Session 1: Entrepreneurship and his Roots Flashcards
Entrepreneur is derived in 13th century French word __________ which meant to undertake.
entreprende
an economist responsible for the first academic usage of the word entrepreneur in his Essai sur La NAture du Commerce en Général
Richard Cantillon
He gives meaning to the term “private enterprise”
Embodied the entrepreneur through the protagonist of his novel Robinson Crusoe
A true individualist
Daniel Defoe
portrays that the entrepreneur with his knowledge and judgement as someone who sought opportunities to earn profits by reallocating resources from areas of low productivity to areas of high productivity by describing an entrepreneur in terms of behavior
Jean Baptiste Say
describes the enterpreneur as someone who was more than the venture capitalist but also one who manage the venture
John Stuart Mill
the one who linked Say’s and Mill’s ideas claiming that the entrepreneur was one who coordinated the four factors (land, labor, capital and organization) together
Alfred Marshall
century where these “who” concepts of entrepreneurship were further developed by the likes of Frank H. Knight and Joseph Schumpeter.
Dawn of 20th century
carried forward the notion of risk taking by classifying two kinds of risks (1885-1972)
Frank H. Knight
Entrepreneurial profit depends on whether an entrepreneur can make productive services.
(T/F?)
T
focused on discussion on innovation and how it is a vital component of who an entrepreneur is.
Joseph Schumpeter
Two Greatest Insights
These new combinations or “creative destruction” are what he
referred to as innovation.
(1) Innovation is the driving force not only of capitalism but also of economic progress in general
(2) Entrepreneurs are the agents of innovation
Five Types of Innovation
acc. to Schumpeter
- Product
- Process
- Business Model
- Source of Supply
- Mergers and Divestments
introduction of a new method of production
process
Opening of a new market
business model
the conquest of a new source of supply of new materials or parts
sources of supply
organization of any industry
merges and divestments
argued that while innovation was an important factor of entrepreneurship, it is not entirely what makes him one.
Ludwig Von Mises
notes that entrepreneurship can be defined as;
○ changing the yield of resources (seen in supply or production terms)
Peter Drucker
Like Taussig and Mises, he asserts that innovation does not have to be technical and is often social as well
Peter Drucker
refers to the key characteristics that entrepreneurs ideally possess in order to perform entrepreneurial functions effectively
Entrepreneurial Competencies
the combination of knowledge, abilities, and attitudes needed to accomplish a role efficiently.
competencies
Three Components of Personal Entrepreneurial Competencies
- Planning Cluster (knowledge)
- Achievement Cluster (abilities)
- Power Cluster (attitudes)
3 characteristics of planning cluster
- goal setting
- information seeking
- systematic planning and monitoring
One of the more popular myths about entrepreneurship is that they grab _____.
opportunities without considering the risks.
achievement cluster is composed of:
◆ opportunity seeking
◆ Persistence
◆ commitment to work
◆ risk taking
◆ demand for efficiency and quality.
most important trait of the successful entrepreneur.
passion
the carrying out of new organization of any industry, like the creation of monopoly creation (example through trustification) or any breaking up of a monopoly position.
merges and divestments
3 characteristics of planning cluster
- goal setting
- information seeking
- systematic planning and monitoring
achievement cluster is composed of:
◆ opportunity seeking
◆ Persistence
◆ commitment to work
◆ risk taking
◆ demand for efficiency and quality
power cluster has traits that are composed of?
- Persuasion
- Negotiation
- Self-confidence
4 factors according to Alfred Marshall
- land
- labor
- capital
- organization
