CHAPTER 1

• The term Entrepreneur originates from the French word "entreprende" which means "to undertake"(progress)
• Entrepreneurship is the art of observing correct practices in managing and operating as self-owned wealth-creating business enterprise by providing goods and service that are valuable to the costumers.
• SMALL BUSINESS - refers to a business or enterprise

  that correctly practices or adopts the principles of entrepreneurship. It is owned by one person with a limited workforce of not more than 20

  persons.
• ORDINARY SMALL BUSINESS - pertains to a business enterprise managed and operated by an owner who is not an advocate of and does not practice the concepts and principles of entrepreneurship.
• ENTREPRENEUR - a person who strongly advocates and correctly practices the concepts & principles of entrepreneurship in

  operating and managing a self-owned business venture.
• BUSINESSMAN - someone who sets up a business with an existing idea offering products and services to the costumers
• ENTREPRENEUR - is a person who starts an enterprise with a new idea or concept, undertaking commercial activities.
• Entrepreneurship Theories:

  • Innovation Theory • Keynesian Theory • Alfred Marshall Theory

  • Risk and uncertainty-bearing theory

  • Weber’s sociological theory

  • Kaldor’s technological theory

  • Leibenstein's gap-filling theory

  • Kirzner’s learning-alertness theory
• THEORY - is a generalization that

  explains a set of facts or phenomena. It is not a absolute truth. It can be supported by another observation or proven to be otherwise.
• Innovation Theory -by John Schumpeter - considers innovation as the primary factor affecting development.
• KEYNESIAN THEORY - by John Maynard Keynes - Attributes

  economic growth, especially during depression, to the government
• ALFRED MARSHALL THEORY - generalizes

  that the organization plays the

  most significant role among the different factors of production.
• RISK AND UNCERTAINTY-BEARING THEORY - by Frank Hyneman Knight - states that an entrepreneur faces the risk of uncertainty in the process of connecting the supplier and the buyer.
• WEBER'S SOCIOLOGICAL THEORY by Max Weber - asserts that social culture have significant contributions to entrepreneurship
• KALDOR'S TECHNOLOGICAL THEORY - by Nicholas Kaldor - gives importance to the advancement of technology

  as an element of production
• LEIBENSTEIN'S GAP-FILLING THEORY by Henry Leibenstein - advocates that entrepreneurship fills the gap in any economic activity
• Kirzner's Learning-alertness Theory - by Israel Kirzner - Focuses on learning and alertness as the

  primary attributes of entrepreneurship
• ENTREPRENEURSHIP - it refers to a particular field of practice or

  process, as compared to an entrepreneur which is a person practicing entrepreneurship