The Foundations of

Entrepreneurship

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 The World of the Entrepreneur

 A new business is born every 10 seconds

in the Philippines
 Study of influential business owners – the
defining issue of the 21st Century:
Entrepreneurship!
 One of 12 Filipinos is actively involved in
trying to start a new business.

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 Entrepreneurial Activity Across the Globe
Percentage of Adult Population Working to Start a New Business

Unit ed St at es 8.5%

Canada 6.8%

Israel 5.4%

It aly 3.4%
Country

Great Brit ain 3.3%

Germany 2.2%

Denmark 2.0%

France 1.8%

Japan 1.6%

Finland 1.4%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

Percent
 What is an Entrepreneur?

One who creates a new business in the face

of risk and uncertainty for the purpose of
achieving profit and growth by
identifying opportunities and assembling
the necessary resources to capitalize on
them.

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 Characteristics of Entrepreneurs
 Desire for responsibility
 Preference for moderate risk
 Confidence in their ability to succeed
 Desire for immediate feedback
 High level of energy
 Future orientation
 Skilled at organizing
 Value achievement over money

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 Benefits of Small Business
Ownership
The opportunity to:
 create your own destiny
 make a difference
 reach your full potential
 reap unlimited profits
 contribute to society and be recognized for
your efforts
 do what you enjoy and have fun at it

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 Drawbacks of Small Business
Ownership
 Uncertainty of income
 Risk of losing your entire investment
 Long hours and hard work
 Lower quality of life until the business gets
established
 High levels of stress
 Complete responsibility
 Discouragement

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 Feeding the
Entrepreneurial Fire
 Entrepreneurs as heroes
 Entrepreneurial education
 Demographic and economic factors
 Shift to a service economy
 Technological advancements
 Independent lifestyles
 E-Commerce and the World Wide
Web
 International opportunities

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 The Cultural Diversity of
Entrepreneurship
 Young entrepreneurs
 Women
 Minority-owned enterprises
 Immigrant entrepreneurs
 Part-time entrepreneurs
 Home-based businesses
 Family businesses
 Copreneurs
 Corporate castoffs
 Corporate dropouts
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 Small Business by Industry

Financial Other
8.0% 7.3%
Services
Construction
39.2%
11.8%

Manufacturing
5.8%
Wholesale Retail
7.4% 20.5%
 Small Businesses
 Make up 80% of all businesses in the
Philippines.
 Employ 50% of the nation's private
sector workforce.
 Create more jobs than big businesses.
 Are leaders in offering training and
advancement opportunities to
workers.

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 Small Business Survival Rate

100%
% of Small Firms

80%
Surviving

60%
40%
20%
0%
New 2 4 6 8 10
# of Years in Business
 The Small Business
Failure Record
 24% of new businesses fail after two
years.
 51% fail within four years.
 63% fail within six years.

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 Nine Deadly Mistakes of
Entrepreneurship
1. Management incompetence
2. Lack of experience
3. Poor financial control
4. Failure to develop a strategic plan
5. Uncontrolled growth

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 Nine Deadly Mistakes of
Entrepreneurship
(continued)

6. Poor location
7. Improper inventory control
8. Incorrect pricing
9. Inability to make the “entrepreneurial
transition”

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 Avoiding the Pitfalls of
Small Business Failure
 Know your business in depth
 Develop a solid business plan
 Manage financial resources
 Understand financial statements
 Learn to manage people effectively
 Keep in tune with yourself

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