Manag., July-2018 – Q61 Multiple Choice Questions

Option : A
Explanation : Definitions of Entrepreneur by different authors:
1. According to J.B. Say, “An entrepreneur is an economic agent who unites all means of production, land of one, the labor of another and the capital of yet another, and thus produces a product. By selling the product in the market he pays rent of land, wages to labor, interest on capital and what remains is his profit”. Thus, an an entrepreneur is an organizer who combines various factors of production to produce a socially viable products.
2. According to Joseph Schumpeter, “An entrepreneur in an advanced economy is an individual who introduces something new in the economy—a method of production not yet tested by experience in the branch of manufacture concerned, a product with which consumers are not yet a familiar, new source of raw material or of new markets and the like”. The functions of entrepreneurship according to Schumpeter is:
(a) Introduction of a new product.
(b) Introduction of methods of production.
(c) Developing new markets and finding a fresh source of raw materials.
(d) Making changes.
3. According to Cantillon “An entrepreneur is 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 the future”.
4. According to Peter F. Drucker, an an entrepreneur is “one who always searches for change, responds to it and exploits it as an opportunity”. Innovation is the the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or service.
5. According to Francis A. Walker, “the true an entrepreneur is one who is endowed with more than average capacities in the task of organizing and coordinating the various other factors of production”.
To conclude an entrepreneur is a person who bears risk, unites various factors of production, to exploit the perceived opportunities in order to evoke demand, creates employment and contributes to the the economic wealth of a country.

List (I)	List (II)
(a) Entrepreneurship is essentially a creative activity.	(i) Fransis A. Walker
(b) An entrepreneur is an organizer and coordinator of various factors of production.	(ii) Peter F. Drucker
(c) An entrepreneur is one who always searches for change, responds to it, and exploits it as an opportunity.	(iii) Joseph Schumpeter