Production (continued): Capital Accumulation and Entrepreneurship – S5 Economics Notes

These Senior Five Economics notes continue the topic of production and cover two factors of production. The first part defines capital accumulation, along with capital appreciation, depreciation and the capital consumption allowance. It explains eighteen factors that affect capital formation, such as income, savings, inflation, interest rates, political stability, land tenure and time preference, and then lists measures to encourage it. The second part defines entrepreneurship and the entrepreneur, names the types of entrepreneurs and describes what an entrepreneur does. It also explains what affects the supply of entrepreneurs and lists factors and policies that help or hold back the growth of entrepreneurship in an economy.