INTRODUCTION TO ENTREPRENEURSHIP

Question 1

FRENCH word meaning “to undertake, set about, or to try”

Answer 1

ENTREPRENDRE

Question 2

processes of entrepreneurship (3) in business operations

Answer 2

1. creating
2. launching
3. managing

Question 3

entrepreneurs create new ____ (4)

Answer 3

1. business/es
2. idea/s
3. goods & services
4. procedures

Question 4

what does an entrepreneur do (4)

Answer 4

1. develops
2. assumes risks
3. setting up products
4. satisfy customers

Question 5

entrepreneurs satisfy customers’ ____ (2)

Answer 5

1. needs (essential)
2. desires (wants)

Question 6

• they have the ability to FIND opportunities, ACT ON opportunities, and TRANSLATE the opportunities into products that would satisfy the market
• they have the capacity to recognize the MARKET POTENTIAL of creativity and organize the resources needed to turn into a beautiful MARKET INNOVATION
• one who undertakes INNOVATIONS, FINANCE, and BUSINESS ACUMEN in an effort to transform innovations into economic goods

Answer 6

entrepreneur

Question 7

keenness and quickness in understanding and dealing with a “business situation” in a manner that is likely to lead to a good outcome

Answer 7

business acumen

Question 8

different definitions of entrepreneur according to these people (5)

Answer 8

1. Adam Smith (1776)
2. Jean Baptiste Say (1803)
3. John Stuart Mill (1848)
4. Carl Menger (1871)
5. Alfred Marshall (1936)

Question 9

“An entrepreneur is a person who ACTS AS AGENT IN TRANSFORMING DEMAND INTO SUPPLY”

Answer 9

ADAM SMITH

Question 10

“An entrepreneur is a person who SHIFTS RESOURCES from an area of LOW PRODUCTIVITY TO HIGH PRODUCTIVITY”

Answer 10

JEAN BAPTISTE SAY

Question 11

“An entrepreneur is a PRIME MOVE IN THE PRIVATE ENTERPRISE. They are the FOURTH FACTOR of production after land, labor, and capital”

Answer 11

JOHN STUART MILL

Question 12

“the entrepreneur acts as an ECONOMIC AGENT who transforms resources into products and services. The entrepreneur TRANSFORMS and GIVES ADDED VALUE”

Answer 12

CARL MENGER

Question 13

“the process of entrepreneurship or business development is incrimental or EVOLUTIONARY. It EVOLVES FROM SOLE PROPRIETORSHIP TO A PUBLIC COMPANY”

Answer 13

ALFRED MARSHALL

Question 14

• establishes a new entity to offer a new or existing product or service into a new or existing market, whether it is for a profitable or non-profitable outcome
• able to perceive an opportunity for a business and create an organization to develop and manage that business successfully
• organizes, manages, and assumes the risks of a business (Kuratko &Hodgetts, 2001)

Answer 14

entrepreneur

Question 15

theories of entrepreneurship (5)

Answer 15

1. economic theory
2. sociological theory
3. entrepreneurship innovation theory
4. psychological theory
5. theory of achievement motivation / achievement theory (Kakinada experiment)

Question 16

• entrepreneurship and economic growth takes place when ECONOMIC CONDITIONS are favorable
• ECONOMIC INCENTIVES are the main motivators

Answer 16

ECONOMIC THEORY OF ENTREPRENEURSHIP

Question 17

economic incentives as main motivators under the economic theory (6, familiarize lang)

Answer 17

1. taxation policy
2. industrial policy
3. sources of finance and raw material
4. infrastructure availability
5. investment and marketing opportunities
6. access to information (market conditions, technology, etc.)

Question 18

• an Irish French Economist
• viewed entrepreneurs as AN AGENT WHO BUYS FACTORS OF PRODUCTION at certain prices in order to combine them into a product with a view to selling it at uncertain prices in the future

as an example, he illustrated farmers ( as entrepreneur) who pays out contractual incomes to landlords and laborers (certain) while sells their crops at a (uncertain) price

Answer 18

RICHARD CANTILLON (under economic theory)

Question 19

the ROLE of an entrepreneur under the ECONOMIC THEORY

Answer 19

RISK TAKER

Question 20

• entrepreneurship is likely to get a boost in a PARTICULAR SOCIAL CULTURE
• the entrepreneurial behavior of individuals in a society is influenced by: society’s values, religious beliefs, customs, taboos, etc.
• the entrepreneur merely performs a role as per the EXPECTATIONS OF THE SOCIETY

Answer 20

SOCIOLOGICAL THEORY IN ENTREPRENEURSHIP

Question 21

• an aristocratic individual
• “entrepreneur is one who combines the land of one,the labor of another and the capital of yet another to PRODUCE A PRODUCT.
• “By selling the product in the market he pays interest on the capital ,rent on the land and wages to laborers and what remains is his PROFIT.

Answer 21

JEAN BAPTISTE SAY (under sociological theory)

Question 22

This was for the first time a distinction was made between the CAPITALIST as the FINANCER and the ENTREPRENEUR AS THE ORGANIZER.

Answer 22

FACTORS OF PRODUCTION IN THE 20TH CENTURY (under sociological theory)

Question 23

FACTORS OF PRODUCTION IN THE 20TH CENTURY

Answer 23

1. land
2. capital
3. labor

Question 24

role of an entrepreneur under the SOCIOLOGICAL THEORY

Answer 24

ORGANIZER

Question 25

-Theory was propounded by JOSEPH SCHUMPETER. -As per this theory, ENTREPRENEURSHIP is INNOVATION. -This theory ignores the earlier two abilities, which were till then considered key for an entrepreneur. *Organizing Abilities *Risk Taking Abilities

Answer 25

ENTREPRENEURSHIP INNOVATION THEORY

Question 26

role of an entrepreneur under the ENTREPRENEURSHIP INNOVATION THEORY

Answer 26

INNOVATOR

Question 27

- a 20th century Austrian economist - "An entrepreneur is a person who is willing and able to CONVERT a new idea or invention into a SUCCESSFUL INNOVATION. - "Entrepreneurship resulted in new industries,even though it entailed COMBINING THE EXISTING inputs, in a new way.

Answer 27

JOSEPH SCHUMPETER

Question 28

an entrepreneur innovates when he: (5)

Answer 28

1. Introduces a new production 2. Introduces a new production method 3. Opens up a new market 4. Finds out a new source of raw material supply 5. Introduces a new organization in any industry

Question 29

Entrepreneurship gets a boost when society has sufficient supply of individuals with necessary PSYCHOLOGICAL CHARACTERISTICS

Answer 29

PSYCHOLOGICAL THEORY IN ENTREPRENEURSHIP

Question 30

under the PSYCHOLOGICAL THEORY, these are the psychological characteristics and the formation of such (7)

Answer 30

CHARACTERISTICS: 1. Need for achievement 2. A vision or foresight 3. Ability to face opposition, etc. THEY ARE FORMED: 4. during the individual's upbringing 5. by high standards of excellence 6. self reliance and 7. Low father dominance.

Question 31

- as the basis for entrepreneurial personality, DAVID MCCLELLAND emphasized the importance of doing things in a NEW AND BETTER WAY and decision making UNDER CERTAINTY. Through this, the entrepreneur fulfills both ECONOMIC and SOCIAL development. - DAVID MCCLELLAND also identified a need for: achievement, affiliation, and power. - stressed that people with HIGH ACHIEVEMENT ORIENTATION (need to succeed) are likelier to become entrepreneurs, wherein people are not influenced by money or external incentives and profits are only a measure of success and competency.

Answer 31

THEORY OF ACHIEVEMENT MOTIVATION IN ENTREPRENEURSHIP

Question 32

- The Need for Achievement was found highest among Entrepreneurship through an experiment. - Conducted by McClelland in America, Mexico and India (Kakinada) - Young adults were selected and put through a 3 months training to induce achievement motivation.

Answer 32

KAKINADA EXPERIMENT

Question 33

what is the process of the Kakinada Experiment (familiarize)

Answer 33

1. In the course content: - Trainees were asked to control their thinking and talk about themselves positively - trainees imagined themselves in need of challenges and success for which they were made to set planned achievable goals. - They tried to imitate their role models. 2. The achievement motivation had a positive impact on the performance of the participants. 3. It was deducted that traditional beliefs do not inhibit an entrepreneur.