JHAMAIYA D.

SARIP BSN

zModule 1 - Entrepreneurial Mindset

What is ENTREPRENEURSHIP?

 Is regarded as a key tool for empowering the poor, enhancing production, and as a driving force
for innovation and an engine of economic growth. It is recognized that entrepreneurship can
provide the solution by creating wealth, jobs, and social empowerment. If we are to address the
issue of poverty with some degree of success, life tells us we have no choice but to actively
encourage entrepreneurial ventures.
 Self-employment of any sort.
 Activity that involves identifying opportunities within the economic system.

 Entrepreneurship is the willingness and ability of an individual to seek out investment

opportunities in an environment and be able to establish and run an enterprise successfully
based on identifiable opportunities.
 Entrepreneurship is a process of seeing and evaluating business opportunities gathering the
necessary resources to take advantage of them and initiating appropriate action to ensure
success.
 Refers to all the processes and activities involved in establishing, nurturing, and sustaining a
business enterprise. It is an economic activity that involves setting up, operating, and taking the
financial risk of a business.
 It involves seeking opportunities for a market establishing and operating and business out of the
opportunity and assessing it’s refrigerate monitoring of the operations.

What is MINDSET?

 Is the underlying mechanism that can expose opportunities and ignite our ambition, engaging
our faculties in ways that enable us to flourish and thrive. Yet our mindset can also blind us to
opportunities and hinder our ability to learn and grow, keeping us tethered to familiar, yet
unproductive patterns of thought and action.

What is an ENTREPRENEURIAL MINDSET?

 Is a way of thinking that enables individuals to overcome challenges, be decisive, and accept
responsibility for their outcomes. It is a constant need to improve skills, learn from past
mistakes, and take continuous action to fully develop ideas. Anyone willing to do the work can
develop an entrepreneurial mindset.
 Is a specific set of beliefs, knowledge, and thought processes that drive entrepreneurial
behaviour.

Those with an entrepreneurial mindset tend to:

 Believe in their ability to succeed and influence their own outcomes, empowering them to take
ownership of their lives;
 Have compelling goals that keep them future-focused in intrinsically motivated, driving them to
be self-directed, action-oriented, and highly engaged;
 Have an optimistic interpretation of adverse events and see problems as potential opportunities
becoming highly resilient, resourceful, and solution-oriented even within highly uncertain,
resource-constrained environments.
 Be lifelong knowledge seekers with a focus on micro-experiments as learning opportunities to
test ideas, cultivation, curiosity, creativity, and critical thinking;
 Display a high level of reliability, understanding the following through on simple solutions can
lead to unforeseen opportunities;
 Have a humanistic look, being other focus and understanding that one creates value by looking
to solve problems for others;
 Surround themselves with an intentional community of positive influence and critical guidance.
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Entrepreneur
 A person who sets up a business or business, taking on financial risk in the hope of profit.
 A person who attempts to create a new product , service, or solution for accepting responsibility
for the results. Someone who has a vision.
 Define it as one who combines various input factors in an innovative manner to generate value
for the customer with the hope that this value will exceed the cost of the input factors, thus
generating superior returns that result in the creation of wealth.
 Entrepreneurs create value by introducing new products or services of finding better ways of
making them.

Levels of Entrepreneurial Development

1. The Self-employed
 Not comfortable with the routines of a desk job
 They do not want to conform to a fixed working schedule.
 They do not want to be controlled.
2. The Manager

3. The Leader
 They enjoy people flourishing with minimal supervision.
 They focus on their business's bigger picture and strategic directions instead of boosting sales.
4. The Investor
 Look for more opportunities to grow your business.
 They will delegate a suitable manager for such operations and will act as directors.
5. The True Entrepreneur
 Aim for quality and excellence
 They have fully learned and continue to practice a four-step process of
 thinking:
 Idealization, Visualization, Verbalization? Materialization

Core Competencies
1. Cognitive skills
- Understand written materials
- Learn and apply new information
- Solve problems
- Create new ideas
- Have your mind work
2. Technical skills
- Information technology: Research and Development
- Feasibility study and business plan: Technical writing
- Organization and management; marketing
- Operations: finance into personal skills
- Nonverbal and verbal communication
- Listening reading negotiating
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Module 2 Entrepreneurial Development
– The Practice of Entrepreneurship
 Ancient Times
 Middle Ages
 Industrial Revolution
 World War II
 Contemporary Era
“The past is behind you, learn from it.
The future is ahead, prepare for it. The
present is here, live it. ”
-Thomas S.
Monson
“Entrepreneur” Has its roots in the French
language “entreprendre” means “to
undertake”.
Was first used in the French language in the
16th century to refer to someone who
undertakes a business venture or enterprise.
Jean-Baptiste Say
- a French economist who was often
credited with popularizing the term
"entrepreneur" in the 18th and 19th
centuries through his writings on
economics and entrepreneurship
ANCIENT TIMES
- The idea of entrepreneurship can be
traced back to ancient civilizations
such as Mesopotamia, where
merchants and traders engage in
commercial activities to support the
growth of their communities. The
ancient Greeks and Romans also had
a tradition of entrepreneurship, with
individuals engaging in trade,
manufacturing, and other
commercial activities.
MIDDLE AGES
- During the Middle Ages,
entrepreneurs such as guild masters,
artisans, and merchants played a vital
role in the growth of the European
economy. In the 16th century, the
emergence of mercantilism and the
growth of trade and commerce led to
the development of the modern
concept of entrepreneurship.
INDUSTRIAL REVOLUTION
- The Industrial Revolution of the 18th
and 19th centuries saw the
emergence of a new type of
entrepreneur, characterized by the
development of new technologies,
the growth of large-scale
manufacturing, and the rise of
capitalism. Entrepreneurs such as
Andrew Carnegie and John D.
Rockefeller played a key role in the
development of the steel and oil
industry, respectively.
CONTEMPORARY ERA
- Today, entrepreneurship continues
to play a vital role in economic
growth and innovation. The term
“entrepreneurship” has come to
encompass a wide range of activities,
including developing new
technologies, creating new
businesses and industries, and
pursuing social and environmental
goals.
 Brief Overview of the History of
Entrepreneurship
Ancient Times: The concept of
entrepreneurship can be traced back to
ancient civilizations such as
Mesopotamia, where merchants and
traders engaged in commercial activities
to support the growth of their
communities (Jones, 2006). In ancient
Greece, entrepreneurs played a key role
in the development of the city-states,
creating new businesses and industries
that contributed to the growth of the
economy (Casson, 1982)
 Development of Economic Systems
 Advancement of Trade and
Commerce
 Promotion of Innovation and
Creativity
 Creation of Job Opportunities
 Improvement of Living Standards
 Development of Social and Cultural
Structures
 Promotion of International Relations
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Medieval Europe: During the Middle Ages,
entrepreneurs such as guild masters, artisans,
and merchants played a vital role in the
growth of the European economy. These
entrepreneurs created new businesses and
traded goods across borders, and developed
new technologies and innovations that
transformed the way people lived and worked
(Cameron, 1969)
 Development of Guilds
 Advancement of Trade and
Commerce
 Promotion of Craftsmanship
 Expansion of Markets
 Development of Banking and Finance
 Promotion of Education and Training
 Contribution to the Growth of the
European Economy
Industrial Revolution: The 18th and 19th
centuries saw the emergence of the Industrial
Revolution, which brought about major
technological advancements and economic
growth. Entrepreneurs such as James Watt,
Thomas Edison, and Henry Ford played a key
role in the development of new technologies
and industries, leading to significant
improvements in productivity, transportation,
and communication (McCraw, 2007)
 Innovation and Invention
 Investment and Capital
 Market Expansion
 Employment Generation
 Development of Banking and Finance
 Promotion of Education and Training
 Social and Economic Reforms
Post-World War II: In the post-World War II
era, entrepreneurship became a key driver of
economic growth and development. Countries
around the world, from Japan to the United
States, embraced entrepreneurship as a
means of stimulating innovation and creating
jobs (Saxenian, 2006).
 Technological Innovations
 Economic Growth
 Globalization
 Social and Environmental
Responsibility
 Innovation in Marketing and
Advertising
 Venture Capital
 Promotion of Entrepreneurship
Contemporary Era: Today, entrepreneurship
continues to play a crucial role in the global
economy, with entrepreneurs creating new
businesses, products, and services that drive
innovation and growth. The rise of the digital
economy has led to the emergence of new
types of entrepreneurship, such as social
entrepreneurship and digital
entrepreneurship, which are focused on
creating social impact and leveraging new
technologies to drive growth (Mason &
Brown, 2014)
 Digital Transformation
 E-commerce
 Sustainability and Social Impact
 Sharing Economy
 Artificial Intelligence and Automation
 Cryptocurrencies and Blockchain
 Diversity and Inclusion
Known Entrepreneurs during Historical
Periods:
Ancient Times
Hammurabi of Babylon (ruled from 1792 BC to
1750 BC) was an ancient king who enacted a
code of laws that promoted fair trade and
commerce in Mesopotamia.
Mithridates VI of Pontus (r. 120-63BC) was a
ruler who was known for his financial acumen
and entrepreneurship, investing in silver
mines and founding a bank.
Medieval Europe
Giovanni di Bicci de ' Medici (1360-1429) was
a Florentine banker and entrepreneur who
founded the Medici Bank, which became one
of the most influential financial institutions in
Europe.
Richard Whittington (c. 1354-1423) was an
English merchant and philanthropist who
became Lord Mayor of London four times. He
was known for his entrepreneurship and
charitable activities.
Industrial Revolution
Andrew Carnegie (1835-1919) was a Scottish-
American industrialist who made his fortune
in the steel industry. He was a philanthropist
who gave away much of his wealth to support
education and public libraries.
John D. Rockefeller (1839-1937) was an
American oil magnate who founded the
Standard Oil Company, which controlled much
of the oil industry in the late 19th century.
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Post-World War II
Sam Walton (1918-1992) was an American
entrepreneur who founded Walmart, which
became one of the largest retailers in the
world.
Steve Jobs (1955-2011) was an American
entrepreneur who co-founded Apple Inc.,
which revolutionized the computer and
smartphone industries.
Contemporary Era
Elon Musk (born1971) is a South African-born
entrepreneur who founded Tesla, SpaceX, and
other companies focused on electric vehicles,
space exploration, and renewable energy.
Jeff Bezos (born1964) is an American
entrepreneur who founded Amazon, which
became the world's largest online retailer and
transformed the way people shop online.
Lesson 3: Economic Theories of
Entrepreneurship
Economic Theories of Entrepreneurship
Theories provide explanations for
phenomena, deepening our understanding by
conceptualizing relationships and
mechanisms. They aid prediction, enabling
hypotheses and informed forecasts. Theories
guide research, helping formulate questions,
identify gaps, and design studies. They also
have practical applications, informing
decision-making and strategies by offering
insights into desired outcomes based on the
underlying framework.
Economic theories of entrepreneurship are
frameworks within the field of economics that
seek to explain the role and behavior of
entrepreneurs in the economy. These theories
provide insights into how entrepreneurship
contributes to economic growth, innovation,
resource allocation, and overall market
dynamics. Here are some key points regarding
the significance of economic theories of
entrepreneurship:
1. Understanding Entrepreneurial
Behavior: Economic theories of
entrepreneurship help us understand
why individuals choose to become
entrepreneurs and how their
behavior differs from other economic
actors. These theories examine the
factors that drive individuals to take
risks, identify opportunities, and
create new ventures. They shed light
on the motivations, decision-making
processes, and characteristics of
entrepreneurs.
2. Economic Growth and Innovation:
Entrepreneurship is recognized as a
key driver of economic growth and
innovation. Economic theories of
entrepreneurship help explain how
entrepreneurial activities, such as the
introduction of new products,
services, or processes, contribute to
productivity improvements, market
expansion, and overall economic
development. These theories
highlight the role of entrepreneurs in
generating new ideas,
commercializing innovations, and
creating jobs.
3. Resource Allocation and Market
Efficiency: Economic theories of
entrepreneurship explore how
entrepreneurs allocate resources and
bring them together to create value.
They examine how entrepreneurs
identify and exploit market
opportunities, allocate capital, and
engage in arbitrage activities. These
theories contribute to our
understanding of market dynamics,
competition, and the efficient
allocation of resources in an
economy.
4. Policy Implications: Economic
theories of entrepreneurship have
important policy implications. They
help policymakers design strategies
and interventions to foster
entrepreneurship, create supportive
environments, and remove barriers
to entry. These theories inform
policies related to access to capital,
regulatory frameworks, education,
and training programs that aim to
promote entrepreneurship and
innovation.
5. International Perspectives: Economic
theories of entrepreneurship also
provide insights into the role of
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entrepreneurship in international
trade and economic development.
They explore how entrepreneurship
contributes to globalization, cross-
border investments, and the diffusion
of innovations. These theories help
us understand the challenges and
opportunities faced by entrepreneurs
in different economic and cultural
contexts.
Classical theories of entrepreneurship
The classical theories of entrepreneurship
refer to the foundational theories proposed
by economists and scholars in the early stages
of studying entrepreneurship. While these
theories may have evolved over time, they
laid the groundwork for understanding the
role of entrepreneurship in economic
development. Here are a few classical theories
of entrepreneurship:
1. Cantillon's Theory of
Entrepreneurship: Richard Cantillon,
an economist from the 18th century,
is often credited with introducing the
concept of entrepreneurship in
economic theory. Cantillon defined
entrepreneurs as individuals who
bear uncertainty and take risks by
allocating resources to different
economic activities to earn profits.
His work emphasized the role of the
entrepreneur in coordinating
resources and driving economic
growth.
Richard Cantillon was an economist and
financier who lived during the 18th century.
He is often referred to as the "father of
entrepreneurship" and is known for his
significant contributions to economic thought.
Although not widely recognized during his
time, Cantillon's ideas have gained
prominence in modern economic theory.
Cantillon introduced the concept of
entrepreneurship into economic theory in his
book "Essai sur la Nature du Commerce en
Général" ("Essay on the Nature of Commerce
in General"). He defined entrepreneurs as
individuals who undertake economic activities
by combining various resources and taking
risks to earn profits. Cantillon emphasized the
role of entrepreneurs as agents who identify
and exploit opportunities in the market.
2. Say's Law and Entrepreneurship:
Jean-Baptiste Say, a French
economist, proposed Say's Law,
which states that supply creates its
own demand. Say believed that
entrepreneurs play a vital role in
economic growth by producing goods
and services, which in turn generate
income and purchasing power for
consumers. According to Say,
entrepreneurship facilitates the flow
of goods and services in the
economy.
Jean-Baptiste Say was a French economist and
businessman who lived during the late 18th
and early 19th centuries. He is best known for
his contributions to classical economics and
his formulation of Say's Law.
Say's Law, also known as the law of markets,
states that "supply creates its own demand."
According to Say, the production of goods and
services generates income for producers,
enabling them to purchase other goods and
services. In other words, the act of producing
creates the purchasing power necessary to
222consume. Say's Law emphasizes the
importance of production and supply in
driving economic activity and rejects the idea
of general overproduction or prolonged
periods of unemployment.
3. Knightian Uncertainty: Frank Knight,
an economist, distinguished between
risk and uncertainty in
entrepreneurship. He argued that risk
refers to situations where
probabilities can be assigned to
potential outcomes, whereas
uncertainty involves situations where
probabilities cannot be estimated.
Knight emphasized the role of
entrepreneurs in dealing with
uncertainty by making decisions
based on judgment and personal
knowledge.
Frank Knight was an American economist who
lived from 1885 to 1972. He is best known for
his contributions to the fields of economics,
particularly in the areas of risk, uncertainty,
and the theory of the firm.
Knight made significant contributions to the
theory of entrepreneurship. He distinguished
between risk and uncertainty, emphasizing
that while risk can be quantified and
measured, uncertainty is characterized by
unknown probabilities and cannot be easily
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quantified. Knight argued that entrepreneurs
are the key actors who bear the burden of
uncertainty and make decisions in the face of
imperfect information.
4. Weber's Theory of Entrepreneurship:
Max Weber, a sociologist, focused on
the sociocultural factors influencing
entrepreneurship. He proposed that
the Protestant work ethic and certain
religious beliefs fostered a spirit of
entrepreneurship in Protestant
societies, particularly in the context
of capitalism and the pursuit of
wealth.
Max Weber was a German sociologist,
philosopher, and political economist who lived
from 1864 to 1920. He is considered one of
the most influential figures in the
development of social sciences. Weber made
significant contributions to various fields,
including sociology, economics, and political
science.
One of Weber's most renowned works is "The
Protestant Ethic and the Spirit of Capitalism."
In this book, he explored the relationship
between Protestant religious beliefs,
particularly those of Calvinism, and the
emergence of modern capitalism. Weber
argued that the Protestant ethic, with its
emphasis on hard work, discipline, and
frugality, played a crucial role in the
development of capitalist economies.
5. Marxian Theory of Entrepreneurship:
Karl Marx, a philosopher and
economist, analyzed
entrepreneurship from a critical
perspective. Marx viewed
entrepreneurship within the
framework of capitalist exploitation,
where entrepreneurs are seen as
capitalists who accumulate wealth by
exploiting labor. His theory
emphasized the class struggle and
the exploitation of workers by
entrepreneurial capitalists.
Karl Marx was a German philosopher,
economist, and political theorist who lived
from 1818 to 1883. He is best known for his
influential works on economics, sociology, and
political philosophy, particularly his theory of
Marxism.
Marx developed the theory of Marxism, which
encompasses a comprehensive analysis of
capitalism, class struggle, and the potential for
a socialist revolution. Marx's writings,
particularly "The Communist Manifesto" and
"Das Kapital," formed the foundation of
Marxist theory and its critique of capitalist
systems.
6. Neo-classical theories of
Entrepreneurship
Neo-classical theories refer to a set of
economic theories that emerged as a
response to classical economics in the late
19th and early 20th centuries. These theories
sought to build upon and refine the classical
economic framework, incorporating new
insights, mathematical rigor, and a focus on
individual behavior and market equilibrium
Neo-classical theories of entrepreneurship
build upon the classical theories and
incorporate more modern economic and
management perspectives. These theories
focus on market forces, individual decision-
making, and the role of human capital in
entrepreneurial activities. Here are a few
prominent neo-classical theories of
entrepreneurship:
1. Risk-bearing Theory: This theory,
proposed by Frank H. Knight,
suggests that entrepreneurs assume
the role of risk-bearers in the
economy. Entrepreneurs are seen as
individuals who take calculated risks
by investing their own resources in
uncertain ventures. According to
Knight, the willingness and ability to
bear uncertainty and manage risks
are key characteristics of
entrepreneurs.
2. Human Capital Theory: Human
capital theory, developed by Gary
Becker, emphasizes the importance
of education, skills, and knowledge as
determinants of entrepreneurial
success. This theory suggests that
individuals with higher levels of
human capital are more likely to
engage in entrepreneurial activities
and achieve superior performance
due to their enhanced abilities and
expertise.
3. Innovation and Technology Diffusion
Theory: This theory focuses on the
role of innovation and technology in
entrepreneurship. It suggests that
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entrepreneurs contribute to
economic growth by introducing new
products, services, processes, or
technologies into the market.
Entrepreneurs act as catalysts for
technological progress and drive the
diffusion of innovation throughout
the economy.

4. Opportunity Recognition and

Evaluation Theory: This theory
emphasizes the cognitive processes
involved in recognizing and
evaluating entrepreneurial
opportunities. Entrepreneurs are
seen as individuals who have a
unique ability to identify and assess
potential opportunities in the
market. This theory explores the
factors influencing opportunity
recognition, such as prior knowledge,
experience, and cognitive biases.

5. Entrepreneurial Ecosystem Theory:

The entrepreneurial ecosystem
theory focuses on the broader
environmental factors that shape
entrepreneurship. It considers the
interplay between various
stakeholders, including
entrepreneurs, investors, and
government, universities, and
support organizations. The theory
suggests that a supportive ecosystem
with access to resources, networks,
and institutions is crucial for fostering
entrepreneurship and enabling its
success.
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