18Th Century

Finally, in the 18^th century, the person with capital was differentiated from the one who needed capital. In other words, the entrepreneur was distinguished from the capital provider (the present day venture capitalist). One reason for this differentiation was the industrialization occurring throughout the world. Many of the inventions developed during that time were reactions to the changing world, as was the case with Thomas Edison, the author of many inventions. He was developing new technologies and was unable to finance his inventions himself. Edison raised capital from private sources to develop and make experiments in the fields of electricity and chemistry. Edison was a capital user (an entrepreneur), not a provider (a venture capitalist). In contrast, a venture capitalist is a professional money manager who makes risk investments from a pool of equity capital to obtain a high rate of return on the investments.

19Th and 20th centuries

In the late 19^th and early 20^th centuries, entrepreneurs were frequently not distinguished from managers and were viewed from an economic perspective: Briefly stated, the entrepreneur organizes and manages an enterprise for personal gain. He pays current prices for the materials consumed in the business, for the use of the land, for the services he employs, and for the capital he requires. He contributes his own initiative, skill and ingenuity in planning,

organizing and administering the enterprise. He also assumes the chance of loss and gain consequent to unforeseen and uncontrollable circumstances The net residue of the annual receipts of the enterprise after all costs have been paid he retains for himself. Andrew Carnegie is one of the best examples of this definition. Carnegie invented nothing. Using new ideas he developed new technology into products to achieve economic results. Carnegie, who descended from a poor Scottish family, made the American steel

industry one of the wonders of the industrial world, primarily thanks to his ability to win competitions, rather than his inventiveness or creativity.

In the middle of the 20^th century, the notion of an entrepreneur as an innovator was established: The function of the entrepreneurs is to recreate or revolutionize the pattern of production by introducing an invention or, more generally, by using new technological possibilities for producing a new commodity or producing an old one in a new way, by opening a new source of supply of materials or a new outlet for products; by reorganizing an old industry and creating a new one…

In this definition the concept of innovation an newness is an integral part of entrepreneurship. Indeed, innovation, the act of introducing some new ideas, is one of the most difficult tasks for the entrepreneur. It needs not only the ability to create, but also the ability to understand all the forces at work in the environment. The newness can consist of anything from a new product to a new organizational structure. Edward Harriman, who reorganized the railroad in he United States, or John Morgan, who developed his large banking house by reorganizing and financing the nation’s industries, are examples of entrepreneurs fitting this definition.

These organizational innovations are as difficult to develop successfully as the more traditional technological innovations (transistors, computers, lasers) that are usually associated with the word invention. This ability to innovate is an instinct that distinguishes human beings from animals .The instinct can be observed throughout history, from the Egyptians who designed and built great pyramids out of stone blocks weighing many tons each, to laser beams, supersonic planes and space stations. While the tools have changed with advances in science and technology, the ability to innovate has always been present in every civilization.

Match a line in A with a line in B (as in the text).

A	B
1.government 2. college 3. trade 4. contract 5. sole 6. money 7. organizational 8. banking 9. human 10. risk	a) routes b) being c) degree d) officials e) house f) taker g) price h) structure i) manager j) proprietor

Find the Russian equivalents to the following English words and word combinations.

1. retired person 2. sign a contract 3. enter into a contract 4. raise capital 5. equity capital 6. current prices 7. annual receipt 8. pattern of production 9. integral part 10.unforeseen circumstances

a) неотъемлемая часть b) добывать капитал c) подписать контракт d) пенсионер e) заключать контракт f) собственный капитал g) годовой доход h) структура производства i) существующие цены j) непредвиденные обстоятельства

Try to remember the following word combinations.

business	activity(-ies)	деловая активность
day-to-day		трудовые будни
rationalization		рационализаторство
market		оживление на рынке
economic	development(s)	экономическое развитие
price		движение цен
current		текущие события
capital		капитальное строительство
balanced		планомерность
female	labor	женская рабочая сила
idle		незанятые рабочие
manual		ручной труд
union		рабочие – члены профсоюза
wage		наемный труд

Suggest word combinations with each of the following terms using the dictionary : increase, wealth, failure, evidence, field.

Match the definitions.

1. Venture	is (are )	a) profit after tax, rent, etc. are paid.
2. Background		b) all the shares.
3. Stock		c) a business in which there is some degree of risk.
4. Assets		d) an article of trade or commerce goods.
5. Net residue		e) a person’s experience and education.
6. Commodity		f) a place from which goods are sold.
7. Outlet		g) smth that has value and that may be sold to pay a debt.

Match the words which have an opposite meaning from A and B.

A: failure, inertia, accept, frequently, early, passive, typical, connection, exclusive, professional.

B: active, disconnection, success, unusual, never, amateur, late, reject, activity, inclusive.

Match the words which have a similar meaning.

A: enterprise, fundamentals, manage, create, frequently, emerge, attempt, forerunner, occur, concept.

B: produce, notion, try, business firm, guide, appear, take place, often, basic part, predecessor.

Give the Russian equivalents to the following.

To take an active role, to take an interest in, to be in charge of, to operate at a risk, in other words, private sources, high rate of return, to win competition, to fit the definition, advance in science and technology, point of view, technological possibilities, a source of supply, resulting profits.

Match the linking words with their Russian equivalents from A and B. Use them in sentences.

A: in spite of, both…and, mostly, thanks to, indeed, not only…but also, almost, throughout.

B: повсюду/ на всем протяжении, благодаря, почти/ едва не, несмотря на, в самом деле/ действительно, как….так и, не только….но и, главным образом.

Translate the sentences paying attention to the italicized words.

1. Thanks to his help we finished our work early. 2. Both the wheat and the barley will be shipped of delivery. 4. He went out in spite of the fact that he had a bad cold. 5. She uses her car mostly for her job. 6. She said almost nothing.

Form the new words by using the following suffixes and translate them.

- Er: manage, create, develop, found, lead, invent, provide, employ, innovate, organize.

- Ment: govern, judge, agree, achieve, accompany, develop, retire, state, require, establish.

- Ly: active, evident, frequent, physical, private, brief, primary.

- Ance/ ence: accept, depend, appear, perform, occur, descend.

- Ive: restrict, invent, act, create, reflect, innovate.

Translate 3 paragraphs into Russian beginning from the part “Entrepreneur definition”.

Answer the following questions.

1. What is the evidence of increasing interest in starting new enterprises?

2. What responsibility does an entrepreneur take upon himself in creating a new venture?

3. Who can be an entrepreneur?

4. What meaning did the term “entrepreneur” have in the Middle Ages?

5. Who is the founder of the term “entrepreneur”? Give the definition.

6. What differentiation appeared in the 18^th century?

7. How can an activity of an entrepreneur be described?

8. What is the function of an entrepreneur as an innovator?

9. How many definitions of an entrepreneur are given in the text?

10. Do they have anything in common?

Summarize the information of the text and render its essentials.

Read the text, try to catch its essentials and be ready to do the tasks.