Activity 1: Essay

TOUR 95: Entrepreneurship in Tourism and Hospitality

Name Nicole N. Banguilan Date: October 24, 2022

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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 face of 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. According to 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.
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.