EL CURA SIN CABEZA

During this era, the term ‗‗entrepreneur‘‘ was used to describe both an actor and a person who manages large production task or projects. In this era, individuals do not take any risks because all the resources used are provided by the government of the country, and the entrepreneur does is to manage it. The entrepreneur is seen as a custodian of government resources and also as a priest.

3.3 17^th century

The connection of the risk with entrepreneurship was developed in the 17th century. During this era, an entrepreneur was a person who entered into a contract with the government to perform a service or to supply stipulated products. An example of an entrepreneur during that period is John law, a Frenchman. He was the founder of the royal bank of France and the Mississippi Company, which had an exclusive franchise to trade between France and the new world.

Richard Cantillion, an English man, first adopted the word entrepreneur to describe a risk bearer when he observed that merchants, farmers, craftsmen, and other sole proprietors buy at a certain price and sell at an uncertain price, therefore operating at a risk.

3.4 : 18^th century

In this era, the concept of entrepreneurship was viewed as capital demand and use, and the entrepreneur as one who made use of capital for his invention for commercial purposes. The person with capital was differentiated from the one who needed capital hence; the entrepreneur was distinguished from the capital provider. A major reason for this differentiation was as a result of the industrial revolution. Many of the inventors during this time were Eli Whitney and Thomas Edison. They both developed new technologies but were unable to finance their

inventions themselves. B o t h E d i s o n a n d Whitney were capital users (entrepreneurs), not providers (venture capitalists). Late in the eighteenth century, the concept of entrepreneurship was expanded to include not only the bearing of 19^th century:

Entrepreneurs were viewed from an economic and managerial perspective. The entrepreneur organizes and operates enterprise for personal gain. He was seen as someone who combined the factors of production (such as land, machine, labour, capital, skills, personal initiatives and ingenuity) in planning, organizing, and administering the enterprises. He also assumes the chance of loss and gain consequent to unforeseen and uncontrollable circumstances. The entrepreneur retains for himself the net residue of the annual receipts of the enterprises after all costs have been paid. The nineteenth century was a fertile time for entrepreneurial activity because technological advances during the industrial revolution provided the impetus for continued inventions and innovations. Then, toward the end of the nineteen century, the concept of entrepreneurship changed slightly again to distinguish between those who supplied funds and earned interest and those who profited from entrepreneurial abilities.

3.5: 20^th century

In this era, the focus of entrepreneurship in economic development was through innovation. This was introduced by an economist, Joseph Schumpeter in 1972. In his words, ―The function of the entrepreneur is to reform or revolutionize the pattern of production by exploiting an invention or, more generally, an untried technological method of producing a new commodity or producing an old one in a new way, opening a new source of supply of materials or new outlet for products, by organizing a new industry. During the early part of the twentieth century, entrepreneurship was still believed to be distinct and different from the management of organizations. However, in the mid-1930s the concept of entrepreneurship expanded.

That‘s when economist Joseph Schumpeter proposed that entrepreneurship involved innovations and untried technologies or what he called creative destruction, which is defined as the process whereby existing products, processes, ideas, and businesses are replaced with better ones.

Schumpeter believed that through the process of creative destruction, old and outdated approaches and products were replaced with better ones. Through the destruction of the old came the creation of the new. He also believed that entrepreneurs were the driving forces behind this process of creative destruction.

The illustration above shows a summary of the history of entrepreneurship development from the earliest period to the 21^st Century.

4.0 CONCLUSION

In this unit, we have discussed the evolution of entrepreneurship. We have discussed the history starting from the earliest period, Middle East, 17^th century, 18^th century, 19^th century

and the 20^th century. The summary of the entrepreneurship development and evolution was also identified.

5.0 SUMMARY

From this unit, we have discussed the following;

 Evolution of entrepreneurship from the earliest period

 Evolution of entrepreneurship from middle East

 Evolution of entrepreneurship from the 17^th century

 Evolution of entrepreneurship from the 18^th century

 Evolution of entrepreneurship from the 19^th century

 Evolution of entrepreneurship from the 20^th century 6.0 TUTOR-MARKED ASSIGNMENT

 Discuss the evolution of entrepreneurship from the earliest period and middle East

 Critically discuss the evolution of entrepreneurship from the 17^th century, 18^th century, 19^th century and 20^th century