Joseph Schumpeter (1932)
Austrian political economist; dynamic economic growth
Entrepreneurs- Breakthrough Innovators
• Entrepreneurs are individuals who recognize
opportunities where others see chaos,
contradiction, and confusion.
• They are catalysts of CHANGE within the
marketplace
True Entrepreneurs
Henry Ford (Automobile)
Louis Francois Cartier (Jewelry)
Coco Chanel (Perfumeries)
Gianni & Donatella Versace (Fashion)
Fred Smith (FedEx)
Bill Gates (Microsoft)
Howard Schultz (Starbucks)
Amancio Ortega (Zara)
Steve Jobs (Apple)
Andy Grove & Gordon Moore (Intel)
Larry Page & Sergey Brin (Google)
Mark Zuckerberg (Facebook)
Jeff Bezos (Amazon)
Henry Sy (SM Malls & Properties, BDO)
Zobel de Ayalas (Ayala Conglomerate, BPI)
Lucio Tan (PAL, Fortune Tobacco)
John Gokongwei (Robinsons, URC)
George Ty (Federal Land, Metrobank)
The Entrepreneurial Mind
Entrepreneur, french word “entreprendre” meaning “to
undertake”
Evolution of Entrepreneurship
Notable Economists & Entrepreneurship
Richard Cantillon (1725)
French economist; “Entrepreneurs assume and organize
the risk of a business in return for profits.”
Jean Baptiste Say (1803)
French economist; the Law of Markets: “Supply creates
its own demand.”
known as “creative destruction.”
Entrepreneurship
• Discussion and analysis were introduced by the 18th
century economists.
• In the 20th century, it is synonymous or closely
linked to free enterprise and capitalism.
• In the 21st century, entrepreneurs are considered
heroes of free enterprise. Many of them have used
innovation and creativity to build multimillion-dollar
enterprises from fledgling businesses in less than a
decade.
Small Business Owners vs. Entrepreneurs
Small Business Owner
• Independently own and operate a small business
• Not dominant in their fields
• Do not engage in many new or innovative practices
• Simply expect stable sales and profits
• Include those who purchase already established
business as well as franchises
Entrepreneurs
• Recognize opportunities where others see chaos,
contradiction, and confusion
• Aggressive catalysts for change within a
marketplace
• Break new barriers, challenge the unknown, create
breakthroughs
• Create Jobs in a breathtaking pace
•
Are all about innovation, profitability, and growth,
thus
• Their business is characterized by innovative
practices and sustainable growth
• Their mind-set revolutionizes the way business is
conducted at every level in every country.
Entrepreneurship is a dynamic process of vision,
change, and creation. It requires an application of
energy and passion toward the creation and
implementation of innovative m ideas and creative
solutions.
Essential ingredients include
• the willingness to take calculated risks in terms of
time, equity, or career;
• the ability to formulate an effective venture team;
• the creative skill to marshal resources;
• the fundamental skill of building a solid business
plan; and, finally,
• the vision to recognize opportunity where others
see chaos, contradiction, and confusion
Myths of Entrepreneurship
Myth I: Entrepreneurs are doers, not thinkers
Indeed, they are often very methodical people who plan
their moves carefully.
Myth 2: Entrepreneurs are born, not made
Entrepreneurship is a discipline - it has models,
processes, and case studies can be studied.
Myth 3: Entrepreneurs are always inventors
Although many inventors are entrepreneurs,
entrepreneurs encompass all sorts of innovative
activity. Ray Kroc (McDonald's), Howard Schultz
(Starbucks)
Myth 4: Entrepreneurs are academic and social
misfits
Today, the entrepreneur is considered a hero socially,
economically, and academically viewed as a
professional role model.
Myth 5: Entrepreneurs must fit the profile
The environment, the venture, and the individual have
interactive effects that result to many different profiles.
Myth 6: All entrepreneurs need is money
To be successful, money is important, but more so is
managerial competence, adequate financial
understanding, careful planning, and many more.
Myth 7: All entrepreneurs need is luck
Luck happens when preparation meets opportunity.
They are simply better prepared to deal with situations
and turn them into successes.
What appears to be luck is actually preparation,
determination, desire, knowledge, and innovativeness.
Myth 8: Entrepreneurship is unstructured and
chaotic
Entrepreneurs are heavily involved in all facets of their
ventures. As a result, they are typically well-organized
individuals. They tend to have a system, elaborate or
not.
Myth 9: Most Entrepreneurial initiatives fail
The statistics of entrepreneurial failure rates have been
misleading over the years.
According to research by Bruce A. Kirchhoff, where he
traced 814,000 business in the US started in 1977, more
than 50% survive today, only 28% voluntarily closed,
and only 18% failed due to outstanding liabilities.
Myth 10: Entrepreneurs are extreme risk takers
Although it may appear that an entrepreneur is
gambling on a wild chance, the entrepreneur is usually
working on a moderate or calculated risk.
Most successful entrepreneurs work hard through
planning and preparation.
Entrepreneurship Revolution
Entrepreneurs are critical contributors to economic
growth, through their:
• Leadership
• Management
• Innovation
• R&D Effectiveness
• Job Creation
• Competitiveness
• Productivity
• Formation of New Industry
Entrepreneurship Revolution
Increase in entrepreneurs having significant impact in
local and global economies.
Impact of Entrepreneurial Ventures
• Entrepreneurship provides job options for those
who see opportunities and those who need a source
of income.
• Minority groups are provided an avenue to
contribute to the mainstream market
Entrepreneurship Education
• In the U.S. many baby boomers use Key Concepts
entrepreneurship for second career
• Entrepreneurs continue to be the answer to any Entrepreneurship
economic downturn.
The dynamic process of vision, change and innovation.
• Entrepreneurs enter and expand existing markets,
thereby increasing competition and economic Entrepreneur
efficiency
Individuals who possess the passion, energy, and skills
• Entrepreneurs create entirely new markets by
to innovate and sustain.
offering innovative products new ventures having
no direct competition Entrepreneurial Discipline
• Large existing firms in mature markets, who have
downsized, restructured, and reinvented Same techniques & principles whether in a large
themselves after becoming more entrepreneurial in organization or a new venture, business or nonbusiness,
the early 2000s are now thriving. government or NGO.
• The U.S. is the leader in entrepreneurship education Entrepreneurial Leadership
at both the undergraduate and graduate levels.
• Individuals with professional, technological, or The symbol of business tenacity and achievement —
business degrees exhibit the highest opening up new horizons, combining resources in new
entrepreneurial activity rate. ways, inspiring people.

Entrepreneurship Research Theory of Development of

Entrepreneurship
The major themes that characterize recent
research on entrepreneurship A theory of entrepreneurship is a verifiable and
coherent formulation of relationships, or underlying
• Venture financing and other innovative financing principles, that either explain entrepreneurship, predict
techniques. entrepreneurial activity, or provide normative guidance.
• Corporate entrepreneurship entrepreneurial action
within large organizations. Approaches to the Theory of
• Social entrepreneurship innovative solutions to
Entrepreneurship
world problems.
• Entrepreneurial cognition - examining the ways that Schools of Thought Approach
entrepreneurs think and act
• Women and minority entrepreneurs - learning from Theory development focuses more on the concept
the unique obstacles they face and must overcome of entrepreneurship.
• The global entrepreneurial movement - WEF
research shows significant entrepreneurial success
Process Approach
(2000-2009) in the following countries: U.S., Theory development focuses more on the flow of the
Canada, U.K., Germany, France, Sweden, Norway, entrepreneurial process.
Israel, China, India, Japan, Australia, and New
Zealand.
• Family businesses have shown significant impact on
job creation, innovation, and economic renewal.
• Entrepreneurship education — hottest topics in
business and engineering schools throughout the
world; and has expanded to include almost every
major discipline.
 Micro View
The entrepreneur has the ability to control or direct the
outcomes.

Macro View
External factors influence the actions of the
entrepreneur.