Mc. Clelland explained the characteristics of entrepreneurship into the following six important elements :

Accepting risk

An entrepreneur tries to seek opportunities and exploits them in a profitable manner even by taking risk.

Energetic innovative activity

He must have his unique way of handling the given set of circumstances. He must make the best use of available resources such as manpower, material and money. He must effect technological improvements and exploit marketing opportunities in the best possible ways.

Individual responsibilities

He is fully responsible for the outcome of the decisions he takes in the working of his enterprise.

Knowledge of the results

He must know how to measure the performance of the organisation he runs. Profit or loss is the measure of assessment of his work.

Anticipation of future responsibilities

His skill lies in thinking ahead of the time and preparing his organisation to avail the best opportunities likely to come in future.

Entrepreneur – Manager

His activities relate to risk bearing and innovative approach, Manager has to defined and limited authority and responsibility while an entrepreneur is his own master and enjoys enormous authority thereby heavy responsibilities.


SCOPE OF ENTREPRENEURSHIP

In the present economic environments, the scope of entrepreneurship is quite encouraging. Every aspect of human life and way of living is invariably concerned with social, cultural or economical activities. It has a definite scope for the growth and development of entrepreneurship. These entrepreneurship activities have exerted a great impact on the development of countries like America, Japan, France and England. Entrepreneurship is a novel, unique and innovative activity attracting only such individuals resources to achieve their aim of profit maximization. Day-by-day new goods, new methods of production, new markets or widening of existing markets becomes easily possible due to entrepreneurship.

It is an important determinant for the growth and economic development. It is also important to the individual growth of various communities and nations.

Following are the important aspects of entrepreneurship :

  • An entrepreneur is a person whose ideas are unique.
  • He is basically innovative.
  • He is an agent who profitably combiners all the factors of production.
  • He is basically a business organiser and tries to set up an organisation till the final stage of making and marketing his products with profit.
  • An entrepreneur is a person who fits into environment adjusts and makes use of the environment best suited to his business aims and objectives.
  • He is a person who tries to create new and unique products, organises production by undertaking risk under all types of business uncertainties.