1. the_meaning_of_entrepreneurship

The Meaning of Entrepreneurship

• Introduction to the course on entrepreneurship, preparing students for a deeper understanding of entrepreneurial principles.

Definition and Origin

• The term "entrepreneur" originates from Latin and French, meaning "to take."

• Entrepreneurs are characterized by their ability to seize opportunities, assessing and willing to take calculated risks.

• Focus on satisfying the needs and wants of others through innovation.

Understanding Needs and Wants

Needs

• Essential for human survival, categorized as:

  • Real Needs: Basic necessities such as food, shelter, etc.

  • Psychological Needs: Emotional and mental fulfillment.

• Real needs are concrete and measurable.

Wants

• Desires that extend beyond basic needs, not essential for survival.

• Serve to enhance feelings of well-being or help achieve specific goals.

Needs vs. Wants

• Distinction between essentials (needs) and non-essentials (wants) is crucial in identifying market opportunities.

Goals of Entrepreneurship

• Aim to create and build ventures that effectively meet the needs and wants of customers.

Characteristics of Ventures

• Profit vs. Not-for-Profit:

  • For-Profit Ventures: Traditional business models aimed at generating profit.

  • Not-for-Profit Ventures: Organizations that raise funds for causes.

• Scale of Operations:

  • Large Scale vs. Small Scale

• Type of Production:

  • Service Production: Delivering services.

  • Goods Production: Manufacturing products.

• Business Model:

  • Physical: Brick-and-mortar stores.

  • Virtual: E-commerce businesses.

• Geographic Scope:

  • Local, Provincial, National, or International ventures.

  • Considerations of Globalization and Trade Agreements (Tariffs, NAFTA, GATT).

Influence of Technology and Change

• Changing demographics, influencing consumer behavior (age, ethnicity, family structure, etc.).

• Information Technology shifts operational capabilities, giving small businesses access to resources previously limited to large corporations.

• Technological advancements and recession may lead to job losses, yet promote entrepreneurial growth.

Supply and Demand Dynamics

• Entrepreneurs fulfill consumer demand with a supply of goods or services.

• Market balance is essential; excess supply leads to price drops, while excessive demand causes prices to increase.

Economic and Political Impact of Entrepreneurship

Economic Contributions

• Job Creation: Supports employment and economic dynamism through the "Multiplier Effect."

• New Ideas: Innovates and transforms existing processes and products.

• Economic Benefits: Such as lower prices and improved living standards.

Political Aspects

• Entrepreneurship flourishes in free and democratic societies, reinforcing community strengths and values.

Demographics and Entrepreneurship

• Analyzing population characteristics helps entrepreneurs predict customer demands.

• Impact of the Baby Boomer generation on the economy, spending habits, and government policies.

• Immigration as a source of entrepreneurial opportunities across community sectors.

Discussion Questions

1. What differentiates wants from needs? How does this relate to demand? Is employment a need or want?

2. Identify two trade agreements that Canada has enacted and their benefits.

3. Partner activity: Identify a local entrepreneurial venture; evaluate its profit model, service/goods offered, operational scale, scope, and technological utilization.