Entrepreneurship
- Business idea is turned into a business
Chapter 1: The Entrepreneurial Mindset
Entrepreneur
- Comes from the French word
“entreprende” which means to
undertake.
- Individuals who have initiated the
establishment of a business concept.
2 types of entrepreneurs
1. Mega Entrepreneurs
2. Micro Entrepreneurs
Mega Entrepreneurs
- Generated substantial value and profits.
- Willing to absorb huge risks.
- Create a big amount of value-added.
Micro Entrepreneurs
- Value-added and profits they make are
limited.
- Short in funds and inadequate in skills.
- Engage in micro and small business.
Entrepreneurial Process
- Entrepreneurial Discipline which
involves stages from the awareness of
an opportunity to the realization of a
business idea.
Discovery
- Recognition of a business idea or
detection of opportunities.
- Mega entrepreneurs draw their ideas
from current inventions and other
technological developments.
- Micro entrepreneurs get their business
ideas from the limitations of existing
products.
Development of a Business Concept
concept.
- Suggests the preparation of “business
plan.”
Business plan – describe how the
enterprise is going to be organized and
managed.
Organizing Resources
- Describes the process of identifying,
sourcing, and financing human,
nonhuman, and other resources
needed for the conduct of business.
- Mega entrepreneurs require highly
educated, technologically savvy, and
creative employees.
Implementation
- Process of carrying out the business
plan.
- Covers a number of activities, including
the management of human, physical,
technological, and financial resources of
the business.
- Includes mechanisms for actual and
potential rivals.
Reaping the Returns
- Strategies related to the expansion of
the business firm.
Characteristics of an Entrepreneur:
 Level Of Education
 Employment Status
 Entrepreneur’s Wealth
 Risk Appetite
Level of education
- Entrepreneurs need some formal
education to be able to seize the
opportunities presented by inventions,
innovations, and other technological
developments.
Employment Status
- Individuals who become entrepreneurs
in developed countries are usually
former employees of companies in the
formal sector.
Entrepreneurs’ Wealth
- Wealth of an entrepreneur is an
important factor.
Risk Appetite
- Risk is also an important factor in
undertaking any business venture.
- Are associated with uncertainties in
business concept.
Entrepreneurial Traits and
Entrepreneurial Intentions
Entrepreneurial Intentions – planned actions
formulated in the mind of individuals.
1. Internal Factors – qualities of
individuals.
 Demographics
 Personal Traits
 Psychological Traits
2. External Factors – are also significant
determinants.
 Environmental Support
 Environmental Influence
Internal Factors
Demographics – refer to gender, marital status,
age, and employment status.
Personal Traits – theoretical bases for the
contributions of self-confidence, determination,
and enthusiasm.
Psychological Traits – host of qualities
- Need for achievement
- Risk appetite
- Acceptance for vagueness
- Self-efficiency
- Goal Setting
External Factors
Environmental Support – an individual will be
inclined to pursue entrepreneurship if support
from various governments agencies is
forthcoming.
Environmental Influence – regulatory structure,
patents, protection of property rights, and
competitive environment.
Entrepreneurial Decision Making
 Critical Thinking
 Creative Thinking
 Blue Ocean Strategy
 Strategic Thinking
Critical Thinking
- Systematic and rational way of
providing an answer to a question.
- Useful in explaining how a firm can
survive and remain stable.
- SWOT analysis (Strengths,
Weaknesses, Opportunities, and
Threats) – show how businesses can
use their strengths to take advantage of
opportunities.
Creative Thinking
- Thought processes that bring about
discovery of new ideas.
- Useful in developing new products.
Blue Ocean Strategy C. From the person
- When Entrepreneurs source their
- Provides examples of enterprises that
ideas through their own interests,
use creative thinking.
hobbies, dreams, skills etc...
- Utilizes creative mechanisms to
- Skills learned from prior
eliminate competition.
employment can be a source of
Strategic Thinking business ideas as shown in several
studies
- Thought processes that assess a current D. From relationships
situation. - Entrepreneurs source their ideas
Chapter 2: Generating Ideas: Harnessing, through relationships, whether it
Logic, And Creativity would be from a friend or family
business.
Sources of Ideas for Entrepreneurial
Ventures categorized into four major Methods for Generating or Testing
sources New Ideas
 From the product  Generating Business Ideas Through
 From the process Logical Thinking
 From the person  Generating Business Ideas Through
 From relationships Creative Thinking
 Generating Business Ideas Through
A. From the Product Trends In Business Environment
Many entrepreneurs have introduced
Generating Through Logical Thinking
new products and services by
differentiating them from those - Logical thinking
currently in the market - Statistical Analysis
- Swot Analysis
Annoyance-driven innovation - Delphi Technique
- Karl Ulrich
- Successful entrepreneurs introduce Logical Thinking
new products because of their
- Refers to the systematic and
dissatisfaction with those available
rational way of providing an
in the market
answer to a question.
B. From the Process
- It is systematic since it follows
- Entrepreneurs can source ideas
steps in responding to an inquiry.
through the process & distribution
- It is rational because it adheres to
of your own product
the rules of logic connecting the
relationships of variables and in
making conclusions
Statistical Analysis

- refers to a systematic analysis of

data generated from a survey of
individuals
- can describe the trend in demand
for a particular product.
- Related to statistical analysis is
market analysis, which is
undertaken to know the various
factors that affect the demand for a
particular product or service.

SWOT Analysis

- analysis is usually undertaken to

describe the state of competition
within and industry.

Delphi Technique

- is the systematic way of generating

ideas from a select group of
individuals using various rounds of
consultations or sessions.