CAGAYAN STATE UNIVERSITY

ENTREPRENEURSHIP
 UNIT 2:
Introduction to Entrepreneurship

INTRODUCTION
According to Winfreda T. Asor, Ph. D., on the book Entrepreneurship in the Philippine
Setting, The survival of our economic condition is not only an issue, but the main
problem of every country all over the world, and the Philippines is not exempted from
this concern. Being aware of this situation, it was also stated that we are tasked to commit
with an endeavor that will contribute to the solution of the economic problem. It is true
that one of the best avenues that we can do so is through education. Unfortunately, not all
professionals who finished their college programs are assured of high-paying jobs, but
through entrepreneurship, one can be assured of a better management of income.
In this unit, we will have a glimpse on the origin of entrepreneurship, as well as its
importance and role in our society today.

LEARNING OUTCOMES
At the end of this unit, you should be able to:

 Define entrepreneurship and identify the important elements in the definition.

 Discuss the role and importance of entrepreneurs to the society
 Identify the different common characteristics of successful entrepreneurs.
 Identify and discuss the top entrepreneurs in the field of technology and their brief stories.
 Discuss the common mistakes of an entrepreneur and make a strategic plan for making better
decisions and actions in business operations and growth.

DEFINITION OF ENTREPRENEURSHIP
Entrepreneurship
 The act of creating a business or businesses while building and scaling it to generate a profit
 Originated in Europe during the middle ages
 Entrepreneur came from the French word “entreprendre” which means undertake
 To come up with the best utilization of available resources and to transform it into an output of
either goods or services, and gain profit
 Entrepreneurship refers to an individual or a small group of partners who strike out on an original
path to create a new business
 According to Howard Stevenson, it is the pursuit of opportunity beyond resources controlled.
Entrepreneurship Vs Business
- Businessmen run their business for the primary purpose of making profits. Entrepreneurs intend
to make profits but with a purpose of making a difference. They want to change the world by
addressing a problem. They are passionate about providing unique solutions for problems in the
community.
- Business is focused on generating profits and optimizing operations, while entrepreneurship is
focused on creating value for customers and pursuing innovation and growth
- Business is only a piece of entrepreneurship (it also needs, creativity, motivation, )
- Business owners can also manage companies that sell products they might not be familiar with, as
it can be more important that customers are satisfied. An entrepreneur establishes their company
intending to sell a completely original product or service that does not yet exist in the market
- While both business and entrepreneurship involve creating and operating a company, they differ
significantly in their purpose, approach, and goals. Business is focused on generating profits and
optimizing operations, while entrepreneurship is focused on creating value for customers and
pursuing innovation and growth

Evolution of the Term Entrepreneurship

Year And Contributor Contribution To Entrepreneurship Thought

Jean Baptiste Say (1800)
Carl Menger (1871)
Joseph Shumpeter (1910)
Harvey Liebenstein (1970)
Israel Kirzner (1975)
Albert Shapiro (1975)
Karl Vesper (1980)
W.Ed Mc Mullan and Wayne A. Long (1990)
Howard Stevenson (1992)
Jeffrey Timmons (1994)
Peter Drucker (1998)
Entrepreneurship refers to the shifting of
economic resources out of an area of lower and
into higher productivity and greater yield
Entrepreneurship involves obtaining information,
calculation and an act of will and supervision
Entrepreneurship is, in its essence, the finding and
promoting new combinations of productive
factors
Entrepreneurship is a reduction of organizational
efficiency
Entrepreneurship is the identification of market
arbitrage opportunities.
Entrepreneurship involves a kind of behavior that
includes initiative taking, organizing and
recognizing social mechanism to turn resources
and situation to practical account, and the
acceptance of risks and failures
Entrepreneurship is the dynamic process of
creating incremental wealth
Entrepreneurship is the building of new growth
organization
Entrepreneurship is the pursuit of opportunity
beyond the resources currently under one’s
control
Entrepreneurship is the ability to create and build
a vision from practically nothing
Entrepreneurship is the process of starting one’s
own, and new small business. It is also the process
of innovation and new venture creation through
 four (4) major dimensions – individual,
organizational, environmental, process – aided by
collaborative networks in government, education
and institution
Robert Hisrisch (2001) Entrepreneurship involves the creation process,
requires the devotion of the necessary time and
effort, assumes the accompanying financial,
psychic and social risks, and receives the resulting
rewards of monetary and personal satisfaction and
independence

9 Most Common Types of Entrepreneurship in the Philippines

1. Small business entrepreneurship
 These are small-scale business ventures. Small businesses are usually independently owned
and operated with limited resources and a focus on serving a specific niche market.
 10-99 employees
 Examples: Retailing business, baking business, coffee shop, milk tea shop
2. Social entrepreneurship
 Focuses on solving social and environmental issues through innovative business solutions. Social
entrepreneurs are driven by a desire to create positive social impact while also generating profit.
 The use of market-based methods to solve social problems
 An entrepreneurial approach to social problems such as homelessness, contaminated drinking
water, damaged physical environments, and extreme poverty
 Compassion encourages social entrepeneurship
 Examples: Bayani Brew, Rags2Riches
3. Technopreneurship
 Involves using technology and innovation to create and grow a business. The process entails
recognizing an issue or a vacancy in the market and devising a remedy by utilizing technology.
Technopreneurs often focus on developing software, apps, or other tech-based products or
services that can be scaled up quickly.
 Examples: Kalibrr, Xurpas
 These businesses have leveraged technology to disrupt traditional industries and create new
markets, demonstrating the potential for technopreneurship in the Philippines.
4. Agripreneurship
 Focuses on agricultural businesses. It involves identifying opportunities in the agriculture sector
and creating innovative solutions to meet the needs of the market.
 If you want to focus on the root of agriculture, your support can give farmers access to business
financing and smart farming technologies
 Examples: Green Earth Heritage Foundation, BukidFresh, Plush and Play
5. Creative Entrepreneurship
 Creative entrepreneurship is a type of entrepreneurship that involves the creation, production, and
distribution of creative and artistic products or services. It encompasses a wide range of
industries, including art, design, music, film, fashion, and more.
 By supporting creative small businesses, consumers can help preserve traditional craftsmanship
and support local artists and designers.
6. Online Entrepreneurship
 Online entrepreneurship, also known as e-entrepreneurship or digital entrepreneurship, refers to
the act of creating, managing, and growing a business venture through online platforms such as
websites, social media, e-commerce platforms, and mobile applications. It involves utilizing
digital tools and technologies to develop and market products or services, connect with
customers, and manage business operations.
 Examples: Shopee, Lazada, Zalora, BeautyMNL, Kumu
 Other examples of online: freelancing, blogging, and affiliate marketing. Freelancing involves
offering services such as writing, graphic design, and programming to clients online, while
blogging and affiliate marketing involve creating content and promoting products or services
through a website or social media platform.
7. Franchise Entrepreneurship
 Franchise entrepreneurship is a type of business ownership where an individual (the franchisee)
operates a business using the branding, products, and systems of an established company (the
franchisor). The franchisee pays an initial fee to the franchisor, as well as ongoing royalties, in
exchange for the right to use the franchisor’s intellectual property and business model.
 Examples: Jollibee, 7-Eleven, The Generics Pharmacy, Ministop
8. Intrapreneurship
 Intrapreneurship is a type of entrepreneurship where employees within a company are encouraged
to think and act like entrepreneurs, taking risks and coming up with innovative ideas to improve
the company’s performance.
 Examples: Jollibee Foods Corporation, Procter & Gamble Philippines , Smart Communications,
Inc.
9. Micro Entrepreneurship
 Micro entrepreneurship is a type of entrepreneurship that involves starting and running a small
business with a minimal amount of capital and resources. It often involves providing basic goods
and services to the local community, and the primary goal is to generate income for the
entrepreneur and their family.
 Less than 10
 Examples: “Balut” industry, “pasalubong” or souvenir industry, Sari-sari stores, carinderias,
street food vendors
Entrepreneur
 A person who sets up a business with the aim to make a profit and creates a new business,
bearing most of the risks and enjoying most of the rewards
 An innovator, a source of new ideas, goods, services, and business/or procedures.
Type of Entrepreneurs
1. As to Economic Development
a. Innovating Entrepreneur – sees the opportunity to introduce new techniques, services, or
products to the market
b. Adoptive or Imitative Entrepreneur – imitates suitable innovations from innovate
entrepreneurs
c. Fabian Entrepreneur – careful and cautious in adopting changes
2. As to Type of Business
a. Business Entrepreneur – Develops a new business opportunity. They conceive ideas for
new products or service. They tap entire factor of production.
b. Trading Entrepreneur – Only concerned with trading activities and not manufacturing
work. They may go for domestic or overseas trade
c. Industrial Entrepreneur – Identifies the needs of customers and creates a product or
service to serve them.
d. Agricultural Entrepreneur – Covers activities from the agricultural sector
3. Other Entrepreneurs
a. First-Generation Entrepreneur – Entrepreneur whose parents or family had not been into
a business
b. Habitual Entrepreneur – Entrepreneur that has prior business ownership experience
c. IT Entrepreneur – Start businesses based on technological innovation, such as developing
new software
d. Entrepreneurs by Inheritance – When individuals inherit the family business
Development of the word ‘Entrepreneur’

Year And Contributor

Earliest Period
Middle Ages
17th Century
Richard Cantillon (1725)
Beaudeau (1797)
Francis Walker (1876)
Frank Knight (1921)
Joseph Schumpeter (1934)
Edith Penrose (1959)
A go-between ex. Traders and merchants
An actor and a person in charge of a large scale
production projects
A person bearing risks of profits (loss) in a fixed
price contract with the government
A person bearing risks is different from the one
supplying the capital
A person bearing risks, planning supervision, and
organizing and owning
An entrepreneur is either one who supplies funds
and receives interest, or one who received profits
from managerial capabilities
An entrepreneur is a manager responsible for
direction and control who bears uncertainty.
An entrepreneur is an innovator who develops
untried technology
A person with managerial capabilities separate

David McClelland (1961)
Peter Drucker (1998)
Albert Shapiro (1975)
Donald Kuratko (1995)
Peter Drucker (1998)
Robert Hisrisch (2001)
Carol Moore
from an entrepreneur’s capabilities and able to
identify opportunities and develop small
enterprise.
An entrepreneur is energetic and a moderate risk
taker
Someone who maximizes opportunities
Takes initiative, organizes some social economic
mechanisms and accepts risk of failure
Organizes, manages and assumes risk of business
One who starts his own new and small business
An innovator whose function is to reform or
revolutionize the pattern of production by
exploiting an invention or more generally an
untried technological possibility for producing a
new commodity or producing an old one in a new
way
Someone who perceives an opportunity and
creates an organization and pursue it.

Entrepreneurship in the world of Information Technology

 What is the role of information technology in business?

o Information technology or the IT department is a crucial part of any company of
business as they monitor and manage almost everything that is to do with information
technology and communication systems.
o The IT department is at the epicenter of the building and maintenance of communications
networks for businesses small and large. Not many companies, big or small, could
survive without a good IT department making them imperative to a business’s day to day
existence. From sending an email, to changing a password, accessing databases and
everything in between IT are there to help every step of the way. IT in business is
ultimately to help the business be more efficient and productive. It has a number of
different roles including but not limited to:
o Helping the company be more productive, time = money.
o Optimizing business performance – through business process management
o Safeguarding data and troubleshooting
o Saving the business money
o Improving customer experience, satisfaction and communication – easier to access
(online shops, online collaborations, online surveys)
o Streamlining communication systems
o Enhancing managerial decision-making
o Helping the business expand globally
o Providing staff access to company information

How is IT used in Entrepreneurship?

 Communication
o Good communication is necessary to allow efficient flow of information in a business.
Technology provides multiple channels for businesses to communicate both internally
 and externally. Whether it’s setting up virtual workspaces where employees can interact
and develop ideas, or connecting to international businesses through the use of video
conferencing, technology can be used as an outlet which allows businesses to collect
feedback from their customers, which can used to improve or alter a product to suit the
needs of the customers better.
 Research and Development
o Through the use of technology, businesses can research the market through the use of
secondary data. This is extremely useful as it provides businesses with in-depth
knowledge about markets before penetrating them. Along with secondary research,
businesses can use technology to conduct primary research in addition to using online
surveys and customer feedback.
o Very easy to research today
 Web Based Advertising
o One the most beneficial use of technology is advertising to millions of people around the
globe just at a click of a button. Web based advertising consists of websites and social
media. Websites can be built using DIY tools such as WordPress or SquareSpace or
professional web developers can be hired to create them. Unlike websites, social media
accounts are very easy to build for your business and provide exposure on a wide variety
of platforms such as Facebook, Twitter and YouTube.
 Safeguarding data and information
o The ultimate goal of safeguarding is to protect data from compromise. The IT department
will ensure data Safeguarding, meaning industry-standard safeguards are in place,
company-wide to protect against the destruction, loss, misuse, unauthorized disclosure, or
alteration of the company-related data or employee confidential information. IT also has
to ensure they are abiding by data-protection laws through safeguarding important
information from corruption, compromise or loss.
o Examples of data breaches could be hackers stealing information or misused/shared
personal data in regards to the company of the employees.
 Troubleshooting of problems
o Troubleshooting refers to problem-solving in the digital world. Troubleshooting can be
applied to a number of different things such as the repairing of failed digital products or
processes on a PC or a system. When a problem is troubleshot, a systematic and logical
search is carried out for the source of a problem with the aim to solve it and make the
product or process fully operational again. Troubleshooting is also used to identify the
symptoms when something is wrong.
o A competent IT department in any business is the first port of call when it comes to an
issue or problem with a computer. If an employee has locked themselves out of their
computer, forgotten a password or cannot get access to a particular drive, for example, IT
is usually a quick call away from getting this issue fixed.
 Security and the maintenance of databases
o The IT department is responsible for the efficiency and security procedures of the
business are up to standard. Hornetsecurity.com defines IT security as
o Intending to prevent the manipulation of data and systems by unauthorized third parties.
The meaning behind this is those socio-technical systems, i.e. people and technology,
within companies/organizations and their data are protected against damage and threats’.
 o IT is also there for the creation, maintenance and administration of databases for things
such as businesses sales transactions, financial records, product catalogues, trends,
customer profiles and marketing activities to name but a few.
 The management of cloud-based solutions
o So what is a cloud-based solution? It is an on-demand service for almost anything and
everything you can ‘save’ such as computer network information, storage, applications or
resources accessed via the internet and through an external provider’s shared cloud
( servers that are accessed over the Internet,) computing infrastructure. Businesses large
and small, right from the local candle shop to industry giants such as Microsoft and
Google use cloud-based solutions to keep control of their digital or physical offices and
employees globally.
 Analyze data
o Information technology is able to analyze specific data and help to plan the business
journey accordingly using the trends and information presented in data. IT can also
efficiently equip businesses with plentiful tools which can solve challenging business
obstacles and help to plan the future growth of the company. In this day and age, digital
marketing is something that businesses simply can’t live without as we have moved to
the online world and users have access to the net 24/7 from their smartphone devices. The
internet provides a digital marketing platform that allows businesses to promote their
products or services to the global market, all who can see products sitting in the comfort
of their own remote office or home.
 Quick and effective communication
o The beauty of being in the 21st century for business is the ease of communication. We
live in an era where you can usually contact a business in an instant. The success of a
company largely depends on understanding its customer’s needs, behaviours, buying
trends, behaviours and satisfaction scales. Efficient and quick communication is the best
mechanism when it comes to dealing with customer demands, problems and solutions.
The beauty of information technology is that it allows businesses to communicate with
potentially millions of customers in real-time on a global scale. IT provides countless
ways to communicate with customers without them even having to leave the house. Such
channels include emails, social media chats video calls, webinars, member forums, email
newsletters or through the smartphone
 IT experts can also be entrepreneurs
THE IMPORTANCE OF ENTREPRENEURSHIP
Importance of Entrepreneurship in Economic Development
1. Promotes capital formation
 mobilizes idle savings
2. Creates large-scale employment opportunities
 as more businesses are created, more job opportunities are created
3. Wealth creation and distribution
4. Improvement in the Standard of Living
 new innovations cause people to avail better quality goods at lower prices, or at a shorter
distance
5. Promotes Country’s Export Trade
6. Personal Growth
 7. Provides taxes to economy
8. Entrepreneurship improves productivity
9. Creates innovation and social change

Importance of Learning about Entrepreneurship

1. Develops key entrepreneurial skills
 Key entrepreneurial skills such as leadership, innovation, and decision making can be
improved
2. Provides business networking opportunities
 You can establish connections with other people who have the same entrepreneurial
interests as you (in activities later on you can find future partners)
3. Fosters creativity and innovation
 To succeed as an entrepreneur, you must devise creative approaches to business issues
and provide goods or services that stand out in a crowded market, such as: Idea
generation; Developing a unique value proposition; Creating a business plan;
Implementing creative marketing strategies;
4. Offers Opportunities for Personal Growth
 You will be able to calculate risks while learning about entrepreneurship. You will grow
to improve your self-confidence, self-awareness and capacity to concentrate.
5. Creation of Job Opportunities in the Country
 As more people attain knowledge about entrepreneurship, more ventures will help create
more job opportunities.

ROLE OF ENTREPRENEUR TO THE SOCIETY

Characteristics of an Entrepreneur
1. Determination and Perseverance
2. Drive to Achieve
3. Opportunity Orientation
4. Persistent Problem Solving
5. Seeking Feedback
6. Internal Locus of Control
7. Tolerance for Uncertainty
8. Calculated Risk Taking
9. Tolerance for Failure
10. Creativity and Innovativeness

Role of Entrepreneurs to the Society

1. Meeting people’s needs and wants
2. Utilizing resources to best use
3. Creating jobs for people
 4. Increasing Prosperity
5. Expanding tax collections
6. Promoting Innovation

SUCCESSFUL ENTREPRENEURS IN THE FIELD OF TECHNOLOGY

JEFF BEZOS
- The man behind the success of Amazon
- He is the genius who presides over the e-commerce giant
- He quit his job as a Vice President at a Wall Street firm and founded Amazon
to make it easy for people to buy bEooks online. Despite the initial skepticism
of many investors, Bezos's vision and determination helped him to raise the
necessary funds and turn Amazon into a successful company.
- Mr. Bezos's story is a great example of how an entrepreneur can identify
market opportunities and create innovative products and services to meet those
needs. His focus on customer satisfaction, ability to think long-term and
background in computer science helped him to build and grow Amazon into a
multi-billion dollar company.
- He graduated from Princeton University with a bachelor's degree in computer
science and electrical engineering.

ELON MUSK
- He co-founded the most popular online payment network, PayPal, and selling
it to eBay for around $1.5 Billion.
- He also invested his entire share of $70 Million into Tesla and $80 Million
into SpaceX.
- They also heralded him as the ‘Real-Life Iron Man’, thanks to his antics and
innovations.
- He has a bachelor's degrees in physics and economics

MARK ZUCKERBERG
- American computer programmer and entrepreneur.
- The co-founder of Facebook, transformed the way people interact and
communicate online. His ability to create a platform that connects people from
all over the world has made Facebook one of the most successful tech
companies in history.
- Zuckerberg's dedication to innovation and entrepreneurship has allowed him to
launch successful new businesses and secure funding for his ventures
- Facebook quickly became popular as registered users could create profiles,
upload photos and other media, and keep in touch with friends. It differed
from other social networking sites, however, in its emphasis on real names
 (and e-mail addresses), or “trusted connections.” It also laid particular
emphasis on networking, with information disseminated not only to each
individual’s network of friends but also to friends of friends—what
Zuckerberg called the “social graph.”

STEVE JOBS
- Co-founded Apple & built it into the world’s most valuable company. He also
helped transform other industries: personal computing, animated movies,
music, phones, tablet computing, retail stores, and digital publishing. Touted
as a great innovator, he applied imagination to technology and business.