module 1 Flashcards
“to undertake” (french)
ENTREPRENDE
a person who undertakes into business
ENTREPRENEUR
What Entrepreneurship means:
— creating business from scratch
— disrupting the equilibrium
— introducing something new
ENTREPRENEUR VS BUSINESSMAN
Entrepreneur is:
Game Changer
ENTREPRENEUR VS BUSINESSMAN
Businessman is:
Game Player
Classical Theories:
Old Theories
Neo Classical Theories:
New Theories
Makes new from scratch.
Creative
Makes new from an existing product.
Innovative
The Father of Entrepreneurship
Joseph Schumpeter
Schumpeter’s Theory
Theory of Economic Development
suggested that entrepreneurs— not just companies-were responsible for the creation of new things in the search of profit.
Joseph Schumpeter
focused on entrepreneurs as the bearers of uncertainty and believed they were responsible for risk premiums in financial markets.
Frank Knight
thought of entrepreneurship as a process that led to the discovery.
Israel Kirzner
What were the ideas of Schumpeter?
Entrepreneurship and Innovation
The basic concept of Kirzner’s theory of entrepreneurial is …
Alertness
…’s entrepreneur is a person who discovers previously unnoticed profit opportunities.
Kirzner
ENTREPRENEURSHIP IMPACTS:
— Filipino
— Economy
— Community
5 Salient Features of Entrepreneurship
- Art of Correct Practices
- Wealth Creating Venture/Business
- Providing Values to Customers
- Opening Self-Owned Business
- Managing Self-Owned Business
system that produce, distribute and consume goods and services
Economy
business or project or product
Enterprise
Coordinating Agent
— brings different parties
— facilitates communication
— oversees process
— ensure successful completion
Doesnt engage in international trade
Closed Economy
Remain constant over time
Stationary Equilibrium
Risk taker and Administrator
Marshallian Theory
5 General Steps
- Financially Stable
- Build Diverse Skill Set
- Consume Content Across Multiple Channels
- Identify a Problem to Solve
- Solve the Problem
3 Important Skills
- Planning
- Decision Making (Wisely, Soundly — informed)
- People’s Skills
PEC’s stands for
Personal Entrepreneurial Competencies
8 PEC’s
- Hardwork
- Self-Confident
- Disciplined
- Committed
- Ability to accept change
- Creative
- Initiative
- Profit-Oriented
4 Business Organization Ownership
- Sole Proprietorship
- Partnership
- Corporation
- Cooperative
Business Organization Ownership: one owner
Sole Proprietorship
Business Organization Ownership: two or 10 owners
Partnership
Two Types of Partnership
— General (equal)
— Limited (not equal/controlled)
Business Organization Ownership: 15 or More
Corporation
Business Organization Ownership: more than corporation
Cooperative
impact lf diminiship marginal utility
“the more you consume of something, the less extra satisfaction you get”
Neo-Classical
Focus of Classical
Suppies and Distribution
