Page 35 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Entrepreneurship and Small Business Management

Notes 2.4 Summary

In the initial stages of economic development, entrepreneurs tend to be shy and humble
but as the development process picks up speed, they tend to become more enthusiastic and
confident. They help make the business environment healthy and development oriented.
Highly enthusiastic and innovative entrepreneurs exist only in developed countries as
level of their -economic and technological development has reached a certain level whereas
in developing and under-developed countries, imitative entrepreneurs are more successful.

Business entrepreneurs are those entrepreneurs who conceive the idea of a new product or
service and then translate their ideas into reality. Entrepreneur examines the various
possibilities of sources of finance, supply of labour, raw-materials or finished product as
the case may be.
A trading entrepreneur has to be creative enough as he has to identify the market. He has
to identify potential market, create demand through extensive advertisement of his product
and thus inspire people to buy his product.
An industrial entrepreneur has the ability to convert economic resources and technology
into a considerably profitable venture. Manufacturer of leather products, textiles,
electronics, food items and the like are industrial entrepreneurs.
Corporate entrepreneur is the one who plans, develops and manages a corporate body.
He is a promoter, an essential part of board of directors, an owner as well as an entrepreneur.
He gets his corporate body registered under the requisite Act which gives his company
the status of separate legal entity.
Induced entrepreneur is attracted by the various incentives, subsidies and facilities offered
by the government. ‘An entrepreneur is not born’ – this is no doubt true as every person
can be trained to become a good entrepreneur. Most of the entrepreneurs who enter into
business are induced entrepreneur as various kinds of financial, technical and managerial
facilities are provided by the government to promote entrepreneurship.
According to stages of development entrepreneurs can be: (a) First generation entrepreneur
are those entrepreneurs who do not possess any entrepreneurial background. They start
an industrial unit by means of their own innovative skills. (b) Second generation
entrepreneur are those entrepreneurs who inherit the family business firms and pass it
from one generation to another. (c) A classical entrepreneur is a stereotype entrepreneur
whose aim is to maximize his economic returns at a level consistent with the survival of
the unit but with or without an element of growth.
In developed countries, people are highly developed and consistently look forward for
change. They want to consume such products which do not commonly exist in the world.
They want progress as they have achieved high level of development. Innovating
entrepreneur played a key role in the rise of modern capitalism, through their enterprising
spirit, hope of making money, and ability to recognize and exploit opportunities.
Fabian entrepreneurs are cautious and skeptical in experimenting change in their enterprises.
Such entrepreneurs are shy, lazy and lethargic. They are imitative by nature but are not
determined and also lack power. They imitate only when it becomes perfectly clear that
failure to do so would result in a loss of the relative position of the enterprise.

2.5 Keywords

Copreneurs: Copreneurs are the wife and husband running a business venture together.
Corporate: The term corporate relates to large companies, or to a particular large company.

30 LOVELY PROFESSIONAL UNIVERSITY