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Emergence of Entrepreneurial Class

The emergence of an entrepreneurial class originated in 17th century Europe during the Industrial Revolution. The invention of the steam engine transformed small-scale production into large-scale production, leading traders to take risks to produce goods on a larger scale. These traders became known as entrepreneurs. Entrepreneurs largely emerged from trading communities and were often social outsiders working in trade and finance rather than manufacturing. Historical development of entrepreneurship has been governed by factors like ethical values, exposure to new ideas, political systems, and regional industrial climates that influence entrepreneurial growth.

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10K views

Emergence of Entrepreneurial Class

The emergence of an entrepreneurial class originated in 17th century Europe during the Industrial Revolution. The invention of the steam engine transformed small-scale production into large-scale production, leading traders to take risks to produce goods on a larger scale. These traders became known as entrepreneurs. Entrepreneurs largely emerged from trading communities and were often social outsiders working in trade and finance rather than manufacturing. Historical development of entrepreneurship has been governed by factors like ethical values, exposure to new ideas, political systems, and regional industrial climates that influence entrepreneurial growth.

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manishkanojia_
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EMERGENCE OF

ENTREPRENEURIAL CLASS
(WORLD)

Monirba {Allahabad
university}
Supported by – Manish kanojia (MBA III
sem}
Presented by:-
INTRODUCTION
 The term Entrepreneur first appeared in the Frenchlanguage
and was applied to leaders of military expeditions in the
beginning of the 16th century.

 Richard Cantillion , an Irishman living in France was the first


person to use the term Entrepreneur to refer to economic
activities. He defined Entrepreneur as a person who buys
factor services at certain prices for selling his product at
uncertain prices in future. He viewed an Entrepreneur as a
bearer of non insurable risk.
Contd…………………………
 Entrepreneurial class came into being in 17th century.

 Invention of Steam Engine resulted in Industrial


revolution (1769). It changed small scale production to
large scale production.

 Due to this Industrial revolution, the Agrarian society in


Europe got transformed into Industrial society.

 The European society was mainly dominated by Artisans and


Peasants and they witnessed large scale production.

 A group of people mainly traders took risk for large scale


production and they were called Entrepreneurs.


Contd…………………………
 Due to large scale production the Entrepreneurs had
surplus matter available with them. They needed
market to get their product absorbed.

 As Britain had colonies all over the world so they


marketed their products to other countries. This is
how Entrepreneurship originated.
OCCUPATIONAL ORIGIN
 The Entrepreneurs largely emerged from trading community.
Prof. Ashton conducted a survey in which he selected 47
British Innovators of Industrial revolution period (mainly
from manufacturing ). Out of them…

 1 17 Manufacturing Proprietors

2 10 Artisans

3 12 Peasants

4 4 Traders- Consumer goods


Industry
5 4 Professional men
social origin
 The Entrepreneurs originated mainly from predominant
socially distinct groups and were innovative.
 They were outsiders and worked in Trade / Finance
rather than manufacturing industries.

q -- Prof. Geertz in 1963 conducted a survey in


Lebanon and found that 80% of the Entrepreneurs
were Christians however their population was very
low ,only 16% were Muslim entrepreneurs.
q --In Pakistan the Entrepreneurs were mainly from
kwasi caste and not from muslim community.

Ø


Societal perspective of
entrepreneurial growth
 Historical development of entrepreneurship is governed by
different factors. These factors are important determinants
of entrepreneurial growth and thus gave a societal
perspective to the entrepreneurship. These factors are as
follows:-

 (1) Ethical value of Entrepreneur


 (2) Minority group moral
 (3) Need for achievement motivation
 (4) Political system
 (5) Exposure to new ideas and opportunities
 (6) Industrial climate
Contd………………………
 (1) Ethical value system:- Max Weber opined “ the
spirit of rapid industrialization depends upon a
nationalized technology , acquisition of money and its
rational use for productivity and multiplication of
money.”


 (2) Minority group morale:- According to Hagen “
disadvantaged minority group is generally the source
of entrepreneurship” . Ex:- Japan


 (3) Need for achievement motivation:-
McClellandapproach suggests that need for
achievement motivation is crucial factor in
determining the level of industrial and economic
Contd……………
 (4) New ideas and opportunities:- Exposure to new
ideas and opportunities also matter for people
entering into manufacturing activities. Ex:- Arya
samaj and Brahma samaj

 (5) Political systems:- Political system also plays an


important role in entrepreneurial growth. Ex:- Japan

 (6) Regional industrial climate:- Favorable regional


industrial climate also motivates people from
different parts of the country to develop an
entrepreneurial class in that particular region or area.
conclusion
 The origin of emergence of entrepreneurial class lies in
Industrial revolution.
 The concept of entrepreneurship originated from
Europeand then propagated to different parts of the
world.
 The entrepreneurs largely emerged from Trading
community.
 The entrepreneurs were mainly Outsiders who settled
away from their country of origin.
 Disadvantaged minority group is generally the
source of entrepreneurship.


Thank you

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