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founder of Apple Computers, introduce us to Mac and iPod. Bill Gates founded
Microsoft. The works of these two individuals led to the creation of millions of other
software programs that we see today.
The two major roles of the team, relative to the other critical factors are:
1. Removing the ambiguity and uncertainty of the opportunity by applying
creativity.
2. Providing leadership to manage the available resources in the most effective
manner by interacting with exogenous forces and the capital market context
that keeps changing constantly.
The Timmons model holds the entrepreneurs ability to conjure up a great team as a
major factor of business success. Great teams, however, always remain scarce and
the responsibility is on the entrepreneur to coach team members to excel.
The Resources Factor
The Timmons model discounts the popular notion than extensive resources reduce
the risk of starting a venture and encourages bootstrapping or starting with the bare
minimal requirements as a way to attain competitive advantages. The advantages
of bootstrapping include:
1. Drives down market cost
2. Instills discipline and leanness in the organization
3. Encourages creative resources to achieve more with the limited amount of
money and other resources available
Some of the practical applications of bootstrapping include leasing instead of buying
equipment, working out of a garage instead of rented space, and the like.
Like the formation of the team, the size and type of opportunity determine the level
and extent of resources required. While good resources remain scarce, businesses
with high potential opportunities and a good management team will have no
problem attracting money and other resources.
The entrepreneur works to minimize and control" rather than maximize and own."
The role of the entrepreneur in managing resources includes building a good
resource base to draw from when required and drawing up a business plan through
a fit and balance" method that balances the available resources with the
opportunity and the potential of the team.
A Reality Check
Many entrepreneurs try to have all resources in place before starting a new venture.
The Timmons model of entrepreneurship discounts this notion and holds only three
factors as crucial: a market driven opportunity, availability of a good team and
adequate resources. These three critical factors of entrepreneurship remain
interlinked, with any change in one factor having an impact on the other two.
The reality is that opportunity, team, and resources seldom match. The Timmons
model considers the major role of the entrepreneur to effect a match of the three
critical factors of entrepreneurship at the correct time. Success of the business
venture depends on the ability of the entrepreneur to ensure balance by applying
creativity and leadership, and by maintaining effective communications.
References
Timmons, Jeffry, A.; Zacharakis, Andrew, and Spinelli, Stephen. (2004). Business
Plans That Work: A Guide For Small Business. McGraw Hill.
ceotactics.net. The Entrepreneurial Process Part 3 The Timmons Model
Minniti, Maria, et. al. (2006). Entrepreneurship: The Engine of Growth. Praeger
Perspectives
Images by the author N Nayab
Jean Baptise Say (1767-1832) improved Cantillions definition by adding that the
entrepreneur brings people together to build a productive item.
Frank Knight's Risk Bearing Theory
Frank Knight (1885-1972) first introduced the dimension of risk-taking as a central
characteristic of entrepreneurship. He adopts the theory of early economists such
as Richard Cantillon and J B Say, and adds the dimension of risk-taking.
This theory considers uncertanity as a factor of production, and holds the main
function of the entrepreneur as acting in anticipation of future events. The
entrepreneur earns profit as a reward for taking such risks.
Alfred Marshalls Theory of Entrepreneurship
Alfred Marshall in his Principles of Economics (1890) held land, labor, capital, and
organization as the four factors of production, and considered entrepreneurship as
the driving factor that brings these four factors together.
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taxation policy
industrial policy
easy availability of raw materials
easy access to finance on favorable terms
access to information about market conditions
availability of technology and infrastructure
marketing opportunities
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McClellands Theory of Achievement Motivation hold that people have three motives
for accomplishing things: the need for achievement, need for affiliation, and need
for power. Need for achievement and need for power drive entrepreneurship.
David McClelland (1917-1988) considers entrepreneurs as people who do things in a
better way and makes decisions in times of uncertainty. The dream to achieve big
things overpowers monetary or other external incentives.
McClellands experiment reveled that traditional beliefs do not inhibit an
entrepreneur, and that it is possible to internalize the motivation required for
achievement orientation through training.
Peter Druckers Theory of Entrepreneurship
Peter Drucker (1909-2005) holds innovation, resources, and an entrepreneurial
behavior as the keys to entrepreneurship. According to him entrepreneurship
involves
1. increase in value or satisfaction to the customer from the resource
2. creation of new values
3. combination of existing materials or resources in a new productive
combination
What theories do you think explain entrepreneurial drive?
An analysis of various entrepreneurship theories reveal while what economists differ
on the force that drives entrepreneurs or the central characteristics of
entrepreneurship, they remain unanimous that entrepreneurship is a distinct
concept and a central factor of the economic activity.
Let us know which you think is the theory that best covers entrepreneurial
motivation?
References
Image Credit:
geograph.org.uk/Dennis Thorley under CC 2.0 license
flickr.com/-Xv under CC 2.0 license
of business location, forms and the utilization of available resources and institutions
(Acs & Armington, 2004). In a nutshell, entrepreneurship refers to the behavioral
attributes of individuals and should not be confused with well-defined professional
persons (Lloyd-Ellis & Bernhardt, 2000).
2.0 Forms of Entrepreneurship
According to Carree and Thurik (2002), entrepreneurs in history have often been
represented in many faces and assumed different roles. As identified by scholars
such as Schumpeter, Kirzner and Knight, entrepreneurs can be termed as
innovators, profit opportunists and uncertainties and risk takers respectively.
Schumpeter drew his attention to understanding an entrepreneur as an innovator.
As an innovator, the entrepreneur performs new combinations which Schumpeter
called enterprises (Karlsson, Friis & Paulsson, 2004). An entrepreneur according to
Kirzner perceived profit opportunities. This role is what was labeled Kirznerian
entrepreneurship. The last role of an entrepreneur is that of assuming the several
risks and uncertainties which may be associated with running a business. This role
is labeled Knightian entrepreneurship. As the individual introduces a new product in
the market or starts a new business, this entrepreneurial role can be described in
terms of the three labels. As posted by Audretsch & Lehman (2005), the individual
who launches a new firm or introduces new products can be termed as the
innovator and he assumes that he has perceived a previously uncertain profit
opportunity. The innovator also takes risks that the venture or the new product may
eventually turn out to be atotal failure (Todtling & Wanzanbock, 2003).
2.1 Entrepreneurial Effects in the Growth of Economy
To sum up the contributions of entrepreneurship to economic growth Carree and
Thurik (2002) have provided five strands of empirical evidence to show their
involvement. The first evidence mainly deals with the turbulence effect of
entrepreneurship on the growth of economy. Turbulence can be viewed as the total
entries and exits in regions or industries and can easily be interpreted as one of the
powerful indicators of entrepreneurial activities. The effect of and changes in size
distributions in regions represents the second strand of evidence as identified by
the two researchers (Lloyd-Ellis & Bernhardt, 2000). It is believed that the change in
size distribution and its ultimate effects can have a significant impact on the growth
of economy (Carree, Van Stel, Thurik & Wennekers, 2002). Thirdly, the number of
market participants in any industry will finally have an important effect on economic
growth and this is recognized as another strand of evidence of the role of
entrepreneurship in economy expansion (Chell & Ozkan, 2010). Empirical literature
has also identified the effect of the number of business owners and self-employed
individuals in economic growth. This is the fourth strand of evidence that seeks to
appreciate the role of self-employment in the growth of economy in any state.
Lastly, the economic history of previously centralized and planned economies will
also have an influence in economic growth of countries (Carree, Van Stel, Thurik &
Wennekers, 2002). For instance, in Eastern Europe, small enterprise development
served as the most vital part of the transitional process which has seen economic
growth in the area. The turbulence effect of entrepreneurship on economic growth
refers to the entry and exist which however appears to have minimal contributions
to the growth of the economy in the short run (Bathelt, 2001). Nevertheless, the
entry-exit turnover will make a significant contribution especially in service industry
than in manufacturing industry in the long run as evidence by empirical research
done by Bosma and Nieuwen-huijsen (Chang, 2011). The effect of size distribution
changes of firms on growth performances has also been recognized particularly
when examining the share of small firms in the manufacturing industry in the
European states. Competition among firms which is a commonplace for
entrepreneurs has been shown to have a positive effect in the growth of economy
(Carree, 2002). The increased numbers of participants in the market compounded
with entrepreneurial activity are some of the contributions of entrepreneurship in
economic growth (Chell & Ozkan, 2010). In particular, local competition which is
measured in terms of the relative number of businesses in a region per worker
encourages growth of employment in industries thus economic growth.
Entrepreneurship encourages self-employment and this has been found to have an
impact in productivity growth (Chang, 2011). This is however a much contested
observation whether countries should adopt the equilibrium or the elf-employment
model which has largely failed counties such as Italy. According to Chang (2011),
the high levels of self-employment in the country have proved to be inefficient for
economic development. Italy has in the past experienced large negative impacts on
the growth of its economy because of self-employment. Scandinavian countries
represent cases of countries with relatively low rates of self-employment than the
equilibrium and have often been characterized by extensive public sector and low
rates of entry and exit. The contrary is seen when analyzing the business structure
in West Germany where they have low rates of self-employment (Van Stel, Carree &
Thurik, 2004a). In Germany, there is a total failure in the restructuring the economic
policies as the United Kingdom has done. The industrial policy in German has
repressed the structural changes by solely supporting large-scale industries with
enormous subsidies (Van Stel, Carree & Thurik, 2004b). This has led to the lack of a
vibrant economic growth made of new industries and firms in German and thus a
serious barrier to innovative activity.
2.2 Future Perspective in Analysis
From various strands of literature, there have been many insights that have inspired
a number of frameworks which should be embraced in the analysis of how
entrepreneurship plays a critical role in economic development. Carree and Thurik
(2002) found three different levels of analysis to be evident when associating
entrepreneurship to economic growth as this meant that the individual level could
be linked to the macro-economic sphere. These levels include the individual, firm
and the macro levels of analysis. According to Bruce, Deskins, Hill and Rork, (2009),
entrepreneurial actions usually take place at the level of the firm and thus require a
vehicle which can transform their individual ambitions and qualities into workable
actions (Todtling & Wanzanbock, 2003). In small firms, the entrepreneur usually has
the controlling stake which acts as the vehicle for transformations. Larger firms
have also been found to mimic smaller firms in terms of business units, joint
ventures and subsidiaries in order to introduced entrepreneurship or corporate
REFERENCES
Acs, Z.J & Armington, C. (2004). Employment growth and entrepreneurial activities
in cities. Regional Studies, 38(8):911-927
Audretsch, D., & Lehman, E (2005). Does the knowledge spill over theory of
entrepreneurship hold for regions? Research Policy, 34: 1191-1202
Bathelt, H (2001). Regional competence and economic recovery: divergent growth
paths in Bostons high technology economy, Entrepreneurship & Regional
Development, 13(4): 287-314
Bruce, D., Deskins, J.A., Hill, B.C,. & Rork, J.C (2009). Small business activity and
state economic growth: Does Size matter? Regional Studies, 43(2):229-245
Bygrave, W.D., & Minniti, M (2000). The social dynamics of entrepreneurship.
Entrepreneurship Theory and Practice, 24(3)25-36
Carree, M., Van Stel, A., Thurik, R., & Wennekers, S. (2002). Economic development
and business ownership: an analysis using data of 23 OECD countries in the period
1976-1996. Small Business Economics, 19: 271-290
Carree, M.A (2002). Industrial restricting and economic growth, Small Business
Economics, 18:243-255
Carree, M.A., & Thurik, A.R (2002). The impact of entrepreneurship on economic
growth. Website <http://people.few.eur.nl/thurik/Research/Books/Thurikf.pdf> 22 nd
March, 2012
Chang, E.P (2011). Exploring the effects of entrepreneurship capital on the private
economic impact of American counties. Retrieved 24 th March, 2012, from:
http://usasbe.org/knowledge/proceedings/proceedingsDocs/2011/PaperID99.pdf
Chell E., & Ozkan, K. M (2010). Nascent Entrepreneurship and Learning.
Northampton: Edward Elgar
Karlsson C., Friis C., & Paulsson T (2004). Relating Entrepreneurship to Economic
Growth. Retrieved 24th March, 2012, from: http://papers.cesis.se/CESISWP13.pdf
Lloyd-Ellis, H., & Bernhardt, D (2000). Enterprise, inequality and economic
development, Review of Economic Studies, 67: 147-168
Robbins, D.K., Pantuosco, L.J., Parker, D.F & Fuller, B.K (2000). An empirical
assessment of the contribution of small business employment to U.S state economic
performance, Small Business Economics, 15:293-302
Tesreau, K., & Gielazauskas, V (n.d). Entrepreneurship: a driving force in the new
economy, Retrieved 24 th March, 2012, from:
http://www.missourieconomy.org/community/econ_policy/pdf/entrepreneurship.pdf
Todtling, F., & Wanzenbock, H (2003). Regional differences in structural
characteristics of start-ups. Entrepreneurship & Regional Development, 15: 351-370
Van Stel, A., Carree, M., & Thurik, R (2004a). The effect of entrepreneurship on
national economic growth: An analysis using the GEM database. Retrieved 24 th
March, 2012,from http://www.ondernemerschap.nl/pdf-ez/N200320.pdf
Van Stel, A., Carree, M., & Thurik, R (2005). The effect of entrepreneurial activity on
national economic growth. Small Business Economics, 23:311-321
They are prepared to take the exit. Failure is not unusual, and sometimes its best to
follow a practical route into a new venture instead of sinking resources into a lost
cause.
And lastly, entrepreneurs doubt themselves, but not too much. Ask yourself, can I
do this? Do I want to do this? Instead of worrying about fitting in with someone
elses image, check your gut. That should tell you a lot.
Steven R. Covey outlines this habit in his book, "The 7 Habits of Highly Effective
People." However, Covey doesn't mean that you need to cultivate a habit of
responsibility (which entrepreneurs do), but that you control your ability to respond
in all situations.
The path to entrepreneurship is an up-and-down roller-coaster ride, and it is
emotionally draining. It's easy to let your emotions control you, rather than the
other way around. Due to this fact, it's important to control all of your emotional
responses to stressful situations.
Focus on Adding Value
To be a successful entrepreneur, you need to have an ultimate focus on adding
value. It doesn't matter if the company that you are starting manufactures a
product or provides a service. It doesn't matter if it's a business-to-business
company or a business-to-consumer company. The bottom line is that your
company has to add value to its clients or customers.
While this is habit number five, it might be closer to habit number one in terms of
importance. Gone are the days where an entrepreneur can make a gimmicky
business that doesn't add any value but still manages to earn a lot of money.
Although it may make a few existing players redundant, the government can soften
soften the blow by redirecting surplus wealth to retrain workers. (For more, see:
Starting A Small Business In Tough Economic Times.)
Entrepreneurs Also Create Social Change
Through their unique offerings of new goods and services, entrepreneurs break
away from tradition and indirectly support freedom by reducing dependence on
obsolete systems and technologies. Overall, this results in an improved quality of
life, greater morale and economic freedom.
For example, the water supply in a water-scarce region will, at times, force people to
stop working to collect water. This will impact their business, productivity and
income. Imagine an innovative, automatic, low-cost, flow-based pump that can fill in
people's home water containers automatically. Such an installation will ensure
people are able to focus on their core jobs without worrying about a basic necessity
like carrying water. More time to devote to work means economic growth.
For a more contemporary example, smartphones and their smart apps have
revolutionized work and play across the globe. Smartphones are not exclusive to
rich countries or rich people either. As the growth of China's smartphone market and
its smartphone industry show, technological entrepreneurship will have profound,
long lasting impacts on the entire human race.
Moreover, the globalization of tech means entrepreneurs in lesser-developed
countries have access to the same tools as their counterparts in richer countries.
They also have the advantage of a lower cost of living, so a young individual
entrepreneur from an underdeveloped country can take on the might of the multimillion dollar existing product from a developed country. (For more, see: Time For
Chinas Smartphone Revolution.)
Community Development
Entrepreneurs regularly nurture entrepreneurial ventures by other like-minded
individuals. They also invest in community projects and provide financial support to
local charities. This enables further development beyond their own ventures.
Some famous entrepreneurs, like Bill Gates, have used their money to finance good
causes, from education to public health. The qualities that make one an
entrepreneur are the same qualities that motivate entrepreneurs to pay it forward.
(For more, see: Encouraging Good Habits With An Incentive Trust.)
The Other Side of Entrepreneurs
Are there any drawbacks to cultivating entrepreneurs and entrepreneurship? Is
there an upper limit for the number of entrepreneurs a society can hold?
Italy may provide an example of a place where high levels of self-employment have
proved to be inefficient for economic development. Research reveals that Italy has
in the past experienced large negative impacts on the growth of its economy
because of self-employment. There may be truth in the old saying, "too many chefs
and not enough cooks spoil the soup." (For more, see: The Real Risks Of
Entrepreneurship.)
The Role of States
Regulations play a crucial role in nurturing entrepreneurship, but regulation requires
a fine balancing act on the part of the regulating authority. Unregulated
entrepreneurship may lead to unwanted social outcomes including unfair market
practices, pervasive corruption, financial crisis and even criminal activity.
Findings from United Nations University also indicate the possible implications of
over nurturing" entrepreneurship. Wim Naud argues that while entrepreneurship
may raise economic growth and material welfare, it may not always result in
improvements in non-material welfare (or happiness). Promotion of happiness is
increasingly seen as an essential goal.
Paradoxically, a significantly high number of entrepreneurs may lead to fierce
competition and loss of career choices for individuals. With too many entrepreneurs,
levels of aspirations usually rise. Owning to the variability of success in
entrepreneurial ventures, the scenario of having too many entrepreneurs may also
lead to income inequalities, making citizens more not less unhappy.
conduit for knowledge spillovers. The second involves what we will term here as
main street entrepreneurship. The third way is through the identification and
commercialization of opportunities across the globe.
A minor army of scholars has provided compelling evidence showing that those
cities, states, and entire countries with vibrant entrepreneurship generally exhibit a
superior economic performance, typically measured in terms of economic growth,
productivity or unemployment.4 The reason why entrepreneurship drives economic
growth is because it serves as one of the most important conduits for facilitating
knowledge created in one organizational context to spill over and become
commercialized through innovative activity in a new startup. Where would the
country be had Steven Jobs not taken the ideas and inventions created at Xerox
PARC, which the company itself did not think were actually worth pursuing, to
launch his new startup? It is not just Apple Computer, but also Microsoft, Google and
Facebook, and thousands of other entrepreneurial startups that ensure that ideas
and inventions which are costly to create actually end up being commercialized and
transformed into the innovations that not only revolutionize their industries, but also
fuel economic growth, job creation and competitiveness in global markets.
To spur more knowledge-spillover entrepreneurship, America needs to remain
vigilant that people with important ideas, independent of what their current
occupational status is right now, have access to the key entrepreneurial resources
required to launch a new business money, talent, and know-how. We have to
make it as easy as possible for talented and creative people to take the leap into
entrepreneurship.
love affair with small business as both the bedrock of local communities and
national economic vitality. As the Frenchman Alexis de Tocqueville reflected in 1835,
What astonishes me in the United States is not so much the marvelous grandeur of
some undertakings as the innumerable multitude of small ones.6
The third role involves the fundamental feature of entrepreneurial thinking
discovering opportunities and then acting upon those opportunities. Given the
American predominance and preeminence following World War II, along with its
historical isolationist tendencies, it is perhaps not surprising that Americans have
developed the habit of looking for those opportunities predominately at home, in
the United States. After all, estimates placed half of the worlds wealth and twothirds of the physical capital in the United States as World War II came to an end.
Thus, it is perhaps understandable that when confronted by the recent economic
crisis, the drop in aggregate demand triggered calls for stimulating the economy
from political parties of all persuasion, albeit one side advocated increases in
government spending while the other side argued for tax cuts.7 The perception was
a lack of opportunities for American businesses to sell their products, so that
spending had to be increased, one way or another, to restore those opportunities.
The entrepreneurial view, however, suggests scanning not just the domestic
economy for opportunities. In a globalized economy, it makes sense to search for
and discover opportunities not only at home but throughout the world. This is
exactly what Germany has done in its astonishing economic resilience even while its
European neighbors and other leading developed countries have struggled. The
unemployment rate fell below six percent and in several Bundeslaender, such as
Bavaria and Baden-Wuerttemberg, was at negligible levels. By equipping its citizens
and businesses with an orientation and the skills to understand, comprehend,
interact, and ultimately thrive in other cultural and national contexts, Germany
looks for, and finds, opportunities not just at home, but throughout the world.
Through a careful development of a global orientation, Germany has equipped its
citizens and companies with the skills required to go out into the world to discover
and reap global opportunities. This global entrepreneurial orientation has paid
dividends in terms of growth, jobs and competitiveness. Through a global
entrepreneurial orientation, Germany has been able to fend off the Great Recession
with its strong export performance.
America needs to develop a similar entrepreneurial spirit and attitude. It is not
enough just to be comfortable and proficient in the context at home in the United
States. Americans need to be equipped with the attitudes, orientation, skills, and
competencies to go out into the world to discover, create, and act upon those
opportunities. This involves acquiring the so-called soft skills of cultural and
language competencies and feeling at home not just at home but also in other
countries and cultures as well.
Notes:
1 The United States of Entrepreneurs, The Economist, May 12, 2009.
2 See for example, the recent study by Ryan Decker, John Haltiwanger, Ron Jarmin,
and Javier Miranda, The Role of Entrepreneurship in US Job Creation and Economic
Dynamism, Journal of Economic Perspectives, Summer, 2014. In particular, the
authors conclude that, Evidence along a number of dimensions and a variety of
sources points to a US economy that is becoming less dynamic. Of particular
interest are declining business startup rates and the resulting diminished role for
dynamic young businesses in the economy.
3 Jose Ernesto Amoros and Niels Bosma, Global Entrepreneurship Monitor 2013
Global Report http://www.gemconsortium.org/docs/download/3106.
4 David B. Audretsch, Everything in its Place: Entrepreneurship and the Strategic
Management of Cities, States and Regions (New York: Oxford University Press,
2015).
5 David B. Audretsch, Innovation and Industry Evolution (Cambridge: MIT Press,
1995).
6 Cited from Audretsch, Innovation and Industry Evolution, p. 185.
7 Paul Krugman, The Return of Depression Economics and the Crisis of 2008 (New
York: W.W. Norton, 2008).
Third , business provides income here we come at last to the money matter But
dont forget: income that business provides is by no means restricted to the profit
its owners get. It pays salaries and wages to its employees, and this way, makes the
whole business world go round: they spend the money they earn buying all kinds of
goods and favour further development of business ventures.
Forth , business contributes to national well-being. It does it in several ways: by
means of taxes it pays which make it possible for the government to maintain all
kinds of public and social institutions and services; by investing money in
developing science and technology and constructing new enterprises; by full use of
local recourses, including those located in remote rural areas, and in a number of
other ways.
Fifth , business helps enlighten and educate people and encourages their further
personal growth. High level of competition makes it vital for both businessmen and
their employees to be involved in the constant process of learning and developing
their personal qualities such as creativity, determination, communication skills and
vision for new business opportunities.
So you see, that despite public opinion on this matter, business is not all that
selfish. In fact, it is much more unselfish than a lot of public institutions It does
not exist to satisfy its own needs that is a way to business failure. On the contrary,
its function is to satisfy in the long run the consumer demands our demands, and
to make our life comfortable. So, when you make this crucial decision to embark on
a business enterprise, bear it in mind that it is a way to serve society.
Goals Of Individuals And Society
Setting goals, and then working to achieve them, is a sign of maturity and
responsibility in a society, just as it is a sign of maturity in an individual. What goals
have people set for themselves in their economic life? And how well are these goals
being achieved? These are the questions discussed in this handout.
One important goal that the people have set for their economy is Full Production in
order to achieve full employment. We want to make full use of the productive
resources that are available -labour, capital and natural resources -and use these
resources efficiently.
How well are we achieving the goal of full employment and full production? The
nation cant realistically expect to provide jobs continuously for 100% of the-men
and women who are able and willing to work. There will always be some
unemployment roughly 2 to 5% of the labour force. But when millions of people
are unnecessarily unemployed, it means they are not making a productive
contribution to the country and they are not earning an income. For this reason, the
goal of full production -which requires both full employment and efficiency is one
of the most important in our economy.
A second major goal is Stable Growth. We want the economy to become bigger and
better through the years. We measure the amount of our national output of goods
and services by looking at statistics of Gross National Product. Economic growth is a
steady increase in GNP per person (total GNP divided by the nations population).
We want GNP to increase more or less at a steady rate about 4 or 5% each year
(informal sector estimate) without having business recessions or rapidly rising
prices (inflation), or increases in unemployment.
Production, employment and growth of GNP are all pretty easy to measure. When
we come to certain other economic goals, however, we have to talk about them in
more general terms.
Freedom of Choice is a goal that practically everyone would include high on the list.
But what does it mean in concrete terms? Economists have pointed out that
freedom of choice is important for consumers, for workers, and for business.
Freedom of consumer choice means that consumers will be able to select the goods
they want to buy from a fairly wide range of alternatives, according to individual
needs and preferences. We are not satisfied with a system where the consumer is
told: You can have any size and colour hat you want as long as its medium and
black!
Freedom of occupational choice is an important area of economic freedom. Men and
women want to be able to choose the kind of work they will enjoy doing and that
will provide adequate wages and personal satisfaction.
Finally, there is much talk about the importance of free enterprise. This is
important aspect of freedom of choice. It gives people the freedom to start their
business and use the factors of production in such a way as to make a profit. Much
of the current economic system is built on the foundation of this particular freedom.
Equality of Opportunity for men and women in the society is another goal. It is
closely related to freedom of choice, because it says that all people should
approximately the same degree of freedom to exercise their rights as consul
workers and enterprises.
The goal of Economic Security means that we want the members of economic
society to have enough money to be able to buy adequate food, clothing, shelter
and other necessities.
Widespread poverty not only means failure to achieve the goal of economic security
for these people, but it also raises serious questions about whether we are
achieving the goal of Economic Justice in society. Not everyone agrees on the
meaning of fairness and justice in economic life, but it goal that nearly everyone
feels is important to define and work toward.
Finally, there is one economic goal that is not limited to the boundaries of the
country, but spreads overseas to other countries. This is the goal of International
Balance. We want to maintain a strong and balanced relationship in foreign trade
and international payments.
Failure to achieve this goal not only causes serious economic problems at home and
abroad, but also increases international tensions threaten world peace.