Page 1 of 9
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 03
March 2019
Available online: https://ejbss.org/ P a g e | 382
Leadership through Entrepreneurship
RITU ARORA
Research scholar
Email-rituarora9262@gmail.com
ABSTRACT
The concept of entrepreneurship has been around for a very long time, but its resurgent popularity implies a
“sudden discovery”, as if we had stumbled onto a new direction for American enterprise. This is a myth, as we
shall see, because the American system of free enterprise has always endangered the spirit of entrepreneurship.
America was discovered by entrepreneurs, nourished by entrepreneurs, and the United State became a world
economic power/leader through entrepreneurial activity. More important, our future rests squarely on
entrepreneurial ventures founded by creative individuals. They are inspired people, often adventurers, who can an
at once disrupt a society and instigate progress. They are risk takers who seize opportunities to harness and use
resources in unusual ways, and thrust us into the twenty-first century with a thunderous roar Leadership through
entrepreneurship has given a new, integrative definition as, “leadership that creates visionary scenarios that are
used to assemble and mobilize a „supporting cast‟ of participants who become committed by the vision to the
discovery and exploitation of strategic value creation”. This paper will discuss the origin, factors and theories of
entrepreneurship, and concept of leadership through entrepreneurship besides skills required to become a
successful entrepreneurial leader to conclude the interdependence of entrepreneurship and leadership.
KEYWORDS: Leadership, Entrepreneurship, Theories of entrepreneurship, Intrapreneurs Skills for
entrepreneurship.
I- INTRODUCTION MEANING OF ENTREPRENEURSHIP: Entrepreneurship is one of the four
mainstream economic factors capital, land, labour and entrepreneurship. The world itself, drive from 17th century
French entreprendeur refers to individual whom were “Undertakers” meaning those who “undertook” the risk of
new enterprise. They were “contractors” who bore the risks of profit or loss, and many early entrepreneurs were
soldiers of fortune, adventures, builders, merchants, and incidentally, funeral directors. How the term
“undertakers” become associated with funeral is a mystery, but there is a considerable body of literature on
entrepreneurship.
According to Richard Cantillon, a French Economist of Irish descent “an entrepreneur as a person who pays a
certain price for a product to resell it at an uncertain price, thereby making decisions about obtaining and using
resources while consequently assuming the risk of enterprise.” A critical point in his argument was that
entrepreneurs consciously make decisions about resource allocation. Consequently, astute entrepreneurs would
always seek the best opportunities for using resources for their highest commercial yields. Cantillon played out
his theory in real life, becoming a wealthy arbitrator investing in European ventures, dealing in monetary
exchange, and controlling commodities, such as farm produce, to auction in high demand markets. His vision
illustrated for farm produce in figure.
INVESTMENT-----------------TRANSFORMATION-------------PROFIT/LOSS DEFINITION
According to H.Cole “entrepreneurship is the purposeful activities of an individuals or a group of associated
individuals undertaken to initiate, maintain and aggrandize profit by production or distribution of economic
goods and services.” According to John Kao, “entrepreneurship is the attempts to create values recognition of
Page 2 of 9
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 03
March 2019
Available online: https://ejbss.org/ P a g e | 383
business opportunity, the management of risk-taking appropriate to the opportunity and through the
communicative and management skills to mobilize human financial and material resources necessarily to bring a
project to fruition.”
NATURE OF ENTREPRENEURSHIP:
1. Economic Activity
2. Creative Activity
3. Goal-oriented Activity
4. A Function of Risk-bearing
5. An organizing Activity
6. Gap Filling Activity
7. Dynamic Activity
8. Innovative Activity
9. Managerial Skill
10. Leadership Activity
ROLE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT
1. Entrepreneurship promotes capital formation
2. It provides immediate large-scale employment.
3. It promotes balanced regional development.
4. It helps in reducing the concentration of economic power.
5. It stimulates the equitable redistribution of wealth, income and political power.
6. It encourages effective resource mobilization.
7. It also induces backward and forward linkages.
8. It promotes foreign trade.
II- FACTORS AFFECTING ENTREPRENEURSHIP
A. ECONOMIC FACTORS
1. Capital
2. Labour
3. Raw Material
4. Market
B. SOCIAL FACTORS
1. Legitimacy of Entrepreneurship
2. Marginality
3. Security
C. PSYCHOLOGICAL FACTORS
1. Need-achievement
2. Locus of control
3. Tolerance for risk
4. Tolerance for ambiguity
5. Type „A‟ behaviour
Page 3 of 9
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 03
March 2019
Available online: https://ejbss.org/ P a g e | 384
SCHUMPETER’S VIEW ON ENTREPRENEURSHIP
Joseph Schumpeter has done pioneering work on entrepreneurship. According to him entrepreneurship is
essentially a creative activity. It consists in doing such things as are generally not done in the ordinary course of
business. An entrepreneur is one who innovates, i.e. carries out new combinations or enterprise. Entrepreneurs
are especially motivated and talented class people and key figures in development. They foresee the potentially
profitable opportunity and try to exploit it. Innovations involve problem solving and the entrepreneur is a
problem solver. An entrepreneur gets satisfaction from using his capabilities in attacking problems.
WALKER’S VIEWS ON ENTREPRENEURSHIP:-
Walker has considered an entrepreneur as an organizer and coordinator of the various factors for production.
According to him, the true entrepreneur is one who is with above average abilities for organization and
coordination. He is a pioneer and a captain of industry. However, in practice, entrepreneurs possess different
degrees of organizational skill and coordinating capacity. The supply of true entrepreneurs is limited. The more
competent entrepreneurs earn superior rewards is terms of profits.
DRICHER’S VIEW ON ENTREPRENEURSHIP :-
According to Peter Dricher, an “entrepreneur is one who always searches for change, responds to it, and exploits
it as an opportunity”. Entrepreneurs innovate and innovation is a specific instrument of entrepreneurship. It
creates resources because there is no such thing as a „resource‟ until man finds a use for something and endows it
with economic value.
III- THEORIES OF ENTREPRENEURIAL SUPPLY/ORIGIN :-
The concept of entrepreneurship and its theory have been evolved over a period of more than two centuries.
There are different opinions on the emergence of entrepreneurship. These opinions classified into three
categories:
1. The economist‟s view
2. The sociologist‟s view
3. The psychologist‟s view
ECONOMIC THEORY
According to economist, economic incentives are the main drive for the entrepreneurial activities. In some case, it
is not so evident, but the persons‟ inner drives have always been associated with economic gains. Therefore,
these incentives and gains are regards as the sufficient conditions for the emergence of industrial
entrepreneurship. When individual recognizes that the market for a product or service is out of equilibrium, he
may purchase or produce at the prevailing price and sell to those who are prepared to buy at the highest price.
Lack of vigorous entrepreneurship is due to various kinds of market imperfections and inefficient economic
