Foundation of Entrepreneurship

• "entrepreneur" originates from the French word...

  entreprendre
• Entreprende means "to undertake"
• This signifies the start of a new business.

  Entrepreneurship
• Entrepreneur


  is a person who STRONGLY ADVOCATES & CORRECTLY PRACTICES THE CONCEPT and PRINCIPLES OF ENTREPRENEURSHIP in operating and managing the self-owned entrepreneurial venture.
• The term “entrepreneurship” comes from the word entrepreneur.
• Entrepreneurship


  is the ART OF OBSERVING CORRECT PRACTICES in managing and operating a SELF-OWNED WEALTH-CREATING BUSINESS ENTERPRISE by providing goods and services.
• The Entrepreneurial Process

  Discovery, Development of Concept, Organizing Resources, Implementation, Reaping the returns
• Discovery – it refers to recognizing a business idea or detecting opportunities that could make money for the entrepreneur.
• Development of concept – gives more details on how the general business idea can be realized
• Organizing resources – describes the process identifying, sourcing, and financing human, nonhuman, and other resources needed for the conduct of business.
• Implementation – the process of carrying out the business plan.
• Reaping the returns – pertains to strategies related to the expansion of the business firm.
• Characteristics of Entrepreneurs

  (1) Entrepreneurial Traits and Creation of Value Added, (2) Entrepreneurial traits & Entrepreneurial Intentions
• Entrepreneurial Traits and Creation of Value-Added

  Level of Education, Employment status, Entrepreneur’s wealth, Risk appetite
• Risk appetite – entrepreneurs should be risk-takers.
• Entrepreneurial Traits and Entrepreneurial Intentions

  Demographics, Personal Traits, Psychological Traits, Social Ties
• Entrepreneurial Decision-Making

  (1) Critical Thinking, (2) Creative Thinking, (3) Strategic Thinking
• Critical thinking – refers to the systematic and rational way of providing an answer to a question.
• Creative thinking – refers to thought processes that bring about discovery of new ideas.
• Strategic thinking – involves thoughts processes that assess a current situation, which can be useful in the formulation of plans for the future.
• Risks – refer to uncertain situations and developments that can increase the probability of loss or business failure.
• Two types of Risks

  Internal Risk & External Risk
• Internal risk – pertain to dangers coming from the management of resources of a business enterprise that may affect the operation.
• External risk – threats coming from various environments outside the business firm.
• Examples of Internal Risk

  Failure to hire best talents, Damage to reputation, Failure to innovate
• Examples of External Risk

  Increased competition, Commodity price risks, Business interruptions, Political risks, Regulatory risks