The word originates from the French word Entreprendre which means "to undertake."

The term entrepreneur was first used by Richard Cantillon. In his essay on "The Nature of Commerce" (1755).

According to Richard Cantillon an entrepreneur was one who buys factor services at certain prices in order to combine them to produce a product and sell it at uncertain prices at the moment at which he commits himself to his costs.

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According to Jean Baptiste Say,
Entrepreneur is an economic agent
● who units all means of production
● land of one, labour of another and capital of yet another and
● thus produce a product.
● By selling the product,
● he pays rent of land; wages to labour, interest on capital and
● what remains is his profit.

Thus a capitalist provides finance whereas entrepreneur is an organizer. He coordinates, organize and supervise.

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According to Joseph. A. Schumpeter
An entrepreneur is an Innovator
● who innovates raises money,
● collect inputs organize talents,
● provides leadership and
● sets the organization in proper order.

Hence, Entrepreneur is a
● Uncertainty bearer (F. H. Knight)
● Organiser (J. B. Say)
● Innovator (Joseph A. Schumpeter)
● Industrialist (Adam Smith)
● Opportunist (Peter F. Drucker)

CONCLUSION: A person who tries to create something new, organizes production and undertakes risks and handles economic uncertainty involved in enterprise is an entrepreneur.

Example:
● JamshedJi Nusserwanji Tata,
● G.D. Birla,
● Jamnalal Bajaj,.
● Dhirubhai Ambani etc…

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An entrepreneur is a highly achievement oriented, enthusiastic and energetic individual, who has following characteristic:

1. Calculated Risk Taker
2. Innovator (Schumpeter)
3. Organiser (J.B. Say)
4. Uncertainty bearer
5. Creative
6. Self-confident
7. Optimistic (Positive Thinkers)
8. Decision maker
9. Action oriented
10. Visionary
11. Business planner
12. Opportunists
13. Stress taker
14. Leadership
15. A venture capitalist

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According to Marshall: Organisation and Management of the Productive Enterprise.
According to J.B. Say & Cantillon: Risk taking
According to Prof. B.R. Knight: Risk taking & Control.
According to Schumpeter: Innovation
According to Arthur H.Cole: Decision Making

So We can classify the function of an Entrepreneur under following heads:

(I) Entrepreneurial Function
(II) Primary Function
(III) Other Function

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(I) Entrepreneurial Function
● Idea generation
● Determination of objectives
● Raising of funds
● Procurement of raw material
● Procurement of machinery
● Market research
● Determination of form enterprise
● Recruitment of manpower
● Implementation of project

(II) Primary functions:-
● Planning
● Organizations
● Decision Making
● Management
● Innovation
● Risk Bearing
● Uncertainty Bearing (Trade, Credits, trends of market.)

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(III) Other Functions:-
● Diversification of production
● Expansion of the enterprise
● Maintaining cordial employer-employee relations
● Tackling of labour problems.
● Coordination with outside agencies.

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● Entrepreneurship is a process or course of action undertaken by entrepreneur to successfully run an enterprise

● According to H. Cole, "Entrepreneurship is the purposeful activity of an individual or a group or associated individuals undertaken to initiate, maintain and aggrandize profit by production or distribution of economic goods and services."

● Entrepreneurship refers to an action/process of entrepreneur (person) towards establishing an enterprise

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● Lack of viable concept
● Lack of market knowledge
● Lack of technical skills
● Lack of seed capital
● Lack of business know-how
● Campelemy Lack of motivation
● Social stigma
● Legal constraints and regulations
● Inhibitions due to patent

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● Employment Generation
● National Income
● Dispersal of Economic Power
● Balanced Regional Development
● Harnessing Locally Available Resources and Entrepreneurship
● Reducing Unrest and Social Tension Amongst youth
● Innovations in Enterprises
● Improvement in Living Standards
● Economic Independence

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● Selection of business
● Proper planning.
● Initial capital
● Determination of market demand
● Marketing of product
● Education and experience
● Joint initiative
● Employment
● Location of business

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The concept of entrepreneurship has a rich history. The term “entrepreneur” originated from the Old French verb “entreprendre,” which means “to undertake.” Here are some key points about its evolution:

1. Richard Cantillon (18th Century): The Irish economist Richard Cantillon is credited with introducing the term “entrepreneur.” In his seminal work, “Essay on the Nature of Trade in General,” Cantillon distinguished between wage earners with fixed incomes and those without fixed incomes. He placed entrepreneurs in the latter category, emphasizing their adventurous and volatile nature.

2. Adam Smith (1776): In “The Wealth of Nations,” the Scottish economist Adam Smith described entrepreneurs as intermediaries between other factors of production. They played a crucial role in fueling the division of labor and coordinating economic resources.
3. Jean-Baptiste Say: The French economist Jean-Baptiste Say emphasized entrepreneurs’ innovative nature. He believed they were uniquely capable of coordinating resources to meet market demands.
4. Joseph Schumpeter (20th Century): Schumpeter introduced the term “Unternehmergeist,” or “entrepreneur-spirit,” to describe a driving force of innovation. Entrepreneurs revolutionize economic structures, fostering constant change and progress.

In summary, entrepreneurs are risk-takers who organize, manage, and assume business risks to generate economic value. Their role has evolved over centuries, shaping economies and driving innovation.

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An entrepreneur is someone who organizes, manages, and assumes the risks of a business or enterprise. They create new ventures, often by identifying problems or opportunities and developing innovative solutions.

Entrepreneurs play a crucial role in economies, using their skills and initiative to bring new ideas to market.

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Enterprise and Entrepreneur are two distinct terms that refer to different aspects of the business world. Here are the primary differences between them:

1. Definition:

a. Enterprise: An enterprise is a large-scale organization or company engaged in commercial, industrial, or professional activities. It can be a corporation, a partnership, or any legal entity that operates in various sectors.
b. Entrepreneur: An entrepreneur is an individual who conceives, establishes, and manages a business venture, typically with innovative ideas and a high degree of risk-taking.

2. Role:

a. Enterprise: Enterprises are organizations or companies that can be of various sizes and structures. They may involve multiple entrepreneurs or business owners and can encompass a wide range of business activities.
b. Entrepreneur: An entrepreneur is an individual who takes on the primary role of initiating and driving a new business idea or startup. Entrepreneurs are often the founders of small or innovative businesses.

3. Ownership:

a. Enterprise: Enterprises can have various ownership structures, including public, private, or state-owned. Ownership may be dispersed among shareholders or concentrated in the hands of a few individuals or entities.
b. Entrepreneur: Entrepreneurs are typically the owners or co-owners of the businesses they establish. They have a significant stake in the success and decision-making of the venture.

4. Scale and Scope:

a. Enterprise: Enterprises are often large-scale operations with a broader scope, serving national or international markets. They may have diverse product lines or services and employ a substantial workforce.
b. Entrepreneur: Entrepreneurs typically start with smaller-scale businesses, often with a niche focus. Their operations may be localized or cater to specific target markets.

5. Risk and Innovation:

a. Enterprise: Established enterprises may focus on maintaining stability and minimizing risks. While they can innovate, their primary goal may be to sustain existing operations.
b. Entrepreneur: Entrepreneurs are known for their willingness to take risks and introduce innovative solutions. They often disrupt established industries with new ideas and approaches.

6. Decision-Making:

a. Enterprise: Decision-making within enterprises can involve multiple layers of management, shareholders, and stakeholders. It may follow a more structured and hierarchical process.
b. Entrepreneur: Entrepreneurs typically have a more direct role in decision-making, as they often have greater autonomy and control over their ventures.

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In summary, enterprises refer to established, often larger organizations, while entrepreneurs are individuals who initiate and manage business ventures, often with a focus on innovation and risk-taking. Enterprises can encompass a wide range of businesses, while entrepreneurs are central to the creation and direction of new ventures.

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7. Skills

a. Entrepreneur: The role of entrepreneur demands different types of personal skills.
b. Manager: A manager depends more on human relations and conceptual abilities.

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Entrepreneurial behavior refers to the actions, attitudes, and practices exhibited by individuals who create, manage, and grow businesses or ventures. These behaviors are characterized by a combination of traits, skills, and approaches that are essential for successfully navigating the challenges of entrepreneurship.

Entrepreneurs often exhibit distinct behavioral patterns that contribute to their success. Here are some key traits and behaviors commonly observed:

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1. Vision and Goal Orientation: Entrepreneurs are typically driven by a clear vision and set specific goals to achieve it. They focus their energy on reaching these objectives.

2. Risk-Taking: They are willing to take calculated risks, understanding that failure is often a part of the journey to success.

3. Adaptability: Successful entrepreneurs are flexible and can adapt to changing circumstances. They are open to new ideas and can pivot their strategies when necessary.

4. Persistence: They demonstrate resilience and persistence, pushing through challenges and setbacks to achieve their goals.

5. Creativity and Innovation: Entrepreneurs often think outside the box and come up with innovative solutions to problems.

6. Leadership and Team Building: They possess strong leadership skills and can build and motivate teams to work towards a common goal.

7. Continuous Learning: Entrepreneurs actively seek learning opportunities, continuously improving and reflecting on their experiences.

8. Networking and Relationship Building: Building and maintaining relationships is crucial for accessing resources and opportunities.