Explanation : Definitions of Entrepreneur by different
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
(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
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.
Explanation : Intrapreneuring: Definition Intrapreneuring means the entrepreneurial
activities that acquire organizationally
sanctions and commitments of resources for
the sole objective of innovative results.
Intrapreneuring aims at boosting the
entrepreneurial spirit within the limits of
the organization, thus creating an environment
Intrapreneurship centres around the
restructuring and re-emergence of the firm’s
capacity to develop innovative skills and
new ideas. Intrapreneurship is not just limited
to the germination of new ideas but includes
even the implementation of those ideas.
Characteristics of Intrapreneurs l Intrapreneurs bridge the gap between
inventors and managers. They take new
ideas and turn them into profitable realities.
l They have a vision and the courage to
l They can imagine what business prospects
will follow from the way customers respond
to their innovations.
Explanation : Importance of Corporate Governance: The following are the main points of importance of corporate governance:
> Accountability and transparency encouraged by corporate governance are essential for capital market development in LDCs (less developed countries). All these ensure investors’ confidence and can help overall investment climate in a country. In the Harrod-Domar type model, economic growth is positively linked with investment. A developing country can gain much in terms of quantitative growth through the
development of a good system of corporate governance.
> Enhanced corporate productivity and efficiency through good corporate governance ensures economic growth with social justice and development. Thus, it not only improves the economic conditions of people but also enhances social welfare.
> A disciplined and controlled corporate governance can considerably reduce financial turmoil and can ensure financial stability, both of which are crucial for economic growth and development. In the past, many corporations failed not because of their products and services but because of their bad corporate governance.
> A good corporate governance can considerably reduce corporate fraud and corruption. In such cases, not only is public confidence raised but also national prestige is enhanced.
> Competitive product and factor markets can be promoted and sustained by corporate governance (Meisel, 2004). This is beneficial not only for corporations but also for society. This can ensure allocative efficiency in the management of scarce resources.
> A good corporate governance is necessary for successful international business as it increases confidence, product quality, prices, social responsibility and environmental protection.
> A better social responsibility generated by good corporate governance can enhance social development, social welfare, and public image and confidence. All these can help the corporations to build social capital and trust.
> A good corporate governance ensures environmental protection and sustainable development. This not only reduces the public cost but can also ensure better human health.
> An ethically inspired CG ensures employees’ welfare and consumers’ welfare and is in favor of the stakeholders’ interests. Good corporate governance does take into account the welfare of all the stakeholders and thereby ensures justice and fairness to all concerned.
> A good corporate citizenship is a sort of national pride and asset. It is beneficial in many ways to the society, employees, stakeholders and of course, the nation.