Entrepreneurial Management Overview

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Questions and Answers

What distinguishes an entrepreneur from a business person?

Entrepreneurs prefer to work within established corporations.

Entrepreneurs aim to create something new rather than improve existing models. (correct)

Entrepreneurs focus solely on financial gain.

Entrepreneurs are involved in routine business operations.

Who coined the term 'entrepreneur'?

Jean Baptiste Say (correct)

Joseph Schumpeter

Adam Smith

Karl Marx

What aspect of entrepreneurship does Joseph Schumpeter emphasize?

Creating a stable economic environment.

Bringing about dynamic disquilibria through innovation. (correct)

The importance of established business practices.

Focusing on personal wealth accumulation.

What is a primary focus of the course in Entrepreneurial Management?

Recognizing the necessary steps to design and develop a startup. Signup and view all the answers

In which historical context did entrepreneurship begin to emerge as a concept?

After the French Revolution Signup and view all the answers

Which of the following best describes the concept of entrepreneurship according to economists?

A practice that is generally considered a form of leadership. Signup and view all the answers

What are the critical financial competencies needed by entrepreneurs?

Skills to analyze financial risks and opportunities. Signup and view all the answers

What type of business ownership forms are covered in the entrepreneurial management course?

Various forms of small business ownership. Signup and view all the answers

What does entrepreneurship primarily involve according to Cantillon's definition?

The creation of a new economic entity Signup and view all the answers

What was Jean Baptiste Say's contribution to entrepreneurship?

Shifting economic resources to higher productivity Signup and view all the answers

Who highlighted the importance of obtaining information and supervision in entrepreneurship?

Carl Menger Signup and view all the answers

According to Joseph Schumpeter, entrepreneurship is associated with which of the following?

New combinations of productive factors Signup and view all the answers

What aspect of entrepreneurship does Harvey Liebenstein's contribution focus on?

Reduction of organizational inefficiency Signup and view all the answers

What does Albert Shapiro suggest entrepreneurship involves?

Organizing, recognizing social mechanisms, and accepting risks Signup and view all the answers

What is the primary focus of W.Ed McMullan and Wayne A. Long's contribution to entrepreneurship?

Building new growth for organizations Signup and view all the answers

Howard Stevenson emphasizes which aspect in his contribution to entrepreneurship?

Pursuit of opportunity beyond current resources Signup and view all the answers

What is the primary role of entrepreneurship in economic growth?

Contributes to employment and innovation Signup and view all the answers

Which of the following best describes economic growth?

An increase in the value of goods and services produced Signup and view all the answers

Which dimension is NOT part of the innovation and new venture creation process?

Cultural Signup and view all the answers

What does GDP stand for in the context of economic growth?

Gross Domestic Product Signup and view all the answers

How is entrepreneurship described in its relation to the economy?

As the backbone of the economy Signup and view all the answers

According to economic theories, which element is necessary for economic growth?

Response to opportunities in the environment Signup and view all the answers

What is one characteristic of entrepreneurs mentioned in the context?

Ability to gain international prestige Signup and view all the answers

Which type of theories view economic growth as natural and inevitable?

Inevitability theories Signup and view all the answers

What is the main goal of entrepreneurship?

To create wealth for individuals and societies Signup and view all the answers

What does a small enterprise typically involve in terms of asset size?

Over P3 Million to P15 Million Signup and view all the answers

Which of the following is NOT a risk of entrepreneurship?

Increased job satisfaction Signup and view all the answers

What kind of entrepreneur typically leads large corporations like Jollibee?

Large Business Entrepreneur Signup and view all the answers

Which of the following benefits does entrepreneurship provide to society?

Creates employment opportunities Signup and view all the answers

Which of the following factors is generally considered a reward of entrepreneurship?

Challenges leading to fulfillment Signup and view all the answers

What is an important component of preparing an elevator pitch?

Explaining the idea's market need Signup and view all the answers

What defines a micro-enterprise based on asset size?

Less than P3 Million Signup and view all the answers

What does the Big Push Theory propose for economic development?

Large investments in infrastructure and education Signup and view all the answers

According to David Ricardo, what is the outcome of population increases?

Economic stagnation or a stationary state Signup and view all the answers

How do modern societies differ from traditional societies in terms of emotional engagement?

Modern societies are generally unemotional Signup and view all the answers

What factor critically drives entrepreneurs to invest in resources, according to John Maynard Keynes?

Existence of market demand Signup and view all the answers

What is a common characteristic of modern societies compared to traditional ones?

Achievement is based on individual accomplishments Signup and view all the answers

How are psychological factors viewed in the context of entrepreneurship?

Crucial for individual achievement motivation Signup and view all the answers

In sociological explanations of economic growth, what differentiates modern economies from traditional ones?

Traditional economies have more defined social roles Signup and view all the answers

What is a primary function of entrepreneurship in the economic context?

To mobilize resources for production Signup and view all the answers

Study Notes

Overview of Entrepreneurial Management

Course introduces fundamentals of entrepreneurship and management roles within business.
Evaluates risks, rewards, and benefits of entrepreneurship versus traditional employment.
Focus on creating, developing, and operating a startup for-profit business.
Covers forms of small business ownership and necessary financial competencies for entrepreneurs.

Learning Objectives

Understand the role of entrepreneurship versus traditional business roles.
Analyze the evolution of entrepreneurship and key contributors to its theory.
Assess the risks and rewards of entrepreneurial activities.

The Concept of Entrepreneurship

Originated in France post-French Revolution, marking the transition to capitalism.
Term "entrepreneur" introduced by economist Jean Baptiste Say.
Emphasizes innovation and doing things differently rather than improving existing models.
Joseph Schumpeter argued entrepreneurs create dynamic economic change through innovation.

Definitions of Entrepreneurship

Cantillon (1725): Involves uncommon business practices outside routine.
Schumpeter (1934): Focuses on creating novel economic entities centered on unique products/services.

Key Contributors to Entrepreneurship Theory

Jean Baptiste Say (1800): Resource allocation towards higher productivity.
Carl Menger (1871): Emphasized information and management in entrepreneurship.
Joseph Schumpeter (1910): Proposed new combinations of productive factors.
Israel Kirzner (1975): Identified market arbitrage opportunities.
Howard Stevenson (1992): Pursuit of opportunities beyond current resources.

Role of Entrepreneurship in Economic Growth

Economic growth: Increase in the value of goods/services, quantified through GDP percent growth.
Entrepreneurs are essential for resource mobilization and innovation in the economy.
Their risk-taking fosters job creation and inspires new entrepreneurs.

Theories of Economic Growth

Theories grouped into three categories: natural processes, responses to opportunities, and psychologically driven irrational activities.
Big Push Theory: Advocates for significant investment in infrastructure and education to boost economies.
Sociological and Psychological factors explain growth through cultural values and individual motivations.

Characteristics of Modern vs. Traditional Societies

Modern societies prioritize self-interest and achievements, while traditional societies often focus on community welfare and status.

What is Entrepreneurship?

The act of creating and building business enterprises, marked by creativity and innovation aimed at wealth creation and societal value.

Idea Pitching

Develop three ideas and prepare a two-minute elevator pitch addressing the idea, its market need, customer interest, sales strategy, sourcing, and target market.

Categories of Enterprises

Micro-Enterprise: Assets < P3 Million.
Small Enterprise: Assets over P3 Million to P15 Million.
Medium Enterprise: Assets over P15 Million to P100 Million.
Large Enterprise: Assets over P100 Million.

Benefits of Entrepreneurship

Job creation and improvement in the quality of life.
Helps distribute income more equitably, reducing social unrest.

Risks of Entrepreneurship

Includes potential for failure and unpredictable business environments.
Entails long working hours and unexpected responsibilities.

Rewards of Entrepreneurship

Unlimited earning potential and personal fulfillment from overcoming challenges.
Encourages creativity and innovation in business practices.

Types of Entrepreneurs

Small Business Entrepreneur: Independent operations with no growth ambitions (e.g., local restaurants).
Large Business Entrepreneur: Leaders of expansive companies (e.g., Jollibee), focusing on product/service development and market expansion.

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Description

This quiz explores the fundamentals of entrepreneurial management, comparing it to traditional business roles. It examines the evolution of entrepreneurship, its risks and rewards, and the key characteristics of successful entrepreneurs. Test your understanding of small business ownership and financial competencies essential for entrepreneurs.