Entrepreneurship Basics and Responsibilities

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Questions and Answers

Which invention is Eli Whitney best known for?

The sewing machine

The cotton gin (correct)

The telegraph

The steam engine

What percentage of profits did the merchant-adventurer receive after selling goods?

75%

100%

50%

25% (correct)

What was Richard Cantillion's perspective on entrepreneurs?

They operate without risk.

They are risk takers operating at uncertain prices. (correct)

They only engage in small trades.

They are passive risk bearers.

What was a primary reason for the differentiation between entrepreneurs and capital providers in the 18th century?

Industrialization Signup and view all the answers

Who was John Law?

A French entrepreneur Signup and view all the answers

What role did the capitalist play according to the provided content?

Passive risk bearer Signup and view all the answers

What is one of the primary responsibilities of an entrepreneur?

Generating profits for the business Signup and view all the answers

What impact did entrepreneurs have on society, according to the content?

Enhanced competitive consciousness Signup and view all the answers

Which of the following best describes a self-employed entrepreneur?

Someone who keeps all the profit from their work Signup and view all the answers

Which of the following is not considered a resource used by entrepreneurs?

Advanced technology Signup and view all the answers

What famed role did Marco Polo assume in trade?

Merchant-adventurer Signup and view all the answers

What type of entrepreneur is known for introducing completely new ideas?

Innovators Signup and view all the answers

What does 'determination' imply in the context of entrepreneurship?

The commitment to persist despite challenges Signup and view all the answers

Which of the following traits does not belong to the 10 D's of an entrepreneur?

Diligence Signup and view all the answers

What is essential for maintaining a high energy level as an entrepreneur?

Adequate nutrition, rest, and exercise Signup and view all the answers

Which of the following statements best describes the concept of 'hustlers' in entrepreneurship?

They aim for steady growth from small beginnings. Signup and view all the answers

How does SWOT Analysis primarily aid marketers and entrepreneurs?

By identifying strengths and weaknesses Signup and view all the answers

Which of the following is NOT a type of assistance program the government can provide to entrepreneurs?

Psychological counseling Signup and view all the answers

What is the primary focus of Ricardian Theory?

Agriculture Signup and view all the answers

SWOT Analysis includes which of the following components?

Strengths, Weaknesses, Opportunities, Threats Signup and view all the answers

Who is credited with the development of the technique used in SWOT Analysis?

Albert Humphrey Signup and view all the answers

Which of the following is NOT a benefit of SWOT Analysis?

Eliminating competition Signup and view all the answers

Which of the following accurately describes a 'strength' in SWOT Analysis?

Internal capabilities that give the business an advantage. Signup and view all the answers

In the context of government assistance, what does 'Infrastructure' refer to?

Physical facilities and services necessary for economic activity Signup and view all the answers

What is the primary focus of the Harrod-Domar Theory?

The increase of production through machinery Signup and view all the answers

Which theory emphasizes technology as the key factor in economic development?

Kaldor Theory Signup and view all the answers

According to the content, which of the following is NOT a contribution of entrepreneurship?

Reduction of disease Signup and view all the answers

What does the concept of an Entrepreneurial Economy imply?

Filipinos should benefit from their own productive resources Signup and view all the answers

Who conceptualized the Innovation Theory?

Joseph Schumpeter Signup and view all the answers

Which of the following best describes economic development?

A sustainable improvement in human conditions Signup and view all the answers

What was Thomas Edison's role in relation to his inventions?

He was an entrepreneur who used capital for his inventions. Signup and view all the answers

Which of the following factors is highlighted as a determinant of economic development?

Both economic and non-economic factors Signup and view all the answers

What role does an entrepreneur play in economic development, according to the content?

They mobilize capital resources and create jobs Signup and view all the answers

How does entrepreneurship contribute positively to the economy?

It generates jobs, income, goods, and services. Signup and view all the answers

What does entrepreneurship promote according to the socio-economic benefits listed?

Self-help and employment development Signup and view all the answers

Which of the following was NOT listed as a barrier to the growth of Philippine SMEs?

Inadequate government support Signup and view all the answers

Which of the following is NOT a characteristic of poor access to finance as a barrier for entrepreneurs?

It fosters innovation among businesses. Signup and view all the answers

Which of the following statements is true regarding entrepreneurship?

Entrepreneurship enhances national identity and pride. Signup and view all the answers

What is one of the roles of entrepreneurship mentioned in relation to economic development?

To act as an economical method for distributing goods and services. Signup and view all the answers

Which economic benefit of entrepreneurship helps to alleviate social unrest?

Contributing to a more equitable distribution of income Signup and view all the answers

Study Notes

Entrepreneur Definition and Responsibilities

An entrepreneur is someone who identifies business opportunities, takes risks to capitalize on them, invests their own or borrowed money, innovates for improvement, plans and makes decisions, and aims to generate profits.
Responsibilities:
- Initiating ideas
- Taking risks
- Planning
- Controlling
- Coordinating

Resources Used by Entrepreneurs

Money: Essential for obtaining goods and services. Employment is a primary source of funding.
Equipment: Can range from simple tools like a knife to complex machines.
Energy: Good health is crucial for maintaining energy levels. Adequate nutrition, rest, and exercise are necessary.
Time: A valuable and limited resource.
Skills: Developed through learning and practicing tasks competently.
Knowledge: Curiosity and a zest for life encourage learning and acquiring knowledge.

10 D's of an Entrepreneur

Dream: Having a clear vision of goals and aspirations.
Decisiveness: Making confident and timely decisions.
Doers: Taking action and implementing plans.
Determination: Perseverance and commitment to achieving goals.
Dedication: Strong commitment to the venture.
Devotion: Passion and enthusiasm for the work.
Details: Paying attention to small details and achieving accuracy.
Destiny: Believing in the purpose and potential impact of the venture.

Types of Entrepreneurs

Self-Employed: Individuals who manage all aspects of their business and keep all profits.
Innovators: Entrepreneurs who create entirely new ideas and transform them into viable businesses.
Hustlers: Entrepreneurs who start small with ambitions of expanding their business. They are driven by their dreams and work hard to achieve them.
Imitators: Entrepreneurs who adopt existing business models and adapt them to their own ventures.

Brief History of Entrepreneurship

Earliest Period:
- Go-betweens, like Marco Polo, facilitated trade routes and faced financial risks.
- Capitalist, as passive risk bearers, provided funding while merchant-adventurers, as active traders, assumed physical and emotional risks.
- Profits were distributed, with capitalists receiving the majority share (up to 75%) and merchant-adventurers receiving the remaining 25%.
18th Century:
- Distinction emerged between those who possessed capital and those who required it.
- Entrepreneurs were differentiated from capital providers due to the rise of industrialization.
- Inventors like Eli Whitney (cotton gin) and Thomas Edison (inventor of numerous inventions) were capital users (entrepreneurs), not providers (venture capitalists).
19th and 20th Centuries:
- Entrepreneurs were often grouped with managers and viewed primarily from an economic perspective.
- The focus shifted toward organizing and managing businesses for personal gain, emphasizing resource management and profit generation.

Socio-economic Benefits of Entrepreneurship

Promotes Self-Help and Employment: Encourages individuals to create their own opportunities and contribute to job growth.
Mobilizes Capital: Attracts investment and stimulates economic activity.
Provides Taxes to Economy: Contributes to government revenue, which can fund public services and infrastructure.
Empowers Individuals: Provides opportunities for personal growth, independence, and financial security.
Enhances National Identity and Pride: Contributes to economic progress and national development.
Enhances Competitive Consciousness: Drives innovation and pushes businesses to improve.
Improves Quality of Life: Creates new products, services, and opportunities that enhance living standards.
Enhances Equitable Distribution of Income and Wealth: Creates job opportunities and raises incomes for individuals and communities.

Barriers to Growth of Philippine SMEs

Poor Access to Finance: Limited access to funding, hindering growth and expansion.
Obsolete Technology: Lack of access to modern tools and equipment hampers efficiency and competitiveness.
Low Productivity: Inefficient processes and outdated methods limit output and profitability.
Lack of Skills Upgrading: Limited access to training and development programs hinders employee capabilities.
Lack of Information: Difficulty obtaining valuable information on markets, regulations, and best practices.
Inability to Make Entrepreneurial Transition: Difficulty adapting to changing market conditions and embracing new ideas.
Poor Linkage Among Small, Medium, and Large Industries: Weak collaboration and networking limit opportunities.
Inappropriate Location: Access to infrastructure, transportation, and markets can be limited due to location.
Management Incompetence: Lack of effective leadership skills hampers operations and decision-making.
Poor Market Access: Challenges in reaching target customers and promoting products or services.
Lack of Infrastructure: Limited access to essential utilities, transportation, and communication networks.
Bureaucratic/Cumbersome Procedures: Complex regulations and slow processing times can hinder business operations.
Severe Global Competition: Intense competition from international businesses can make it difficult to succeed.

The Role of Entrepreneurship in Economic Development

Facilitates Efficient Distribution: Provides innovative solutions to deliver goods and services, accelerating economic growth.
Generates Jobs, Income, Goods, and Services: Creates employment opportunities, increases household income, and expands the supply of goods and services.
Improves Quality of Life: Enhances living standards through access to new products, services, and opportunities.
Contributes to Income Distribution: Helps bridge income gaps and reduce social unrest by creating wealth-generating opportunities.
Mobilizes Resources: Utilizes available resources efficiently to stimulate economic growth and create value.
Generates Social Benefits: Contributes to the well-being of society through government programs, social initiatives, and community development.

Economic Development Theories and Entrepreneurial Economy

Harrod-Domar Theory: Stresses the crucial role of capital accumulation (investment in machines and technology) in driving economic growth.
Kaldor Theory: Emphasizes the importance of technological advancements and their impact on productivity and economic growth.
Innovation Theory: Highlights the contributions of entrepreneurs to economic development by introducing new markets, discovering new resources, mobilizing capital, introducing new technologies, and creating employment opportunities.
Ricardian Theory: Focuses on the significant role of agriculture in driving economic development, emphasizing land allocation and resource management.
Entrepreneurial Economy: Emphasizes local ownership and control of productive resources, promoting economic self-sufficiency and equitable distribution of benefits.

The Government's Role in Supporting Entrepreneurs

Peace and Order: Providing a secure and stable environment for businesses to thrive.
Political Stability: Ensuring a predictable and reliable political system to foster confidence and investment.
Taxes: Implementing fair and transparent tax policies to encourage entrepreneurship.
Infrastructure: Investing in essential infrastructure like roads, utilities, and communication networks to improve access and efficiency.
Education and Training: Providing quality education and training programs to equip individuals with the skills necessary to succeed as entrepreneurs.
Public Administration: Streamlining government processes and making regulations more entrepreneur-friendly.
Production Technology: Supporting innovation and adoption of advanced technologies to enhance productivity and competitiveness.
Marketing Assistance: Providing resources and support to help businesses develop and execute effective marketing strategies.
Financial Assistance: Offering loans, grants, and other financial support to start-up businesses and those seeking to expand.

SWOT Analysis

Technique: Enables individuals or groups to move beyond routine problems and traditional strategies, adopting a fresh perspective.
Framework: Analyzes internal and external environments to identify Strengths, Weaknesses, Opportunities, and Threats, providing a framework for strategic planning and decision-making.
Strengths: Positive internal characteristics of a business or team that give it an advantage over competitors. Includes tangible and intangible aspects.

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Description

This quiz explores key concepts related to entrepreneurship, including the definition of an entrepreneur and their key responsibilities. It covers aspects such as resources used by entrepreneurs and the essential skills required for success in the business world.