Page 12 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Unit 1: Entrepreneurship: A world of Opportunity

Notes

Caselet Kudos to Modern Entrepreneurs

s the concept of entrepreneurship new to India? At a superficial level it seems to be as
old as the Gupta and Chola dynasties, which traded spices with the rest of the world,
Ifollowed by the Mughals and the Britishers. But during all these eras, entrepreneurship
was more about creation and accumulation of wealth in the hands of few. The essence of
entrepreneurship is creation of wealth - Yes, not mere accumulation, but rather distribution
of wealth. And when it comes to distribution of wealth none of the dynasties and the
rulers of the past pass the qualification. In this context, it is only the entrepreneurs of the
post-liberalization era who fit the bill. Entrepreneurs of the recent era not only work for
their own growth but also for the growth of all those who are associated with them.
Narayana Murthy of Infosys is a good example for this. Narayana Murthy not only created
wealth (the Infosys) but also distributed the fortune of Infosys to all its members by
introducing ESOP (Employee Stock Option Plan) through which he made all its employee
as partners in growth and development. He recently retired from the post of CEO after
attaining the age of 60 and made way for the younger generation. Hence the essence of
entrepreneurship is not creation and accumulation of wealth but distribution of wealth
amongst all those who are associated with the business.
Source: Lall.Madhurima, Sahai.Shikha (2008), “Entrepreneurship,” Excel Books Pvt.Ltd.
The entrepreneurs have tried to accelerate the economic development by means of establishing
their own enterprises. By allocating resources properly, that is, by using various productive
factors, they made endeavours to accelerate the pace of development.

The entrepreneurs have been playing the important role sometimes as economic agents and
sometimes as innovators. Up to the 19th century, their role was restricted to the sphere of risk-
taking, decision-making and economic agency propounded by Cantillon, Adam Smith, J.B. Say
and J.S. Mill. But the role of an entrepreneur as innovator was first recognised by Joseph
Schumpeter.

Self Assessment

Fill in the blanks:
9. Entrepreneur means the person who undertakes the …………. of new enterprise.
10. An entrepreneur is regarded as the ……………….… who converts the resources into useful
goods and services, thus creating the circumstances leading to industrial growth.
11. According to modern management experts, entrepreneurship can be considered as a
………………….. encompassing an individual’s pursuit of opportunity irrespective of the
resources controlled.

1.4 Characteristics of an Entrepreneur

Entrepreneurs possess the following vital characteristics:

1. An especially skillful person: The entrepreneur is recognized as a person having a special
skill and at the same time a person providing others for motivation. He may be either a
single individual or an individual in a group. Whatever he may be, he possesses that
special skill which is not generally found in common man.

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