THE ENTREPRENEURIAL MIND

Christian P. Tan
 Table of Contents

Module 1: Nature of Entrepreneurial Behavior and Enterprising Skills 1

Introduction
Learning Objectives
Lesson 1. Historical Development of Entrepreneurship 2
Lesson 2. Evolution of Entrepreneurship 3
Lesson 3. Concept and Contribution Thought to Entrepreneurship 5
Lesson 4. The Entrepreneur 6
Lesson 5. The Importance of Entrepreneurship 7
Assessment Task 1 11
Summary 11
References 12

Module 2: Entrepreneur and Entrepreneurial Activities 14

Introduction
Learning Objectives
Lesson 1. Theories of Entrepreneurship 15
Lesson 2. Entrepreneurial Activities 23
Lesson 3. Attributes of Entrepreneurial Behavior 24
Assessment Task 2 30
Summary 32
References 33

Module 3: Variation in Entrepreneurship 34

Introduction
Learning Objectives
Lesson 1. Advantages of becoming Entrepreneur 35
Lesson 2. Drawbacks of being an Entrepreneur 36
Lesson 3. Common Myth about Entrepreneurs 37
Lesson 4. Categories and Types of Entrepreneurs 39
Lesson 5. Entrepreneurial Governance 43
Assessment Task 3 45
Summary 46
References 48

Module 4: Female Entrepreneurship 49

Introduction
Learning Objectives
Lesson 1. Female Entrepreneurship 50
Lesson 2. Female Entrepreneurship in the Philippines 50
Lesson 3. Modern Trend in Female Entrepreneurship 51
Lesson 4. The Roles and Positions of Women through Centuries 54
Lesson 5. Differences between Men and Women in Business 56
Lesson 6. Characteristics of Women Entrepreneurship 56
Lesson 7. Contributions by Women Entrepreneurs to Sustainable Economic Growth 58
Lesson 8. Challenges faced by Women Entrepreneurs 60
Lesson 9. New Leadership Development Paradigm in Women 62
Assessment Task 4 64
Summary 64
References 65
Course Code: SSP 04

Course Description: This course enables the students to enumerate and identify
entrepreneurial traits, behavior and competencies. During the course, the
student should be able to perform self-assessment to determine their level of
predisposition to entrepreneurs. It also includes personal entrepreneurial
competencies, management styles, business ethics, responsibilities, and duties
of entrepreneurs.

Course Intended Learning Outcomes (CILO):

At the end of the course, students should be able to:
1. analyze the essence and roles of entrepreneurship in the effective
commercial creation of new ideas, innovation and creativity.
2. identify personal qualities that make the best use of entrepreneurial
resources possible.
3. confirm the concept of an entrepreneurial venture.
4. evaluate entrepreneurship opportunities and challenges through
digitization, e-commerce and global change.
5. explore the style of entrepreneurial leadership and management.
6. demonstrate awareness of entrepreneurial thought, entrepreneurial
opportunities and entrepreneurial approaches.
7. outline the importance of recognizing the definitions and values of
entrepreneurial behavior.

Course Requirements:
▪ Assessment Tasks - 60%
▪ Major Exams - 40%
Periodic Grade 100%

PRELIM GRADE : 60% (Activity 1-4) + 40% (Prelim exam)

MIDTERM GRADE : 30% (Prelim Grade) + 70 % [60% (Activity 5-7)
+ 40% (Midterm exam)]
FINAL GRADE : 30% (Midterm Grade) + 70 % [60% (Activity 8-10)
+ 40% (Final exam)]
 MODULE 1
THE NATURE OF ENTREPRENEURIAL BEHAVIOR
AND ENTERPRISING SKILLS

Introduction

Entrepreneurial behavior has long been a core of entrepreneurial education which

investigates various aspects of entrepreneurship development, competencies and business
ventures. This module will review the background of the entrepreneurship and its growth.
Entrepreneurs and the small business sector have become recognized as important factors that
determines an economy's fundamentals. Essentially, the lessons will help students understand
the essence of entrepreneurship and will ultimately help them improve their entrepreneurial skills.

Learning Outcomes

At the end of this module, students should be able to:

1. outline the historical origin, context, and evolvement of entrepreneur.

2. emphasize the impact of entrepreneurship and its significance to entrepreneurial behavior.
3. characterize who the entrepreneur is and highlight his significant contribution.

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Lesson 1. Historical Development of Entrepreneurship

The origin of entrepreneurship remains unclear, but there are indications that the term
'entrepreneur' sometimes originated in the Middle Ages in Europe. “The word "entrepreneur" is of
French origin-from the word "to entreprendre" which basically means "to undertake" (Orcullo,
2004). This can be described as "to take over" in the Malay language.

According to Hisrich and Peter, (1988), entrepreneurship is a dynamic process of creating

wealth. Wealth is created by an individual who bears the risk of a 'equity,' a dedication to time and
career, or who provides importance to a product or service (Orcullo, 2004). It is an idea of making
something new, taking into consideration effort and time to adapt to the current financial, social
and psychological risks. And receive financial, personal satisfaction and freedom benefits.

The following timeline shows several of the most prominent entrepreneurship academics
and think tanks (French, English, American, German, and Austrian) whose perspectives have
helped to shape and from which their ideas have developed. Schools of thought are simply groups
of people who may or may not have known each other personally, but who hold similar views or
philosophies.

Figure 1.1. Historical Development of Entrepreneurship

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Lesson 2. Evolution of Entrepreneurship

Table 1.1. The evolution of views on the economic nature of entrepreneurship

Date Author of definition Content of entrepreneurship

1725 Richard Cantillon
(1959)
1776 Adam Smith (2007)
1830 Jean-Baptiste Say
(1896)
1912 Josef Schumpeter
(1936)
1964 Peter Drucker
(1985)
1975 Israel Kirtsner
(1998)
An entrepreneur is a subject of market relations, able to
predict, to take risks, to take responsibility for decisions in
standard and risky situations (Terentyeva and Korneyko,
2017).
An entrepreneur is guided by his own benefit. Pursuing his own
interest, he serves the public interest best (Terentyeva and
Korneyko, 2017).
An entrepreneur promotes a rational combination of factors of
production on the basis of transfer of resources to the sphere
of higher productivity (Terentyeva and Korneyko, 2017).
The main thing in entrepreneurship is the implementation of
new combinations, while the independence and the ownership
are not the fundamental characteristics of entrepreneurship
(Terentyeva and Korneyko, 2017).
Entrepreneurship is a concrete activity, practice, the content of
which is the innovation in all spheres, including in
management. Profit is not the main objective of
entrepreneurship (Terentyeva and Korneyko, 2017).
The entrepreneurial element is the vigilance of the individuals
to potentially profitable opportunities. He considers
entrepreneurship as arbitration or as an activity leading to
equilibrium (Terentyeva and Korneyko, 2017).

The essence of entrepreneurship, as shown in Table 1, relates to the sense of production

relations and socio-economic ties. At each point of the development of the market economy,
businessmen have sought to achieve their objectives and roles (Terentyeva and Korneyko, 2017).
In short, the key concern of entrepreneurship was the field of trade, since it was the initial
accumulation of capital and the conception of a market economy took place.

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2.a Definitions in 16th, 17th and 18th Century
Earliest period, stated that the concept of entrepreneurship began as early as Marco Polo,
who is coming to the Middle East for business. Marco Polo has signed an agreement with the
capitalists to market their products.

Under the deal, the merchant adventurer lent at a rate of 22.5 percent, including insurance.
“Capitalist was a passive risk carrier, and a merchant adventurer took an active part in trade,
taking both emotional and physical threats” (Arthur and Hisrich, 2011). Whenever the merchant
adventurer managed to sell the goods and completed the journey, the proceeds are shared with
the capitalist taking most of them up to 75%, while the merchant adventurer settled for the
remaining 25%.

In the 17th century, the evolution of entrepreneurship can be linked to the relationship
between risk and entrepreneurship. Entrepreneur is a person who has entered a contractual
agreement to provide a business or to provide the goods that have been agreed upon. The price
of the contract shall be set. The businessmen are then solely responsible for the company's gains
and losses. The monopoly of French trade eventually led to the failure of the company. Merchants,
farmers, craftsmen, and so is an entrepreneur, they buy products at a certain price and sell them
at a price that is unknown, with risks (Arthur and Hisrich, 2011).

Throughout the 18th century, the person with capital was separated from the person who
required money. The entrepreneur was distinguished from the provider of money. Another
explanation for this distinction was that industrialization was taking place all over the world.
Thomas Edison, founder of a variety of inventions. He was designing new innovations and was
unable to fund his own inventions. Edison was a resource consumer or an entrepreneur, not a
manufacturer or a venture capitalist (Arthur and Hisrich, 2011).

2.b Definitions in the 19th and 20th Century

Entrepreneurs are not always aligned with management in the 19th and 20th centuries.
The entrepreneur organizes and manages a firm for personal benefit. Materials consumed in the
sector, for the use of land, for the services that it employs and for the resources that it needs.

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The role of entrepreneurs in the middle of the 20th century is to reinvent or fundamentally change
the pattern of production through innovations. For example, Edward Harriman, who rearranged
the U.S. railroad, and John Morgan, who set up his large banking house by restructuring and
financing the country's enterprises.

2.c Definitions in the 21st Century

Entrepreneurs is considered as the symbol of the Free Enterprise economy in the 21st
century. Entrepreneur of the century has created many goods and services and is able to face a
lot of market risks. In 1995, Hisrich, Peter and Shepherd found an entrepreneur to be the manager
who monitors, systematizes, orders raw materials, arranges services, deploys his own
inventiveness, skills, designs and manages the company.

Lesson 3. The Concept and Contribution Thought to

Entrepreneurship

Key Concepts of Entrepreneurship

Innovative and imaginative approach to the market and the manner in which a new
company is created. Such a response can actually occur in any realm of social activity, enterprise,
agriculture, education, social work, etc. (Panganiban, 2017).

Main drivers of economic growth and job creation. This offers many people job options
that suit their needs better than wage jobs. In addition, self-employment or start-up is the reaction
of large numbers of people to job losses in the ongoing global economic crisis (Panganiban,
2017).

Entrepreneurship is the act of becoming an entrepreneur- a French word meaning one

who undertakes an undertaking. Entrepreneurs pool capital, including technology, finance and
business skills, in an attempt to turn inventions into economic goods (Panganiban, 2017).

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Table 1.2. Concept and Contribution Thought to Entrepreneurship

Lesson 4. The Entrepreneur

The Entrepreneur
The entrepreneur is a 'heart of entrepreneurship' profession. The entrepreneur can be
described as the agent by whom the spirit of enterprise is expressed. The role of entrepreneurship
in economic growth provides a company with a competitive advantage, absorbs human capital
and contributes to socio - economic development.

Entrepreneurs are the key drivers that foster economic and social development in
community. Entrepreneurs are the designers of creation who conceive of the possibilities with
strong determination and the capacity to sustain development. In simple terms, an entrepreneur
is "a person who creates and manages a business for profit and growth."

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Significant Definition of Entrepreneur
• Entrepreneurs are often seen as state resources to be promoted, encouraged and
compensated to the fullest possible extent.
• Entrepreneurs will make a difference in our way of living and working. In essence, in
addition to creating income from their business operations, they also establish
employment and the opportunities for a fair economy.
• Entrepreneurs are people who turn dreams to reality.
• They are the producers of wealth. This self-created wealth isolating the economy from
downturn and helping to improve the local economy.
• The Oxford Dictionary (2014) defines an entrepreneur as “A person who sets up a
business or businesses, taking on financial risks in the hope of profit”.
• International Encyclopedia (2014) defines an entrepreneur as “An individual who bears
the risk of operating a business in the face of uncertainty about the future conditions”.
• Drucker P. (1977) defines an entrepreneur as “An entrepreneur is the one who always
searches for change, responds to it and exploits it as an opportunity. Innovation is the
specific tool of entrepreneurs, the means by which they exploit changes as an opportunity
for a different business or different service”
• Cantillon R. (2009) defines an entrepreneur as “A person who pays certain price for a
product to resell it at an uncertain price thereby making decision about obtaining and using
resources while assuming the risk of enterprise.”
• Smith A. (2009) defines an entrepreneur as an individual who forms an organization for
commercial purpose. He / She is proprietary capitalist, a supplier of capital and at the
same time a manager who intervenes between the labor and the consumer.
• Hoselitz (2011) explains that “Entrepreneur is an employer, master, merchant but explicitly
considered as a capitalist”. According to him, in an underdeveloped economy, not to speak
of the Schumpeterian innovators, even imitator-entrepreneurs had a distinct role to play.

Lesson 5. The Importance of Entrepreneurship (Panganiban, 2017)

Entrepreneurship is much more than just formation of a company. It's a continuous

process of vision, transition, and development. This requires a commitment of enthusiasm and
energy to the development of new concepts and new products. An environment where creativity

7
can flourish and where entrepreneurs can seek out new ideas and encourage many, ought to be
maintained.

The following are the important contribution of entrepreneurship

• Helps in the creation of capital by putting together people's savings and investments;
• Offers large-scale job opportunities and raises people's buying power;
• Helps to reduce the accumulation of economic right (right to control the output factor in a
few hands).

Entrepreneurial Significance
• Beginning a small business unit to set up large business concerns.
• The introduction of new entrepreneurship frameworks into the existing education system
not only paves the way for economic growth, but also offers more work opportunities to
young entrepreneurs who are starting small projects.

Entrepreneurship capital
Described as "the regional endowment of factors conducive to the creation of new
enterprises" and has a significant impact on the economic stability of the economy. Nations with
higher levels of entrepreneurship capital have higher rates of production and yield, while those
without entrepreneurship capital continue to produce lower production levels and performance.

The following are reasons why entrepreneurship capital is essential to the economy;

1. It Develop New Company

Path-breaking business transactions, in the context of new products and services, lead to
new employment that can have a descending or virtuoso effect on the economy. Stimulating
related companies or sectors that finance the new venture will lead to more economic
development.
For example, in the 1990s, a few IT companies established the Indian IT industry as a
backend programmer hub. The industry soon gained pace in the domain of its own programmers.
More importantly, millions many others have benefited from it. Businesses in associated sectors,
such as call center operations, network repair firms and hardware vendors, thrived. Education
and training programs have nurtured a new generation of IT workers promising better, higher-

8
paying jobs. Infrastructure construction organizations and even real estate firms capitalized on
this increase as workers moved to job centers seeking new, better lives.

2. Add to National Income

Entrepreneurships create new capital. Established companies may stay restricted to the
limits of existing markets and can, in terms of sales, collapse below the glass ceiling. New and
improved business models, products or innovations allow new markets to be built and new wealth
to be generated.

In turn, the ripple effect of increasing employment and higher earnings contributes to better
national incomes in the form of higher taxation revenues and higher government spending. This
revenue can be used by the government to invest in other, failing sectors and human resources.
Although some current players may be out of date, the government can ease the impact by
diverting surplus resources to retraining workers.

3. Create Social Change

By their innovative introduction of new products and services, entrepreneurs break away
from tradition and implicitly encourage democracy by growing reliance on outdated systems and
technologies. Ultimately, this results in a higher quality of living, more values and more economic
prosperity.

Water availability in a water-scarce area, for example, can often cause people to stop
working to obtain water. It will have an impact on their businesses, their competitiveness and their
earnings. Imagine a groundbreaking, compact, low-cost, flow-based pump that can automatically
fill people's home water containers. More space for jobs means economic growth.

For a more modern example, smartphones and their smart apps have revolutionized work
and play around the globe. Smartphones are not just for rich countries or rich people. As China's
smartphone market and smartphone industry prove, technological entrepreneurship will have
significant, long-lasting impacts on the entire human race.

In fact, technology globalization ensures that entrepreneurs in less developed countries

have access to the same resources as their counterparts in wealthier countries. They do have the

9
advantage of a lower cost of living, so that a young person entrepreneur from an underdeveloped
country can take advantage of the multi-million-dollar potential of an established company from a
developed world.

4. Community Development
Entrepreneurs actively endorse business projects by other like-minded individuals. We
also participate in community-based initiatives and provide financial assistance to local charities.
This allows further advancement beyond the reach of their own undertakings.

Many successful businessmen, such as Bill Gates, have used their money to fund good
causes, from education to public health. The attributes that make an entrepreneur are the same
attributes that inspire an entrepreneur to move things forward.

5. The Role of States

Regulations play a crucial role in identifying business opportunities, but regulation involves
a fine balancing act on the part of the regulatory authority. Unregulated entrepreneurial activity
could even lead to unwanted social outcomes, including unfair market practices, widespread
corruption, financial crisis, and even criminal activity.

The fascinating relationship between entrepreneurship and economic growth has critical
insights and inferences for policy makers, development agencies, business owners, change
agents and charitable donors. When we consider the advantages and disadvantages, a pragmatic
approach to entrepreneurship would certainly have a positive effect on the economy and society.

Entrepreneurship is more than just the development of a company. According to 'Special

Report: A Global Perspective on Entrepreneurship Education and Training,' (GEM, 2008).
Entrepreneurship Education is generally characterized as the building of knowledge and skills for
the purpose of entrepreneurship in general, as part of recognized programs of primary, secondary
or tertiary education.

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 Assessment Task 1

VISIT: https://badges.newworldofwork.org/quiz/entrepreneurial-mindset

On the LINK above, you’ll get to explore one of the “Top 10” 21st Century Skills. Watch all
the videos and answer the multiple-choice questions. If you get a passing score, you’ll be able to
earn your Learner Digital Badge for the skill. An email will be sent to you from Badgr. You can
claim your badge to share and post online for all the world to see! Post the result to Edmodo class
(link will be posted).

Summary

The word entrepreneur is of French origin- from the word “entreprendre” which simply
means “to undertake”.

In the early years, the idea of entrepreneurship started as early as Marco Polo, who is
going to the Middle East for profit. Entrepreneurs in this era have power and jurisdiction over
construction works, such as public buildings and churches. A typical middle-aged entrepreneur
was the priest. In the 17th century, the emergence of entrepreneurship can be attributed to the
relationship between risk and profit. Entrepreneurship is the person who has signed a contract
with the Government to provide a service or supply the products that have been decided. In the
18th century, the person with capital was distinguished from the one who needed capital. The
entrepreneur differed from the provider of capital. Entrepreneurs are not often aligned with
management in the 19th and 20th centuries. The entrepreneur organizes and operates a business
for financial benefit. The role of entrepreneurs in the middle of the 20th century is to reinvent or
revolutionize the pattern of production by implementing an innovation. Entrepreneurs is
considered as the symbol of the Free Enterprise economy in the 21st century. Entrepreneur of
the century has created many goods and services and is able to face a lot of market risks.

11
 The key concepts of entrepreneurship are: the creative and innovative response to the
environment and the process of giving birth to a new business, the key driver of economic growth
and job creation, entrepreneurship is the act of being an entrepreneur.

The term entrepreneur originated in France in the 17th and 18th centuries. The definition
of an entrepreneur has also shown that its strong ties with the common overview of starting a
business has had a very significant meaning in the past. But its general meaning has moved to
wider application in the field of providing high yields through improved productivity for economic
development. It is revealed that entrepreneurship has come to be used as a method to expand
and deepen the economic benefits of development.

The definition of entrepreneurship has undergone considerable change for more than two
and a half centuries. However, the definition of entrepreneurship is not simple. As the idea of
entrepreneurship is complex in its substance, it is affected not only by economic factors, but also
by sociological, psychological, legal, cultural and religious values. Over the years, social scientists
have interpreted the theory of entrepreneurship differently in line with their expectations and the
economic climate.

References
Arthur S., & Hisrich R., 2011, "Entrepreneurship Through The Ages: Lessons Learned”, Journal
of Enterprising Culture

E Station A View of Entrepreneur and Entrepreneurship [Web log post]. (2014). Retrieved August
13, 2020, from http://maha219002.blogspot.com/2014/09/normal-0-false-false-false-ms-x-
none-x.html

Hisrich, R., 2013, Entrepreneurship, 9th edition. New York. The McGraw-Hill Companies, Inc.

Longenecker, J., Moore, C., Petty, J, 2003, Small Business Management, 12th edition. USA.
South-Western, Thomson Learning.

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Panganiban, F. (2017, November 23). Entrepreneurship Introduction Part 2 - Key Concept &
Common Competenc... Retrieved August 13, 2020, from
https://www.slideshare.net/rarepacer/entrepreneurship-introduction-part-2-key-concept-
common-competencies?from_action=save

Orcullo, Jr. N.A., 2004, Contemporary Entrepreneurship, Academic Publishing Corporations

Terentyeva, T., & Korneyko, O. (2017). Revista ESPACIOS: HOME. Retrieved August 13, 2020,
from https://www.revistaespacios.com/a17v38n62/a17v38n62p33.pdf

Tolulope Olarewaju, Julia Fernando. "Chapter 92-1 Gender Inequality and Female
Entrepreneurship in Developing Countries" Springer Science and Business Media LLC,
2020

Read, D., Read, K., Read, J., Read, A., Read, K., Read, S., . . . Read, E. (2019). Start, run and
grow your business. Retrieved August 13, 2020, from https://www.entrepreneur.com/

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 MODULE 2
ENTREPRENEUR AND ENTREPRENEURIAL
ACTIVITIES

Introduction

The concept of entrepreneurship includes the development of value through the

convergence of resources, risk-taking, technology and human talent. It's a multifaceted term. The
distinctive characteristics of entrepreneurship over the years are: creativity, high-performance
flexibility, organizational development, group-level operations, management skills and leadership,
entrepreneurship filling holes.

There are some entrepreneurship hypotheses that can be explained from the point of view
of economists, sociologists and psychologists, which will be explored in this section. Over a period
of more than two and a half centuries, these ideas have been endorsed and promoted by
numerous thinkers. Let us understand the historical context of entrepreneurship, entrepreneurial
spirit and the skills of entrepreneurs that they'd have in order to succeed.

Learning Outcomes

At the end of this module, students should be able to:

1. outline the various theories of entrepreneurship that highlight its functions.

2. identify the personality traits and characteristic of successful entrepreneurs.

3. analyze the roles of an entrepreneur objectively.

4. identify the key competencies of an entrepreneur.

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Lesson 1. Theories of Entrepreneurship (Hisrich, 2002)

Joseph Massie observes, “However, because of the diversity of approaches to the study
of entrepreneurship, there is difficulty in defining just what entrepreneurship is and identifying just
who is an entrepreneur.” There are differences of opinion regarding the growth of
entrepreneurship. These views can be categorized into three parts:

A. Economist’s view
Entrepreneurship and the entrepreneur had already been a point of interest to the
economy since 1755. The term "entrepreneur" was presented into economics by Cantillon, but
the entrepreneur was first given prominence by Say. It has been translated into English as
'merchant,' 'adventurer' and 'employer,' although the precise meaning is 'the project entrepreneur,'
James Stuart Mill popularized the term in England.

B. Sociologist’s view:
Sociologists claim that entrepreneurship is more likely to arise from a particular social
community. According to them, social pressures are accountable for growing entrepreneurship
through societal norms and role expectations. Social-cultural ideals are the driving force of
economic activity that gives rise to entrepreneurship. In this sense, Weber's and Cocharan 's
theories are primarily sociological in nature and worth noting.

C. Psychologist’s view:
The definition of entrepreneurship growth has been introduced, explained and interpreted
differently. Many of those who have highlighted the psychological dimensions that lead to
entrepreneurial performance are Joseph Schumpeter, McClelland, Hagen and Kunkal.

According to psychologists, entrepreneurship is more likely to occur when a culture has

an ample supply of individuals with specific psychological characteristics. The primary features
are the following:
• systemic ability to view things in a different way;
• the strength of will and mind to conquer the set patterns of thought;
• the desire to do something about it,
• To fulfill a dream,
• Ability to endure social objections;

15
 • The strong need for results.

Schumpeter’s Theory of Innovation

The dynamic theory of entrepreneurship was first proposed by Schumpeter (1949) who
believed entrepreneurship to be a catalyst that disrupts the steady circular flow of the economy
and thus initiates and sustains the cycle of growth. Joseph Schumpeter has developed a well-
known innovative entrepreneurship theory. Starting with 'fresh combinations' of the factors of
production-which he concisely explains as innovation-the entrepreneur stimulates the economy
to a fresh stage of growth.

Entrepreneur inventions are responsible for the rapid economic growth of any country. He
referred to different combinations of factors of output, and Schumpeter attributed the position of
innovator to an entrepreneur who is not a man of ordinary managerial skill, but one who creates
something entirely new (Cabral 2010).

Innovation may involve any of the following:

• Innovation of new products: the launch of a new product that customers are not yet familiar
with or the creation of a new version to an existing product.
• Innovation in novel techniques or production methods: the implementation of a new
method of production which has not yet been checked by practice in the manufacturing
sector involved, which must by no means be based on a technically new invention and
which may also operate in a new way for the commercial handling of a commodity;
• The opening up of a new market: the opening up of a new market which is a market in
which the relevant branch of the producer of the country concerned has not yet entered,
whether or not such a market existed until the opening of the market.
• Entrepreneurs can find a new source of supply of raw materials: the acquisition of a new
source of supply of raw materials and
• Management innovation-reorganization of the industry: the implementation of a new
organization of any industry.

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 Figure 2.1. Innovation Theory of Entrepreneurship

Need for Achievement Theory of McClelland

According to McClelland, the characteristics of the entrepreneur have two characteristics:
first, to do things in a different and improved way, and second, to make decisions under
uncertainty. McClelland stresses achievement focus as a primary element for entrepreneurs.
Individuals with a high-performance mindset are not impacted by value of money or any other
external motivation. Profits and incentives are merely benchmarks for measuring the success of
high-performance entrepreneurs. People with high achievement (N-Ach) are not affected by
money incentives compared to people with low achievement. Such latter styles are prepared to
work harder on money or other external rewards. On the opposite, income is merely a measure
of progress and competence for people with a strong desire for achievement.

According to him, as a result of one's life experience, a person acquires three types of
needs. Such three requirements are as follows:
• Achievement Required. A desire to succeed, to progress, and to expand.
• The need of strength. A desire to dominate or manipulate others and circumstances.
• Want to be associated. A desire for fun and near interpersonal relationships.

McClelland 's analysis has shown that there are five main components to the N-ach trait:
(a) responsibility for problem solving,
(b) setting goals,
(c) reaching goals through one’s own effort,

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 (d) the need for and use of feedback, and
(e) a preference for moderate levels of risk-taking.

The person with a high level of need is a potential entrepreneur. The basic attributes of a
high-achieving (entrepreneur) can be summarized as follows:
• They set moderately realistic and attainable goals for them.
• They are taking calculated risks.
• They prefer circumstances in which they can take full responsibility for solving problems.
• They need clear input on how well they're doing.
• Their desire for accomplishment exists not only for the sake of economic incentives or
social recognition, but also for the sake of personal achievement.

Leibenstein’s X-Efficiency Theory

This theory, originally formulated for another reason, and has recently been used to
examine the position of an entrepreneur.

X-efficiency
The degree of inefficiency in the use of capital within the firm: tests the extent to which the
firm does not understand its competitive potential.
According to Leibenstein, the difference between the real output and the average output due to
that input is an indicator of the degree of X-efficiency when the input is not used effectively.

Leibenstein identifies two main roles for the entrepreneur:

1. a gap filler and
2. an input completer

Such functions are based on the fundamental principles of the X-efficiency principle.
Therefore, it is clear that "if not all factors of production are sold or if there are market
imperfections, the entrepreneur will fill the demand gaps. The entrepreneur should fill enough of
the gaps to set the company in motion.” The second function is the completion of inputs, which
includes making available inputs that increase the efficiency of existing production methods or
encourage the implementation of new ones. The role of the entrepreneur is to optimize the flow
of knowledge on the market

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 .

Figure 2.2. Leibenstein’s X-Efficiency Theory

The theory suggests that if market imperfections exist, an entrepreneur will serve as a gap
filler and an input completer. In order to use their unique abilities, they earn benefits as well as a
range of individual-peculiar benefits. There are two forms of entrepreneurship, according to him.

Routine entrepreneurship
Deals with usual business tasks, such as coordinating business operations.

Innovative entrepreneurship
In his approach, an entrepreneur is creative. It includes the activities necessary to set up
an enterprise where not all markets are well-established or clearly outlined.

The Uncertainty-Bearing Theory of Knight

In his book Risk, Uncertainty and Profit, Frank H. Knight (1957) sees the profit of the
entrepreneur as a reward for bearing uninsurable risks and uncertainties. Entrepreneurship is
directly related to risk-taking. Knight distinguished risk from insurable and non-insurable risks.

The following are some important features of this theory:

1. Risk creates Profit:

Due to the risk-bearing principle, the entrepreneur is making money because he is taking
risks.

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2. More Risk More Gain:
The degree of risk varies from one industry to another. Entrepreneurs take varying
degrees of risk depending on their willingness to do so by instinct. The risk hypothesis implies
that the riskier the design of the market, the greater the profit it produces. Entrepreneurs take
chances to varying degrees depending on their ability to tilt. The theory suggests that the riskier
the nature of the company is, the higher the level of profits generated by the entrepreneurs.

3. Profit as Reward and Cost:

Profit is an entrepreneur's reward for taking risks. It is therefore also treated as part of the
normal cost of production.

4. Entrepreneur’s Income is Uncertain:

It identifies uncertainty with a situation where the probability of alterative outcomes cannot
be determined either by an evidently due or statistical inference. The reward of the contractor is
uncertain. Entrepreneur guarantees interest to the lender of capital, wages to employees and rent
to the landlord. The level of uncertainty in business can be reduced by applying the consolidation
technique. By pooling individual instances, the overall level of uncertainty can be reduced.

Max Weber’s Theory of Social Change (Emphasis on Impact of Religion)

In his theory of social change, Max Weber advocated a sociological explanation for the
growth of entrepreneurship. He thought that religion had a profound effect on the growth of
entrepreneurship. The religious belief and ethical value of society play a vital role in determining
an entrepreneurial culture.

According to Weber, some religions have basic beliefs about earning and acquiring
money, and some have less. He calls them 'the spirit of capitalism' and 'the adventurous spirit.'
The spirit of capitalism will be created when the mental attitude of society is favorable to
capitalism. According to Max Weber, driving entrepreneurial energies are created by the adoption
of exogenous religious forces.

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 Figure 2.3. Max Weber’s Theory

Economic Theory of Entrepreneurship

G.F. Popenek (1962) and J.R. Harris (1970) was of the opinion that economic
opportunities are the key factors that affect entrepreneurial behavior. Economic gains naturally
increase the ability of entrepreneurs to pursue diverse entrepreneurial initiatives. The relationship
between the individual's inner urge and the desired economic gains has a profound impact on the
development of entrepreneurial skills. Business development and economic growth take place
whenever certain economic conditions are favorable.

According to them, economic incentives are the main drivers of entrepreneurial activity in
any country. There are several economic factors that encourage or reduce entrepreneurship in a
country. Those following factors are:

(a) The availability of bank credit

(b) High capital formation with a good flow of savings and investments
(c) Supply for loanable funds with a lower rate of interest.
(d) Increased demand for consumer goods ad services
(e) Availability of productive resources.
(f) Efficient economic policies like fiscal ad monetary policies
(g) Communication and transportation facilities

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Exposure Theory of Entrepreneurship
Many studies have shown that access to fresh ideas and incentives for creativity and
innovation contributes to the development of a new company. Relevant inferential proof exists to
support its validity. 'Tripathi, noted that access to new ideas and values was a common factor
between Parsi and Hindu entrepreneurs that led them to enterprising. Education has played a
very important role in introducing Indian entrepreneurs to Western ideas that lead them to
entrepreneurship. The differentiated responses of the social classes to the incentives presented
by the dedication of the political system to industrialization have also contributed to a phase of
entrepreneurial spread.

Figure 2.4. Exposure Theory of Entrepreneurship

Political System Theory of Entrepreneurial Growth

The political system can create adequate infrastructure, favorable legislation, a favorable
system of taxation and procedures, provide incentives and subsidies, provide security for
entrepreneurs, set up policies to promote entrepreneurship and can encourage people to enter
into entrepreneurship. The Government can also set up a support system for
aspiring entrepreneurs. The engagement of the political system may therefore make a major
contribution to entrepreneurial growth.

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 Figure 2.5. Political System Theory of Entrepreneurial Growth

Lesson 2. Entrepreneurial Activities (Hisrich, 2002)

Entrepreneurial activity
Enterprising human activity in pursuit of value generation, through the creation or
expansion of economic activity, through the identification and exploitation of new products,
processes or markets.

Core Definition of Entrepreneurial Activities

• Entrepreneurial activities involve the entry of new markets, the creation of new products
or services and/or innovations related to different business operations (new markets,
innovative technologies, new products / services).
• Entrepreneurship can therefore be linked to both organic and acquisitive decisions.
• Entrepreneurial activity does not result in economic impacts alone.
• The cultural and social effects of entrepreneurial activity are important. These impacts
may affect the smaller business environment or industry, as well as the wider natural,
social and cultural environments.

If we look a little more closely at the definition of entrepreneurship, we can identify three
characteristics of entrepreneurial activity:

1) Innovation.
Entrepreneurship usually involves selling a new product, implementing a new technique
or technology, opening up a new market or creating a new type of organization for the
development or enhancement of a product.

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2) Running a business.
A firm, combines resources for the production of products or services. Entrepreneurship
implies to set up a company to make a profit.

3) Risk taking.
The term risk means that the outcome of an entrepreneurial venture cannot be known.
Entrepreneurs, therefore, are still operating under a certain degree of doubt, so they cannot know
the result of many of the decisions they have to make. As a result, many of the actions they take
are guided primarily by their faith in creativity and their awareness of the market climate in which
they work.

Lesson 3. Attributes of Entrepreneurial Behavior: Essential

Characteristics of Entrepreneur that Contribute to Business
Success (Entrepreneurship Extension, 2020)

Convincing Factors Why We Need Entrepreneurs

• 90% of the world’s jobs are created by Entrepreneurs. They are Problem Solvers, Source
of New Products and Innovation.
• It’s the Entrepreneurs- not the Central Bank - that keeps the ECONOMY moving.

Personal Entrepreneurial Competencies (PECS)

The qualities, characteristics, skills, abilities, knowledge and behavior that a person must
possess in order to become a successful entrepreneur.

Attitudinal Entrepreneurial Competencies

Optimistic
Entrepreneurship is about getting up if the company fails, and improving from the loss. An
entrepreneur recognizes that failure is part of an entrepreneurial phase, and that without it,
progress would not have been possible. An optimistic attitude is crucial for an entrepreneur who
learns to see setbacks as bargain-priced schooling for valuable business lessons learned through
first-hand experience.

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Focus
Entrepreneurs prefer to trust in their own ability to influence the results of their actions by
manipulating the social environment, rather than leaving it to chance. The successful
entrepreneur is self-disciplined and has the ability to stick to schedules and deadlines. Locus of
control is an individual's belief system that perceives the outcome of an occurrence as either
within or beyond his personal control

Grateful
Entrepreneurs know not to take anything for granted in this world. This gives them the
strength and versatility to respond to changes and demands, while at the same time maintaining
in them the humility that teaches them that success and prosperity are not "necessary," but the
fulfillment, happiness, and enjoyment that comes from one's achievements and contributions.

Behavioral Competency Attributes

Determination
The successful entrepreneur must be completely dedicated to succeed even if it means
taking the risk.

Motivation
A good entrepreneur has a passion to work hard and leaves very little in the way of making
dream a reality.

Devotion
A good entrepreneur needs a strong commitment to the principles and ideals on which the
strategy is based.

Skills
A good entrepreneur must have the skills needed to produce a product or service, or to
get an idea and work it out.

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Perseverance
A good entrepreneur must be able to keep goals in sight and to work in it despite obstacles.

Adaptation
A successful entrepreneur must be able to face up to new challenges and find creative
solutions.

Passion
A good entrepreneur must really enjoy what he or she is doing.

Original thinking
A good entrepreneur should be able to think about a novel idea and deal with the many
variables facing the business.

Risk-Taker
Entrepreneurs aren't safe from fear. But they give priority to their attitude toward issues,
so that lack of confidence, frustration, discontent, monotony and dissatisfaction far surpasses the
constant fear of change.

Managerial Competency Attributes

Able to Communicate
The entrepreneur focuses on the development of effective communication, through
written, spoken or non-verbal messages are conveyed through body language. Above all, the
entrepreneur has a strong patience to hear and understand what someone else is attempting to
say, and the best communicators are the first to be the best listeners.

Feels a Sense of Ownership

Accepting responsibility for doing things – and doing them with care and attention – means
behaving like a person. Rather than viewing the problem as someone else's, the entrepreneur
sees it as his or her own and takes pleasure in coming up with a solution, leaving things in better
shape than they were before they met, and improving situations rather than leaving them

26
unattended. Rather than manipulating circumstances in an effort to own them, the entrepreneur
shows other people how to take care of them. In this way, the smart entrepreneur uses individual
responsibility in the relentless pursuit of productivity, collaboration and overall progress.

Passionate about Learning

Entrepreneurs are often "self-taught" learners, which means that they learn much of what
they know, not in a formal classroom setting, but on their own, by searching for information, asking
questions, and doing personal research on the matter. Because of a focus on learning, true
entrepreneurs are surrounded by people who either know more than they do or know things that
are different from what they know. They represent the opinions of others and viewpoints that might
be different from their own, for example, in order to be better students of human nature.

Team Player
Team players learn how to survive by using the mechanics of strategic teamwork and
complex relationships. One twig can be easily snapped, but the bundle of these small twigs is
stronger than the sum of its individual parts, and it can be impossible to bend, much less to break.
The same goes for companies, and successful businessmen exploit teamwork to get the heavy
lifting done without breaking the pace.

System-Oriented
Before depending on individuals, entrepreneurs focus on processes and look for system-
based solutions before looking for human resource solutions. When the individual does the work
but falls ill or leaves, the work is under pressure. But if a program is built to do the job, everyone
can step in and follow the blueprint to get the desired result. Design, implementation and
development of systems is one of the most useful and rewarding skills of an entrepreneur.

Gregarious
Since business is all about people, entrepreneurs prefer to be outgoing socially. They are
excited to share ideas, products, and services, and that excitement is contagious to their
employees, clients, friends, and other contacts within and beyond the business sphere.
Entrepreneurs know that firsthand, from their own experience, and they tend to be a fun-loving
group of people on both sides.

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A Leader by Example
Entrepreneurs not only lead themselves through self-motivation as self-starters who jump
into tasks with enthusiasm, but are also capable of leading others. They know the importance of
teamwork and understand the need to appreciate others, support them, and reward them
accordingly. Real leaders should not become ineffective, because things will fall apart in their
absence and they will never be able to rise to the highest degree of entrepreneurial independence
and prosperity. Nor do they squander the ability of those working under their direction.

Organization
The successful leader knows his or her own strengths and limitations and puts together
the right team and tools to achieve his or her goals.

The True Entrepreneur

The real entrepreneur is a dreamer whose dreams come true, an income earner whose
wealth is passive. Money comes automatically from profitable ventures that deliver more success
but do not require extraneous work. The money made does all the work for an entrepreneur to
make more money with a snowball impact. Such women and men benefit in any situation and add
to their wealth by gaining more paper properties, more profit centers and more entrepreneurial
capacity.

Idealization
Imagine the gigantic, all-encompassing dreams of creating the ideal world.

Visualization
Picture the ideal world as a reality and begin to clarify this vision on a daily basis, filling in
more details each day. Imagine the perfect world as a reality and continue to explain this dream
on a regular basis, filling in more information every day.

Verbalization
Start putting words into a dream, and think about it as though it had already happened.
Talk to others about it as if it were real and continue to have a personal dialog with the ideal to
make it happen.

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Materialization
Through the desire and purpose to create and believe in the vision and the dream, events
begin to fall into place and happen in a normal and automatic way. The vision becomes a true
and concrete reality that materializes in the world and affects others, thus opening new doors to
new possibilities and the birth of more dreams.

Here are 10 important traits for entrepreneurs to have, according to Startup Nation:

1. Vision
Vision is the ability to see the dreams come to life precisely. When you start a company,
you can basically see that your project is successful. A good entrepreneur has the opportunity to
see the end results of the goals while striving to reach them and is fully committed to making this
dream a reality

2. Passion
There is very little motivation without passion. If you genuinely believe that your company
will do amazing things to the world, and you love doing them, you will be successful.

3.Tenacity
Tenacity is the idea that people can unceasingly pursue their dreams regardless of the
obstacles they face. The ability to meet and resolve these obstacles is a significant factor in the
success of an entrepreneur.

4.Strong work ethic

Without constant supervision and direction, entrepreneurs must be able to motivate
themselves and put in the time and effort necessary to be successful.

5. Confidence
Entrepreneurs cannot be anxious or uncertain of themselves or their company when
beginning a new venture. Confidence is a characteristic of an entrepreneur gaining power and
self-confidence by achieving success and receiving recognition and admiration for others. Self-
confidence is an important characteristic of an entrepreneur, as he is constantly called upon to
undertake tasks and to make decisions that require a great deal of trust in himself.

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6. Flexibility
If you're an entrepreneur, there isn't a 9-to-5 working day. You have to get your business
to work whenever it's needed. The effective entrepreneur must be adaptable to the changing
needs of companies, workers and customers.

7. Salesmanship
Entrepreneurs need to feel confident selling their goods. You 're not going to get a
company if you just want the money to come through the house.

8. Money sense
Entrepreneurs must be able to handle the revenues and expenses of their companies.

9. Willingness to ask for help and accept help

You're not going to be able to do it all on your own. In reality, asking for help and receiving
support will make you more effective in running your own company.

10. Resilience
Being willing to step on and grow from a tough time is a hallmark of becoming a successful
entrepreneur.

Assessment Task 2

Entrepreneurial Quiz: Choose and encircle the best answer

Personal Entrepreneurial Competencies

1. Your Mama and Granny expect you to do chores to get you ready for adulthood. Does
this teach?
A. Caring B. Trustworthiness C. Respect D. Responsibility

30
2. Monica let her teacher know she was late because she was busy finishing up homework
for the previous class.
A. Responsibility B. Caring C. Respect D. Trustworthiness

3. Liam takes accountability for his actions when he is running late to school.
A. Responsibility B. Respect C. Trustworthiness D. Caring

4. Sonia always calls her friend Rebecca in the morning so Rebecca isn’t late for school.
A. Trustworthiness B. Respect C. Fairness D. Caring

5. Justin is very considerate of his teacher’s class time. He is always on time.

A. Fairness B. Respect C. Caring D. Trustworthiness

6. Fred noticed that tardiness is frequent in his school. So he put together a club that helps
motivates his classmates to be on time for school.
A. Citizenship B. Respect C. Responsibility D. Caring

7. Jorge only missed one day of school, but he understands why Mary received the Perfect
Attendance Award.
A. Respect B. Trustworthiness C. Responsibility D. Caring

8. Eddie paid the amount P416.00 restaurant check with a P500 bill. The waitress gave
him P94 back. He called the waitress and gave her P10 back.
A. Caring B. Fairness C. Trustworthiness D. Respect

9. Your manager asks you to provide incorrect information in a company's financial

statements to support a loan application at the local bank. The manager insists it is a one-
time request but you did not obey the order.
A. Trustworthiness B. Caring C. Fairness D. Respect

10. Jason is the fastest worker on the audit of a company for the firm Zits LLP. Other Zits
workers take twice as long to complete the equivalent amount of work as Jason. One day

31
 Jason is approached by the other workers and is asked to slow down “You are exceeding
the time budget for the audit and making the rest of us look bad,” said one staff member.
A. Respect B. Citizenship C. Responsibility D. Caring

Summary

A coordinated and comprehensive theory of entrepreneurship are propounded by the

different eminent social thinkers: 1. Innovation Theory of Schumpeter; 2. Need for Achievement
Theory of McClelland; 3. Leibenstein’s X-efficiency Theory; 4. Risk Bearing Theory of knight; 5.
Max Weber’s Theory of Entrepreneurial Growth; 6. Hagen’s Theory of Entrepreneurship; 7.
Thomas Cochran’s Theory of Cultural Values; 8. Theory of Change in Group Level Pattern; 9.
Economic Theory of Entrepreneurship; 10. Exposure Theory of Entrepreneurship; 11. Political
System Theory for Entrepreneurial Growth.

There are different opinions on the emergence of entrepreneurship. These opinions may
be classified into three categories: 1) Economist’s view, 2) Sociologist’s view, 3) Psychologist’s
view.

Entrepreneurial activity means; the enterprising human action in pursuit of the generation
of value, through the creation or expansion of economic activity, by identifying and exploiting new
products, processes or markets.

The basic attributes of entrepreneurial behavior: Essential characteristics of entrepreneur

that contribute to business success can be divided into three:

1) Attitudinal Entrepreneurial Competencies: Optimistic, Focus, Grateful;

2) Behavioral Competency Attributes: Determination, Motivation, Devotion, Skills,
Perseverance, Adaptability, Passion, Creative thinking, Not Afraid of Risk or Success;
3) Managerial Competency Attributes: Able to Communicate, Feels a Sense of Ownership,
Passionate about Learning, Team Player, System-Oriented, Gregarious, A Leader by
Example, Organization

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 The true entrepreneur is a dreamer whose dreams come true, and an income earner
whose income is passive.

References
Are Male and Female Entrepreneurs Really That Different – Entrepreneurship.Extension. (2020).
Retrieved 27 July 2020, from https://entrepreneurship.extension.org/are-male-and-female-
entrepreneurs-really-that-different/

Longenecker, J., Moore, C., Petty, J. (2003). Small Business Management, 12th edition. USA.
South-Western, Thomson Learning.

Hisrich, R. (2013). Entrepreneurship, 9th edition. New York. The McGraw-Hill Companies, Inc.

Orcullo, Jr. N.A. (2004). Contemporary Entrepreneurship, Academic Publishing Corporations

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 MODULE 3
VARIATION IN ENTREPRENEURSHIP

Introduction

In this module the students will have a better understanding on the variations of
entrepreneurship, particularly on the pros and cons of being an entrepreneur. Misconceptions
about what it’s like to be an entrepreneur will be tackled as well. In addition to this, students will
have a better understanding on the types and categories of entrepreneurs and the concept of
entrepreneurial governance.

Learning Outcomes

1. explain why people want to be an entrepreneur.

2. identify the various kinds of prospects for entrepreneurs.
3. distinguish between businessmen, small business owners and managers.

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Lesson 1. Advantages of becoming Entrepreneur (Chief, 2019)

Why Start Your Own Business?

A flexible schedule – both in terms of when and where you work.

With today's technology, it's important that you're with your family all day, that you can run
your business from home. It's not only the freedom to tell what hours you 're going to work, but it
also includes every aspect of the way a company runs. These can include environmental
awareness, social responsibility and, in certain cases, the value of your own culture.

Satisfaction of the ego

Company leaders have great ways to get involved in their communities. Membership of
chambers of commerce, industry awards, civic panels and other board members reflects the
personal respect and satisfaction of certain businessmen.

Learning Opportunities
Not only in the field, as well as in the fields of accounting, marketing, public speaking,
website design, search engine optimization, how to delegate, how to take risks, how to be more
creative and think of issues in other ways. Perhaps significantly, when to fight, what it’s like to be
refused, and also get life back on track again. This provides a range of incentives for a
comprehensive understanding of the various business functions.

It's fun and satisfying.

It's fun to build anything from nothing. Particularly if you're in love in what you're doing. It's
such a wonderful feeling to do something out of none. It's so pleasant to hire excellent talent to
work for a firm.

Equity Building
If you have a company, you own all the factors of production that could turn into substantial
value. This leverage is capital that can be sold to someone else or passed down to the offspring.
You would have the freedom to add other family members to the business and prepare the
transfer among families. It's much more rewarding than having a gold watch to retire from work.

35
The salary makes sense for greater financial success.
You get paid extra when you make money. You 're going to get the money. Entrepreneurs
have been shown to have a huge and even personal wealth through the growth of their
businesses. Despite a high financial risk, running your own business gives you a chance to make
more money than if you were working for someone else.

You are viewed as a leader that creates the opportunity for philanthropy.
This increases confidence. Customers say, "You've got a great business model" and all
kinds of other congratulations that are really cool. If you are financially wealthy, you can choose
to give away some of your wealth in the way you want to support your community or your favorite
organizations. Seeing the ability to change people's lives through your work is professionally
satisfying and inspiring for entrepreneurs

Lesson 2. Drawbacks of being an Entrepreneur (Hayes, 2020)

Unguaranteed Income
A guaranteed paycheck is one of the biggest advantages that workers have as opposed
to those in search of entrepreneurialism. It ensures that businessmen work with lower rates of
financial stability for themselves and their families.

You are the one required to do all of your updates.

Once you start, you will certainly be accountable for either doing or managing all that
needs to be done. When you're an entrepreneur, there's a fair chance that you're using technology
to make things happen.

Financial risk.
There are a few new opportunities which can be launched from none. Most entrepreneurs
start debt because they need to fund initial start-up costs. The financial resources needed to set
up and grow a business can be extensive. There will be times, particularly in the first few years,
when the business does not produce sufficient money for you to thrive.

Taxes to Pay.

36
 When you earn money as an entrepreneur, you will become your own boss in the light of
the tax laws of the Philippines. That ensures that, in addition to your own, you are accountable
for the employer's share of Social Security and Healthcare.

Time.
People launch a business so that they have plenty of time to spend with their love ones.
Sadly, handling a business firm is very time consuming.

Stress.
As a business owner, you are the business. There are a variety of items to think about,
competition, staff, bills, equipment breakdowns. Being the shareholder, you are always
responsible for the well-being of your workers.

Lesson 3. Common Myth about Entrepreneurs (Krach, 2017)

Myth 1: Entrepreneurs Are Born Not Made

This myth is based on the idea that certain people are genetically predisposed to be
entrepreneurs. The opinion of several studies is that no one is "born" to be an entrepreneur;
everyone has the ability to be one. If or not someone is an entrepreneur is a feature of the
environment, life experiences, and personal choices.

Myth 2: Entrepreneurs Are Gamblers

Many entrepreneurs are cautious risk-takers. The belief that businessmen are gamblers
is based on two sources:

Entrepreneurs tend to have employment that are less organized and thus face a more
unpredictable range of prospects than people in conventional jobs.
Most entrepreneurs have a deep desire to succeed and set ambitious goals, a trait that is
frequently associated with risk-taking.

Myth 3: Entrepreneurs Are Motivated Primarily by Money.

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 Although it is naive to believe that entrepreneurs are not pursuing financial incentives,
money is rarely the reason why entrepreneurs start new businesses. In reality, some
businessmen warn that the pursuit of money may be distracting.

Myth 4: Entrepreneurs Should Be Young and Energetic.

The most active age for company ownership is 35 to 45 years of age. Although it is
important to be enthusiastic, investors also point to the power of an entrepreneur as their most
important criterion for making investment decisions.

What makes an entrepreneur "big" in the eyes of an investor is experience, maturity, a

good reputation, and a record of success.

These requirements favor older businessmen rather than younger ones.

Myth 5: All responsibility falls on the entrepreneur.

Another myth about running a new venture is that it all depends entirely on the
entrepreneur. It may be valid at the earliest stage, but taking it theory too seriously is often the best
way to avoid burnout. Collaboration and the art of delegation have a strong role in the health of an
organization. No one can do it all on their own.

Myth 6: There’s a secret, “silver bullet” key to success.

In industry, many successful entrepreneurs have the illusion that they have discovered
some sort of hidden key to success. Nevertheless, this does not take into account the previous
plans of the entrepreneur that have failed; the old-fashioned hard work and persistence they have
put in; or any of the many other considerations that are required to create a successful business.
The truth is that there is no single key to success. If anything, entrepreneurial success involves a
key chain of ideas, individuals, and capital that must come together at the right time and place.

Myth 7: Quitting is for losers.

One last myth is that businessmen need to stick it out — no matter what. The reality is,
however, that not every concept can bloom into a sustainable business. Successful entrepreneurs
often cycle through and try out a lot of ideas before they find one with their legs. Quitting may
sound like failure, but actually, it's a normal part of an entrepreneur 's journey and can provide

38
extremely valuable lessons. It is also important to know when to go away and move on to the next
concept.

Lesson 4. Categories and Types of Entrepreneurs (Hayes, 2020)

Categories of Entrepreneur

Classic Entrepreneur
A classic entrepreneur is a type of entrepreneur who discovers a need that they feel they
can solve and focuses on supporting themselves through their marketing campaign.

Serial Entrepreneur
An entrepreneur who is always coming up with fresh ideas and launching fresh
companies. Serial entrepreneurs are more likely to encounter multiple entrepreneurial
achievements. They are more likely to take chances and rebound from company failures.

Social Entrepreneur
An entrepreneur who is motivated by a desire to help, improve and transform social,
environmental, educational and economic conditions. They are motivated by an overwhelming
urge to fix some of the world's main social and economic challenges, such as poverty, depravity
in education, rather than an urge for benefit.

Lifestyle Entrepreneur
An entrepreneur who puts passion before profit when beginning a venture in order to
combine personal desire and creativity with the opportunity to make a living. Lifestyle
entrepreneur deliberately selects a business model designed to grow and extend their business
in order to create a long-term, sustainable and profitable working atmosphere in which they have
a special interest, passion, skill, experience or high level of expertise.

The types of entrepreneurs vary depending on background, country and even sector but
the 5 most common types are:
• Innovators

39
 • Hustlers
• Imitators
• Researchers
• Buyers

Every of these various types of entrepreneurs has its own rules for business success, but
most entrepreneurs have very similar challenges in terms of financing, marketing, people and
even self-management.

Types of Entrepreneurs
• According to the types of business: Trading Entrepreneur – Industrial Entrepreneur –
Agricultural Entrepreneur – Service Entrepreneur
• According to the use of technology: Technical Entrepreneur – Non-technical Entrepreneur
• According the Area: Urban Entrepreneur – Rural Entrepreneur
• According to gender: Men Entrepreneur – Women Entrepreneur

Take a look at a variety of different types of entrepreneurs, their positions, and how each type
affects the success of the business:

1. Innovators
Innovators are the forms of entrepreneurs who come up with entirely new ideas and
transform them into successful businesses. Innovative companies can also find new ways to sell
their products by selecting product differentiation tactics that make their business stand out from
the crowd. And sometimes it doesn't only stand out from the crowd, but actually generates a new
audience. It would be an understatement to suggest that innovators like Steve Jobs, Google's
Larry Page and Microsoft founder Bill Gates were obsessed with their companies.

Advantages of Being an Innovate Entrepreneur:

• Get all the glory for the success of your business (and take all the arrows)
• Establish laws
• Minimal rivalry during the initial days
Disadvantages of Being an Innovate Entrepreneur:
• You'll need a lot of money to bring a new idea to life

40
 • Shareholders through face opposition
• The period of success is longer

The capacity of an innovative entrepreneur to foresee a new way of thinking makes them
stand out from the crowd and, in many cases, highly competitive, but it requires tremendous
money, persistence and determination to bring true creativity to life.

2. The Hustler Entrepreneur

Unlike innovators whose dream is gas in their car, hustlers are only working harder and
eager to get their hands dirty. Hustlers often start small and think about efforts – rather than raising
capital to grow their businesses. These types of entrepreneurs concentrate on small start-ups
with the goal of being larger in the future. Hustlers are inspired by their aspirations and are going
to work incredibly hard to achieve them. They tend to be very focused and to get rid of all forms
of distraction, favoring risks over short-term comfort.

Mark Cuban is the prime example of a hustler. He began selling trash bags, newspapers
and even postage stamps at a very young age, and later this hustle created a gold mine that was
purchased by internet giant Yahoo!

Advantages of Being a Hustler

• They will outwork most
• Tend to have thick skin – they don’t give up easily
• See disappointment and rejection as just a step in the process

Disadvantages of Being a Hustler

• Usually prone to burn out
• Wear out their team members who don’t have the same work ethic
• Often don’t see the value of raising capital as opposed to just working harder

Even though a lot of hustlers never give up, a lot of them are willing to do anything to
succeed, which sadly means they have a lot of hits and misses. It takes a lot longer to fulfill their
goals than any other forms of entrepreneurs.

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3. Imitators
Imitators are the forms of entrepreneurs that copy and improve other business concepts.
They are also searching for ways to make a specific product better in order to gain an upper hand
in the business. Imitators are part innovators and part hustlers who do not stick to the terms set
by other people and have a lot of self-confidence.

Advantages of Imitators
• Refining a business idea is easier and less stressful
• You can easily benchmark your performance with the original idea
• Can learn and avoid mistakes that were made by the originator

Disadvantages of Imitators
• Their ideas are always compared to the original idea
• Always have to play catch-up

4. Researcher
Researchers will take their time to collect all the relevant information. Failure is not an
option to them, since they have studied the concept from all angles. Researcher entrepreneurs
generally believe in launching a company that has a high chance of success because they have
worked hard to learn all facets of it. As a result, these types of entrepreneurs typically take a lot
of time to launch their products and make judgments because they need a base of deep
understanding.

Advantages of Being a Researcher Entrepreneur

• Prepare for as many contingencies as possible;
• Write detailed, well-considered business and financial plans
• Focus on data and knowledge rather than on feeling the gut
• Do not start until they feel like they know the market
• Minimizes the probability of a company loss

Disadvantages of Being a Researcher Entrepreneur

• Usually moves slowly
• Does not like risk and this may impede progress in a new venture

42
 Although though these types of entrepreneurs spend a lot of time studying and digging
into data to ensure the sustainability of their company, they may fall into the trap of obsessing
numbers and concentrating less on the operation of their business.

Jeff Bezos spoke about this in a recent letter to the shareholders, saying, "All decisions
will probably be made with about 70% of the knowledge you wish to provide."

5. Buyers
One of the items that distinguishes buyers is their money. Such groups of businessmen
have the capital and specialize in purchasing promising businesses. Buyer entrepreneurs can
locate a company and determine its feasibility, continue to buy it and find the most suitable
individual to manage and develop it.

Advantages of being a Buyer

• Buying a successful company is less risky
• Doesn't have to think about creativity too much
• Should concentrate on constructing something that has already gone through the
construction of a base.
• There is already a demand for your goods

Disadvantages of being a Buyer

• Typically, it charges a high price for good businesses
• Must face the possibility of buying companies that have issues you think you can turn
around.

Lesson 5. Entrepreneurial Governance (Meili & Mayer, 2017)

The goal of governance is to achieve value creation in the short and long term. The
recognition of this principle is an act of balancing between change and stability.

The essence of entrepreneurship is having a smart and fast response to developments in

the market and the environment. This dynamic feature is the strength of any successful SME.
Besides structure and discipline, successful entrepreneurs require a clear view on the fast-

43
changing laws of value creation. Especially in SMEs, this means that the person of the
entrepreneur plays a distinctive role. Entrepreneurship is a balancing act between working in the
company and working on the company.

These elements also form the foundation of entrepreneurial governance. To elaborate on

the essence of entrepreneurial governance and explain the differences and similarities with
corporate governance and clarify the impact on day-to-day SME management, paying particular
attention to the fundamental changes in the area of value creation.

Entrepreneurial Governance
Balance between and the optimization of the various mechanisms of good governance;

The concept of corporate governance is that it allows small and medium-sized businesses
to build value creation on three levels.
• First-order governance: based on how the organization, roles and procedures are
organized; the creation of codes and guidelines; the administration of government,
accounting and supervision.
• Second-order governance: based on success and achievement of goals and efficient
implementation and mobilization of resources; managing change and improving the
adaptive capacity of stakeholders; advances (e.g. financial, marketing, technical, process,
chain).
• Third order governance: the nature of (social) law and the sources of interest for the
development of an organization or network; the sustainable sustainability of the business
model; connective drivers; shared confidence and insight into the motivation of key
stakeholders.

Main corporate governance issues for small and medium-sized companies

The following are the reasons for the value of good governance:
• poor governance puts stability at risk;
• Good governance would strengthen ties with stakeholders through improved strategy
and better image;
• Stability raises the likelihood of foreign financing;

44
 • Good governance improves internal support and participation mechanisms, which are
critical for the success of the organization.

Assessment Task 3

Kindly discuss your best answer to the following questions.

Do I have what it requires to become an entrepreneur, and is my society prepared?

Exercise 1: Upon considering the characteristics of an entrepreneur, consider which of these

characteristics may be identified. Think of how you could have displayed some of the
entrepreneurial features of your classwork, extracurricular activities sports, or part-time work.

Record your personal entrepreneurial characteristics in the table below. Personal Entrepreneurial
Characteristics

_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

Exercise 2: Your company, look at the reasons anyone may want to open a business. Share some
of the reasons why you might consider starting your own company and what sort of business you
would like to buy. Please record your reasons and the form of company below.

Reasons I would consider opening my own business include:

_____________________________________________________________________________________

45
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

The type of business I would like to own is:

_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

Summary

Entrepreneurs are turning bold ideas into truth. They build jobs and contribute to the
economy, but there are various types of entrepreneurs, and they prefer to follow their own
direction depending on their temperament, skills and surroundings.

To be a good entrepreneur, you will need to think creatively and make the right choices,
such as understanding when and how to locate business advisors, marketing their goods online,
educating the workers and communicating efficiently.

The following are the pros of being an entrepreneur: A flexible schedule – both in terms of
when and where you work, Ego satisfaction, Learning Opportunities, it’s exciting and fulfilling,
Opportunity to build equity, the salary makes sense for greater financial success, you are viewed
as a leader that creates the opportunity for philanthropy.

The following are the drawbacks of being an entrepreneur: You do not have a guaranteed
income as an entrepreneur, you are the one required to do all of your updates, Financial risk,
there are tax implications to consider, Time commitment, Stress.

Here are some of the common myths in being an entrepreneur: Entrepreneurs Are Born
Not Made, Entrepreneurs Are Gamblers, Entrepreneurs Are Motivated Primarily by Money,

46
Entrepreneurs Should Be Young and Energetic, all responsibility falls on the entrepreneur, there’s a
secret, “silver bullet” key to success, Quitting is for losers.

` There are categories of entrepreneurs mainly; Classic Entrepreneur-Classic entrepreneur

is a type of entrepreneur who recognizes a need that they feel can be addressed and focuses on
supporting themselves through their marketing venture; Serial Entrepreneur- an entrepreneur
who is always coming up with fresh ideas and launching new companies; Social Entrepreneur-
An entrepreneur inspired by a desire to support, strengthen and change social , environmental,
educational and economic conditions; Lifestyle Entrepreneur- An entrepreneur who puts ambition
before profit when beginning a company in order to combine personal desire and creativity with
the opportunity to make a living.

The types of entrepreneurs vary depending on background, country and even sector but
the 5 most common types are: Innovators, Hustlers, Imitators, Researchers and Buyers. Every of
these various types of entrepreneurs has its own rules for business success, but most
entrepreneurs have very similar challenges in terms of financing, marketing, people and even
self-management.

Entrepreneurial Governance means balance between and the optimization of the various
mechanisms of good governance. The objective of entrepreneurial governance is to achieve value
development in the short and long term. The recognition of this principle is an act of balancing
between change and stability.

The essence of entrepreneurship is having a smart and fast response to developments in

the market and the environment. This dynamic feature is the strength of any successful SME.
Besides structure and discipline, successful entrepreneurs require a clear view on the fast-
changing laws of value creation. Especially in SMEs, this means that the person of the
entrepreneur plays a distinctive role. Entrepreneurship is a balancing act between working in the
company and working on the company.

These elements also form the foundation of entrepreneurial governance. In this article we
will elaborate on the essence of entrepreneurial governance and explain the differences and

47
similarities with corporate governance and clarify the impact on day-to-day SME management,
paying particular attention to the fundamental changes in the area of value creation.

References

BusinessDictionary.com. 2020. What Is Serial Entrepreneur? Definition and Meaning. [online].

http://www.businessdictionary.com/definition/serial-entrepreneur.html> [Accessed 27 July 2020].
Hayes, A. “What You Should Know About Entrepreneurs.” Investopedia, Investopedia, 1 July
2020,
Hayes, A., 2020. What You Should Know About Entrepreneurs . [online] Investopedia. Available
at: https://www.investopedia.com/terms/e/entrepreneur.asp [Accessed 27 July 2020].
Krach, K., 2017. 10 Of the Most Common Entrepreneurship Myths . [online] Medium.
https://medium.com/@KeithKrach/10-of-the-most-common-entrepreneurship-myths-
e241e51e9e2f. [Accessed 27 July 2020].
Mayer, H. and Motoyama, Y., 2017. Entrepreneurship in small and medium-sized
towns/communities. Entrepreneurship & Regional Development, 29(9-10), pp.1015-1016.
Meili, R. and Mayer, H., 2017. Small and medium-sized towns in Switzerland: economic
heterogeneity, socioeconomic performance and linkages. Erdkunde, pp.313-332.
Chief, E., 2019. 18 Major Advantages and Disadvantages Of Entrepreneurship. [online]
ConnectUS. Available at: <https://connectusfund.org/18-major-advantages-and-disadvantages-
of-entrepreneurship> [Accessed 27 July 2020].

48
 MODULE 4
FEMALE ENTREPRENEURSHIP

Introduction

The advent of entrepreneurship in community greatly depends on the economic, financial,

religious, psychological and social factors that circulate in community. There has been a
phenomenal increase in the number of self-employed women in the advanced countries of the
world since the Second World War.

Economic changes and the transformation of labor markets in terms of job skills, the
essence of job tasks and employment contracts have given rise to the profile and value of
entrepreneurship in the world economy. In particular, this module aims to clearly discussed the
emergence and importance of female entrepreneurship. This chapter discusses the importance
of female entrepreneurship to the economy, along with a few of the potential hurdles faced by
women in starting up a firm, including such financing, managerial skills, connectivity and
confidence.

Learning Outcomes

1. Illustrate the significance of female entrepreneurship

2. Analyze the positions and status of female entrepreneurs over the years
3. Evaluate the factors that inspire women to venture into entrepreneurship
4. Identify the obstacles women face in the growth of entrepreneurship.
5. Evaluate the contribution of women to the growth of entrepreneurship

49
Lesson 1. Female Entrepreneurship

In recent years, a growing number of women have broken out of corporate life and
embraced entrepreneurial professions as an alternative to traditional work processes and
obsolete structures. There has been a rising degree of interest in female entrepreneurship in
recent years. Originally, there was knowledge of the lower involvement of women than men in the
development and growth of new enterprises. More importantly, it has been recognized that
women entrepreneurship has a significant relationship with economic growth (Alday, 2017).

Despite the growing popularity of women in technical and managerial jobs, the gender gap
in entrepreneurship remains important. Women are much less likely than men to start new
companies, although the gap seems to be decreasing. It is clear that female entrepreneurship is
a cross-cultural phenomenon with different cultural aspects (Alday, 2017).

Women entrepreneur
The section of the female population engaged in industrial activities, i.e. manufacturing,
assembly, job, repairs / services and other enterprises.

Women entrepreneurs may be defined as women or groups of women who set up,
coordinate and run a business enterprise. Women are to innovate, imitate or engage in economic
activities to be named female entrepreneurs.

Lesson 2. Female Entrepreneurship in the Philippines

The Philippines currently sits at the top of the list, out of 31 other countries surveyed, with
the highest number of women executives in the top leadership positions. This was stated in the
2020 Women in Business study of Grant Thornton International.

One very good example of this is the vast number of women who have run their own
companies successfully. In fact, the majority of the 99.6% of micro, small and medium-sized
enterprises (MSMEs) present in the country are women (Alday, 2017). MSMEs are of great
importance to our gross domestic product, which makes the role of female entrepreneurs crucial
to the growth of our economy.

50
 Go Negosyo, a non-profit and non-profit organization that supports entrepreneurship in
the country, annually celebrates women entrepreneurs through a summit that aims to bring
together entrepreneurs to increase their visibility, skills and network with the guidance of well-
established entrepreneurs. Last March 3rd, the Women 2020 Entrepreneurship Summit, held at
the World Trade Center in Pasay City, has round up the most experienced women business
owners to impart their insights and experience (Alday, 2017).

Best practices in the operation of a company

Women are said to have a natural propensity towards entrepreneurship because of their
craftsmanship and their ability to work under pressure. Starting a company from the ground up
needs only a lot of attention (Alday, 2017). To women who have been in the industry to ten years,
hard work, perseverance and faith have always been required to get to where they are today.

Providing access to allocation of working capital

We face the same obstacles with all companies when it comes to obtaining credit. Just
after they have broken into their industries and made a name for themselves, consumers are
eager to set up well-respected companies.

The typical situation that follows is that these firms are unable to finance the opportunities
that emerge as their working capital cash is either connected to current ventures or has not been
paid for recently completed ventures (Alday, 2017).

What's the funding of working capital? They're loans for business' day-to-day operating
expenses. Widely known as business financing, many small and medium-sized businesses need
access to this form of loan, especially when they face negative cash flow spikes. Banks are the
traditional solution to cash flow issues, but they typically take time to review and authorize your
papers. They will also try to cap the sum of the loan on the basis of the collateral that you can
offer, and that's if you would have any collateral to give.

51
Lesson 3. Modern Trend in Female Entrepreneurship (Okunade,
2007)

Women's businesses are growing rapidly all over the world, adding to household incomes
and the development of national economies. Women, however, face time, financial, physical and
social constraints that hinder their ability to expand their businesses.

Worldwide, at least 30 percent of women in non-agricultural work force are self-employed

in the informal sector; in Africa, this number is 63 per cent. Women-owned businesses tend to be
informal, home-based and focused in the areas of small-scale entrepreneurship and conventional
industries, including mainly retail and service. Operating from home helps women to meet
conflicting demands for their resources while they maintain a disproportionate share of homework
and childcare obligations. Yet social expectations are also at stake. In communities where women
are forced to stay at home or where travel outside the home can be risky, women have no choice
but to run these types of businesses.

Elements that contribute to women-owned businesses in other invaluable ways, such as:

Soft knowledge and life skills.

Client service and negotiation are soft skills that women entrepreneurs also need to help
their businesses run smoothly, while life skills such as family planning, fitness and self-confidence
make it easier for women to keep their businesses going. In reality, personal problems inside the
home can impede business growth.

Flexibility.
Programs should consider constraints on childcare for women, family obligations,
transportation, and other cultural factors that may prevent them from participating in training.

Sex perception of the family and the culture.

Much of the success of female entrepreneurs depends on acceptance within their
societies and families. When these organizations have a better understanding of their challenges
and help their business activities, they will have a greater chance of success.

Networking.

52
 If women are partnered with mentors and coaches or have access to other women
entrepreneurs with similar backgrounds, they benefit from exposure to valuable public, private
and peer tools. Cluster networking helps women gain an edge by labor pooling, bulk sales of raw
materials, joint lobbying by municipal authorities, or joint access to finance. For women
entrepreneurs, becoming part of a cluster can grow their businesses faster and help to counter
cultural expectations that can restrict women's income-earning opportunities.

Accessibility of Financial Programs

Access to finance is one of the most common challenges that entrepreneurs face, and this
is especially true of women who are further hindered by lack of personal identification, lack of
property on their own behalf, and the need for their husband's signature on many documents.
Efforts to promote women entrepreneurs' access to finance usually include programs that
overhaul restrictive banking and regulatory policies. These changes embrace less conventional
types of collateral, look at the lender's ability to repay and simplify the business register. They
also help financial institutions create creative loans and investment products for female
entrepreneurs.

In order to ensure the sustainability of women's access to funding, program designers

should consider:

• Check the women's organizations. Until designing new financial products, evaluate the
need and reach of these products with the aid of women in the community who will be the
key consumers.
• Ensure the collection of gender-disaggregated data. Make sure that financial institutions
include gender in the study and data evaluation of their policies, as well as cash flow
analysis, credit history and less traditional types of collateral.
• Respect the importance of gender. Promote the training of the financial sector to close
any gaps in gender access to finance and ensure that female clients are handled equally
and fairly.
• Build the network. Women entrepreneurs often lack a supportive network, so building
partnerships with local organizations helps open communication channels between
entrepreneurs and lenders to increase access to capital.

53
Access to ICT
With the explosion of smartphones and cell phone use across the globe, the inclusion of
information and communications technology (ICT) in any program is a must. Female
entrepreneurs should receive training on how to use ICTs, not just for business needs like online
banking and recordkeeping, but also as a means to access health and education information to
benefit their families and lives overall (Okunade, 2007). These services should also introduce
women to ICT as new business ventures in and of themselves.

ICT management programs will be:

• Provide equal access. Female entrepreneurs should be able to access and connect to the
Internet or interact in a cost-effective manner.
• Tackle restricted exposures. Women's ICT services may need to take a slower pace to
provide basic literacy training, including basic communication through the use of text
messaging and email.

Lesson 4. The Roles and Positions of Women through Centuries

Entrepreneurship has been a topic of study for about 80 years, but exposure to women's
entrepreneurship has only emerged as recently as 40 years ago. Much remains to be learned
regarding women entrepreneurs in general, and women entrepreneurs in developing countries in
particular.

The trend of female entrepreneurship as a topic of academic research is a fairly recent

initiative. That said, Jean Baptiste Say, the early economist, many of whom believe the word
"entrepreneur" to have originated, included women in that concept when he described tradesmen
and tradeswomen of the fourteenth century as Western culture's first entrepreneurs.

54
Table 4.1. Major Contributors to the Development or Relational Theory and its Application

Women are important contributors to our economic development, as seen in countries

with increased women's entrepreneurial activity, economic growth has increased, and those with
a higher level of female business ownership often have a higher level of entrepreneurial activity.
GEM's annual reports on female entrepreneurship, include relevant economic data and analyzes
on the return on investment in women entrepreneurship as calculated by new ventures; the
economic potential of female entrepreneurship; the critical value of female entrepreneurship
(GEM, 2005).

“Women entrepreneurs make important contributions to global development and poverty

reduction around the world” (Ojo, 2006). The emergence of female entrepreneurship in developed
economies is a recent trend. While the US is the country most represented in the field of female
entrepreneurship, women entrepreneurs in transition economies such as Hungary, Poland,
Romania and Russia, Latin America, South Asia and South East Asia have a major influence on
national economies.

55
Lesson 5. Differences between Men and Women in Business
(Gumussoy, 2016)

In spite of this, the lack of information on female entrepreneurs is particularly evident.

Namely, many scientists are still focused on men's work as entrepreneurs. The reason for this
can be found in the fact that there are fewer female entrepreneurs than male entrepreneurs and
that women do not progress in their careers at the same rate as men.

There are also several other significant distinctions that differentiate women from men in
this field. The following are the most influential ones

1. Women start companies with the goal of gaining autonomy, equality and liberation from
corporate boundaries. In addition, many women pursue personal fulfillment by running a company
independently and creating space for career advancement. In addition, one of the basic driving
factors that drive women to start their own company is the development of a stable future and the
prospect of a choice of lifestyle and work style.

2. Women are also inspired to start their own company because they are unhappy with their job
status and because they feel that their career is much slower than men, and that they can never
attain the position that their expert and other qualities belong to them.

3. More than half of women owners (53 percent) are driven by intuition when they start and run a
company, while men (71 percent) are led by logic alone.

4. Two thirds of women (60 percent) relative to male business owners, evaluate all options before
making decisions and act. Women also prefer to collect knowledge from consultants and industry
groups rather than men do. We strive to weigh up any possibility effectively and to balance the
various tasks and goals.

Lesson 6. Characteristics of Women Entrepreneurship

Women's entrepreneurship is by its definition the most viable and veritable tool for self-
sustaining economic development. They have a shared capacity to develop an indigenous

56
business culture more than any other strategy. Women businessmen also have different
characteristics. They respect self-reliance and freedom. They have resources and a strong desire
for achievement. Women entrepreneurs also have a deep internal control locus

The female entrepreneur

The female head of a company who takes over. The effort to launch a new company that
embraces associated risks and political, administrative and social obligations and is effectively in
charge of its day-to-day tasks (Moore, 1990).

Female businessmen also have different characteristics. They respect self-reliance and
freedom. They have resources and a strong desire for success. They see transition as a chance
and are able to take calculated risks. They usually have people graces and a balance between
perception and thought (Udechukwu, 2004).

The following are the unique qualities of Women Entrepreneurship (Adeleja, 2005).
• Creativity
• Provision of inputs and materials
• Components for big corporations
• They 're found mainly everywhere, in specific, in local communities and
• The quickest tools to create work.

Key elements and attributes of women entrepreneurs that include (Oluntunla, 2001).
• Quick entry into economic activity
• Dependence on indigenous capital, such as finances and materials
• It's a family-owned company
• Small size of operations
• Intensive jobs, mostly on the basis of family and job adopted
• Technology, business skills are needed outside of the formal education system and
• There is an unregulated and aggressive market.

Women's entrepreneurship is the most diverse segment in many transitioning and

emerging economies.

57
Lesson 7. Contributions by Women Entrepreneurs to Sustainable
Economic Growth

Entrepreneurship has no regard for age, color, height, person, race or culture. Women in
different countries play an equal role in economic growth through entrepreneurship with their male
counterparts. An entrepreneur, whether male or female, plays an important role in a specific
economy (Ayogu, 2015).

Women's advancement of entrepreneurship has been recognized as significant because

of the contribution of women entrepreneurs to economic growth in both developed countries and
developing countries. Women entrepreneurs therefore improve economic growth by:

Creation of employment:
Growth of women's entrepreneurship will help Women owned companies produce more
revenue, which can then be used to support their families and boost their family welfare efficiency
(Thomson, 2002). This income will help women start and expand their businesses, which in turn
would allow them to provide jobs to those in their communities.

Reduction of poverty:
Women are now more interested in the organization of initiatives aimed at motivating
women and youth to alleviate poverty through the income they earn through their entrepreneurial
activities (Kantor, 1999).

Economic prosperity
The critical condition for social growth vitality that improves the quality of living of the
people of the country. The easiest path to economic prosperity is through entrepreneurship
among women. Women have become recognized for their ability to incorporate a number of
activities that have the potential to increase the standard of living and quality of life of people
(Floro, 2001).

Economic and socio-political equality:

Women now have access to cultural equality, power over wages and working conditions.
This encouraged them to engage fully and participate fully in cultural, social and political policy

58
making, which could lead to changes in gender inequality and discrimination, especially in the
labor market (Kantor, 1999).

Financial sustainability:
Small businesses strive to be agile, sustainable, innovative which is important to business
needs in the emerging economy. When women shape micro and macro businesses and put their
values, goods and services to market, they become active in changing the face of the nation's
industry. They combine economic strategies such as job preparation, job creation, marketing and
work place management with technologies such as flexible scheduling, childcare, language
workshops for immigrants (Ayogu, 2015).

Economic growth:
Rising the value of women in entrepreneurship has positive contribution to Gross
Domestic Product (GDP) and Gross National Product (GNP) (Kantor, 1999). Statistically, more
than 30% of the country's GDP output comes from women who are self-employed, especially in
micro and small enterprises (Kerta, 1993). Statistically, more than 30% of the country's GDP
output comes from women who are self-employed, especially in micro and small enterprises.

Development of wealth:
The development of wealth and social prosperity are the economic goals of both men and
women entrepreneurs. In order to accomplish this, women entrepreneurs typically combine their
efforts to build a strong foundation, either in rural or urban areas, and to channel the same
energies into economic growth. Teamwork, networking and organizational expertise have been
suggested as effective promotional tactics that women entrepreneurs should follow to pool their
resources into best business practices, connections and references (Thomson, 2002).

Economic:
Job creation for both women and others can be a panacea for increasing
unemployment/lower employment in the country. Women have the opportunity to set up their own
businesses and make good use of their learned skills and training (Ayogu, 2015).

Social:

59
 Women make a huge contribution to both their families and communities. Many women-
owned businesses represent not only the families, but also broader business organizations. They
also give women the ability to successfully handle their dual function as professional women and
mothers at home (Ayogu, 2015). .

Lesson 8. Challenges faced by Women Entrepreneurs

Although there are many achievements to be credited to female entrepreneurs, a number

of limitations have been identified as detrimental to female entrepreneurs (United Nations, 2006).

There are certain factors that limit the ability of women entrepreneurs to take advantage
of the opportunities available to them in their community, and these factors have been identified
as the reasons why women are not engaged in business, including (Mayoux, 2001):

Lack of access to land control:

Restricting women from access to and ownership of property constitutes a fundamental
restriction on women entrepreneurs. In most nations, the legal system has not been able to accept
and enforce the fair right of women to land and wealth. Property in this context includes; land,
houses, lockup-stores, production plants, equipment, etc. Legal backing on women’s access to
and control of property will help women in setting up their own firms without much stress (Mayoux,
2001).

Lack of access to and control over income:

Another limitation that women entrepreneurs face is lack of access to and power over
profits. Low wages, low investment and low benefit are likely to restrict women's ability to save.
Women are generally discriminated against in the work market (both in terms of their
remuneration and the essence of the job they are offered). Even when women have the chance
to earn a high income on the basis of tradition and culture, they are subject to their husbands who
have power over them and their earnings. It might impede their involvement in business (Mayoux,
2001).

Lack of access to information technology:

60
 The number of women in technology is very small compared to other industries such as
health care, hotels, education, restaurants, etc. (Ayogu, 2015).

Lack of information on women entrepreneurship:

Little information is available on women in entrepreneurship or women in business in the
Philippines, in particular and in the world as a whole (Ayogu, 2015).

Age limit:
Unlike males, there are many phases in a woman's age / time that she cannot do business,
for example, during pregnancy, work, infant nursing, and certain times that are unique to a woman.
As a result, entrepreneurship appears to be a midlife option for women (Dane, 1984).

Family dependence:
Many family members rely on women for care and hospitality, thus restricting their full
involvement and participation in company (Ayogu, 2015).

Restriction to family business:

Many women entrepreneurs are often relegated to family business because of their family
involvement. This influences their level of imagination, creativity, innovation and competitiveness
(Ayogu, 2015).

Inaccessibility to required funds:

Women may also not have an opportunity to access finance from external sources, such
as banks and other financial institutions, as a result of which they continue to choose to use
personal credit / savings to fund their companies. It discourages a lot of women from pursuing
entrepreneurship (Ayogu, 2015).
Religious predicament:
Some religion forbids women from leaving their homes and environments and thus
prevents them from engaging in company (Ayogu, 2015).

Non-involvement of women in decision making:

Women in all parts of the world and in all sectors are typically marginalized, particularly
in the planning stage of growth (Okunade, 2007).

61
The Offensive of the economic planner:
Women are utterly ignored in the process of economic planning. The view of the men
was believed to be the same as that of the women (Dane, 1984).

Much emphasis on domestic role:

No matter what role of a woman in society, she's always known for her domestic role. A
woman, whether she is a company owner, an educator, an entrepreneur or a doctor, must go
back to the kitchen. The famous statement that a woman's education ends in the kitchen appears
to discourage women from going to work (Kpohazounde, 1994).

Limited leadership role:

Women in particular, have often been considered not to be experienced in leadership
roles. They are generally granted a seconding role at business meetings and as government
officials (Mayoux, 2001).

Lesson 9. New Leadership Development Paradigm in Women

For most developed economies, the main players are no longer big corporations, but small
and medium-sized businesses that can provide solutions and adapt to the needs of emerging
information technologies (Ascher, 2012). While in the past industrialization has drawn more
women to business, today's environments give them a new role in creating innovation and
creativity, particularly where business interacts with standard of living. Modernization removes the
old laws, obstacles and old market practices that presented significant barriers to female
entrepreneurship (Gumussoy, 2016). In the current period, which is marked by intense domestic
and global competition and an uncertain economic climate, women entrepreneurs have a critical
part to play in generating new jobs and thereby lowering unemployment.

Around the globe, female entrepreneurship contributes to peace, well-being within

societies and creates economic opportunities for vulnerable groups, including women, low-wage
earners and minorities. The benefit is the development of wealth and jobs (Gumussoy, 2016).
Most women in developed countries remain illiterate, living in deprived communities. This
condition does not preclude them from engaging in local economies and from being

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entrepreneurs. Small companies make it possible for them to change their lives and. Those and
several others are generating new jobs. Women's involvement in economic life in developing
countries leads to a more egalitarian, cooperative, healthy and enjoyable working atmosphere in
women's-led enterprises, which are marked by individual growth (KPMG, 2015).

The following are worth considering to take women into workplace leadership.

Actively engage potential leaders.

Identify and engage in high-performing women with the ability and desire to lead, and give
them the courage to do so.

Treat leadership as a tangible skill.

Clarify the most admired and respected qualities of leaders in the organization — for
example, strategic thinking — and provide training opportunities and confidence building for
women who want to develop their skills.

Establish relationships and networks.

Actively link junior staff to female senior mentors / sponsors and build networking
opportunities regardless of rank.

Enhance the visibility of role models.

Highlight the senior female members.

Chart the path to leadership.

Provide simple steps for career growth, beginning with workers in their twenties in the
early stages of their careers.

Combine “soft” and “hard” rewards.

Strengthen and affirm the success and trust of women with direct and reliable personal
input, along with the more traditional benefits of promotions and promotions.

In order to motivate more women to enter the highest ranks, concentrate on three main areas:
• Socializing leadership early in life;

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 • Modeling leadership and building faith through role models and networking;
• to include or improve business development services that drive more women forward.

Specifically, corporations should:

• to recognize and cultivate those high-performing women who strive to lead;
• provide the kind of individual input that strengthens and creates confidence and high-
performance;
• developing empowered and efficient networks with the express objective of creating
opportunities for women to rise in leadership;
• actively provide leadership opportunities for eligible women;
• Establish demanding and ambitious career options for women at work.

Assessment Task 4

Entrepreneurial Essay: Write 5 paragraph composed of 1000 words about the significant
contributions of female entrepreneurs in Philippine economy.

Supplemental Activities: Read the following materials (PDF file will be posted to Edmodo class)
Measuring Entrepreneurial Mindset in Youth; Entrepreneurial Mindset: On Ramp to Opportunity.

Summary

The awareness of the potential of women entrepreneurs in our global society is no longer
a matter of discussion, but a realization that female entrepreneurship is now one of the main
factors leading to the growth of many countries. A key feature of entrepreneurship in today's global
economy is the change in women's lives, especially in terms of political and economic
empowerment, which translates into access to financial capital, increased opportunities for
education and training, power to influence decision-making in their communities, and autonomy
in personal life choices.

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 There are several factors that impede the ability of women entrepreneurs to seize
opportunities they have in their world, and these factors have been identified as the main reason
why women really aren't involved in the business. Which include weak financial management,
liquidity issues, inexperience and incompetence in management, inflation issues and other
external economic factors, bad or non-existent books and records, sales and marketing problems,
personnel difficulties, trade union difficulties, lack of professional guidance, small social and
business networks, low demand in the local economy, Housing tenure interest and program,
access to finance restrictions, lack of work experience and skills.

Women should understand that they have a significant role to play in developing a nation
and should therefore be prepared to participate in entrepreneurial activity, whether or not they are
funded. It will help to build their self-confidence and self-esteem, which are key factors in taking
the risks involved in launching and growing entrepreneurial ventures.

Female entrepreneurs should learn to profit from their environment, whether favorable or
unfavorable. Climate has the ability to draw or inspire women to enter into entrepreneurship.
Women entrepreneurs should take time to consider the obstacles that many women face in
business and to figure out how best to overcome such obstacles before deciding to start a
business. If women entrepreneurs were aware of the challenges they might encounter, they would
better prepare internally and strategically for the challenges they face.

Women entrepreneurs should aspire to be prepared, irrespective of the circumstances

that led them to set up their own business. Whether they are internally or externally motivated,
preparation and development of skills are essential for an effective and efficient service. This
would help to boost the success of women entrepreneurs.

References
Ascher, J., (2012). Female Entrepreneurship – An Appropriate Response to Gender
Discrimination. Journal of Entrepreneurship, Management and Innovation , 8(4), pp.97-114.
Bagby, R.D. (1988). The winds of change. Entrepreneurship: Theory and Practice, Editorial, Fall.
Dane, M. (1984). "http://www.women women unit.gov.uk.
GEM. (2005). Report on women and entrepreneurship, Global Entrepreneurship Monitor.

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Gumussoy, S., & Aktekin, E. (2016). Female gender and entrepreneurship. Pressacademia, 2(1),
170-170. doi: 10.17261/pressacademia.2016118639
Fact Tank - News In Numbers. (2020). Retrieved 27 July 2020, from
https://www.pewresearch.org/fact-tank/
Mayoux. (2001). Jobs, Gender and small enterprises: getting the policy environment Righ: An ILO
Working paper on series of women s entrepreneurship development and gender in enterprises-
WEDGE, NO. 15.
Moore, D. (1990). An examination of present research on the female entrepreneur suggested
research strategies for the 1990s. J. Business Ethics, 9: 275 281.
Parboteeach, K.P. (2000). Choice of type of corporate entrepreneurship: a process model. Acad.
Entrepreneurship J., 6(1).
Okunade, E.O. (2007). Influence of leadership role on women activities in women based rural
development projects in Osun State. Res. J. Soc. Sci., 2: 14 22.
Seno-Alday, S. (2017). Women and entrepreneurship The Philippines. Retrieved 27 July 2020,
from https://investinginwomen.asia/wp-content/uploads/2018/01/FS_WSMEs-Philippines.pdf

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