Entrepreneurship Development: Concept, Trend and Growths

Entrepreneurship Development: concept, Trend and Growths

Antara Zareen

Lecturer, BIBM

In recent past many countries of the world have experiences emergence of entrepreneurship development as a mean of rapid economic development. There was a myth that entrepreneurs are born and not created. But thoughtfully designed and systematically conducted entrepreneurship development programs can concrete the hypothesis that entrepreneurs can be created too.

People may have knowledge, experiences, money, management capability etc. but may lack the motivation for initiating new ventures. The entrepreneurial initiative is often associated with risk. Even if it is allied with risk, establishing new businesses with available resources is important for increasing productivity and economic development of a country.

Entrepreneurship Defined

The term entrepreneurship is derived from the French word "entreprendre" meaning to undertake or enterpriser. Entrepreneurship is essentially creative in nature. It is a matter of exploration and initiation of new things, new way of doing things, new methods of production, new use and new market for products or services. But scholars have explained entrepreneurship much above this general definition.

Entrepreneurship, according to Schumpeter, is essentially a creative activity, the entrepreneur being an innovator introduces something new into the economy, a method of production not yet tested by experience in the branch of manufacture, a product with which consumers are not familiar, a new source of raw material or new market hitherto unexplored and other similar innovations (Schumpeter 1955: 51-52). Federick Harbison states that the organization building ability is the most critical skill needed for the industrial development. According to him, entrepreneurship means the skill to build an organization (Harbison 1956: 364).

However, entrepreneurship is commonly understood as an act of drive, initiative, organized effort and achievement-oriented outlook to perform specific function for undertaking productive activities and the capacity to bear associated risk and uncertainty (Rahman 1985: 105). Obviously, entrepreneurs are keystones in a private enterprise system. They are man of drive, ability, ambition and technical knowledge. They are man of drive, ability, ambition and technical knowledge. They emerge in the society by virtue of their personality characteristics with necessary support from the socio-economic environment of the country.

Who is an entrepreneur?

Generally a person who takes risk or has the capability of taking risk for developing or establishing new venture is an entrepreneur. This creation means creation of new opportunity or new utilities for his/her own development and for the welfare of human being. Actually entrepreneur means an organizer of an economic venture, especially one who organizes, manages and assesses the risk of a business.

Characteristics of an entrepreneur

* Self confidence

* Long term involvement

* Persistent problem solving

* Goal setting

* Moderate risk taker

* Dealing with failure

* Use of feed back

* Taking initiative and seeking personal responsibilities

* Use of resources

* Competing against self imposed standard

* Internal locus of control

* Tolerance of uncertainty and ambiguity

* Need for achievement

* Industriousness

Function of an Entrepreneur

* Risk taking

* Innovation

* Make realistic plan

* Perform legal formalities

* Communicate with relevant parties

* Reasonable distribution channel

* Development and extension of existing venture

* Management and marketing

Types of Entrepreneurship

* Administrative Entrepreneurship

* Opportunistic Entrepreneurship

* Incubative Entrepreneurship

* Imitative Entrepreneurship

* Acquisition Entrepreneurship

Dynamics of entrepreneurial development

There are four factors (broadly), which mainly influence the entrepreneurial development

* Individual

* Environment

* Socio-cultural factors

* Support system

Importance of Entrepreneurship in Economic Development

* Proper utilization of resources

* Creation of employment opportunity

* Use