Chapter One Reflection

            In Chapter One I learned what entrepreneurship is. I learned how entrepreneurship and the economy go hand to hand. Also how the environment affects entrepreneurs. Entrepreneurial means acting like an entrepreneur or having an entrepreneurial mind-set. In a free enterprise system people have the right to make economic choices as in what products to buy or if they want to start a business and compete with other businesses. The Entrepreneurial Start-up process is made up of five components. The components are the entrepreneur, the environment, the opportunity, start-up resources, and the new venture organization. They all work together to make a new business. An opportunity is an idea that has commercial value. The new venture organization is the infrastructure of a business. A discontinuances business may be a business operating under another game. Elastic demand is the change in the price of an item that causes a change in the demanded. While inelastic demand refers to a situation in which a change in price has very little effect on demand for products. The amount of a good or service that producers are willing to provide is called supply. Basically for a business to be able to compose and succeed in the free market system, entrepreneurs need to understand how the economy works.