Module 3

Question 1

Contributions of entrepreneurship

Answer 1

1. Develop new markets
2. Discover new sources of materials
3. Mobilize capital resources
4. Introduce new technologies, new industries and new products
5. Create employment

Question 2

Under the modern concept of marketing, markets are people who are willing and able to satisfy their needs. In economics, this is called effective demand. Entrepreneurs are resourceful and creative. They can create customers or buyers. This makes entrepreneurs different from ordinary businessmen who only perform traditional functions of management like planning, organization and coordination.

Answer 2

Develop new markets

Question 3

Entrepreneurs are never satisfied with traditional or existing sources of materials. Due to their innovative nature, they persist on discovering new sources of materials to improve their enterprises. In business, those who can develop new sources of materials enjoy a comparative advantage in terms of supply, cost and quality. In Japan, due to the extreme scarcity of local new materials, entrepreneurs give top priority to research and development in order to discover alternative materials.

Answer 3

Discover new sources of materials

Question 4

Entrepreneurs are the organizers and coordinators of the major factors of production, such as land, labor and capital. They properly mix these factors of production to create goods and services. Capital resources, from a layman’s view, refer to money. However, in economics, capital resources represent machines, buildings and other physical productive resources. Entrepreneurs have initiative and self-confidence in accumulating and mobilizing capital resources for new business or business expansion.

Answer 4

Mobilize capital resources

Question 5

Aside from being innovators and reasonable risk-takers, entrepreneurs take advantage of business opportunities, and transform these into profits. So, they introduce something new or something different. Such entrepreneurial spirit has greatly contributed to the modernization of our economy. Every year, there are new technologies and new products. All of these are intended to satisfy human needs in a more convenient and pleasant way.

Answer 5

Introduce new technologies, new industries, and new products

Question 6

The biggest employer is the private business sector. Millions of jobs are provided by factories, service industries, agricultural enterprises and the numerous small-scale businesses. For instance, the super department stores like SM, Uniwide, Robinson and others employ thousands of workers. Likewise, giant corporations like SMC, Ayala and Soriano Group of Companies are great job creators. Such massive employment has multiplier and accelerator effects on the whole economy. More jobs mean more incomes. This increases demand for goods and services. This stimulates production. Again, more production requires more employment

Answer 6

Create employment

Question 7

Under the modern concept of marketing, markets are people who are willing and able to satisfy their needs.

Answer 7

Effective demand