Entrepreneurship

➢ Business that offer goods and services that are valuable from the
Salient Features of Entrepreneurship buyer's perspective are operating within the concept of
Entrepreneurship entrepreneurship
➢ The ability to be able to know what products and services are ➢ Planning
needed by people, and to be able to provide these things at the ❖ An important principle of management
right time, at the right place and to the right people at the right ❖ Goals must be clearly set
price Entails opening and managing self-owned enterprise
➢ The art of observing correct practices in managing and operating ➢ The business should be opened and owned by the entrepreneur
a self-owned wealth-creating business enterprise by providing and he should manage it himself
goods and services that are valuable to the customers ➢ Intrapreneurship
➢ Refers to that of being engaged in small and medium enterprises ❖ Businesses managed by other people for the benefit of the
or establishing and managing a business of his own owners
➢ Entrepreneur A risk-taking venture
❖ French; "entreprendre" ➢ Risk is inherent in an entrepreneurial venture
• To undertake ➢ There is always uncertainty or the possibility of loss or failure in a
❖ A person who organizes, operates, and assumes the risk of business venture
business ventures
❖ A person who strongly advocates and correctly practices the Theories on Entrepreneurship
concepts and principles of entrepreneurship in operating and Innovation theory
managing the self-owned business venture ➢ Joseph Schumpeter
• This venture is also called "enterprise" ❖ The Theory of Economic Development
An art of correct practices ➢ "An economy without revolutionary change is deemed to be static
➢ Entrepreneurship is not stagnant, it is continuously grows, and cannot expect any economic development"
develops, improves, and expands ➢ Innovation forms
➢ It needs creativity, searching for something new, finding ways to ❖ New product
transform new ideas ❖ New production method
➢ Creativity and innovation are the soul of entrepreneurship ❖ New market
A wealth-creating venture ❖ New supplier
➢ The wealth created by the small business must improve the life ❖ New industry structure
of the owner and cascade to the development of the local Keynesian Theory
economy and eventually of the whole country ➢ John Maynard Keynes
Provides valuable goods and services ❖ The General Theory of Employment, Interest, And Money
➢ Government intervention is important for economic development
Alfred Marshall Theory
➢ Factors of production
❖ Land Entrepreneurial character traits
❖ Labor Character trait
❖ Capital ➢ The mark or attribute that distinguishes an entrepreneur from
❖ Entrepreneurship the owner of an ordinary small business
➢ Entrepreneurs are the prime movers in the organization Achievement cluster
Risk and uncertainty-bearing theory ➢ Entrepreneurial character traits that are directly related to the
➢ Frank Knight entrepreneur's desire to be an achiever
❖ An entrepreneur shout possesses risk-taking skills ➢ Does not settle for mediocrity but instead aspires for quality
➢ Risk and uncertainty will eventually be rewarded by high profits ➢ Achievers by nature and they strive to achieve
Max Weber's Sociological theory ➢ Constantly set the things to be achieved and repeatedly find
➢ Social cultures are the primary driving elements of ways to achieve them
entrepreneurship ➢ Characteristics
➢ The entrepreneurs should consider customs, traditions, and ❖ Opportunity-seeker
religious beliefs • The ability to identify with great ease the most appropriate
Kaldor's technological theory entrepreneurial opportunities
➢ Nicholas Kaldor • An entrepreneur that sees and acts on new business
❖ Modern technology is an essential factor in production opportunities and seizes unusual opportunities to obtain
➢ Proper application of modern technology will promote efficiency necessities of the business (eg. Financing, equipment, land,
in producing goods and services work, space, and assistance)
Leibenstein's gap-filling theory ❖ Committed
➢ Henry Leibenstein • The display of full commitment to the work or endeavor
➢ Entrepreneurs should recognize market trends and must extend • Does not entertain negativism and skepticism
assistance to ventures experiencing failures and deficiencies • an entrepreneur accepts full responsibility for what has
Kirzner's learning-alertness theory been promised to the customers, establishes proper
➢ Isarael Kirzner coordination with and among workers, and seeks to
➢ Attributes of an entrepreneur prioritize the satisfaction and interest of customers
❖ Spontaneous learning • Commitment is directly related to interest
❖ Alertness • Lack of interest is the lack of commitment
➢ An entrepreneur must be alert in recognizing opportunities and ❖ Persistent
ignorance of customers • An entrepreneur takes repeated or different actions in
order to overcome the obstacles, make personal sacrifices
or exert extraordinary effort to compete the required task,
and stick to their own judgement in times of opposition
and failure
• Persistence is the foundation of commitment
 ❖ Risk-taker
• Risk is inseparable from entrepreneurship because of
uncertainty
• Types of risk takers
o Aggressive risk-taker
− Not scared to take any risks for the business
o risk-taker
− Calculates and analyzes the situation before taking
risks
o Conservative risk-taker
− Satisfied with managing a small business and a
regular clientele
• An entrepreneur takes risks with all the precautionary
measures
• They evaluate thoroughly all the available courses of
action before making a final decision
❖ Efficient and quality-oriented
• An entrepreneur highly values efficiency and the concept
of quality
o They always perform the required tasks in accordance
with existing standard of excellence or continuously
improves on their past performance and strives to do
things better and faster with minimal cost
• An entrepreneur must incur the lowest minimal cost in the
production of goods and services without sacrificing the
quality
o The quality of the product or service is measured by the
response of customers to them
• Successful entrepreneurs are productive
Power cluster
➢ A support the character traits in the achievement cluster
➢ The plan that serves as the blueprint of the activities to be
undertaken by the entrepreneur
➢ Goal-setter
❖ Setting goals and objectives
• Serves as the guiding points of the business
• Goals are long term while objectives are short-term
❖ Goals and objectives are SMART
• Specific
• Measurable
• Achievable
• Realistic
• Time-bound
➢ Information-seeker
❖ They constantly make decisions that will affect the operations
• Must be based on specific and relevant economic, financial,
and industry data
❖ Entrepreneurs must have a strong basis to make a decision
❖ A successful information-seeker
• Seeks relevant information on target customers, suppliers,
and competitors
• Verifies available information from various sources like
printed materials and agencies
• Seeks opinions and advice from experts in the business
field
• Finds other possible ways to make sure that the desired
information is complete
➢ Systematic planning and monitoring
❖ An entrepreneur follows a systematic pattern of planning
processes and monitoring approaches
❖ Systematic
• A rational and logical approach in performing activities
❖ Planning
• Setting of goals and objectives
❖ Monitoring
• Evaluation of the activities and adapted courses of action
❖ An entrepreneur
• Gathers all the qualitative and quantitative information
before formulating the plans
• Develops a logical step-by-step approach in the
formulation of plans
• Monitors the progress of activities and switches to
alternative strategies when deemed necessary
• Evaluates constantly the alternatives in achieving goals
 Affiliation cluster Interpersonal skills
➢ Reflect the degree of the interpersonal relations maintained by ➢ Skills in verbal communication
the successful entrepreneur ➢ Skills in listening
➢ Establishes the relationship of them with the supplier, ➢ Skills in negotiating
competitors, workers etc. ➢ Skills in non-verbal communication
➢ How entrepreneurs project themselves in the business ➢ Skills in leading
community Competitive advantage
➢ Persuasive and positive networker ➢ Refers to the strategic position and condition of the
❖ They are persuasive and can easily influence and win over to entrepreneurial venture
their side ➢ characteristics
❖ They are able to establish good and positive networking ❖ Provides the necessary attributes to outperform competitors
❖ They employ or adopt a positive way of influencing others ❖ Distinguishes the venture from competitors
➢ An entrepreneur ❖ Achieves superior performance in the industry
❖ Adapts specific strategies that will influence and convince ❖ Produces a product or develops production methods that can
others while maintaining the highest degree of respect hardly be copied by competitors
❖ Makes use of positive contacts in the business community in ➢ Generally, establishes sustainability of the business amidst the
order to meet the goals competitions
➢ Self-confident
❖ A high-level of self-confidence
❖ A gradual process where the past correct experiences have
significant contribution to the present

Entrepreneurial Skills and Core

Competencies
Cognitive skills
➢ Ability to understand written materials
➢ Ability to learn and apply new information
➢ Ability to solve problems systematically
➢ Ability to create new ideas
➢ Ability to innovate new products and procedures or methods
Technical skills
➢ Technical technology
➢ Feasibility study and business plan preparation
➢ Technical writing skills
➢ Marketing
➢ Management and finance