Contributions of Francis Walter To Entrepreneural Development
In my previous article, I have talked about the contributions of Richard Cantillon to Entrepreneural Development . Now I want to look at some of the major contributions of Francis Walter to Entrepreneural Development. Follow me as we are going to consider that together in this article .
On the late 19th century, Francis Walter also differentiated between those who supplied fund and received interest and those that provided management and receive profit. This distinction was as a result of the increasing industrialisation of the 19th century.
At the beginning of the 20th century , entrepreneurs were viewed mainly from the economic perspective. The entrepreneur was regarded as an organiser who starts and operates an enterprise in expectation of reward of profit and equally bears the risk of making a loss.
The work of undertaking risk in expectation of profit is referred to an ‘enterprise’ and the provision of capital is referred to as ‘financing’ .
The famous economist John Sutart Mill on his 1948 Classic , ‘ The Principle Of Political Economy’ also popularised the ideas of the entrepreneur as an organiser who assumes the risk of a business in return for profit.
Before the industrial revolution in England, production was carried out on a small scale and usually in cottage industries. There was no distinction between enterprise and management . With the invention of heavy machineries and the emergence of large industrial undertakings , joint stock company ownership from control , that is , the separation of shareholders and directors . Hence, a separation was made between enterprise and management .
The shareholders bear the risk and get reward of ownership. Enterprise relates to shareholders , however the actual work of management is done by paid managers or appointed directors . The entrepreneur is not a paid manager: he or she performs the task of risk taking and provides general leadership.
The directors perform the work of corporate management .
However in small scale businesses , it is difficult to separate the functions of the entrepreneur and that of the organiser or manager. These functions are.perforned by same person , the small business owner.
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