PPT: Entrepreneurship - Concept and Functions | Entrepreneurship Class 11 - Commerce PDF Download

 Page 1


Entrepreneurship: Concept and 
Functions
Page 2


Entrepreneurship: Concept and 
Functions
Define enterprise and entrepreneur
Enterprise
An Enterprise is a business entity established by an 
entrepreneur for
producing goods and (or) services
providing employment opportunities
adding value to the national income
improving exports
providing the economic development of the 
country
Entrepreneur
An entrepreneur is
an innovator of new ideas
to creates new products or services
or improve the existing products or services 
exploits an opportunity
commercializes his innovation
Page 3


Entrepreneurship: Concept and 
Functions
Define enterprise and entrepreneur
Enterprise
An Enterprise is a business entity established by an 
entrepreneur for
producing goods and (or) services
providing employment opportunities
adding value to the national income
improving exports
providing the economic development of the 
country
Entrepreneur
An entrepreneur is
an innovator of new ideas
to creates new products or services
or improve the existing products or services 
exploits an opportunity
commercializes his innovation
Entrepreneurship in Different Economic Systems
Under whose hands lies the entrepreneurship in the countries following socialism. In the countries wherein 
socialism is dominant, the government or the state owns the entire entrepreneurship activity.
Ownership Country/Society
Private Entrepreneurs Capitalist and developed countries (America/UK)
Government Socialist/Communist countries (China)
Both government and private entrepreneurs Developing countries like India
Not encouraged due to inherent risk Under developed countries
Page 4


Entrepreneurship: Concept and 
Functions
Define enterprise and entrepreneur
Enterprise
An Enterprise is a business entity established by an 
entrepreneur for
producing goods and (or) services
providing employment opportunities
adding value to the national income
improving exports
providing the economic development of the 
country
Entrepreneur
An entrepreneur is
an innovator of new ideas
to creates new products or services
or improve the existing products or services 
exploits an opportunity
commercializes his innovation
Entrepreneurship in Different Economic Systems
Under whose hands lies the entrepreneurship in the countries following socialism. In the countries wherein 
socialism is dominant, the government or the state owns the entire entrepreneurship activity.
Ownership Country/Society
Private Entrepreneurs Capitalist and developed countries (America/UK)
Government Socialist/Communist countries (China)
Both government and private entrepreneurs Developing countries like India
Not encouraged due to inherent risk Under developed countries
Merits of being an entrepreneur
Freedom of Choice
They can work as per their choice and on any idea and not confined to someone's instructions.
Exciting Journey
For the entrepreneurs who love to take high risks, the entire process is an exciting adventurous journey.
Being Your Own Boss
The luxury of being your own boss and freedom working under someone else.
Earnings Based on Effort
Their earnings will be worth of their own efforts. They'll not be judged by a fixed salary for their worth.
Unique Contribution
The feeling contributing a product or service that is unique and original
Page 5


Entrepreneurship: Concept and 
Functions
Define enterprise and entrepreneur
Enterprise
An Enterprise is a business entity established by an 
entrepreneur for
producing goods and (or) services
providing employment opportunities
adding value to the national income
improving exports
providing the economic development of the 
country
Entrepreneur
An entrepreneur is
an innovator of new ideas
to creates new products or services
or improve the existing products or services 
exploits an opportunity
commercializes his innovation
Entrepreneurship in Different Economic Systems
Under whose hands lies the entrepreneurship in the countries following socialism. In the countries wherein 
socialism is dominant, the government or the state owns the entire entrepreneurship activity.
Ownership Country/Society
Private Entrepreneurs Capitalist and developed countries (America/UK)
Government Socialist/Communist countries (China)
Both government and private entrepreneurs Developing countries like India
Not encouraged due to inherent risk Under developed countries
Merits of being an entrepreneur
Freedom of Choice
They can work as per their choice and on any idea and not confined to someone's instructions.
Exciting Journey
For the entrepreneurs who love to take high risks, the entire process is an exciting adventurous journey.
Being Your Own Boss
The luxury of being your own boss and freedom working under someone else.
Earnings Based on Effort
Their earnings will be worth of their own efforts. They'll not be judged by a fixed salary for their worth.
Unique Contribution
The feeling contributing a product or service that is unique and original
Demerits of being an entrepreneur
Staffing Challenges
Owing to the fact that the enterprise will be entirely innovative and first of its kind, it is difficult to find employees with the right experience. 
They've to tackle the employees who may not have much insight into what is happening or the employees with little or not experience on the 
given task.
Inconsistent Income
A consistent income like salary is not guaranteed.
Decision Making Pressure
The entrepreneur being the decision maker, he has to be much more cautious as even a small wrong decision taken can have huge impact on 
the enterprise.
Long Working Hours
An entrepreneur has to work much more than regular working hours and should be ready to tackle any emergencies at any time.
Lack of Benefits
The benefits of a salaried job like medical insurance, holidays etc will not be available, especially during the initial phase of starting the 
enterprise.