exam 1 Flashcards
what is entrepreneurship?
Entrepreneurship Defined: activity and way of thinking
- activity: someone who starts, manages, organizes, and assumes the risks of a business or enterprise
Key Traits of an Entrepreneur: passion for value creation, innovativeness, insight into and anticipation of the wants and needs of customers, good judgement as to what will satisfy those wants and needs, vision, imagination, alertness to opportunity, ability to cope with uncertainty and risk, initiative
Discovering an Opportunity, Serving a Need
What is the Entrepreneur’s Role in Creating Value?
Value is in the Eye of the Beholder: it’s subjective
Creating Value and Serving Others
Economic Growth and the Entrepreneur
How Can Entrepreneurs Use Economics to Make Better Decisions?
Scarcity, Choice and Trade-offs
Thinking at the Margin
Opportunity Cost
How Does Trade Create Wealth?
Division of Labour and Specialization
Competition as Cooperation
Economic Freedom and Prosperity
What Do Profit and Loss Tell Us?
Role of Prices
How Prices Emerge
The Function and Importance of Profit and Loss
What Institutional Factors Encourage Entrepreneurship?
The Marvel of the Market
Incentives Matter
Entrepreneurship Stifled
What are the Links between Entrepreneurship, Personal Character, and Civil Society?
Virtue and Entrepreneurship
Markets and Morality
Individualism and Civil Society
How Do I Become an Entrepreneur?
Getting Started
Advice for Budding Entrepreneurs
Learning from Failure
what are the 3 stages to modern entrepreneurial heros journey
- motivation
- uncharted territory, encounters those who have a stake in maintaining status quo
- returns to community with product/service
what is entrepreneurship?
value creation, risk bearing, creative destruction, alertness
where does entrepreneurship flourish?
well-defined property rights, sound legal/monetary systems, effective contract enforcement, limited government intervention
individual freedom gives rise to entrepreneurial activity, an increase in output and thus an increase in consumptive opportunities
according to law professor donna matias, what is an entrepreneur?
problem solvers, wealth creators, innovators, not afraid to depart from the familiar, resilient in the face of challenges
7 traits of an entrepreneur
- tenacity
- passion
- courage
- vision
- self-belief
- flexibility
- rule-breaking
how is entrepreneurship related to discovering an opportunity to meet a need?
by profitably solving a problem or filling a need, entrepreneurs also set the stage for economic growth and prosperity by creating more jobs and encouraging more entrepreneurship
what is entrepreneurship?
- serving yourself by first serving others well
- creating value by moving resources into more productive areas
- innovating new products or processes to replace old ones
- discovering unnoticed opportunities to profit and acting on those opportunities
what is it that creates powerful incentives for individuals to discover and make use of information before it is widely known by other people
potential for profit
what 3 things do entrepreneurs do?
innovate, create jobs, create new wealth
what shapes and regulates behaviour in the marketplace
competition
what is value?
all we can say definitively is that individuals exchange things they value less for things they value more
what are prices
information signals wrapped in an incentive
define marginal utility, marginal cost and goods with diminishing marginal utilities
marginal utility: additional benefit that consumers receive when they consume an additional unit of a good or service
marginal cost: cost from each additional increment/unit of a good
goods with DMU: goods that provide less utility with each additional unit consumed
