The document defines an entrepreneur as an individual who undertakes the risk of operating a business in the face of uncertainty. Entrepreneurship is the process of taking calculated risks with confidence to achieve a business objective. An entrepreneur is described as a visualizer, creator, innovator, decision maker, risk taker, and leader. Entrepreneurship involves initiating a new technology, idea, or perception through an innovative process. The concept of entrepreneurship can be explained through economic, sociological, and psychological approaches.

1. Concept of
Entrepreneurship
Presented by:
Aanchal Vershan
Semester III (MBA – M52)
MONIRBA, University of Allahabad

2. Who is an Entrepreneur?
• The word entrepreneur is derived from the
French word ‘Entreprendre’ which means to
‘undertake’, i.e., the person who undertakes
the risk of new enterprise.
• The New Encyclopaedia Britannica defines
an entrepreneur as “an individual who
bears the risk of operating a business in
the face of uncertainty about the future
conditions.”

3. What is Entrepreneurship?
Meaning:-
• Entrepreneurship is the propensity of mind
to take calculated risks with confidence to
achieve a pre-determined business or
industrial objective.
• In substance, it is the risk-taking ability of
the individual, broadly coupled with correct
decision-making.

4. Entrepreneur
and Entrepreneurship
Entrepreneur
• Entrepreneur is a
person who is a
visualiser, creator,
innovator, decision
maker, risk taker
and leader.
Entrepreneurship
• Entrepreneurship is
a process by which
entrepreneur is
required to complete
the innovative
process by initiating
new technology or
idea or perception.

5. Entrepreneur
and Entrepreneurship
Entrepreneurship
Entrepreneur Enterprise
Process of action
Person Object

6. Definitions
of Entrepreneurship
• Entrepreneurship is a multifacet activity and
defined by different authorities in different
ways. Some of the definitions given by them
are analysed below:
1) Higgins B.: Entrepreneurship is meant the
function of seeking investment and
production opportunity, organising an
enterprise to undertake a new production
process, raising capital, hiring labour,

7. Definitions
of Entrepreneurship
arranging the supply of raw materials,
finding site, introducing a new technique
and commodities, discovering new sources
of raw materials and selecting top managers
of day to day operations of the enterprise.
2) Schumpeter J.A: Entrepreneurship as
defined essentially consists in doing that are
not generally done in the ordinary course of
business routine.

8. Concept of
Entrepreneurship
Following approaches are used to explain
the concept of entrepreneurship:
Economic Approach: Entrepreneurship is
the process of initiating a new venture,
organising the resources it requires and
assuming the risks it entails.
• The economist, Richard Cantillon remarked
entrepreneur as a person who pays a certain
price for a product to resell it at an uncertain

9. Concept of
Entrepreneurship
price thereby making decisions about
obtaining and using resources while
consequently assuming the risk of
enterprise.
Sociological Approach:
• Thomas Cocharan concluded in his study
that the entrepreneur represents society’s
model personality. His performance

10. Concept of
Entrepreneurship
depends upon his own attitudes towards his
occupation, the role expectations of
sanctioning groups and the occupational
requirements of the job. Society’s values are
the most important determinant of the
attitudes and role expectations.
Psychological Approach:
• In this approach we can mention the concept
developed by David McClelland.

11. Concept of
Entrepreneurship
• According to David C McClelland, it is
the high need for achievement which
drives people towards entrepreneurial
activities. Achievement motive is basically
measured through child rearing practices
which stress standards of excellence,
material warmth, self-reliance, training

12. Concept of
Entrepreneurship
and low father dominance. Individuals with
high achievement motive tend to take keen
interest in situations of high risk, desire for a
concrete measure of task performance.
Thus, entrepreneurship is the end result of a
complex and varying combination of socio-
economic, psychological and other
variables.

13. Characteristics of
Entrepreneurship
• Following are the main characteristics of
entrepreneurship:
1) Dynamic Process.
2) Innovation.
3) Risk taking.
4) Decision making.
5) Accepting challenges.
6) Organisation.

14. Characteristics of
Entrepreneurship
7) Skilful management.
8) Making the Enterprise a success.

15. Functions of an
Entrepreneur
• An entrepreneur is expected to perform the
following functions:
1) Innovation.
2) Risk-taking.
3) Organisation and Management.
4) Business Decisions.

16. THANK YOU!