The Concept of Entrepreneurship

The Primary objective of developing countries like India is to achieve rapid, balanced and sustained rate of economic growth. Hence efforts are directed towards the creation of conditions in which a fast development of productive resources can take place.

  Industrialisation accelerates economic growth, increases national income, brings about structural changes in the economy , induces social changes and promotes entrepreneurship . Industrialisation results from the interaction of technological change, innovation, entrepreneurial growth , specialization and trade.

An entrepreneur is one of the important segments of economic growth. The need for a broad based entrepreneurial class in India arises from the need to speed up the process of activating the factors of production, leading to higher rate of economic growth , dispersal of economic activities development of backward and tribal areas, creation of employment opportunities, improvement in the standard of living of the weaker section of the society and involvement of all sections of the society in the process of growth.

Who is an Entrepreneur ?

     Basically, an entrepreneur is a person who is responsible for setting up a business or an enterprise. In fact , he is one who has the initiative , skill for innovation and who looks for high achievements. He is a catalytic agent of change and works for the growth of people.
     An entrepreneur is some one who identifies an opportunity , collects the money and other resources needed to exploit that opportunity and takes some or all of the risks associated with industrial or business projects.

About Business

Business is an economic activity, which is related with continuous and regular production and distribution of goods and services for satisfying human wants.
All of us need food, clothing and shelter. We also have many other household requirements to be satisfied in our daily lives. We met these requirements from the shopkeeper. The shopkeeper gets from wholesaler. The wholesaler gets from manufacturers. The shopkeeper, the wholesaler, the manufacturer are doing business and therefore they are called as Businessman.

Definitions of Business

Stephenson defines business as, "The regular production or purchase and sale of goods undertaken with an objective of earning profit and acquiring wealth through the satisfaction of human wants."
 s conducted."

Lewis Henry defines business as, "Human activity directed towards producing or acquiring wealth through buying and selling of goods."
Thus, the term business means continuous production and distribution of goods and services with the aim of earning profits under uncertain market conditions.

Features of  Business  :

1. Exchange of goods and services

All business activities are directly or indirectly concerned with the exchange of goods or services for money or money's worth
  

2. Deals in numerous transactions

In business, the exchange of goods and services is a regular feature. A businessman regularly deals in a number of transactions and not just one or two transactions

3. Profit is the main Objective

The business is carried on with the intention of earning a profit. The profit is a reward for the services of a businessman.

4. Business skills for economic success

Anyone cannot run a business. To be a good businessman, one needs to have good business qualities and skills. A businessman needs experience and skill to run a business
 

5. Risks and Uncertainties

Business is subject to risks and uncertainties. Some risks, such as risks of loss due to fire and theft can be insured. There are also uncertainties, such as loss due to change in demand or fall in price cannot be insured and must be borne by the businessman.

6. Buyer and Seller

Every business transaction has minimum two parties that is a buyer and a seller. Business is nothing but a contract or an agreement between buyer and seller.

7. Connected with production

Business activity may be connected with production of goods or services. In this case, it is called as industrial activity. The industry may be primary or secondary.

8. Marketing and Distribution of goods

Business activity may be concerned with marketing or distribution of goods in which case it is called as commercial activity

9. Deals in goods and services

In business there has to be dealings in goods and service.

10. To Satisfy human wants

The businessman also desires to satisfy human wants through conduct of business. By producing and supplying various commodities, businessmen try to promote consumer's satisfaction.