Module 6: What Institutional Factors Encourage Entrepreneurship?
People respond to incentives in predictable ways. The “rules of the game,” or what economists call institutions, influence the choices individuals make. Basic institutions like laws and cultural customs establish the foundational incentive structure of an economic system. Entrepreneurs are vital to economic growth and higher living standards. Societies with an institutional environment that discourages entrepreneurship tend to see few individuals involved in wealth creating activities. This lesson introduces students to the concept of institutions as we evaluate the impact specific institutions tend to have on encouraging or discouraging entrepreneurship.
About the Economics of Entrepreneurship Series
Parents and teachers, download the guide for facilitating the course:
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An entrepreneur is someone who discovers and provides for an unmet need by producing value for others in the community and for themselves. They are both problem solvers and wealth creators. Creating and maintaining a culture that embraces entrepreneurship is critical to the long-term prosperity of our economy and our society. This
course is designed to help students discover the value of
entrepreneurship and the importance of strong character in a free and
We believe that students can increase their chances of success with practical education about entrepreneurship, markets, and the economic way of thinking. These ready-to-go lessons introduce students to entrepreneurship and the economic way of thinking through a series of carefully selected articles, videos, discussion guides, student handouts, and activities. Each lesson should take about 45 minutes to complete.
This course contains a series of eight modules organized around the essential concepts of the economics of entrepreneurship. The modules included in this course are:
Within each module are five stand-alone lessons including readings, videos, discussion guides, comprehension questions, and activities. These 40 lessons can each be used independently, or they can be followed as part of the larger guided learning path set forth by this course. It is recommended to follow the modules and lessons in the sequence presented. The program can be taught in 30 hours, or it can be expanded to as many as 40 hours for students who elect to conduct optional self-study using the materials found in the “Bonus Materials” section provided in each lesson.
Is this course right for me?
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Entrepreneurs take on the calculated risk of starting new businesses, either by embarking on new ventures similar to existing ones or by introducing new innovations. Entrepreneurial innovation is an important source of economic growth