Entrepreneurship and

Economic Development
 Entrepreneurship is a very important component of a capitalist
economy like the Philippines. It thrives in economic systems that
support innovation and hard work. When entrepreneurs become
sucessful, the nation is immensely benefited.
Economic Development is a scheme aimed at improving
the living standards of the nation's citizenry. To achieve
economic development goals, proper management of
the following elements necessary:
1. Human resources (labor supply, education,
discipline, motivation);
2. natural resources (land, minerals, fuel, climate);
3. capital formation (machines, factories, roads); and
4. technology (science, engineering, management,
entrepreneurship).
 The entrepreneur identifies an
economic need, considers offering a business
solution, proceeds to assemble the resources
required and assumes the risk of either succeeding
or failing.
Entrepreneurship refers to the economic activity of a
What is person who starts, manages, and assumes the risk of a
Entrepreneurship business enterprise. The person who undertakes
entrepreneurial activities is called an entrepreneur.
 An example of Entrepreneurship Activity
Entrepreneur's Problem at Hand
1. High income families
Concern
1. Identifying an are not satisfied with
economic need the services provided
2. Assembling resources by high schools in their
required area.
3. Assuming risk 2. Resources must be
made available
3. Venture must be made.
Entrepreneur's Action
1. Establish a high school education
with higher standards than the
current high schools are
providing.
2. Acquire funds, hire people,
construct buildings, and the like
3. Prepare project study, advertise,
maintain good relationship with
employees ad customers, among
others.
 The Entrepreneur's Task
If all the requirements in a capitalist economy are in place, the
entrepreneur can assume his assigned role in the development of the
economy.
A review of the contributions of the entrepreneurs will reveal that no business, big or small,
started without a sizable number developed and proceeded to make the capitalist economy a
viable concern.

1. products and services for customers and producers- array of products in a grocery store
(toothpaste/soap) - services (beck & call- Grab/Lazada/Credit Card-Money remittance/ Netflix
2. employment- entrepreneurs employ millions of people
3. taxes - licenses, fees, permits, income and business taxes- poured into development projects
of the government
4. demand for suppliers' products and services- SMC/Purefoods/ Big cement factories
5. training facilities for future entrepreneurs- employees used their acquired skills in
starting new business
 In an attempt to make profits, the entrepreneur performs the
following specific functions:
1. to supply the necessary capital;
2. to organize production by buying and combining inputs like
materials and labor
3. to decide on the rate of output, in the light of his
expectation about demand; and
4. to bear the risk inherent to the venture

The Entrepreneur's Task

 Entrepreneurship and Innovation
Freedom of Entrepreneur's Action
Competition INNOVATION 1. Establish a high school education
It serves to drive the Introduction of a new with higher standards than the
entrepreneur to method, procedure, current high schools are
INNOVATE and GET custom, device, among providing.
AHEAD OF COMPETITORS. others - new product, 2. Acquire funds, hire people,
construct buildings, and the like
new process of
INNOVATION production, substitution 3. Prepare project study, advertise,
MUST BE maintain good relationship with
of a cheaper material in
SUCCESSFUL employees ad customers, among
an unaltered product others.
 Innovation must provide value to buyers over and above
IINNOVATION ... those offered by the competitors
New Product Netflix/ Hubspot/ Dropbox
New Process of Production Digitalization of the equipments or machineries in production
Substitution of a cheaper material in an unaltered product
Reorganization of production, internal function or distribution arrangement leading
to increased efficiency, better support for a given product, or lower costs
Improvement in instruments or methods of doing innovation. Innovation may also
be viewed as the last stage in an important process consisting of the following:
a. Invention - which refers to the discovery or devising of new products and processes
b. Development- which refers to the process by which the ideas and principles
generated from the stage of invention are embodied in concrete products and
techniques
c. Innovation - which refers to the actual introduction of a new product or
process.

Entrepreneurship & Innovation

 Innovation must provide value to buyers over and above
IINNOVATION ... those offered by the competitors

Successful Innovations...
Cordless microphone
Microwave
Cellular Phone
Laser in the treatment of eye conditions
Use of computers/application system by engineers / architects in the
design of buildings , etc.

Entrepreneurship & Innovation

 New Ventures and Long Term Enterprises
Pre-start up Stage EARLY GROWTH STAGE
Start-Up Stage This is where selling to limited
when the entrepreneur Formation of the markets with limited resources
starts to question the business begins;
feasibility of an idea, Generation of If losses occur, it naturally be limited
product or service. He necessary capital also. If the enterprise is successful at
seeks answers to this stage, the option to move to the
Purchase of facilities
questions regarding next stage can be exercised.
and equipment
potentioal markets,
constructing
productio, and financing
prototype products
Testing the market
 New Ventures and Long Term Enterprises
Last Growth Stage

This is the final stage before the new venture matures into a stable
enterprise. This is the stage where the skills of the entrepreneur are
less needed. The skilled manager begins to take over.
IINNOVATION ...

In the creation of a new venture, the entrepreneur may be successful in

offering innovative products or services. At this stage, he will reap the profits
for being ahead of the competitors.
This situation may be temporary because the competitor may attempt to
improve his position by making moves to outpace the entrepreneur in the
race.
The competitior may either imitate or offer better innovation. If the
competitor is successful, the profits of the entrepreneur will decline .
To be ahead again, the entrepreneur will consider offering newer and better
innovations

The Entrepreneur’s Predicament

THANK
YOU!