Questions and Answers
What is entrepreneurship?
The creation or extraction of economic value in ways that generally entail beyond the minimal amount of risk.
What is an entrepreneur?
An inventor and developer of ideas, change agent, and one who organizes, manages, and assumes the risk of a business.
Which of the following are factors that an entrepreneur uses to turn an idea into a profitable product? (Select all that apply)
What does 'capital' refer to in entrepreneurship?
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What is the purpose of negotiating in entrepreneurship?
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What does 'intrapreneurship' involve?
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The predictive approach to entrepreneurship views it as a linear process.
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What does the creation approach emphasize in entrepreneurship?
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What is a franchise in the context of entrepreneurship?
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Why is entrepreneurship important in the Philippines?
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Study Notes
Definition of Entrepreneurship
- Entrepreneurship involves creating or extracting economic value, often at a higher risk level than traditional business models, and can include values beyond economic ones.
Role of an Entrepreneur
- An entrepreneur is an inventor and developer of ideas, characterized by creativity, persistence, and a unique value system.
- Tasks include organizing, managing, and assuming risks associated with a business enterprise.
Key Factors in Entrepreneurship
- Idea: A conceptualized notion that provides a clear plan of action for the entrepreneur.
- Raw Materials: Basic inputs necessary for product creation.
- Capital: Physical resources like buildings, machinery, and tools required for production.
- Laborers: Individuals employed by the entrepreneur, crucial to the production process.
- Plant (Production): The physical location where production activities occur.
- Business Enterprise: An endeavor primarily focused on profit, rather than mere employment.
Important Aspects of Entrepreneurship
- Negotiating: Establishes boundaries and relationships essential for business success.
- Problem Solving: Involves finding solutions to various challenges, from technical issues to financial problems.
- Relationship Building: Includes the dynamic interactions between entrepreneurs, suppliers, investors, and employees.
- Mindfulness: The practice of focusing on the present to manage stress and thoughts effectively.
Types of Entrepreneurship
- Intrapreneurship: Encourages innovation within a corporate framework, as seen in Google’s 20% time policy for employees.
- Entrepreneurs Inside: Similar to intrapreneurs but includes various organizations like non-profits and cooperatives, often facing management resistance.
- Buying a Franchise: Entrepreneurs purchase a franchise to operate under an established brand’s proven business model.
Additional Concepts
- Finished Product: Goods that are fully processed and available for sale.
- Market: A platform where exchanges of goods and services happen between buyers and sellers.
- Customers vs. Consumers: Customers are those who buy products, while consumers (end-users) are those who actually use them.
Views on Entrepreneurship
- Predictive Approach: An older, linear view of entrepreneurship where processes are defined, and outcomes are generally predictable.
- Creation Approach: A modern perspective that sees entrepreneurship as a mindset used to navigate unpredictable futures.
Entrepreneurship in the Philippines
- Considered a vital strategy for addressing high poverty rates (over 20%) despite economic growth around 6%.
- Government initiatives promote entrepreneurship to create jobs, generate wealth, and empower communities for poverty alleviation.
Constitutional Support
- The 1987 Philippine Constitution encourages economic activities that can boost entrepreneurship and promote social welfare.
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Description
Explore the fundamental concepts of entrepreneurship, including its definition and the role of an entrepreneur. This quiz delves into the creation of economic value and the inherent risks involved in entrepreneurial ventures.
