ENTREPRENEURSHIP

ENTREPRENEURIAL ACTIVITIES

 Entrepreneurial activity responds to policies that ensure the protection of new ideas, facilitate access to capital
and talent, allow the management of risks

 There are many efforts in various countries to uplift the lives of its citizens.

 Entrepreneurship is one of the key engines of economic growth

 Entrepreneurship is perceived to be the symbol of business innovation, determination, perseverance and

achievement.

 It is a catchword in this era of globalized economy

 It is a foundation and catalyst for economic growth and innovation across nation

 Small and Medium Enterprises (SMEs) are concrete manifestations of entrepreneurship.

DEFINITION OF ENTREPRENEURSHIP FROM EARLY TO PRESENT ENTREPRENEURSHIP

• Knight 1921 – having profits from bearing uncertainty and risk

• Schumpeter 1934 – carrying out of new combinations of firm organization—new products, new services, new
sources of raw material, new methods of production, new markets, new forms of organization

• Hoselitz 1952 – uncertainty bearing coordination of productive resource introduction of innovations and provision
of capital.

• Cole 1959 – purposeful activity to initiate and develop a profit oriented business.

• McClelland 1961 – taking moderate risk

• Shapero 1975 – a kind of behavior that includes : initiative taking, organizing or reorganizing of social economic
mechanisms to turn resources and situations to practical account and the acceptance of risk failure.

• Casson 1982 – decisions and judgements about the coordination of scarce resources.

• Ronstadt 1984 – dynamic process of creating incremental wealth. This wealth is created by individuals who
assume the major risks in terms of equity, time and/or career commitment of providing value for some product
or service. The product or service itself may or may not be new or unique.

• Drucker 1985 – behaviour rather than personality trait. Its foundation lies in concept and theory rather than in
intuition.

• Gartner 1985 – creation of new organizations

• Hisrich & Brush 1985 – process of creating something new with value by devoting the necessary time and effort;
assuming the accompanying financial, psychic and social risks and uncertainties; and receiving the resulting
rewards of monetary and personal satisfaction.

• Stevenson & Grousebeck 1989 – pursuit of opportunity without regard to resources currently controlled.

• Hart, Stevenson and Dial 1995 – pursuit of opportunity without regard to resources currently controlled, but
constrained by the founders’ previous choices and industry related experience.

• Shane 2003 – an activity that involves the discovery, evaluation and exploitation of opportunities to introduce
new goods and services, ways of organizing, markets, processes and raw materials thorough organizing efforts
that previously had not existed.

• Kuratko 2009 – dynamic process of vision, change and creation that requires an application of energy and
passion toward the creation and implementation of new ideas and creative solutions.

• Dyck and Neubert 2012 – conceiving an opportunity to offer new or improved goods or services, showing the
initiative to pursue that opportunity, making plans, mobilizing the resources necessary to convert the opportunity
into reality.
EXAMPLES OF ENTREPRENEURSHIP IN 10 COUNTRIES
1. United States – noted to be one of the friendliest countries for entrepreneurs, home to Apple, Google, Starbucks,
Walmart and Walt Disney.

2. China – home to budding entrepreneurs who manufacture different products that range from toys, gadgets,
electronics and cars; a lot of products have generic brand names.

3. Singapore – literally a small country that controls a significant portion of the economy in Asia, home to
entrepreneurs who innovate on existing services for local and international use.

4. Canada – entrepreneurs here are exploring opportunities over the internet such as the people from a region called
Sanikiluag, known for their wood carving skills and entrepreneurs are selling their products online.

5. India – one of the countries in the Asia Pacific rim with a strong base of entrepreneur organizations led by the youth
and women.

6. Taiwan – entrepreneurship here is encouraged through the small and medium enterprise incubation centers for the
purpose of nurturing young firms, new products and technologies. ***incubators – provide space, facilities,
hands on management assistance and access to technologies and financing to clients, helping them to survive
and grow during the start-up period.

7. Hongkong – with the knowledge based economy, it utilizes its human resources to make its economy the best
possible through entrepreneurship such as activities related to tourism and agricultural exports which
receives strong support from government and private sector.

8. Thailand – the extent of government support to entrepreneurs is very evident, in its international airport in Bangkok,
a huge section is subsidized by the Bureau of Small and Medium Enterprises for the promotion of local products.
Tourism for the international markets and agricultural exports are two major sources of income of Thai
entrepreneurs.

9. Malaysia – this country is becoming friendlier to entrepreneurs which is apparent in the growing numbers of
businesses which decided to locate here.

10. South Korea – it emerged from the Asian financial crisis better than any other country in the region, home to
Samsung and Kia.

CONTRIBUTIONS OF ENTREPRENEURSHIP TO THE ECONOMY AND SOCIETY

1. Create employment
2. Develop new markets
3. Introduces innovation
4. Generates new sources of materials
5. Stimulates investment interest in the new business ventures being created
6. Improves the quality of life
7. Serves as role models
8. Brings social benefits to the people
9. Utilizes and mobilizes indigenous resources
10. Provides more alternatives for consumers

What Is a Business Plan For?

 There are business plans written prior to setting up an enterprise, which are similar to a prefeasibility study and
a feasibility study.

 There are business plans that are written during the first few years of the enterprise in order to guide the
entrepreneur on which strategies would be most beneficial for the enterprise to take.

 There are business plans that are focused on bringing the enterprise to a higher level of growth, a period where
the enterprise has already reached its peak and would want to enter into another endeavor by recreating and
re-establishing itself.

The Business Plan Serves Many Masters

1. The entrepreneur who must set the navigational course

2. The investors and financier
3. The managers and staff of the organization so they know the strategies and programs of the enterprise