ORIGIN AND NATURE OF

ENTREPRENEURSHIP
OBJECTIVES
 Identify the origin and nature of
Entrepreneurship
 Distinguish newness from innovation

 Enumerate the broad impact of

Entrepreneurship upon the economy
 Determine contemporary views of
Entrepreneurship
EVOLUTION OF ENTREPRENEURSHIP

 Entrepreneur or entrepreneurship originated in

Europe sometime in the Middle Ages. There is no
controversy that the word entrepreneur of French
origin from the word “entreprende,” which simply
means “to undertake.”
CONTEMPORARY VIEWS ON
ENTREPRENEURSHIP

 Lloyd Shefksy, in his book entitled, Entrepreneurs

are Made Not Born, defined entrepreneur by
dissecting the word entrepreneur into three parts as
follows:
 -entre means to enter

 -pre means before; and

 -neur means nerve center

 Shefsky’s practical view on the term entrepreneur
leads to a definition of the word as someone who
enters a business – any business- in time to form or
change substantially that business nerve center.

 Karl Vesper describes an entrepreneur in a

broader perspective by postulating that
entrepreneurship is now a concern of various
professions.
 To an economist, an entrepreneur is one who brings
resources, labor, materials, and other assets into
combinations that make their value greater than
before, and also one who introduces changes,
innovation, and a new order.

 To a psychologist, entrepreneur could refer to such a

person as typically driven by certain forces.
 To one businessman, an entrepreneur appears as a
threat, an aggressive competitor, whereas to another
businessman, the entrepreneur may be an ally, a
source of supply, a customer, or someone good to
invest in.

 Professor Robert Nelson of the University of

Illinois defines entrepreneur as “a person who is able
to look at the environment, identify opportunities to
improve the environment, marshal resources, and
implement action to maximize those opportunities.”
 Author Albert Shapero who has studied other works
on entrepreneurship has opined that in all of the
definitions of entrepreneurship, there is an
agreement that we are talking about a kind of
behavior that includes the following:
 - initiative taking

 - the organizing and recognizing of social/ economic

mechanisms to turn resources and situations to
practical account
 - the acceptance of risks and failure
 Entrepreneurship is the process of creating
something different with value by devoting the
necessary time and effort, assuming the accompanying
financial, psychic, and social risks, and receiving the
result rewards of monetary and personal satisfaction.
 Dr. N. A. Orcullo, Jr., in his book Contemporary
Entrepreneurship, mentioned William Bygrave about
his recent studies on entrepreneurship declaring the
last decade of the 20th century as the entrepreneurial
age. His idea of entrepreneurship revolves around the
notion that:

 First, an entrepreneur is someone who perceives an

opportunity and creates an organization to pursue it.

 Second, the entrepreneurial process involves all the

functions, activities, and actions associated with
perceiving opportunities and creating organizations to
pursue them.
ENTREPRENEURSHIP IS A PROCESS AND
APPROACH

 As an approach, the entrepreneur considers the

business opportunity as a chance to solve the problem
rather than solving the problem itself.
 The entrepreneurial event focuses on the process of the
entrepreneurial activity and includes the following
factors:

 A) Initiative: An individual or group takes the

initiative.
 B) Organization: Resources are brought together in
organization to accomplish some objective (or the
resources in existing organization are reorganized).
SOCIO-ECONOMIC BENEFITS FROM
ENTREPRENEURSHIP
 Entrepreneurs have prove over and over again to
be the pioneers who convert ideas into products
and dreams into reality. Entrepreneurs blend
creativity, innovation and risk taking with hard
work to form and nurture new ventures.
OTHER THAN THE AFOREMENTIONED BROAD IMPACTS
OF ENTREPRENEURSHIP UPON THE ECONOMY, IT ALSO
BRINGS THE FOLLOWING SOCIO-ECONOMIC BENEFITS:

a. Promotes self-help and unemployment.

b. Mobilizes capital.
c. Provides taxes to the economy.
d. Empower individuals.
e. Enhance national identity and pride.
f. Enhance competitive consciousness.
g. Improves quality of life.
h. Enhances equitable distribution of income
and wealth.