ENTREPRENEURSHIP

ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Land (Natural Resources)

Labor (Human Resources)
Economic development Capital (Financial Resources)
 is a scheme aimed at improving the living 
standards of the nation's citizenry. Entrepreneur
Elements of economic Development 
 human resources Production Process
 natural resources 
 capital formation Finished Goods and Services
 technology
Specific Functions of Entrepreneur to make profit
Entrepreneurship  To supply the necessary capital;
 refers to the economic activity of a person who  To organize production by buying and combining
starts, manages, and assumes the risk of a inputs like materials and labor;
business enterprise.  To decide on the rate of output, in the light of his
Entrepreneur expectation about demand;
 Refers to the person who undertakes entrepre-  To bear the risk inherent to the venture.
neurial activities.
ENTREPRENEURSHIP AND INNOVATION
The entrepreneur identifies an economic need, Innovation
considers offering a business solution, proceeds to  may be defined as the introduction of a new
assemble the resources required, and assumes the risk procedure, custom, device, among others.
of either succeeding or failing.  Innovation could be any of the following:
 a new product;
Entrepreneur’s concerns  a new of production;
1. Identify an economic need  the substitution of a cheaper material in an
2. Assembling resources required unaltered product;
3. Assuming risk  the reorganization of production, internal
Problem at Hand function, or distribution arrange- ment leading
1. High income families are not satisfied with the to increased efficiency, better support for a
services provided by high schools in the area. given product, or lower costs; or
2. Resources must be made available.  an improvement in instruments or methods of
3. Venture must be made. doing innovation. Innovation may also be
Entrepreneur’s action viewed as the last stage in an important
1. Establish a high standard school for high school process consisting of the following:
students  invention - which refers to the discovery
2. Acquire funds, hire people, construct buildings, or devising of new products and
and the like. processes;
3. Prepare project study, advertise, maintain good  development - which refers to the process
relationship with employees and customers, by which the ideas and prin- ciples
among others generated from the stage of invention are
embodied in concrete products and
The Entrepreneur's Task techniques; and
1. products and services for customers and  innovation-which refers to the actual
producers; introduction of a new product or process.
2. employment; Examples of successful innovations are the following:
3. taxes;  The cordless Microphone
4. demand for suppliers' products and services;  The microwave oven;
and  The cellular phone;
5. training facilities for future entrepreneurs.  The kung fu fight scenes developed by Bruce Lee
in the movies;
The Entrepreneur's Task
 The karaoke music appliance;
 The use of Laser in the treatment of eye
conditions; and
 The use of computers by engineers and architects
in the design of buildings.
NEW VENTURES AND LONG-TERM ENTERPRISES
The transition from a new venture to a successful
long-term enterprise consists of at least four major
stages. The stages are as follows:
1) The prestart-up stage
 happens when the entrepreneur starts to
question the feasibility of an idea, product, or
service. This is a very important stage that the
entrepreneur must consider. If he errs in his
evaluation, he will fail before considerable
growth is attained.
2) The start-up stage
 Activities in Start-up stages:
 Formation of the business;
 Generation of necessary capital;
 Purchase of facilities and equipment;
 constructing prototype products;
 Testing the market
3) The early growth stage
 follows after establishing feasibility. Activities
will be on A small scale, i.e., selling to limited
markets with limited resources.
4) The late growth stage
 the final stage before the new venture
matures into a stable enterprise.
 This is when management is structured, long-
term financing is established, and facilities
planning are undertaken.
 This is also the stage where the skills of the
entrepreneur are less needed. Instead, the
skilled manager begins to take over.
3. supply and demand legislation
4. skill of entrepreneur
ENTREPRENEURSHIP AND BUSINESS SIZE
To effectively compete, business of whatever size must
adapt innovative approaches to its activities. Examples
of innovations are the following:
1. Offering business services during Sundays and
holidays;
2. Manufacture and sale of new products; and
3. Selling on a deferred payment scheme.
THE ENTREPRENEURIAL MIND
Entrepreneurial Mind Frame
 Allows the entrepreneur to see things in a
very positive and optimistic light in the midst
of crisis or difficult situations.
 In Chinese writing, the word crisis is
composed of two character which are danger
and opportunity.
 Passion
 Is the great desire to attain a vision or
fulfill a mission.
 It is about wanting something so much
that a person would be willing to totally
devotr oneself to the quest
Entrepreneurial Heart Flame

REWARDS FOR SUCCESSFUL ENTREPRENEURSHIP

Factors of Production
1. Land
2. Capital
3. Labor
4. Entrepreneur
Economic Reward
1. rent
2. interest
3. wages/salary
4. profits
Limiting Factor for Rewards Received
1. supply and demand
2. industry rates/government mandated rates