The concepts of entrepreneurship are not new Until 19th-century entrepreneur was regarded as the person taking risks, facing uncertainties and establishing Enterprises.
However, since the very beginning of the 20th century, the entrepreneur was being accepted as an innovator also.
Thus, the concepts of entrepreneurs have been changing with time and place.
From the modern perspective, entrepreneurship includes the establishment of the enterprise, management control, direction, along with bringing Novelty introduction, making various new improvements and making product changes, etc.
Different Concepts of Entrepreneurship
In short, the different concepts of entrepreneurship are as follows:
1. Risk Bearing Concept
This is the premier and most popular concept. “entrepreneurship is a function of taking unlimited risks.”
This has revealed that the entrepreneur has to bear various types of risks for establishing the new enterprise and operating it.
These risks are related to time changes and fluctuations in prices.
Entrepreneurship as the concept capacity bear uncertainties. Further, elaborating it they have made a slight differentiation between risk and uncertainty.
According to this, “Uncertainty bear risk, which can neither be predicted nor insured.
The capacity to bear such risks and providing the guarantee against uncertainty is entrepreneurship.
2. Innovative Concept
According to this concept, entrepreneur is a developed economy is that person whose parents something new in the economy.”
Innovation is a specific tool for entrepreneurship.
In this concept, entrepreneurship has been regarded as the adaptation of various innovations in industries, new production systems or techniques, new products, new markets, new marketing methods, new qualities of raw materials, new packaging and new mixture on methods are used.
Hence, this is regarded as a modern entrepreneurship concept.
3. Managerial Skill Concept
The Scholars supporting this concept have turned entrepreneurship as the ability of managerial skills.
Entrepreneurship as the ability for inspections, controls, and direction.
Similarly, entrepreneurship as a Managerial skill, along with the capacity to bear the risks.
4. Creative and Leadership Concept
According to this concept, entrepreneurship as a creative activity and it is the function of progressive leadership.”
Similarly, Entrepreneurship is the quality of developing resources of the institution, developing human capacity, performing creative activities and coordinating new thoughts.
He is of the opinion that new thoughts emerge due to creativity, which may be put to economic use, by efficient leadership.
Creativity activities also expand due to high-level entrepreneurship.
- 12 Qualities of Effective Leadership in an Entrepreneur.
- 15 Essential Elements of Creativity in Entrepreneurship.
5. High Achievement Capacity Concept
Entrepreneurship is a high achievement capacity concept, for which the capacity of making innovations and taking the decision during risks is essential.
Under the assumption, There is mentioned two characteristics of entrepreneurship:
- Ability to perform work with the latest method.
- Ability to take decisions during uncertainties.
Besides, he has also assumed that inspiration for high-level achievements makes a man an entrepreneur.
6. Professional Concept
Modern management experts accept entrepreneurship as a professional concept.
They are of the view that entrepreneurship may be developed through education and training.
Being a managerial ability may be learned by education and training, similarly entrepreneurship attitude maybe also be developed by education and training.
That is why Governments and private organizations conduct various training programs for entrepreneurial ability development.
7. Organisation and Coordination Concept
Entrepreneurship is that economic component that organizes and coordinates various sources of production. Entrepreneurship, as an “ability to organize Enterprise.
8. Business Oriented Concept
Under this concept, entrepreneurship is expressed as the business-oriented entrepreneurial attitude of the individuals, that inspires them to become entrepreneurs, to do the business thinking, to formulate plans and programs and to establish Enterprises.
9. Result Oriented Concept
According to this concept, entrepreneurship is called result-oriented in the modern age.
Now, it is not very important, what efforts have been made for obtaining the goals or how much hard labor has been put, more important is what has been the result?
In the business world, only who succeed in achieving the Goals is recognized as an entrepreneur.
10. Personality, Identity or Role Transformation Process Concept
Entrepreneurship is not only to adopt new works and behavior, but it is also the transformation of personality and to establish a new identity through that.
Thus, now you know the different concepts of entrepreneurship.