Entrepreneurship: Economic Benefits & Factors

**ENTREPRENEURSHIP** - Is a proactive of developing a business venture to make a profit. It involves seeking opportunities for a market, establishing and operating a business out of opportunity, and assessing its risk and rewards through close monitoring of the operations. [Economic Benefits of En...

**ENTREPRENEURSHIP** - Is a proactive of developing a business venture to make a profit. It involves seeking opportunities for a market, establishing and operating a business out of opportunity, and assessing its risk and rewards through close monitoring of the operations. [Economic Benefits of Entrepreneurship in society:] 1. **Entrepreneurship PRODUCES more jobs that equate to an increase in national income.** *Millions of unemployed people will have opportunities to have a decent occupation. Small businesses produce jobs and create wealth.* 2. **Entrepreneurship AMPLIFIES economic activities of different sectors of society.** *A simple eatery in a rural area and a coffee shop in an urban area both ignite economic activity regardless of their business scale.* 3. **Entrepreneurship INTRODUCES new and innovative products and services.** *New products and services are always available in the market because of the ingenuity of entrepreneurs to seek opportunities and improve on them.* 4. **Entrepreneurship IMPROVES people's living standards.** *How can you look good if not for the services of your nearby salon or barber shop?* *How can you live without the sari-sari store near your house where you buy basic needs?* 5. **Entrepreneurship DISPERSES the economic power and creates equality.** *It balances the economy by distributing national income to more business rather than to only few monopolies.* 6. **Entrepreneurship CONTROLS the local wealth and balances regional development.** *It make sure local resources are used properly and that every area has an appropriate allocation of resources* 7. **Entrepreneurship REDUCES social conflicts and political unrest.** *Imagine if there are no or only few sari-sari store or supermarket stores in your area. All of you will then fight for the food supplies because the store cannot supply all your needs.* 8. **Entrepreneurship ELICITS economic independence and capital formation**. *A country with more entrepreneurs is highly likely to become financially independent and will less likely need the help of other countries. This also applies to families, barangays, and cities.* *Entrepreneurship creates wealth instead of borrowing wealth.* Who is the Entrepreneur? The word **"Entrepreneur"** has a *French* origin and was coined from the words: **Entre**- "**between"** & **Pendre**- **"to take"** **Entrepreneur** - Is a unique individual who has the innate ability and extraordinary dedication to establish and manage a business, acknowledging all the risks and reaping its rewards. - Will only expect returns once he or she already added or created value out of an opportunity. - One's natural talent is being perceptive for opportunities in his or her surroundings that normal people don't give importance to or often neglect. - **LEADERSHIP** is the core of every entrepreneur. [Factors Affecting Entrepreneurship:] **1. PERSONALITY FACTORS** - which include initiative, proactive, problem solver, perseverance persuasion, a planner, risk-taker **2. ENVIRONMENTAL FACTORS** - which include political, climate, legal system, economic and social conditions and market situations. [Personality Factors:] **A. INITIATIVE** - doing things even before being told. **B. PROACTIVE** - which means he can classify opportunities and seize it. **C. PROBLEM SOLVER** - which means he can retain good relations with other people. **D. PERSEVERANCE** - meaning he will pursue things to get done regardless of challenges. **E. PERSUASION** - means that he can entice people to buy even if they don't want to. **F. A PLANNER** - he makes plans before doing things and does not fail to monitor it. **G. RISK-TAKER** - which means that he is willing to gamble but he will calculate it first. [5 Types of Entrepreneurs:] **1. INNOVATIVE ENTREPRENEURS** - They are those who always make new things by thinking of new ideas. They have the ability to think newer, better and more economical ideas. **2. IMITATING ENTREPRENEURS** - They are those who don't create new things but only follow the ideas of other entrepreneurs. **3. FABIAN ENTREPRENEURS** - They are skeptical about changes to be made in the organization. They don't initiate but follow only after they are satisfied. **4. DRONE ENTREPRENEURS** - They are those who live on the labor of others. They are die-hard conservatives even ready to suffer the loss of business. **5. SOCIAL ENTREPRENEURS** - They are those who initiate changes and drive social innovation and transformation in the various fields such as education, health, human rights, environment and enterprise development. [Economic Benefits of Entrepreneurship in society:] 1. Produces 2. Amplifies 3. Introduces 4. Improves 5. Disperses 6. Controls 7. Reduces 8. Elicits [Factors Affecting Entrepreneurship:] 1. Personality Factors 2. Environmental Factors [Personality Factors:] 1. Initiative 2. Proactive 3. Problem Solver 4. Perseverance 5. Persuasion 6. A Planner 7. Risk-taker [5 Types of Entrepreneurs:] 1. Innovative Entrepreneurs 2. Imitating Entrepreneurs 3. Fabian Entrepreneurs 4. Drone Entrepreneurs 5. Social Entrepreneurs