Entrepreneurial Management

Module 1 – Introduction to Entrepreneurship

Name: Mikaela H. Bordeos Course/Year/Block: BSBA Management 4-A

Study Question 1:
What is/are the contribution of Joseph Schumpeter in the field of
Entrepreneurship and explain?

 Joseph Schumpeter’s contribution in the field of entrepreneurship was

recognized by many people. One of the terms that he explained was the creative
destruction in which talks about the innovation of a new product and new
business. He also introduced the theory of entrepreneurship in which he believes
that creativity or innovation is the key factor in any entrepreneur's field of
specialization. According to him, knowledge can only go a long way in helping an
entrepreneur to become successful. Lastly, he sees capitalism as a sort of ongoing
revolution that disrupts the current social and economic hierarchy. As of this day,
young entrepreneurs become the revolutionary to establish and create change.

Study Question 2:
How do Entrepreneurs take risk and why do you think it is important?

 Entrepreneurs take risk by putting their career, personal finances and even
their mental health at stake in order to support their selves. To be a successful
entrepreneur, one must be prepared for the risks and challenges that will come. It
is relevant to take risks as an entrepreneur in order to learn from the errors
committed. These risks are beneficial to an entrepreneur as it prepares them on
how to manage and survive these challenges making an entrepreneur grow and
successful.

Study Question 3:
Explain the three types of uncertainty?
 Risk – It can be measurable statistically such as the probability of drawing a

red color ball from a jar containing 5 red balls and 5 white balls.
 Ambiguity – It is hard to measure statistically such as the probability of

drawing a red ball from a jar containing 5 red balls but with an unknown
number of white balls.
 True Uncertainty or Knightian Uncertainty – It is impossible to estimate or

predict statistically such as the probability of drawing a red ball from a jar in
which the number of red balls is and the number of other-colored balls is
unknown.

Study Question 4:
Why do you think small business owners are primarily focused on surviving rather
than growing?

 For me, as a young entrepreneur who owns a small business, I will

definitely focused on surviving rather than growing since based from my
experience, small business is easy to handle and manage. In addition, there are
minimum legal requirements that are being required in a small business
compared to other large companies. I prefer to focus on surviving the small
business that I own and then open some other branches that are easy to manage.
Lastly, I think small business owners do not want to focus in growing or expanding
since it is more open for risks compared to small businesses that can easily
overcome the risks that they are facing.

Study Question 5:
How important is Marketing and Marketing Plan to Small Business and
Entrepreneurs?

 Marketing plans are essential tools because they serve as road maps for all
parties engaged in a business. Entrepreneurs will be more likely to think
thoroughly about their business and profit potential if they have a solid marketing
plan in place, which will help them make better business and marketing decisions.
Also, it will help you determine your target market and how your product or
service will benefit it. It will give you ideas to identify how you can bring in new
clients and encourage your current customers to buy your goods or services
again.

Assessment Task 1
Create and explain your own definition of entrepreneurship based on the image.

 Entrepreneurship is described as the process of designing, launching and

operating a new business which typically begins as a small business. It is the
process by which entrepreneurs take advantage of a business opportunity, either
by introducing a new product or by upgrading an existing good, service or
manufacturing method.
Assessment Task 2
Compare and contrast Entrepreneurship and Small Business

 Entrepreneurs are known as the ones who focus on new, creative products
and services, while small businesses typically deal with well-known and
established products and services. Small business owners deal with known
dangers whereas entrepreneurs deal with unknown hazards. The key difference
between these two is that small business is a limited size firm owned and
managed by an individual or a group of individuals, whereas entrepreneurship is
described as the process of designing, launching and operating a new business
which typically begins as a small business.