BAPE 101/ENTREP 1 – ENTREPRENEURIAL MANAGEMENT/

Introduction to Entrepreneurship
entrepreneur – (Irish-French economist Richard Cantillon) is the owner or manager of
a business enterprise who makes money through risk and initiative.

- 1. Is the one who bears uncertainty, buys labor and materials, and
sells products at uncertain prices.
- 2. (French concept) is an adventurer, undertaker, and projector.
His function is to supply and accumulate capital.

- 3. (Schumpeter) – is an innovator. He does new things or those

things in a new way. He supplies new products, makes new
techniques of production, discovers new markets, and develops
new sources of raw materials.

- 4. (Peter Drucker) says that an entrepreneur always searches for

change, responds to it and exploits it as an opportunity.

- 5. (economist) – is one who shifts economics resources from an

area of lower productivity to an area of higher productivity and
greater yield.

- 6. (American Heritage Dictionary) as a person who organizes,

operates, and assumes the risk for business ventures.

- 7. (Geoffrey Meredeth) are people who have the ability to see and
evaluate business opportunities, to gather the necessary resources
and to take advantage to them, and initiate appropriate action to
ensure success.

Entrepreneur in English is a term applied to a person who is willing to help launch a new
venture or enterprise and accept full responsibility for the outcome.

Types of entrepreneurs

1. Social entrepreneur

A social entrepreneur is motivated by a desire to help, improve and transform social,

environmental, educational and economic conditions.

2. Serial entrepreneur

A serial entrepreneur is one who continuously comes up with new ideas and starts new
businesses. In the media, the serial entrepreneur is represented as possessing a higher propensity
for risk, innovation and achievement. Serial entrepreneurs are more likely to experience repeated
entrepreneurial success. They are more likely to take risks and recover from business failure.

3. Lifestyle entrepreneur

A lifestyle entrepreneur places passion before profit when launching a business in order to
combine personal interests and talent with the ability to earn a living.

Attributes of an Entrepreneur

1. Self-awareness - he knows who he is, what he is good at, and what he likes to do.
2. Self-motivated - self-motivation (keep you going and moving on)
3. Courage - willingness to take a chance and hope for the positive response (the risk)
4. Confidence – confident enough to get more prospect clients
5. Positive thinker – they think for success and bright sales
6. Patience - (customer is always right)
7. Decisiveness -
8. Experience – (primary reason why businesses fall within a few years of operation is lack
of business experience.
9. Knowledge – experience in one’s field is invaluable, but it is not enough. Once has a
better chance of succeeding by knowing, as much as possible.
10. Information-seeking – the entrepreneur continuously seeks for relevant information
regarding the market, clients, suppliers, and competitors.
11. Perseverance -
12. Drive – believe in your goal and be determined to succeed. Successful businessman
does not view obstacle or stumbling blocks as problems, but rather take as a challenge.
13. Risk-taking - not afraid of taking a risk
14. Innovative – entrepreneur are creative. They do things i new and different ways.
15. Opportunity-seeking – readily identifies opportunities for going into or to improve his
business and act on these opportunities.
16. Demand for efficiency and quality - setting high, but realistic standards of excellence for
himself. In order to meet this standards, he (entrepreneur) always strives to find a ways
to do things better, faster, and at a lower cost.
17. Systematic planning and monitoring – careful planner.... sets what are to be
accomplished, and meticulously assesses how today’s activity can contribute to the
accomplishment of his long-term goal
18. Persuasion and networking – easily establishes a network of personal and business
contact around him.
The Process of Entrepreneurship

The Role of Entrepreneurship in Economic Development

1. Entrepreneurship offers an economical and faster method of distributing goods and services that
accelerates economic development.
2. Entrepreneurship is capable of generating more jobs, income, goods and services.
3. Entrepreneurship improves the quality of life.
4. Entrepreneurship contributes to more equitable distribution of income, and therefore, eases social
unrest.
5. Entrepreneurship utilizes and mobilizes resources to make the country productive.
6. Entrepreneurship brings social benefits through the government.
Entrepreneurship and the Economy

Economic system - an organized way in which a state or nation allocates its resources
and apportions goods and services in the national community.

An economic system is the combination of the various agencies, entities (or even sectors as
described by some authors) that provide the economic structure that defines the social
community.

The economics system involves Production, allocation of economic inputs, distribution of

economic outputs, Landlords and land availability, households (earnings and expenditure
consumption of goods and services in an economy. Capitalists, Banks (finance institutions) and
Government. It is a set of institutions and their various social relations.

The basic and general economic systems are:

1. Market economy ("hands off" systems, such as Laissez-faire capitalism)

2. Mixed economy (a hybrid that blends some aspects of both market and planned
economies)

3. Planned economy ("hands on" systems, such as state socialism)

4. Traditional economy (a generic term for older economic systems)

5. Participatory economics (a system where the production and distribution of goods is

guided by public participation)

6. Gift economy (where an exchange is made without any explicit agreement for immediate
or future rewards)

7. Barter economy (where goods and services are directly exchanged for other goods or
services)