POB NOTES 22/06/23
Continuing from class
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Evaluating
o A major part of entrepreneurs decision-making process is evaluating. This is where
the entrepreneur ‘evaluates’ what has been the outcome of events once the
business has been established. Success is not only based on profit, but getting
feedback, understanding the influence of the business, knowing why one aspect
works versus another. Evaluating is about learning the different ways profit is
earned.
Risk Bearing
o Risks and uncertainty usually lie with the financial decisions an entrepreneur will
make. Therefore, they must be willing to endure this risk and make decisions
statically.
TOPIC: Entrepreneurs and Economic Development
When an Entrepreneur creates a new business, they actively create opportunities through the
provision of goods and services. They create jobs which contribute to nation building.
Creating new business:
New businesses increase market competition and this aids in keeping prices competitive. It
contributes to the increased demand and productivity. Additionally, the new business creates a
demand for suppliers from traders which forms collaborative relationships. This promotes economic
growth, locally and internationally.
Providing goods and services to satisfy citizens:
Entrepreneurs (after researching) provides customers wants and satisfy these wants through
reasonable pricing. As the needs and wants of customers continually change so to must the
entrepreneur use their understanding to adapt to said changes.
Providing employment:
New jobs create job opportunities. These new employees pay taxes to the government and typically
spend their wages locally, therefore actively contributing to the economy and wellbeing of the
society.
Contributing to nation building:
Nation building refers to the creation of a strong sense of national identity, which is a feeling of
belonging and being part of a nation. This requires economic, social and political development.
Economic development and increased national growth and wealth are the keystones of national
identity. A business contributes to the economic growth by:
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Providing employment
Satisfying the needs of the society through goods and services.
Contributing to supporting and improving community life.
Promoting national growth through the indirect spreading of wealth.