Entrepreneurship means the act of being an entrepreneur. It is as old as civilization. Many famous economists like David Ricardo, Adam Smith emphasized not much of role played by entrepreneurship in the society, Richard Cantillon equated entrepreneur with a capitalist. Further F.H. Knight, J.B. Say did contribute towards the concept of entrepreneur but it was Joseph Alois Schumpeter who recognised entrepreneurship as the way out to bring about a dynamic change in the economy.
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The only difference between an entrepreneur and entrepreneurship is that entrepreneur conceptually is a person whereas entrepreneurship is a process. In a way, we can say that entrepreneur precedes entrepreneurship. In other words, entrepreneurship is a role played by or the task performed by the entrepreneur. Entrepreneurship became important and caught strong waves during last three decades of the previous century. Entrepreneurship is characterized by economic activity, innovative activity, a function of high achievement, creative and purposeful activity, a function of risk-bearing.
Schumpeter contributed maximum and the richest to the concept of entrepreneurship. His versatile and multi-disciplinary approach could influence the history of economic thought. Schumpeter distinguished between an inventor and innovator saying that the former discovers new methods and new materials whereas latter utilises inventions and discoveries in order to make new combinations and produces newer and better goods. Thus, he earns profit and derives satisfaction out of the whole activity.