Meaning and Definitions of Entrepreneur

ENTREPRENEUR

Generally speaking, entrepreneur refers to a person who establishes his own business or industrial undertaking with a view to making profit. An entrepreneur is considered to be an originator of a business venture. He takes the role of an organizer in the process of production.

            The word ‘Entrepreneur’ is derived from the French word ‘Enterprendre’ meaning to undertake. In fact, in the 16^th century, the Frenchmen who undertook military expeditions were referred to as ‘Entrepreneurs.’ Later on, in the 18^th century, this term got associated with persons who started their own enterprises. Richard Cantillon, an Irish man living in France, was the first economist who introduced the term ‘entrepreneur’ referring to the risk taking function of establishing a new venture.

Definitions

            Various experts have defined the term entrepreneur in different words. Some of the definitions are as follows:

            According to Collins Cobuild English Language Dictionary, 1987, “An entrepreneur is a person who sets up business deals in order to make a profit.”

            According to J.B.Say, “an entrepreneur is the economic agent who unites all means of production”…

            Richard Cantillon says, “All persons engaged in economic activity are entrepreneurs.”

            In the words of Quesnary, “A rich farmer is an entrepreneur who manages  and makes his business profitable by his intelligence and wealth.”

            J.A.Schumpeter is of the view that, “A person who introduces innovative changes is an entrepreneur and he is integral part of economic growth.”

           

            According to Webster, “Entrepreneur is one who assumed risk and management of business.”

In the word of Walker, “True entrepreneur is one who is endowed with more than average capacities in the risk of organizing and coordinating various factors of production.”

Peter Drucker say, “Entrepreneur is one who always searches for change, responds to it and exploits it as an opportunity. Innovation is a specific tool of entrepreneurs, the means by which they exploit change as an opportunity for different business of service,”

Dewing has rightly put it as follows: “The function of entrepreneur is one that promotes ideas into business,”

Thus, an entrepreneur is always action-oriented. He has the ability to visualise the necessary steps involved from idea generation to its actualization. He is both a thinker and doer; planner and worker. He accepts risk and manages it. All the above definitions portray an entrepreneur as an initiator of action, stimulator of social economic change and a harnesser of resources.

Source:Entrepreneurship Development by E.Gordon & K.Natarajan

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