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Unit 9: Entrepreneurship and Interpersonal Communication

9.1.1 Concept of Entrepreneurship Notes

It has assumed super importance for accelerating economic growth both in developed and
developing countries. It promotes capital formation and creates wealth in country. It is hope
and dreams of millions of individuals around the world. It reduces unemployment and poverty
and it is a pathway to prosper. Entrepreneurship is the process of exploring the opportunities
in the market place and arranging resources required to exploit these opportunities for long
term gain. It is the process of planning, organising, opportunities and assuming. Thus it is a
risk of business enterprise. It may be distinguished as an ability to take risk independently to
make utmost earnings in the market. It is a creative and innovative skill and adapting response
to environment of what is real.

9.1.2 Promotion of Entrepreneurship
Given entrepreneurship’s potential to support economic growth, it is the policy goal of many
governments to develop a culture of entrepreneurial thinking. This can be done in a number
of ways: by integrating entrepreneurship into education systems, legislating to encourage risk-
taking, and national campaigns. An example of the latter is the United Kingdom’s Enterprise
Week, which launched in 2004.
Outside of the political world, research has been conducted on the presence of entrepreneurial
theories in doctoral economics programs. Dan Johansson, fellow at the Ratio Institute in Sweden,
finds such content to be sparse. He fears this will dilute doctoral programs and fail to train
young economists to analyze problems in a relevant way.
Many of these initiatives have been brought together under the umbrella of Global Entrepreneurship
Week, a worldwide celebration and promotion of youth entrepreneurship, which started in
2008.

Task What do you mean by entrepreneurship? Explain it.

9.1.3 Financial Bootstrapping

Financial bootstrapping is a term used to cover different methods for avoiding using the
financial resources of external investors. Bootstrapping can be defined as “a collection of
methods used to minimize the amount of outside debt and equity financing needed from
banks and investors”.

Did u know? The use of private credit card debt is the most known form of bootstrapping,
but a wide variety of methods are available for entrepreneurs. While
bootstrapping involves a risk for the founders, the absence of any other
stakeholder gives the founders more freedom to develop the company.
Many successful companies including Dell Computers and Facebook were
founded this way.

There are different types of bootstrapping:
• Owner financing
• Sweat equity

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