Lecture 1 Flashcards
Origin and Forms of Entrepreneurship (46 cards)
“Entrepreneurship” came from the French word
entreprende which means “to do something” or
“to undertake”
Entrepreneurship
“Entrepreneurship” came from the French word ____ whcih means ____
Entrepreneurship
The Earliest Entrepreneurship
Barter and Exchange System
In this period, entrepreneur
is a term for a person who
manages large production
projects
Middle Ages
That individual takes no risk
as capital was provided by
the government
Middle Ages
Link between risk and
entrepreneurship further
established
17th Century
- An entrepreneur was a
person who entered a
contract with the
government to perform a
service or to supply
stipulated products.
17th Century
Founder of the Royal
Bank of France and the
Mississippi Company,
which had an exclusive
franchise to trade
between France and the
new world.
French entrepreneur
John Law
John Lawis the founder of
Royal Bank of France and the
Mississippi Company,
He described an entrepreneur as “a risk taker, observing that merchants, farmers,
craftsmen, and other sole proprietors buy at a certain price and sell at an uncertain
price, therefore operating at a risk”
Richard Cantillon
Richard Cantillon
He described an entrepreneur as “a risk taker, observing that merchants, farmers,
craftsmen, and other sole proprietors buy at a certain price and sell at an uncertain
price, therefore operating at a risk”
Entrepreneurship as a
form of management
18th Century
manager becomes an entrepreneur when
the exercise of his/her judgment is liable to error and s/he assumes the
responsibility for its correctness”
entrepreneur vs manager
entrepreneur
calculate risks and make
informed judgments and decisions. Those
who choose to avoid taking risks favors security of being employees
capitalist vs entrepreneur
capitalist
the person with capital
capitalist vs entrepreneur
entrepreneur
the one who needed capital
Entrepreneurs were viewed
to have the role of
recreating or
revolutionizing the pattern
of production by
introducing an invention
2oth Century
Jean Baptiste-Sayefined entrepreneurship as
the shifting of economic resources out of an area of lower productivity into higher productivity and greater yield
defined entrepreneurship as “the shifting
of economic resources out of an area of lower
productivity into higher productivity and
greater yield.”
Jean Baptiste-Say
Entrepreneurship and Innovation
Jeremy Bentham Bentham viewed entrepreneurs as
innovators.
Entrepreneurship and Innovation
viewed entrepreneurs as innovators
Jeremy Bentham
Entrepreneurship and Innovation
according to Jeremy Bentham, entrepreneurs…
“depart from routine, discover new markets, find new sources of supply, improve existing products and lower the costs of production”
Entrepreneurship and Innovation
Five cases of new combinations on innovation by Joseph Schumpeter:
- Introduction of a
new good - New method of
production - Opening of a new market
- Conquest of a new source of supply of raw materials
- Carrying out of new organization of any industry
Peter Drucker (1964)
The founder of modern management
“An entrepreneur is one who searches for change, responds to it, and exploits it as an opportunity”
