Entrepreneurial Capital

Lecture 2
HUMAN CAPITAL &
CULTURAL CAPITAL

Name of Faculty Member

 Entrepreneurial Capital
Lecture 2

Human Capital & Cultural Capital

1. What is Human Capital?
2. Personality factors in Human Capital
3. Experience & Education factors in HC
4. What is Cultural Capital?
5. Group Presentation (Readings Article)
6. Next Week Assignment
 What is Human Capital?

Human Capital is skills and

knowledge that individuals
acquire through investment in
education, on the job training,
other types of experience and
individuals personality required in
entrepreneurial context.

It is a compendium of all traits and abilities that make

human beings economically productive in a society
(Shanahan and Tuma, 1994:746)
 What is Human Capital?

Human Capital refers to the skill and knowledge of

human beings. It is the stock of competencies,
knowledge, social and personality attributes,
including creativity, embodied in the ability to
perform labor so as to produce economic value.
(Michael Parkin, 2012)

https://www.youtube.com/watch?v=y1sueM_jhSk
https://www.youtube.com/watch?v=XahgbNIMklA
FACTORS OF HUMAN CAPITAL DEVELOPMENT

Education
On the Job Training
Manpower Planning
Health and Nutrition

TYPES OF HUMAN CAPITAL

Biological capital POSITIVE SUM CAPITAL

Knowledge capital (add to worlds economy)

Track record capital ZERO SUM CAPITAL

Social capital (wealth for oneself)
 Human Capital:
Experience & Education

 Learn other entrepreneur business

experience: local and international
 What have you learn from your own business
experience?
 Do systematic way of being entrepreneur
• Find customer need, competitor and competition
• Develop value proposition (why customer buy our
product)
• Make prototype and market test
• Make a business plan
• Improve the business process: success, fast and right
 Role of Human Capital

 Country develops if the human capital is developed.

 Improve quality life.

 Create positive attributes.

 Eradication of social backwardness.

 Education and Human Capital

 Education is extensively regarded as a route to economic

prosperity being the key to scientific and technological
advancement.
 Education today is inseparable from the development of
human capital.
 It plays a pivotal role in human capital formation and a
necessary tool for sustainable socio-economic growth.
 Education also combats unemployment, confirms sound
foundation of social equity, awareness, tolerance, self
esteem, and spread of political socialization.
 It raises the productivity and efficiency of individuals and
thus produces skilled manpower capable for leading the
economy towards the path of economic development.
Personal Capital & Human Capital
PERSONAL FACTORS
This refers to socio-demographic profile
of the entrepreneur – which are
influenced by his or her family,
educational background and work
environments – and his or her
entrepreneurial skills (e.g. propensity to
assume risk, tolerance for hard work,
managerial capacities and creativity)

Entrepreneurs are innovation driven and always ready to

challenge conventional business knowledge.
How do you measure your
Personal Capital?

How do you
measure each of
entrepreneurial
character?
ENTREPRENEURIAL CHARACTERISTICS
Ability fo adapt to change
ability to identify and create business from the
opportunities offered by change and benefit
from the new openings

Internal locus of control

they believe that the future is within their
control, and that they are responsible for their
own success

Product/Service driven
aside meeting customer needs,
entrepreneurial ventures are highly motivated
in business because of uniqueness of their
products
 ENTREPRENEURIAL CHARACTERISTICS
Opportunity driven
they dont continue on the same line of
business for a long time, they always seek
ways to expand their business scope

Innovation focuses
it is not the ability to start a business, but
strength of its innovativeness

Value creation
the performance of actions that increase the
worth of goods, services or even a business
 ENTREPRENEURIAL CHARACTERISTICS

Calculated risk taker

a chance of exposure to loss or injury
that might be undertaken after its
advantages and disadvantages have
been carefully taken into account

Proactive
react to market changes, follow the
trend and deal with the changes or
difficulties as it happens or before it
happens
 Self-Efficacy
Self-efficacy : a person’s belief in his or her abliity to succeed in a specific
situation (Bandura (1994)
High Level of Self-efficacy
View challenging problems as situation to
be mastered
Develop stronger interest in the activities
in which they become involved
Create a deeper sense of commitment to
their activities and interests
Recover rapidly from setbacks
Lower level of self-efficacy
Think that challenging tasks are
beyond their abilities
Avoid difficult tasks
Lose confidence in their personal
abilities
Emphasize negative outcomes and
personal failures
 PERSONAL CAPITAL
EDUCATION
& TRAINING EXPERIENCE

KNOWLEDGE
CHARACTER

PERSONAL
CAPITAL
MOTIVATION CAPACITY FOR
& DREAM RELATIONSHIP

SKILLS

What must be included in each part and how do you

measure it?
 PERSONAL CAPITAL
Action oriented
Passionate High energy
level

Flexible CHARACTER Self confident

High need for Willing to take

achievement calculated risk
Self reliant and
independent

How do you measure it?

 PERSONAL CAPITAL

Business
Acumen
Intellectual Management
Capacity Know How

KNOWLEDGE Technical
& EXPERTISE Capabilities

Strategic
Thinking Cognitive
Mindset
Market /
Industrial
Knowledge

How do you measure it?

 PERSONAL CAPITAL
Relationship
Capability
Networking &
Lobbying Negotiation

Social
Financial SKILLS Approach

Ethics Leadership
Capabilities
Managerial
Capabilities

How do you measure it?

 Human Capital: Personality
Tolerance for ambiguity
Commitment
Calculated risk taker
Propensity of hard work
Good relationship capacity Drive Management Know
Self discipline Business Acumen How
High energy level Perseverance
Strategic Thinking
Flexible Passionate Action oriented Cognitive Mindset
EDUCATION & EXPERIENCE Intellectual Capacity
Self reliant and High need for achievement TRAINING
independent KNOWLEDGE & Technical
CHARACTER EXPERTISE Capabilities
Self confident
Independent Market / Industrial
Willing to take PERSONAL Knowledge
calculated risk CAPITAL
Enthusiasm
CAPACITY FOR
AMICA CHAIN MOTIVATION & RELATIONSHIP
DREAM

SKILLS

Social Approach
Negotiation
Networking & Lobbying
Relationship Leadership
Managerial Capability Capabilities
Capabilities Ethics Financial
 PERSONAL VALUE PROPOSITION
• After self analysis and draw your own capital mapping:
• What is your Personal Value Proposition?
• How you interact? (Capacity Relationship, Who you help, How they know
you and how you deliver)

PERSONAL HOW

VALUE YOU

PROPOSITION INTERACT?

• CREATE YOUR PERSONAL CAPITAL CANVAS

 PERSONAL CAPITAL CANVAS

Who you are & what you have How you How you interact
(Key Resources) help (Value (Customer Relationship)
Provided)
Education & Character Experience Capacity Who you help
Training Relationship

Knowledge & Motivation & Skills How they know How you
Expertise Dream you (Channel) deliver

What you give (Costs) What you get (Benefits)

 What is CULTURAL CAPITAL?

Cultural capital encompasses a

broad array of linguistic
competencies, manners,
preferences, and orientations.

Cultural capital is created when

values, traditions, beliefs and
language become the currency to
leverage other types of capital.

Some authors combine cultural

capital and social capital.
 What is CULTURAL CAPITAL?

Cultural capital is the accumulation of knowledge, behaviors, and skills

that one can tap into to demonstrate one's cultural competence, and
thus one's social status or standing in society.

This accumulation was used to reinforce class differences, as

historically and very much still today, different groups of people have
access to different sources and forms of knowledge, depending on other
variables like race, class, gender, sexuality, ethnicity, nationality, religion,
and even age. (Bourdieu, 1986)

https://www.youtube.com/watch?v=5DBEYiBkgp8
Cultural capital exists in an EMBODIED STATE, in the sense that the
knowledge we acquire over time, through socialization and education,
exists within us.
The more we acquire certain forms of embodied cultural capital, like say
knowledge of classical music or hip-hop, the more we are primed to seek
and acquire more of it and things like it.
In terms of norms, mores, and skills--like table manners, language, and
gendered behavior--we often act out and display embodied cultural capital
as we move through the world, and we perform it as we interact with
others.​
Cultural capital also exists in an OBJECTIFIED STATE.
This refers to the material objects we own that might relate to our
educational pursuits (books and computers), jobs (tools and equipment),
how we dress and accessorize ourselves, the durable goods we fill our
houses with (furniture, appliances, decorative items), and even the food
we purchase and prepare.
These objectified forms both signal to those around us what kind of and
how much cultural capital we possess, and in turn, steward our continued
acquisition of it. As such, they also tend to signal our economic class.
Cultural capital exists in an INSTITUTIONALIZED STATE.
This refers to the ways in which cultural capital is measured, certified,
and ranked. Academic qualifications and degrees are prime
examples of this, as are job titles, religious titles, political offices, and
taken-for-granted social roles like husband, wife, mother, and father.
 Group Presentation Today
(Human & Cultural Capital)

 Group D
 Group F
 Group H
 10 Menit Presentasi, 5 menit Tanya Jawab
 Individual quiz for non presenter
 Next Week Lecture
 Individual Study on COURSERA Online Course
https://www.coursera.org
 Topic: Managing Social and Human Capital (Univ. of
Pennsylvania, USA)
 Each group write summary for max 5 pages

Next 2 Weeks Assignment

For Group B & E
 Find journals related to Social Capital, each group has to write
maximal 15 pages report.
 Submit Paper and PPT (2 or days before next week class at 11
pm) by soft copy via email FM
 Example of Email Subject: EC 2019 Journal Social Capital
Kelompok ….. Kelas B6L
 2 Group Presentations (10 minutes presentations, 5 minutes Q &
A)
 Individual Quiz for non presenter
 Final Group Assignment
INTERVIEW ALUMNI PRASETIYA MULYA
 Setiap kelompok wajib melakukan interview kepada alumni S1/S2 Prasetiya Mulya
yang memiliki pengalaman menjadi entrepreneur minimal 10/15 tahun.
 Hal yang harus di explore adalah Entrepreneurial Capital alumni tersebut dari
Human, Personal, Cultural Capital – Social Capital – Industrial Capital dan
Economic Capital pada saat ini dan saat di interview dan pada saat usia 20 tahun.
 Kelompok harus menyiapkan Paper dan Presentasi di session ke 12 dan 13

INTERVIEW INDUSTRY EXPERT

 Setiap kelompok wajib melakukan interview kepada Industry Expert yang menjadi
tugas kelompok di mata kuliah Knowledge of Creative Business.
 Hal yang harus di explore adalah Entrepreneurial Capital alumni tersebut dari
Human, Personal, Cultural Capital – Social Capital – Industrial Capital dan
Economic Capital pada saat ini dan saat di interview dan pada saat usia 20 tahun.
 Kelompok harus menyiapkan Paper dan Presentasi di session ke 12 dan 13