25-08-2017, 09:32 PM
ENTREPRENEURSHIP
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“Entrepreneur is an individual who undertakes the formation of an organisation for commercial purposes by recognizing the potential demand for goods and services and thereby acts as an economic agent and transforms demand and supply.” - Adam smith
Entrepreneurship is the process that involves all actions an entrepreneur undertakes to establish an enterprise to give reality to his business ideas.
An Entrepreneur is a person who starts an enterprise .The process of creation is called entrepreneurship . The entrepreneur is the actor and entrepreneurship is the act .The outcome of the Act and the actor is called as enterprise.
ENTERPRISE
An Enterprise is a business organisation that is formed and which provides goods and services, create jobs , contributes to national Income, exports and overall economic development.
CHARACTERSTICS OF AN ENTREPRENEUR
INNOVATION
RISK TAKING
DECISION MAKING
BUSINESS PLANNING
LEADERSHIP
ORGANISATION BUILDING
SMALL ENTERPRISE
A small enterprise may be defined in terms of size. Once an enterprise or unit goes beyond a certain size, it is no longer classified as small .
Various criteria are important for understanding the size:
(a) the number of persons employed
(b) the amount of capital invested
© the value of annual turnover
CHARACTERSTICS OF SMALL ENTERPRISE
Closely held ownership :Capital is supplied by an individual or a small group of individuals. Hence ownership is within hands of individual , partners or a private limited company.
Local area of operation : The area of operation is local only as they have generally less capital and less market facilities .
Location : These are generally located near the centers of consumption / sources of raw material.