Download 5 Entre and the Economy

Survey
yes no Was this document useful for you?
   Thank you for your participation!

* Your assessment is very important for improving the work of artificial intelligence, which forms the content of this project

Transcript
Entrepreneurship & The Economy
Economics
 In a free enterprise system (a.k.a capitalism)
people can make economic choices such as



What to buy
To own property
To start a business and compete with others
Without capitalism, entrepreneurship cannot exist!
Economics Continued
 Market structure: the nature and degree of
competition among businesses operating in the
same industry

Perfect competition: numerous buyers & sellers – no
single buyer/seller can affect price – g/s is virtually
identical


Monopoly: one seller has control over supply & prices



(e.g. food companies)
(e.g. LCBO, Microsoft)
Canadian Air Farce commentary on Microsoft
Oligopoly: a few competing firms exist

(e.g. car industry, gas companies)
Basic Economic Concepts
 Goods: tangible/physical items

Example?
 Services: intangible/non-physical products

Example?
Interdependence
Demand
 Demand: the quantity of goods or services
that consumers are willing and able to buy

Law of demand: as price goes up, the quantity
demanded goes down
Give an example of this law using a specific
product.
Demand Continued
 Elastic demand: a slight change in price
creates a sharp change in demand (highly
responsive to change)

Example: Vacation package
 Inelastic demand: a change in price has
very little effect on demand

Example: Food, fuel
Supply
 Supply: the amount of a good or service
that producers are willing to provide
 If demand exceeds supply, scarcity occurs

Examples?
Economic Indicators
 The federal government publishes statistics
to help entrepreneurs understand the state of
the economy and predict changes


Employment rate – July 2012 92.7%
GDP – the total market values of G&S
produced within a nation during a given
period
What Entrepreneurs Contribute
 They recognize consumer wants and turn
demand into supply
 They respond to consumer wants and create
even more wants to be satisfied – drives the
economy
 They provide jobs, thus securing their own
financial security and those they employ
Small Business Vs. Ventures
 Small business: “mom-and-pop” - main goal
is to create a job that provides enough
profit to fulfill personal goals

Example: shoe repair shop, lawyer
 Ventures: principal goal is to innovate and
grow the venture to a regional, national, or
global level

Example: Tim Hortons, LuLu Lemon
Challenges Facing Young
Entrepreneurs
 Lack of experience & knowledge they bring
to a venture
 No credit history
 No collateral
 No track record in paying off debt
Value of Experience
 Entrepreneurial skills can be developed
through:




Part-time work
Summer work
Volunteering
School leadership positions
Document related concepts

Pricing strategies wikipedia, lookup

Price discrimination wikipedia, lookup

Perfect competition wikipedia, lookup

Dumping (pricing policy) wikipedia, lookup

Marketing channel wikipedia, lookup

Supply and demand wikipedia, lookup

Say's law wikipedia, lookup