CONCEPTS OF

ENTREPRENUERSHIP
ENTREPRENEURIAL MANAGEMENT
F
1. Am I a planner, dreamer or a goal setter?
2. Do I have enough resources to start a business?
3. Am I working around a tight budget for my
expenses?
4. Do I have good credit status?

YES OR NO? 5. Do I have strong people skills?

6. Do I enjoy making decisions and being in charge?
7. Am I good at short and long-range planning?
8. Am I willing to take initiative when confronted with
difficult situations?
9. Am I flexible, and can adapt to changing
circumstance?
10.Am I willing to take calculated risk?
11.Am I ready to learn and accept the mistakes that I
might encounter along the way?
WHAT IS
ENTREPRENEURSHIP?
ENTREPRENEURIAL MANAGEMENT
WHAT IS ENTREPRENEURSHIP?

• It came from the French word “entreprendre”, which is usually translated as

"undertaker" or "adventurer”.
• “Entrepreneurship is now a concern of various professions” – (Prof. Karl Vesper)
• Economist: Brings resources, labor, materials and other assets who increases
its value
• Businessman: Threat, aggressive competitor, ally, a source of supply, customer
or someone good to invest in.
• Capitalist: Creates wealth for others, finds better ways to use resources,
reduce waste and produce jobs.
WHAT IS ENTREPRENEURSHIP?

• Entrepreneurship as “being able to look at the environment, identify opportunities to

improve the environment, marshal resources, and implement action to maximize those
opportunities. (Professor Robert Nelson of the University of Illinois)
• (Prof. Joseph Schumpeter) - “Doing things that are not generally done in the ordinary
course of business routine.”
• (Prof. Jeffry Timmons) - “the ability to create and build a vision from practically
nothing.” The vision requires willingness to take calculated risks (personal and financial)
and do everything to reduce chances of failure.
WHAT IS ENTREPRENEURSHIP?

• (Prof. Albert Shapero) - “a kind of behavior that will include:

• Initiative taking
• Organizing and recognizing of social/economic mechanisms to turn resources
and situations to practical account
• Acceptance of risks and failures
WHAT IS ENTREPRENEURSHIP?

From these definitions the key concepts that can be derived about entrepreneurship and the entrepreneur
are:
• Opportunity identification- this means that there must be a real business opportunity
• Gathering resources. Capital, labor and equipment must be available
• Creating and growing the venture. This refers to the starting of a new business venture or the
conversion of an existing business.
• Taking risk. This means that there will be personal and financial risk involved for the person who
embarks on the entrepreneurial process.
• Being rewarded. This can be in the form of profit or an increase in the value of the business
• Managing the business. This means that there must be planning, organization, leadership and
control of all the functions in the business venture.
MAJOR FACTORS AFFECTING ENTREPRENEURSHIP
DEVELOPMENT

• Aspiration and Attitude. Every person acts and behaves according to his
aspirations and attitude. A person with high ambitions helps himself to become a
big entrepreneur. Similarly, if a person has the attitude to work as an entrepreneur,
only then he can achieve success.
• Personal Factors. The personal factors of an individual also influence his spirit of
becoming an entrepreneur or not. The entrepreneur having qualities of immense
imaginations, maturity, optimism, foresightedness, ability to bear risks, efficiency,
self-confidence, leadership ability, hard work, honesty, etc. is sure to achieve
success.
MAJOR FACTORS AFFECTING ENTREPRENEURSHIP
DEVELOPMENT

• Family Circumstances. Every person has different family circumstances. It is

often observed that due to family non-cooperation enterprises get frustrated,
whereas a person becomes a successful entrepreneur with a family cooperation.

• Government Policies, Facilities, and Incentives. If the government provides

basic infrastructural facilities, like electricity, transport, banking, insurance,
communication, water, raw materials, and warehousing facilities, etc. It certainly
results in the development of entrepreneurship or entrepreneurial.
MAJOR FACTORS AFFECTING ENTREPRENEURSHIP
DEVELOPMENT

• Business Competition. If healthy competitive conditions prevail in society, the

development of entrepreneurship or entrepreneurial is sure, whereas the unhealthy
competition blocks the development of entrepreneurship or entrepreneurial.

• Attitude of Big Entrepreneurs. Big entrepreneurs may motivate and inspire small
entrepreneurs with success and prosperity. Besides, the positive attitude of big
entrepreneurs is also inspiring for small entrepreneurs. Big entrepreneurs may
boost up the morale of small entrepreneurs by providing them knowledge about
law, building, raw materials, techniques, and marketing, etc.
MAJOR FACTORS AFFECTING ENTREPRENEURSHIP
DEVELOPMENT

• Entrepreneurship Oriented Education and Training. Education and training as

an important role in the development of entrepreneurship. The entrepreneurs are
not born but are developed as such, by way of proper education, training, and
counseling.

• Role of Banks and Financial Institutions. Banks and Financial Institutions have
also played an important role in the development of entrepreneurship or
entrepreneurial.
 An entrepreneur is an economic change agent with
knowledge, skills, initiative, drive and spirit of
innovation to achieve goals. He identifies and
seizes opportunity for economic benefits. He is a
risk bearer, an organizer and innovator.

THE According to ECONOMIST – An entrepreneur is the

one who brings resources, labor, material and other
assets into combination to produce a socially viable

ENTREPRENEUR product, and also one who introduces changes,

innovation and new order.

According to MANAGEMENT - entrepreneur

is a person with vison and action plan to
achieve.
BUSINESSMAN VS. ENTREPRENEURS

BUSINESSMAN ENTREPRENEURS

Definition A businessman is an Definition An entrepreneur is an

individual who operates or individual with an exclusive
starts a business with the idea to initiate and establish a
same old business idea. new venture.
Market State Market player (Makes his Market State Market leader (Creates a
place in the market) market)
Risk Factor Less Risk Factor Approximately High
Procedure Traditional/Ordinary Procedure Unconventional
Focus Profit Focus Employee, customer, and
Competition Extremely high public
Competition Low
 1. Innovation
2. Assumptions of Risk
FUNCTIONS OF 3. Research
ENTREPRENUERS 4. Development of
Management Skills
5. Catalyst of Economic
Development
FUNCTIONS OF ENTREPRENUERS

INNOVATION.
An entrepreneur is basically an innovator who tries to develop new technology,
products, markets, etc. An entrepreneur uses his creative faculties to do new things
and exploit opportunities in the market.
FUNCTIONS OF ENTREPRENUERS

ASSUMPTION OF RISK.
An entrepreneur, by definition, is risk taker and not risk shirker. He is always prepared
for assuming losses that may arise on account of new ideas and projects undertaken
by him.
FUNCTIONS OF ENTREPRENUERS

RESEARCH
An entrepreneur finalizes an idea only after considering a variety of options, analyzing
their strengths and weaknesses by applying analytical techniques, testing their
applicability, supplementing them with empirical findings, and then choosing the best
alternative. It is then that he applies his ideas in practice. The selection of an idea,
thus, involves the application of research methodology by an entrepreneur.
FUNCTIONS OF ENTREPRENUERS

DEVELOPMENT OF MANAGEMENT SKILLS.

The work of an entrepreneur involves the use of managerial skills which he develops
while planning, organizing, staffing, directing, controlling and coordinating the activities
of business. However, when the size of business grows considerably, an entrepreneur
can employ professional managers for the effective management of business
operations.
FUNCTIONS OF ENTREPRENUERS

CATALYST OF ECONOMIC DEVELOPMENT.

An entrepreneur plays an important role in accelerating the pace of economic
development of a country by discovering new uses of available resources and
maximizing their utilization.
 1. Motivation to Engage in
TYPES OF Entrepreneurial Activity
ENTREPRENEURS 2. Levels of Creativity and
Innovation
TYPES OF ENTREPRENEURS

Motivation to Engage in Entrepreneurial Activity

• Push (Forced): Push entrepreneurs are those whose dissatisfaction with their
current position for reasons unrelated to their entrepreneurial characteristics,
pushes them to start a venture.
• Pull Entrepreneurs: Are those who are lured by their new venture idea and initiate
venture activity because of the attractiveness of the business idea and its personal
implications.
• “Push” and ‘pull’ Entrepreneurs: Are combinations of the above two.
TYPES OF ENTREPRENEURS

Levels of Creativity and Innovation

• Innovative Entrepreneur: They are those who always make new things by thinking of new
ideas. They have the ability to think newer, better and more economical ideas.

• Imitative (Adoptive) Entrepreneurs: They imitate and adopt the technology and techniques
innovated by others. They are particularly important in underdeveloped countries although
not highly regarded in more developed economies. However, imitative entrepreneurs also
need to be creative in order to modify innovations to suit their special conditions.
TYPES OF ENTREPRENEURS

Levels of Creativity and Innovation

• Opportunistic Entrepreneurs: They constantly look for and exploit serial opportunities
because of their wide skills and knowledge accumulated from a wider educational
background, experience or exposure.

• Visionary Entrepreneurs: They have almost similar characteristics to the opportunistic

Entrepreneurs however, while “opportunistic” entrepreneurs pursue, serial business
opportunities, the “Visionary” entrepreneurs, concentrate on the unwavering pursuit of a
single, powerful opportunity.
TYPES OF ENTREPRENEURS

Levels of Creativity and Innovation

• Drone Entrepreneurs: Such entrepreneurs are conservative or orthodox in outlook. They
always feel comfortable with their old fashioned technology of production even though
technologies have changed.
• Fabian Entrepreneurs: Are also reluctant to change, but are sometimes forced by
circumstances to change.
• Solo Entrepreneurs: At the level of organization these are entrepreneurs who developed
their business ideas on their own. The solo entrepreneur is limited to his means and
capabilities.
TYPES OF ENTREPRENEURS

Levels of Creativity and Innovation

• Coprenuers: Are entrepreneurial couples that work together as co-owners of an enterprise.

• Part Time Entrepreneurs: Starting business on a part time basis is a popular gateway to
Entrepreneurship that allows one to get the best of both worlds by getting the benefits of
Entrepreneurship and the security of a regular salary.

• Corporate cast off and dropouts: Are produced by retrenched and retiring employees and
have become an important source of entrepreneurial activity.
SUCCESSFUL
FILIPINO
ENTREPRENEURS
SUCCESSFUL FILIPINO ENTREPRENEURS

Tony Tan Caktiong Socorro Ramos Leonardo Sarao

PROFILE OF A SUCCESSFUL ENTREPRENEUR

• Responsibility. Every entrepreneur craves a personal responsibility for their start-up. The
desire to control resources and utilize them to achieve their goal exemplifies this quality.
• Commitment. Apart from responsibility, commitment to entrepreneurs is another quality of
entrepreneurial profile and is on another level. They are not only highly motivated to achieve
their goals but also committed to the same goals. At the beginning of every start-up,
entrepreneurs face several obstacles. Nevertheless, they overcome, bringing the business to
success. While most people have ideas and wish to do something important, entrepreneurs
only realize such dreams.
PROFILE OF A SUCCESSFUL ENTREPRENEUR

• Creativity and novelty. The marks of a successful entrepreneur are creativity and innovation.
Entrepreneurs often come up with new and productive ideas that turn into successful start-
ups. Besides that, they work hard to develop and market their unique business models. Such
creativity not only makes them great leaders but also great motivators.
• Flexibility. The ability to adapt to the changing business environment is vital for every
entrepreneur. Customer needs and expectations keep changing. For that reason, an
entrepreneur ought to be willing to make changes.
PROFILE OF A SUCCESSFUL ENTREPRENEUR

• Skilled organizers. Entrepreneurs are among the few people able to build something from
scratch. This skill makes it possible for them to gather the right people. Also, they know the
right resources and tools required to accomplish the task. Therefore, they can organize
resources and achieve the set objectives. Besides that, they know the right strategies to use
when executing their plan.
• Risk-Taking. Taking risks is at the core of entrepreneurship.
ENTREPRENEURIAL
PROCESS
 ENTREPRENEURIAL PROCESS

• Discovery. An entrepreneurial process begins with the idea generation, wherein the entrepreneur
identifies and evaluates the business opportunities. Once the opportunity has been decided upon, the
next step is to evaluate it. An entrepreneur can evaluate the efficiency of an opportunity by
continuously asking certain questions to himself, such as, whether the opportunity is worth investing in,
is it sufficiently attractive, are the proposed solutions feasible, is there any competitive advantage,
what are the risk associated with it. Above all, an entrepreneur must analyze his personal skills and
hobbies, whether these coincides with the entrepreneurial goals or not.
ENTREPRENEURIAL PROCESS

• Developing a Business Plan. Once the opportunity is identified, an entrepreneur needs to create a
comprehensive business plan. A business plan is critical to the success of any new venture since it
acts as a benchmark and the evaluation criteria to see if the organization is moving towards its set
goals. An entrepreneur must dedicate his sufficient time towards its creation, the major components of
a business plan are mission and vision statement, goals and objectives, capital requirement, a
description of products and services, etc.
ENTREPRENEURIAL PROCESS

• Resourcing. The third step in the entrepreneurial process is resourcing, wherein the entrepreneur
identifies the sources from where the finance and the human resource can be arranged. Here, the
entrepreneur finds the investors for its new venture and the personnel to carry out the business
activities.
• Implementation. Once the funds are raised and the employees are hired, the next step is to initiate the
business operations to achieve the set goals. First of all, an entrepreneur must decide the
management structure or the hierarchy that is required to solve the operational problems when they
arise.
ENTREPRENEURIAL PROCESS

• Scaling and Harvesting. Scaling is a process where the organization will encounter challenges. The
organization will experience painful point for rapid growth for stability and continuity of the business
operations. On the other hand, Harvesting is a process where the organization will reap what they sow
in dealing with the challenges they had encountered throughout the process of the business.
 ASSESSMENT:
ILOKANO Entrepreneur
• Research one (1) ILOKANO Entrepreneur. It can be a person or a group of
people.
• Know about the nature of his/her business. (How it started? What are the
products? What is the current state of the business now?)
• It can be someone you know.
• Present it to the class tomorrow