Meaning Of Terms Used In Entrepreneurship

i) Entrepreneurship

The term entrepreneurship has been described by different people in different ways.

Entrepreneurship is the process of scanning the environment in order to identify a business opportunity, gathering resources with the aim of establishing a profit making enterprise, under conditions of risk.

The concept of entrepreneurship became clear due to the researches by scientists like Mc Clelland(1969) who stressed need for  achievement motive, Schumpeter(  ) who prioritized new combinations of means of production   by which there occurs disequilibrium, Cantillon  who emphasized the functions of risk taking and uncertainty bearing, Drucker who stressed  on ‘systematic innovation’ consisting purposeful and organized search for changes among other scholars.

ii) Entrepreneur

The term entrepreneur is coined from a French verb ‘entreprendre’ which means to undertake. Various scholars have defined the term entrepreneur in different ways but all place emphasis on the entrepreneur;

1. Bringing innovation and creativity into the enterprise.
2. Taking calculated and moderate risks and
3. Facing uncertainties

An entrepreneur is someone who detects a previously untapped opportunity to make some profits (either by lowering the costs of producing the existing goods /services or by creating new ways for people to satisfy their needs or wants through new products). They then brings together the necessary factors of production to exploit these opportunities.

Richard Cantillon defines an entrepreneur as a person who buys factor services at “certain” prices, with a view to sell their product at “uncertain” prices in the future.

David McClelland defines an entrepreneur as a person with a  high need for achievement, someone who has control over the means of production and produces more than they can consume in order to sell (or exchange) it for income.

Joseph Schumpeter defines an entrepreneur as a person who carries out new combinations of means of production within an organization, while distorting the routine of the existing products/services, to set up new products and services.

iii) Intrapreneurship

It is the practice of entrepreneurship by employees within an organisation. Intrapreneurship is a novel way of making organisations more profitable where imaginative employees entertain entrepreneurial thoughts. It is a significant method for companies to reinvent themselves and improve performance.

iv) Intrapreneur

An intrapreneur is an employee who uses entrepreneurial skills to generate profits for the venture they works for.

v) An enterprise

It is a business organisation that provides goods and services to make profits and has growth potential.

A business enterprise is a legally recognised organisation designed to provide goods and/ or services to consumers.

vi) Business person

A person who undertakes any business activity for the purpose of making profit