Mt209 Unit 1 Seminar Option 2

528 Words3 Pages
Unit 1 Seminar option 2 MT209 An entrepreneur is someone who starts businesses (not necessarily runs them). In any case they are interested in setting up a "money making machine" and have other people run it (that could be managerial all the way down to janitor). So, they create value for customers and generate profits that allow employees to be paid, and generate profits that allow vendors to be paid for services rendered to the company (and they use bank loans to capitalize the business, so it gives the banks some money too). In short, they increase competition in the marketplace by increasing the number of potential competitors, which has the tendency to send the price of old goods down in the economy. (How much does a computer cost now compared to 15 years ago?) That mindset works as long the entrepreneur doesn't come up with a new idea, and if that happens, you would expect the good to cost more money -- because there are no substitutes for it. This creates a new MARKET, which arguably is even more important. This provides OTHER ENTREPRENEURS with job opportunities. 2nd part of your question: Entrepreneurs usually must start a business with other people's money. The likelihood of success in the new business endeavor is directly related to the entrepreneur's competence in starting and running a business, understanding of the business, market, and industry; and, ability to adapt as market conditions change. Without that, the business will soon go bankrupt... the employees will be out of a job (maybe even out of a paycheck they are owed); the bank will lose money; the suppliers will lose money, the customers will lose money. Everybody loses. Where are the ethics in this? If you don't fit the criteria above, then you should consider bringing partners on board who can fill your gaps, and make the machine work. That is an ethical decision. It reduces the

More about Mt209 Unit 1 Seminar Option 2

Open Document