FACTORS OF

PRODUCTION
-
ENTREPRENEURSHIP or
ENTERPRISE
DEFINITION OF ENTREPRENEURSHIP

The capacity and willingness to

develop, organize and manage the
resources of a firm coupled with
the ability to assume risks.

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The entrepreneur is the one that initiates the
process of production by mobilizing the other
factors of production.

He organizes, manages and controls the affairs

of the firm. He is the risk bearer and in
consideration of this the profit maker as well.

The entrepreneurs focus on the risk bearing

and initiating production. 4
CHARACTERISTICS
OF A
SUCCESSFUL
ENTREPRENEUR
Curiosity
Successful entrepreneurs have a sense of curiosity that
allows them to continuously seek new opportunities.
Rather than settling for what they think they know,
curious entrepreneurs ask challenging questions and
explore different avenues.

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Adaptability
The nature of business is ever-changing.
Entrepreneurship is an iterative process, and new
challenges and opportunities present themselves at
every turn. Entrepreneurs need to evaluate situations
and adapt so their business while keep moving forward
when unexpected changes occur.

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Decisiveness
To be successful, an entrepreneur has to decide on all decisions
and stand by them. As a leader, they’re responsible for guiding
the trajectory of their business.

If you want to be an entrepreneur, it means having the

confidence to make challenging decisions and see them through.
If the outcome turns out to be less than favorable, the decision
to take corrective action is just as important.

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Comfortable with Failure
The reasons for failure are vast and encompass everything
from a flawed business model to a lack of focus or
motivation.

While many of these risks can be avoided, some are

inevitable.

Successful entrepreneurs prepare themselves for, and are

comfortable with failure. 9
Risk Tolerance
Entrepreneurship is often associated with risk.

Successful entrepreneurs are comfortable with

encountering some level of risk to reap the rewards
of their efforts; however, their risk tolerance is
tightly related to their efforts to mitigate it.

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Persistence
They see failures as opportunities to learn and
grow.

Throughout the entrepreneurial process, many

hypotheses turn out to be wrong, and some ventures
fail altogether.

Part of what makes an entrepreneur successful is

their willingness to learn from mistakes. 11
 CHARACTERISTICS
CONT’D
❏ Innovative
❏ Team Building
❏ Long-term Focus
❏ Structured Experimentation
❏ Creativity
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FUNCTIONS OF AN ENTERPRISE or
ENTREPRENEURSHIP
Conceptualizing
Identifying possible business ideas, goals or objectives.

Planning
Identifying targets, goals and objectives and ways of
accomplishing them .

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Taking Initiative

Organizing Resources ( Assessing funds, labour,

equipment, location).

Trade Credit
Exchange of goods knowing that you will pay at a later
date .
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 THE PAYMENT
ASSOCIATED WITH
ENTREPRENEURSHIP IS
PROFIT

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TYPES OF ENTERPRISE ASSOCIATED
WITH ENTREPRENEURSHIP

● Sole proprietorship
● Partnership
● Private Company Limited
● Public Sector Limited
 ELEMENTS AFFECTING THE
PRODUCTIVITY OF AN
ENTERPRISE/ENTREPRENEUR
❏ Aspiration and Attitude
❏ Personal Factors
❏ Government Policies, Facilities, and Incentives
❏ Business Competitors
❏ Support System
❏ Social and Cultural Factors
❏ Education and Training
❏ Bank and Financial Institutions 19
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21
TEAM PRESENTATION

Renae Spencer
Domonique White
Kimberly Charlton
Ashley Chance

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 REFERENCES
❖ 5th Form Principle of Business Book
❖ https://www.toppr.com/guides/business-economics/theory-of-production-and-cost/factors-
of-production-entrepreneur/
❖ https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.azquotes.com%2Fquote
%2F1394869&psig=AOvVaw3-KeOBItpNWZDsaaDKAxJr&ust=1636657347861000&s
ource=images&cd=vfe&ved=0CAsQjRxqFwoTCJjd5fS9jvQCFQAAAAAdAAAAABA

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