- Provide better understanding of the

whole concept.

- Act as the point of reference in

determining whether a particular
business endeavor is operating
within the realm of Entrepreneurship.
 * It is an Art of Correct Practices.
* It is a wealth-creating venture.
* It provides valuable goods & services.
* It entails opening and managing the
self-owned enterprise.
* It is a risk-taking venture.
 It is an Art
of
Correct Practices.
 It is not governed by fixed and absolute rules,
whereas science is.

There is constant change which denotes

Movement and Innovation.

ENTREPRENEURSHIP is not static or stagnant.

It continuously grows, develops, improves, and
expands; the CHANGE does not stop.
 AS AN ART, ENTREPRENEURSHIP IS
DYNAMIC.

AS AN ART, ENTREPRENEURSHIP IS CLOSELY

RELATED TO CREATIVITY.

As the FUTURE ENTREPRENEUR, one should

always remember THAT NOTHING IS PERMANENT
in the Field of ENTREPRENEURSHIP.
 It is a Wealth-
Creating Venture
 This feature sounds SIMPLE, but this has been
most misconstrued because of the word WEALTH.

HEALTH IS WEALTH

KNOWLEDGE IS WEALTH

ORDINARY SMALL BUSINESS PEOPLE equate

WEALTH with the term PROFIT.
 PROFIT represents the EXCESS INCOME or
REVENUE from the COST and EXPENSES.

WEALTH is defined as the abundance of money,

property, or possession.
 It provides
valuable goods and
services.
 ANYBODY can sell goods and services for a
PRICE.

These goods and services must have a value in

order to create WEALTH.

“ANYTHING OF NO VALUE TO ANYBODY IS

DEFINITELY A WASTE.”
It entails opening and
managing the self-
owned enterprise.
 This feature highlights two important elements:
THE CONCEPT OF OPENING A SELF-OWNED
ENTERPRISE & THE CONCEPT OF MANAGING IT.
It must be self-owned in order TO QUALIFY as an
entrepreneurial endeavor.
A Business is considered self-owned when the
person managing its daily activities is also its
owner.
WHAT DO YOU MEAN BY
INTRAPRENEURSHIP?
Businesses that are being
managed by others for the
benefit of the owners do
not fall within the sphere of
Entrepreneurship.
 PLANNING is an important principle in
management.

It refers to the process of setting the goals of the

business.

The entrepreneur, being the owner and manager,

must clearly set the goals of his/her business.
 It is a
Risk-Taking
Venture
 BASIC CONCEPT “RISK is inherent in an
Entrepreneurial Venture.”

Once an entrepreneurial venture is BORN because

of new ideas & opportunities, RISK comes
simultaneously with the venture.

RISK cannot be detached from any entrepreneurial

venture and the only way to remove it is to close the
venture,
 Closing the business means
giving up becoming a successful
entrepreneur.

RISK BUSINESS is the risk in

Entrepreneurship.
 * It is an Art of Correct Practices.
* It is a wealth-creating venture.
* It provides valuable goods & services.
* It entails opening and managing the
self-owned enterprise.
* It is a risk-taking venture.
What do you
mean by a
THEORY?
THEORY is a generalization that
explains a set of factors or
phenomena.

It is not an absolute truth.

It can be supported by another

observation or proven to be
otherwise.
Innovation Theory
Keynesian Theory
Alfred Marshall Theory
Risk & Uncertainty-
bearing Theory
Other Theories
INNOVATION
THEORY
It was contributed by JOSEPH SCHUMPETER,
an Austrian economist and political scientist.

It regards the Economic Development as the

product of structural change or innovation.

INNOVATION is the force that will propel the

revolutionary change.
 It becomes the primary role of the
entrepreneur to introduce innovation in any
of the following forms:
NEW PRODUCT
NEW PRODUCTION METHOD
NEW MARKET
NEW SUPPLIER
NEW INDUSTRY STRUCTURE
KEYNESIAN
THEORY
 It was developed by
JOHN MAYNARD KEYNES, a
British economist.
It attributes economic
growth, especially during
depression to the government.
 ALFRED
MARSHALL
THEORY
It was introduced by an English economist
- ALFRED MARSHALL.

He generalizes that the ORGANIZATION

plays the most significant role among the
different factors of production.

Land, Labor, Capital & Organization

The ENTREPRENEURS as the prime movers in
the organization.
They are expected to create new commodities
or improve the existing ones.

Perform and meet expectations ONLY if they

had a thorough understanding of the industry
where they operated.
 RISK AND
UNCERTAINTY-
BEARING
THEORY
 It was developed by FRANK HYNEMAN
KNIGHTS.

It states that an entrepreneur faces

the risk of uncertainty in the process
of connecting the supplier and the
buyer.
 Weber's Sociological Theory
Kaldor's Technological Theory
Leibenstein's Gap-Filling
Theory
Kirzner's Learning-Alertness
Theory
 WEBER'S
SOCIOLOGICAL
THEORY
 It was developed by MAX WEBER.
He said that the SOCIAL CULTURES are the
primary driving elements of entrepreneurship.

The entrepreneur is expected to perform the role

of a good constituent by executing his/her
entrepreneurial activities in line with good
customs and traditions, religious beliefsm and
morals.
 KALDOR'S
TECHNOLOGICAL
THEORY
 It was developed by NICHOLAS KALDOR.

He considern MODERN TECHNOLOGY as an

essential factor in production.

Proper application of modern technology will

promote efficiency in the production of goods
and services.
LEIBENSTEIN'S
GAP-FILLING
THEORY
It was developed by HENRY LEIBENSTEIN.

He proposed that the primary role of

entrepreneurship in any economic activity is
to fill the existing gap.

ENTREPRENEURSHIP is responsible for

recognizing trends in the market.
KIRZNER'S
LEARNING
ALERTNESS
THEORY
 It was developed by ISRAEL KIRZNER.

He pointed out spontaneous learning and

alertness as the two major attributes of
entrepreneurship in any given economy.

The entrepreneur immediately find

appropriate remedy to correct the error or
wrong perception.
HAVE A NICE DAY!
Thank You .....