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
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