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Thinking It Over

Capitalism gives entrepreneurs the best opportunity to be successful through three main principles: (1) the right to private property and businesses, which encourages hard work and profit retention; (2) freedom of competition which spurs innovation and improvement; and (3) freedom of economic choice to make business and personal decisions. These rights established by capitalism motivate business creation and economic growth overall.

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Sandriito Joaquín Pacheco Pérez
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35 views

Thinking It Over

Capitalism gives entrepreneurs the best opportunity to be successful through three main principles: (1) the right to private property and businesses, which encourages hard work and profit retention; (2) freedom of competition which spurs innovation and improvement; and (3) freedom of economic choice to make business and personal decisions. These rights established by capitalism motivate business creation and economic growth overall.

Uploaded by

Sandriito Joaquín Pacheco Pérez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Thinking It Over

1.- Discuss why many people believe that capitalism gives entrepreneurs the best opportunity to

be successful?

Many people agree that Capitalism is the best economic system, because it offers a prosperous

medium to grow a business. Also, they think it is fair to reward the winners, normally are the

ones that create and innovate. Businesses need the principles of the free market and ownership in

order to have control of their company. The basic rights that capitalism gives you are:

 The right to have your own properties and businesses. This is one of the main point in

favor of capitalism, because it encourages people to work hard, gain and enjoy the profits

it generates without any intervention of the government. The other rights are a cause of

this principal ideal.

 Because of the freedom that Capitalism grants, anybody can create their own business.

Therefore, competition takes place working as a spring for businesses. What competition

creates is an incentive for companies to keep improving and innovating either reducing

the price of the service or product, or developing new technology. All these features

benefit the final consumer.

 With all the profits, you can obtain thanks to your hard work, Capitalism grants the

freedom of choice, you are free to make your own economic and personal decisions.

These rights established by Capitalism encourage people to work and create business that ends

up not only benefiting the entrepreneur but the whole economy around it.

2.- Why do people in developing countries have such a difficult time getting out of poverty?
The main cause for poverty in developing countries is the government and how the legal system

works. Everything starts with a good education, one thing that developing countries doesn’t put

emphasis on. On the contrary these types of countries have other point of view, which is giving

workers some living plans, benefits and financial support. This leads to having more people

without knowledge looking to be workers instead of entrepreneurs. Also, this type of government

instead of encouraging companies with laws, what they do is increase the taxes and only focus

on the workers (making the entrepreneur pay more to workers because the government put new

laws). At the end is not worth for people to become entrepreneurs taking the risks, so they

choose the easy way (most of the time because they do not have the knowledge the choose) as a

worker with the ‘help’ of the government.

Another reason is the lack of technology on the country. Developing countries do not have the

facility to improve the way they work with technology, because they do not create or invent

anything inside the country. The only thing they can do is buy the technology from another

country with high prices.

In addition, it is also very difficult to ask for a loan, because of the laws and high interest you

need to pay and the risks you are taking with your business.

3.- Why would an entrepreneur in the United States need a microloan from Kiva?

Because you can obtain your microloan (certain amount of money) without paying back any kind

of interests. This helps all types of businesses (the ones that are starting, the ones with some

financial debt, etc.) giving them more margin for their profits and keep growing the business.

Another key aspect of Kiva is how it works and the low risks it has. It gives the entrepreneur the

opportunity to get a loan without risking your properties. Also, the time that is takes the loan to
be approved depends on the people of Kiva, usually doesn’t take too much in contrast of some

banks that need to have more information about your economic historial.

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