The document discusses the development of entrepreneurship theory from the 18th to 19th centuries. It mentions key theorists like Richard Cantillon, Jean Baptiste Says, and Joseph Schumpeter who contributed important concepts. It also defines what an entrepreneur is, lists their characteristics, and discusses the functions and essentials of entrepreneurship. The entrepreneurial process and components of entrepreneurship like opportunities, resources, and outputs are outlined.

1. ENTREPRENEURSHIP
Development of Entrepreneurship Theory
18th Century
Richard Cantillon:
Invented the term
‘entrepreneur’
(“go-between” or
“between taker”)
Entrepreneur takes
risks, organizes and
manages factors of
production

2. Development of Entrepreneurship
Theory
19th Century
Jean Baptiste Says:
Alleges that risk based profit,
derived from
entrepreneurship, is different
from the income of financial
capital.
There is a distinction
between the people who
raise funds for their
business and people who
make profits by taking risks
with their managerial skills.

3. Development of Entrepreneurship
Theory
19th Century
Joseph Schumpeter:
Defined entrepreneur as a
person who is innovative
and destroys old and
constructs new (creative
destruction) in a creatie way.
Peter Drucker:
Defined entrepreneur as
a person who maximizes
opportunites (proactive)

4. Entrepreneurship
• Ability to take advantages of opportunities or
organize production inputs in order to create
new opportunites.
• A process which is independent of controlling
the resources and directed to create and
follow the opportunites.

5. Who is an entrepreneur?
A person who starts a new business
• In a risky and uncertain setting,
• With the aim of profitability and growth,
• Examining the opportunities,
• And gathering the necessary resources to use
opportunities.

6. Who is an entrepreneur?
• A person who captures factors of production in order to
produce products or service, organizes them regularly, and
bears all the possible risks as a result of profit seeking
operations and enterprises.
• A person who predicts resources in order to increase the
values of them and plans work according to it, enables
processing of inputs by organizing human resources and
displays the skill of presenting outputs to consumers.

7. Who is an entrepreneur?
• An entrepreneur, is a person
who
• produces products,
• provides services,
• or does business
that the society needs, and aims
financial and moral gain, for this
purpose who starts his/her own
business and in order to do it he
conducts
• research,
• planning,
• organizing,
• and coordination
activities, in conclusion, who
brings
• Necessary
information-ability,
• Business inputs like
workplace, personnel,
machine-equipment
etc.
• Financial resources
Together and sets up
His/her own
business.

8. By Setting Up His/Her own Business an
Entrepreneur;
 Has business, provides employment, increases
employment,
 Gains financial power,
 Be beneficial to his/her society by his/her added
value,
 Be able to work according to his/her own view
and plans,
 Experiences the spiritual satisfaction of self-
achievement,
 Has an independent workplace,
 Shapes his/her future with his/her own work
effort and will.

9. What are the Reasons that Entrepreneurs Choose
This Path?
 Reasons Related to Obligations
 Being obliged to continue family business
 Constraints related to finding paid employment
 Practical Reasons
 A way to earn necessary income
 Activities for the retirement period
 The need for the additional income
 Efforts for making use of spare time activities
 The desire of handing the company down the next
generations

10. What are the Reasons that
Entrepreneurs Choose This Path?
 Reasons Related to Personality
 Do not want to work for other people
 The will of a personal workplace and time
 Do not want to work under command
 The will to shape his/her future with his/her own
decisions and efforts
 Personal satisfaction, struggle for developing
creativity
 Struggle for a different social status objective

11. Types of EntrepreneurshipIntrapreneurship: It is taking responsibility of converting an idea into a profitable final
product by making innovation and taking risks in big businesses. Intrapreneurship
means all types of entrepreneurship activities within the business and organization. A
firm’s finding new markets within itself, applying new technologies, automatizing etc.
are counted as intrapreneurship.
Commecial Entrepreneurship: Gathering factors of production and forwarding them
to goods or service production for making profit is called commercial
entrepreneurship. Commercial entrepreneurship can also be named as private sector
entrepreneurship.
Women Entrepreneurship: Women have started to have impact upon development in
association with the enrichment of women entrepreneurship. The woman who has
authority on her investment and its area of usage can be called as a woman
entrepreneur.
Social Entrepreneurship: Social entrepreneurship has caused transformations by
changing the usual behaviours of societies. A social entrepreneur finds what is wrong,
convinces society with new leaps and solves the problem by changing the system.
Public Entrepreneurship: Public institutions at different levels may start an enterprise.
They may embark an enterprise in the fields of process development, developing new
service areas, provide facility in business.
Virtual Entrepreneurship: Technological developments have introduced new
entrepreneurship areas in a virtual environment. Enterprise may be embarked as a
means of e-commerce or providing service.

12. Fundamental Features of Entrepreneurship
 An entrepreneur seeks for profit but has the risk of loss.
 An entrepreneur is the boss of his/her business but has
to be a employee and boss at the same time.
 The objective income of an entrepreneur depends on
capital structure of his/her business.
 An entrepreneur has to continue his/her business in the
periods of foundation and development. His/her own
gain comes later.
 Each enterprise has a significant place in business life
independent of the business scale. Whatever its scale, an
entrepreneur has many relations with the people from
private and public sectors.

13.  An entrepreneur must have knowledge and experience at
a certain level when he/she starts his/her own business.
Knowledge and experiences increase rapidly when
he/she carries on his/her own business.
 ‘Self-confidence’ is a great weapon for an entrepreneur.
This confidence gradually increase in business life.
 When an entrepreneur is in the process of starting
his/her own business, he/she becomes an effective
citizen who watches everything in many different fields at
the same time.
 Entrepreneurship is a permanent feature. Starting
business is the beginning of using entrepreneurship
features.
Fundamental Features of
Entrepreneurship

14. Fundamental Features of Entrepreneurship
 An entrepreneur should feel responsible for all
preliminary preparation and programs while starting
his/her own business.
 An entrepreneur should plan about when and where
to assign his/her personnel.
 An entrepreneur himself/herself should believe that
the business idea is applicable and convince the
others (family, partner, sponsor) when it is necessary.
 An entrepreneur should believe the idea of business,
have enough motivation to spend plenty of time and
money to start the business.
 While an entrepreneur seeks for the advantages of
his/her own business, he/she should consider the
difficulties and be prepared.

15. Defining the Characteristics of
Entrepreneurs
A strong will to succeed,
Challenging and
determination,
Desire and ability to take
responsibility,
Have initiative, ability to
make and implement the
decision,
Be able to direct people for
leadership and its
objectives,
Creativeness, ability to
anticipate the
opportunities,
Ability to work according
to a plan and do research,
Be able to work with the
others, trust them and give
confidence,
Knowing deficiencies and
limitations and make use of
suggestions
Be ready to work under
difficult conditions
Desire to improve
himself/herself,

16. Defining the Characteristics of
Entrepreneurs
Be kind to other people,
Be honest to other
people,
Be a good role model for
his/her employees and
other people,
Be able to cooperate
with the other people,
Trustable,
 A good listener and has
respect for the others’
views,
 Good-humoured,
optimistic,
 Be helpful for the people
who want to have a better
business,
 Quick-witted and accept
the new ideas,
 Well-balanced and
consistent in relationships
with the people,

17. Defining the Characteristics of
Entrepreneurs
Work hard,
Be fair to employees,
Accept responsibilities,
Accept mistakes,
Be skilled and good at
work,
Have exemplary habits at
work,
-Be good at assigning
authority and
responsibilities,
-Set goals,
-Organize and coordinate
group works according to
goals,
-Support work and
commitment among
employees.

18. THERE IS NO TYPICAL AND
SUCCESSFUL ENTREPRENEURS!!!
THERE ARE COMMON
CHARACTERISTICS OF
SUCCESSFUL
ENTREPRENEURS!

19. Profit
Avoiding standart wage
and income limitations
Independence
Avoiding the bureacratic
rules and oppressive
control system of
institutions
Self-Fulfillment
Avoiding the routine
and strifeless
business life
Benefits of Entrepreneurship
Why do you become an entrepreneur?
In order to
earn money
To be your own
boss
To enjoy life

20. Essentials of Entrepreneurial Idea
Being Innovative
and
Creative
Risk Taking
Being Proactive
Thinking
Competitive

21. Being Innovative
And
Creative
• It states searching for creative,
uncommon and new solutions for
problems and needs.
–These solutions can be defined as
using new products and services, new
technologies or production processes.

22. • It includes readyness to relate a
significant amount of resource to
an acceptable level of risk or
opportunities that have failure
possibility.
Risk Taking

23. It is a term related to practice.
Instead of following the others, it stands for
having the awareness that you have a more
concrete vision compared to your rivals and
taking responsibility, acting by making
necessary decisions without losing time.
Being Proactive

24. • It creates a healthy market environment in
terms of both businesses and consumers.
• Competition enables entrepreneurs to
produce quality products to attain a place in
the market, work efficiently and be consumer
oriented.
Thinking Competitive

25. Process of Entrepreneurship
Entrepreneur
• Dreamer
• Visionary
• Change Agent
• Lives in the
Future
• Sees Possible
Opportunities
Manager
• Planner
• Lives in the
Past
• Focuses on
Problems
• Organizer
• Seeks for
Trust
Technician
• Does the
Work and
Solves the
Problem
• Lives Today
• Takes the
Easy Way
• Content with
the Current
Situation

26. The Process of Entrepreneurship
Answers 5 Questions…
Where are the opportunities?
How can I use these
opportunities?
Which resources are
necessary?
What is the level of my control
on resources?
Which structure is convenient?

27. Entrepreneurial Process
Enviromental opportunities Identify the opportunities
Intrepreneurial people List the details
Business Ideas Find the related resources
Organizational context Apply
Resources
Input-Output Components of
Entrepreneurship
INPUTS

28. Frequency of entrepreneurship
The quantity and level of entrepreneurial events
Innovativeness / Risk taking / Leadership
Input-Output Components of
Entrepreneurship

29. FUNCTIONS OF
ENTREPRENEUR
Providing
Product
Diversification
Creating
Employment
Creating New
Markets and
Sales
Methods
Providing
Capital Stock
Organizing
and Providing
Production

30. As a result of increasing competition
conditions, entrepreneurs need
diversification and specialization.
Small businesses has the potential of
providing more production and product
diversification with less investment.
◦ Technological developments should be
followed closely,
◦ Businesses should follow product
development personally,
◦ Product diversification should make
marketing easier.
Providing
Product
Diversification

31. The products which make our lives easier are the results
of organizing and providing production efforts among
entrepreneurs.
Competitive environment encourages entrepreneurs to;
◦ Produce qualified and low-priced products and service,
◦ Lower the prices,
◦ Produce according to the needs of the society while
diversifying the products.
Organizing and
Providing
Production

32. Together with the fact that
entrepreneurship is an important factor in
creating employment, it is an important
effect that it can also change the features
of this employment.
Qualified personnel who is open to
innovations and comply with the
innovations are needed.
Creating
Employment

33. Together with the developing technology,
innovative entrepreneurs create new markets
with their new products
◦ Lowering the information and communication
costs,
◦ Increasing the accessibility to market and
competition,
◦ Diversifying products and services of e-
commerce,
◦ Inceasing the quality may result in decline of
prices.
Creating New
Markets and
Sales Methods

34. The amount of rising output in economy through
embarking new enterprises results in industrial
growth and profit improvement.
Using these profits for new investments provides
new employment areas and capital stock.
Entrepreneurship is one of the most important
factors in capital stock in terms of activating
necessary promotions and convenience
mechanisms.
Providing
Capital Stock