This section helps you set up your business

and be a successful entrepreneur!

·      In this section you can learn how to write an effective and attractive business plan and how to write cash flows and also get.

· You can find out about different sources of funding for young entrepreneurs (an entrepreneur is somebody who has a business idea they want to put into action).

· The success stories of young achievers and entrepreneurs will also inspire you and help you to get ideas about setting up your own business. If you think your story would also inspire others please send it to us!

Tip of the month:     What and who is entrepreneur?  

Entrepreneur is a loanword from the French language that refers to a person who undertakes and operates a new enterprise or venture, and assumes some accountability for the inherent risks. Most commonly, the term entrepreneur applies to someone who establishes a new entity to offer a new or existing product or service into a new or existing market, whether for a profit or not-for-profit outcome. Business entrepreneurs often have strong beliefs about a market opportunity and are willing to accept a high level of personal, professional or financial risk to pursue that opportunity.

Research has demonstrated that there is such a thing as an "entrepreneurial type," with certain characteristics (such as having a father or a mother who was an entrepreneur) linked to the probability of someone being an entrepreneur themselves. There is little good evidence, however, that entrepreneurial type is linked to ultimate success of an entrepreneurial venture.

Defining entrepreneur

An entrepreneur is someone who organizes a system to create a product or service in order to gain profit. However though there is a general sense that entrepreneurship involves the establishment of a new venture while adopting some of the risk, there is no common definition as the word has been used many ways in many times. Perhaps the first person to create a theory about entreprenurs would be Schumpeter, although instead of using the French word adopted by the American literature, he used the German word "unternehmer".

Entrepreneur as a risk bearer

Richard Cantillon, an Irish man living in France was the first to introduce the term entrepreneur and his unique risk bearing function in economics in the early 18th century. He defined an entrepreneur as an agent who buys factors of production at certain prices in order to combine them into a product with a view to selling it at uncertain prices in future. Uncertainty is defined as a risk, which cannot be insured against and is incalculable. There is a distinction between ordinary risk and uncertainty. A risk can be reduced through the insurance principle, where the distribution of the outcome in a group of instances is known. On the contrary, uncertainty is a risk, which cannot be calculated. The entrepreneur, according to Knight, is the economic functionary who undertakes such responsibility of uncertainty, which by its very nature cannot be insured, or capitalized or salaried too. Mark Casson has extended this notion to characterise entrepreneurs as decison makers who improvise solutions to problems which cannot be solved by routine alone.

Entrepreneur as an organizer

Jean–Baptiste Say, an aristocratic industrialist, developed the concept of entrepreneur a little further. His definition associates entrepreneur with the functions of co-ordination, organization and supervision. According to him, an entrepreneur is one who combines the land of one, labour of another and the capital of yet another, and, thus, produces a product.

By selling the product in the market, he pays interest on capital, rent on land and wages to labourers and what remains is his or her profit.

Functional and indicative approach to entrepreneur definition

Mark Casson divides the approach of defining entrepreneur into two parts! Functional approach states that an entrepreneur is what entrepreneur does. The indicative approach provides a description of the entrepreneur by which he may be recognized. The indicative approach maybe more concrete: it can describe entrepreneur in terms of legal status, relation with other parties, position in society, etc. An entrepreneur is an individual whose specialism and economic contribution refer to allocation of factors of production.

Entrepreneur as a person willing to engage uncertainty

Frank Knight, in his seminal contribution to economics Risk, Uncertainty and Profit (1921), defines uncertainty as a primary attribute of his entrepreneurship theory. If there were no uncertainty no losses would be made. Risk is calculable, uncertainty is not. Entrepreneur is a person who is willing to put his career and capital on an uncertain venture.

Entrepreneur as a leader

More recently, researchers such as R. B. Reich have argued that leadership, management ability, and team-building should be added to the definition of entreprenership. Other scholars disagree, viewing management as separate from entrepreneurship.

For more visit: http://en.wikipedia.org/wiki/Entrepreneur

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