ENTREPRENEURSHIP AND THE MARKET Flashcards by Adrielle Lagman

Entrepreneurship teaches us the following:

1.Entrepreneurship creates opportunity.
Entrepreneurship is an engine for favorable outcomes to be
created.

Entrepreneurship ensures social justice.
Entrepreneurship, when done with a social impact mindset,
becomes a powerful tool for equity, inclusion, and long-term
social change
Entrepreneurship instills in us confidence.
Entrepreneurship teaches us to be independent.
Entrepreneurship stimulates the economy.
Entrepreneurship creates demand. In turn, demand
stimulates consumer spending.
Entrepreneurship teaches us to fail and to persevere.
Nothing is ever that easy.
Entrepreneurship teaches us to become creative, innovative,
and inventive.
Entrepreneurship stimulates our minds to think of new
solutions to problems, new ways we can do things, and new
products for efficient living.

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Entrepreneurship is
more than just an economic term, it
is _____________-

a way of
thinking.

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ENTREPRENEURIAL
CHARACTERISTICS

In the study of __________, he mentioned that entrepreneurship is playing a crucial role in economic development.
It serves as the engine of economic growth, and positively relates to
economic growth through firm survival, job creation, and technological change.

Farsi et al. (2012)

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In the study of Farsi et al. (2012), he mentioned that entrepreneurship is playing a crucial role in economic development.
It serves as the __________, and positively relates to
economic growth through firm survival, job creation, and technological change.

engine of economic growth

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Entrepreneurial research, generally, can be categorized into two:

CULTURAL, POLITICAL,
AND ECONOMIC
CONTEXTUAL
FACTORS’ INFLUENCE

CHARACTERISTICS OR
TRAITS OF THE
ENTREPRENEUR

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ACCORDING TO ATHERON
(2004), ___________ IS A KEY ENTREPRENEURIAL BEHAVIOR, AND HAS BEEN ASSOCIATED
WITH ENTREPRENEURSHIP FOR A LONG TIME. THE EARLY DEFINITIONS OF
ENTREPRENEURSHIP REVOLVED AROUND THE WILLINGNESS OF THE ENTREPRENEUR TO ENGAGE IN CALCULATED BUSINESS-RELATED RISKS.

RISK-TAKING

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IT WAS HYPOTHESIZED BY MCCLELLAND (1965) THAT THE __________MANIFESTS THE KEY TO SET OF ENTREPRENEURIAL BEHAVIORS. IT IS DEFINED AS THE DESIRE TO DO WELL FOR THE SAKE OF AN INNER FEELING OF PERSONAL ACCOMPLISHMENT.

“NEED FOR ACHIEVEMENT”

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A person who is ______ is willing to learn and accept new ideas and opportunities. Remaining to open to these business opportunities helps in finding success in different ways

Open Mindedness

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Some entrepreneurs start uncertain businesses. This requires _____________ for they need to confront rapidly changing situations where they are not able to anticipate the outcomes’ nature

Tolerance to Ambiguity

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Rotter (1966) discussed that __________- can be defined as an individuals’ perception of events being contingent upon one’s own action or characteristics

Internal Locus of Control

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The ________ entrepreneur constantly thinks in terms of innovation. Innovaion is the process of constantly looking for an d better ways of doing business

Visionary

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Entrpreneurial Characteristics

need for achievement

risk taking

open mindedness

tolerance of ambiguity

internal locus of control

visionary

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Types of Entrepreneurs

BASED ON:

THE TYPE OF BUSINESS

THE USE OF TECHNOLOGY

OWNERSHIP

THE SIZE OF ENTERPRISE

CLARENCE DANHOF CALASSIFICATION

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ENTREPRENEUR BASED ON THE TYPE OF BUSINESS:

TRADING ENTREPRENEUR

MANUFACTURING ENTREPRENEUR

AGRICULTURAL ENTREPRENEUR

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They procure the finished products from the manufacturers and sell these to the customers directly or through a retailer

Trading Entrepreneur

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Convert raw materials into finsihed products

Manufacturing Entrepreneur

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Cover a wide spectrum of agricultural activities like cultivation, marketing of agricultural produce, irrigation, mechanization, and technology

Agricultural Entrepreneur

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Entrepreneur Based on the use of Technology

Technical Entrepreneur

Non Technical Entrepreneur

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These are the entrepreneurs who make use of science and tehcnology in their enterprises. Expectedly, they use new innovative and methods of production in their enterprises

Technical Entrepreneur

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They are concerned with the use of alternative and imitaitve methods of marketing and distribution strategies to make their business survive and thrive in the competative market

Non-Technical Entrepreneur

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Entrepreneur based on Ownership

Private Enterpreneur

State Entrepreneur

Joint Entrepreneur

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A _______ is one whoa has an individual sets up a business enterprise. He/She is the sole owner of the enterprise and bears the entire risk involved in it

Private Enterpreneur

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When the trading or industrial venture is taken by the state or government

State Entrepreneur

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When a dprivate entrepreneur, the government and/or other entrepreneurs jointly ru a business enterprise

Joint Enterpreneur

Entrepreneur BASED ON THE SIZE OF ENTERPRISE

Small Scale Medium Scale Large Scale

An entrepreneur who has made investment in plant and machinery up to Php. 15M. is called “___________"

small-scale entrepreneur.

The entrepreneur who has made investment in plant and machinery above Php. 15M to Php. 100M is called “____________.”

medium-scale entrepreneur

The entrepreneur who has made investment in plant and machinery more than Php. 100M is called “_________.”

large-scale entrepreneur

Entrepreneur based on Clarence Danhof's Classification

Innovating Immitative Fabian Drone

Introduce new goods, inaugurate new method of production, discover new market, and reorganize the enterprise

Innovative

These are characterized by readiness to adopt successful innvation inaugurated by innovationg entrepreneurs

Immitative

Characterized by very great caution and skepticism in experimenting any change in their enterprises

Fabian

Characterized by a refusal to adopt opportunities to make changes in production formulas even at the cose of severely reduced returns relatiove to other like producers

Drone

ENTREPRENEUR BEING DIFFERENT FROM A REGULAR OFFICE EMPLOYEE

1. Required Education 2. Required Skills 3. Financial Outlook

In terms of education, educational requirements for entrepreneurs are non-specific.

Required Education

Entrepreneurs need visionary thinking, risk-taking, leadership, and strategic decision-making, while employees focus more on execution, risk management, followership, and task-oriented problem-solving within an established system.

Required Skills

Earnings for entrepreneurs vary drastically, and income is often unstable, especially in the early days of a new business

Financial Outlook

________________-RECOGNIZES ENTREPRENEURSHIP AS AN ENGINE OF ECONOMIC GROWTH. ___________ HIGHLIGHTS THE ROLE OF PRIVATE ENTERPRISES IN SUPPORTING EQUITABLE DISTRIBUTION OF INCOME AND WEALTH, SUSTAINING PRODUCTION OF GOODS AND SERVICES, AND EXPANDING PRODUCTIVITY, THEREFORE RAISING THE QUALITY OF LIFE.

THE 1987 PHILIPPINE CONSTITUTION ARTICLE XII SECTION 1

____________ — Philippine enterprises must innovate and gain market access to remain competitive globally. Challenges include infrastructure, legal frameworks, financing, and skill development.

Development & Competitiveness

__________ - Micro, small, medium enterprises (MSMEs) struggle with capital and financing, making business growth difficult.

Access to Credit

_________ — Enterprises need better infrastructure, innovation support, and supply chain integration to compete internationally.

Global Integration

_____________ — Groups like the Philippine Center for Entrepreneurship (PCE) foster collaboration among businesses, academia, and government to drive start-ups and economic growth.

Enterprise Networks

_____________ - More than an economic activity, entrepreneurship empowers individuals, creates jobs, and drives inclusive growth.

Entrepreneurship Mindset

The biggest challenges faced by an entrepreneur

Lack of innovative ideas Prior experience Capital constraints The menace of multitasking Standing out from the crowd Few resources Sensible scaling

The system which allocates goods and services through the mechanism of demand and supply. To equitably allocate these goods and services societies established and adopted different market models.

MARKET SYSTEM

The Basic Market Models

Perfect or pure type Imperfect or Non - Pure Type

A market situation where there is a large number of independent sellers offering identical products.

Pure Competition.

A market situation where there is only one seller or producer supplying unique goods and services.

Pure Monopoly.

Pertains to market situation where there is relatively large number of small producers or suppliers selling similar but not identical products.

Monopolistic Competition.

A market situation where there are a few firms offering standardized or differentiated goods and services.

Oligopoly.

___________- is known as one buyer market situation.

Monopsony

A few buyer market situation is known as ___________.

oligopsony

Determinants of Market Structure

Economic Freedom Technology Government Laws and Policies

The right to own property and do business affects market structures. In a free market, weaker competitors exit, leading to monopolies or oligopolies.

Economic Freedom

Advances create better substitutes and force inefficient firms out, reducing competition and leading to industry concentration.

Technology

The right to own property and do business affects market structures. In a free market, weaker competitors exit, leading to monopolies or oligopolies.

Government Laws and Policies

It is a set of economic institutions that dominates a given economy; a set of rules of conduct, established way of thinking, or accepted ways of doing things.

ECONOMIC SYSTEM

The factors of production or distribution are owned and managed by private individuals or corporations. It has been known by the terms market economy or lassez faire economy.

Free Market Economy

It is a combination of capitalism and communism. The major and _ strategic industries are owned and managed by the state while the minor industries belong to the private sector.

Mixed Economy

It is exactly the opposite of capitalism. The factors of production and distribution are owned and managed by the state. It is also called a ________ or classless society.

Command Economy