This document defines key terms and theories related to entrepreneurship. It defines entrepreneurship as the process of creating something new with value by devoting time, effort and resources to it. An entrepreneur develops a business model and is responsible for the business's success or failure. Theories discussed include laissez-faire theory, Keynesian theory, Ricardian theory, Harrod-Domar theory, and innovation theory. Key terms defined include business failure, capital, competition, demand, economics, entrepreneur, profit, scarcity, and venture.

1. Function, Terminologies and Theories
Daryl R. Tabogoc

2. Entrepreneurship
 The process of creating something new with value by
devoting the necessary time and effort, assuming the
accompanying financial, psychic and social risks, and
receiving the resulting rewards of monetary and personal
satisfaction and independence.
 The process of starting a business or other organization.
The entrepreneur develops a business model, acquires
the human and other required resources, and is fully
responsible for its success or failure.

3. Function of an Entrepreneur
• To perform or revolutionize the pattern of
reproduction by exploiting an invention or.
More generally, an untried technological
method of producing a new commodity or
producing an old one in a new way, opening
a new source of supply or materials or new
outlet for products by organizing a new
industry.

4. Terminologies of Entrepreneurship
Business Failure – A business that files bankruptcy and
loses money for creditors, the people who lent them money,
and their investors.
Capital – The buildings, equipment, tools, and other goods
needed to produce a product, or the money used to
purchase these items.
Competition – Striving for the same customer or market.
Demand – The amount or quantity of goods or services that
consumers are willing and able to buy.
Discontinuance – A business that is operating under a
new name or a business that has been purposely
discontinued.

5. Terminologies of Entrepreneurship
Economics – The branch of social science that deals with
the production and distribution and consumption of goods
and services and their management.
Elastic – When a small change in price produces a large
change in demand.
Enterprise Zones – Specially designated areas of a
community that provide tax benefits to new businesses
locating there and grants for new product development.
Entrepreneur – One who organizes, manages and
assumes the risk of business or enterprise.
Entrepreneurial – The approach use by an entrepreneur.

6. Terminologies of Entrepreneurship
Enterprise – A unit of economic organization or activity
specifically a business organization.
Free Enterprise System – An economic system in which
people are free to operate their businesses as they see fit,
with little government interference.
Inelastic – When a small change in price produces little or
no effect on the quantity demanded.
Investment – The amount of money one puts into a
business as capital.
Opportunity – An idea that has commercial value.

7. Terminologies of Entrepreneurship
Profit – Money that is left after all the expenses of running
a business have been deducted from the income.
Scarcity – When wants are greater than resources.
Services – Intangible items that have monetary value and
satisfy needs and wants.
Start-up Resources – Resources an entrepreneur needs
to have when starting a business, including capital, skilled
labor, management expertise, legal and financial advice, a
facility, equipment, and most importantly, customers.
Venture – A business undertaking involving risk.

8. THEORIES OF ENTREPRENEURSHIP
Laissez Faire Theory – This theory explains
that the government should interfere in
economic activities.
Keynesian Theory – This theory contends that
during economic depression the Government
should put massive public works, like
construction of roads and bridges.
Ricardian Theory – This theory develop by
David Ricardo, an English political economist
born in 1772. It states that the key factor in
economic growth is land, which means that
agriculture plays a major role in economic
development.

9. THEORIES OF ENTREPRENEURSHIP
Harrod-Domar Theory – Conceptualized by
Harrod and Domar, it states that the key factor
in economic growth is physical capital machines
more products can be produces through the use
of machines.
Innovation Theory – According to Joseph
Schumpeter, the role of innovation or
entrepreneur in economic Development has the
courage and imagination to handle the system,
and be able to transfer theory in to reality.
Non-economic Theory – Their key factor are
political stability, Efficient Public administration,
open society, and positive cultural values.

10. http://www.smiletemplates.com/powerpoint-templates/subway-
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References:
http://en.wikipedia.org/wiki/Entrepreneurship
http://quizlet.com/9513798/entrepreneurship-key-terms-flash-cards/
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