Entrep
improving the living standards of the nation citizenry.
economic development
4types to achieve economic development goals
1. human resources
2. natural resources
3. capital formation
4. technology
assumes the risk of a business enterprises.
entrepreneurship
entrepreneur identifies an
1. economic need
2.considers offering a bus solution
3.proceeds to assemble the resources required
4. assumes the risk of succeeding and failing
five capitalist economy available concern
1. products and services for customer and producer
2.employment
3.taxes
4.demand for suppliers and products and services
5. training facilities for future entrepreneurs
must remember this motivation
1. new product
2. new process of production
3. substitutions of achiever material in an unaltered product
4. reorganization of production internal function or distribution arranged leading to increase efficiency better support for a given product or lower cost
5. improvement in instruments or methods of doing innovation
discovery or devising of new product
invention
principle generated
development
actual induction of a new product
innovation
starts to question the feasibility of an idea product or services
prestart-up stage
establishing feasibility activities
early growth stage
final stage before the new venture matures into a stable enterprises
late growth stage
one factor that does not prevent one from engaging in entrepreneurship
business size
maybe defined by using any of two approaches market share tool asset
small business
independently own and operated
market share approach
business firm is less than 1% of the demand for its product
tool assets
conversion of raw materials into product needed by society
manufacturing business
5 service - provide service in one way to or another
1. business service- service to another business
2. personal business - provide service to the person
3. repair service - provide repair service to owners of various machinery and appliances
4. entertainment and recreation - includes movie houses
5. hotel and motels
6. education service -montessori schools
cell to retailer and other merchant but who do not sell in large amount to final customers
wholesaling
the sales of a goods and or service to the final customers
retailing
those engage in the construction of buildings
general construction firms
characteristic of small business
1. Independent management - owner is also the manager.
2. Small capital requirement - requires only small capital.
3. Mostly local cooperation - usually operates in a certain locally.
economic importance of small business
1. providers of economic opportunities for entrepreneurs.
2. providers of products and services to consumers.
3. suppliers of products and services to other business.
4. distributors of product and services of other business.
5. supporters of government.
6. providers of employment.
other following benefits
1. opportunity to gain control over his own destiny
2.opportunity to reach his full potential
3. opportunity to reap unlimited profits
4. opportunity to make a contribution to society and receive recognition for his efforts
kinds of business according to size
1. public enterprises
2. private and surprises