Mgmt study material created/ compiled by - Commander RK Singh
1980 – Karl Vesper – Behaviour Perceptions– Economists, Psychologists, Businessmen,
1983 – Gifford Pinchot – Intrapreneur
1985 – Robert Hisrich – Creating something different with value, devoting time & effort,
assuming risks (FPS); results– rewards and satisfaction (Leadership & Vision)
Please note that key word in Entrepreneurship is RISK. Any venture where risk is mitigated
due to any reason does not qualify to be called entrepreneurship.
Entrepreneurs are people who create new business activity in the economy and bear
considerable business risk in the process. This is often done by starting new companies.
But they can also create new business activity by introducing a new product or creating a
So m e o t he r r e la t e d f a c ts a b o u t E ntr e p r e n e ur s hi p
Entrepreneurs are made; they aren’t born. (This statement is more of public posturing than
fact. Essential characteristics of an entrepreneur, i.e., ambitiousness, capacity to take moderate
risks, organizing ability, persistence, vision, etc, can not be taught in any school. These are inborn
characteristics of a person. Know this fact but don’t write it in the answer sheet).
Incubator organization is an organization that supports entrepreneurs
Venture Capitalists – VCs are like bankers, but since they aren’t subject to strict
regulations as bankers, they take greater risks in making investments – organized as
formal businesses, they expect to reap 25– 30% annually and get more actively
involved in the ventures than bankers do.
Angels are private individuals who invest directly in firms and receive equity stake
in return – they act as advisers to founders.
Don’t confuse entrepreneurship with running a business. Every person launching a
business is not an entrepreneur. A businessman’s son taking over his established
family business or starting another factory in neighbouring town is no entrepreneur
because he is well trained in matters of that business by virtue of constant exposure
since childhood. He has support of family and friends in terms of finance and
advice should going gets tough. With his training, professional and personal
contacts and financial backing, risk element and uncertainty are almost missing in
such business. Whereas, a farmer’s son, venturing to open a grocery or even
‘pan shop’ is an entrepreneur because he is stepping into an uncharted territory of
which he has little/no training and therefore bears considerable risk.
Page 3 of 83 - Entrepreneurship Mgmt (Ver 1.1 – 06.04.2007)
Jamnalal Bajaj Institute of Mgmt Studies