ENTREPRENEURSHIP

Maria Cecille D. Dogelio

Definition

Entrepreneurship is the capacity for innovation, investment and expansion in new market, products and techniques.
----according to Prof. Nathaniel Left

Definition
Entrepreneurship is more than a word. It is a mission. We must perceive opportunities inherent in change; we must create a desire for pursuing the opportunities that arise; and we must create an environment in which success is possible and the consequences of failure are tolerable.
----according to Prof. Hirsh

Key Concept

INNOVATION
Refers to new or different ways of

doing things, like technology, marketing, human relations, management, and so forth.

Economic Development vs. Economic Growth

Economic development is a progressive process of improving human conditions by reducing or eliminating poverty, disease, injustice, illiteracy, and exploitation. Economic Growth is a product of economic development.

Development and Growth Theories 1. 2. 3. 4. 5. 6. 7. Laissez Faire Theory Keynesian Theory Ricardian Theory Harrold-Domar Theory Kaldor Theory Innovation Theory Non-Economic Theories

LAISSEZ FAIRE THEORY French words that means economic freedom. An absolute free-enterprise economy. The government role is only confined in education. Justice and public works.

KEYNESIAN THEORY The government should play the key role in economic development, particularly in less developed countries, or those with depressed economic conditions. This theory contends that during economic depression the government should put up massive public works and intensive projects.

RICARDIAN THEORY

named after David Ricardo, English classical economist. He believes that the key factor for economic growth is the land. This means that economic growth plays a major role in economic development.

HARROD- DOMAR THEORY

conceptualized by Sir Harrod of England, and Prof. Domar of United States. they believed that the key factor to economic growth is physical capital like machines.

KALDOR THEORY

named after Nicholas Kaldor. he believed that the key factor is TECHNOLOGY.
Note: No wonder US, Japan, Great Brittain, France, Italy, and Germany are experiencing economic success.

INNOVATION THEORY
developed by Joseph Schumpeter. He stresses the role of innovators and entrepreneurs in economic development. He says that the innovators are the one who has the courage and imagination to handle old system, and be able to transform theory into reality. It is the innovator who introduces change for the better.

NON-ECONOMIC THEORIES
most non-economic theories key factors are political stability, efficient public administration, open society, and positive cultural values.
Example: some say CORRUPTION is the reason for economic depression. Etc..

IMPORTANCE OF ENTREPRENEURSHIP

Generation Of Jobs And Wealth

CONTRIBUTIONS OF ENTREPRENEURS

1. Development of new markets 2. Discover new sources of materials. 3. Mobilize capital resources 4. Introduce new technologies, new industries, and new products 5. Create employment

DEVELOPS NEW MARKET

Creation of customers or buyers.

What is a MARKET? In marketing: Markets are the people are willing and able to satisfy their needs. In economics: Markets are referred to as the effective demand.

DISCOVERS NEW SOURCE OF INCOME

Creation of new source of materials

MOBILIZES CAPITAL RESOURCES

Accumulation and mobilization of capital resources to a new business or business expansion

INTRODUCES NEW TECHNOLOGIES, NEW INDUSTRIES, AND NEW PRODUCTS

Taking advantage of business opportunities and transform this into profits.

CREATES EMPLOYMENT

Largely create job opening because private business sectors are the biggest employer.

ECONOMIC NATIONALISM

Refers to as the control of economic resources of the country by its people, and their use of such resources for their own benefit and enjoyment.
---Claro M. Recto
Father of Modern Filipino Nationalism