ENTREP

Development and Growth

1. Laissez Faire Theory by Physiocrats

 French word “leave me alone”
 Free enterprise economy
 No gov’t involve
 Source of funds are natural resources

2. Keynesian Theory by Government

 Public massive work

3. Ricardian Theory by David Ricardo

 Focus on land and Agriculture

4. Harrod-Domar Theory
 Harrod (England); Domar (USA)
 Physical Capital
 Machineries

5. Kaldor Theory by Nicholas Kaldor

 Modern technology

6. Innovation Theory by Joseph Schumpeter

 Innovation (creating new products

7. Non- Economic Theories

 Political stability
 Open society
 Positive cultural values
 Respect; hospitality

Entrepreneurship – the capacity on individual to forecast new business prospect in the form of goods
and services and to deliver them at the right time at the right place and the right people.

Entrepreneur Defined

1. Cantillon - one who take risk and makes innovations on the factors of production.
2. French concept - an adventurer, undertaker, and projector.
3. Schumpeter - innovator.
4. Peter Drucker - always searches for change, responds to it and exploits it as an opportunity.
5. Economist- one who shifts economic resources from an area of lower-productivity to an area of
higher productivity of growth yard.
 6. The American Heritage Dictionary - organizes, operates, and assumes the risk for business
ventures.
7. The pure entrepreneurs - those who launch their own ventures from scratch. They develop
scares resources into successful business by their instinct for opportunity, sense of timing, hard
work, and idea-producing activity.
8. Geoffrey Meredith author of The Practice entrepreneurship- ability to see and evaluate business
opportunity.

Entrepreneurship and Innovation

a. Invention - discovery or devising of new products and processes.

b. Developments - process by which the ideas and principles generated from the stage of
invention are embodied in concrete products and techniques.
c. Innovation - actual introduction of a new product or process.

Types of Innovations

1. Product innovation - new products or services as well as improvements of old product or

services.
2. Process innovation - improvement of processes in the organization
3. Marketing innovation - improvements in the marketing function of promotion, pricing,
distribution, packaging, and advertising

Entrepreneurship vs Intrapreneurship

Entrepreneur - works for himself and develops his own product, bear the risk associated with the
business, and as well as enjoy the entire profits generated from it

Intrapreneur - work within a company in order to introduce innovation, revitalize and diversify its
business.
 Competencies for an Entrepreneurial success

1. Integrity - clear sense of values and beliefs that support the creative and business decisions that
they make.
2. Conceptual thinking - fresh approaches.
3. Risk taking - understand that risk taking means trying something new, and possibly better, in the
sense of stretching beyond what has been done in the past.
4. Networking - networking is a key business activity which can provide access to importation,
expertise, collaboration, and sales.
5. Strategic thinking - understand and values the planning process, thinking and planning over a
significant timescale.
6. Commercial aptitude - keeps up to date with developments in the sector.
7. Decisiveness - resolve issues as they arise.
8. Optimism - persist in pursuing goals despites obstacles and setbacks.
9. Customer sensitivity - build trust and long term relationship with customers.
10. People focus - creates common purpose with colleagues through shared vision and values.