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ENTREPRENEURSHIP AND VALUE CREATION

Entrepreneurial Traits
Entrepreneurs Have an Empowering Perspective of Failure
EXAMPLE: The traditional school system trains children to close their books and not ask for help when
taking exams. Assessments are usually labeled as either pass or fail. Along the way, old-fashioned
teachers also train students to believe that failure is bad. In reality, failure is simply feedback. Failure is
the way people learn and grow. For most people, failure is not a correction but a rejection.
Never take failure personally. Remember:
Failure is something a person does – it's not something s/he is. Failure is the opportunity to begin again
Failure is a believe
in a new and better way. Successful entrepreneurs verb, notfailure
a is inevitable and educational (Smith,
2012).

Failure is feedback from the real world, and one of the first benefits a person can gain from it is
the knowledge that he took action. He created a result. He made an impact on the world.
Positive or negative, he made a difference through his actions and created an experience he
Entrepreneurs must seek and find the answers they need. It does no good to stay angry and blame
others for a failure after it happened. Entrepreneurs must learn to detach from blame. Entrepreneurs
must stay strong and choose to get stronger during the failures of life (Smith, 2012).
Entrepreneurs Know a Little About a Lot
EXAMPLE: Smith once heard a story about a CEO having a meeting with an external visitor. During the
meeting, an employee burst in and said, "We’ve got a problem. We’ve got to handle this right now!” The
CEO calmly looked at the employee and said, “Remember rule number five (5).” The employee thought
for a second, smiled, relaxed, and said, “Right – rule number five (5). Thank you,” and then turned and
walked out of the room. The CEO resumed his conversation, and within minutes another employee
came running in and said: “Something has just come up that requires your immediate attention.” Once
again, the CEO calmly looked at the employee and said, “Remember rule number five (5).” The
employee visibly relaxed and said, “Oh yeah – rule number five (5). Sorry, I forgot.” Then he smiled and
walked out of the room.
The visitor is confused and surprised because he hasn’t seen anything like this before. When he asked
the CEO what rule number fiveRule (5) number
was, thefive
CEO(5):smiled
Don’t and
takesaid, “Rule
yourself so number five (5) is “Don’t take
yourself so seriously.” The visitor asked, “How many rules are there?” The CEO smiled even bigger and
said, “Just one.”
The moral of the story is that things are rarely as serious as they may first appear. While inexperienced
entrepreneurs may run around trying to put out fires, a more seasoned entrepreneur will let many fires
burn themselves out. Why? Because entrepreneurs know a little about a lot, this broader, more
generalized view allows them to see what’s truly important and keep things in a more balanced
perspective (Smith, 2012).

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Entrepreneurs Give and Receive Praise Correction

EXAMPLE: A karate teacher uses a powerful tool to get the best from his students and himself. It’s called
“PCP,” which stands for Praise, Correct, and Praise. Rather than criticizing or correcting errors
immediately, when the instructor spots a mistake during a student’s training, he uses the PCP strategy
to get better results, first praising or complimenting the student on what he did right, then correcting
the mistake, and then praising the improvement. For instance, if a child halfheartedly kicks his leg
instead of kicking with force, the instructor might say, “Great, excellent, you got your leg moving in the
right direction. Now let’s do it with more strength.” When the child kicks harder, the instructor gives him
a high five and says, “That’s it, good job!” Praise, then correct, then praise again.
Praise is like sugar; correction is like medicine. Adults enjoy being praised just as much as children, and
praising people is a key secret toA success
spoonful(Smith, 2012).
of sugar helps the medicine go
down.
Entrepreneurs Fly with Eagles
EXAMPLE: Ken Krogue, a writer at Forbes, had his friend, Troy Fullmer, experience a slight inconvenience
during their meal together. He asked the waitress for a little change in how his meal was prepared, and
the waitress responded with, “Oh, we can’t do that, I’m sorry.” Troy replied, “Can I talk to your
manager?” The manager came out, and Troy immediately received the slight change he requested. It
was possible.
Just like eagles, entrepreneurs are before
People fearlesstheand, thus,Customers
process. very results-oriented.
before Also, they are always
prepared for change. Just like what the manager policy.
had done, he put Troy’s comfort first, knowing that his
concern was a form of constructive feedback rather than a harsh criticism of their management.
Entrepreneurs nurture their teams. Eagles build nests and hunt for their eaglets. While eagles push their
eaglets on the cliff's edge, the father eagle catches them until they start flapping their wings. The
manager showed the waitress how to properly handle the situation so that by the next time it happens,
the waitress will know what to do.
Entrepreneurs Look into The Future
Few people understand the power of vision. Vision makes things happen; good health does not just
happen without a vision to make it happen; financial freedom does not just happen without a vision to
make it happen. Vision attracts power. It’s what attracts wisdom.
Great entrepreneurs use vision to create a balanced approach to productivity. People balance their time
by planning for the future and taking action in the present. Most entrepreneurs spend very little time
looking into the past. It does not mean hindsight is unimportant–it can be used to develop good
foresight (Smith, 2012).

While it is important to value hindsight, don’t let it limit your

foresight.

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Entrepreneurs that Changed the World

The following are the entrepreneurs who changed the world:
 Tony Tan Caktiong (Jollibee)
Caktiong was not intimidated when McDonald’s had its first outlet in the Philippines, mainly because
the foreign fast-food chain did not know the local food culture. Filipinos have a sweet taste in food,
and they like to smell everything they eat. Jollibee Foods Corporation (JFC) started establishing
franchises outside the Philippines: Hong Kong, the Middle East, the USA, Italy, Canada, etc. These
enabled millions of Filipino overseas workers to get a taste of their home in other countries.
 Angeline Tham (Angkas Ride Sharing App)
Angkas app is one of the top transportation choices for people living in cities across the Philippines
and has already been downloaded more than 1.5 million times. Angkas has a 99.99-plus percent
safety record, and Tham is working towards offering free training for 14 million bikers nationwide
and planning to launch the country’s first motorcycle ambulance (GenT, 2022).
 Howard Schultz (Starbucks Coffee Company)
Schultz first joined Starbucks Coffee Company as its Marketing Director. In 1986, he opened his
coffee shop called “II Giornale.” Later, the co-founders of Starbucks decided to sell the company to
Schultz. He then executed his plan to grow the company nationwide aggressively. There are now
about 27,000 Starbucks locations worldwide (Paul, 2020). According to Forbes (2022), Schultz’s net
worth as of August 2022 is $4.1 billion, or 227.8 billion pesos.
 Phil Knight (Nike)
Knight had been a track runner at the University of Oregon, where he observed the coach fiddling
with the running shoes of the runners and the immediate effect it had on their performance (Paul,
2020).
At Stanford, Knight handed in a paper detailing how he would run a company of quality running
shoes in Japan because of low production costs. The enterprise was first called Blue Ribbon Sports
and faced many problems, including financial disagreements with banks (Paul, 2020). Today, Nike
generates nearly $45 billion or 2.5 trillion pesos in sales (Forbes, 2022).
 Reed Hastings (Netflix)
In 1997, Reed Hastings and Marc Randolph co-founded Netflix, an online movie rental service
offering customers flat rates. Around 2005, Netflix tried to make a name for itself by shipping DVDs
to customers and, later, allowing customers to stream movies and television shows through the
internet. In February 2007, the company delivered its billionth DVD and began to move away from
its original core business model of DVDs by introducing video on demand. Netflix grew as DVD sales
fell from 2006 to 2011. The online streaming era was ushered in by Netflix. As of 2020. Netflix
reported 169 million paid subscribers and a revenue of $20.1 billion or 1.1 trillion pesos (Paul, 2020).
 Amancio Ortega (Zara)
Ortega left school at 14 to sew shirts by hand for a tailor. In 1968, following his ambition and
intuition, he began a company called “Confecciones Goa” that sold dressing gowns, housecoats, and
lingerie that women in cooperatives had made for him (Paul, 2020).
In 1975, Ortega and his wife Rosalia opened his first retail store, Zara, which offered higher quality
made clothes at reasonable prices. By the 80s, Zara’s were located throughout Spain. Ortega

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incorporated Zara into a holding company called the Inditex Group, and today Zara has locations
throughout the world. Ortega’s net worth is over $57.5 billion or 3.2 trillion pesos (Paul, 2020).
 Walt Disney (The Walt Disney Company)
The commercial success of Mickey Mouse allowed Disney to create a cartoon factory with teams of
animators, musicians, and artists. Disney turned that mouse into several amusement parks, feature-
length animations, and a merchandising bonanza. After his death, the growth continued making
Disney, and his mouse, the founders of the largest media company on earth (Beattie, 2022).
 Mark Zuckerberg (Facebook)
He developed Facebook with friends while an undergraduate student at Harvard, ultimately
dropping out his sophomore year to focus on Facebook full-time. He opened an office in Palo Alto,
California, where he raised $12.7 million or 635 million pesos in venture capital. Since then,
Zuckerberg has aggressively grown the company, which went public in 2012. He has developed a
robust advertising and sales arm and rigorously built out Facebook’s capabilities and user bandwidth
by enabling native video services and live streaming. Zuckerberg also spearheaded several
acquisitions, including Instagram, Oculus VR, etc.
Mark Zuckerberg is aiming to acquire the Metaverse, a buzzy brand with the idea of a digital world
reinforced by virtual reality and dominated by Facebook parent Meta (Nieva, 2022).
 Steve Jobs (Apple)
His mission was to build a personal, portable computer that everyone could use. They achieved that
with their second model of the personal computer, the Apply IIc. In 1980, Apple went public with a
market value of $1.2 billion or 66.7 billion pesos by the end of its first day of trading.
 Elon Musk (SpaceX)
Elon Musk founded the aerospace company in 2002 to " revolutionize space technology, with the
ultimate goal of enabling people to live on other planets,” according to the company website.
SpaceX launched its newest rocket – Falcon Heavy, the most powerful operational rocket in the
world with reusable launchers – last February 6, 2018, with zero (0) failure.
In addition to SpaceX, Elon Musk serves as chief executive of Tesla Motor Co., an electric car
company, is chairman and co-founder of SolarCity, and is working to build a high-speed “Hyperloop”
transportation system, which – in theory – could revolutionize travel by cutting commute time.
 Anne Wojcicki (23andMe)
She is the co-founder and CEO of 23andMe, which sells direct-to-consumer genetic testing kits that
are easy to use – it simply requires a person to mail in a saliva sample – and relatively inexpensive,
at
$99 or 5,000 pesos a test. The company’s genome kits, which were named “Invention of the Year”
by Time magazine in 2008, test for 36 recessive disorders, including sickle cell anemia and cystic
fibrosis.
In 2013, the company ran into trouble when it was ordered by the Food and Drug Administration
(FDA) to stop selling its kits over questions about the reliability of the results. Instead of arguing with
FDA, Wojcicki worked closely with the agency to prove that the tests were accurate. Thus, in 2015,
23andMe launched an FDA-approved testing kit.
The company continues to innovate, recently raising $115 million or 6.4 billion pesos to develop its
drug-discovery arm.

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 Larry Page and Sergey Brin (Alphabet)

In 2004, Google went public. Since then, the company has diversified, rolling out products including
Gmail, Google Maps, Google+, and Google Glass. The company is also developing a self-driving car,
robotics, life sciences, and AI products. All these projects, including Google, are part of a parent
company called Alphabet. Brin serves as Alphabet’s president and Page as its CEO.
Value Creation
The Entrepreneurial Value Creation Theory, from the name itself, explains how entrepreneurs create
value through a venture.
Organizations have nearly perfected implementing the industrial model of managing work (the effort
applied toward completing a task). This model ensures that individuals know what is required from
them. For organizations, it guarantees predictability and efficiency. The problem with the model is that
work is becoming commoditized at an increasing rate, extending beyond manual tasks into knowledge
work, as data entry, purchasing, billing, payroll, and similar responsibilities become automated. If the
organization draws value from optimizing repetitive work, one may find that it will be increasingly
difficult to extract value.
The value of products and services today is based on creativity (the innovative ways of utilizing new
materials, technologies, and processes). Value creation in the past was a function of economies of
industrial scale: mass production and the high efficiency of repeatable tasks. Value creation in the future
will be based on economies of creativity: mass customization and the high value of bringing a new
product or service improvement to the market; the ability to find a solution to a vexing customer
problem; or the way a new product or service is sold and delivered.
Becoming “more innovative” has become a mantra of management gurus, but it is clear that this advice
is not enough. The challenge is not just creating value from innovation but also capturing that value.
EXAMPLE: Kenneth Frazier, chairman, and CEO of Merck & Co. (an American multinational
pharmaceutical company), believes that businesses exist to deliver value to society. Since becoming CEO
in 2011, he has earned praise for stabilizing Merck. He has restored the importance of research and
development (R&D) at the company and overseen promising new launches, such as the cancer drug
Keytruda.
He believes that while a fundamental Theresponsibility
vision of Merckof& business
Co. leaders is to create value for
shareholders, the business
To make a difference in thealso
livesexists to deliver
of people globally value toour
through society. Merck
innovative has existed
medicines, forand
vaccines, 126animal
years; its
shareholders have turned over countless times. But their salient purpose in the world
health products. We are committed to being the premier, research-intensive biopharmaceutical companyis to deliver
important vaccines and medicines
and are dedicated to providingthat make
leading a hugeand
innovations difference to today
solutions for humanity.
and theThe revenue and
future.
shareholder value they create is an imperfect proxy for the value they create for patients and society.
The Rationale for a Sustainable World
How did we get to the point where we are running out of the resources (such as oil) that support our
way of life and others (such as clean air and fresh drinking water) that support life itself? And how did
entire industries, such as fishing and agriculture, find themselves in trouble, as chronic overfishing and
the drive for ever-higher crop yields led to widespread depletion of fish stocks and a historic loss of
topsoil?

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The short answer is: We are running out of resources due to our numerous technological successes.
In the first stage of the Industrial Revolution (1750-1820), the rise of large-scale manufacturing caused
labor productivity in England to rise a hundredfold.
It did not take long for innovations such as the assembly line to spread to other countries in northern
EuropeButand to the hinterlands
the revolution of change
did not simply the United
the wayStates, whose
we worked; exploding the
it transformed population and the
way we lived, vastway
store of
we thought about ourselves, and the way we viewed the world. Nothing like it had ever
natural resources enabled the former colony to become the next industrial power. The industry was occurred
boomingbefore.
and so, too, were the material standards of living. The country's industrial production grew
thirty-fold as the United States population increased from about 10 million to 63 million between 1820
and 1890. The resulting fivefold growth in output per person was even greater than the productivity
gains on the other side of the Atlantic.
The impacts the Industrial Revolution had on the quality of life were undeniable. As industrial expansion
continued into the twentieth century, life expectancy in the industrial world roughly doubled, and
literacy jumped from 20 percent to over 90 percent. Benefits sprang up in the form of products (from
private cars to iPods), services (from air travel to eBay), and astounding advances in medicine,
communication, education, and entertainment. With this kind of success, it is little wonder that the side
effects of the Industrial Age success story went largely ignored.
But the downsides of great prosperity were steadily accumulating from the very beginning. In the 1800s,
England’s level of fossil fuel combustion grew dramatically, and so did water and air pollution levels. In
the late 1800s, London’s infamous “fog,” particulate emissions from burning coal, caused a virtual
epidemic of respiratory diseases once confined to coal-mining communities. By 1952, air quality in
London was so bad that the “great smog” (four [4] days of toxic air trapped over the city) killed more
than 4,000 people and galvanized the government to create air pollution regulations.
Although the problems of the Industrial Age have been evident for decades, it urged people to wake up
and start operating differently due to global climate change (Senge, Smith, Kruschwitz, Laur, & Schley,
2008).
Creating Beyond Reactive Problem-Solving
Problem-solving involves making undesirable matters go away. Creating consists of bringing something
into reality. It reflects a subtle yet profound distinction that will make all the difference in the future.
A sustainable future will involve bringing over time a new energy system, new types of buildings and
Creating
transport, anddraws
new energy
ways tofrom dreams or visions
dramatically reduceofwaste
what people truly want
and toxicity to seeon
– based exist
new (inproducts,
concert with an
processes,
accurate and insightful understanding of what is). Reactive problem solving draws its energy
business models, and methods of managing and leading. It will require passion and patience, people from crises,
usually driven by an underlying emotion of fear (fear of the consequences if we fail to solve the problems).
working together toward aims that have genuine meaning for them, and opening themselves to ideas
that may seem foreign and even threatening. And it will require the courage to act without all the
answers, moving beyond the comfortable approach of “figuring out the answer and then implementing
it.” The creative process is inescapably a learning process, which means venturing into complex and
uncharted territory with openness and humility and continually discovering shortfalls.

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Tapping and developing the potentials of people and organizations to create the future rather than react
to the present rests on two (2) foundations that have always been at the core of organizational learning:
visions for the future and an understanding of the present reality.
The power of genuine vision is understood in cultures worldwide. But just as important is the ability to
see the current state of things as objectively as possible. It is often misunderstood by people who
appreciate the importance of vision. Still, it would instead not look at difficult or painful aspects of the
current situation, as well as those who prefer to look only at the bad and not recognize what is positive
about their current situation that they can build on (Senge, Smith, Kruschwitz, Laur, & Schley, 2008).
In particular, seeing the present systematically is crucial to creating the future.

EXAMPLE: People everywhere today are reacting to different facets of the sustainability crisis, but many
People get so drawn into fragmented views of the “problem” that they often resort to superficial quick fixes.
of the efforts represent reactions to what are seen as separate and distinct threats – climate change,
high oil prices, growing waste and toxicity, unhealthy food, water shortages, social and political stability
– as opposed to a deep reflection on the interconnections between these different issues (Senge, Smith,
Kruschwitz, Laur, & Schley, 2008).
References:
Beattie, A. (2022). The 10 greatest entrepreneurs. https://www.investopedia.com/articles/financial-theory/10/the-10-greatest-
entrepreneurs.asp
Bharatam, S. (2015). BHARATAM: Lessons entrepreneurs can learn from an eagle.
https://www.businessdailyafrica.com/magazines/Lessons-entrepreneurs-can-learn-from-an-eagle/1248928-2900738-
138eaulz/index.html
Forbes. (2022). Howard Schultz. https://www.forbes.com/profile/howard-schultz/?sh=219b749252c6

Forbes. (2022). Phil Knight & family. https://www.forbes.com/profile/phil-knight/?sh=465e0a821dcb

GentT. (2022). For coming up with a solution to Manila’s traffic jams. https://generationt.asia/people/angeline-tham
Hughes, J. (2014). What value creation will look like in the future. https://hbr.org/2013/05/what-value-creation-will-look-like-in-
the-future
Ignatius, A. (2018). Merck CEO Kenneth Frazier: Businesses exist to deliver value to society. https://hbr.org/2018/03/businesses-
exist-to-deliver-value-to-society
Krogue, K. (2013). Be an eagle, not a duck! https://www.forbes.com/sites/kenkrogue/2013/05/10/be-an-eagle-not-a-
duck/3/#216a39ec4ac4
Nieva, R. (2022). Mark Zuckerberg’s path to ‘owning the entire metaverse’ is paved with potholes.
https://www.forbes.com/sites/richardnieva/2022/07/28/mark-zuckerbergs-path-to-owning-the-entire-metaverse-is-
paved-with-potholes/?sh=522daf5e2a60
Oluwatosin, E. (2008). 7 principles of an eagle. http://www.eolutosin.com/7-principles-of-eagle/
Paul, R. (2020). The 40 greatest entrepreneurs of our time. https://startupmindset.com/the-40-greatest-entrepreneurs-of-our-
time/
Primer Media Inc. (2017). Success story: Tony Tan Caktiong of Jollibee Group.
http://primer.com.ph/business/2017/03/07/success-story-tony-tan-caktiong-of-jollibee-group/
Senge, P., Smith, B., Kruschwitz, N., Laur, J., & Schley, S. (2008). The necessary revolution: How indidviduals and organizations
are working together to create a sustainable world. Nicholas Brealey Publishing.
Smith, K. C. (2012). The top 10 distinctions between entrepreneurs and employees. Ballantine Books.
Sun, C. (2016). 9 iconic inventors who changed the world. https://www.entrepreneur.com/slideshow/271993

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