THE

ENTERPREN
EURIAL
MINDSET
 WHAT IS AN ENTREPRENEUR?
The term “entrepreneur” comes from the French word entreprendre which means “to undertake”. It is
reference to individuals who have initiated the establishment of a business enterprise.

The entrepreneurship describe by Schumpeter, however, are individuals who have generated substantial
value and profits from innovation in a very short period of time. These individuals are also willing to
absorb huge risk of using enormous amounts of capital in their business ventures. We call these people
megaentrepreneurs.

However, another type of entrepreneur can be found in developing countries. Some introduce
innovations in the form of changes in their production and distribution processes, but their
contributions process, but their contributions are minimal and attract few compititors and imitators.
Because they are short in funds and inadequate in skills, they cannot undertake projects that onvolve
huge capital, sophisticated technology, and extensive risks. We call them microentrepreneurs.
In seizing opportunities and converting them into business ventures, there are some steps to follow.
Entrepreneurial
Process
 ENTREPRENEURIAL
PROCESS
Although Drucker acknowledge how personal traits and elements of the external
environment could influence the outcomes of an enterprise, what he emphasized
is the importance of how these personal traits and external factors are managed
to achieve of the enterprise. Thus, it is important to formulate a strategy, which
should include an articulation of a plan and how this is going to be
implemented. This entrepreneurial discipline is often referred to as the
entrepreneurial process, which involves several stages from the awareness of an
opportunity to the realization of a business idea. The include the following:
discovery, developing of concept, organizing resources, implementation, and
reaping the returns
 1
DISCOVER
Y
 DISCOVERY
● refers to the recognition of a business idea or the detection of
opportunities that could make many for the entrepreneur.
Megaentrepreneurs draw their ideas from current inventions and other
technological developments that can bring huge profits for them. For
example, the developers of social networks like facebook used the
developments in information and communication technology. On the
other hand, microentrepreneurs typically get their business ideas from
the limitations of existing products as well as from simple business
where markets are easy to enter. For example, the popularity of
lechon baboy among Filipinos encouraged other local entrepreneurs
to introduce lechon manok in the market.
 2
DEVELOPIN
G OF
CONCEPT
 DEVELOPING OF CONCEPT

● the development of a business concept gives more details on

how the general business idea can be realized. It suggests the
preparation of a business plan, which must spell out the
various activities that must be done from production to the
distribution of the product service. The business plan must
also describe how enterprise is going to be organized and
managed, and how the business is going to be finance,
among others.
 3
ORGANIZIN
G
RESOURCES
 ORGANIZING RESOURCES

● on the other hand, describes the process of identifying, sourcing

and financing human, nonhuman, and other resources needed for
the conduct of business. Megaentrepreneur usually require highly
educated, technology savvy, and creative employees. In contrast,
microentrepreneurs draw their resources, including labor from
what is available in their locality. This may be including family
member, neighbors and other workers, who might not necessarily
have the desired skills.
 4
IMPLEMENT
ATION
 IMPLEMENTATION

● is the process of carrying out the business plan. It covers a

number of activities, including the management of human,
physical, technology, and financial resources of the business.
Implementation also includes mechanisms for confronting
actual potential rivals as well as for responding to the various
opportunities, challenges and developments being posed by
external environments.
 5
REAPING
THE
RETURNS
 REAPING THE RETURNS
● pertains to strategies related to the expansion of the business
firm. It also covers mechanisms for addressing conditions in
business environment that may affect the future of the firm.
Entrepreneurial ventures, after all, are very dynamic . They
usually starts a small ventures and eventually transform over
time in terms of the quantity and quality of products they
produce as well as resources they require in the production
process. As these small enterprise change, their governance
structures and financing mechanism may also change.
 CHARACTERISTIC
OF AN
ENTREPRENEURSH
While the entrepreneurial process is important in the
success of business ventures, many entrepreneurship
IP
scholars have argued and presented evidence that
entrepreneurial traits are likewise important in the
performance of a business ventures.
 ENTREPRENEURIAL
TRAITS AND CREATION
OF VALUE-ADDED
 LEVEL OF EDUCATION
Studies have shown that entrepreneurs need some formal education to be able
to seize the opportunities presented by inventions, innovations and other
technological developments. This may be true for megaentrepreneurs since
they need some degree of technological know how to understand the
commercial potentials of modern inventions and innovations. On the other
hand, since entrepreneurship in developing countries is more often being
used as an alternative to formal employment, many microentrepreneurs
usually have limited education qualifications. In addition, engaging in small
enterprises does not require high level of schooling. These small enterprises
use simple technology, and do not require technical sophistication from
workers.
 EMPLOYMENT STATUS
Individuals who become entrepreneurs in developed countries are usually
former employees of companies in the formal sector. The choice of
pursuing entrepreneurship can be viewed as a step in the entrepreneur’s
professional development. These entrepreneurs usually get their business
ideas and concepts from the operations of companies they formerly work
for. Knowing the ins and outs of a company’s operations, including flaws
and weaknesses, they become aware of business opportunities. This is
reason many fresh college graduates seek employment first in establish
companies before starting their own business. On the other a hand,
microentrepreneurs are usually drawn from the pool of unemployed or
underemployed. They see their small business ventures as an option for
making a living.
 ENTREPREUNEUR’S WEALTH

The wealth of entrepreneurs is also important factors. Usually

megaentrepreneurs source theirs funds from their own wealth and from
theirs families. Some generate capital for their business from wealth they
have accumulated from their past employment. They can also borrow
money from their wealthy parents. This is not the case for
microentrepreneurs, who have very limited funds. Many of them are too
poor to have substantial savings to finance a big business venture.
 RISK APPETITE
risk is also an important factor in undertaking a business venture. Risk are
associated with uncertainties in business operation. These uncertainties can
threaten the survival and stability of a business enterprise. Otherwise they
will not engage in business and will just be comfortable with the certainties of
being formally employed.
Conceivably, megaentrepreneurs are more willing to take risks compared to
microentrepreneurs. Their education qualifications, as well as their work
experience, give them an edge in preparing for, and managing these risk.
On the other hand, microentrepreneurs take risk by default if they want to
survive and escape the consequences of unemployment. But their appetite for
risk not as much as the megaentreprenuers.
ENTREPRENEURIAL TRAITS
AND ENTREPRENEURIAL
INTENTIONS
Entrepreneurial intentions, which are planned actions
formulated in the mind of individuals which are geared
towards the objective of establishing a business venture
from potential business opportunities. There are two
broad set of factors that may influence the formation of
entrepreneurial intentions: internal and external factors.
 INTERNAL FACTORS
Internal factors include mainly the qualities of individuals
such as demographic, personal traits, psychological
characteristics, individual skills, prior knowledge and
social ties.
PERSONAL
DEMOGRAPHICS
TRAITS
Refers to gender, martial status, age and There are theoretical bases for the
employment status of individuals who contributions of self-confidence,
are likely to form entrepreneurial determination and enthusiasm and
intentions. other positive human qualities in
influencing entrepreneurial intentions.
 INTERNAL FACTORS
PYCHOLOGICAL INDIVIDUAL SKILLS AND
CHARACTRISTICS PRIOR KNOWLEDGE
Include a host of qualities, including Knowledge and skills learned from prior
need for achievement, risk appetite, employment are valuable in setting up a
acceptance for vagueness, self-efficacy business. Skill acquire from work
and goal setting. experience can also predict entrepreneurial
intentions and behavior
SOCIAL TIES
Since business enterprise is a socioeconomic
institutions, its operation will require the entrepreneur
to deal with a lot of people. Thus, having social ties
might be an important consideration for setting up a
business or not.
EXTERNAL
FACTORS
External factors are also significant determinants
among the external factors are environmental
support and environmental influence.
ENVIRONMENTAL
SUPPORT
Many studies have affirmed the positive effects of government,
financial institutions, and training institutions in setting up
business. An individual will be inclined to pursue
entrepreneurship if support from various government agencies
are forthcoming.
ENVIRONMENTAL
INFLUENCE
On the other hand, includes regulatory structure, patients,
protection of property rights and competitive environment.
Government regulations are important particularly in promoting
public interest like addressing information asymmetry, limiting
negative externalities, and others.
CHARACTERISTICS OF
FILIPINO
ENTREPRENEURS
Like other entrepreneurs in developing countries, a number of
Filipino go into entrepreneurship because they see it as an
opportunity for income creation and employment. Likewise, they
get into business enterprise because of their apparent capabilities
to undertake entrepreneurial activities, the prestige associated
with entrepreneurship, and the positive exposure given by
various forms of media to successful entrepreneurs.
However, in the more advance stage of entrepreneurial activity, the
gender proportion of entrepreneurs and managers become more even.
This implies that males tend to be more even. This implies that males
tend to be more resilient in staying business, as females withdraw at the
intermediate stage.

In terms of age, entrepreneurship in the country attracts more young

individuals. Given the extent of youth unemployment in the country,
entrepreneurship becomes a viable employment option for the young.

In terms of education attainment, almost half of entrepreneurs in the early

stage development have finish secondary schools. However,
entrepreneurs that owns firms at mature stage of entrepreneurship have
higher levels of education.
Majority of those engaged in early stage entrepreneurial activities in the
Philippines are in consumer services including retails, food, personal
beauty care, appliance and electronic repair, cleaning services and laundry
services. A number of Filipino entrepreneurs are also engaged in
manufacturing, extractive enterprises and business services.

As mentioned earlier Filipino entrepreneurs are fearful of business

failure. This is legitimate concern since a number of enterprises close
down at various stages in the life of an enterprises. The report
enumerated number of reasons for business failure including unprofitable
business, personal reasons, financial problems and shift to formal
employment.
 ENTREPRENEURIAL
DECISION MAKING
In this section, we will discuss the various types of thinking that
influence entrepreneurial decision-making. The types of mental
process that we will cover include critical thinking, creative
thinking and strategic thinking.
 CRITICAL THINKING
Refers to the systematic and rational way of providing an answer to a question.
Just like scientific inquiry, an answer to a questions is proceed by an
understanding of the problem, providing possible answers, and reflecting on the
validity of these tentative answers.
Critical thinking also explains what is going on. In business, critical thinking is
useful in explaining how firm can survive and remain stable.

Analysis may be used to show how business analysis make use their strengths
to take advantage of opportunities, how they can improve on their weaknesses,
and how they can guard themselves against threats.
 CREATIVE THINKING
Refers to thought process that bring about discovery of new ideas.
Unlike critical thinking, it does not follow a systematic or analytical
process since it looks at things from different perspectives. The intent
of creative thinking is not to provide an answer but to ask that can lead
to discovery and change.
 STRATEGIC THINKING
Involves thought process that assess current situation that can be useful
in the formulation of plans for the future. It is similar to critical
thinking since it uses an orderly and logical system in its assessment.
But also resembles creative thinking in its growth and future
orientation.
 RISK, COGNITIVE
ADAPTABILITY AND
ENTREPRENEURIAL
DECISIONS
 RISK
Can be described as uncertain situations and developments that can
increase the probability of loss or business failure. Since this hazards can
originate from a variety of sources, business risk can be generally
categorized into those emanating from internal and external factors

INTERNAL
RISK
Pertain to dangers coming from
the management of resources of a
business enterprise that may
imperil its operations
EXTERNAL
RISK
Are threats coming from various
environment outside the business
firm. These can endanger the
operations and profitability of a
firm
The process of identifying, assessing and responding to these risk is called risk
management. For internal risk, the company may adopt controls on the use of
physical and financial resources to ensure efficient resources utilization.

For external risk the company can hold periodic reviews of their strategic plans in
preparations for the impacts of global and national socioeconomic and political
developments on the company. It can also prepare for contingency plans in case
of emergencies, natural calamities and other events that can interrupt the business
operations.
 COGNITIVE ADAPTIBILITY
Refers to the ability of individuals to be involved in the process of
producing several ways of decision-making based on the identification and
management of changes in their environment. It requires of flexibility,
dynamism and self-control on the part of the entrepreneur.

Cognitive adaptability demands that an entrepreneur be flexible and open

to various decision process. With the flexibility the entrepreneur can shift
form using critical thinking to creative thinking in making decisions,
depending on the objective being pursued.
 COGNITIVE ADAPTIBILITY
Besides flexibility in shifting to various process of thinking, cognitive
adaptability requires that an entrepreneur to be dynamic. A dynamic
entrepreneur should be aware of what is going on outside his company and
should be receptive in providing appropriate responses to the changes in
the environment.
Cognitive adaptability also expects that an entrepreneur should have self-
control in making decisions. Although decisions should be made to
response to the changes in the environment, these should be made in undue
haste. The decision of an entrepreneur should be formulated after careful
analysis, deep reflection or even intuitive thought.
THANK YOU!!!
GROUP 1

Manabat
Pinote
Nunez
Padal
Yap