Entrepreneurship - 3rd week Quiz

innovation theory

economic development as the product of structural change or innovation.

joseph schumpeter

he strongly believed that innovation is the force that will properl the revolutionary change

keynesian theory

puts so much emphasis on the role of the government in entrepreneurial and economic development, especially when the economy experiencing depression.

john maynard keynes

a british economist, he developed keynesian theory

alfred marshal theory

he strongly asserted that there are four factors in the production (land, labor, capital, and organization).

alfred marshall

an english economist, he developed alfred marshal theory.

risk and uncertainty-bearing theory

knight viewed an entrepreneur as an agent, of the production process where he/she connects the producers and the consumers.

frank hyneman knight

an american economist, conceptualized the risk and uncertainty-bearing theory.

motive in opening a business

based on entrepreneurial concepts and principles and the aspiration to become successful. new and fresh ideas. creativity and innovation.

motive in opening business - ordinary small business

source of livelihood - major provider of the family for their financial requirements - earning profit

perception of risk in the business

faces the business risk - prepares the business for the risks - risk is a deterrent to the operation of the business and must be avoided

perception of risk in the business - ordinary small business

the owner is not concerned with coming up with appropriate strategies to handle it.

reactions to changes in the environment

reacts positively to the changes - bring new ideas - creative mechanism - new source of possible entrepreneurial venture

reactions to changes in the environment - ordinary small business

wait for the changes to happen - remains passive and static to changes in the environment - source of negative consequences

view on competition

competition is a sign of a healthy economic environment - healthy competition - factors that will make them creative

view on competition - ordinary small business

unhealthy element - uncomfortable working in a competitive environment - discourages competition

vision for development and growth

outlines venture in terms of short term, medium term, and long terms plans of action - aligns the daily business activities

vision for development and growth - ordinary small business

relies upon chance or luck - not so much concerned about its development and growth as long as he/she is satisfied with its earnings

horizon of business operation

thinks globally but acts locally - focused on the starts above - concerned with the major economic events - strong notion

horizon of business operation - ordinary small business

centered only on the local environment - does not intent to participate in the global environment - expansion has never been an idea worth entertaining

sources of business funds

wealth-creating venture - funds from both internal and external resources - may create is more than enough to compensate for the sourced funds

sources of business funds - ordinary small business

limit the funding - loans from external resources can be a risky - fears that financial institutions will not be willing to extend financial assistance to the business.