Understanding Entrepreneurship Flashcards
french word of entrepreneur and meaning
entreprende means undertake
Someone who strongly advocates the principles of entrepreneurship.
entrepreneur
• Is an art of correct practice in managing and opening a self owned business by taking risk in creating valuable goods and services as wealth creating venture.
• Sometimes referred to as Small Busines
entrepreneurship
Is the name of the establishment owned by an entrepreneur
enterprise
5 Salient Features of Entrepreneurship
- An art of correct practice
- Wealth creating venture
- Provides valuable goods and services
- Opening and managing a self-owned busines
- Risk taking venture
It is an art because it requires skills and has no governing rules; it is new in the market.
an art of correct practice
Businesspeople equate wealth with profit. Wealth means an abundance of money and possession.
wealth creating venture
Creating good that has importance to consumers to create wealth.
provides valuable goods and services
The owner should personally open and manage the business. If the owner only opens the business but allows someone to manage it for them, the owner is no longer practicing the idea of entrepreneurship INTRAPRENEURSHIP..
Opening and managing a self-owned business
A risk should be considered as an entrepreneurial venture.
risk taking venture
Not practicing the salient features of entrepreneurship
businessman
An activity that does not follow the salient features of entrepreneurship
business
Is the establishment owned by a businessman
company
business scale
• Small Business/Enterprise – 1 -20 employees
• Medium Business/Enterprise – 21 – 100 Employees
• Large Business/Enterprise – 101 up employees
exist to gather facts to support you on how to become a successful entrepreneur
theories of entrepreneurship
innovation is the primary factor affecting development
Innovation Theory (Joseph Schumpeter)
Government has a role in both economic and entrepreneurial development, especially during economic depression.
Keynesian Theory (John Maynard Keynes)
Organization plays a vital role among the factors of production (Land, Labor, Capital)
Alfred Marshall Theory (Alfred Marshall)
There’s always a risk of uncertainty in the process of connecting the supplier and the buyer.
Risk and Uncertainty Bearing Theory (Frank Hyneman Knight)
Social Cultures contributes to the success of the entrepreneur
Sociological Theory ( Max Weber)
mental ability of the entrepreneur to learn new skills
cognituve skills
the ability to make sound decisions adopting the scientific approach
problem solving skills
relate to the knowledge and proficiency to a specialized field
technical skills
the relationship and interaction of entrepreneurs to others.
interpersonal skills
advancement of technology is the element of production in entrepreneurship
Technological Theory (Nicholas Kaldor)
entrepreneur fills the gap in any economic activity
Gap Filling Theory (Henry Leibenstein)
learning from experience and being alert to consumers
Learning Alertness Theory (Israel Kirzner)
