for changes. apart from combining the factors ofproduction, he also introduces new ideas and new combination of factors. He always try to introducenewer and newer technique of production of goods and services. An entrepreneur brings economicdevelopment through innovation.Entrepreneurship also helps in increasing productivity and capital formation of a nation. In short, thedevelopment of the entrepreneurship is inevitable in the economic development of the country. TheRole played by the entrepreneurship development can be expressed in the following words :" Economic development is the effect for which entrepreneurship is a cause "