Entrepreneurship
Mr. Bernstein
Entrepreneurship and the Economy, pp 6-9
and
Basic Economic Concepts, pp 11-14
February 2016
Entrepreneurship
Mr. Bernstein
What is an Entrepreneur?
• An individual who undertakes the creation,
organization, and ownership of a business
• Examples?
What is a venture?
• A new business undertaking that involves risk
• Examples?
2
Entrepreneurship
Mr. Bernstein
What is Entrepreneurship?
• The process of recognizing an opportunity,
testing it in the market, and gathering
resources necessary to go into business
What is Intrapreneurship?
• The application of entrepreneurship within a
large organization
3
Entrepreneurship
Mr. Bernstein
What is Economics?
• The study of how people choose to allocate
scarce resources to fulfill their unlimited
wants
What is an Economic System?
• A set of laws, institutions and activities that
guide economic decision making
4
Entrepreneurship
Mr. Bernstein
The Free Enterprise System: Capitalism
• Individual Economic Freedom
– Individuals can choose what they wish to buy
– Individuals can choose to own private property
– Individuals can start business ventures and compete with other
businesses
• Role of Competition
– Provides consumers choices
– Forces businesses to improve quality and become more efficient
– Reduces prices
• Also known as a Market Economy
5
Entrepreneurship
Mr. Bernstein
Market Structure: The Nature and Degree of
Competition
• Monopoly
• Oligopoly
• Perfect Competition
• Monopolistic Competition
• Entrepreneurs are more likely to succeed in which
market structure(s)?
6
Entrepreneurship
Mr. Bernstein
Market Structure: The Nature and Degree of
Competition
• List three companies that are in direct
competition with each other.
• What are the products they use to compete?
• What are the relative prices of the products?
• In addition to product quality and price, in what
other dimension do the businesses compete?
• Which product would you choose and why?
7
Entrepreneurship
Mr. Bernstein
Factors of Production
• Land
• Labor
• Capital
• Entrepreneurship
8
Entrepreneurship
Mr. Bernstein
Supply and Demand
Equilibrium Price:
Where Supply Curve
Meets Demand Curve
9
Entrepreneurship
Mr. Bernstein
Supply and Demand
Increase in Demand:
Demand Curve shifts
and now meets
Supply Curve at new
Equilibrium
10
Entrepreneurship
Mr. Bernstein
Supply and Demand
Increase in Supply:
Supply Curve shifts
and now meets
Demand Curve at new
Equilibrium
11
Entrepreneurship
Mr. Bernstein
Supply and Demand
Relationship between Supply, Demand, Price and
Productivity
A rise in Productivity reduces costs and causes a rise
in Supply
So Entrepreneurs can compete by creating better
products OR by creating more productive methods
of producing products and passing on cost savings
to their customers
12
Entrepreneurship
Mr. Bernstein
Economic Indicators and the Business Cycle
GDP – measurement of total productivity
Underground economy
Business Cycle and psychology
Government effect – Monetary and Fiscal policies
13