SUBJECT REFERENCE

Copyright ©2019 by: Vibal Group, Inc. and Divina M. Edralin

 CHAPTER 1: LESSON 3
RELEVANCE OF ENTREPRENEURSHIP
AND ENTREPRENEURS IN ECONOMIC
DEVELOPMENT AND SOCIETY

Copyright ©2019 by: Vibal Group, Inc. and Divina M. Edralin

 INTRODUCTION
• Entrepreneurship has an enormous impact on the
economy and in the society. The level of
entrepreneurial activity has contributed
significantly to the national level of economic
growth of many countries.
• Joseph Schumpeter, an Austrian-American
economist, who first articulated the importance of
entrepreneurship to the economy and in the
society in 1934.
 INTRODUCTION
• The increase in entrepreneurial activities has
also initiated changes in the structure of business
and society.
 Contributions of
Entrepreneurship to the Economy
and Society
CONTRIBUTIONS OF ENTREPRENEURSHIP TO ECONOMY
AND SOCIETY

1. Creates Employment
 When entrepreneurs put up their business, they
employ people who possess different
competencies and personal values to help them
operate the enterprise.
CONTRIBUTIONS OF ENTREPRENEURSHIP TO ECONOMY
AND SOCIETY

2. Develops new markets

 Entrepreneurs are opportunity-seekers, creative,
and resourceful. They seek new buyers or
customers of their products or services.
 They go beyond the existing places where their
products are sold and look for other people who
will be interested.
CONTRIBUTIONS OF ENTREPRENEURSHIP TO ECONOMY
AND SOCIETY

3. Introduces innovation
 Entrepreneurs innovate. Innovations can be
something ordinary or technological or
breakthrough. This innovation is done for the
product, service, or technology towards
commercialization and generates economic
wealth.
CONTRIBUTIONS OF ENTREPRENEURSHIP TO ECONOMY
AND SOCIETY

3. Introduces innovation
 Due to innovation, other businesses fold, while
others will open or flourish. Some even
restructure, through merging or buying out firms,
to respond to the changes that are required to
become sustainable in the business.
CONTRIBUTIONS OF ENTREPRENEURSHIP TO ECONOMY
AND SOCIETY

4. Generates new sources of materials

 Entrepreneurs are always in constant search for
better and cheaper sources of materials they
need.
 Finding new material providers helps in the
economic growth of the place. These could be
sourced from because of the value creation.
CONTRIBUTIONS OF ENTREPRENEURSHIP TO ECONOMY
AND SOCIETY

5. Stimulates investment interest in the new business

ventures being created
 When entrepreneurs engage in a new business,
it stirs curiosity for other people to invest in the
business because of the benefits it offers. The
new investment contributes to economic growth.
CONTRIBUTIONS OF ENTREPRENEURSHIP TO ECONOMY
AND SOCIETY

6. Improves the way of life

 The new products and services developed by the
entrepreneur contribute to the increase in the
personal benefit and convenience of people in
society.
 The use of automatic gadgets in cooking or
washing clothes, mobile phones, internet
services, agricultural machines, and many other
innovations leads to a better quality of life.
CONTRIBUTIONS OF ENTREPRENEURSHIP TO ECONOMY
AND SOCIETY

7. Serves as role models

 Entrepreneurs are people to be emulated by
younger generations in the community and
society at large.
 The attitude, behavior, and personality traits,
like proactiveness, opportunity recognition, risk-
taking, alertness, and creativity, are some of the
characteristics that will also make them successful
entrepreneurs in the future.
 CONTRIBUTIONS OF ENTREPRENEURSHIP TO ECONOMY
AND SOCIETY
8. Brings social benefits to the people
 Entrepreneurs pay taxes for every product or
service sold in the market. They also pay for the
permits and licenses to operate their businesses.
 The income derived from all these taxes by the
government is then used for the people, especially
the poor, to have more access to social services
(e.g. education and health), also improvement in
infrastructure facilities (e.g. roads and bridges), for
faster and safer transportation of people to and
from various destination.
CONTRIBUTIONS OF ENTREPRENEURSHIP TO ECONOMY
AND SOCIETY
9. Utilizes and mobilizes indigenous resources
 Small and medium enterprises will always look
for cheaper and local materials to supply their
needs. They also make use of idle or unused
resources to meet their needs.
 This saves much in terms of foreign currency as
local enterprises patronize their own resources
and they do not become dependent on imported
materials.
CONTRIBUTIONS OF ENTREPRENEURSHIP TO ECONOMY
AND SOCIETY
10. Provides more alternatives for consumers
 The stiff competition in the market for quality
and cheaper products and services requires
entrepreneurs to come up with more products
and services consumers can choose from.
 Entrepreneurs also become more concerned
about the welfare of their consumers, and ethical
in producing and selling their products or
services, in order that consumers will prefer them
over the other enterprises selling the same.