Alea Living

Entrepreneurship: Definition, Types, and Motivational FactorsDefinitionThe word entrepreneurship has been derived from a French root which means ” to undertake”. It is also called by various names, e.g. adventurism, risk taking, thrill seeking, innovating, etc.According to Higgins, ” Entrepreneurship is meant the function of seeking investment and production opportunity, organizing an enterprise to undertake a new production process, raising capital, hiring labor, arranging the supply of raw materials, finding site, introducing a new technique and commodities, discovering new sources of raw materials and selecting top managers of day-to-day operations of the enterprise.Jaffrey A. Timmons has defined entrepreneurship as “the ability to create and build something from practically nothing. Fundamentally, a human creative activity, it is finding personal energy by initiating, building and achieving an enterprise or organization rather than by watching, analyzing or describing one. It requires the ability to take calculated risk and to reduce the chance of failure?..”According guitar scales to A.H.Cole “entrepreneurship is the purposeful activity of an individual or a group of associated individuals, undertaken to initiate, maintain or aggrandize profit by production or distribution of economic goods and services.”Characteristics and SignificanceA Function of High Achievement: People having high need for achievement are more likely to succeed as entrepreneurs, according to McClelland. Motive is high achievement and profit is merely a measure of success and competency.Innovation: According to Schumpeter, entrepreneurship is a creative activity. An entrepreneur is basically an innovator who introduces something new into the economy.Organization Building Function: According to Harbison, Organization Building skill means the ability to ” multiply oneself” by effectively delegating responsibility to others.A Function of Managerial Skills and Leadership: Managerial skills and leadership qualities are more important than financial skillsA Function of Status Withdrawal: According to Hagen,” Creative innovation or change is the fundamental feature of economic growth.