Lecture 1 Flashcards
Origin and Forms of Entrepreneurship
“Entrepreneurship” came from the French word
entreprende which means “to do something” or
“to undertake”
Entrepreneurship
“Entrepreneurship” came from the French word ____ whcih means ____
Entrepreneurship
The Earliest Entrepreneurship
Barter and Exchange System
In this period, entrepreneur
is a term for a person who
manages large production
projects
Middle Ages
That individual takes no risk
as capital was provided by
the government
Middle Ages
Link between risk and
entrepreneurship further
established
17th Century
- An entrepreneur was a
person who entered a
contract with the
government to perform a
service or to supply
stipulated products.
17th Century
Founder of the Royal
Bank of France and the
Mississippi Company,
which had an exclusive
franchise to trade
between France and the
new world.
French entrepreneur
John Law
John Lawis the founder of
Royal Bank of France and the
Mississippi Company,
He described an entrepreneur as “a risk taker, observing that merchants, farmers,
craftsmen, and other sole proprietors buy at a certain price and sell at an uncertain
price, therefore operating at a risk”
Richard Cantillon
Richard Cantillon
He described an entrepreneur as “a risk taker, observing that merchants, farmers,
craftsmen, and other sole proprietors buy at a certain price and sell at an uncertain
price, therefore operating at a risk”
Entrepreneurship as a
form of management
18th Century
manager becomes an entrepreneur when
the exercise of his/her judgment is liable to error and s/he assumes the
responsibility for its correctness”
entrepreneur vs manager
entrepreneur
calculate risks and make
informed judgments and decisions. Those
who choose to avoid taking risks favors security of being employees
capitalist vs entrepreneur
capitalist
the person with capital
capitalist vs entrepreneur
entrepreneur
the one who needed capital
Entrepreneurs were viewed
to have the role of
recreating or
revolutionizing the pattern
of production by
introducing an invention
2oth Century
Jean Baptiste-Sayefined entrepreneurship as
the shifting of economic resources out of an area of lower productivity into higher productivity and greater yield
defined entrepreneurship as “the shifting
of economic resources out of an area of lower
productivity into higher productivity and
greater yield.”
Jean Baptiste-Say
Entrepreneurship and Innovation
Jeremy Bentham Bentham viewed entrepreneurs as
innovators.
Entrepreneurship and Innovation
viewed entrepreneurs as innovators
Jeremy Bentham
Entrepreneurship and Innovation
according to Jeremy Bentham, entrepreneurs…
“depart from routine, discover new markets, find new sources of supply, improve existing products and lower the costs of production”
Entrepreneurship and Innovation
Five cases of new combinations on innovation by Joseph Schumpeter:
- Introduction of a
new good - New method of
production - Opening of a new market
- Conquest of a new source of supply of raw materials
- Carrying out of new organization of any industry
Peter Drucker (1964)
The founder of modern management
“An entrepreneur is one who searches for change, responds to it, and exploits it as an opportunity”
“An entrepreneur is one who searches for change,
responds to it, and exploits it as an opportunity”
Peter Drucker (1964)
The founder of modern management
Peter Drucker (1964)
Modern Definition of Entrepreneurship
a process of creating something different with value by devoting the necessary time and effort, assuming the accompanying risks and receiving rewards of monetary and personal satisfaction
Entrepreneurs
are …
- Calculated risk-takers
- Persistent
- Committed
- Demanding
- Goal setter
- Information seeker
- systematic
- Persuasive and have good network
- Confident
Types of Entrepreneur
Innovative
Imitating
Fabian
Drone
Types of Entrepreneur
Innovative
- Key figure in the process of development
- Highly motivated and talented and able to
foresee potentially profitable opportunities - Not an inventor but commercializes inventions to
produce better goods
Types of Entrepreneur
Key figure in the process of development
Innovative
Types of Entrepreneur
Highly motivated and talented and able to
foresee potentially profitable opportunities
Innovative
Types of Entrepreneur
Not an inventor but commercializes inventions to produce better goods
Innovative
Types of Entrepreneur
Characterize by readiness to adopt successful
innovations initiated by innovating entrepreneurs
Adoptive or Imitating
Types of Entrepreneur
Adoptive or Imitating
- Characterized by great caution and skepticism in
practicing any change - They are not much interested in taking risks and
they try to follow the footsteps of their
predecessors.
Types of Entrepreneur
They imitate techniques and technology initiated
by others
Adoptive or Imitating
Types of Entrepreneur
In developing countries, adoptive entrepreneurs
fill the void from having very few innovative
entrepreneurs
Adoptive or Imitating
Types of Entrepreneur
Fabian
Types of Entrepreneur
They are not much interested in taking risks and they try to follow the footsteps of their
predecessors.
Fabian Entrepreneurs
Types of Entrepreneur
Characterized by great caution and skepticism in
practicing any change
Fabian Entrepreneurs
Types of Entrepreneur
Drone
- One who follows traditional methods of
production - Under no circumstances will a drone
entrepreneur change the method of
production he has introduced. - Very often their products lose their
marketability and their operation
becomes uneconomical leading to them
being pushed out of the market.
Types of Entrepreneur
One who follows traditional methods of
production
Drone Entrepreneurs
Types of Entrepreneur
Under no circumstances will a drone entrepreneur change the method of production he has introduced.
Drone Entrepreneurs
Types of Entrepreneur
Very often their products lose their marketability and their operation becomes uneconomical leading to them being pushed out of the market.
Drone Entrepreneurs
Rewards of an Entrepreneur
Make money
Be your own boss
Express creativity
Feel fulfilled
Risks of being an entrepreneur
Risk of failure
Long hours of hard work
Unwanted responsibility
