Activity No.

1
TOUR 95: Entrepreneurship in Tourism and Hospitality
Name: Nicole N. Banguilan Date: Sept. 28, 2022
Course/Year/Section: BSTM 4-1 Score:

Questionnaire:
1. Explain entrepreneurship according to Frank Knight.
2. Differentiate high level kind of entrepreneurship from low level kind of
entrepreneurship.
3. Explain entrepreneurship according to Hayek and Kirzner.

Answers:

1. Knight described entrepreneurship as the decisions made by a project's leader or other

powerful individual (Gunning 1993). Their strategy was to counter Knight's perspective on the
function of the entrepreneur in the market uncertainty. While an entrepreneur can "lay off" risks
much like insurance companies do, according to Knight, he is still responsible for managing the
risks. Because his profit more than offsets the psychological toll, he is happy to continue doing
this.

2. The "high-level" type of entrepreneurship that historically gave rise to railroads, the
chemical industry, and the multidivisional, international corporation was Schumpeter's area of
interest. His research made little place for the "low-level" entrepreneurship practiced by small
businesses, which is significantly more prevalent but is yet just as significant. When compared to
entrepreneurial endeavors, small enterprises typically deal with well-known and established
goods and services. Thus, small business owners frequently deal with known dangers whereas
entrepreneurs deal with unknown hazards.

3. Kirzner, entrepreneurship deals with the means of slow-moving economic transformation.

individual vigilance during market process discovery methods. But these elements are also
included in Hayek's research agenda, which goes beyond and beyond mises' initiatives in.
Entrepreneurs are experts who utilize discretion to resolve unique and challenging issues. During
periods of significant political, social, and environmental change, there are more issues that call
for judgment. More people must choose entrepreneurship over other vocations in order for
supply to keep up with demand.