(P) Lesson 1: History, Development, Current Trends and Evolution (book and transes based) Flashcards
Book-Based
catalysts of CHANGE within the marketplace
Entrepreneurs
T or F. Entrepreneurship are individuals who recognize opportunities where others see chaos, contradiction, and confusion.
F (entrepreneurs; ba’t b da’t perfect duh)
This has been revitalized because
of the efforts of the entrepreneurs
Global economy
it’s the most significant force for
economic development
free enterprises
Meaning of the french word “Entreprendre”
Malamang entrepreneur pero “to undertake” talaga sagot
One who undertakes to organize, manage, and assume the risks of a business
Entrepreneur
represents the cognition and commitment to view the world with an innovative perspective.
entrepreneurial mindset
Who said this? ““Entrepreneurs assume and organize the risk of a business in return for profits.”
French Economist, Richard Cantillon
It was evolving in England during the same period, with the entrepreneur playing a visible role in risk taking and the transformation of resources
Industrial revolution
Who stated this “Supply creates its own demand.”
Jean Baptiste Say (1803)
For Joseph Schumpeter, the dynamic economic growth is known as?
“creative destruction”
consist in doing things that are not generally done in the ordinary course of business routine
Entrepreneurship
its an economic and political system in which a country’s trade and industry are controlled by private owners for profit, rather than by the state
capitalism
it is called as a largely free of state control
Free enterprise
Who said this “Entrepreneurship is a dynamic process of creating incremental wealth.”
Robert C. Ronstadt
It is created by individuals who assume the major risks in terms of equity, time, and/or career commitment providing value for some product or service
Wealth
is a dynamic process of vision, change, and
creation
Entrepreneurship
T or F. Entrepreneurship only needs one application of energy or passion toward the creation.
F (passion and energy goes hand in hand)
T or F. Entrepreneurs independently own and operate a small business.
F (small business owners)
T or F. Small business owners do not engage in many new or innovative practices.
T
T or F. Small business owners prefers more stable and more aggressive approach to running businesses.
F (less aggressive)
Their businesses are characterized by
innovative practices and sustainable growth
Entrepreneurs bading
T or F. Entrepreneurs and their financial backers usually seek rapid growth and immediate profits.
T
Debunk the 1st myth: Entrepreneurs are doers, not thinkers.
They plan their moves carefully which indicates that thinking entrepreneurs are as important as “doing” entrepreneurs
Debunk “Entrepreneurs are born, not made”
Entrepreneurs are not predetermined by birth, it is studied, learned and experienced.
Debunk “Entrep r always inventors”
Take Ray Kroc (Mcdo) as an example, he didn’t invent the fast-food franchise but he made it the largest fast-food enterprise. try mo rin alamin yung nagpasikat ng coffee culture, they didn’t invent Starbucks but they made them a lot of money with their marketing and innovation.
Debunk “Entrep are academic and social misfits”
Entrepreneurs that dropped out from college to pursue their businesses saw an opportunity to be successful, not because they didn’t value education. Statistically speaking, there are more successful entrepreneurs that are graduates than entrepreneurs that stopped studying.
Debunk “Entrepreneurs must fit the profile”
The environment, the venture, and the individual have interactive effects that result to many different profiles.
Debunk “Myth 6: All Entrepreneurs need is money”
Every entrepreneur needs capital to make their businesses survive. To be successful, money is important, but more so is managerial competence, adequate financial understanding, careful planning, and many more.
Money is a resource but never an end in itself.
Debunk “Entrepreneurs need is luck”
Luck happens when preparation meets opportunity. They are simply better prepared to deal with situations and turn
them into successes.
What appears to be luck is actually preparation, determination, knowledge, innovativeness and desire.
Debunk “Entrepreneurship is unstructured and chaotic”
Entrepreneurs are heavily involved in all facets of their ventures. As a result, they are typically well-organized individuals. They tend to have a system, elaborate or not
T or F. Most entrepreneurial initiatives are successful.
T (The statistics of entrepreneurial failure rates have been misleading over the years.)
Who reported that the high failure rate most commonly accepted might be misleading; he conducted a research on businesses in the US that started 1977.
Bruce A. Kirchhoff
T or F. Less than 50% ventures survive today.
F (more than)
major element in the entrepreneurial process
risk
Debunk “Entrepreneurs are extreme risk takers”
Although it may appear that an entrepreneur is gambling on a wild chance, the entrepreneur is usually working on a moderate or calculated risk.
Most successful entrepreneurs work hard through planning and preparation
T or F. Minority groups are provided an avenue to contribute to the mainstream market as one of the impact of entrep ventures.
T
T or F. Entrepreneurs do not continue to be the answer to any economic downturn
F
Entrepreneurs create entirely new markets by offering?
innovative products
One major benefit of offering a new innovative product in the market?
new ventures having no direct competition
T or F. The U.K. is the leader in entrepreneurship
education at both the undergraduate and
graduate levels.
F (US)
entrepreneurial action within large organizations.
Corporate entrepreneurship
seeking innovative solutions to world problems
Social entrepreneurship
examining the ways that entrepreneurs think and act
Entrepreneurial cognition
What research shows significant entrepreneurial success (2000-2009)
WEF
Same techniques & principles whether in a large organization or a new venture, business or nonbusiness, government or NGO
Entrepreneurial discipline
The symbol of business tenacity and achievement
Entrepreneurial leadership
a verifiable and coherent formulation of relationships, or underlying principles that either explain entrepreneurship, predict entrepreneurial activity, or provide normative guidance
Theory of Development of Entrepreneurship
external factors influence the actions of the entrepreneur
macro view
it divides entrepreneurship into specific activities, either macro or micro in viewpoint but both address the conceptual nature of entrepreneurship.
schools-of-thought approach
a view that presents a broad array of factors that relate to success or failure in contemporary entrepreneurial ventures.
macro
what view exhibits a strong internal locus of control point of view?
macro
external factor that affect a potential entrepreneur’s lifestyle
environmental ST (school of thought)
What is/are the entire focus of financial/capital ST emphasis?
search for seed and growth capital
The entrepreneurial venture is viewed from a financial management standpoint
financial/capital ST
The frustration arising from such motivates an individual to be entrepreneurial
displacement ST
type of displacement: Political regimes, governmental regulations and policies push an individual to entrepreneurial pursuits
political displacement
type of displacement: Discrimination (ethnic background, religion, race, sex) pushes individuals to entrepreneurial pursuits
cultural
type of displacement: Economic recession or depression, job loss, capital shrinkage, etc., can push individuals to entrepreneurial pursuits
economic
examines the factors that are specific to entrepreneurship and are part of the internal locus of control
micro
T or F. In macro view, the entrepreneur has the ability or control, to direct or adjust the outcome of each major influence in this view.
F (micro)
