COLLEGE OF ARTS AND

SCIENCES

Chapter I
Introduction
socsc12 entrepreneurial mind

ROMELYN N. PABRO
COLLEGE OF ARTS AND SCIENCES
DEPARTMENT OF SOCIAL SCIENCES
LEARNING OBJECTIVES

1. Define and explain the meaning and importance of

entrepreneurial mindset
2. Trace the origins of entrepreneurial ideas that focused on
the economic, political, social and technological
conditions of the time
ENTREPRENEURIAL IDEAS: PHILOSOPHERS

 Adam Smith
 Karl Marx
 David Ricardo
 Thomas Malthus
 Saint Simon
 Robert Owen
DAVID RICARDO
 British economist, modern
orthodox economist
 “On the Principles of Political
Economy and Taxation”
(1817)
 Labor Theory of Value
 Comparative Advantage
DAVID RICARDO
 Labor Theory of Value
• The economic value of a good or service is determined by the total amount
of labor required to produce it, including the production of raw materials
and machines utilized to produce it.

 Ricardian Rent
• Portion of the produce of the earth paid to the landlord or the use of the
powers of the soil
• Land being fixed, demand for its produce dictates the price of the land.
DAVID RICARDO
 Comparative Advantage
• Differences in Opportunity Cost of producing the same commodities
among countries.
• Opportunity Cost- cost in terms of other goods given up.

Pants Shirt

Country A 40 50

Country B 10 40
THOMAS ROBERT MALTHUS
 English cleric, scholar,
influential economist
 “An Essay on the Principle of
Population”
 Malthusian Trap
 Malthus on Charity
THOMAS ROBERT MALTHUS
 Rapid population continues to outrun growth of resources
• Population- geometric progression (order of numbers where each
succeeding number is multiplied the previous and a common ration ex:
2,4,8,16 where common ration is 2)
• Resource production- arithmetic progression (order of numbers where
difference between consecutive number is the same; ex: 3,5,7 or 5,10,15)
• Concern: imbalance between growth.
THOMAS ROBERT MALTHUS
 Malthusian Trap
• Increased food production due to modern technology lead to higher
population level, leads to lack of food supply. Lack of land for production
since land will be used for residence which is previously used for production.

 Malthus against Charity

• Increasing living standard of the poor through charity from the rich worsens
their living condition since they can be unintentionally lead to belief they can
procreate more. When they have resources, they get confident to start families.
HENRI DE SAINT-SIMON
 French political economic and
social theorist
 St. Simon Parable
 Industrial Order
 Industrial Government
SAINT-SIMON
 Saint Simon Parable
• when indispensable producers (doctors, chemists, physiologists, bankers,
merchants, agriculturists) are lost in a nation, it turns into a weak taking
insubordinate position in the eyes of other countries.
• Society can exist without the government. Government is superficial and a
mere façade. Disappearance of workers/producers cripples the economy.
SAINT-SIMON
 Industrial Order
• Everyone is to earn according to his productive capacity
• Each one can draw benefit from the society which is proportional to his share
in the production
• Private property should be abolished and no social class distinction. Two
classes in the society (industrials and idlers). Idlers must disappear.
SAINT-SIMON
 Industrial Government
• Function of the government is only limited to defend workers from idlers.
Maintain security and freedom for producers.
• Government must organize forces for security and protection but not to govern
men
ROBERT OWEN
 Philanthropist, social
reformer, founder of
socialism, entrepreneur and
manager.
 “The Effects of the
Manufacturing System”
ROBERT OWEN
 Capitalists during the industrial revolution are individualistic
leading to the oppression and poverty of the working class
 Industrial revolution mirrored human injustices.
 He started his own factory, fewer hours for workers, higher
wages, encouraged collaboration in work environments,
which enhanced productivity.
WORLDLY PHILOSOPHERS

 David Ricardo
 Thomas Malthus
 Saint Simon
 Robert Owen
Thank you
ROMELYN N. PABRO
COLLEGE OF ARTS AND SCIENCES
DEPARTMENT OF SOCIAL SCIENCES