Prelim Flashcards by Madie Era

Mobilizing the idle savings of public. They employ their own as well as borrowed resources for setting up their enterprises. Such type of entrepreneurial activities leads to value addition and creation of wealth, which is very essential for the industrial and economic development of country

Promotes capital formation

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Entrepreneurs provide immediate large scale employment opportunities to the unemployed which is a chronic problem of underdeveloped nations

Creates large-scale employment opportunities

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Entrepreneurs help to remove regional disparities to setting up of industries in less developed and backward areas

Promotes balanced regional develpment

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Economic power is the natural outcome of industrial and business activity. Industrial development normally leads leads visitation concentration of economic power in the hands of a few individuals which results in the growth of monopolies

Reduces concentration of economic power

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It stimulates equitable redistribution of wealth and income in the interest of the country to more people and geographic areas, thus giving benefit to a larger sections of the society.

Wealth creation and distribution

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Entrepreneurs are always on the lookout for opportunities

Increasing gross national product and per capita income

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Increase in the standard of living of the people is a characteristics feature of economic development of the country

Improvement in standard of living

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Entrepreneurs help in promoting a country’s export-trade, which is an important ingredient of economic development.

Promote country’s export trade

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Entrepreneurs like to work with an environment of change and try to maximize profits by innovation.

Induces backward and forward linkages

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Entrepreneurs act as a catalytic agent for change which results in chain reaction.

Facilitates overall development

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Two imporatnt economic factors that hinder our growth as a nation

Poverty
Population explosion

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The following factors are contributory determinants to our slow growth in economic development as a nation

The Filipino Values and Culture
Income opportunity in the countryside is still subsistence in nature
The failure to develop better system of education
Availability of needed capital

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Probided the necessary funds for the development of entrepreneurs in the countryside.

R.A. 6977 aka MAGNA CARTA FOR SMALL ENTERPRISES

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Granting exemptions from any and all government rules and regulations and other incentive and benefits and for other purposes.

R.A. 6810 aka MAGNA CARTA FOR COUNTRYSIDE AND BARANGAY BUSINESS ENTERPRISES

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If you are determined to run your own business, you must concentrate on your work either as a producer or a seller. The success of your business depends on how much time and effort you will soend on it.

Hard working

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You must have a strong faith in your ability despite the problems that you will encounter along the way

Self-confidence

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once a person enters in a line of business, you must understand that you are in a non-stop contract that en entrepreneur should understand. It may take several years to build up a business to a reasonable standard. The goal for most succesful business people is to build a secure job and stable income for themselves based on their own ability.

Future-oriented

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when you enter into the world of business, obviously, you are looking for income because you know that this will be your bread and butter not only for you but also for your family. Therefore, you must see to it the business can generate income. Another plan of action is to expand your own business through the use of your generated income.

profit-oriented

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an entrepreneur is forward looking. you have an advanced preparation for your business. You set a long-term goal for the activities that are needed, an extensive preparation for the production process and procedures that you need to go through to acquire, human and non-human resources

Goal-oriented

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Differences in opinion and judgement. Your opponent can be a part of the rejection on what you intend to do for your endeavor. As an entrepreneur, you must be firm, syrong willed, and stick or follow your own belief.

Persistence

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Learn from you mistakes

copes with failure

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you must be concerned to know how well you are doing and keep track of your performance. You must obtain useful feedback and advice from others.

responds to feedback or open to feedback

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a successful entrepreneur takes the initiative. You must put yourself in a position where you personally are resoonsible for the failure or success of your business.

take the initiative

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take time to listen to the advice, suggestions, and recommendations of fellow entrepreneurs. It will help your business grow.

willing to listen

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the capability for exploiting successfully innovative ideas in a commercially competitive market

entrepreneurship

a people who manage business with the intention of expanding that business by applying some form of innovation and with the leadership and managerial capacity for achieving their goals, generally in the fact of strong competition from other firms, large and small.

entrepreneur

two vital roles in the economy

1. to introduce new ideas 2. to energize business processes

the term entrepreneur, is derives from the French word

entre (between), pendre (to take)

wealth of nations

Adam Smith, 1776

first appearance of entrepeneur

France

an Irishman living in France, suggested in 1756

Richard Cantillon

was someone prepared to bear uncertainty in engaging in risky arbitrage, buying goods and services at a certain (fixed) price in one market to be sold elsewhere or at another time for uncertain future prices, usually in other market.

Entrepreneur

Austrian economist, who has had a seminal influence on entrepreneurship, as well as innivation, placed the entrepreneur at the center of his theory of economic development.

Joseph Schumpeter

He defined entrepreneur-simply as someone who acts as an agent of change by bringing into existence a "new combination of the means of production"

Schumpeter

New combinations include

process, product and organizational innovations.

earning cannot give financial security, saving mostly does.

True

saving always does not guarantee financial security, but wealth does.

saving and wealth

avenues of investments

-Savings account -Fixed deposits -Commodities-Precious Metals, agricultural commodities etc. -Real estate -Bond -Direct equity and Equity Mutual Funds

Two villains for wealth creation

-Inflation -Tax

the portion of the business that belongs to the shareholder

equity

has pricing power and produces high return on invested money

unique product makes a franchise business

comoetition curtails pricing power and hence generally low return on invested money.

Me too product makes a commodity business

antidotes to a commodity business

low-cost producer exceptional manager

mind-set for value investing

-stock is not a piece of paper, but an ownership stake in a business -owner's perspective -have a long-term vie -Stay within your circle of competence -do the ground work well -think in terms of probabilities

Main motivation for entrepreneurs to overcome the barriers of economic pressure and uncertainty

Schumpeter

a desire to do well, not so much for the sake of social recognition or prestige, but to attain an inner feeling of personal accomplishment

achievement

collection of people working together to achieve common purpose.

organization

a collection of peoole working together to achieve a common purpose in relation to their organization's mission, vision, goals, and objectives, sharing a common organizational culture

Business organization

a __________ business owner is someone who conducts a trade or business with the intent of making a profit. The __________ individual may conduct the business on a full-time basis or as a part-time venture.

Self-employed business owner

two or more persons bind themselves to contribute money, property, or industry to a common fund with the intention of dividing profits among themselves.

partnership

who invest in the partnership, participate in the day-to-day operations and are liable for debts and lawsuits of the partnership

general partners

who invest in the partnership but who have no participation in day-to-day operations and who are not usually considered to have liability

limited partners

an association of two or more persons that carry on as the co-owners of a business in order to generate a profit. Equal voice and liability

general partnership

formed by two or more persons, having one or more general partners and one or more limited partners. Has no voice in active management

limited partnership

partners will receive the same beneficial taxation provided by a general partnership, and will also be shielded from the debts, and liabilities of the business. In addition, they will be protected from the actions of other partners

limited liability partnership

is an artificial being created by law, having the right of succession and powers, attributes and properties expressly authorized by law or incident to its existence

corporation

a corporation formed to engage in commercial activity for a profit. Another name for this type is a "for-profit" corporation.

Business Corporation

a corporation whose income is taxed through the corporation rather than its shareholdet

C corporation

any corporation whose stock is freely traded and is held by only a few shareholders who are often within the same family

close corporation

a corporation in which the majority of stock is held by one individual or firm

controlled corporation

a corporation primarily organized for the purpose of providing services and profits to its members rather than for a corporate profit

cooperative corporation

a corporation that is registered in one state, but is also "authorized to do business" in one or more different states.

foreign corporation

a corporation organized for some purpose other than making a profit.

non-profit corporation

a corporation founded by and composed of private individuals principally for a nonpublic purpose, such as manufacturing, banking, and railroad corporations

private corporations

a cotporation that provides services of a type that requires a professional license.

professional corporation

a corporation whose shares are traded to and among the general public

public corporation

a corporation whose income is taxed through its shareholders rather than the corporation itself

S corporation

founder of Jollibee fopds corporation

Tony Tan Caktion

founder of Nbs

Soccorro Ramos

The jeepney king

Leonardo Sarao

this involves developing and using logical, step-by-step plans to reach the goals, or offering evaluation alternatives, monitoring progress, and switching to successful strategies for the goal you want to achieve

Set your own standards

pursue your vision to be a successful entrepreneur, you should know how to handle unusual events that may happen in the business which include problems in managing the workers, problems on the delivery of goods and services, and the problems on demand and production. You must be patient in dealing with these uncertainties

Copes with uncertainty

you should know that in your business, personal needs, and attachment to your friends, families, and relatives are set aside. You must separate the money for your business from the amount that you need to spend for personal obligations and lifestyles

Committed

successful business people base their work on strengths. Use your manual skills, knowledge in creating products or services, knowledge in trade and industry, ability to make and use of a wide network of contacts to build your business

Builds on strengths

an entrepreneur must build a good reputation, possess the courage to do the right thing, do what you say, walk your talk, be loyal, and be fair in dealing with the subordinatea and customers

Reliable and has integrity

risk sometimes cannot be anticipated. When misfortunes happen, consider these as challenges and work them out and set good alternatives. Risks may result to loss of your business or even bankruptcy

Risk-taker

The Filipino Values and Culture

1. Love for imported products 2. Our values of BAHALA NA 3. Our Crab Mentality 4. The MAÑANA HABIT 5. The Value of Time 6. Our Values of Hiya 7. Fiesta and Social Occassions