GE ELECT 1- The Entrepreneurial Mind

Prof. Hapilen M. Dacasin CoE.,MME. The Entrepreneurial Mind

 ENTREPRENEURSHIP THEORIES

1600 – French verb – Entreprendre – to

undertake.

1700 – Person bearing Risk or Profit in a fixed

price contract

1725 – Richard Cantillon – Person bearing risks

is different from Capital Supplier

1803 – J. B. Say – Shifts economic resources out

from an area of lower to higher productivity &
greater yields

Prof. Hapilen M. Dacasin CoE.,MME. The Entrepreneurial Mind

 1934 – Joseph Schumpeter – Innovator and
develops untried technology

1961 – David McClelland – Highly motivated,

energetic, moderate risk taker

1964 – Peter Drucker – Searches for change,

responds to it & exploits as opportunity

1980 – Karl Vesper- behavior Perceptions-

Economists, Psychologists, Businessmen,
Politicians

Prof. Hapilen M. Dacasin CoE.,MME. The Entrepreneurial Mind

 1983 – Gifford Pinchot- Intrapreneur

1985 – Robert Hisrich – Creating something different

with value, devoting time & effort, assuming risks (FPS);
results– rewards and satisfaction

Entrepreneurs are people who create new business activity in the economy and bear
considerable business risk in the process. This is often done by starting new companies. But
they can also create new business activity by introducing a new product or creating a new
market

Prof. Hapilen M. Dacasin CoE.,MME. The Entrepreneurial Mind

 Some other related facts about Entrepreneurship

• Entrepreneurs are made

• Incubator organization is an organization that supports entrepreneurs
• Venture Capitalists (is an investor who provides capital to firms that
exhibit high growth potential in exchange for an equity stake.
• Angels are private individuals who invest directly in firms and receive
equity stake in return – they act as advisers to founders
• Don’t confuse entrepreneurship with running a business.

Prof. Hapilen M. Dacasin CoE.,MME. The Entrepreneurial Mind

 How do you define an entrepreneur in the
21st century?

An entrepreneur of 21st century is a customer focused

innovator. He uses e–knowledge. Advantage is speed.
He is a global thinker even though he may not
necessarily be a global player.

Prof. Hapilen M. Dacasin CoE.,MME. The Entrepreneurial Mind

 Entrepreneurship (standard New Definition) – is the process
of creating something different with value by devoting the
necessary time and effort, assuming the accompanying
financial, psychic, social risks and receiving the resulting
rewards of monetary and personal satisfaction and
independence.

New definition involves four aspects:

o The creation process
o Devotion of time and efforts
o Assumption of risks
o Rewards of independence, satisfaction, money

Prof. Hapilen M. Dacasin CoE.,MME. The Entrepreneurial Mind

 Independence
and satisfaction
Provides self- Unlimited
employment income /higher
for the retained
entrepreneur income

Advantages of Entrepreneurship ( TO AN INDIVIDUAL)

Entrepreneur Freedom to
can provide use own ideas-
employment Innovation and
for near and creativity
Entrepreneurship
dear one as
often provides an
well
employment and
livelihood for next
generations as well.

Prof. Hapilen M. Dacasin CoE.,MME. The Entrepreneurial Mind

 Advantages of
Entrepreneurship
( TO THE NATION)

Accelerates the
pace of economic
development

Prof. Hapilen M. Dacasin CoE.,MME. The Entrepreneurial Mind

 Protective
Developed
Infrastructure
Financial and Growth of Risk Taking
Assistance Promotional Education Abilities
Facilities
Policies

Factors Favouring Entrepreneurship

Technical/
Environment
Hunger for Social Industrial
/Culture Globalization
Success Impact Security Training
Facilities

Prof. Hapilen M. Dacasin CoE.,MME. The Entrepreneurial Mind

 Analytical Perseverance
ability to
take
strategic
decisions Flexibility
Ability to
identify and
explore
opportunities
Capacity to
plan and
organize

Win-win
personality
Preparedness
to undergo
physical and
emotional
stress

Determination
to win

Positive self -
concept/Self
Belief
Willingness
to take
moderate
risks Future
urge for orientation
Ethics and
achievement values

What Makes a Successful Entrepreneur?

Prof. Hapilen M. Dacasin CoE.,MME. The Entrepreneurial Mind