An Overview of Entrepreneurship in Tourism Industry

Entrepreneurship in Tourism and Hospitality

(THC109, HCM)
March 21, 2021

Submitted by:

Aquino, Mark.
Clemena, Silvamae.
Nicolas, Bernice Mae.
Ocampo, Jenyll.
Prieto, Kristine.
Vitug, Aacee Mae.

Submitted to:
Mrs. Josefa Angelica Cabuang, RN, CGSP, MBA.
 According to Joseph Schumpeter, Entrepreneurship is the process by which individuals or
a group of individuals (entrepreneurs) exploit a commercial opportunity, either by bringing a new
product or process to the market, or by substantially improving an existing good, service, or
method of production. This process is generally organized through a new organization (a start-up
company), but may also occur in an established small business that undergoes a significant change
in product or strategy (see below on growth). It is the process of starting and developing a
company, with the aim of delivering something new or improved to the market, or by organizing
the means of production in a superior way. This process is principally organized through the
formation of a start-up company, is managed by entrepreneurs, often under considerable personal
and financial risk, and is temporary in duration, as a phase in a business’s lifecycle. A key
distinction between start-ups and other small or young businesses is an aspiration (realized or not)
to substantially grow.

In 1985, Peter Drucker, the late management expert, defined entrepreneurship as “the act of
endows resources with a new capacity to create wealth”, among the most specific and meaningful
definition of terms. More literally, the word “entrepreneurship” and “enterprise”. Yet even in
French, the related word entrepreneur did not take on its current meaning until the economist Jean-
Baptiste Say so imbued it in 1800.

In the English language, until the mid- nineteenth century, when the French term entrepreneur
began to enjoy common usage outside France, the term undertaker (a literal translation of the
French word) was sometimes used in its stead. More frequently, however, the more evocative term
“adventurer” was preferred. In this vein, the American economist Willian Baumol once defined
the entrepreneur as “the individual willing to embark on adventure in pursuit of economic goals.”
These individuals and the often-unintended impact of their adventures on the course of the word
history are the focus of this book.

Conducting research into this subject, I was particularly intrigued by such examples as
Mesopotamian merchants’ creation of the urban market economy, Chinese tea traders’ ingenious
invention of ”flying” (.i.e., paper) money, the central role of the entrepreneur in the onslaught of
European colonization from the sixteenth through the nineteenth centuries, and the current
“flattening” of the world’s economic playing field from Cameroon to Cambodia a product of the
modern entrepreneur’s quest for cheaper labor and larger markets.

Throughout history, the entrepreneur’s ceaseless quest to discover and/or develop new markets
has been pursued through a variety of means, all of which have has an enormous impact on society.
Among others, these methods have included overland and overseas trade, radical innovation of
both products and processes, social engineering, territorial conquest, and most recently, interplay
travel in the form of space tourism for ultrarich.

The connection with entrepreneurship takes into account the economic development of tourist
areas, aims to create new sustainable businesses by increasing the capacity and willingness of
enterprises to develop, organize a business, to manage risk and profit.

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The researchers found that the USA is a world leader when it comes to financing new businesses
through venture capital. This type of financial capital is provided to early-stage, high-potential and
riskier start-up companies. This enables many new businesses to develop. The US excels because
it is strong in so many areas that matter. Entrepreneurship plays a crucial role in the US economy
and as result policy initiatives are created to encourage entrepreneurial behavior.

Entrepreneurship has become entrenched in Asia. Advancements in technology and access to

information have changed things dramatically. Asians broadly speaking are more aware of
economic opportunities than ever before. For example, in the financial technology and big data
field especially, opportunities in Asia far exceed those in the west. With eyes opened, fewer people
are following the traditional path of joining an existing family firm. Budding Asian entrepreneurs
face many challenges. Many governments have established goals for entrepreneurial development,
and high-levels of academic achievement and university education are signs that Asia’s startup
boom has yet to see its peak. This is all clear evidence of Asian startup-renaissance.

According to Evangelista (2013) The Philippine Development Plan (PDP) further reinforces the
thrust on entrepreneurship through trade and investment to achieve the government’s goal of
economic development and job creation. Based on the plan it measures for macro-economic
stability, employment, trade and investment, agribusiness, power-sector reforms, infrastructure,
competition, science and technology, and anti-corruption are being pursued to strengthen
Philippines’s competitiveness and contribute to job creation.

Milgram (2019) stated that in the northern upland Philippines, a new group of social entrepreneurs
are working with Cordillera weavers to develop innovatively designed but indigenously inspired
textiles that respond to the global market for artisanal goods. The social entrepreneurs champion
conducted a business transparency, quality production, ongoing producer and buyer relationships
and community welfare.

Furthermore, Tibaldo (2018) stated that the Entrepreneurs in Baguio City and Benguet conducted
the opportunity for their business to have that much needed online visibility without a need for a
full website. They understand that developing a website is really expensive and sometimes without
proper management the website is neglected and it does not bring any added revenue to the
business. Baguio City one-stop-business-shop adding up to the more than eight hundred NCs
meant to boost and provide assistance and help boost entrepreneurship around the country.

In order to be a successful entrepreneur, there has to be plenty of preparations. It is not only about
putting together the structure and documents to start a business, but also having the right mindset
and plan of action for the business to grow and keep steady. For strategies, it is best to turn to
experienced and successful entrepreneurs.

Milton Chang is a successful entrepreneur and a coach entrepreneur. He is the managing director
of Incubic, was the CEO of New Focus Inc. and Newport Corporation, and the author of the book

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Towards Establishing a Successful Technology Business Entrepreneurship. He writes columns in
the Business Forum section of "Laser Focus World" magazine. and shares his experience and
insights about starting and keeping a business. One of his strategies and advice to new
entrepreneurs is to stay within your area of expertise when coming up with a new product idea, do
not just chase what's popular if it's outside of your knowledge, it is risky. Use what you know to
be competitive. (Chang, 2017). New entrepreneurs cannot predict how their business will turn out.
It is important to have careful planning. Your competitive edge would be your own skills and
experience. Taking a big risk such as pursuing a project in which you have no knowledge of is like
jumping into the ocean without knowing how to swim.

Another successful entrepreneur is Richard Melman. He is the founder of Lettuce Entertain You
Enterprise based in Chicago that has over 100 restaurants. His strategies involve 4 steps which are
to (1) “mine the past and future”, (2) “start with the product”, (3) “response to changes and know
your limits”, and (4) “innovate outside, replicate inside.” (Melman, 2014, p.78).

The First “mine the past and the future” means that we should get inspiration from the past for our
future projects. New ideas come from somewhere. It is rare to come up with new ideas without
inspiration or origin at all. Being creative comes from being imaginative and being inspired. The
second “start with the product” means that the product is the foundation where we will build our
business around on. The third “response to changes and knows your limits” is simply to tell us to
be adaptable especially in these changing times. As we grow older, the preference of the market
changes, so we should understand our limits when it's time to follow the new trends. The last
“innovate outside, replicate inside” tells us to create new products for our customers, and provide
them with new and positive experiences, but be consistent when it comes to inside operations such
as training, SOP’s, marketing, product quality and anything that happens within the business
should steady follow a structure because this is what keeps the business going. Products can be
changed from time to time depending on the preference of the market but the quality of work in
the business should always stay the same.

Swathy, S. & Benazir, Y. (2014) argued that an individual entrepreneur must continue to face
circumstances, unknown challenges, possible risks that might come along and also to learn from
mistakes in the past. However, challenges cannot be avoided. It's already part of being an
entrepreneur. The challenges faced by entrepreneurs are financial, related problem, government
related problem, production related problem and labour related problem.

Challenges of the new entrepreneurs can be overcome by several strategies. Fong, E., Jabor, M.,
Zulkifli, A., & Hasim, M. (2019) suggested that being optimistic towards challenges faced,
expanding the idea and vision to potential investors, enrich oneself by reading inspiring materials
and to research the target market and analyze competitive products are some of the strategies to
overcome such challenges. These strategies suggested by the author of the study will help the
entrepreneurs to face and overcome them and also to further develop their businesses.

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REFERENCE:

• Chang, M. (2017, April 1). Successful entrepreneurship means knowing how business
decisions get made. Laser Focus World, 53(4), 56-54. Retrieved from
http://web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=8&sid=06e79f89-e650-
451b-9ce2-5241131dd3a2%40sessionmgr101
• Buchanan, L. (2014, November 1). How to come up with a million ideas-and make them
work. Inc., 36(9), 78-78. Retrieved from
http://web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=12&sid=06e79f89-e650-
451b-9ce2-5241131dd3a2%40sessionmgr101
• Imperial College London. (2014). The USA is the most entrepreneurial economy in the
world, according to the 2014 Global Entrepreneurship and Development Index (GEDI).
Retrieved from https://www.sciencedaily.com/releases/2014/04/140409094234.htm
• Global Entrepreneurship Network. (n.d.). Entrepreneurship in Asia. Retrieved from
https://www.genglobal.org/gen-asia/entrepreneurship-asia
• Milgram, B. (2019). Fashioning frontiers in artisanal trade: social entrepreneurship and
textile production in the Philippine Cordillera. [Review of Fashioning frontiers in
artisanal trade: social entrepreneurship and textile production in the Philippine
Cordillera.]. Retrieved from:
http://web.a.ebscohost.com/ehost/detail/detail?vid=7&sid=41371c44-59c2-46a7-9bf9-
8c6d9949d1cc%40sdc-v-
sessmgr03&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#AN=148112292&db=a9h
• Evangelista, R. (2013, November 15). Entrepreneurship in the Philippines: Opportunities
and Challenges for Inclusive Growth. Retrieved from Center for International Private
Enterprise website: https://www.cipe.org/resources/entrepreneurship-philippines-
opportunities-challenges-inclusive-
growth/#:~:text=In%20the%20Philippines%2C%20entrepreneurship%20is
• Tibaldo, A. (2018, June 25). Entrepreneurship as a way of life. Retrieved from Sunstar:
https://www.sunstar.com.ph/article/1749688/Baguio/Opinion/Tibaldo-Entrepreneurship-
as-a-way-of-life
• Swathy, S. & Benazir, Y. (2014) A study on the challenges faced by Entrepreneurs.
International Journal of Marketing Research Review. Research Gate. Retrieved from
https://www.researchgate.net/publication/318094156_A_study_on_the_challenges_faced
_by_the_Entrepreneurs
• Fong, E., Jabor, M., Zulkifli, A., & Hasim, M. (2019) Challenges Faced by New
Entrepreneurs and Suggestions How to Overcome Them. Faculty of Social Sciences and
Humanities, Universiti Teknologi Malaysia, 81310 UTM Johor Bahru, Johor. Atlantis
Press. Retrieved from file:///C:/Users/HP/Downloads/125944664.pdf
• Ferreira, N. (2020). What is Entrepreneurship? Retrieved from
https://www.oberlo.com/blog/what-is-entrepreneurship
• Schumpeter, J. (2021). What is Entrepreneurship? Retrieved from
https://startupsusa.org/what-is-entrepreneurship/

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• Carlen, J. (2016). History of Entrepreneurship. Retrieved from
https://books.google.com.ph/books/about/A_Brief_History_of_Entrepreneurship.html?id
=8tkbDQAAQBAJ&printsec=frontcover&source=kp_read_button&redir_esc=y#v=onep
age&q&f=false

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