The concept entrepreneurship has evolved economic circle since eighteenth centuryince has been an exponent organization the nation. Entrepreneurship, an urge to take risk in face of uncertainties, and cultivates intuitive power for new inventions and development process. With innovations and added skills’, it adds value to the organization’s propositions. herefore entrepreneurship simply as an emblem of innovation but prime contributor in the overall process of business organizational structure and economic development. The role of entrepreneurship is as equal in maintaining the growth process in the large-scale industries as in the growth of small-scale industries here are different functions that entrepreneurs have to perform.
They have to develop their innovative and organizational skills as well as follow the current market trend to enable the to beat their competitors. The set up of small-scale industries is different from the large scale and their issues if not very different yet are not similar too then the issues facing large scale industries, and so are the responsibilities of an entrepreneur. There are various ways through which an entrepreneur with minimum resources at his disposal can turn unfortunate situations and hurdles towards the organization’s advantage and here the ability of an entrepreneur is judged.
It is, which enable him to handle contemporary issues and create an environment for future entrepreneurial development programs. Before answering the questions to the above answers there is a need to understand the way entrepreneurship has developed itself. There are indications that entrepreneurship began to make its presence felt in the fourteenth century itself when there was a system of collecting taxes. Collecting taxes was the duty of the tax contractor when he was collecting taxes at his own risk.
If they collected the taxes more than the sum paid for their licenses, they would make profits by keeping the excess themselves. This was the process of entrepreneurship but they were unaware of the word and its concept. It was in the 18th century that French economist Richard Cantillon coined the word entrepreneur and since then it has become the most important topic of discussion among the contemporary economists. He defined entrepreneur as an “agent who buys means of production at certain prices in order to combine them” into a new product.
(Schumpeter, 1989, p. 254) J. B. Say, the French economist soon thereafter, improvised definition of Cantillon’s by bringing in the idea that entrepreneurs should be leaders. Say added that an entrepreneur was a person whose job was to bring other people onto one platform to form a single productive organism. (Schumpeter, 1989) By the nineteenth century, British economists like Adam Smith, David Ricardo, and John Stuart Mill also described entrepreneurship, but they explained it under the broad perspective namely business management.
On the other hand, Smith and Ricardo did not give much important role to entrepreneurship, while for Mill entrepreneurship was very crucial aspect for the overall growth of economy. t was Alfred Marshall who first officially recognized the importance of entrepreneurship in any production process in 1890. Marshall made us realize that there are four factors of production: land, labor, capital, and organization, but it is an organization that co-ordinates different factors of production and it is an entrepreneur that is a driving force between different factors of production.
To fulfill this aim, Marshall believed that entrepreneurs must have a thorough understanding about their industries and must have a natural capacity to lead. Besides, they must have an ability to perceive the changes in the supply and demand and take risks accordingly. (Marshall, 2006)