Module 1: The Concept of Entrepreneurship have to put their own "skin in the

game." Any new business should have a

Entrepreneurship
financial plan within the overall
“Entrepreneurship is the pursuit of opportunity business plan showing income
beyond resources controlled.” – Howard projections, how much cash will be
Stevenson required to break even, and the expected
return for investors in the first five-year
• The process of designing, launching, timeframe. Failure to accurately plan
and running a new business, which is could mean that the entrepreneur risks
often initially a small business, or as the bankruptcy, and investors get nothing.
"capacity and willingness to develop,
organize and manage a business venture Strategic Risk
along with any of its risks to make a
• An impressive business plan will appeal
profit."
to investors. However, we live in a
• Economists have never had a consistent dynamic and fast-paced world where
definition of "entrepreneur" or strategies can become outdated quickly.
"entrepreneurship" (the word Changes in the market or the business
"entrepreneur" comes from the French environment can mean that a chosen
verb entreprendre, meaning "to strategy is the wrong one, and a
undertake"). Though the concept of an company might struggle to reach its
entrepreneur existed and was known for benchmarks and key performance
centuries, the theorists left entrepreneurs indicators (KPIs).
out of their formal models: They Technology Risk
assumed that perfect information would
be known to fully rational actors, • New technologies are constantly
leaving no room for risk-taking or emerging, particularly in the era of the
discovery. Fourth Industrial Revolution. Some of
these changes are characterized as
"paradigm shifts" or "disruptive"
technologies. To be competitive, a new
company may have to invest heavily in
new systems and processes, which could
drastically affect the bottom line.
Market Risk
• Many factors can affect the market for a
product or service. The ups and downs
of the economy and new market trends
pose a risk to new businesses, and a
certain product might be popular one
year but not the next. For example, if the
Financial Risk economy slumps, people are less
inclined to buy luxury products or
• An entrepreneur will need funds to nonessentials. If a competitor launches a
launch a business either in the form of similar product at a lower price, the
loans from investors, their own savings, competitor might steal market share.
or funds from family. The founder will Entrepreneurs should perform a market
 analysis that assesses market factors, the business sectors have historically high
demand for a product or service, and failure rates, and entrepreneurs in these
customer behavior. sectors may find it difficult to find
investors. These sectors include food
Competitive Risk
service, retail, and consulting.
• An entrepreneur should always be aware
of its competitors. If there are no
competitors at all, this could indicate
that there is no demand for a product. If
there are a few larger competitors, the
market might be saturated, or, the
company might struggle to compete.
Additionally, entrepreneurs with new
ideas and innovations should protect
intellectual property by seeking patents
to protect themselves from competitors.
Reputational Risk Job Satisfaction
• A business's reputation is everything, • Many entrepreneurs start businesses
and this can be particularly so when a because they have a passion for it. ...
new business is launched, and customers Striving for success means prolonging
have preconceived expectations. If a the life of the business and staying in
new company disappoints consumers in touch with your passion long term. This
the initial stages, it may never gain sense of personal satisfaction is what
traction. Social media plays a huge role drives many entrepreneurs.
in business reputation and word-of-
mouth marketing. One tweet or negative Higher Wages
posting from a disgruntled customer can • Although a third of all business fail in
mean huge losses in revenue. the first two years, according to the
Reputational risk can be managed with a Small Business Administration, business
strategy that communicates product owners who are still in business are
information and builds relationships financially better off than employees.
with consumers and other stakeholders.
• According to a 2004 Gallup survey, only
Environmental, Political, and Economic Risk 52 percent of small business owners say
• Some things cannot be controlled by a they earn more by hour than they would
good business plan or the right if they were employed by a company in
insurance. Earthquakes, tornadoes, their industry. However, 70 percent said
hurricanes, wars, and recessions are all they were doing better financially as
risks that companies and new their own bosses than working for
entrepreneurs may face. There may be a someone else.
strong market for a product in an under- Greater Control
developed country, but these countries
can be unstable and unsafe, or logistics, • Being your own boss or not having a
tax rates, or tariffs might make trade boss is probably the greatest advantage
difficult depending on the political of having your own business. It provides
climate at any point in time. Also, some you with more control over your life.
 The profits you generate from your work can change the world. They often
benefit you, not someone else. You don't receive funding from venture capitalists
have to ask for time off, you decide and hire specialized employees.
when to have a vacation, how many
• Scalable startups look for things that are
hours to work and you can choose to do
missing in the market and create
work you enjoy and find fulfilling.
solutions for them. Many of these types
Being you own boss is also exciting;
although it has special challenges, no of businesses start in Silicon Valley and
are technology focused. They seek rapid
day is the same and you have more
expansion and big profit returns.
flexibility, and you will never stop
Examples of scalable startups are
learning.
Facebook, Instagram, and Uber.

Small Business Entrepreneurship Social Entrepreneurship

• is often when a person owns and runs • An entrepreneur who wants to solve
their own business. They typically hire social problems with their products and
local employees and family members. services is in this category of
Local grocery stores, hairdressers, small entrepreneurship. Their main goal is to
boutiques, consultants, and plumbers are make the world a better place. They
a part of this category of don't work to make big profits or wealth.
entrepreneurship. Instead, these kinds of entrepreneurs
Large Company Entrepreneurship tend to start nonprofits or companies
that dedicate themselves to working
• Large company entrepreneurship is toward social good.
when a company has a finite amount of
life cycles. This type of entrepreneurship
is for an advanced professional who
knows how to sustain innovation.
Companies such as Microsoft, Google
and Disney are examples of this kind of
entrepreneurship.
Scalable Startup Entrepreneurship
• This kind of entrepreneurship is when
entrepreneurs believe that their company
Innovative Entrepreneurship better and more profitable. An imitator
is a combination between an innovator
• Innovative entrepreneurs are people who
and a hustler. They are willing to think
are constantly coming up with new ideas of new ideas and work hard, yet they
and inventions. They take these ideas
start by copying others. People who are
and turn them into business ventures.
imitators have a lot of self-confidence
They often aim to change the way
and determination. They can learn from
people live for the better. Innovators others' mistakes when making their own
tend to be very motivated and passionate
business.
people. They look for ways to make
their products and services stand out
from other things on the market. People
like Steve Jobs and Bill Gates are
examples of innovative entrepreneurs.
Hustler Entrepreneurship
Researcher Entrepreneurship
• People who are willing to work hard and
• Researchers take their time when
put in constant effort are considered
starting their own business. They want
hustler entrepreneurs. They often start
to do as much research as possible
small and work toward growing a bigger
before offering a product or service.
business with hard work rather than
They believe that with the right
capital. Their aspirations are what
preparation and information, they have a
motivates them, and they are willing to
higher chance of being successful. A
do what it takes to achieve their goals.
researcher makes sure they understand
They do not give up easily and are
every aspect of their business and have
willing to experience challenges to get
an in-depth understanding of what they
what they want. For example, someone
are doing. They tend to rely on facts,
who is a hustler is willing to cold call
data and logic rather than their intuition.
many people in order to make one sale.
Detailed business plans are important to
them and minimize their chances of
failure.
Buyer Entrepreneurship
• A buyer is a type of entrepreneur who
uses their wealth to fuel their business
ventures. Their specialty is to use their
fortunes to buy businesses that they
think will be successful. They identify
promising businesses and look to
acquire them. Then, they make any
management or structural changes they
Imitator Entrepreneurship
feel are necessary. Their goal is to grow
• Imitators are entrepreneurs who use the businesses they acquire and expand
others' business ideas as inspiration but their profits. This kind of
work to improve them. They look to entrepreneurship is less risky because
make certain products and services they are purchasing already well-
established companies.
“There’s no better training for entrepreneurship (2) Accommodation and Food Service
than to be an entrepreneur, and now is always Activities (134,046);
the best time to get started.”
(3) Manufacturing (110,916);
(4) Other Service Activities (62,376); and
(5) Financial and Insurance Activities
(45,558). These industries accounted for
about 83.77% of the total number of
MSME establishments.

Number of Establishments
The 2020 List of Establishments of the
Philippine Statistics Authority (PSA) recorded a
total of 957,620 business enterprises operating in
the country. Of these, 952,969 (99.51%) are
MSMEs and 4,651 (0.49%) are large enterprises.
Micro enterprises constitute 88.77% (850,127)
of total MSME establishments, followed by
small enterprises at 10.25% (98,126) and The Philippines and Technology
medium enterprises at 0.49% (4,716).
• SMALL and medium enterprises
(SMEs) serve as the driving force of a
country’s economic growth. This is
mainly because they make up a large
part of the business landscape in certain
countries, especially in Asia.
• In the Philippines, there are 4,651 large
enterprises, 98,126 small enterprises,
4,716 medium enterprises and a
whopping 850,127 units of micro
business establishments.
• SMEs alone have managed to create
over 2.5 million jobs in the country,
Sectoral Distribution further signifying the vitality of these
• The top five (5) industry sectors establishments to the country’s
according to the number of MSMEs in development.
2020 were: • Due to the fact that they greatly
(1) Wholesale and Retail Trade; Repair of influence the country’s income rate and
Motor Vehicles and Motorcycles development, they must be able to
(445,386); constantly meet the global industrial
demands, evolve alongside the new
 globalization standards and catch up In the products and services
with the digital world. transformation, an integral part of
technopreneur is technology.
• The wave of digital disruption has hit
the Philippines’ SMEs, so business Technopreneurs
leaders must respond proactively by
• As defined by the Collins Dictionary,
embracing technology solutions and be
“techpreneurs are entrepreneurs who
more digitally enabled.
start and manage their own technology
• As the country gains new digital business.”
capabilities and advances its technology
• The name originated from the year
development, it is imperative that SMEs
1990s and a blend of “techno” and
go digital.
“entrepreneur” who takes the calculated
• New and emerging technologies can be risks in the techy world.
a threat to businesses that fail to
• Do you know who the techpreneur is?
innovate and keep up with the latest
Here are examples of some
advancements.
technopreneurship that sets an example.
• Capabilities like digital payment
Elon Musk
systems are core to SMEs as they are
increasingly sought after and help stay • The billion Elon Musk has been
relevant in an ever-evolving regarded as a Tech Geeks, who is CEO
marketplace. of SpaceX, PayPal, and Tesla. Further,
Elon Musk is known as a disrupture and
• The transformation is necessary not only
he has discarded the misconception that
to secure greater revenues, but also to
the only best way to cut the business
increase operational efficiency, boost
cost is outsourcing.
data-reliance, improve marketing, and
enhance research and development. • Elon Musk is always rushing the group
of technopreneurs who love to take
risks.
Bill Gates and Steve Jobs
• Other well-known technopreneurs cover
Bill Gates who is the founder and owner
of the award-winning firm of all
time, Microsoft. But we will never forget
the late Steve Jobs.
TECHNOPRENEURSHIP
• Of course, the film that has been made
• As it is hinted by the term, it is a blend
about Steve Jobs named “Pirates of
of two words such as “technology” and
Silicon Valley” that gave him the title of
“Entrepreneurship”. Thoroughly, it is a
technopreneur. That biographical film
kind of entrepreneurship in the field of
about that man showcases the real
technology.
picture of the tech world that we have
• The process of technopreneurship is a today. It involves all the creative actions
combination of technological involved in the building up of the global
advancements and entrepreneurial skills.
 corporate empire, Steve Jobs Apple Local Resources
Computer Corporation.
• Various natural and productive resources
• It is interesting to get such great are available that every entrepreneur can
technopreneurs at the same time. Both utilize for business success. The usage
companies competed with each other in of local resources increases its value and
the past times on various events. The reduces the rate of resource wastage.
battle of these computer and software
Business Diversification and Decentralization
technology is appealing to watch.
• An entrepreneur can find out the
Technopreneurship is a new breed in the field of
business opportunities and locate them
entrepreneurship. These types of
entrepreneurships are suitable for a person who in areas that are suitable, including
remote areas.
is intelligent, innovative, tech-savvy, appetite,
and passionate in the calculation of risk. Technological advancement
Technopreneurship gets to the next level of • By being a creative and innovative
success through teamwork. technopreneur, they play an important
Importance of Technopreneurship role in the field of utilization as well as
the development of technology.
• Needless to say, technopreneurship has
Capital Formation
played an influential role in the use of
technology for fulfilling various • Investment is an integral part of a
purposes. First off, it makes it easy for business, and an entrepreneur requires
people to stay in touch with each other funds to start up and take their business
and comes up with some unpredictable to new heights. They take financial
products as well as solutions that are assistance from investors and financiers
beneficial for the nation. and utilize the public savings that lead to
• Apart from this, it has also provided economic development.
some other benefits to society and the Promotion of Entrepreneurial Activities
nation that contributes to economic and
human development. Here, we are going • The young generation gets a chance to
to discuss the significance of work with such technopreneurship firms
Technopreneurship for a nation and the and learn nuts and bolts how to get
world too. success. It also inspires these teammates
and employees to grow and start up their
Creating Employment Opportunities business firms too.
• When startup businesses, then there is
an increase in the pool of job
opportunities as they need manpower to
run all business operations. In the same
way, technopreneurship creates jobs and
helps the nation to combat the problem
of unemployment. It increases the
employment rate of an economy.
The Main Focus of Technopreneruship • These include infonomics (capitalizing
on information dispersal through
▪ Hi-tech ventures in Information and
articles, videos, etc.), e-commerce
Communication Technology, the
(selling and buying of products and
internet, life services, electronics, and
services online), over-the-top (OTT)
biotech.
entertainment platforms, cybersecurity
▪ Service firm where the main mission is solutions, and so on.
technology.
However, despite these developments (and also
▪ Designing hi-tech products such as because of them), cyber space, like the offline
computer hardware or devices. space, is not perfect. While the rapidly evolving
digital ecosystem has enabled more
▪ Use of technology in the delivery of entrepreneurs and service providers to grow on
normal business activities. the Internet, on the flipside, cybercriminals too
Cyberpreneurship, a New Age Tool in Cyber have leveraged the digital medium to exploit the
Security vulnerabilities in a growing online business
ecosystem.
Cyberpreneurship
• is a phenomenon unique to the digital
age, having originated from the fusion
of cyber—a prefix that symbolizes
digitization of established systems; and
entrepreneurship, the commercial
backbone shaping modern economies.
Following this logic, cyberpreneurs are
essentially professionals who digitize
access to their products and services by
leveraging information technology,
especially the Internet.
• Digital enterprises are thus able to
conduct entire transactions, from
delivery of products or services to
generation of revenue, everything takes
place in the digital domain.
• Virtual businesses have several virtues,
such as stronger likelihood of more 1. SELLING DIGITAL INFORMATION
efficient customer engagement and PRODUCTS
hassle-free service delivery, flexible ◦ Selling digital information is the lowest
operations, and so on. entry barrier for any cyberpreneurs.
• Due to this, cyberpreneruship has Because of that also, it is highly
boomed since the past half decade, the competitive. It is all about producing
ripples of which are only getting louder content that can solve people’s problem
as we speak, reaching out to cover and package it in a way that enables
virtually every avenue existing on the people to pay you back for that
Internet today. information that was provided.
 5. SELLING BRANDS

High Technology Industry

"High tech" is a term that is generally applied
to economic and industrial sectors wherein
2. SELLING PHYSICAL PRODUCTS technological innovation is emphasized. High-
tech industries play an important role in the
modern economy, and often experience
significantly higher pay than other industries.
o refers to the latest advancements in
computers and electronics as well as to
the social and political environment and
consequences created by such machines.

3. SELLING SPONSORSHIP

◦ By having these large followers,

Cyberpreneurs can receive sponsorship
from companies that want to promote
their brand, products or services to the
Cyberpreneurs large followings.
4. SELLING CONSULTANCY AND
SERVICES

Types of High Technology Industries

The high-tech industry broadly covers
enterprises that are knowledge-intensive and
technology-intensive. These enterprises engage
in R&D, production and sales of one or more
high technologies, that would in turn account for
more than 60% of their annual gross revenue.
They are:
(a) electronic information technology.
(b) aerospace and aeronautical technology.
(c) biological engineering and new medical
technology.
(d) new materials and applied technology.
(e) new energy and highly efficient energy
conservation technology.
(f) new environmental technology.
(g) ocean engineering.
(h) advanced manufacturing technology.
(i) nuclear application technology.
(j) modern agricultural technology; and
(k) other new processes or new technology
applicable in the traditional industries.