THE ENVIRONMENT FOR ENTERPRENEURSHIP ENTREPRENEUR’S Task

1. Products and services for the consumers and producers

*ECONOMIC SYSTEMS 2. Employment
3. Taxes
CAPITALISM COMMUNISM SOCIALISM 4. Demand for suppliers’ products and services
*Private *State *State owns 5. Training facilities for future entrepreneurs.
enterprise ownership of only the ENTREPRENEURSHIP AND INNOVATION
and economic essential
freedom of resources industries 3 Stages of Innovation
choice 1. Invention
*Social and *in terms of 2. Developments
*Freedom to economic ownership 3. Innovation
compete equality and use of
economic 4 STAGES OF BUSINESS ENTERPRISE
*Limited role *Central resources, 1. The prestart – up stage
of Planning for the choice of 2. The start - up stage
government economic and individual is 3. The early growth stage
social limited. 4. The late growth stage
*Prices set activities
by the
interaction *no freedom THE FACTORS OF PRODUCTION AND THEIR REWARDS
of the of Factors of Production Economic Reward Limiting Factor for
economic competition Rewards Received
forces of
supply and Land Rent Supply and Demand
demand Capital Interest Industry rates/
government
*Profit mandated rates
motive Labor Wage/salary Supply and demand/
legislation
Entrepreneur Profits Skill of entrepreneur
ENTREPRENEURSHIP

-economic activity of a person who starts, manages and assumes the

risk of a business enterprise.

ENTREPRENEUR – the person that undertakes entrepreneurship.