Entrepreneurship Development: Concept, Trend and Growths
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Entrepreneurship Development: concept, Trend and Growths
Antara Zareen
Lecturer, BIBM
In recent past many countries of the world have experiences emergence of entrepreneurship development as a mean of rapid economic development. There was a myth that entrepreneurs are born and not created. But thoughtfully designed and systematically conducted entrepreneurship development programs can concrete the hypothesis that entrepreneurs can be created too.
People may have knowledge, experiences, money, management capability etc. but may lack the motivation for initiating new ventures. The entrepreneurial initiative is often associated with risk. Even if it is allied with risk, establishing new businesses with available resources is important for increasing productivity and economic development of a country.
Entrepreneurship Defined
The term entrepreneurship is derived from the French word “entreprendre” meaning to undertake or enterpriser. Entrepreneurship is essentially creative in nature. It is a matter of exploration and initiation of new things, new way of doing things, new methods of production, new use and new market for products or services. But scholars have explained entrepreneurship much above this general definition.
Entrepreneurship, according to Schumpeter, is essentially a creative activity, the entrepreneur being an innovator introduces something new into the economy, a method of production not yet tested by experience in the branch of manufacture, a product with which consumers are not familiar, a new source of raw material or new market hitherto unexplored and other similar innovations (Schumpeter 1955: 51-52). Federick Harbison states that the organization building ability is the most critical skill needed for the industrial development. According to him, entrepreneurship means the skill to build an organization (Harbison 1956: 364).
However, entrepreneurship is commonly understood as an act of drive, initiative, organized effort and achievement-oriented outlook to perform specific function for undertaking productive activities and the capacity to bear associated risk and uncertainty (Rahman 1985: 105). Obviously, entrepreneurs are keystones in a private enterprise system. They are man of drive, ability, ambition and technical knowledge. They are man of drive, ability, ambition and technical knowledge. They emerge in the society by virtue of their personality characteristics with necessary support from the socio-economic environment of the country.
Who is an entrepreneur?
Generally a person who takes risk or has the capability of taking risk for developing or establishing new venture is an entrepreneur. This creation means creation of new opportunity or new utilities for his/her own development and for the welfare of human being. Actually entrepreneur means an organizer of an economic venture, especially one who organizes, manages and assesses the risk of a business.
Characteristics of an entrepreneur
Self confidence
Long term involvement
Persistent problem solving
Goal setting
Moderate risk taker
Dealing with failure
Use of feed back
Taking initiative and seeking personal responsibilities
Use of resources
Competing against self imposed standard
Internal locus of control
Tolerance of uncertainty and ambiguity
Need for achievement
Industriousness
Function of an Entrepreneur
Risk taking
Innovation
Make realistic plan
Perform legal formalities
Communicate with relevant parties
Reasonable distribution channel
Development and extension of existing venture
Management and marketing
Types of Entrepreneurship
Administrative Entrepreneurship
Opportunistic Entrepreneurship
Incubative Entrepreneurship
Imitative Entrepreneurship
Acquisition Entrepreneurship
Dynamics of entrepreneurial development
There are four factors (broadly), which mainly influence the entrepreneurial development
Individual
Environment
Socio-cultural factors
Support system
Importance of Entrepreneurship in Economic Development
Proper utilization of resources
Creation of employment opportunity