Identify the different types of entrepreneurs,

Describe the entrepreneurial process,

Describe the typical characteristics of Filipino
entrepreneurs, explain the factors that influence
individuals to pursue entrepreneurial outcomes,
Explain how entrepreneurs think and make
decisions, and
Explain the role risk and failure in the
entrepreneurial process.
S T E V E J O B S
M A R K Z U C K E R B E R G
B I L L G A T E S
T O N Y T A N C A K T I O N G
L U C I O T A N
comes from the French
word entreprendre which
means “to undertake.” It is
a reference to individuals
who have initiated the
establishment of a
business enterprise.
It is the process of designing
launching and running a new
business, which typically begins
as a small business, such as
start-up company offering a
product, process or service for
sale or hire. The people who
created these businesses are
called entrepreneurs.
In The Theory of Economic
Development, a classical work of
Joseph Schumpeter, he emphasize
the role of entrepreneurs in the
process of economic transformation.
Entrepreneurs introduce to the
market the innovations in the form
of new products, new processes, new
markets, and news organizations.
Mega Entrepreneurs
Micro Entrepreneurs
They are the individuals who have generated substantial
value and profits from innovations in a short period of
time.
They are willing to absorb huge risks using enormous
amounts of capital in their business ventures
(Quickmba.com)
They are fast in creating big amount of value-added
products/services.
They contributed much of the economic progress of the
developed countries in the West and attracted competitors,
imitators, and brought dynamism to the industries they
operate in and ultimate prosperity to the entire economy.
They are the entrepreneurs found in developing countries
that make limited value-added and profits.
Their contributions are minimal and attract few
competitors and imitators.
Because they are short in funds and inadequate in skills,
they cannot undertake projects that involve huge capital,
sophisticated technology, and extensive risks.
They engage in micro and small businesses as an
alternative to formal employment.
Peter Drucker, in his book Innovation and
Entrepreneurship, emphasized the “discipline” in
the starting and managing a business. Even if
contributions of entrepreneurship Can vary, what
is important is the system entrepreneurs follow to
achieve their goals.
Discovery
Development of the concept
Organizing resources
Implementation
Reaping the returns
It refers to the
recognition of a business
idea or the detection of
opportunities that could
make money for the
entrepreneur.
It gives more details on
how the general business
idea can be realized.
It describes the
process of identifying,
sourcing, and financing
human, non-human,
and other resources
needed for the conduct
of the business.
It is the process of carrying out the business plan.
It covers a number of activities, including the
management of human, physical, technological, and
financial resources of the business.
It includes mechanism for confronting actual and
potential rivals as well as for responding to the
various opportunities, challenges, and
developments being posed by external
environments.
It pertains to strategies
related to the expansion of
the business firm. It also
covers mechanisms for
addressing conditions in
the business environment
that may affect the future
of the firm.
Entrepreneurial Traits and Creation of
Value-Added
Entrepreneurial Traits and Entrepreneurial
Intentions
Level of Education
Employment Status
Entrepreneurs Wealth
Risk Appetite
Studies have shown that
entrepreneurs need some
formal education to be
able to seize the
opportunities presented
by inventions,
innovations, and other
technological
developments.
Individuals who become entrepreneurs in
developed countries are usually former
employees of companies in the formal sector.
The choice of pursuing entrepreneurship can
be viewed as a step in the entrepreneur’s
professional development.
Usually, mega entrepreneurs’ source of funds
are from their own wealth and from their
families’. Some can be from their past
employment and others borrow from their
wealthy parents.
Risks are associated with uncertainties in
business operation. These uncertainties can
threaten the survival and stability of a
business enterprise. Entrepreneurs are risk-
takers.
Internal factors
External factors
Demographics Environmental support
Personal traits Environmental
Psychological influence
characteristics
Individual skills
Prior knowledge
Social ties
Filipino engage in entrepreneurship because they
see it as an opportunity for income creation and
employment. Likewise they get into business
enterprise because of their apparent capabilities to
undertake entrepreneurial activities.
More females are engaged in entrepreneurship than males
in the early stage of entrepreneurial activity.
Entrepreneurship attracts more young individuals. It
becomes a viable employment option for the young.
Filipino entrepreneurs are fearful of business failure. This
is a legitimate concern since a number of enterprise close
down at a various stages in life of an enterprise. The
reasons were: unprofitable business, personal reasons
(illness, death in the family, maternal responsibilities),
financing problems, and shift to formal employment.
Critical thinking
Creative thinking
Strategic thinking
It refers to the systematic and rational way
of providing an answer to a question. It is
systematic since it follows steps in responding
to an inquiry.
It refers to thought processes that bring
about discovery of new ideas. Unlike critical
thinking, it does not follow a systematic or
analytical process since it looks at things
from different perspectives. Sometimes, it
starts from a dream, an insight, or from mere
observation.
It involves thought processes that assess a
current situations, which can be useful in the
formulation of plans for the future. It is
similar to critical thinking since it uses an
orderly and logical system in its assessment.
These can be described as uncertain
situations and developments that can
increase the probability of loss or business
failure.
Two types of risks : internal risk and
external risk.
Risk management – It is the process of
identifying, assessing, and responding to
these risks.
It pertains to dangers coming from the
management of resources of a business
enterprise that may imperil its operations.
These are threats coming from various
environments outside the business firm.
These can endanger the operations and
profitability of the firm.
It refers to the ability of the individuals to be
involved in the process of producing several
ways of decision-making based on the
identification and management of changes in
their environment. It requires quality of
flexibility, dynamism, and self-control on the
part of the entrepreneur.