What Institutional Factors Encourage Entrepreneurship?

Economics of Entrepreneurship Series Module 6 | taught by FEE Courses

Course Description

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:

Facilitator Guide:
Complete Course Bundle:

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 civil society.

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:

  1. What is Entrepreneurship?
  2. What is the Entrepreneur’s Role in Creating Value?
  3. How Can Entrepreneurs Use Economics to Make Better Decisions?
  4. How Does Trade Create Wealth?
  5. What Do Profit and Loss Tell Us?
  6. What Institutional Factors Encourage Entrepreneurship?
  7. What are the Links between Entrepreneurship, Personal Character, and Civil Society?
  8. How Do I Become an Entrepreneur?

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?

This course is great for:

  • Students interested in starting a business or learning more about the economic way of thinking
  • Teachers seeking to complement learning objectives taught in introductory-level economics, business, history, and civics classes
  • Leaders of youth organizations looking for lessons and activities around entrepreneurship, economics, personal character, and civil society
  • Parents wanting their students to get the most out of life through making better choices and better understanding the tradeoffs involved with those choices

Related Standards:

Standard 14: Entrepreneurship

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

FEE Courses
FEE Courses

Course Curriculum

Module Six: What Institutional Factors Encourage Entrepreneurship?
Pre-Course Survey
Overview
Concepts and Terms
Objectives
Show Content
Lesson One: The Marvel of the Market
06:33
Introduction
I, Pencil: The Movie
Watch Video
Think and Reflect
I, Pencil: My Family Tree by Leonard Read
Read Essay
Lesson Quiz
Knowledge Recap
Bonus Material
Show Content
Lesson Two: When Order Emerges
06:52
Introduction
Can Order Be Unplanned? by Learn Liberty
Watch Video
Think and Reflect
Spontaneous Order
Watch Video
Cavemen, Money, and Spontaneous Orders by Sandy Ikeda
Read Article
Think and Reflect
The Beauty of Emergent Order by Voice and Exit
Watch Video
Think and Reflect
Lesson Quiz
Knowledge Recap
Bonus Material
Show Content
Lesson Three: The Rules of the Game
03:18
Introduction
What Caused the Economic Boom of Wealth?
Watch video
Think and Reflect
Liberty and Dignity Explain the Modern World by Deidre McCloskey
Read Article
Think and Reflect
Activity: Tragedy of the Lemonade
Lesson Quiz
Knowledge Recap
Bonus Material
Show Content
Lesson Four: Incentives Matter
02:15
Introduction
Incentives Matter by Learn Liberty
Watch Video
Think and Reflect
The Power of Incentives by Dwight Lee
Read Article
Think and Reflect
Candy Cartel
Lesson Quiz
Knowledge Recap
Bonus Material
Show Content
Lesson Five: Entrepreneurship Stifled
10:05
Introduction
Watch Video: Why Can't Chuck Get His Business off the Ground?
Think and Reflect
Does Occupational Licensing Protect Its Consumers? by John Hood
Read Article
Think and Reflect
Should You Need the Government's Permission to Work?
Watch Video
Think and Reflect
Burdens of Licensure
Lesson Quiz
Knowledge Recap
Bonus Material
Please Provide Feedback for Module 6
Module 6 Quiz
Module 6 Badge
Show Content