ENTREP MODULE 1 PAERT 2

• Entrepreneurship


  Starting a business of one's own, new and small-scale business
• Entrepreneurship is essentially starting a business of his own, new and small-scale business – Peter Drucker
• Entrepreneurship


  Being engaged or starting in small and medium enterprises (SMEs) or establishing and managing a business of his own
• The challenge to entrepreneurs

  • Be able to compete in a "Borderless World"
  • Cast out "colonial mentality"
  • Create EXPORT QUALITY products
• Before, local producers compete with local companies, now, they have to compete with International, Multinational and Giant corporations present in the local market
• "Borderless World" should not be taken as a threat but an opportunity
• There are available incentives and support from government and business groups for creating export quality products
• The challenge to entrepreneurs (cont)

  • Closely watch Information Technology, Cyberspace and information highway
  • Room for innovation, ventures creation, strategic position and business alliances
  • No more room for traditional management systems
• Entrepreneurship and Philippine Education

  • Schools train students for employmentship unmindful of the benefits of entrepreneurship
  • Some schools now include entrepreneurship in their curriculum, calls for a paradigm shift
  • Entrepreneurship is an alternative to college education
• The country's drop-out rate in elementary, secondary and college education is very high. Of the 100 students, only about 48 graduate. Of this number, only 26 enroll and only 16 earn a degree
• Not necessarily bad because many drop-outs did good, even better than college graduates
• Entrepreneurship and Philippine Education (cont)

  • DepEd created the Bureau of Non-Formal Education
  • Institutions like DLSU, PSBA, PLM, PCU, NTC and TUP offered courses leading to specialization on entrepreneurship
  • AIM opened its Asian Center for Entrepreneurship, an innovative masteral degree program itself with combined classroom sessions and workplace
• AIM Program is anchored on

  • Self-mastery -control of self to control one's environment
  • Situation Mastery - assess situations and find opportunities where other see problems
  • Enterprise Mastery - techniques of developing the enterprise from birth to maturity
• Entrepreneur (in AIM context)

  • Opportunity finder who sees a need, assess the situation, ventures a risk to fulfill the need and makes a profit
  • Innovator who creates new products and services or expands existing markets
  • Facilitates enterprise productivity, push sales thru schemes and strategies
  • Driven by a strong desire to be successful and consumed by motivation to excel
• Theories that explain how economies grow

  • Economic growth as an inevitable process brought about by interacting forces in nature
  • Economic development is brought about by an "Invisible Hand"
  • Economic development is brought about by "Cultural Diffusion"
  • Racial heritage determines the economic development of a people
  • Climatic conditions determine the energy levels of a people and in turn its rate of development
  • The challenge of the natural environment is responsible for the rise of civilization
• Economic explanations for development


  Explains economic development as a rational process brought about when men respond to opportunities in the environment so as to promote their own self-interest or material welfare
• Socio-psychological explanations


  • Entrepreneurship for economic development - Joseph Schumpeter's view of the entrepreneur as an individual driven by noble motives
  • Sociological factors in economic development - social or cultural values, norms and other structures that differentiate modern from traditional economists
  • Psychological factors in economic development - economic growth as a product of individual human behaviour, decisions, thoughts and actions
• Socioeconomic impact and benefits from entrepreneurship

  • Creates employment and promote self-help
  • Improves quality of life
  • Enhances to a more equitable distribution of income and wealth and therefore eases social unrest
  • Utilizes and mobilizes resources and capital to make the country productive
  • Brings social benefits through the government through taxes to the economy
  • Empowers individuals
  • Enhance competitive consciousness
  • Creates new markets
  • Discover new sources of materials
• Who benefits from entrepreneurship?

  • The entrepreneur
  • Those who purchase the entrepreneur's product
  • Those who provide resources to the entrepreneur
  • Those who are employed by the entrepreneur
  • Society as a whole