Factors of production

Entrepreneurship refers to the act of investing in productive capital and assuming risk for productive ventures. An entrepreneur is an individual who purchases factors of production and combines them to produce consumable output. Entrepreneurs are distinguished from capitalists- who rent out capital to entrepreneurs- and workers, who sell their labor to entrepreneurs. Entrepreneurs are indispensable to the functioning of any economy. Entrepreneurs grow economies by creating new output, increase efficiency

accomplishing the objectives which they intend to make profits and growth by recognising vital opportunities (Burdus, 2010). They are individuals who innovate, recognise business opportunities, gather and co-ordinate new blends of resources {i.e. production functions) in other to extract the most profits from their innovations in an uncertain environment (Rapheal Amit, 1993) Entrepreneurs are private business owners. They are self-starters and optimistic

Manager Vs Entrepreneur Two sides of a coin Who is Who? Table of Content Introduction Page 4 Theory Page 6 Analysis Page 8 Conclusion Page 11 References Page 13 Introduction There must be hundreds of millions companies in the world. Either they are small family businesses ,or small local shops ,or big national firms, or international corporations, either they are new players

As one looks at the history of entrepreneurship, they will notice the variety of definitions and entrepreneurial elements that economists use to explain the topic. Although there are many vital parts of this concept, Israel Kirzner developed his own view that many economists take into account when creating their own definition. Basically, Kirzner’s theory of entrepreneurship held the idea of alertness as its backbone. Without the use of alertness, entrepreneurs would never discover opportunities

or villages are more effective than starting up in the big cities where already many competitors are present. Due to availability of resources in a huge amount in the rural areas and less financial constraints manufacturing of goods tend to lower production cost by which product becomes more affordable to the rural people. Affordable goods enhancement the living standard of rural people and entrepreneurship in rural areas ensures the quality of education, food, cloths etc. apart from this entrepreneurship

The Human Capital Theory Human capital theory states that workers with higher skills levels receive higher compensation since they are more productive. Human capital has been described as the production of wealth through labour, skills and knowledge (Tan, 2014). Employees with more general skills perform more complex tasks. This requires more rigorous recruitment practices and an increase in demand for more educated workers. Human capital theory is formulated with the goal of addressing the benefits

The entrepreneurial function implies the discovery, assessment and exploitation of opportunities, in other words, new products, services or production processes; new strategies and organizational forms and new markets for products and inputs that did not previously exist (Shane and Venkataraman, 2000). The entrepreneurial opportunity is an unexpected and as yet unvalued economic opportunity. Entrepreneurial opportunities exist because different agents have differing ideas on the relative value of

uses several different factors of production which are defined as the various useful resources that an economy utilizes to create goods and services for their customers. The ADM1113 textbook (2016) lists in chapter one, five factors of production which includes labour, capital, entrepreneurs, natural resources, and information. Firstly, labour is defined as the “mental and physical capabilities of people” (Ebert et al. p. 5). Labour work is an important factor of production since the company requires

the desire to protect status appear to be the basis of a sense of general responsibilities. People work hard to maintain their status as it also contributes to their entrepreneurial growth. Caste and religion of entrepreneurs are the contributory factor of entrepreneurial development. History reveals that the entrepreneurial traits do not belong to a specific caste rather the entrepreneurs emerge from varied communities. James Berna conducted a study of 52 medium – scale manufacturing entrepreneurs

2009:867). The Global Entrepreneurship Monitor (2011:8) revealed that there are approximately 400 million entrepreneurs across 54 countries operating start-up businesses. These countries are grouped into three stages of economic development driven by: factor, efficiency and innovation (GEM, 2009:5). This is based on the level of