Module 8 Flashcards
The point at which identifiable consumer demand meets the feasibility of satisfying the requested product or service.
Entrepreneurial opportunity
Twentieth-century economist known for his theories on entrepreneurship.
Joseph Schumpeter
Refers to entrepreneurial innovation that disrupts and reshapes industries while fostering economic growth.
Examples: railroads, cabs and ride-sharing services
Creative destruction
What are the five methods Schumpeter identified for finding new business opportunities?
- Develop a new market for an existing product.
- Find a new supply of resources.
- Use existing technology to produce an old product in a new way.
- Use existing technology to produce a new product.
- Use new technology to produce a new product.
the amount of a product or service produced.
Supply
is the consumer or user desire for the outputs, the products, or services produced.
Demand
How are supply and demand related to theories of opportunity?
Theories of opportunity relate to supply and demand by identifying market needs and resource availability.
What are recent drivers for change in entrepreneurship?
New funding options, technological advancements, globalization, and industry-specific economics.
Increased access to capital
Social media and crowdfunding
Provides new opportunities to previously underserved groups
New funding options
drones, artificial intelligence, cell phones, advancements in medical care
Access to learning about new technology
Technological advancements
Expansion of import and export
Spread of ideas
Local and regional markets → world market
Globalization
A strong economy can fuel other businesses
growth in the housing market can spur growth in housing-related products
Industry-specific economics
