Week 1: Entrepreneurship vs Business

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Questions and Answers

Who contributed to the innovation theory of entrepreneurship?

Frank Hyneman Knight

John Maynard Keynes

Joseph Schumpeter (correct)

Max Weber

What role does the government play in Keynesian theory regarding entrepreneurship?

Minimal intervention

Active involvement during economic depression (correct)

Support during economic prosperity

Regulation of market monopolies

According to Alfred Marshall, what is the most significant factor in production?

Technology

Labor force

Capital investment

Organization (correct)

In the risk and uncertainty-bearing theory, how is an entrepreneur viewed?

As an agent connecting producers and consumers Signup and view all the answers

What does Weber's sociological theory emphasize in entrepreneurship?

Social cultures Signup and view all the answers

According to Kaldor's technological theory, what element is considered crucial for production?

Advancement of technology Signup and view all the answers

What does Leibenstein's gap-filling theory propose regarding entrepreneurship?

Entrepreneurs fill existing gaps in economic activities. Signup and view all the answers

What character trait typically distinguishes successful entrepreneurs from ordinary business owners?

Creativity and innovation Signup and view all the answers

What does systematic planning involve?

Using a rational and logical approach Signup and view all the answers

Which skill is associated with the ability to learn new things and express knowledge?

Cognitive skills Signup and view all the answers

What defines core competencies in entrepreneurship?

A mix of skills, traits, and entrepreneurial concepts Signup and view all the answers

Which characteristic best describes successful entrepreneurs?

Persuasive and positive networkers Signup and view all the answers

What distinguishes entrepreneurship from science?

Entrepreneurship is dynamic and subject to change. Signup and view all the answers

How is wealth typically misconstrued by ordinary small business people?

They confuse wealth with the term profit. Signup and view all the answers

What is the role of monitoring in entrepreneurship?

Evaluating activities against plans Signup and view all the answers

Self-confidence in entrepreneurs is important because it helps them to:

Project a favorable image founded on respect Signup and view all the answers

What is an essential aspect of entrepreneurship related to providing goods and services?

It creates economic wealth by meeting consumer needs. Signup and view all the answers

What does technical skill refer to in the context of entrepreneurship?

Knowledge in a specialized field Signup and view all the answers

Which statement best defines self-owned enterprises in entrepreneurship?

They involve the owner managing daily operations. Signup and view all the answers

What is primarily sought by successful entrepreneurs when making decisions?

A strong basis of information Signup and view all the answers

What aspect of entrepreneurship is inherently related to risk?

Risk accompanies entrepreneurial ventures due to new ideas. Signup and view all the answers

What does the term planning refer to in the context of entrepreneurship?

The process of setting business goals. Signup and view all the answers

In entrepreneurship, creativity is closely linked to which of the following?

Innovation and generating new ideas. Signup and view all the answers

What type of businesses do not qualify as entrepreneurial according to the provided content?

Businesses managed by others for the benefit of the owners. Signup and view all the answers

Which characteristic describes an entrepreneur who dreams of becoming successful and can easily identify opportunities?

Opportunity-seeker Signup and view all the answers

What defines a conservative risk-taker in entrepreneurship?

An individual satisfied with managing a small business Signup and view all the answers

Which of the following traits is characterized by taking repeated actions to overcome obstacles?

Persistent Signup and view all the answers

What distinguishes goals from objectives in the planning cluster?

Goals are long-term while objectives are short-term. Signup and view all the answers

What action is associated with an entrepreneur who does not entertain negativity and accepts responsibility?

Committed Signup and view all the answers

What is a key feature of the SMART principle in goal-setting?

Specific, Measurable, Achievable, Realistic, Time-bound Signup and view all the answers

Which characteristic is associated with highly successful entrepreneurs who continuously improve past performance?

Efficient and Quality-oriented Signup and view all the answers

What is a trait that differentiates an aggressive risk-taker from a moderate risk-taker?

Aggressive risk-takers take risks without fear. Signup and view all the answers

What is the origin of the term 'entrepreneur'?

French word meaning 'to undertake' Signup and view all the answers

Which of the following best describes an entrepreneur?

A person who organizes, operates, and assumes risks of business ventures Signup and view all the answers

What does the term 'entrepreneurship' refer to?

The field of practice for managing self-owned enterprises Signup and view all the answers

How is a small business defined in this context?

A business owned by one person with a workforce of not more than 20 persons Signup and view all the answers

What characterizes an ordinary small business?

It is managed by an owner who does not practice entrepreneurship Signup and view all the answers

What influences the definitions of entrepreneurship presented by scholars?

Individual beliefs and prevailing economic situations Signup and view all the answers

Small and medium enterprises (SMEs) are promoted to enhance what?

The lives of the Filipino people through entrepreneurship Signup and view all the answers

Which factor is NOT a reason for the lack of a universally accepted definition of entrepreneurship?

The standardized curriculum in business schools Signup and view all the answers

Study Notes

Entrepreneurship vs Business

No universally accepted definition of entrepreneurship exists, influenced by varying theories and scholars' personal beliefs.
Economic situations during different historical periods shape entrepreneurial models and definitions.
The term "entrepreneur" originates from the French word "entreprendre," meaning "to undertake," indicating the initiation of new business ventures.
An entrepreneur organizes, operates, and assumes risks related to business activities, advocating for the principles of entrepreneurship.
"Entrepreneurship" refers to the processes and practices involved in managing a self-owned business that creates value through goods and services.
A small business typically has fewer than 20 employees, practices entrepreneurship principles, and includes small and medium enterprises (SMEs).
An ordinary small business lacks entrepreneurial practices and is often managed by individuals who do not advocate for entrepreneurial principles, such as basic food stalls.

Features and Theories of Entrepreneurship

Entrepreneurship is an art characterized by dynamism, creativity, and correct practices rather than fixed scientific rules.
Wealth creation in entrepreneurship refers to increasing business value and improving the owner's quality of life, rather than merely profit.
The provision of valuable goods and services is fundamental in creating economic wealth through entrepreneurship.
Entrepreneurship involves opening and managing self-owned enterprises, with planning being crucial for setting business goals.
Risk is inherent in entrepreneurship, linked to new ideas and opportunities that arise during the venture's inception.

Theoretical Perspectives on Entrepreneurship

Innovation Theory: Proposed by Joseph Schumpeter, it views economic development as rooted in structural changes and innovation.
Keynesian Theory: John Maynard Keynes emphasized government roles in economic development, especially during downturns.
Alfred Marshall Theory: Entrepreneurs are seen as key agents in organizing production processes.
Risk and Uncertainty-Bearing Theory: Frank Hyneman Knight viewed entrepreneurs as connectors between producers and consumers.
Weber's Sociological Theory: Max Weber highlighted social culture as a driving force in entrepreneurship.
Kaldor's Technological Theory: Nicholas Kaldor emphasized technology's role in production processes.
Leibenstein's Gap-Filling Theory: Henry Leibenstein proposed that entrepreneurship fills existing market gaps.
Kirzner's Learning-Alertness Theory: Israel Kirzner stressed the need for entrepreneurs to recognize opportunities and consumer ignorance.

Characteristics of Successful Entrepreneurs

Character traits distinguish successful entrepreneurs from ordinary small business owners.
Achievement Cluster: Includes traits like opportunity-seeking, commitment, persistence, risk-taking, and quality orientation.
Planning Cluster: Emphasizes goal-setting using the SMART principle (Specific, Measurable, Achievable, Realistic, Time-bound), systematic planning, and effective monitoring.
Power Cluster: Focuses on the ability to influence others, networking skills, and self-confidence in business interactions.

Skills and Core Competencies in Entrepreneurship

Cognitive Skills: Mental abilities to learn, innovate, and communicate effectively.
Problem-Solving Skills: Essential for navigating challenges and making decisions.
Technical Skills: Expertise in specific fields such as technology, finance, or marketing.
Interpersonal Skills: Important for building relationships with stakeholders, including employees, suppliers, and customers.
Core Competencies: The combination of knowledge, character traits, and skills that provide competitive advantages for entrepreneurs.

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Description

Explore the nuanced definitions of entrepreneurship in this quiz. Discover various perspectives and theories that shape the understanding of entrepreneurship, especially in the context of academic programs. This quiz aims to clarify the differences between entrepreneurship and traditional business concepts.