EPF2c. The Role of Entrepreneurs

Role of Producers & Consumers

in a Market Economy

2

WHAT ARE ENTREPRENEURS AND WHAT IS THEIR ROLE IN THE MARKET ECONOMY?

Essential question:

3

EntrepreneursDefinition: • people who take calculated risks • in order to start new businesses • and develop innovative products

and processes• They accept the risk of

organizing resources to produce goods and services

• They expect to earn profits

4

WHAT ARE IMPORTANT INCENTIVES FOR ENTREPRENEURS

Essential question:

5

What are incentives for entrepreneurs?

• Profit is an important incentive that leads entrepreneurs to accept the risks of business failure.

• Independence in decision making is also important (meaning entrepreneurs like to make their own decisions)

6

HOW DO ENTREPRENEURS BENEFIT SOCIETY?

Essential question:

7

How do entrepreneurs benefit society?

• The introduction of new products and production methods is:– an important form of competition: • by bringing new goods and services to market • or delivering products in innovative ways

– and is a source of technological progress– and economic growth