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Basic Concepts in Entrepreneurship (1)

The document outlines the fundamental concepts of entrepreneurship, including definitions, the role of entrepreneurs, and their significance in economic development. It emphasizes the importance of vision, decision-making, innovation, and risk-taking for entrepreneurs. Additionally, it highlights how entrepreneurship contributes to capital formation, employment opportunities, and overall economic growth.

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valeriebenitez
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7 views

Basic Concepts in Entrepreneurship (1)

The document outlines the fundamental concepts of entrepreneurship, including definitions, the role of entrepreneurs, and their significance in economic development. It emphasizes the importance of vision, decision-making, innovation, and risk-taking for entrepreneurs. Additionally, it highlights how entrepreneurship contributes to capital formation, employment opportunities, and overall economic growth.

Uploaded by

valeriebenitez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 22

BASIC CONCEPTS

IN
ENTREPRENEURSHI
P

Prepared by:
• Valerie B. Benitez
• Rey-Ann M. Quiro
Learning Objectives:

At the end of the lesson, you should


be able to:

1. define entrepreneurship
correctly;

2. give the importance of


entrepreneurship; and

3. explain the role of


entrepreneurship in socio-economic
Let's unlock the terms!
Economy - the system by which the production and
consumption of goods and services is organized in a
country or community.

Employment- the state of being employed or having a


job; the occupation for which you are paid.

Enterprise- any activity which provides customers with


a product (goods/services) with a view to making a
profit.

Entrepreneurship- the process of starting a business


and gaining profit out of it.

Entrepreneur-is a person who has possession of a new


enterprise, venture or idea and is accountable for the
inherent risks and the outcome. (Richard Cantillon)

Small business-one that is independently owned and


operated by the owner.
Entrepreneurship
"Entrepreneurship is the purposeful
activity of an individual, group of
associated individuals, undertaken to
initiate, maintain or aggrandize profit
by production or distribution of
economic annds and services"

- A.
H. Cole

"Entrepreneurship is based on
purposeful and systematic
innovation. It included not only the
independent businessman but also
company directors and managers
who actually carry out innovative
functions."

- Joseph A.
"Entrepreneurship is the
process by which individuals
pursue opportunities without
regard to resources they
currently control."

- Stevenson &
Jarillo
"Entrepreneurship is the
art of turning an idea into
a business."

-Fred
ENTREPRENEUR-DIFFERENT
PERSPECTIVES-NATURE

Entrepreneur- refers to a person


who creates an enterprise,
taking financial risk in order to
get profit.

• An Economist defines an
entrepreneur as one who brings
resources, labour, material and
other assets in to combinations that
make their value greater than before
and also one who introduces
changes, innovations and a new
order.
• A psychologist defines an
entrepreneur as a person who is
typically driven by a
psychological force, which create
a desire to obtain or attain
something.

• Sociologist defines an
entrepreneur as a person whose
actions would determine social
status & contribute to societal
development.

• A management expert defines


entrepreneur as a person who
Entrepreneurs
"Entrepreneurs are people who
have the abilities to evaluate
business opportunities, together
with the necessury resources to
take advantage of them, and to
ensure appropriate action to
ensure success."

- International Labour
Organization

Two
"An entrepreneur is a person who
starts a new venture, taking the
initiative and risk associated with
it and does so by creating
something new to provide value to
customers."
Key Concepts of Entrepreneurship
• Vision

Entrepreneurs need to have


a clear vision for their
business and communicate
it to their team.

• Decision-making

Entrepreneurs need to
make informed decisions
quickly and in response to
• Organization

Entrepreneurs need to
organize their business to
ensure it runs smoothly and
efficiently.

• Innovation

Entrepreneurship is built on
innovation, which can include
new products,
Two services, or
production techniques.

• Leadership

Entrepreneurs need to be able


• Adaptability

Entrepreneurs need to be ready


to adapt to change and use
alternatives when needed.

• Risk-taking

Entrepreneurship involves
taking calculated risks to start
a business and make a profit.
Two
• Sustainability

Entrepreneurs need to build a


profitable business that can
grow sustainably.
Role Of Entrepreneurship In
Economic Development

1. Promotes Capital Formation


2. Creates Large-Scale
Employment Opportunities
3. Promotes Balanced
Regional Development
4. Reduces Concentration of
Economic Power
5. Wealth Creation and
Distribution
6. Increasing Gross National
Product
Twoand Per Capita
Income
7. Improvement in the
Standard of Living
8. Promotes Country's Export
Trade
Role Of Entrepreneurship In
Economic Develop

• Promotes Capital Formation

Entrepreneurs promote capital


formation by mobilizing the idle
savings of public.

They employ their own as well as


borrowed resources for setting up
enterprises.
Two
• Creates Large-Scale
Employment Opportunities

Entrepreneurs provide immediate


large-scale employment to the
• Promotes Balanced Regional
Development

Entrepreneurs help to remove


regional disparities through setting
up of industries in less developed
and backward areas.
The growth of industries and
business in these areas lead number
of public benefits like road transport,
health, entertainment, etc.

• Reduces Concentration of
Economic Power
Two
Industrial development normally
leads to a concentration of economic
power in the hands of a few
individuals which results in the
growth of monopolies.
• Wealth Creation and Distribution

It stimulates equitable redistribution of wealth and


income in the interest of the country to more
people and geographic areas, thus giving benefit to
larger sections of the society.

Entrepreneurial activities also generate more


activities and give a multiplier effect in the
economy.

• Increasing Gross National Product and Per


Capita Income

Entrepreneurs are always on the lookout for


opportunities. They explore and exploit
Two
opportunities,, encourage effective resource
mobilization of capital and skill, bring in new
products and services and develop markets for
growth of the economy.

In this way, they help increasing gross national


products as well as per capita income of the people
• Improvement in the
Standard of Living

Entrepreneurs play a key


role in increasing the
standard of living of the
people by adopting the
latest innovations in the
production of a wide
variety of goods and
services in a large scale
Two
that too at a lower cost.

This enables the people to


avail of better quality
goods at lower prices
• Promotes Country’s
Export Trade

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

They produce goods and


Two
services on a large scale for
the purpose of earning huge
amounts of foreign
exchange from export in
order to combat the import
• Induces Backward
and Forward
Linkages

Entrepreneurs like to work in


an environment of change
and try to maximize profits
by innovation.

WhenTwo
an enterprise is
established in accordance
with the changing
technology, it induces
backward and forwards
linkages that stimulate the
• Facilitates Overall
Development

Entrepreneurs act as
catalytic agents for
change which results
in a chain reaction.
OnceTwo
an enterprise is
established, the
process of
industrialization is set
in motion.
• Characteristics of a successful
Entrepreneur
THANK
YOU!

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