ENTREPRENEURSHIP

DEFINITION OF TERMS
1. Entrepreneurship is the process of discovering new ways of combining
resources.

2. Entrepreneur is comprehensively defined by Zimmerer & Scarborough (2005)

as someone who “creates a new business in the face of risk and
uncertainty for the purpose of achieving profit and growth by identifying
significant opportunities and assembling the necessary resources to capitalize
on them”

3. Enterprise is a company or business, often a small one. The outcome of the

actor and the act. A project or undertaking, especially one that requires
boldness or effort.

1. The Entrepreneur – The entrepreneur theme is the idea that entrepreneurship

involves individuals with unique personality characteristics and abilities (e.g.,
risk-taking, locus of control, autonomy, perseverance, commitment, vision, and
creativity).

2. Innovation – The innovation theme is characterized as doing something

new as an idea, product, service, market, or technology in a new or established
organization.

3. Organization Creation – The organization creation theme describes the

behaviors involved in creating organizations. This theme described acquiring
and integrating resource attributes

4. Creating Value – This theme articulated the idea that entrepreneurship

creates value.

5. Profit or Nonprofit - While for-profit organizations are responsible for

paying taxes based on their net income, nonprofit organizations are exempt from
paying income tax While nonprofits are not required to pay taxes on net
income, they are responsible for state and property taxes.

6. Growth - Success in business.

7. Uniqueness – This theme suggested that entrepreneurship must involve

uniqueness.

8. The Owner-Manager – Some of the respondents questioned by Gartner (1990)

did not believe that small mom-and-pop types of businesses should be
considered to be entrepreneurial.

4 ASPECTS OF AN ENTREPRENEUR
1. Involves creation process. Capability to think of new ideas that will
bring something useful to the community.

2. Requires devotion of time and effort.

If something is important to you, time and effort will be easy to give in.

3. Involves rewards of being an entrepreneur.

Give something to yourself as an entrepreneur when you achieve something
and it could help you to be more inspired in your next project.

4. Requires assumption of necessary risk.

Business is not always on the top that’s why risk is always present.

10 QUALITIES OF A SUCCESSFUL ENTREPRENEUR

1. Disciplined – are focused on making their business work and eliminate
hindrances or distraction to their goal.

2. Confidence – are confident with the knowledge that they will make
their business succeed.

3. Open-minded – they have the ability to look at everything around

them and focus it toward their goals.

4. Self-starter – knows that if something needs to be done, they should start

it themselves.

5. Competitive – they need to win at the sports they play and need to win at
the business they create.

6. Creativity - often come up with solutions which are the synthesis of other
items.
 7. Determination – they look at defeat as an opportunity for success.

8. Strong people skills – has strong communication skills to sell the

product and motivate employees.

9. Strong work ethic – will often be the first person to arrive at the office and last
person to leave.

10. Passion – they genuinely love their work and are willing to put extra hours
to make the business succeed.

Lesson 2

1.Knight (1921) Having profits from bearing uncertainty and risk.

2.Schumpeter (1934) Carrying out new combinations of firm organization-new

products, new services, new sources of raw materials, new methods of production, new
markets, new forms of organization.

3.Hoselitz (1952) Uncertainty bearing…. coordination of productive resources…

introduction of innovations and provision of capital.

4.Cole (1959) Purposeful activity to initiate and develop a profit-oriented

business.

5.Casson (1982) -Decisions and judgements about the coordination of scarce

resources.

6.Ronstadt (1984) Dynamic process of creating incremental wealth.

7.Drucker (1985) Behavior rather than personality trait. Its foundation lies in
concept and theory rather than intuition.
8.Hisrich and Brush (1985) Process of creating something new with value by
devoting the necessary time and effort; assuming the accompanying financial,
psychic, and social risk and uncertainties; and receiving the resulting rewards of
monetary and personal satisfaction.

9.Kuratko (2009) Dynamic process of vision, change and creation that requires an
application of energy and passion toward the creation and implementation of new
ideas and creative solutions.

10.Dyck and Neubert (2012) Conceiving the opportunity to offer new or

improved goods or services, showing the initiative to pursue that opportunity, making
plans, mobilizing the resources necessary to convert the opportunity into reality.

15 Important Entrepreneurial Traits According to Divina Edralin, 2016

1. Initiative is the entrepreneurship who takes or initiates the first move towards
setting up an enterprise.

2. Looking for opportunity always on the look-out or searching for

opportunity and ready to exploit it in the best interest of the organization.

3. Persistence is never a disheartening failure. He believes in the Japanese proverb

"Fall seven times, stand up eight."

4. Information seeker always keeps his eyes and ear open and is receptive to
new ideas which can help him in realizing his goals.

5. Quality consciousness-set high standards for themselves and then put up

their best for achieving these standards.

6. Commitment to work are prepared to make all sacrifices for honoring the
commitments they have made.

7. Commitment to efficiency is keen to evolve and try new methods aimed at

making work easier, simpler, better and economical.

8. Proper planning they believe in developing relevant and realistic plans and
ensure proper execution of the same in their pursuit of attaining their goals.

9. Problem solver - they will first of all understand the problem and then evolve
appropriate strategy for overcoming the problem.

10. Self-confidence, they have full faith in their knowledge, skills and competence and
not worried about future uncertainties.

11. Assertive - assertive person knows what to say, when to say, how to say,
and whom to say.

12. Persuasive it's not physical but intellectual force he will use for convincing
others.

13. Effective monitoring They ensure regular monitoring of the work so that
the goals of the organization are achieved in the best possible manner.

14. Employee's welfare - he takes personal interest in solving problems,

confronting workers and generates the feeling that there is interdependence of the
interest of workers and management.

15. Effective strategist he has the ability to evolve relevant strategy, aimed at
safeguarding or promoting organizations interest.

Lesson 3
Pros ∙ Entrepreneurs boost economic growth by introducing innovative
technologies, products, and services.

Cons
▪ Only a few people have the drive to become entrepreneurs.

ROLE OF ENTREPRENEURSHIP & ENTREPRENEURS IN ECONOMIC

DEVELOPMENT & SOCIETY

1. Creates employment
when entrepreneurs put up their business, they employ people who possess different
competencies and personal values to help them operate the enterprise.

2. Develops new markets entrepreneurs are opportunity seekers, creative, and

resourceful. They seek new buyers or customers of their product and services.

3. Introduces innovation entrepreneurs innovate, this innovation is done for the

product, service or technology towards commercialization and generates economic
wealth.

4. Generates new sources of materials- entrepreneurs are always inconstant,

search for better and cheaper sources of materials they need.

5. Stimulates investment interest in the new business ventures being

created- when entrepreneurs engage in new business, it stirs curiosity to other
people to invest in the business because of the benefits it offers.

6. Improves the quality of life the new products and services developed by the
entrepreneurs contribute to the increase in personal benefit and convenience of the
people in society.
 7. Serves as role-models- the attitude, behavior and personality traits, like pro-
activeness, opportunity recognition, risk-taking, alertness and creativity are some of
the characteristics that will also make them successful entrepreneurs in their life.

8. Brings social benefit to the people entrepreneurs pay taxes for every product
or service sold in the market. They also pay for the licenses and permits to operate
their business.

9. Utilizes and mobilizes indigenous resources - small and medium

enterprises will always look for cheaper and local materials to supply their needs.

10. Provides more alternatives for consumers, the stiff competition in the
market for quality and cheaper products and services requires the entrepreneurs to
come up with more products and services consumers can choose from.

Lesson 4

Changing face
Information technology has been one of, if not the most important social and
economic drivers of the past half-century.

Tech: While industrial manufacturing has been in slow decline in developed nations,
technological entrepreneurship has moved in to fill the void.

Diversity: The leap in technological faith, combined with social progression, has
opened up entrepreneurship to the masses.

Education: One of the reasons why entrepreneurs can start out younger is the rise
of entrepreneurial education.
Location: Technology also means it’s possible to work from anywhere, at great
speed, and great scale.

Social ethics: An even more recent shift has been the rise of ‘ethical
entrepreneurs'.

CONCEPT OF ENTREPRENEURS TODAY (according to different

field experts)

Economist- “It is someone who brings resources, labor, materials, and other assets
into combinations that make their value greater than before; also, one who introduces
changes, innovations, and a new order.”
Psychologist- a person who is “typically driven by certain forces such as the need
to obtain or attain something, to experiment, to accomplish, or perhaps to escape
the authority of others.”
Management- “someone who identifies opportunities, plans, mobilizes
resources, manages, and assumes the risks of a business to have a positive impact
on society.”

COMMON PROFILE DIMENSIONS

1. Calculated risk taking is doing everything possible to get the odds in their
favor, and they avoid taking unnecessary risks.

2. Commitment is the unwavering dedication to work for the common good of

the society through one business.

3. Feedback-seeking is the taking of steps to know how well they are doing and
how they might improve their performance.

4. Perseverance is the determination to succeed by overcoming obstacles

and setbacks.

5. Drive to achieve is the internal desire to pursue and attain challenging goals.

6. Self-confidence is the belief that together with the other people, things can
be done in the business.
 7. Opportunity orientation is the constant awareness of opportunities that
exist in everyday life.

8. Innovativeness is the ability to come up with something different or unique

every time.

9. Responsibility is their willingness to put themselves in situations where they

are personally responsible for the success or failure of the business operation.

10. Tolerance for failure is using it as a learning experience and realistic

enough to expect such difficulties, so they do not become disappointed.

IDENTIFYING BUSINESS OPPORTUNITIES ENTREPRENEURIAL

OPPORTUNITY
Favorable set of conditions that will enable the entrepreneurs to create new products or
services by combining resources that will result, not only to a profit but for the common
good of the society and the environment:
1) New product (Medicine) or services (delivery of document or product)
2) New ways of organizing like special events or product launching (Online booking)
3) New Raw Materials

4) New Markets (Foreign tourists for alternative medicine like acupuncture)

5) New Production Processes

ENTREPRENEURIAL SOURCE OF STIMULATION

1) EXTERNAL - Customer demands for new products and services.

2) INTERNAL - When an entrepreneur recognizes a problem or

opportunity gap and decides to fill it.

FOUR ESSENTIAL QUALITIES OF OPPORTUNITY

1) ATTRACTIVE – Appealing product.
 2) DURABLE - ability of a physical product to remain functional, without
requiring excessive maintenance or repair, when faced with the challenges of
normal operation over its design lifetime.

3) TIMELY – in demand or occurring at a favorable or useful

time.

4) CREATE OR ADD VALUE for its user or end user.

WHAT IS WINDOW OF OPPORTUNITY

The time when a firm realistically can enter into a market and attempt to establish a
competitive position in the industry.

How do entrepreneurs identify opportunities?

1) Observing trends from actual experience or market research studies.

2) Solving a problem and looking for solutions to solve it. The solution
could be the opportunity to create business.

EXAMPLE:

Problem-When working people complained that they do not have time to wash
their clothes and cook their food.

Solution-Laundry shops and food deliveries became available.

7 POTENTIAL SOURCES OF OPPORTUNITY

1) The Unexpected - Opportunities can be found when situations and events
are unanticipated that might be unexpected success/good news or
unexpected failure/bad news.

Example: COVID 19 and several lockdowns are unexpected but it became an

 opportunity for many people to earn for their survival and at the same time, for
some enterprises to earn more.

2) The Inappropriate - It happens when inconsistencies occur.

Example: Entrepreneurs who are willing to think beyond the traditional approach
may find a potential opportunity.

3) The Process Need - It could be the process of discovery such as a process

of research and development that occurs even before the breakthrough.

Example: The process of making or creating a vaccine for the said virus could be
sponsored by a certain Company and it could be their breakthrough to seize the
chance to finance or invest.

4) Industry and Market Structures - Chances in technology, social value and

customer’s taste can change the structure of an industry and this will give
entrepreneurs opportunities to innovate their product or services.

5) Demographics - It is the statistical characteristics of human populations

(such as age or income) used specially to identify markets.

Changes in demographics will influence industries and markets.

There can be entrepreneurial opportunities in anticipating and meeting the

needs of the population.

Entrepreneurs must have customer’s profiled in relation to their age, gender,

social status, etc.

6) Change - Changes in perception get to the heart of people’s

PSYCHOGRAPHIC profile of what their value, what they believe in and what
they care about.

7) New knowledge - Entrepreneurs who come out with new products and
processes that can compete with other products can manipulate this
kind of knowledge.

Examples of new knowledge: New technologies and new discoveries that can be
sources of information for entrepreneurial innovation.