Contributions of Entrepreneurs

1. Develop new markets

2. Discover new sources of materials

3. Mobilize capital resources

4. Introduce new technologies, new industries and new products

5. Create employment

1. Entrepreneurs are the organizers and coordinators of the major factors of production, such as labor, land and capital. They properly mix these factors of production to create goods and services. Capital resources, from a layman's view, refer to money. However in economics, capital resources represent machines, buildings, and other physical productive resources. Entrepreneurs have initiative and self-confidence in accumulating and mobilizing capital resources for new businesses or business expansion.

2. The biggest employer is the private business sector. Millions of jobs are provided by the factories, service industries, agricultural enterprises, and the numerous small-scale businesses. For instance, the super department stores employ thousands of workers. Likewise giant corporations are great job creators. Such massive employment has multiplier and accelerator effects in the whole economy. More jobs mean more incomes. These increases demand for goods and services. This stimulates production. Again, more production requires more employment.

3. Under the modern concept of marketing, markets are people who are willing and able to satisfy their needs. In economics, this is called effective demand. Entrepreneurs are resourceful and creative. They can create customers or buyers. This makes entrepreneurs different from ordinary businessmen who only perform traditional functions of management like planning, organization, and coordination.

4. Entrepreneurs are never satisfied with traditional or existing sources of materials. Due to their innovative nature, they persist on discovering new sources of materials to improve their enterprises. In business, those who can develop new sources of materials enjoy a comparative advantage in terms of supply, cost and quality.

5. Aside from being innovators and reasonable risk-takers, entrepreneurs take advantage of business opportunities, and transform these into profits. So, they introduce something new or something different. Such entrepreneurial spirit greatly contributes to the modernization of the economy. New technologies and new products are intended to satisfy human needs in a more convenient and pleasant way.

■ Ex. 6. Arrange the following characteristics of entrepreneurship in the order of priority. Account for your choice.

1. The entrepreneur has an enthusiastic vision, the driving force of an enterprise.

2. Entrepreneurs take prudent risks. They assess costs, market/customer needs and persuade others to join and help.

3. The entrepreneur’s vision is usually supported by an interlocked collection of specific ideas not available to the marketplace.

4. The entrepreneur promotes the vision with enthusiastic passion.

5. The entrepreneur takes the initial responsibility to cause a vision to become a success.

6. The overall blueprint to realize the vision is clear; however details may be incomplete, flexible and evolving.

7. With persistence and determination, the entrepreneur develops strategies to change the vision into reality.

■ Ex. 7. Give your explanation to the following problem in the form of a presentation using appropriate diagrams.

Suppose that the population of Norway suddenly grows because of a large immigration, what will happen to wages? What will happen to the rent earned by the owners of land and the rental price of capital?

SECTION B

Косвенная речь

(Reported Speech)

Просьба и приказание в косвенной речи

"Pay the bill in full", says the operations officer.	The operations officer asks to pay the bill in full.
"Don't pay out the sum"— says the branch head to the bank teller.	The branch head asks the bank teller not to pay out the sum.

Утверждение в косвенной речи

"I want to open a deposit account", says the old lady.

The old lady says that she wants to open a deposit account.

Общий вопрос в косвенной речи

"Does the bank open current accounts?" the gentleman wants to know.

The gentleman asks if/whether the bank opens current accounts.

Специальный вопрос в косвенной речи

"What services does the bank provide?" he asks.

He asks (wonders) what services the bank provides.

VOCABULARY LIST

		to be legal council for smb — являться юрисконсультом кого-либо
		to initiate action — организовывать акцию
		to be out of the question — не может идти речи (о чем-либо)
		to brief smb on smth — инструктировать кого-либо по какому-либо вопросу
		to break up — заканчиваться
		to keep smth secret — держать что-либо в секрете
		to man smth — (зд.) организовать работу чего-либо
		to solve a problem — разрешить проблему
		to give smb a go-ahead — давать разрешение (добро) кому-либо на что-либо
		to have a word with smb — переговорить с кем-либо
		to bring smth to a standstill — парализовать деятельность чего-либо
		to resume (restore) financing — восстановить финансирование
		to encourage smb to do smth — поощрять кого-либо, сделать что-либо
		to be good at law — хорошо разбираться в законодательстве
		to set smth right — уладить, утрясти что-либо
		to give in to smth — уступать перед чем-либо
		to maintain one's stand —придерживаться своей позиции
		to close a further two and a half points lower — упасть на два с половиной пункта при закрытии биржи

1. FMA officially announced its statement to cut financing of future Forum East projects by half. Two days later Margot Bracken's law office was the scene of an executive committee meeting of the Forum East Tenants Association. Margot was legal council for the Association. She asked to initiate some collective action. Parades, sit-ins and demonstrations were out of the question. They were not effective. As Margot talked, interest rose. A smile or two appeared. She asked to recruit at least a thousand people to begin with to make the whole scheme work. She told all those present to brief everyone carefully. Half an hour later the meeting broke up. The committee members were cheerful and optimistic. Margot promised to be ready with a master plan next day and asked everybody to keep the whole thing secret. She asked a committee member to help her in a special way, because that time she wanted to stay out of sight not to embarrass two special friends of hers in the bank.

1. What took place in Margot's law office?

2. What forms of collective action were out of the question?

3. What did Margot ask all those present to do?

4. Why did Margot ask a committee member to help her in a special way?

2. It was 8.55 am, Wednesday, at First Mercantile American's main downtown branch. One of the branch's loan officers, Cliff Castleman strolled over to the platform where Edwina D'Orsey was sitting and said that there was a line-up outside. A long queue of people, four or five abreast, extended from the main front door past the entire entry to the building and out of sight beyond. He added that all those people wanted to open accounts. Edwina walked to one of the large windows. What she saw amazed her. Cliff Castleman tried to reassure Edwina saying that Wainwright was coming over with more guards. Edwina looked down at the crowd below and pointed out that there had to be a motive behind all those people coming there at once. Suddenly a flash of insight struck Edwina. It was Forum. She looked at the wall clock which showed a minute to nine and instructed everybody to go back to their work. They would open as usual, on time. The front doors swung open and the first arrivals poured in. Within moments the central public area of the big branch bank was full of people.

1. What information did Cliff Castleman break to Edwina D'Orsey?

2. What amazed Edwina D'Orsey?

3. Nolan Wainwright was coming with more guards, wasn't he?

4. Did Edwina instruct the guards to close the branch?

3. A tall heavyset black man waving some dollar bills wondered if he could put his money in the bank. He sat down at the new accounts desk and immediately a press of others moved into a long line behind him, waiting for their turns. Long wide lines of people formed in front of the other two desks. Tottenhoe, the operations officer came up to Edwina and asked if they could use more desks for new accounts and take all the staff to man them. That in no way solved the problem. It took ten to fifteen minutes to open any single new account. The paperwork required that time. The two guards approached Edwina wondering if they would hold people outside, letting a few in as the others left. Edwina gave them a go-ahead. At the same moment Edwina was aware of a new figure beside her. The man asked if he could have a word with Mrs. D'Orsey. More people drew close. The man admitted that they were all from Forum East and they had to take some action. Edwina replied sharply that the people were bringing the business of the entire branch to a standstill. As she spoke she saw several new faces in the crowd and open notebooks with racing pencils. She realized they were reporters.

Meanwhile the man went on saying that poor people were bringing all the money they could raise to help the bank through its time of trouble. Edwina argued that the bank was not in trouble, it was a question of priorities, the bank hoped to resume the full financing later. But even to herself the words sounded hollow.

1. What did the tall heavyset black man want to do?

2. What did Tottenhoe ask Edwina D'Orsey?

3. It took twenty minutes to open a new account, didn't it?

4. Were the people bringing the business of the branch to a stand still?

5. Why were the people bringing all the money they could raise?

4. One of the reporters, a slim blond girl wondered how much money people would deposit in the bank. The man whose name was Orinda replied that most people would come with the smallest amount the bank took, five dollars. Some banks, as Edwina and those listening were aware, required a minimum of fifty dollars to open a savings account, a hundred for checking. A few had no minimums at all. First Mercantile American — seeking to encourage small savers — compromised at five dollars. Another thing — once an account was accepted, most of the original five dollars could be withdrawn, with any credit balance sufficient to keep the account open. Mr. Orinda and others realized this and proposed to drown the downtown branch bank with in-and-out transactions. People were now forming lines at tellers' counters, paying in or withdrawing tiny amounts, asking questions or engaging tellers in conversation. Outside, the lengthening line stayed in place. It was now 9.45.