Lesson 1

Entrepreneurship
Prepared by: Noel Paulino Z. Alparce, MM
 THE ENTREPRENEUREVOLUTION OF
ENTREPRENEURSHIP

The term entrepreneurship originated in Europe sometime

in the Middle Ages. Entrepreneur is of French origin from
the word entreprendre that means “ to undertake”.

Entrepreneurship refers to undertaking a business endeavor

though no specific reference as to whether it meant
undertaking the business for himself or doing it to someone
else.
The emergence of entrepreneur or entrepreneurship at the
height of feudal conflict in France is an indication that the
kinds of activity is “provision of services”.
Topics

01. 02.
Entrepreneurship
Definition of
contemporary
Entrepreneur and
views
Entrepreneurship
with their process
and
approach

03. 04.

Socio- economic Attributes, Qualities and

benefits from characteristics of an
entrepreneurship Entrepreneur.
Claudia Alves
 Entrepreneurship
contemporary views
with their process and
approach

Contemporary Views on Entrepreneurship:

Loyd Shefsky

Book Title: Entrepreneurs are made not Born

Defined entrepreneur by dissecting the word
entrepreneur into three parts such as:

entre means to enter

pre means before; and

neur means nerve center

SHEFSKY’S practicall view on the term entrepreneur leads to a

definition of the word as someone who enters a business, any
business in time to form or change substantially that business nerve
center.
 Lloyd Shefsky is Professor of
Entrepreneurship at Kellogg School of
Management, as well as Co-Director, at
Center for Family Enterprises. In addition
to being a Co-Founder of several
businesses and nonprofits, he has taught
and lectured in a number of countries. His
bestselling books include ‘Invent,
Reinvent, Thrive: the keys to success for
any startup, entrepreneur or family
business’ , and ‘Entrepreneurs Are Made,
Not Born.’ Shefsky joins us in this
exclusive interview on challenges and
success factors for entrepreneurs,
management education, and emerging
research directions.
 Entrepreneurship
contemporary views
with their process and
approach

Contemporary Views on Entrepreneurship:

Karl Vesper
Describes an entrepreneur in a broader perspective by postulating
that entrepreneurship is now a concern of various professions.

E.g:
to an economist
an entrepreneur is one who brings resources, labor , materials and
other assets into combinations that make their value greater than
before, and also one who introduces changes, innovation, and a
new order.

to a psychologist
entrepreneur could refer to such a person as typically driven by
certain forcers: need to obtain or attain something, to experiment,
to accomplish, or perhaps to escape from authority of others.
 Entrepreneurship
contemporary views
with their process and
approach

Contemporary Views on Entrepreneurship:

Karl Vesper

E.g:
to one businessman

an entrepreneur appears as a threat,

an aggressive competitor, whereas
to another businessman, the
entrepreneur may be an ally, a
source of supply, a customer, or
someone good to invest in.
 Karl H. Vesper

born in California 1932

B.S in mechanical engineering

US Air force military service

MBA from Harvard University

PhD, Stanford University

Vesper- “ Entrepreneurs are achievement oriented

individuals driven to accomplishments.”

(Vesper 1998), He argues that both entrepreneurship

research and education would have much to gain
from being more experimental.

He is known for his substantial contribution to the

organizing of the field of entrepreneurship research.
 Entrepreneurship
contemporary views
with their process and
approach

Contemporary Views on Entrepreneurship:

Professor Robert Henry Nelson

Defines entrepreneur as
“ a person who is able to look at the environment, identify opportunities to
improve
the environment
marshal resources and
implement action to maximize those opportunities.”

He further emphasizes that the term entrepreneur is meant to be used in the

broadest sense and would include persons in work situations in
large
medium and
small business enterprises
as well as those in cooperatives and government.
 Professor Robert Henry Nelson

Robert Henry Nelson (1944–2018) was a Senior Fellow

at the Independent Institute, Professor of
Environmental Policy in the School of Public Policy
at the University of Maryland, and Senior Scholar at
the Mercatus Center.
He was an American economist who was professor of
environmental policy in the University of Maryland
School of Public Policy and a senior fellow of the
Independent Institute.

He authored over 100 journal articles and edited

book chapters, as well as nine books. Nelson was a
nationally recognized authority in areas including
the management of public land and zoning in the
United States, but is best known for his books about
the relationship between economics,
environmentalism, and Christianity.
 Entrepreneurship
contemporary views
with their process and
approach

Contemporary Views on Entrepreneurship:

Joseph Alois Schumpeter

Described entrepreneurship as an essential

phenomenon that comes under wider aspect of
leadership.
 Joseph Alois Schumpeter (1883-1950) was an Austrian-
trained economist, economic historian, and author. He is
regarded as one of the 20th century's greatest
intellectuals. Schumpeter is best known for his theories on
business cycles and the development of capitalist
economies, and for introducing the concept of
entrepreneurship. For Schumpeter, the entrepreneur was
the cornerstone of capitalism—the source of innovation,
which is the vital force driving a capitalist economy.
• He is best known for his 1942 book Capitalism, Socialism, and
Democracy, the theory of creative destruction, and for offering the
first German and English references to methodological
individualism in economics.
• Schumpeter served as minister of finance in the Austrian
government, the president of a private bank, and a professor,
before being forced to emigrate, due to the rise of the Nazi Party.

• Schumpeter also introduced the concept of entrepreneurship.

• The economist coined the term "creative destruction" to describe

how the old is being constantly replaced by the new.
 Entrepreneurship
contemporary views
with their process and
approach

Contemporary Views on Entrepreneurship:

Jeffry Timmons

Described entrepreneurship as “the ability to create

and build a mission from practically nothing.”
Jeffry A. Timmons (1941–2008) was an American Professor
of Entrepreneurship, known as a pioneer of both
entrepreneurship research and education.

During his career Timmons published several books and

over a hundred articles and papers. He lectured on the
subjects of entrepreneurship, new ventures,
entrepreneurial finance and venture capital.

In 2004, Timmons was named Entrepreneurship Educator

of the Year by the United States Association for Small
Business Entrepreneurship and is said to be the first to
have used the word “entrepreneurial” in a dissertation
title, in his 1971 dissertation from Harvard Business
School:

“Entrepreneurial and Leadership Development in an Inner

City Ghetto and a Rural Depressed Area”.
 Entrepreneurship
contemporary views
with their process and
approach

Contemporary Views on Entrepreneurship:

Albert Shapero
Defined an entrepreneurial activity as an activity with the objective to
change the system, by increasing the productivity of the system,
decreasing the cost of part of the system, producing accrual of personal
wealth and/or producing an increase of social values.

Entrepreneurship is the process of creating

something different with value by devoting the
necessary time and efforts.

Entrepreneurr takes initiative , organizes some social-

economic mechanisms, and aspects risk of failures.
 Entrepreneurship
contemporary views
with their process and
approach

Contemporary Views on Entrepreneurship:

Dr. Norberto A. Orcullo, Jr.

Defines entrepreneurship as:

1. Entrepreneur-someone who perceives an opportunity and creates an
organizations to pursue it.
2. Entrepreneurial process involves all the functions, activities and
actions associate with perceiving opportunities and creating
organizations to pursue them.
 THE
ENTREPRENEUR
- Someone who coordinates different factors of
production.
• Pure-risk taker
• Has Self-Confident
• Hard working
• Innovative
• Leadership skills - Entrepreneurs are vital in the
economic development of the country.
 SOCIO-ECONOMIC BENEFITS
FROM ENTREPRENEURSHIP

a. Promotes self-help and employment.

b. Mobilizes capital
c. Provides taxes to the economy
d. Empower individuals
e. Enhance national identity and pride
f. Enhance competitive consciousness
g. Improves quality of life
h. Enhances equitable distribution of income/wealth.
 ENTREPRENEURS IN SMALL
AND MEDIUM INDUSTRIES
• - Small and medium scale businesses
are important in the country.
1. They help provide the supply of products to customers.
2. They help provide personal service.
3. Serves as a means of earning to an unemployed individual.
4. small and medium-scale businesses also provide employment to
other people.
5. Their taxes payment to the government allows the government
to provide services to the people.
ATTRIBUTES, QUALITIES, AND
CHARACTERISTICS OF AN
ENTREPRENEUR
 SELF-
AWARENESS
• He knows who he is, what he is
good at, and what he likes to do.
• He starts a business that is based on
his expertise in a specific field, and
focuses on his involvement in an area
he thoroughly enjoys.
SELF-
MOTIVATED
• Also known as drive, self motivation
is one of the most important
personality traits of successful
entrepreneurs.
 COURAGE
Courage, or the willingness to take risks
is a valuable trait when striving for
CONFIDENCE
• The age-old philosophy of positive thinking is a
success.
major step in the direction of success.
• A confident attitude is one of the most
appealing traits he exhibits to prospective clients,
for it lets them know that they will be getting
the best their money can buy.
• Confidence is achieved because of positive
thinking. Thus, entrepreneurs should be positive
thinkers.
 POSITIVE THINKERS

• Entrepreneurs are positive thinkers.

• They think of success and bright sides.
• Dr. Charles Flory, a noted American psychologist,
said that wealth does not always come to the
most intelligent or the most ambitious individuals,
but to those individuals who think money.
 PATIENCE

• When one own business, there will be times when he

feels like the roof is craving in, especially when the
suppliers seem to be taking their own sweet time in
fulfilling an important order or when a customer’s
demands seem to be unrealistic.
• To be successful, business owners need to practice
patience. It's important to not give up during
challenging times and to instead work towards a plan
of emerging even stronger on the other side of the
challenging experience.
 DECISIVENESS
• Business has been described as a process of
making one fast decision after another.
• A decision has to be made immediately, on the
spur of the moment.
• Entrepreneurs must make decisions to succeed.
Without decisiveness, there can be no progress.
Being decisive doesn't mean entrepreneurs don't
have self-doubt. It means they can analyse a
situation and options, and make quick decisions.
 EXPERIENCE
• Experience in entrepreneurship refers to the practical
knowledge and skills gained through involvement in
starting, growing, and managing businesses. It
encompasses firsthand encounters with the challenges,
risks, and complexities of running ventures.
• A primary reason some business fall within a few
years of start-up is lack of business experience.
• One’s experience is directly related to business he is
planning to start, it is a key component for growth.
 KNOWLEDGE
• Entrepreneurship and innovation help individuals become
independent and channel their creativity into creating
something of their own in this competitive world. Studying
entrepreneurship and innovation enhances one's analytical and
logical skills that enables one to solve any problem.
• One has a better chance of succeeding by knowing, as much as
possible, about factors such as:
• business basics,
• the product or service that he want to sell,
• the industry he is entering,
• his competition, and
• the local, regional, state, and/or national markets
 INFORMATION -SEEKING
• An Information-Seeking Entrepreneur is a dynamic force in the
entrepreneurial realm who actively harnesses the power of information to
steer their business toward success. These individuals are not passive
observers. They're driven by an insatiable Curiosity, a hunger to learn and
explore.

• To assure the accomplishment of his entrepreneurial goals, the

entrepreneur continuously seeks relevant information regarding the:
• market,
• clients,
• suppliers,
• competitors,
• consults experts’ advice on business and
• other technical matters
PERSEVERANCE

• As an entrepreneur, perseverance is a fundamental

trait that you need to have to achieve your desired
goals. It is the ability to persist in the face of
challenges, obstacles, and setbacks.
 DRIVE
• Entrepreneurial drive is something of an umbrella
term for the wide variety of characteristics that
compel an individual to pursue a unique and
untested path relentlessly, regardless of the
failures and obstacles.

• The successful business person does not view

obstacles or stumbling blocks as problems, but
rather as challenges.
RISK- TAKING
• Risk-taking says something about the willingness to take
risks. It is about dealing with uncertainty and accepting
that you could lose money, freedom, or reputation. So, if
necessary, you must be able to make your loss on time.
Risk is part of entrepreneurship but is strongly related to
the person who perceives it.
• Entrepreneurs are known for being risk-takers.
• They are not afraid to take risks. Because the risks they
take are “calculated.”
• Entrepreneurs avoid low-risk situations, because there
are no challenges.
• In business, it is profit or loss.
INNOVATIVE
• Innovation in entrepreneurship means the practice of
creating new business ideas and plans with the intention
of generating profits, helping the community, and
accompanying company goals.
• Entrepreneurs are creative.
• They love to explore the unknown, and to blaze new
paths of progress
 OPPORTUNITY -SEEKING
• Entrepreneurs who engage in opportunity-seeking are constantly on the
lookout for gaps in the market, emerging trends, or problems that can be
solved through innovative products or services. This process involves
conducting market research, networking, and staying informed about
industry developments.

• An entrepreneur readily identifies opportunities for going into or to

improve his business.
DEMAND FOR EFFICIENCY
AND QUALITY
• This is the quality that enables an entrepreneur
to do things that meet or surpass existing
standards of excellence or improve on
performance by striving to do things faster,
better and cheaply.

• The entrepreneur always stives to find ways to

do things better, faster, and at a lower cost.
 SYSTEMATIC PLANNING
AND MONITORING
• Systematic means “in an orderly, logical way”.
Planning is deciding what you are going to do.
Monitoring means checking. It is, in fact, what a
business plan is for: to see if something is feasible
prior to trying it.
Thank
You