The purposeful activity of an individual or group of associated individuals,
undertaken to initiate, maintain or aggrandise profit by production or distribution of
Creating something new, organizing, co-ordinating and undertaking risk and
• Entrepreneurs mobilize the idle savings of the public through the
issues of industrial securities.
• Investment of public savings in industry results in productive
utilization of national resources.
• Thus, an entrepreneur is the creator of wealth.
Generate employment opportunities
• Entrepreneurs generate employment both directly and indirectly.
• Directly, self-employment as an entrepreneur offers the best way for
independent and honorable life.
• Indirectly, by setting up large and small scale business units they offer
jobs to millions.
• Thus, entrepreneurship helps to reduce the unemployment problem
in the country.
Balanced regional development
• Entrepreneurs in the public and private sectors help to remove
regional disparities in economic development.
• They set up industries in backward areas to avail various concessions
and subsidies offered by the central and state governments.
• Public sector steel plants and private sector industries by Tatas, Birlas
and others have put the unknown places on the international map.
These factors are important in influencing the economic stability and
growth of a country.
• Capital (to buy land, RM,create product and services)
• Labour (Skilled labour, quality and quantity)
• Infrastructure (eg: Shipping facilities)
• Raw material ( eg: Furniture industry)
Non- economic factors
• Cultural : (The cultural values of a country also impact the growth of
entrepreneurship. If the culture has a leaning toward the growth of
the economy and money-making business, there are higher chances
of entrepreneurs flourishing in the country)
• Social : An Entrepreneurial Venture Has The Ability To Grow More In
Places Where The Environment Is Flexible And Liberal. Every Society
Formulates Its Own Norms, Rules And Regulations. These Values, In
Turn, Act As A Social Environment For Entrepreneurial Activities.
• Entrepreneur Should Always Try To Work Keeping In Mind That The
Social Values And Rules Are Complied With While Fulfilling Business
Objectives, Or Earning Profits Through The New Idea.
• Psychological factors (need for achievement, growth, motivation for
both employees & entrepreneur)
• Political factors (govt.subsidies, sez, social schemes)
• Personal factors (ability, creativity of the individual)
Assignment : 1
1) The common personality traits of a successful entrepreneur.
(Submit on 28th March 2023)