Entrep lesson 1

• “The Entrepreneur always searches for change, responds to it, and exploits it as an opportunity.” – Peter Drucker
• There are many efforts in various countries to uplift the lives of its citizens, and entrepreneurship is seen as one of the key engines of economic growth
• Entrepreneurial activity responds to policies that ensure the protection of new ideas, facilitate access to capital and talent, and allow the management of risks
• ✓ Entrepreneurship is perceived to be the symbol of business innovation, perseverance, and achievement
• Entrepreneurship is a catchword in this era of globalized economy.
• entrepreneurship is a foundation and catalyst for economic growth and innovation across nations.
• Entrepreneurial activities thrive in societies with supportive government policies and which give much importance to innovativeness and risk-taking to turn new idea into breakthrough solutions.
• Small and medium enterprises (SMEs) are concrete manifestations of entrepreneurship
• According to a United Nations report, in developing countries, SMEs account for more than 90% of all jobs, sales, and value added; while in developed countries, they account for only over 50% of these same measures.
• Knight (1921) ➢ Having profits from bearing uncertainty and risk
• Schumpeter (1934) ➢ Carrying out of new combinations of firm organization—new products, new services, new sources of raw materials, new methods of production, new markets, new forms of organization.
• Cole (1959) ➢ Purposeful activity to initiate and develop a profit-oriented business.
• McClelland (1961) ➢ Taking moderate risk
• Casson (1982) ➢ Decisions and judgments about the coordination of scarce resources
• Drucker (1985) ➢ Behavior rather than personality trait. Its foundation lies in concept and theory rather than intuition.
• Kuratko (2009) ➢ Dynamic process of vision, change, and creation that requires an application of energy and passion toward the creation and implementation of new ideas and creative solutions.
• Dyck and Neubert (2012) ➢ Conceiving an opportunity to offer new or improved goods or services, showing the initiative to pursue that opportunity, making plans, mobilizing the resources necessary to convert the opportunity into reality
• Although each of these definitions views entrepreneurship from a slightly different perspective, they all contain the following common elements: • INNOVATION • OPPORTUNITY SEEKING AND EXPLOITATION • RESOURCE MOBILIZING • ENCOUNTERING RISKS AND UNCERTAINTIES • ECONOMIC AND PERSONAL REWARDS
• There are lot of factors that influence the friendliness of a country to entrepreneurs; among these are the employment regulations, bankruptcy laws, and tax policies of a country
• It is always inevitable that there are people who will take up the challenge to become an entrepreneur in spite of the competitive business environment.
• United States– noted to be one of the friendliest countries for entrepreneurs in the world, the US is home to thousands of successful entrepreneurs as shown by companies like Apple, Google, Starbucks, Walmart, and Walt Disney.
• Singapore– this is literally a small country that controls a significant portion of the economy in Asia.
• China– this emerging country is home to budding entrepreneurs who manufacture different products that range from toys, gadgets, electronics, and cars.
• Canada- this entrepreneurs in Canada are exploring opportunities over the internet.
• India– entrepreneurship plays a dominant role in the country’s economic landscape, with the government providing a venue, called the Delhi Huts, to start-up entrepreneurs which promote local handicrafts.
• In fact, India is one of the countries in the Asia-Pacific rim with a strong base of entrepreneur organizations led by the youth and women.
• Taiwan– entrepreneurship is encouraged here through the small and medium enterprise incubation centers for the purpose of nurturing young firms, new products and technologies.
• Hong Kong – with a knowledge-based economy, Hong Kong utilizes its human resources to make its economy the bests possible through entrepreneurship.
• Hong Kong is known as a “shopping haven"
• Thailand – the extent of government support to entrepreneurs is very evident in, for example, in its international airport in Bangkok, where a huge section is subsidized by the Bureau of Small and Medium Enterprises for the promotion of local products marketed by entrepreneurs.
• Malaysia – this country is becoming friendlier to entrepreneurs and this is apparent in the number of business, both international and local, which decided to locate in Malaysia.
• South Korea – emerged from the Asian financial crisis better than any other country in the region.
• 47% of the 803, 476 registered establishments are SMEs owned by women.
• The Philippines is an Entrepreneurial country, where 99.7% of all firms operating in the country are small and medium enterprises employing 69% of labor forces
• SMEs and large enterprises are predominantly found in and around Metro Manila, while micro enterprises are relatively less geographically concentrated
• The government, among its major strategies, is focused on promoting entrepreneurship with right environment.
• Examples of SME-friendly laws are the Magna Carta for Small Enterprises and the Barangay Micro-Business Enterprises Act which provide for incentives to registered BMBEs