Entrepreneurship: What is the Modern Definition of Entrepreneur?

Entrepreneurship: What is the Modern Definition of Entrepreneur?Entrepreneurship is a vital activity to bring about changes in the economy and society not only in a country but also of those in the world.

It causes initiation of all types of human activities in the society.

Entrepreneurship is that immense strength and spirit of humanity which made possible the great geographical discoveries of the world.

It is that astounding forces of man that indebted our civilization with varieties of products, among technologies, and breakthrough thoughts.

It affects all aspects of political-legal, sociocultural, technological, economic and demographical environment of life and society. Entrepreneurship is the pioneering force that connects the world societies with its activity of exchange from the early period of our human history.

It is a basic strength of the business organizations too. The provocation of change toward future business prosperity is the result of the entrepreneurial zeal of the people. Therefore entrepreneurship is a basic discipline to learn for the student of business.

Origin of Entrepreneurship

The term entrepreneurship is derived from a French word ‘Entreprendre’ which means ‘to undertake’, ‘to pursue opportunities’, or ‘to fulfill needs and wants through innovation and starring businesses’. The word first appeared in French dictionary in 1723.

It is believed that the Irish Banker operating in France, Ricardo Cantillon (Kent, 1984) was the first person who used the word ‘entreprendre’ in economics as “an agent who assembles material/inputs for producing goods at a specific price and through coordination of those inputs produces goods whose sales price is uncertain in comparison with production cost”.

It is also believed that the Frenchman J.B. Say (1824) first used the term ‘entrepreneur’ as an economic agent who brought together the factors of production in such a way that new wealth can be created.

Oxford English dictionary adopted the word ‘entreprendre’ as “entrepreneur” in 1897 and meant;

“director or manager of a public musical institution; one who gets up entertainments, especially musical performance”.

Webster’s Third New International Dictionary (1961) takes it as;

‘an organizer of an economic venture, especially one who organizes, owns, manages, and assumes the risk of a business’.

The Robert D. Hisrich and Michael P. Peters (1998) said,

“Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic and social risks and receiving the resulting rewards of monetary and personal satisfaction and independence.”

The writers conceive entrepreneurship as the devoted efforts of individuals for creating something of value to the people or to the society. They also believe that entrepreneurship is a rewarding activity.

It gives not only financial rewards but also freedom and personal satisfaction that are of immense reinforcement for the furtherance of entrepreneurial action. Entrepreneurship, in their view, is also a risk hearing activity.

Three types of risks are involved with it the financial, psychic and social risks. Entrepreneurship takes these risks and devoted efforts for having rewards by giving the mankind something of value.

Therefore, entrepreneurship entails missionary efforts that involve risks for the purpose of innovating something of value from which the entrepreneur will get financial and psychic rewards.