10 Concept of Entrepreneurship

[Priya]

10 Concept of Entrepreneurship

The concept of entrepreneurship is not new, Till 19th-century entrepreneur was regarded as the person taking risks, facing uncertainties and establishing Enterprises.



 However, since the very beginning of the 20th century, the entrepreneur was being accepted as an innovator also. Thus, the concepts of entrepreneurs have been changing with time and place.

In the modern perspective, entrepreneurship includes the establishment of the enterprise, management control, direction, along with bringing Novelty introduction, making various new improvements and making product changes, etc.

Concept of Entrepreneurship

In short, the 10 concepts of entrepreneurship are as follows:

1. Risk Bearing Concept

This is the premier and most popular concept. It was propounded by Richard Kantian, the French economist according to him, “entrepreneurship is a function of taking unlimited risks.”

This has revealed that the entrepreneur has to bear various types of risks for establishing the new enterprise and operating it. These risks are related to time changes and fluctuations in prices.

Frank and Knight have regarded entrepreneurship as the concept capacity bear uncertainties. Further, elaborating it they have made a slight differentiation between risk and uncertainty.

According to them, “Uncertainty bear risk, which can neither be predicted nor insured. The capacity to bear such risks and providing the guarantee against uncertainty is entrepreneurship.”

2. Innovative Concept

The propounder of the innovative concept is Joseph Schumpeter. His assumption is that “entrepreneur is developed economy is that person whose parents something new in the economy.”

In 1934, he turned this concept as innovation. Peter F. Drucker is also a supporter of this concept. He is of the view that “innovation is a specific tool of entrepreneurship.”

In this concept, entrepreneurship has been regarded as the adaptation of various innovations in industries, new production system or techniques, new products, new markets, new marketing methods, new qualities of raw materials, new packaging and new mixture on methods are used.

Hence, this is regarded as a modern entrepreneurship concept.

3. Managerial Skill Concept

The Scholars supporting this concept have turned entrepreneurship as the ability of managerial skills. J.S. Mill has viewed entrepreneurship as the ability for inspections, controls, and direction.

Similarly, The noted economist, Marshal has regarded Entrepreneurship as Managerial skill, along with the capacity to bear the risks.

4. Creative and Leadership Concept

Among the supporters of this concept, J. Schumpeter has regarded entrepreneurship as a creative activity. According to Richman and Copen, “entrepreneurship is the function of progressive leadership.”



Similarly, Fredric Harbinson is of the view that “entrepreneurship is the quality of developing resources of the institution, developing human capacity, performing creative activities and coordinating new thoughts.”

He is of the opinion that new thoughts emerge due to creativity, which may be put to economic use, by efficient leadership. Creativity activities also expand due to high-level entrepreneurship.

5. High Achievement Capacity Concept

Mcclelland is among the important Scholars to accept this theory. He is of the view that “entrepreneurship is high achievement capacity concept, for which capacity of making innovations and taking the decision during risks is essential.” Under the assumption, he has mentioned two characteristics of entrepreneurship:

    Ability to perform work with the latest method.
    Ability to take decisions during uncertainties.

Besides, he has also assumed that inspiration for high-level achievements makes a man an entrepreneur.

6. Professional Concept

Modern management experts accept entrepreneurship as a professional concept. They are of the view that the entrepreneurship may be developed through education and training.

Being a managerial ability it may be learned by education and training, similarly entrepreneurship attitude maybe also be developed by education and training. That is why Governments and private organizations conduct various training programmes for entrepreneurial ability development.

7. Organisation and Coordination Concept

According to J.B. Say, who is the strong supporter of this scheme, “entrepreneurship is that economic component which organizes and coordinates various sources of production.” J.E. Specnek has treated entrepreneurship, as an “ability to organize Enterprise.” 20 Types of Entrepreneurs (Informative Explained).

8. Business Oriented Concept

Under this concept, entrepreneurship is expressed as the business-oriented entrepreneurial attitude of the individuals, that inspires them to become entrepreneurs, to do the business thinking, to formulate plans and programmes and to establish Enterprises

9. Result Oriented Concept

According to this concept, entrepreneurship is called result oriented in the modern age.

Now, it is not very important, what efforts have been made for obtaining the goals or how much hard labour has been put, more important is what has been the result? In the business world, only who succeed in achieving the Goals is recognized as an entrepreneur.


10. Personality, Identity or Role Transformation Process Concept

According to professor Udai Pareek and Nadkarni, “entrepreneurship is not only to adopt new works and behavior, but it is also the transformation of personality and to establish a new identity through that.”

Source: https://www.googlesir.com/concept-of-entrepreneurship/