Lesson 1: Understanding the Origin of Entrepreneurship

Cards (21)

  • Entrepreneurship
    • "entrepreneur" a french word entreprendre means "to undertake" or to "take over"
    • it is a reference to individuals who initiated the establishment of a business entreprise.
    • ability to be able to know what product and service are needed by people, and to be able to provide these things at the right time, place, people, price
  • Earliest Period
    • an entrepreneur who sells goods.
    • tradings
    • he would enter into formal agreement with the capitalist.
    • After sold, they would divide the profits
  • Middle Ages

    an entrepreneur is both an actor and a person who was in charge of large production projects (architectural work; building and cathedrals) provided by the government
  • 17th century
    • bidding
    • common practice: agree on price as part of terms
    • an entrepreneur is someone who would enter into formal agreement with the government to provide product and service
    • an entrepreneur either reaps profits or bears losses
  • 18th century
    • investor
    • an entrepreneur was distinguished from the capitalist who simple provides money for the creation of products to be sold.
    • someone who coordinates, leads, manages all the activities in the firm
  • 19th and 20th century
    • an entrepreneur is an innovator who seeks opportunities and leads.
    • He also searches for changes, responds to it, and exploits change as an opportunities
  • 21st century
    • an entrepreneur is considered as heroes of free enterprise
    • creativity and innovation enable them to exploit high growth potential
  • I. Relevance of Entrepreneurship to an Organization
    1. Development of managerial capabilities
    • an entrepreneur studies a problem, identifies it's alternatives, compares the alternatives in terms of cost and benefit implications, and finally chooses the best alternative.
  • I. Relevance of Entrepreneurship to an Organization
    2. Creation of organization
    • entrepreneur assembles and coordinates physical, human and financial resources and direct them toward's achievement of objectives through managerial skills
  • I. Relevance of Entrepreneurship to an Organization
    3. Improving standard of living
    • entrepreneurship helps in making a wide variety of goods and services available to the society
  • I. Relevance of Entrepreneurship to an Organization
    4. means of economic development
    • entrepreneurship involves creation and use of innovative ideas, maximization of output from given resources, and development of managerial skills.
  • II. Concept of Entrepreneurship
    • entrepreneurship is a process of actions of an entrepreneur who is always in search of something new to exploit new ideas into gainful opportunities by accepting the risk and uncertainty of the enterprise.
    • entrepreneurial activities can be incremental or disruptive. (incremental - small changes that transform process to flow; disruptive - entirely new approaches)
  • III. Factors Affecting Entrepreneurship
    1. Personality Factor
    • internal factors
    • an entrepreneur competencies
    • ex: sociability, responsible, discipline, risk-taker
  • III. Factors Affecting Entrepreneurship
    2. Environmental Factors
    • external factors
    • conditions in which an entrepreneur has to work.
    • ex: geographical location, price of the product, pandemic, poverty, politics
  • IV. Core Competencies in Entrepreneurship
    1. Economic and dynamic activity
    • financing, marketing, promoting, doing the labor work
    • involves the creation and operation of an enterprise with a view of creating value or wealth by ensuring optimum utilization of scarce resources
  • IV. Core Competencies in Entrepreneurship
    2. Innovation
    • it compels an individual to continuously evaluate the existing modes of business operations so that more efficient and effective systems can be evolved and adopted.
  • IV. Core Competencies in Entrepreneurship

    3. Profit potential
    • the level of return or compensation to the entrepreneur for taking on the risk of developing an idea into an actual business venture.
  • IV. Core Competencies in Entrepreneurship

    4. Risk bearing
    • the willingness to assume risk arising from the creation and implementation of new ideas
  • Fundamentals of Entrepreneurship
    1. Relevance of Entrepreneurship to an organization
    2. Concept of Entrepreneurship
    3. Factors affecting Entrepreneurship
    4. Core competencies in entrepreneur
  • I. Relevance of Entrepreneurship to an organization
    • Development of managerial capabilities
    • Creation of organization
    • Improving standard of living
    • means of economic development
  • IV. Core competencies in entrepreneurship
    • Economic and dynamic activity
    • innovation
    • profit potential
    • risk bearing