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Q2-Discuss How Entrepreneurship Is A Gap Filling Function ?

The document discusses how entrepreneurship fills gaps in the market. It defines entrepreneurship as undertaking profitable production or distribution of goods and services by taking on risks and innovating. The most important feature of entrepreneurship is its gap-filling function - entrepreneurs identify deficiencies or gaps in knowledge and resources and work to eliminate them by marshaling various inputs. Entrepreneurship plays a vital role in economic growth by creating new ideas, products, markets, and innovations that fill gaps left by other organizations and markets. In this way, entrepreneurship acts as an engine of economic development and transition by continuously innovating and exploiting opportunities.

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Divya Khanka
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2K views

Q2-Discuss How Entrepreneurship Is A Gap Filling Function ?

The document discusses how entrepreneurship fills gaps in the market. It defines entrepreneurship as undertaking profitable production or distribution of goods and services by taking on risks and innovating. The most important feature of entrepreneurship is its gap-filling function - entrepreneurs identify deficiencies or gaps in knowledge and resources and work to eliminate them by marshaling various inputs. Entrepreneurship plays a vital role in economic growth by creating new ideas, products, markets, and innovations that fill gaps left by other organizations and markets. In this way, entrepreneurship acts as an engine of economic development and transition by continuously innovating and exploiting opportunities.

Uploaded by

Divya Khanka
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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STUDENT NAME – DIVYA KHANKA ASSIGNMENT SET – C

PAPER CODE - MB 206 COURSE&SEMESTER – MBA 2


SUBJECT - ENTREPRENEURSHIP

Q2- Discuss How Entrepreneurship Is A Gap Filling Function ?


"Entrepreneurship Is The Purposeful Activity Of An Individual Or A Group Of Associated
Individuals Undertaken To Initiate, Maintain And Aggrandize Profit By Production Or
Distribution Of Economic Goods And Services".

Entrepreneurship Is An Important Factor Of Industrial Development Of A Country. The


Degree And Quality Of Entrepreneurship Differ From Entrepreneur To Entrepreneur.
However, There Are Some Important Determinants, Which Influence The Growth Of
Entrepreneurship.

Definition of Entrepreneurship
Higgins B. defines "entrepreneurship is meant the function of seeking investment and
production opportunity, organizing an enterprise to undertake a new production process,
raising capital, .hiring labour, arranging the supply of raw materials, finding site,
introducing a new technique, discovering new sources of raw-materials and selecting top
managers for day to day operations of the enterprise." This definition highlights risk
taking, innovating and resource organizing aspects of entrepreneurship.
Jaffrey A. Timmons has defined entrepreneurship as "the ability to create and build
something from practically nothing".

The basis of these definitions, we can say that Entrepreneurship is a process of innovation
that reallocates resources to new opportunities, often creating new-opportunities through
unusual combinations of resources and the skills of risk taking entrepreneurs.

Entrepreneurship has many features but the most important one is that of gap
filling.
Gap filling function: The most important feature of entrepreneurship is gap filling. It is the
job of the entrepreneur to fill the gap or eliminate the deficiencies in knowledge above the
production function forever. Some inputs such as motivation and leadership are unclear and
their output is uncertain. An entrepreneur must marshal all inputs to realize the end
product.

In recent years Entrepreneurship has reemerged as an important component underlying


economic growth in the countries. Entrepreneurial firms are an integral part of the

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STUDENT NAME – DIVYA KHANKA ASSIGNMENT SET – C
PAPER CODE - MB 206 COURSE&SEMESTER – MBA 2
SUBJECT - ENTREPRENEURSHIP

transitionprocess of a country that is all the engine of economic growth of a country.


Startups are given more importance in today’s era. As small firms make a significant
contribution to private sector output, employment ,net new jobs creation, and innovations.
Many of the new firms are the creators and leaders of new industries. Most job creating
firms are fast growing and are adding to GDP and National income .

Leibenstein's X-Efficiency Theory • Leibenstein identifies two main roles for the


entrepreneur: (i) a gap filler and (ii) an input completer. ... Thus it is clear that “if not all
factors of production are marketed or if there are imperfections in markets, the
entrepreneur has to fill the gaps in the market.

And in the process of filling gaps in the market an entrepreneur creates new ideas which
are generally known as innovations. These innovations can be creating of completely new
product in the market or making changes in the existing product that can create magic .

An entrepreneur plays a very important role in bringing up of an organisation. He has the


capacity to handle a calculated risks in his business. His importance lies in analysing new
ideas, market demands, exploiting the market opportunities and finally involve in technical
progress.

Innovation let entrepreneurship fill the gap

a. Introducing a new product which the consumers are not aware of or a new quality of
product.
b. Discovering and entering new markets.
c. Introducing a new method of production.
d. Finding new sources of supply of raw materials and semi-finished goods.
e. Creating or breaking a monopoly position and carrying out a new business.

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