Entrepreneurship Nature and Concepts

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What entities are included in the definition of Micro, Small and Medium Enterprises (MSMEs)?

Publicly listed companies and sole traders

Single proprietorships, cooperatives, partnerships, and corporations (correct)

Only cooperatives and partnerships

Only corporations and partnerships

What is excluded from the total assets value when categorizing MSMEs?

The land on which the business is situated (correct)

Assets from loans

Equipment used in the business

Inventory held by the business

Which of the following is NOT mentioned as a service provided in the SME Development Plan?

Financial Assistance Programs (correct)

Provision of Business Opportunities

Strategic Business Planning

Training and Self-Development

In what industry sectors can MSMEs operate according to the definition provided?

Industry, agribusiness, and/or services Signup and view all the answers

How is the total asset value for an MSME determined?

By summing all assets except the land on which it operates Signup and view all the answers

What does Peter Drucker emphasize about entrepreneurship in 1985?

It focuses on behavior rather than personality traits. Signup and view all the answers

According to William Gartner, what is a key aspect of entrepreneurship?

It is the creation of new organizations. Signup and view all the answers

Which of the following best summarizes Fernandez, Hisrich & Brush's view on entrepreneurship?

The process of creating something with value. Signup and view all the answers

What does Howard Stevenson suggest about the pursuit of opportunities?

It can be pursued without regard to available resources. Signup and view all the answers

Frank Knight associates entrepreneurship with which of the following concepts?

Profits derived from managing uncertainty and risk. Signup and view all the answers

What did Joseph Schumpeter contribute to the understanding of entrepreneurship?

It involves carrying out new combinations and innovations. Signup and view all the answers

What do Scott Shane's views on entrepreneurship focus on?

Discovery and introduction of new goods and services. Signup and view all the answers

Which aspect is common across various definitions of entrepreneurship presented?

Involvement of risk and uncertainty. Signup and view all the answers

Which of the following is considered a key characteristic of entrepreneurship according to Albert Shapero?

Taking initiative and mobilizing resources Signup and view all the answers

What aspect of entrepreneurship does Robert Ronstadt primarily focus on?

Creating incremental wealth through risk Signup and view all the answers

Which element is NOT identified as a common component of entrepreneurship?

Financial speculation Signup and view all the answers

According to Donald Kuratko, what is crucial for the process of entrepreneurship?

Coordination of productive resources alongside creative solutions Signup and view all the answers

What does George Douglas Howard Cole define as a purposeful activity in entrepreneurship?

Establishing profit-oriented business activities Signup and view all the answers

Mark Casson is known for his emphasis on which aspect of entrepreneurial decision-making?

Decisions and judgments about scarce resource coordination Signup and view all the answers

Which country is NOT listed as one of the friendliest entrepreneurship countries?

Brazil Signup and view all the answers

What do the COMMON ELEMENTS IN ENTREPRENEURSHIP primarily contribute to?

Facilitating innovation and economic rewards Signup and view all the answers

Which entrepreneur is best known for founding Amazon?

Jeff Bezos Signup and view all the answers

What is the purpose of Republic Act No. 6977?

To promote small and medium enterprises Signup and view all the answers

Which entrepreneur is associated with the company LVMH?

Bernard Arnault Signup and view all the answers

What significant amendment does Republic Act No. 9501 introduce?

Strengthening assistance for micro, small, and medium enterprises Signup and view all the answers

Which entrepreneur is associated with the founding of Facebook?

Mark Zuckerberg Signup and view all the answers

What is the main focus of the Small and Medium Enterprise Development Council?

Supporting small and medium enterprises Signup and view all the answers

Who is known for their role in creating Oracle?

Larry Ellison Signup and view all the answers

What was the approved date of Republic Act No. 8289?

September 30, 1997 Signup and view all the answers

Study Notes

Entrepreneurship Nature and Relevance

Entrepreneurship is the process of discovering new ways to combine resources.
Profit is generated when the market value created by this new combination exceeds the value generated by those resources used individually or in other combinations.

Different Meanings of Entrepreneurship

Frank Knight (1921): Profits come from bearing uncertainty and risk.
Joseph Schumpeter (1934): Carrying out new combinations of firm organization, new products, new services, new sources of raw material, new production methods, new markets, and new forms of organization.
Berthold Frank Hoselitz (1952): Uncertainty bearing, coordination of productive resources, introduction of innovations, and provision of capital.
George Douglas Howard Cole (1959): Purposeful activity to initiate and develop a profit-oriented business.
David McClelland (1961): Taking moderate risk.
Albert Shapero (1975): A behavior involving initiative-taking, reorganizing economic mechanisms, utilizing resources, and accepting risk of failure.
Mark Casson (1982): Decisions and judgments about coordinating scarce resources.
Robert Ronstadt (1984): Dynamic process of creating incremental wealth by individuals taking risks in terms of equity, time, and/or career commitment to provide valuable products or services

Additional Key Concepts

Peter Drucker (1985): Entrepreneurship is a behavior, not a personality trait. It's based on concepts and theory, not intuition.
William Gartner (1985): Creation of a new organization.
Robert Hisrich & Candida Brush (1985): Creating something new, incurring risks, taking effort, and receiving financial rewards.
Howard Stevenson & Irving Grousebeck (1989): Pursuit of opportunities without regard to resources - focusing on the opportunity rather than current resources.
Myra Hart, Howard H. Stevenson, & Jay Dial (1995): Pursuit of opportunity but constrained by previous choices and industry experience.
Scott Shane (2003): Discovering, evaluating, and exploiting opportunities to introduce new goods, services, and processes.
Donald Kuratko (2009): A dynamic process of vision, change, and creation through energy and passion to develop new ideas and solutions.
Walter Van Dyck & Mitchell Neubert (2012): Conceiving, pursuing, and converting an opportunity to offer new or improved products or services.

Common Elements in Entrepreneurship

Innovation: Introducing something new.
Opportunity Seeking and Exploitation: Identifying and using opportunities.
Resource Mobilization: Gathering necessary resources (e.g. finance, skills).
Encountering Risks and Uncertainties: Understanding and dealing with potential problems.
Economic and Personal Rewards: Profit and satisfaction from entrepreneurial activities.

Friendliest Entrepreneurship Countries

USA
China
Singapore
Canada

Small and Medium Enterprises (SMEs)

Definition: In the Philippines, 99.1% of businesses are SMEs, with specific criteria for micro, small, and medium categories based on total assets.
Republic Act No. 9501 (Magna Carta for Micro, Small, and Medium Enterprises): Governs SMEs in the Philippines, defines micro, small, and medium enterprises, sets criteria to qualify, and aims to improve opportunities.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Explore the fundamental nature and relevance of entrepreneurship through various interpretations from notable economists. This quiz delves into the meaning of entrepreneurship and how it serves as a catalyst for profit and innovation in business. Test your understanding of key theories and concepts related to entrepreneurship.