Business is both an economical and social process SOCIAL PROCESSECONOMIC PROCESSIt is an economic activity of Satisfying the needs andProduction and distribution of Wants of the publicGoods and services for profits.
Factors of production Factors of production Land Labour Capital OrganisationA business is a combination of four factors of production.
EntrepreneurA person who takes the „enterprise‟ or effots of identification and mobilisation of factors of production to form a business entity and earn profits there from is called an entrepreneur.
Entrepreneur –Word originationThe word entrepreneur is derived from the French word “entreprendre” which means “to undertake”.
Factors of production and rewards The entrepreneur has to acquire land for „rent‟, hire labourfor „wages‟, Borrow capital for „interest‟ and Finally organise thesefactors in production for generating the own reward, i.e. profit. Factors of production Rewards Land Rent Labour Wages Capital Interest Organisation Profit
Innovation of an entrepreneur1. The introduction of a new method of production.2. The introductin of a new product.3. The identification of a new source of raw material and4. Finding out new markets.
Types of an entrepreneur Individual Groupentrepreneur entrepreneurs
Individual entrepreneur Here the entire entrepreneurial activitiesrevolve around a single person performingall the functions of entrepreneurship;formulates new business ideas, mobilisesresources, forms and manages anenterprises and bears all the risks involvedin it. The success and failure of this type ofentrepreneurship depends purely on a singleperson.
Group entrepreneurs Two or more persons having entrepreneurial traits and motivation join together and form a team so that they can effectively perform all the entrepreneurial functions.This facilitates entrepreneurs to reduce the risks involved in individual entrepreneurship and enjoy the benefits of team working.
Intrapreneur Person who works within anorganisation as a manager or executiveexhibiting some characteristics of anentrepreneur. He is an effective, intelligent and smartexecutive working within the framework ofan organisation.
INTRAPRENEUR ENTREPRENEURExecutive or manager who An independent person whoworks within the framework starts an enterprise and bearsof an organisation. all risks involved in it.He does not mobilise resources He mobilises resources and meets the costs of these resources.He does not bear any risk in He bound to bear all risksthe business involved in the business.He receives salary for his The monetary benefit of theservices to the organisation. entrepreneur is profit made by the business.