module 1 entrepreneurship

8/13/2019 Module 1 Entrepreneurship

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The Role of Entrepreneurship in

Economic Growth


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Definition of terms Entrepreneur

Entrepreneurship

Economic Growth

GDP


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Who is an Entrepreneur?

A person who organizes,operates, and assumes the riskfor a business venture


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Entrepreneurship4 Aspects:

The process of creating something new withvalue

By devoting the necessary time and effort ssuming the necessary risk andGetting the rewards


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2. DEVOTION OF TIME - towards the attainment ofpersonal goals:

PROFIT

PRODUCE GOODS & SERVICES

FOR THE COMMUNITY

PROVIDE EMPLOYMENT

PROVIDE INCOME


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3. Assumption of risk

the possibility of failure and losing

whatever they put in


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4. Greater Rewards - there is also a possibility ofgenerating a profit and business expansion.

And the prestige of being a business owner, whichprovides intrinsic satisfaction


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ROLE OF ENTREPRENEURS IN THE

ECONOMY

They are vital in the economicgrowth and development of thecountry


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The Entrepreneur 1. Mobilizer of Capital

2. Service Providers

3. Employers 4. Tax Payers

5. Suppliers of Products
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Economic growth

Process by which a nation's wealthincreases over time.

.
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Measure of growth

GDP- gross domestic product.

This measures the goods and services

produced within the country


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GNP

measures the goods and servicesproduced by Filipinos anywhere in the

world


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The rate of economic growth is influenced by

1. natural resources

2. human resources

3. capital resources

4. technological development in the economy &

5. institutional structure and stability
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THEORIES OF ECONOMIC DEVELOPMENT AND

GROWTH

Known economists advocated different

theories in trying to explain how countriescan grow economically


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Analysis of these theories will help us determine the

importance and relevance of the different economicand non-economic factors of the growth anddevelopment of the economy of other nationsparticularly on ENTREPRENEURSHIP


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2. KEYNESIAN THEORY During economic depression the government

should put up massive labor projects and public

works that will generate large scale employmentresulting to more income for the people.

Proposed by John Maynard Keynes

The higher the income the higher is the

consumption


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3. RICARDIAN THEORY

Advocated by David Ricardo, who

believes that the key factor in economicgrowth is LAND. He believes that all

wealth comes from the Land.


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4. KALDOR THEORY By Nicholas Kaldor who stated that the key factor for

development is TECHNOLOGY.

Application of modern technology in the productionof goods and services has been responsible for theeconomic success of highly developed countries.


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5. INNOVATION THEORY By Economist Joseph Schumpter who believed that

the key factors for economic development are theentrepreneurs or innovators.

This is due to their courage, patience anddetermination to transform theory into practice or

reality


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6. Harrod-Domar Theory Conceptualized by Sir Harrod of England and Prof.

Domar of the United States.

They believe that economic growth is made possiblethru savings and physical capital, like MACHINES.

Production becomes more efficient through the use ofmachines.


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Max Webber

Stated that values of thrift, industry

and entrepreneurial spirit contributedto the economic growth of Protestantcountries


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Whatever!

However, it is still up to the people and theirgovernment how they can apply all these theories inreal situations to achieve economic growth


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module 1 entrepreneurship

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