HTM106: ENTREPRENEURSHIP
What is Entrepreneurship?
- is the act of creating a business or
business while building and scaling it
to generate a profit
- process of creating something new
- process of identifying and creating
new business opportunities, often
involving the development and launch
of innovative products, services, or
solutions
For Walt Disney:
“…to do things and make things
which will give pleasure to people in
new and amazing ways… it is magic!”
“Entrepreneurship is the purposeful
activity of an individual or a group of
associated individuals, undertaken to
initiate, maintain or aggrandize profit
by production or distribution of
economic goods and services”
- A. H. Cole
“Entrepreneurship is based on
purposeful and systematic innovation.
It included not only the independent
businessman but also company
directors and managers who actually
carry out innovative functions.”
- Joseph A. Schumpeter
“Entrepreneurship is the process by
which individuals pursue opportunities
without regard to resources they
currently control.”
- Stevenson & Jarillo
“Entrepreneurship is the art of turning
an idea into a business.”
- Fred Wilson
Who is an Entrepreneur?
- who takes initiative, identifies
opportunities, and organizes resources
to create and operate a business
venture with the aim of achieving
financial success and making a
positive impact on the market or
society.
- known for their ability to innovate,
take calculated risks, and turn ideas
into reality.
 Who sets up a business with the
aim to make a profit.
 A risk bearer, organizer, and
innovator.
 Creative
 Is a person who operates a
business
 Is a person who starts something
new
AN ENTREPRENEUR MAY BE A:
 Male/Female
 Young /Old
 Professional/College graduate or
School Drop out
 An owner-manager and willing to
take risks
 Someone not willing to work for
others, instead he wants others to
work for him
“Entrepreneurs are people who have
the abilities to see and evaluate
business opportunities, together with
the necessary resources to take
advantage of them, and to ensure
appropriate action to ensure success.”
- International Labor Organization
EMPLOYEE VS
ENTREPRENEUR
1. Role and Responsibilities:
Employees work for a company or
organization, performing specific
tasks or roles as defined by their job
description. They are responsible for
executing assigned duties and
contributing to the overall goals of the
company.
Entrepreneurs create and manage
their own businesses.
2. Income and Financial Risk:
Employees They generally have more
stability in terms of income but
limited potential for significant
financial gains.
Entrepreneurs have the potential to
earn higher rewards through the
success of their business, but they also
face higher financial risks. Their
income is often variable and can be
uncertain.
3. Decision-Making Authority:
Employees typically follow the
decisions and directions set by their
managers or superiors.
Entrepreneurs make key decisions
for their businesses, ranging from
product development and pricing to
marketing strategies and financial
planning.
4. Work Hours and Flexibility:
Employees usually have set working
hours as determined by their
employment contracts. Their
flexibility is limited to the policies of
the company.
Entrepreneurs often work long and
irregular hours. However, they have
more control over their schedules and
the flexibility to adapt to changing
circumstances.
5. Job Security:
Employees have a degree of job
security, as long as they meet their job
performance expectations and the
company remains in business.
Entrepreneurs face a higher level of
uncertainty and risk regarding the
survival and success of their
businesses.
6. Benefits and Perks:
Employees may receive benefits such
as health insurance, retirement plans,
paid leave, and other perks provided
by their employers.
Entrepreneurs are responsible for
arranging their own benefits and
perks, which may vary depending on
the financial health of their business.
7. Skill Sets:
Employees generally specialize in a
specific area or skill set related to their
job function.
Entrepreneurs require a broader
range of skills.
8. Motivation and Goals:
Employees often seek job stability,
career advancement, and a work-life
balance.
Entrepreneurs are driven by the
desire to create and grow their own
businesses, achieve financial success,
and potentially leave a lasting impact
on their industry or society.
growth and sustainability of the
industry as a whole
Role of Entrepreneurs in the
Economy
• one of the most important input in
the economic development of a
country.
• acts as a trigger head to give spark
to economic activities by his
entrepreneurial decisions.
• plays a pivotal role not only in the
development of industrial sector
of a country but also in the
development of farm and service
sector.
• has made the people of
underdeveloped countries too
much conscious of the
significance of entrepreneurship
for economic development

Entrepreneurs are vital in the

economic development of the
country. They provide employment
4 BASIC ASPECTS OF BEING AN and income that moves the economy
ENTREPRENEUR? forward.

1. Creation of something of value

2. Devotion of necessary time and
effort
3. Assumption of necessary risks
4. Getting Rewards

Why do we need to study

entrepreneurship?

- can prepare individuals for success

The Cycle also shows that
in this dynamic and competitive
Entrepreneurs are:
industry
1. MOBILIZERS OF CAPITAL
- create new opportunities, drive
2. SERVICE PROVIDERS
innovation, and contribute to the
3. EMPLOYERS
4. TAX PAYERS
5. SUPPLIERS OF PRODUCTS
Sources of Growth
1. Initially, the natural resource base
determined growth and development
2. Capital and technology become the
major source of growth
3. Now human resources have come to
the fore as major determinants of
economic growth
What Causes Economic Growth?
• Economic growth is an effect;
entrepreneur is the cause.
• Entrepreneurs explore
opportunities, convert ideas into
viable business proposition and
provide new products and
services to the society by bringing
together and combining various
factors of production.
• They change life style of the
people.
MINDSET OF
ENTREPRENEURSHIP
Entrepreneurship is prehistoric and
can be traced to the early existence of
mankind from the classical era;
the first known trading between
humans took place in New Guinea
around 17,000 BCE, where locals
would exchange obsidian (a volcanic
glass prized for its use in hunting
tools) for other needed goods like
equipments, skins, and food (Johnson
Hur, 1992)
earliest humans were self-sufficient
middle ages, which lasted for nearly a
millennium, historians often grouped
the era into three distinct periods: the
Early Middle Ages, the High Middle
Ages and the Late Middle Ages
In the Middle Ages, Europeans
traveled around the globe to barter
crafts and furs for silks and perfumes.
Colonial Americans exchanged
musket balls, deerskins, and wheat. In
Africa, farmers barter their farm
produce, for salts, mirror, and sugar.
Contemporary views on
entrepreneurship
Lloys Shefsky, in his book entitled,
Entrepreneurship are Made Not Born,
defined entrepreneur by dissecting the
word entrepreneur into three parts:
• entre means to enter
• pre means before; and
• neur means nerve center
FILIPINO VALUES
“In the typical Filipino environment,
entrepreneurship is not so much
encouraged at an early age.”
Filipinos have excellent human
relations
• Pakikipag kapwa-tao
• Pakikibagay
• Pagmamalasakit
• Pakikisama
• Bayanihan
Filipinos uphold the value of self –
esteem and good public image.
• Amor – propio (love yourself)
• Delicadeza (kahihiyan)
• Mapahiya
Filipinos by nature are courageous
• Bahala na
• “ang makipagsapalaran sa
Maynila”
Filipinos are noted for their ability
to withstand crisis.
 Have natural strength of character
and a strong sense of faith in God.
Moral weakness of the Filipinos:
• Extreme personalism
• Extreme family -centeredness
• Lack of discipline
• Passivity and lack of initiative
• Colonial mentality
• Kanya kanya syndrome
• Lack of self-analysis and self-
reflection
Why Mindset Matters?
• A mindset refers to whether you
believe qualities such as intelligence
and talent are fixed or changeable
traits
• Experience and knowledge only go
so far without confidence
CRITICAL THINKING
• Should a budding entrepreneur
accumulate experience working
for others before starting an
entrepreneurial venture? Why or
why not?
What is Mindset?
“The established attitudes held by
someone” (McKean, 2005).
Fixed Mindset Views
• Talents are traits.
• Brains plus talent equals success.
• Constructive criticism is a
personal attack.
• Others’ success is due to luck.
• Avoid challenges
Growth Mindset
• Believe abilities can be developed
through hard work
• Brains and talent are only the
beginning of success
• Lifelong learners
• View failure as an opportunity to
improve
Critical Thinking
• Consider a highly successful person.
Which aspects of his or her success
are due to luck and which come from
dedication?
Entrepreneurial Mindset
The ability to quickly sense, take
action, and get organized under
uncertain conditions. Includes the
ability to persevere, accept and learn
from failure, and get comfortable with
a certain level of discomfort.
Passion • Making aspects of a task more
enjoyable by building in features
• Intense positive emotion to focus on the most positive
• Motivates to overcome obstacles aspects of the tasks.
• Stimulates focus on goals • Examples: Walking, music,
• Enhances creativity coffee, or stretching breaks
Entrepreneurship as a Habit CONSTRUCTIVE THOUGHT
• Develop a mindset through PATTERN STRATEGIES
creating a habit • Forming productive ways of
• Practice until it is carried out thinking that can benefit our
unconsciously and continually performance.
• Entrepreneurs are more likely to
continue when rewarded The Creativity Habit

The Self-Leadership Habit • Developing Creativity

• Individuals must influence and Creativity: The capacity to produce

control their own behavior, actions, new ideas, insights, inventions,
and thinking to achieve the self- products or artistic objects, which are
direction and self-motivation considered to be unique, useful, and of
necessary to build their value to others.
entrepreneurial business ventures.
Roadblocks to Creativity
Three Strategies for Self-Leadership
• Fear
1. Behavior-focused strategies • No appetite for chaos
2. Natural reward strategies • Preference for judging over
3. Constructive thought pattern generating ideas
strategies • Dislike for incubating ideas
• Perceived lack of challenge
• Inability to distinguish reality
BEHAVIOR-FOCUSED from fantasy.
STRATEGIES A Creative Mind
• Self-awareness • Requires both “left-brain” and
• Self-observation “right-brain” thinking.
• Self-goal setting • Both sides of Csikszentmihalyi’s
• Self-reward “Polarity of Creative Individuals”
• Self-punishment model
• Self-cueing
Improvisation Guidelines
NATURAL REWARD
STRATEGIES • Not just for actors or musicians
• No such thing as being wrong.
• No questioning or rejecting
suggestions.
• Ideas are taken on board,
expanded, and passed on for
further input.
• Everything is important.
• It is a group activity.
• Trust that the group will solve
problem.
• Listen closely and accept what
you are given.
• Be spontaneous and imaginative.

Improvisation

• The “Yes, and” principle

• Anyone can improvise.

The Mindset as the Pathway to Action

Self-Efficacy and Entrepreneurial

Intentions

• Entrepreneurial Self-Efficacy
(ESE): belief in own ability to
begin new ventures.
• ESE can be measured.
• Self-efficacy can change over
time.

The Role of Mindset in Opportunity

Recognition

• As we adopt a more growth-

oriented mindset, we are more
inclined to recognize and create
opportunities.