Entrep M1 P2

• 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
• "Borderless World" should not be taken as a threat but an opportunity
• There are available incentives and support from government and business groups for entrepreneurs to create 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
• 3rd millenium posts a great challenge to business minded persons with entrepreneurial orientation
• 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
• AIM degree looks at entrepreneur as

  • 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 observed that economic development progressed unevenly and in sudden leaps, initiated by men who wanted to promote "new goods and new methods of production or to exploit a new source of materials or a new market"
  • Sociological factors in economic development. Sociologists explain economic growth in terms of social or cultural values, norms and other structures that differentiate modern from traditional economists
  • Psychological factors in economic development. Psychologists view economic growth as a product of individual human behaviour, that is, of a person's 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
• Economic development proceeds according to a?

  Master Plan/ Law of Nature
• • Herbert Spencer viewed society as an organism constantly in the process of evolution
• According to Adam Smith, while individuals seek to work for their own goals, they unknowingly promote what is best for all, it is as if these individuals were led to such actions by an "invisible hand" to the interest of the society. That any society can be made to prosper with little or no intervention from the government.
• Economic development is brought about by "Cultural Diffusion". Societies have been involved in different social or cultural experiments in various economic, political, religious or social aspects of life. That as one culture that has begun to use a new technique interacts with another that has not been exposed to the technique, the former is able to influence the latter to discard old ways and adopt new ones.
• Racial heritage determines the economic development of a people. Some individuals including Hitler contend that racial characteristics makes some people more energetic, thus allowing their countries to be far more developed than others.
• Sociological factors in economic development. Sociologists explain economic growth in terms of social or cultural values, norms and other structures that differentiate modern from traditional economists.
• • Psychological factors in economic development. Psychologists view economic growth as a product of individual human behaviour, that is, of a person's decisions, thoughts and actions. It is assumed that all these are manifestations for conscious or sub- conscious motives of needs.
• Entrepreneurs bend creativity, innovation and risk taking with hard work to form and nurture new ventures
• Entrepreneurs and entrepreneurship culture is now regarded as a potent force and a recognized sector of the economy and one that is to be relied upon given its number and the magnitude of contribution it provides to a country.
• Entrepreneurs have proven over and over again to be the pioneers who convert ideas into products and dreams into reality.