Introduction to Entrepreneurship

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Questions and Answers

What is the primary purpose of a business?

  • To produce and sell goods and services to satisfy societal needs (correct)
  • To establish brand recognition
  • To generate revenue for the local government
  • To provide employment opportunities for individuals

Entrepreneurship is primarily aimed at achieving financial dependency.

False (B)

In what type of economic system does entrepreneurship thrive?

capitalist economy

An entrepreneur is a person who _________________ entrepreneurial activities.

<p>undertakes</p>
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Match each concept with its definition:

<p>Business = An organized effort to produce and sell goods and services. Entrepreneurship = The pursuit of an opportunity regardless of current resources. Entrepreneur = The person who organizes, manages, and assumes the risks of a business.</p>
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Which of the following best describes entrepreneurship?

<p>A process of creating or seizing an opportunity, regardless of resources (A)</p>
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The term 'entrepreneur' was coined by a renowned American Economist.

<p>False (B)</p>
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What French word is the term 'entrepreneur' derived from, and what does it mean?

<p><code>entreprende</code>, which means to undertake</p>
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Besides providing products and services, entrepreneurs also generate _______ for the government.

<p>taxes</p>
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Which of the following is NOT a task typically associated with entrepreneurs?

<p>Working exclusively for the government. (A)</p>
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Which of the following is the main goal of economic development?

<p>Improving living standards (B)</p>
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According to the Invisible Hand Theory, economies grow due to government intervention.

<p>False (B)</p>
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Who is considered the father of economics?

<p>Adam Smith</p>
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Nicholas Kaldor proposed that economies are like _________ which live, grow, and die.

<p>organisms</p>
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Match each economic theory with its key factor

<p>Invisible Hand Theory = Private enterprise Harrod-Domar Theory = Capital Ricardo's Theory of Growth = Land Schumpeter's Innovation Theory = Innovation</p>
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According to Sir Harrod and Prof. Domar, what is the primary factor for economic growth?

<p>Capital (C)</p>
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Entrepreneurship is not considered a component of economic development.

<p>False (B)</p>
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What did Joseph Schumpeter identify as the catalyst for development?

<p>innovation</p>
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David Ricardo, an English classical economist, theorized that ________ is the key to economic growth.

<p>land</p>
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Which type of businesses most often drive innovation according to Joseph Schumpeter?

<p>Small businesses (B)</p>
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Flashcards

What is Entrepreneurship?

The pursuit of a new opportunity, regardless of available resources. It involves starting and managing a business, taking risks, and aiming for self-employment.

Who is an Entrepreneur?

An individual who starts, manages, and takes on the risk of a business venture.

What is a Business?

A structured effort involving individuals to produce and sell goods or services to meet societal needs.

What are the Tasks of an Entrepreneur?

The tasks that entrepreneurs perform to create value and contribute to the economy.

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What do Entrepreneurs offer?

Entrepreneurs contribute to the economy by offering desired products and services to both consumers and other businesses.

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How do Entrepreneurs Impact Employment?

Entrepreneurs create job opportunities, thus reducing unemployment and contributing to economic growth.

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How do Entrepreneurs Contribute to Taxes?

Entrepreneurs pay taxes, which helps fund public services and infrastructure development.

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How do Entrepreneurs Impact Suppliers?

Entrepreneurs create demand for suppliers' products and services, boosting the overall economy.

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What is Economic Development?

The process of improving the living standards of a nation's citizens.

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How can Economic Development be achieved?

A scheme aimed at improving the living standards of the nation's citizenry.

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Importance of Entrepreneurship in Economic Development

Entrepreneurs play a crucial role in stimulating economic growth by creating new businesses, generating employment opportunities, fostering innovation, and contributing to tax revenue.

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Importance of Suppliers to Entrepreneurs

Entrepreneurs rely on suppliers for essential resources, goods, and services, creating a chain of economic activity that boosts the overall economy.

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Rewards of Entrepreneurship

Successful entrepreneurs reap significant rewards, including financial gains, personal satisfaction, recognition, and the creation of a positive legacy.

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What is the Invisible Hand Theory?

The theory that private enterprises pursuing profit will naturally contribute to economic growth.

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What is the Technological Growth Theory?

The theory that economic growth is driven by technological advancements.

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What is the Capital Growth Theory?

The theory that capital accumulation is the key driver of economic growth.

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What is the Land Growth Theory?

The theory that land ownership is the key factor in economic growth.

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What is the Innovation Theory?

The theory that innovation is the driving force behind entrepreneurship and economic development.

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Study Notes

Introduction to Entrepreneurship

  • Change is inevitable and widespread, impacting all aspects of life, including economies like the Philippines
  • Entrepreneurship is crucial for capitalist economies, fostering innovation and hard work
  • Entrepreneurship is vital to the nation's economic well-being

Topic 1: Entrepreneurship and the Entrepreneur

Learning Objectives

  • Distinguish between entrepreneurship and entrepreneur
  • Understand the role and characteristics of an entrepreneur

Business Defined

  • Businesses are organized efforts to satisfy societal needs by making and selling goods and services
  • Businesses operate as a form of livelihood, work, or profession
  • Commercial activities aim at generating income

What is Entrepreneurship?

  • Entrepreneurship is a process of creating or seizing opportunities, continuing despite resource limitations
  • It involves starting, managing, and taking risks associated with business ventures
  • Entrepreneurship is an integral aspect of capitalist economies
  • The aim of entrepreneurship is to create self-employment. This is achieved by identifying and pursuing opportunities regardless of existing resources.
  • Entrepreneurship is viewed as a force of "creative destruction" where existing business practices, methods or ideas are disrupted and replaced by new ones. (Schumpeter)
  • Entrepreneurs, in this context, drive innovation and improvement in the business world.
  • Entrepreneurs identify and exploit change as opportunities (Drucker).

The Entrepreneur

  • The entrepreneur is the person who takes the lead in entrepreneurial activities and manages risks associated with enterprise.
  • They organize, manage and bear the risks associated with business ventures.
  • The term "entrepreneur" originates from the French word "entreprendre," meaning "to undertake."
  • This term was popularized by Jean Baptiste Say

The Entrepreneur's Task

  • Entrepreneurs are responsible for providing products and services to consumers and producers
  • They create employment opportunities
  • They contribute to tax revenues for the government.
  • They generate demand fulfilling suppliers' needs
  • They aid future entrepreneurs through training facilities.
  • These enterprises create goods and services beneficial to society.

Entrepreneur's Characteristics

  • Drive
  • Ambition
  • Leadership
  • Perseverance
  • Competitive nature
  • Innovation
  • Vision
  • Motivation
  • Independent
  • Self-satisfaction
  • Confidence
  • Energy
  • Intelligence
  • Resourcefulness
  • Optimism
  • Creativity
  • Initiative
  • Flexibility
  • Responsibility
  • Accuracy
  • Cooperativeness
  • Sense of power
  • Imagination
  • Commitment
  • Sensitivity to others
  • Honesty
  • Maturity
  • Hard Working
  • Ability to bounce back

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Related Documents

Unit 1 Topic 1-Entrepreneurship and the Entrepreneur PDF
Entrepreneurship and Economic Development PDF

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