Entrepreneurship and Economic Development PDF

**Topic 2:** Entrepreneurship and Economic Development At the end of the topic, students will be able to: 1. Identify the importance of entrepreneurship as a component of economic development. 2. Analyze the importance of suppliers to entrepreneurs. 3. Discuss the rewards of successful en...

**Topic 2:** Entrepreneurship and Economic Development At the end of the topic, students will be able to: 1. Identify the importance of entrepreneurship as a component of economic development. 2. Analyze the importance of suppliers to entrepreneurs. 3. Discuss the rewards of successful entrepreneurs.  **Presentation of Content:** **Economic Development** - Is a scheme aimed at improving the living standards of the nation's citizenry **Entrepreneurship** **and** **Economic Development** - Labor supply - Education - Discipline - Motivation - Land - Minerals - Fuel - Climate - Machines - Factories - Roads - Science - Engineering - Management - Entrepreneurship **Development and Growth Theories** City Alert: City seeks Economic Development Road Map **[www.google.com](http://www.google.com)** 1. **Invisible Hand Theory** - Economics grow because of **private enterprises** that pursue their own profit motives - It was proposed by **Adam Smith** *(the father of economics)* - Economics are **natural** like organisms which live, grow and die - Proposed by **Nicholas Kaldor** - Economics grow and develop because of **technology** - Conceptualized by **Sir Harrod** of England & **Prof. Domar** of U.S. - **Capital** is the key to economic growth - Theory of **David Ricardo** *(an English classical economist)* - **Land** is the key to economic growth - It is mostly done by small businesses - It was proposed by **Joseph Schumpeter** *(an Austrian Economist)* - He found out that there was a catalyst for development which is the **innovation** theory