GROUP-1-THE-ROLE-OF-ENTREPRENEURSHIP-IN-ECONOMIC-DEVELOPMENT.pptx

the role of entrepreneurship

1. Chapter 2: THE ROLE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT GROUP 1 MEMBERS _____________________ LABRAMONTE CRYSTALYN PAJANTOY RICA A. BALUYOT JACKELYN BALANLAY RAZEL ____________________ BTVTED FSM -2B

2. There are various definitions of entrepreneurship. However, thekey concept is innovation. This refer to new or different ways ofdoing things, like technology, marketing, human relations, manage-ment, and so forth. When an individual creates a new product, it isinnovation. When he sells his product in a different approach, it isalso innovation.

3. ENTREPRENEURSHIP DEFINATION Entrepreneurship, according to Professor Nathaniel Left, is thecapacity for innovation, investment and expansion in new markets,products and techniques. This definition implies that an enterpriseis at work whenever an individual takes the risks and investresources to make something unique or something new, designs anew way of making something that already exists, or creates newmarkets. Any person wh0 can create something new or somethingdifferent has already acquired a competitive advantage. Because itmeans an improvement. Consumers like to buy an improved productor service. Japanese businessmen are successful due to theirinnovations. If someone can introduce a better way of public service,it is certainly good for the people, especially for the p0or massesAny new technology that can reduce money, labor and time isobviously favorable to the economy. Hence, the importance ofentreprerneurship for ordinary people, businessmen and the govem-ment. Professor Hirsh said:

4. ECONOMIC GROWTH AN DEVELOPMENT EXPLAIN Development is a process while growth is a product. So, growthis the result of development. In agriculture, the application offertilizers, insecticides, labor, machines and other productive inputslike rice, corn or sugar. In simple whilerepresents a process or development. The results or outputs are cropssimple tems, development is inputgrowth is the output.

5. DEVELOPMENT AND GROWTH THEORIES Laissez Faire Theory : These are French words introducedby the Physiocrats to mean economic frecdom. It is absolute free-enterprise economy. 2 Keynesian Theory. The government should play the key rolein economic development, particularly in less developed countries, orthose with depressed economic conditions.This theory contends that
during economic depression the government should put up massive
public works, like construction of roads and bridges, and other labor-
intensive projects. These generate large-scale employment resulting
to more incomes for more people. Such situation increases the
demand for goods and services. This means more production, and
this enhances economic development.

6. 3. Ricardian Theory. This is the theory of David Ricardo, an English classical economist. He believes that the key factor in economic growth is land. 4. Harrod-Domar Theory. This was conceptualized by Sir Harrod of England and Professor Domar of the United States. The key factor in economic growth is physical capital like machines 5. Kaldor Theory. Nicholas Kaldor maintains that the key factor is technology. 6.Innovation Theory . This was developed by Joseph Schumpeter. He stresses the role of innovators or entrepreneurs in economic development. Schumpeter says that it is the innovator who has the courage and imagination to handle old systems, and be able to transform theory into reality. It is the innovator who introduces change for the better. 7. Non-Economic Theories. Their key factors are politicalstability, efficient public administration, open society, and positive cultural values. Max Weber, author of Protestant Ethics and the Spirit of Capitalism, claims that Protestant countries are more prosperous than Catholic countries and others.

7. THE IMPORTANCE OF ENTREPRENEURSHIP Statistics in both rich and poor countries show that smallenterprises are leading in the generation of jobs and wealth. An the Philippines, most of our economic activities fall under themicro and small business categories. There are many retailers,Vendors, and other small sole proprietors. As long as they perfom 18some risk-taking ventures, innovations, and creative undertakings, theyare considered entrepreneurs. Professor Peter Drucker, America’s foremost management specialist,stated that the entrepreneurial economy had been the most important development in American economy.

8. Contributions of Entrepreneur Develop new markets: Under the modem concept ofmarketing, markets are people who are willing and able to satisfy theirneeds. In economics, this is called efective demand. Entrepreneursare resourceful and creative Discover new sOurces of materials: Entrepreneurs are never satisfied with traditional or existing sources of materials. Due to theirinnovative nature, they persist on discovering new sources ofmaterials 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. Mobilize capital resources. Entrepreneurs are the organizers and coordinators of the major factors of production, such as land, labor and capital. They properly mix these factors of production to create goods and services. Capital resources, from a layman’s view, reler to money.

9. Introduce new technologies, new industries and new products . Aside from being innovators and reasonable risk-takes,entrepreneurs take advantage of business opportunities, and trans-form these into profits. So, they introduce something new orsomething different . Create employment: More jobs mean more incomes. This increases demand for goods and services.This stimulates production. Again, more production requires moreemployment.

10. Participation of Womens As stated earlier, human resources are the most important productive resources Unfortunately in poor countries or under- developed economies, most of the women are engaged in un- productive activities. It is true that in the rural areas, women help in the farms. Women’s participation in socio-economic development as entrepreneurs has tremendous impact in terms of additional jobs, in comes, goods and services.

11. Filipino Entrepreneurial in Economy Our cconomic resources are mostly in the hands of few localelite and multinational corporations. A great majority of the peopleare workers, laborers and office clerks. They only get salaries wniare not even enough to support their basic necds. Such unjust distri-bution of income can be corrected by giving people easy accessbusiness activities. Through business, even the poor are likelyimprove their social and economic conditions. Claro M. Recto, considered the father of modern Filipinonationalism, said that we need economic nationalism to attain realeconomic growth. He defined economic nationalism as the controlof the economic resources of the country by its own people, andtheir use of such resources for their own benefit and enjoyment.Recto also claimed that the cause of our poverty is that we allowforeigners to dominate our econory. He blame the U.S. educationalsystem-

12. THANK YOU