ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT

ECONOMIC DEVELOPMENT- is a scheme aimed at improving the living standards of the nations citizenry.

ELEMENTS OF ECONOMY

1. HUMAN RESOURCES
2. NATURAL RESOURCES
3. CAPITAL FORMATION
4. TECHNOLOGY

ENTREPENEURS TASK

1. Products and services for customers and producers

2. Employment
3. Taxes
4. Demand for suppliers products and services
5. Training facilities for future entrepreneur

CHAIN OF ENTREPRENEURS TASK

LAND LABOR CAPITAL

ENTREPRENEUR

PRODUCTION PROCESS

FINISHED GOODS AND SERVICES

TO MAKE PROFITS, THE ENTREPRENEUR PERFORMS THE FF. SPECIFIC TASK

1. TO SUPPLY THE NECESSARY CAPITAL

2. TO ORGANIZE THE PRODUCTION BY BUYING AND COMBINING INPUTS LIKE MATERIALS AND
LABOR
3. TO DECIDE ON THE RATE OF OUTPUT, IN THE LIGHT OF HIS EXPECTATION ABOUT DEMAND
4. TO BEAR THE RISK INHERENT TO THE VENTURE.
ENTREPRENEURSHIP AND INNOVATION

The freedom of competition afforded by the capitalist economy serves to drive the entrepreneur to
innovate and get ahead of his competitors lest he is driven out in the market.

INNOVATION defined as the introduction of new method, procedure, custom, device among others. It
can be the following:

1. New product
2. New process of production
3. Substitution of cheaper material
4. Reorganization of production, internal function, distribution arrangement leading to increased
efficiency
5. Improvement in instrument or methods. This consists of the following
a. Invention
b. Development
c. Innovation

NEW VENTURES AND LONG TERM ENTERPRISES

1. PRE-START-UP STAGE
2. START-UP STAGE
3. EARLY GROWTH STAGE
4. LATE GROWTH STAGE

THE ENTREPRENEURS PREDICAMENT

ENTREPRENEUR 1 ENTREPRENEUR 2 ENTREPRENEUR 3

YEAR 1 INTRODUCE INACTIVE INACTIVE
INNOVATIVE PRODUCT

YEAR 2 REAP MODERATE INTRODUCE INNOVATIVE INACTIVE

PRODUCTS PRODUCT

YEAR 3 MAXIMIXE PROFIT REAP MODERATE PROFIT INTRODUCE INNOVATIVE

PRODUCTS

YEAR 4 PROFITS DECLINE MAXIMIZE PROFITS REAP MODERATE PROFITS

YEAR 5 INTRODUCE PROFITS DECLINE MAXIMIZE PROFITS
INNOVATIVE PRODUCTS