Industrial Revolution
A set of changes in technology that dramatically increased manufacturing productivity
Assembly Line
Developed by Henry Ford in the early 20th century, a system in which an item is moved from worker to worker with each worker performing the same task repeatedly
Allowed companies to produce more standardized products more rapidly and with less-skilled wor
Fordism
*Henry Ford's system of mass production
*Became standard practice across industries
Substitution Principle
*In which businesses seek to maximize profit by substituting one factor of production for another
*Has been applied to a significant percentage of the labor force
*Through mechanization/automation, companies have replaced workers with machines (e.g. US in
Post-Fordism
*Changes in the mass-production process where workers who don't lose their jobs are often trained to do more than one job, ensuing that they can rotate among a few different workstations during a day
Water Power
*Generating electricity from the movement of water (aka. hydroelectric power)
*The world's second-most-popular source of electricity (after coal)
*Two-thirds of the world's hydroelectric power is generated in developing countries and one-third in develope
Iron Ore
*A metal with properties especially valuable for fashioning machinery, vehicles, and other essential elements of contemporary society
*To varying degrees malleable and ductile and a good conductor of heat and electricity
*Many metals are capable of combin
Primary Sectors
*Include activities that directly extract materials from earth through agriculture and sometimes by mining, fishing, and forestry
*The share of GNI accounted for has decreased in developing countries, but it remains higher than in developed countries
*The
Secondary Sectors
*Include manufacturers that process, transform, and assemble raw materials into useful products, as well as industries that fabricate manufactured goods into finished consumer goods
*The share of GNI accounted for has decreased sharply in developed countr
Tertiary Sectors
*Include the provision of goods and services to people in exchange for payment, such as retailing, banking, law, education, and government
*The share of GNI accounted for is relatively high in developed countries, and is now growing in developing countrie
Quaternary Sectors
*In recent decades, the tertiary sector has gotten so large that economists have begun to divide it into smaller segments
*The knowledge-based sector that includes research and development, business consulting, financial services, education, public admini
Quinary Sectors
In recent decades, the tertiary sector has gotten so large that economists have begun to divide it into smaller segments
In recent decades, the tertiary sector has gotten so large that economists have begun to divide it into smaller segments
*Consists of
Multiplier Effect
*As countries industrialized, the primary sector shrank and the secondary sector grew; as part of this shift, countries became wealthier because wages in the secondary sector were higher than those in the primary sector and had a greater ________ ________
Agglomeration Economies
*The spatial grouping of businesses in order to share costs (e.g. when several factories share the cost of building an access road to connect with a public highway
Isotropic Plain
*Human and physical geographic features are uniform throughout the entire area (pertains to Weber's Least Cost Theory)
Least Cost Theory (Weber)
*Developed in 1909 by German economist Alfred Weber explaining the key decisions made by businesses about where to locate factories
*Attempts to predict the location of a manufacturing site relative to the location of the resources needed to produce the p
Locational Triangle
*One method of showing Weber's least cost model
*The market for a good is at one location and the resources needed to make up the good are obtained at two other locations (these three points make up the points of a triangle)
*Transportation costs are impo
Bulk-reducing Industry
*An industry where companies try to locate processing plants near the source of raw materials
*Copper ore is very heavy, but most of the ore is waste that is discarded in the refining process; hence, transporting copper ore is expensive, but transporting
Bulk-gaining Industry
*An industry where companies try to locate factories near the market
*In soft drinks, the heaviest component of the product is water; since water is widely available, companies try to add it as close to the market as possible, rather than to pay the ship
Energy-oriented/Energy-dependent Industry
*An industry where companies try to locate near sources of power
*In the aluminum industry, raw materials (e.g. minerals) are required, but the energy demands are so high that factories are built in close proximity to major sources of abundant, cheap powe
Labor-oriented/Labor-dependent Industries
*An industry that requires people with very specific skills
*High tech companies want people trained in the computer or engineering fields; consequently, they often locate close to major training institutions, such as colleges or universities
Locational Interdependence
*A condition where the location decision for a factory is dependent on the location of other factories
*Being near similar factories allows the businesses to make use of the same services, such as transportation firms or accounting firms that might specia
Footloose
*A business that can pack up and leave for a new location quickly and easily
*If a service is an informational type of service (such as a call center) there is far greater flexibility in locational requirements; an office can set up anywhere with good com
Front Offices
*Sometimes companies have different locational needs for different parts of the business.
*A corporation might want its main office for its top executives to have a high profile to signal its power. So the company might choose a location on the upper floo
Back Offices
*Sometimes companies have different locational needs for different parts of the business.
*A corporation might decide that the rest of its employees do not need to be in high-profile locations.
*They could be located in much cheaper office spaces.
*Since
Offshoring
*Some companies move their back offices to other countries.
*Companies will locate services in other countries if the cost of doing business are lower and worth the risk of moving some operations overseas.
*Many software and manufacturing companies in the
Outsourcing
*In order to lower costs or just focus on their core business, many companies outsource a variety of business functions.
*Contracting work out to noncompany employees or other companies.
*The contracting company might be less expensive because it speciali
Agglomeration
*The spatial grouping of businesses in order to share costs, as when several factories share the cost of building an access road to connect with a public highway
Fertility Rates
*Births per 1000 women, categorized according to a specific composition of mothers in the population
*Adolescent Fertility Rate: the number of births per 1,000 women ages 15 to 19
-19/1,000 women in developed countries
-53/1,000 women in developing countr
Infant Mortality Rates (IMR)
*The total number of deaths in a year among infants under 1 year of age for every 1,000 live births in a society
*Reflects a country's health-care system
*Lower IMRs are found in countries with well-trained doctors and nurses, modern hospitals, and large
Access to Healthcare
*People are healthier in developed countries than in developing ones
*When people in developed countries get sick, these countries possess the resources to care for them
*Developed countries use part of their wealth to protect people who, for various reas
Literacy Rates
*The percentage of a country's people who can read and write
*Nearly 100 percent in developed countries
*Lowest rates in sub-Saharan Africa and South Asia
Gender Inequality (GII)
*According to this Index, there is no country in the world where women are treated as well as men
*At best, women have achieved near-equality with men in some countries, but in other countries, the level of development for women lags far behind the level
Stages of Economic Modernization Growth Model" (Rostow)
*According to the International Trade Model, each country is in one of these five stages of development:
1. Traditional Society: has not yet started a process of development; contains a very high percentage of people engaged in agriculture and a high perc
World Systems Theory" (Wallerstein)
*The relationship between developed countries and developing countries is often described as a north-south split because most of the developed countries are north of the equator, whereas many developing countries are south
*Wallerstein describes the relat
Dependency Model
*Countries do not exist in isolation but are part of an intertwined world system in which all countries are dependent on each other
UN Millennium Development Goals
1. Eradicate extreme poverty and hunger
2. Achieve universal primary education
3. Promote gender equality and empower women
4. Reduce child mortality
5. Improve maternal health
6. Combat HIV/AIDS, malaria, and other diseases
7. Ensure environmental sustai
Core-Periphery Model
*Wallerstein's theory regarding the three types of countries: core, semi-periphery, and periphery
Core
*Includes the economically advantaged area of the world and the center of world businesses and finances
*Headquarters of most large multinational companies
*Focuses on higher skill, capital-intensive production
*Promotes capital accumulation
*Dominates pe
Periphery
*Includes the least-developed countries
*Has a high percentage of jobs in low-skill, labor-intensive production and extraction of raw materials
*Provides the core and semi-periphery with inexpensive raw materials, labor, and agricultural production
*Recei
Semi-Periphery
*Includes the middle-income countries
*Sometimes known as the emerging economies
*Provides the core with manufactured goods and services that the core once provided for itself, but no longer does
*India, Mexico, South Africa, Brazil, China
Sustainable Development
*Any economic development that serves the current needs of people without making it harder for people in the future to live as well
*A modern problem; with mass consumption and increased population density, people place greater burdens on the environment
Trading Blocs
*Because of the increasing importance of trade, countries have strengthened their relationships with their most important trading partners
*Groups of countries that agree to a common set of trade rules (e.g. NAFTA, EU)
*Encourage and ease trade restrictio
Transnational Corporations
*Companies that operate in more than one country
*Have shifted manufacturing jobs away from the highly developed countries to the less-developed countries in order to increase profits
*Corporations' desire to pay lower wages - and a recognition that firms
Microloans
*Programs that provide small loans to start or expand a business to entrepreneurs who would not normally qualify for credit from traditional sources
*Particularly active in South Asia and South America
*The vast majority of the entrepreneurs taking advant
Comparative Advantage
*The ability of a country to produce a good at a lower cost than another country can
*Parties tend to trade goods or services in which each has a comparative advantage in producting
Complementarity
*When both trading parties have goods or services that the other party desires
*Doesn't always exist; trade is heavily weighted in one direction
International Trade Unions
*The ITUC's primary mission is the promotion and defence of workers' rights and interests, through international cooperation between trade unions, global campaigning and advocacy within the major global institutions.
*Its main areas of activity include th
Interdependence
*A relationship between countries in which they rely on one another for resources, goods, or services
*Increased interdependency links the economies of countries, for both better and worse
*Growth in one country can result in new economic opportunities in
Newly Industrialized Countries (NICs)
*One aspect of globalization has been that companies have moved industrial production from highly developed countries to developing countries
New International Division of Labor
*A system of employment in the various economic sectors spread throughout the world
*Core countries such as the US and Germany have rapidly increasing quaternary sectors that emphasize research and development
*Middle income counties such as China, Mexico
Export Processing Zone (EPZ_
*Many governments in the developing world offer incentives to attract manufacturing jobs
*Physical spaces within a country where special regulations benefit foreign-controlled businesses
(Maquiladora, free zone, special economic zone)
*Often situated near
Deindustrialization
*Decline in industrial activity in a region or economy
*The stereotyped image of a postindustrial landscape is one of deteriorating buildings surrounded by weeds and marked by broken or boarded-up windows and rusting metal
*Because of the rusting metal, t
Mauqiladores
*Many governments in the developing world offer incentives to attract manufacturing jobs
*Physical spaces within a country where special regulations benefit foreign-controlled businesses
(Export processing zone, free zone, special economic zone)
*Often si
Special Economic Zones
*Zones designed to attract foreign companies and investment to areas of China
Free Trade Zones
*A region where a group of countries has agreed to reduce or eliminate trade barriers
Growth Poles/Growth Centers
*Another name for a technopole
*A hub for information-based industry and high-tech manufacturing
*Allows for benefits such as the possible sharing of certain services and attracting highly skilled workers to the area
*Often located near universities well
Spin-off Benefits
*Positive outcomes in addition to the main outcome
*Can help communities far beyond the growth pole itself
(E.g. commercial farmers)
Backwash Effects
*The possible downsides of growth pole (e.g. the loss of the highly educated young people from distant commutes as they migrate to the growth pole for employment)
Silicon Valley
*A region where new companies sprang up to make products using integrated circuits
*A prime example of a technopole
Mass Consumption
*Spends money on nonessential goods (consumerism)
*Purchases of higher order goods become common
*Desires to create an egalitarian society
*Supports a strong tertiary sector
Ecotourism
*An effort to promote sustainable development
*Tourism that attempts to protect local ecosystems and to educate visitors about them
Per Capita
*Per person
GNP per Capita
*The amount of products made in a country in a year (including products that leave and enter the country), divided by its population
GDP per Capita
*The value of the total output of goods and services produced in a country in a year, not accounting for money that leaves and enters the country
GNI per Capita
*The value of the output of goods and services produced in a country in a year, including money that leaves and enters the country
Purchasing Power Parity (PPP)
*The amount of money needed in one country to purchase the same goods and services in another country
Gini Coefficient/Gini Index
*Measures the distribution of income within a population
*The values range between 0 and 1
*A 0 would mean that everyone's income was the same
*The higher the number, the higher the degree of income inequality
*In general, developing counties have the big
Gender Gap
*Differences in the privileges afforded to males and females in a culture
*Might appear in educational opportunities, employment, wages, voting rights, health care, political empowerment, property rights, the ability to drive a care, inheritance rights, o
HDI
*An indicator constructed by the UN to measure the level of development for a country through a combination of income, education, and life expectancy
*The highest possible is 1
*Decent standard of living, long and healthy life, access to knowledge
NGO's
*Groups not affiliated with any government
*International non-profit agencies
*Have helped women find jobs outside the home
Microcredit/Microfinance
*Programs that provide small loans to start or expand a business to entrepreneurs who would not normally qualify for credit from traditional sources
*Particularly active in South Asia and South America
*The vast majority of the entrepreneurs taking advant
Industrial Revolution
A set of changes in technology that dramatically increased manufacturing productivity
Assembly Line
Developed by Henry Ford in the early 20th century, a system in which an item is moved from worker to worker with each worker performing the same task repeatedly
Allowed companies to produce more standardized products more rapidly and with less-skilled wor
Fordism
*Henry Ford's system of mass production
*Became standard practice across industries
Substitution Principle
*In which businesses seek to maximize profit by substituting one factor of production for another
*Has been applied to a significant percentage of the labor force
*Through mechanization/automation, companies have replaced workers with machines (e.g. US in
Post-Fordism
*Changes in the mass-production process where workers who don't lose their jobs are often trained to do more than one job, ensuing that they can rotate among a few different workstations during a day
Water Power
*Generating electricity from the movement of water (aka. hydroelectric power)
*The world's second-most-popular source of electricity (after coal)
*Two-thirds of the world's hydroelectric power is generated in developing countries and one-third in develope
Iron Ore
*A metal with properties especially valuable for fashioning machinery, vehicles, and other essential elements of contemporary society
*To varying degrees malleable and ductile and a good conductor of heat and electricity
*Many metals are capable of combin
Primary Sectors
*Include activities that directly extract materials from earth through agriculture and sometimes by mining, fishing, and forestry
*The share of GNI accounted for has decreased in developing countries, but it remains higher than in developed countries
*The
Secondary Sectors
*Include manufacturers that process, transform, and assemble raw materials into useful products, as well as industries that fabricate manufactured goods into finished consumer goods
*The share of GNI accounted for has decreased sharply in developed countr
Tertiary Sectors
*Include the provision of goods and services to people in exchange for payment, such as retailing, banking, law, education, and government
*The share of GNI accounted for is relatively high in developed countries, and is now growing in developing countrie
Quaternary Sectors
*In recent decades, the tertiary sector has gotten so large that economists have begun to divide it into smaller segments
*The knowledge-based sector that includes research and development, business consulting, financial services, education, public admini
Quinary Sectors
In recent decades, the tertiary sector has gotten so large that economists have begun to divide it into smaller segments
In recent decades, the tertiary sector has gotten so large that economists have begun to divide it into smaller segments
*Consists of
Multiplier Effect
*As countries industrialized, the primary sector shrank and the secondary sector grew; as part of this shift, countries became wealthier because wages in the secondary sector were higher than those in the primary sector and had a greater ________ ________
Agglomeration Economies
*The spatial grouping of businesses in order to share costs (e.g. when several factories share the cost of building an access road to connect with a public highway
Isotropic Plain
*Human and physical geographic features are uniform throughout the entire area (pertains to Weber's Least Cost Theory)
Least Cost Theory (Weber)
*Developed in 1909 by German economist Alfred Weber explaining the key decisions made by businesses about where to locate factories
*Attempts to predict the location of a manufacturing site relative to the location of the resources needed to produce the p
Locational Triangle
*One method of showing Weber's least cost model
*The market for a good is at one location and the resources needed to make up the good are obtained at two other locations (these three points make up the points of a triangle)
*Transportation costs are impo
Bulk-reducing Industry
*An industry where companies try to locate processing plants near the source of raw materials
*Copper ore is very heavy, but most of the ore is waste that is discarded in the refining process; hence, transporting copper ore is expensive, but transporting
Bulk-gaining Industry
*An industry where companies try to locate factories near the market
*In soft drinks, the heaviest component of the product is water; since water is widely available, companies try to add it as close to the market as possible, rather than to pay the ship
Energy-oriented/Energy-dependent Industry
*An industry where companies try to locate near sources of power
*In the aluminum industry, raw materials (e.g. minerals) are required, but the energy demands are so high that factories are built in close proximity to major sources of abundant, cheap powe
Labor-oriented/Labor-dependent Industries
*An industry that requires people with very specific skills
*High tech companies want people trained in the computer or engineering fields; consequently, they often locate close to major training institutions, such as colleges or universities
Locational Interdependence
*A condition where the location decision for a factory is dependent on the location of other factories
*Being near similar factories allows the businesses to make use of the same services, such as transportation firms or accounting firms that might specia
Footloose
*A business that can pack up and leave for a new location quickly and easily
*If a service is an informational type of service (such as a call center) there is far greater flexibility in locational requirements; an office can set up anywhere with good com
Front Offices
*Sometimes companies have different locational needs for different parts of the business.
*A corporation might want its main office for its top executives to have a high profile to signal its power. So the company might choose a location on the upper floo
Back Offices
*Sometimes companies have different locational needs for different parts of the business.
*A corporation might decide that the rest of its employees do not need to be in high-profile locations.
*They could be located in much cheaper office spaces.
*Since
Offshoring
*Some companies move their back offices to other countries.
*Companies will locate services in other countries if the cost of doing business are lower and worth the risk of moving some operations overseas.
*Many software and manufacturing companies in the
Outsourcing
*In order to lower costs or just focus on their core business, many companies outsource a variety of business functions.
*Contracting work out to noncompany employees or other companies.
*The contracting company might be less expensive because it speciali
Agglomeration
*The spatial grouping of businesses in order to share costs, as when several factories share the cost of building an access road to connect with a public highway
Fertility Rates
*Births per 1000 women, categorized according to a specific composition of mothers in the population
*Adolescent Fertility Rate: the number of births per 1,000 women ages 15 to 19
-19/1,000 women in developed countries
-53/1,000 women in developing countr
Infant Mortality Rates (IMR)
*The total number of deaths in a year among infants under 1 year of age for every 1,000 live births in a society
*Reflects a country's health-care system
*Lower IMRs are found in countries with well-trained doctors and nurses, modern hospitals, and large
Access to Healthcare
*People are healthier in developed countries than in developing ones
*When people in developed countries get sick, these countries possess the resources to care for them
*Developed countries use part of their wealth to protect people who, for various reas
Literacy Rates
*The percentage of a country's people who can read and write
*Nearly 100 percent in developed countries
*Lowest rates in sub-Saharan Africa and South Asia
Gender Inequality (GII)
*According to this Index, there is no country in the world where women are treated as well as men
*At best, women have achieved near-equality with men in some countries, but in other countries, the level of development for women lags far behind the level
Stages of Economic Modernization Growth Model" (Rostow)
*According to the International Trade Model, each country is in one of these five stages of development:
1. Traditional Society: has not yet started a process of development; contains a very high percentage of people engaged in agriculture and a high perc
World Systems Theory" (Wallerstein)
*The relationship between developed countries and developing countries is often described as a north-south split because most of the developed countries are north of the equator, whereas many developing countries are south
*Wallerstein describes the relat
Dependency Model
*Countries do not exist in isolation but are part of an intertwined world system in which all countries are dependent on each other
UN Millennium Development Goals
1. Eradicate extreme poverty and hunger
2. Achieve universal primary education
3. Promote gender equality and empower women
4. Reduce child mortality
5. Improve maternal health
6. Combat HIV/AIDS, malaria, and other diseases
7. Ensure environmental sustai
Core-Periphery Model
*Wallerstein's theory regarding the three types of countries: core, semi-periphery, and periphery
Core
*Includes the economically advantaged area of the world and the center of world businesses and finances
*Headquarters of most large multinational companies
*Focuses on higher skill, capital-intensive production
*Promotes capital accumulation
*Dominates pe
Periphery
*Includes the least-developed countries
*Has a high percentage of jobs in low-skill, labor-intensive production and extraction of raw materials
*Provides the core and semi-periphery with inexpensive raw materials, labor, and agricultural production
*Recei
Semi-Periphery
*Includes the middle-income countries
*Sometimes known as the emerging economies
*Provides the core with manufactured goods and services that the core once provided for itself, but no longer does
*India, Mexico, South Africa, Brazil, China
Sustainable Development
*Any economic development that serves the current needs of people without making it harder for people in the future to live as well
*A modern problem; with mass consumption and increased population density, people place greater burdens on the environment
Trading Blocs
*Because of the increasing importance of trade, countries have strengthened their relationships with their most important trading partners
*Groups of countries that agree to a common set of trade rules (e.g. NAFTA, EU)
*Encourage and ease trade restrictio
Transnational Corporations
*Companies that operate in more than one country
*Have shifted manufacturing jobs away from the highly developed countries to the less-developed countries in order to increase profits
*Corporations' desire to pay lower wages - and a recognition that firms
Microloans
*Programs that provide small loans to start or expand a business to entrepreneurs who would not normally qualify for credit from traditional sources
*Particularly active in South Asia and South America
*The vast majority of the entrepreneurs taking advant
Comparative Advantage
*The ability of a country to produce a good at a lower cost than another country can
*Parties tend to trade goods or services in which each has a comparative advantage in producting
Complementarity
*When both trading parties have goods or services that the other party desires
*Doesn't always exist; trade is heavily weighted in one direction
International Trade Unions
*The ITUC's primary mission is the promotion and defence of workers' rights and interests, through international cooperation between trade unions, global campaigning and advocacy within the major global institutions.
*Its main areas of activity include th
Interdependence
*A relationship between countries in which they rely on one another for resources, goods, or services
*Increased interdependency links the economies of countries, for both better and worse
*Growth in one country can result in new economic opportunities in
Newly Industrialized Countries (NICs)
*One aspect of globalization has been that companies have moved industrial production from highly developed countries to developing countries
New International Division of Labor
*A system of employment in the various economic sectors spread throughout the world
*Core countries such as the US and Germany have rapidly increasing quaternary sectors that emphasize research and development
*Middle income counties such as China, Mexico
Export Processing Zone (EPZ_
*Many governments in the developing world offer incentives to attract manufacturing jobs
*Physical spaces within a country where special regulations benefit foreign-controlled businesses
(Maquiladora, free zone, special economic zone)
*Often situated near
Deindustrialization
*Decline in industrial activity in a region or economy
*The stereotyped image of a postindustrial landscape is one of deteriorating buildings surrounded by weeds and marked by broken or boarded-up windows and rusting metal
*Because of the rusting metal, t
Mauqiladores
*Many governments in the developing world offer incentives to attract manufacturing jobs
*Physical spaces within a country where special regulations benefit foreign-controlled businesses
(Export processing zone, free zone, special economic zone)
*Often si
Special Economic Zones
*Zones designed to attract foreign companies and investment to areas of China
Free Trade Zones
*A region where a group of countries has agreed to reduce or eliminate trade barriers
Growth Poles/Growth Centers
*Another name for a technopole
*A hub for information-based industry and high-tech manufacturing
*Allows for benefits such as the possible sharing of certain services and attracting highly skilled workers to the area
*Often located near universities well
Spin-off Benefits
*Positive outcomes in addition to the main outcome
*Can help communities far beyond the growth pole itself
(E.g. commercial farmers)
Backwash Effects
*The possible downsides of growth pole (e.g. the loss of the highly educated young people from distant commutes as they migrate to the growth pole for employment)
Silicon Valley
*A region where new companies sprang up to make products using integrated circuits
*A prime example of a technopole
Mass Consumption
*Spends money on nonessential goods (consumerism)
*Purchases of higher order goods become common
*Desires to create an egalitarian society
*Supports a strong tertiary sector
Ecotourism
*An effort to promote sustainable development
*Tourism that attempts to protect local ecosystems and to educate visitors about them
Per Capita
*Per person
GNP per Capita
*The amount of products made in a country in a year (including products that leave and enter the country), divided by its population
GDP per Capita
*The value of the total output of goods and services produced in a country in a year, not accounting for money that leaves and enters the country
GNI per Capita
*The value of the output of goods and services produced in a country in a year, including money that leaves and enters the country
Purchasing Power Parity (PPP)
*The amount of money needed in one country to purchase the same goods and services in another country
Gini Coefficient/Gini Index
*Measures the distribution of income within a population
*The values range between 0 and 1
*A 0 would mean that everyone's income was the same
*The higher the number, the higher the degree of income inequality
*In general, developing counties have the big
Gender Gap
*Differences in the privileges afforded to males and females in a culture
*Might appear in educational opportunities, employment, wages, voting rights, health care, political empowerment, property rights, the ability to drive a care, inheritance rights, o
HDI
*An indicator constructed by the UN to measure the level of development for a country through a combination of income, education, and life expectancy
*The highest possible is 1
*Decent standard of living, long and healthy life, access to knowledge
NGO's
*Groups not affiliated with any government
*International non-profit agencies
*Have helped women find jobs outside the home
Microcredit/Microfinance
*Programs that provide small loans to start or expand a business to entrepreneurs who would not normally qualify for credit from traditional sources
*Particularly active in South Asia and South America
*The vast majority of the entrepreneurs taking advant