Reviewer

Entrepreneurial Mind

Handout 1 (Entrepreneurship in Perspective)

Enterprising – means “marked by imagination, initiative, and readiness to undertake new projects”
Entrepreneurial – means “willing to take risks to create value”

Entrepreneurial Economy
Entrepreneurship is the symbol or business tenacity and achievements. Entrepreneurs are the
pioneers of today’s business successes.

Three (3) indispensable contributions of entrepreneurship to the economy.

1. Entrepreneurs create new businesses – the goods and services offered by entrepreneurs
can produce economic development.
2. Entrepreneurs contribute greatly to national development – new and improved products,
services, or technology from entrepreneurs enable new markets to be developed and new
wealth to be produced.
3. Entrepreneurs create social change – through the unique offering of new goods and
services entrepreneurs can improved quality of life, improved morale and greater economic
freedom.
Entrepreneurs Spectrum
1. Entrepreneurs on starting a business from scratch – some entrepreneurs start their
business with a vision from the scratch because of that it enables them to be productive. The
entrepreneurs can do what s/he wants and needs to do effectively, and the results will be up to
his/her high standards.
2. Entrepreneurs on starting a family business – entrepreneurs start a family business due to
its long term orientation. Most family businesses aim to maximize the well being pf current and
future generations from a transgenerational perspective.
3. Entrepreneurs of entering a partnership - A partnership is an excellent way for
entrepreneurs to leverage existing resources between parties. Having partners can mean
multiple sources of cash flow, which will benefit the business during the start-up and growth
phases. Other entrepreneurs enter partnership to diversify their expertise. When engaging with
partners of different expertise can help entrepreneurs to broaden the scope of their business.
4. Entrepreneurs on buying an existing business – the idea of buying an existing business is
less risky that starting a new one but it is really expensive. Because they take over an
operation that already generating cash flow and profits. In conclusion buying an existing
business is a great choice especially if the business was already had a great track records,
advantages of it is some investors and bankers are comfortable negotiating and having a
business talk with a company that has a great track record and entrepreneurs can have a legal
rights such us using the current name or simply copyright or patents.
Entrepreneurship and Sustainable Development
Many executives still see the world from an Industrial Age point of view. The only way to begin
shifting priorities is to consider the Modern Age system. In this new way of looking at the world, the
biggest circle is the environment and within that circle is human society. The economy, industries,
and individual businesses are much smaller circles that fit within society and the environment.

Triple Bottom Line (TBL)

The phrase "the triple bottom line" was coined in 1994 by John Elkington. TBL consists of three (3)
Ps: profit, people, and the planet. It aims to measure the financial, social, and environmental
performance of the corporation over some time. Only a company that produces a TBL considers the
full cost of doing business.

Profit – it refers to the real economic value created by the business and enjoyed by the host society.
People – it refers to a business’s impact on employees and people outside of the business
(community)
Planet – it refers to environmental stewardship. Entrepreneurs enhance the natural order and
minimize their ecological impact in the wide variety of ways that are not only cost effective but easy to
implement and adopt.

Handout 2 (Entrepreneurship and value creation)

Entrepreneurial Traits

Entrepreneurs have an empowering perspective of failure

NEVER TAKE FAILURE PERSONALLY (FAILURE IS A VERB, NOT A NOUN)
Entrepreneurs mist seek and find the answers they need . It does no good to stay angry snd blame
others for a failure after it happened.

Entrepreneurs knows a little about a lot

RULE NUMBER 5, DON’T TAKE YOURSELF SO SERIOUSLY

Entrepreneurs give and receive praise correction

A SPOONFUL OF SUGAR HELPS THE MEDICINE GO DOWN

Entrepreneurs fly with eagles

PEOPLE BEFORE THE PROCESS. CUSTOMERS BEFORE POLICY

Entrepreneurs look into the future

Vision makes things happen; good health does not just happen without a vision to make it happen.
Vision attracts power, it’s what attracts wisdom. Great entrepreneurs use vision to create a balanced
approach to productivity.
WHERE IT IS IMPORTANT TO VALUE HINDSIGHT, DON’T LETNIT LIMIT YOUR FORESIGHT

Entrepreneurs that changed the world

Tony Tan Caktiong (Jollibee)
Angeline Tham (Angkas Ride Sharing App)
Howard Schultz (Starbucks Coffee Company)
Phil Knight (Nike)
Reed Hastings (Netflix)
Amancio Ortega (Zara)
Walt Disney (The Walt Disney Company)
Mark Zuckerberg (Facebook)
Steve Jobs (Apple)
Elon Musk (SpaceX)
Anne Wojcicki (23andMe)
Larry Page and Sergey Brin (Alphabet)

Value Creation
The Entrepreneurial Value Creation Theory – it explains how entrepreneurs create value through a
venture. The problem with the model is that work is becoming commoditized at an increasing rate,
extending beyond manual task into knowledge work, as data entry, purchasing, billing, payroll and
similar responsibilities become automated. The value pf products and services today is based on
creativity. Value creation in the past was a function of economies of industrial scale: mass production
and the high efficiency of repeatable tasks. Value creation in the future will be based on economies of
creativity: mass customization and the high value of bringing a new product or service improvement
to the market. Becoming “more innovative” has become a mantra of management gurus, but it is clear
that this advice is not enough. The challenge is not just creating value from innovation but also
capturing the value.

The Rationale for Sustainable World

In the first stage of the Industrial Revolution (1750-1820), the rise of large-scale manufacturing
caused labor productivity in England to rise a hundredfold. It did not take long for innovations such as
the assembly line to spread to other countries in northern Europe and to the hinterlands of the United
States. The country's industrial production grew thirty-fold as its population increased from about 10
million to 63 million between 1820 and 1890. As industrial expansion continued into the twentieth
century, life expectancy in the industrial world roughly doubled and literacy jumped from 20 percent to
over 90 percent. In the 1800s, England's level of fossil fuel combustion grew dramatically, and so did
water and air pollution levels. By 1952, air quality in London was so bad that the "great smog" killed
more than 4,000 people and galvanized the government to create air pollution regulations.

Creating Beyond Reactive Problem Solving

“Creating draws energy from dreams or visions of what people truly want to see exist (in concert with
an accurate and insightful understanding of what is). Reactive problem solving draws its energy from
crises, usually driven by an underlying emotion of fear (fear of the consequences if we fail to solve the
problems).”
A sustainable future will involve bringing over time a new energy system, new types of buildings and
transport, and new ways to dramatically reduce waste and toxicity – based on new products,
processes, business models, and methods of managing and leading. It will require passion and
patience, people working together toward aims that have genuine meaning for them, and opening
themselves to ideas that may seem foreign and even threatening.

Handout 3 (Entrepreneurial Thinking)

Entrepreneurial Curiosity
Curiosity is crucial to innovation because it moves people to look at the world from a different
perspective and to ask questions rather than accepting the status quo. Curiosity is an essential tool
for fighting conformity and can be harnessed to create new forms of social and economic growth,
according to the World Economic Forum (WEF).
“Curiosity is the spark of creativity and innovation, the best long term investment a person can make”

Egon Zehnder, A global management consulting firm has found that as the business environment
becomes more complex, it is increasingly important for people to be able to adapt quickly and
effectively to deal with unexpected situations.

The research created a model that consists of four (4) dimensions:

1. Curiosity – a thirst for new experiences and knowledge; an openness to feedback, learning, and
change.
2. Insight – the ability to gather and synthesize information that suggests new possibilities.
3. Engagement – the ability to connect with others and communicate a vision.
4. Determination – the persistence to overcome obstacles and achieve challenging goals.

Curiosity triggers a direct response to situations that challenge our assumptions, and our capacity to
question unlocks the potential for change that such situations represent.

Enhancing Entrepreneurial Curiosity

Ask the Right Questions
First, differentiate an excellent question from a bad question. In general, a bad question does not
encourage a substantive answer.

Innovation time (20% rule for cultivating ideas)

Google employees are encouraged to spend 20% of their week on new ideas that interest them.
Some of Google's widely-used products, such as Gmail and Google News, were born from this
practice. Google has estimated that as much as 50% of its new product launches originate from
innovation time. CEO Eric Schmidt is often credited with pioneering a 70/20/10 management model.

Always listen without judgment

Curious people are non-blaming, non-shaming, and supportive, focused on exploring options to find
the best solution that supports collaboration and leads to innovation. They seek to understand the
perspectives of others and are willing to sit in ambiguous, open, and curious without being invested in
the outcome. According to Kathy Taberner, co-founder of the Institute of Curiosity, curious people
have no hidden agenda.

Handout 4 (Disruptive Thinking and Innovation)

Types of Innovation
Process Innovation – is a change in how a product or service is manufactured, created, or
distributed to achieve greater efficiencies.
Product/Services Innovation – are creating new ideas that do not alter established business
models.
Disruptive Innovation - introduces a new value proposition. It either creates new markets or
reshapes existing markets. There are two (2) types of disruptive innovations: low-end and new-
market. It is any situation in which an industry is shaken up, and previously successful incumbents
stumble.
Low-end disruptive innovations – can occur when existing products and services are “too
good” and hence overpriced relative to the value existing customers can use.
New-market disruptive innovations – can occur when characteristics of existing products
limit the number of potential consumers or force consumption to take place in inconvenient,
centralized settings

Disruptive Innovation Theory

Disruptive innovation describes inventions that make products and services more accessible,
affordable, and available to a larger population. The following are the four (4) points to identify
disruptive innovation:
1. Distribution is a process - The term "disruptive innovation" is misleading when it refers to a single
fixed point in the development of a product or service rather than the evolution of that product and
service over time.
2. Disrupters often build business models that are very different from those of incumbents -
Convenience care clinics are taking a disruptive path by using the "process" business model. They
follow standardized protocols to diagnose and treat a small but increasing number of disorders.
General practitioners rely on their years of experience and test results to interpret patients' symptoms,
make diagnoses, and prescribe treatment.
3. Some Disruptive innovations succeed; some don’t - A common mistake is to think that a
company is disruptive by its success, rather than the path it took to get there. Success is not built into
the definition of disruption, and not every triumphant newcomer follows a disruptive way. Not every
disruptive path leads to a triumph, and neither do all successful companies follow a disruptive path.
4. The mantra “disrupt or be disrupted “ can misguide people - Incumbent companies need to
respond to the disruption if it occurs, but they should not overreact by dismantling a still-profitable
business. Instead, they should continue strengthening relationships with core customers by investing
in sustaining innovations.