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

Important Terms

1. Entrepreneur: The word “entrepreneur” is derived from the French word “entreprendre” which means “to undertake” i.e. individuals who undertake the risk of a new enterprise. The word “entrepreneur”, therefore, first appeared in the French language in the beginning of the sixteenth century. The word was coined by Richard Cantillon, an Irishman, living in France.
2. Entrepreneurship: Entrepreneurship can be described as a process of action an entrepreneur undertakes to establish his enterprise.
3. Enterprise: It is the fourth factor of production, it assembles, coordinates and manages the other factors namely land, labour, capital to start a new business. 
4. Opportunity: A chance of doing something new. 
5. Economic Agent: An economic agent is a person, company, organization who unites all means of production land, produces a product, give certain value to a product and sell it in the market. 
6. Idea: A thought, an opinion or mental impression.
7. Idea centric: The ability of the individual to use unique and divergent patterns of thought to generate products.
8. Factor of Production: Land, Labour, Capital, Entrepreneur and Enterprise.
9. Innovation: Doing something new and something different. 
10. Product: A substance produced for sale it again. 
11. Services: The performance of any duties or work for another and getting remuneration. 
12. Catalytic Agent: The catalyst agents are people who brings about drastic changes in an economy. 
13. Risk: Uncertainty concerning a loss. 
14. Communication: A giving, receiving, or exchange information.
15. Planning: Step involves mapping out exactly how to achieve a particular goal and deciding in advance. 
16. Organizing: After a plan, a manager needs to organize his/her team and materials, Assigning work and granting, making optimum use of the resources required to enable the successful carrying out of plans.
17. Motivation: Motivation is also a kind of basic function of management, because without motivation, employees cannot work effectively. If motivation does not take place in an organization, then employees may not contribute to the other functions (which are usually set by top-level management).
18. Controlling: It includes establishing standards of performance – measuring actual performance, comparing standard performance with actual performance then find variation and taking corrective measures.
19. Leadership: Ability to influence others to perform task. 
20. Staffing: Job analysis, recruitment training and hiring for appropriate jobs. 
21. Finance: The word finance was originally a French word. In the 18th century, it was adapted by English speaking communities to mean “The management of money.” 
22. Marketing: It is concerned with the movement of goods and services from producers to consumers, i.e, making people aware of a company’s products and their satisfaction.
23. Personnel: People employed in an organization. 
24. Accounting: The art of recording, classifying and summarizing, in a significant manner and in terms of money, transaction and events which are, in part at least, of financial character, and interpreting the result thereof.
25. Profit: The return received on a business undertaking after all operating expenses have been met.
26. Salary: A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract.