The concept of entrepreneurship has been around for a very long time. In the last century it has resurged as if a new discovery has been made. Usually any one who runs a business is called an entrepreneur. The more precise meaning of entrepreneur is one who creates his own business i.e. a person who organises, operates and assumes the risk of a business venture. An entrepreneur is a person who perceives a need and then brings together manpower, material and capital required to meet that need.

The concept of entrepreneurship; is an age-old phenomenon that relates the vision of an entrepreneur as well as its implementation by him. Entrepreneurship is a creative and innovative response to the environment. It is also the process of setting up a new venture by the entrepreneur. Entrepreneurship is a composite skill that is a mixture of many qualities and traits such as imagination, risk taking, ability to harness factors of production i.e. land, labour, technology and various intangible factors.

Entrepreneurship culture implies a set of values, norms and traits that are conducive to the growth of entrepreneurship. It is the organisational culture that focuses on new opportunities and creation of a set-up where these opportunities can be perused earnestly. An entrepreneur seeks the opportunities, looks for ways and means to capitalise on the newer opportunities by organising the structure and the resources and gaining control on them.

One universally accepted definition of ‘entrepreneur’ or ‘entrepreneurship’ is not available. Different experts have emphasised different aspects of an entrepreneur.

Economist Richard Cantillon describes Entrepreneur as a person who pays a certain price for the product to resell it at an uncertain price thereby making decision about obtaining and using resources while assuming the risk of enterprise. According to him Entrepreneur’s function is to combine factors of production into a productive organism. Entrepreneurs consciously make decisions about resource allocation. Smart entrepreneurs always look for the best opportunity of using resources for high commercial gain.

J. B. Say has described the economic role of an entrepreneur. In economics and commerce an entrepreneur makes economic progress – a real captain of industry.

According to Adam Smith, the father of political economy, the Entrepreneur has a role of an industrialist. In his book ‘Wealth of Nations’ he describes Entrepreneur as an individual who forms an organisation for commercial purpose. He is a proprietary capitalist, supplier or capital and at the same time a manager who intervenes between the labour and the consumer. Entrepreneur is one who has unusual foresight to recognise potential demand of goods and services. He is a change agent who transforms demand into supply. He is one who possesses certain art and skill of creating new economic abilities to fulfill them.

Peter Drucker who described the entrepreneurial role as one of gathering and using resources, mirrored this viewpoint, but he added, “resources, to produce results, must be allocated to opportunities rather than to problems.” In Drucker’s view, entreprenurship occurs when resources are redirected to progressive opportunities, not used to ensure administrative efficiency. This redirection of resources distinguishes the entrepreneurial role from that of the traditional management role, a distinction that Henry Ford actively followed and accepted.

The evolution of this concept of entrepreneurship has generated many definitions, but perhaps a recent one by writer Robert Ronstadt captures its essence. He defines it as, “The dynamic process of creating incremental wealth.” This wealth is created by individuals who assume major risks in terms of equity, time and carry commitment of providing value for some product or service. The product or service itself may or may not be new or unique but the entrepreneur must somehow infuse value by securing and allocating the necessary skills and resources.”

We can also understand the concept better by studying the following definitions:

An entrepreneur is a PERSON or group of people who decide to tap market opportunities. It must be clearly understood that the entrepreneurs are always of the “First Generation.”

Entrepreneurship is the ACTIVITY which leads the entrepreneur to look for opportunities, raise resources, create an organisation and provide leadership which may result in success or failure. This activity may result from self-motivation through awareness building programmes conducted by the government or non-governmental organisations who are working in this area. It can also be encouraged through interactions with successful entrepreneurs who inspire others as role models.

Enterprise is the ultimate object of the entrepreneur. It may begin with proprietorship. As the business grows it may take the form of a partnership, a private or a public limited company.