EDP INTRODUCTION

                                                     MARWARI COLLEGE RANCHI 
                                              (UNDER RANCHI UNIVERSITY ,RANCHI)
RAJU MANJHI 
DEP. OF B.Sc(CA) ,MCR
________________________________________________________________________________

SEMESTER : VI
BCA/IT/BCM 
SUBJECT : EDP


TOPIC : DEFINITION OF EDP :

Entrepreneurship

1.       Concept:           Entrepreneurship is derived from French root, which means to undertake. But people today call it by various names - adventuresome (to start something different from others), risk taking, thrill seeking (much of up’s and down’s), innovating (something new).

Hence the word entrepreneurship in today’s concept can be called an event of adventuresome which takes risks, seeks thrills and innovative.

I.        According to Higgins: Entrepreneurship is the function of seeking investment and production opportunity, organizing an enterprise to undertake a new function process, raising capital, hiring labor, arranging supply of raw materials, finding site, introduction of new technique and commodity, discovering new sources of raw materials and selecting top managers for the day-to-day operation of the enterprise.

Emphasis is given on entrepreneurship as an activity with the function of handling economic activity, undertaking risk,

creating something new and organizing and coordinating resources.

II.      In a conference on entrepreneurship held in US the definition is given like: Entrepreneurship is the attempt to create value through recognition of business opportunity, the management of risk taking appropriate to opportunity, and through communicative and management skills mobilize human, financial and material resources necessary to bring a project to the stage of fruit giving.

This definition associates entrepreneurship with any activity that gives value through recognition of business activity. This definition recognizes entrepreneurship -

·         with fusion of capital

·         with technology and human talent

·         as science and arts both (science because scope of development, arts because of scope of presentation)

III.   A H Cole: Entrepreneurship is the purposeful activity of an individual or group of individuals undertaken to initiate, maintain and aggrandize profit by production or distribution of economic goods and services.

Activity without purpose is not entrepreneurship. It is the activity to make money, which is entrepreneurship. (Economic good: where scope of profit is there).

1)    Characteristic: Its a fact that entrepreneurship is a multidimensional concept and its necessary to consider many factors and properties. So its required to understand or know the characteristic of entrepreneurship which are as follows:

a)    Innovation: Scheme Peter said entrepreneurship is a creative activity where an entrepreneur is basically an innovator who introduces something new in the economy, the innovation may be a production not yet applied or a product which consumers are not yet familiar with or a new source of raw material or a new market which has not been exploited so far.

                                                                                                                                                                           

b)    High Achievement: It’s stressed that the needs for achievement or the achievement orientation are the most directly relevant factors for explaining economic behavior. This motive is defined as the tendency to strive for success in situation involving an evaluation of one’s performance in relation to some standard excellence.
[Expected performance EP] - [Actual performance AP] = [Area of concern AC].

c)     Organization building function: Entrepreneurship the skill to build an organization. Organization building ability is the most critical skill required for individual development; this skill means ability to multiply oneself by effectively delegating responsibility to others.

d)    A function of group level pattern: Scheme Peter said “the entrepreneurship characters are found in clusters which may qualify themselves as entrepreneur groups. This entrepreneurial activity is generally found or generated by the particular family background, experience as a member of certain group or as a reflection of general values.”

e)     A function of management skills and leadership: Management skills and the leadership qualities are the most important factors of entrepreneurship. Financial skills are only of secondary importance, because an entrepreneur is a person who becomes an industrial entrepreneur and have more than the drive to earn profits and amass wealth. He must have ability of manager hence he identifies different types of business leadership namely: merchant money, leaders, managers and entrepreneurs.

Gap filling function: The routine entrepreneurship is associated with the managerial function of the business whereas the new entrepreneurship is innovative in nature. The most significant feature of entrepreneurship is gap filling. It’s the job of an entrepreneur to fill the gap or make up the deficiency, which always exists in the knowledge about the product function. Areas in contrast, innovations require creativity and such creative individuals cause economic growth.

f)     A function of social, political and economic structure:

A function of religious belief: Business with spiritual capitalism. It’s very important in

g)     this connection that our spiritual capitalism guides our attitudes and attitude is nothing but our mindset, which is involved in the starting of an enterprise. More a person has belief in religion more there will be impact on enterprising culture.