The Practice of Entrepreneurship

Entrepreneurship
- is a life skill that readies a person to manage the vague and undefined future
particularly in the business environment.

Entrepreneurship Views
Two ways of thinking about entrepreneurship:
1. Predictive Approach - the older view, considers entrepreneurship as a linear process
where there are steps to do and the results are usually predictable.
2. Creation Approach - the recent view which sees entrepreneurship as a mindset and a
method that needs practice used only when the future is unpredictable and not
certain.

The start of Entrepreneurship in the Philippines

- The 1387 Philippine Constitution identifies entrepreneurship as an instrument of
economic growth.
- Article XII Section 1 states the role of private enterprises in supporting fair distribution
of income and wealth, satisfying production of goods and services.
- Philippine Development Plan (PDP) supervises on strengthening the thrust on
entrepreneurship by way of investing and trade.
- Philippine Chamber of Commerce and Industry formed Philippine Center of
Entrepreneurship (PCE).
- PCE created the “Go Negosyo Communities”. All “Go Negosyo Communities” have
their abilities to continuously create start up ventures.
- Entrepreneurship has become a way of motivating innovative individuals to pursue
opportunities regardless of its risk.

The Skills Important in Entrepreneurship

1. Skill of Play - allows his imagination to explore, exposes his mind to a treasure of
opportunities and potentials and is very imaginative.
2. Skill of Experimentation - calls for entrepreneurs to act so as to learn.
3. Skill of Empathy - being sympathetic with the feeling, situation, purposes, opinions,
and wants of other people
4. Skill of Creativity - being open-minded and letting loose one's ability to create,
discover opportunities, and resolve problems.
5. Skill of Reflection - the discomfort handled, the feelings felt and knowledge
possessed gives new perspectives and allows for more assessment of the results
and forming of conclusions.

The Truths about Entrepreneurship

1. Entrepreneurship is not solely for startups.
2. Entrepreneurs do not have exceptional personality qualities.
3. Entrepreneurship can be taught yet entails practice.
4. Entrepreneurs are not so much risk-takers.
5. Entrepreneurs work in partnership more than they compete.
 6. Entrepreneurs are more on doing than planning.
7. Entrepreneurship is truly a life skill.

Types of Entrepreneurship
1. Intrapreneurship - encouraging people to discover high-risk, high-reward concepts
with the support of a big corporate organization.
2. Entrepreneurs Inside - entrepreneurs function inside any type of organizations such
as government agencies, non-profit organizations, religious entities, self-employed,
and even cooperatives.
3. Buying a Franchise - a franchise is a type of license bought by an entrepreneur as
the franchisee from an existing branded business (franchisor) so that they may do
business under the name of said brand.
4. Buying a Small Business - the new owner may be able to acquire valuable patents or
copyrights, or have the opportunity to drive an unprotective business in an exciting
direction with his expertise.
5. Social Entrepreneurship - pursuing innovative applications that have the likelihood of
solving community-based problems.
6. Family Business - is owned and managed by members of the family that is usually
handed down from generation to generation.
7. Serial Entrepreneurs - is an entrepreneur who constantly crops up with fresh ideas
and starts new businesses.

Entrepreneurship as a Method
- The entrepreneurial method mainly consists of five effectual principles.
- Effectuation - is the idea in entrepreneurship that the future is unpredictable yet
controllable.
5 Principles behind Effectuation
1. Bird in Hand - creating solutions using the resources available at the disposal
of entrepreneurs instead of having goals in mind.
2. Affordable Loss - in order to limit the disadvantage risk, an entrepreneur
should define his affordable loss. This means investing much that an
entrepreneur is willing and can afford to lose.
3. Crazy Quilt - is about entering into new partnerships that can bring in new
opportunities and reduces uncertainty.
4. Lemonade - with this mindset, entrepreneurs see opportunities arising in the
midst of unforeseen consequences.
5. Pilot in the Plane - entrepreneurs in this principle believe that the future is
really something that needs to be controlled and not try to predict.

Components of the Entrepreneurial Method

- Identify desired impact
- Begins with means at hand
- Describe the idea today
- Estimate affordable loss
- Reflect and be honest
- Take small action
- Network and enjoin others in the journey
- Build and learn from what has been learned
Managerial and Entrepreneurial Thinking

Managerial Thinking Entrepreneurial Thinking

● Manage and mitigate risk ● Evaluate and embrace risk

● Safeguard invention and insights ● Exchange ideas and share learnings

● Avoid falling ● Fail fast and try again

● Work within the confines of the current ● Think in terms of possibilities

environment

● Increase the bottom line ● Create value and make a difference

Entrepreneurship requires deliberate practice

- Entrepreneurship method is both a mindset and a practice.
- Practice is usually linked with repetition and of course experience.
- Performance cannot be improved by plainly having experience nor success could be
attributed to genes.