1. Entrepreneurship
Topic: The History and
the study of the
Entrepreneurship in the
Historical logic

2. Serial no content
1 Entrepreneurship, what is entrepreneurship,
approaches, and basic history
2 Kinds of approaches, the neo classic approach and
the classic approach.
3 School of thoughts and the different ways its is
defined
4 Era’s of entrepreneurship, the different decision of
entrepreneurship

3. Entrepreneur
• The starter of the business
• The initiator
• The launcher
• The risk taker
• The renewal
• The economic developer
• The country driver

4. Entrepreneur
• An entrepreneur (i/ˌ ɒntrəprəˌ is an owner or
nɜr)
manager of a business enterprise who makes
money through risk and initiative. The term was
originally a loan word from French and was first
defined by the Irish-French economist Richard
Cantillon.

5. Cont’d
• Jean-Baptiste Says, a French economist, is believed
to have coined the word "entrepreneur" in the 19th
century - he defined an entrepreneur as "one who
undertakes an enterprise, especially a contractor,
acting as intermediately between capital and labor

6. Cont’d
• Cantillon recognizes in his economic system three types of agents:
• Landowners (capitalists)
• entrepreneurs (initiators)
• hirelings (wage workers)

7. some great entrepreneurs
Steve Jobs the
initiator of the
apple I-phones
etc
The micro soft Ingvar Kamprad
entrepreneur one of the leading
earning the brands in the
highest money wood ply's his
in the world business is now all
Bill Gates over the world and
is a MNB

8. The Entrepreneurship
• 18th century French writer, Bernard F. de Belidor,
who defines entrepreneurship as buying labour and
materials at uncertain prices and selling the
resultant product at contracted prices.

9. Cont’d
• Entrepreneurship as a concept entered the economic literature mainly
through the writings of Richard Cantillon (1680-1734) whose Essai Sur la
Naiuredu Commerce en General, published in 1755

10. Cont’d
• According to Cantillon, it is the entrepreneur’s reaction to price
movements that continuously brings about a tentative balance between
supply and demand in specific markets. A distinguishing feature of
Cantillon’s analysis was his emphasis on ’risk’

11. Cont’d
• For a long time, there was no equivalent to the term ’entrepreneur’ in
the English language. Three words were commonly used to connote the
sense the French term carried: adventurer, undertaker and projector.
They were used interchangeably and lacked the precision and
characteristic of a scientific expression.

12. approaches
The are two approaches.
1. Classic Economic approach
2. Neo classic Economic approach

13. Classic economic approaches
• By the middle of the l8th century new forms of
production, social relations, governance and social
thought began to emerge.
• it is commonly believed to have coincided with the
publication of Adam Smith’s Inquiry into the Nature and
Causes of the Wealth of Nations ( 1776) which set the
trend for economic analysis and theorizing in the 18th
century
• Smith strangely silent about the entrepreneurial function
in the economy.

14. Cont’d
• Smith simply fails to distinguish the entrepreneur
from other industrious people of economy
• This non treatment of entrepreneurship by smith
set the trend for later economists.
• Like ricardo who assumed that capitalist act
rationally in seeking to maximize profits but fail to
explain the risk involved in investing

15. Cont’d
• The break with the smithian tradition came about
with the publication of his “defence of usuary” by
jeremy bentham.
• Bentham point out that how laws against usury limit
the overall capital for investment and how these
laws move away foreign money from domestic
capital markets
• Jean Beptiste Say , a french economist also made
some important contribution.

16. • Writers in Germany, too, made a theoretical
distinction between the entrepreneur and the
capitalist
• Thunen came to the limelight following his seminal
contribution to location theory in his celebrated work
The Isolated State (1850). He clearly distinguished the
return to the entrepreneur from that to the capitalist.
’Entrepreneurial gain’ in Thunen’s view is profit less (i)
interest on invested capital, (ii) insurance against
business losses and (iii) the wages of management.

17. Cont’d
• Thunen also highlighted the differences between
management and entrepreneurship.

18. Neo classic economic approach
• This new era focuses its attention on equilibrium results rather than
economic processes
• Casson (1982/2003, p. 23) the entrepreneur is someone
who “specializes in taking judgmental decisions about the
coordination of scarce resources”. because of the
characteristics of the real world listed above,
• entrepreneurs will differ in decisions and actions. The
essence of entrepreneurship is therefore about doing
things differently.

19. Cont’d
• As long as opportunities for improved coordination and
innovation exist entrepreneurial services will be socially
valuable.
• Trying to synthesize all this, we will settle on the
following definition of entrepreneurship (partly
adapted from Wennekers and Thurik 1999): the ability
and willingness of individuals, both on their own and
within organizations to:
• (i) innovate, i.e. perceive and create new economic
opportunities;
• (ii) face uncertainty, i.e. introduce their ideas in the
market, by making decisions on location, form and use
of the resources and institutions.

20. Austrian school of thought
(iii) manage their business by competing with others for
a share of that market.
SCHUMPETERIAN MODEL
• The man who brought the entrepreneur to center
stage was Schumpeter
• He was born in austria
• Schumpeter expresses his views in his “theory of
economic development” which was publish in 1911.
• Schumpeter succeded in integrating the dynamics of
technology with business enterprise.

21. • He conceptualized the equilibrium process, where
the production is invariant and factors substitution
possible within the limits of known technological
horizen.
• The agent who disturb this stationary system and
lead the economic system to new direction is
entrepreneur
• Schumpeter refined the role of the entrepreneur in
economic theory as an endogenous force in the
economy.

22. Neo austrian school
• ISRAEL KIRZNER
• Kirzner has emerged in recent years as the most brilliant
exponent of neo Austrian school.
• He says that equilibrium is a state in which each decision
correctly anticipate all other decisions.
• He says that the essence of entrepreneurship consist of the
alertness in market participants to market opportunities.
• According to kirzner , the entrepreneur is a person who
discover the opportunity at low prices and sell them at high
prices.
• By ignoring and concept of risk , kirzner theory cannot
explain entrepreneur losses.

23. • Here we will not attempt to account for every author that has
somehow addressed the issue, but rather to provide a
systematic survey of the more representative contributions of a
given idea of entrepreneurship
• In our survey we have identified three crucial attributes of
entrepreneurs
• that have been stressed in the more substantive modeling
efforts:
(i) they are (generally speaking) “more talented”,
(ii) they have greater tolerance towards risk-bearing and
(iii) they are innovators (either as individuals or as firms
involved in R&D activities).

24. The era of the entrepreneurship
Prehistoric Era
Economics base era
Multidisciplinary era

25. The Prehistoric Era

26. Prehistoric era
From 1740 to
1900 Product Not attractive
Oriented, No Era, No
Discouragement new Market customer
of innovative adventure satisfaction
Ideas

27. Cont’d
Small Scale Production
Only Get Profit Orientation
Law & Order effect customer
And Product

28. Economic era

29. Economic era
from 1910 to 1950’s , starting of
entrepreneur era
Working Ideas changed the concept
People got advanced, Industry
formed, large scale production
Entrepreneurs got efficient way to
make profit, Every person took
interest

30. Cont’d
• Non Customer oriented product
• Great importance on customer
• Entrepreneurs excel knowledge to make profit
• Efficiency

32. Multidisciplinary era
•customer took command
•making of the economies.
•This era is more customer orientated rather then product or profit.
•The era started in 1960 till now
•welfare and profit was affected by the customer
•this hypothesis was realized and used and this produced the real profit

33. Cont’d
• The factories production was made according to the will of the customer
and that really worked efficiently
• Large Scale Production
• Technological Advancement

34. Example
The charsadawal chapal:
1. Pre historic era: They were first produced in a
small amount by some shoe maker and used to
make the 6 to 20 pairs per month.
2. Economic Era: Then it was used to do some
production in later times and started to produce
the 20 to 40 pairs

35. Cont’d
Now its taking a whole some of manufacturing
concept and now started to make 200 to 300 pairs

36. Presenters
Sami Ur Rehman
Sikandar Wadood
Hashim Khan