ENTREPRENEURIAL

MANAGEMENT
MODULE 1
Perspective of Entrepreneurship
Introduction
The concept of entrepreneurship was first established in the 1700s and the meaning
evolved ever since.
In the 20th century economist Joseph Schumpeter (1883-1950) focused on how the
entrepreneur’s drive for innovation and improvement creates upheaval and change. He viewed
entrepreneurship as a force of “creative destruction” The entrepreneurs carry out “creative
destruction” or making a “new combination” therefore helping render “old ways” obsolete.
Business expert Peter Drucker (1909-2005) took this idea further, describing the
entrepreneur as someone who actually searches for change, responds to it and exploits change
as an opportunity.

Learning Outcomes:
 Cite example and discuss how entrepreneurship promotes a nation’s economic health.

Learning Objectives:
By the end of this module, students will have completed the following objectives:
1. be acquainted with entrepreneurship and economic development
2. describe entrepreneur’s tasks
3. appreciate the importance of entrepreneurs
4. identify the rewards for successful entrepreneurship and its corresponding predicament
Content Exploration:
A. Entrepreneurship and Economic Development
Economic development is a scheme aimed at improving the living standards of the
nation’s citizenry. To achieve economic development goals, proper management of the
following elements is necessary:
1. Human resources ( labor supply, education, discipline, motivation)
2. Natural resources ( land, minerals, fuel, climate)
3. Capital formation (machines, factories, roads) and
4. Technology (science, engineering, management, entrepreneurship)

What is Entrepreneurship?
Entrepreneurship is the “process of creating or seizing an opportunity, and pursuing it
regardless of the resources currently controlled.” This definition is propounded by Howard H.
Stevenson, a professor of Business Administration at Harvard School.
Four tenets on entrepreneurship (Professor Stevenson)
1. Entrepreneurship flourishes in communities where resources are mobile.
2. Entrepreneurship is greater when successful members of a community reinvest excess
capital in the projects of other community members.
3. Entrepreneurship flourishes in communities in which success of other community members
is celebrated rather than derided.
4. Entrepreneurship is greater in communities that see change as positive rather than
negative.
One of Stevenson’s tenets of teaching entrepreneurship is to convey to students that
entrepreneurship is an “opportunity-focused orientation” to general management, one which is
applicable in many situations regardless of career aspirations. According to is philosophy,
students can learn that “controlling your own life is something an entrepreneur does.” He
believes that students need to be exposed to an entrepreneur-friendly culture and positive
entrepreneurial role models.
Finally, entrepreneurship is like having children: it requires a moment of enthusiasm,
followed by, decades of hard work, in order to be successful.

Three simple attitudes Prof Stevenson teaches:

a. every situation can be improved;
b. you can make a difference, no matter how minimal your power or your current resources
c. experts and experience may be wrong

Entrepreneurship refers to the economic activity of a person who starts, manages, and
assumes the risk of a business enterprise.
Activity 1.
Below are some of the few definitions of entrepreneurship. Place a check mark in front of
the definition that comes closest to your own meaning of entrepreneurship.
_____ 1. “An economic term describing the process of bearing the risk of buying at certain
prices and selling at uncertain prices.
_____ 2. “The concept of bringing together the factors of production”
_____ 3. “A process involving innovation: bringing market innovation, product innovation, factor
innovation, and even organizational innovation to the world of business”
_____ 4. The action of organizing a business venture and assuming the risk for it.”
_____ 5. “The assumption of risk and responsibility of designing and implementing a business
strategy or starting a business.”

What is an Entrepreneur?
The businessdictionary.com defines Entrepreneur as someone who exercises initiative
by organizing a venture to take benefit of an opportunity and, as the decision maker decides
what, how, and how much of a good or service will be produced. They are commonly seen as a
business leader and innovator of new ideas and business processes.
An entrepreneur is not necessarily motivated by profit but possesses a deep passion
that drives them to overcome all the difficulties and challenges when running the business

The Business News Daily interviewed company founders and business leaders who they
think makes a true entrepreneur.
No. 1: “ I love being an entrepreneur because I am able to set my own schedule around my
family life. Being a busy mom of two, I have the flexibility of schedule clients around my
children’s sports, school schedules and doctor appointments. “ CEO and counseling
psychologist, Little Hands Family Service

No. 2: “ The best part of being an entrepreneur is the ability to create something from
nothing. I get to bring new programs and ideas to my clients and to hard-working professionals
every day. “ - Kristi Daniels, founder, Thrive 9-5

No. 3: “ I love owning my own business because there is always something that I can do to
improve.
Whether writing a new blog post, scheduling social media, or reaching out to a new
organizations, there is always something to keep me busy. “ -Claire Coder, founder and CEO,
Aunt Flow

No. 4: “Nothing pushes me to work harder and smarter than the responsibility of having my
name on the door. Running a business and being responsible for other people’ well-being and
income – gives me the motivation and discipline to be hardest- working version of
myself.” Natalie Zfat, social media influence, and co-founder, The Social Co.

No. 5: “I think being an entrepreneur is great because the possibilities are endless. You can
be a creative and innovative as you want to be and the results are the most rewarding.” –
Annelie Velasco, owner, Fred Asstaire Dance Studio.

No. 6: “Being an entrepreneur allows me to create my own definition of success. I do sit at a

desk for a specific period of time, turn in X number of projects and hit specific goals, or make it
into the President’s club to be successful.” Danielle Tate, CEO, MissNowMrs.com

No. 7: “ The best of being an entrepreneur is contributing something larger than yourself.
Entrepreneurs solve problems and bring a product or service to the world that people need.
Sure you have the opportunity to get paid well, but giving livelihood to others and crafting the
world you want to see is way more fulfilling.” Matt Wilson, co-founder, Under 30 Experiences

No. 8: “My business is almost 100% online, so I also have the freedom to live in other
countries as I work. It allows me to expand my mind, learn new languages, and experience the
world in a way few others do.” Jill Loffler, owner, DreamExploreInspire.com

No. 9: Being an entrepreneur has allowed me to create a career that didn’t even exist before
I made it up.” – Lisa Spector, co-founder, Through a Dog’s Ear

No. 10: “It’s extremely rewarding to mentor and train new hires and then witness their
development and growth to become leaders in the company.”- Jordan Wan, founder and
CEO, CloserIQ
No. 11: “ I view entrepreneurship as a laboratory and my business ideas as the ingredients. I
have the freedom to use my ingredients as I wish as long as everything goes well” – Neerav
Metha, co-founder, and CEO, Red Crackle

No. 12: “I get to wear t-shirts and bring my dog to the office, But actually, being and
entrepreneur is great because I don’t have to deal with any of the unnecessary rules.
Restrictions, and bureaucracy of a large company. I just get to work on creating a company I
love.” – Ryan Farley, co-founder, Lawnstarter

There are many reasons why people choose to become an entrepreneur. Maybe a
person is not happy with his current job and sees no opportunity for career growth. Sometimes
the “culture” of the workplace does not fit into his own personal beliefs. Some people do not
want to be around in an environment of routine tasks.
There are people who see entrepreneurship as a reply to meet their interest and skills.
These include becoming the boss of their own company and running all aspect of business
operations.
Based on the readings above, write down your top 5 favorite reasons that you think
leads a person to start his own business. If you think you have a very good reason other than
what were given you may also write it.
Ran Reasons for becoming an entrepreneur
k
1.
2.
3.
4.
5.

Characteristics of an Entrepreneur.
1. High energy created people
2. Self-confident
3. Have a high level of self-esteem
4. Futuristic in their outlook
5. Risk takers
6. Learn from failures (theirs and others)
7. Thrive on change
8. Have natural predisposition to show initiative
9. Willingly accept personal responsibility for projects
10. Harness all available resources within their scope in order to achieve success on their
own terms
11. The entrepreneur identifies an economic need, considers offering a business solution,
proceeds to assemble the resources required, and assumes the risk by either
succeeding or failing.

Entrepreneurs Concern Problem at Hand Entrepreneurs Action

1. Identifying an 1. High income families 1. Establish a high
economic need are not satisfied with standard school for
the services provided high school students
 by high schools in the
area
2. Assembling 2. Resources must be 2. Acquire funds, hire
resources required made available people, construct
buildings etc.
3. Assuming risk 3. Venture must be 3. Prepare project
made study, advertise,
maintain good
relationship with
employees and
customers, among
others

The Importance of Entrepreneurship

Entrepreneurship has been found to be a vital part of the economy according to study 10
countries were analyzed to measure the activity of entrepreneurs and the effect they were
having on economy. Countries ranking high in entrepreneurial activity had high growth rates
than countries with lower entrepreneurial activity. One-third of this difference could be traced
directly back to entrepreneurs.
The most important reason why entrepreneurs help the economy is due to the creation
of new jobs. It has been estimated that entrepreneurs have created 34 million new jobs since
1980. Seventy percent of new start-ups were found to already employ at least one person and
8o percent planned to hire within the next year. This data provides significant evidence that
entrepreneurism leads to new jobs.
Another way that entrepreneur helps economy is by innovation, research, and
development. According to study, two-thirds of all invention come from entrepreneurs. New
inventions can improve the economy because they can provide better ways of doing tasks, and
can also lead to new business.
Entrepreneurism also helps the economy by creating wealth for many individuals
seeking business opportunities. Although this is not the number one reason, individuals pursue
entrepreneur activities, it plays a major role in our economy. Both a new business and the
wealth the owner can obtain will help boost the economy by providing new products as well
as the spending power created for the entrepreneur.

Entrepreneur’s Task
1. Provide products and services for customers and producers.
2. Employment
3. Taxes
4. Demand for suppliers’ products and services
5. Training facilities for future entrepreneurs

Learning Activity:
Answer this question
1. What are some of the ways entrepreneurship promotes a nation’s economic health?

Case Study: Dang Restaurant: What Now My Love?

 On any given day, Danielle’s Restaurant is full of customers. It is not surprising because
of two factors: first, its location in the center of the commercial district of Odiongan and second,
the dynamism of its owner and manager, Ms. Danielle De Vera. She is more than happy
because she was able to realize her dream of becoming successful in the food business. She
now owns a building and the lot she used to rent. Served in its large air-conditioned function hall
are native and Korean delicacies. The place has ample parking space for 20 cars.
It was in the restaurant where she first met her future husband. He is a government
employee and is assigned to work in a nearby town. Danielle’s husband is a native of San Jose
and his widowed mother is operating a big rice trading firm. Aside from owning 5 cargo trucks,
his mother also own one and a half hectares of commercial land in the town business district.
Just as Danielle was considering, opening a branch of her restaurant in Romblon, her
mother-in-law died. Two weeks later, her husband informed her that being the heir, he need to
move quickly to Romblon and manage his mother’s business and other properties
Even if her husband operates her mother’s business, Danielle could still continue
managing her restaurant. Both of them, however, are aware of the difficulty of maintaining the
two business which are four hours away by car and boat from each other. They will miss each
other for days every week if they decide to keep both businesses. Her husband is indifferent,
however, on whatever Danielle’s decision will be.
Danielle is now mulling over her family’s chances in succeeding in business if she
decides on maintaining only the rice trading firm. Her decision-making is made more
complicated when her assistant reported a 49% increase in last year’s profits of her restaurant.

Guide Questions
1. Should Danielle stop operating her restaurant?
2. If you were Danielle, what additional information would you need before making a
decision