Contributions of Entrepreneurs

A) Develop new markets

B) Discover new sources of materials

C) Mobilize capital resources

D) Introduce new technologies, new industries and new products

E) Create employment

1. Entrepreneurs are the organizers and coordinators of the major factors of production, such as labor, land and capital. They properly mix these factors of production to create goods and services. Capital resources, from a layman's view, refer to money. However in economics, capital resources represent machines, buildings, and other physical productive resources. Entrepreneurs have initiative and self-confidence in accumulating and mobilizing capital resources for new businesses or business expansion.

2. The biggest employer is the private business sector. Millions of jobs are provided by the factories, service industries, agricultural enterprises, and the numerous small-scale businesses. For instance, the super department stores employ thousands of workers. Likewise giant corporations are great job creators. Such massive employment has multiplier and accelerator effects in the whole economy. More jobs mean more incomes. These increases demand for goods and services. This stimulates production. Again, more production requires more employment.

3. Under the modern concept of marketing, markets are people who are willing and able to satisfy their needs. In economics, this is called effective demand. Entrepreneurs are resourceful and creative. They can create customers or buyers. This makes entrepreneurs different from ordinary businessmen who only perform traditional functions of management like planning, organization, and coordination.

4. Entrepreneurs are never satisfied with traditional or existing sources of materials. Due to their innovative nature, they persist on discovering new sources of materials to improve their enterprises. In business, those who can develop new sources of materials enjoy a comparative advantage in terms of supply, cost and quality.

5. Aside from being innovators and reasonable risk-takers, entrepreneurs take advantage of business opportunities, and transform these into profits. So, they introduce something new or something different. Such entrepreneurial spirit greatly contributes to the modernization of the economy. New technologies and new products are intended to satisfy human needs in a more convenient and pleasant way.

■ Ex. 6. Arrange the following characteristics of entrepreneurship in the order of priority. Account for your choice.

1. The entrepreneur has an enthusiastic vision, the driving force of an enterprise.

2. Entrepreneurs take prudent risks. They assess costs, market/customer needs and persuade others to join and help.

3. The entrepreneur’s vision is usually supported by an interlocked collection of specific ideas not available to the marketplace.

4. The entrepreneur promotes the vision with enthusiastic passion.

5. The entrepreneur takes the initial responsibility to cause a vision to become a success.

6. The overall blueprint to realize the vision is clear; however details may be incomplete, flexible and evolving.

7. With persistence and determination, the entrepreneur develops strategies to change the vision into reality.

■ Ex. 7. Give your explanation to the following problem in the form of a presentation using appropriate diagrams.

Suppose that the population of Norway suddenly grows because of a large immigration, what will happen to wages? What will happen to the rent earned by the owners of land and the rental price of capital?

SECTION B

Дата добавления: 2014-12-26