The term entrepreneur comes from the French and translates "between-taker" or "go-between." Earliest Period: In this period the money person (forerunner of the capitalist) entered into a contract with the go-between to sell his goods. While the capitalist was a passive risk bearer, the merchant bore all the physical and emotional risks. Middle Ages: In this age the term entrepreneur was used to describe both an actor and a person who managed large production projects. In such large production projects, this person did not take any risks, managing the project with the resources provided. A typical entrepreneur was the cleric who managed architectural projects. 17th Century: In the 17th century the entrepreneur was a person who entered into a contract with the government to perform a service. Richard Cantillon, a noted economist of the 1700s, developed theories of the entrepreneur and is regarded as the founder of the term. He viewed the entrepreneur as a risk taker who buy at a certain price and sell at uncertain price, therefore operating at a risk. 18th Century: In the 18th century the person with capital was differentiated from the one who needed capital. In other words, entrepreneur was distinguished from the capital provider. Many of the inventions developed during this time were unable to finance invention themselves. They were capital users i.e. entrepreneurs, not capital providers i.e. venture capitalists. A venture capitalist is a professional money manager who makes risk investments from a pool of equity capital to obtain a high rate of return on investments. In the late 19th and early 20th centuries , entrepreneurs were viewed mostly from an economic perspective. The entrepreneur contributes his own initiative, skill and ingenuity in planning, organizing and administering the enterprise, assuming the chance of loss and gain. In the middle of the 20th century, the notion of an entrepreneur as an innovator was established. Innovation , is the act of introducing something new, is one of the most difficult tasks for the entrepreneur. The Maina Justus THE NATURE AND CONCEPT OF ENTREPRENEURSHIP ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
ability to innovate is an instinct that distinguishes human beings from other creatures and can be observed throughout history. Definition of Entrepreneur The concept of entrepreneurship from a personal perspective has been explored in this century. This exploration is reflected in the following three definitions of an entrepreneur: In almost all definitions of entrepreneurship, there is agreement that we are talking about a kind of behavior that includes: 1. Initiative taking. 2. The organizing and reorganizing or social or economic mechanisms to turn resources and situations to practical account.
You've reached the end of your free preview.
Want to read all 20 pages?