Entrep lesson 2

• The evolution of the field of entrepreneurship has been formulated by scholars based on theories that are rooted in economics, psychology, sociology, anthropology, and management.
• The overview consists of six historical periods where the entrepreneurship contributors or scholar are cited based on their work
• The classic contributors considered are Cantillon, Say, Marshall, Schumpeter, Knight and Kirzner
• The modern contributors considered are Drucker, Hisrich, Timmons, and Shane.
• The Earliest Period 3.5 B years ago ➢ Based on the idea that an entrepreneur is a person who sells goods on behalf of the goods’ owner, entrepreneurship was exhibited by Marco Polo (1254-1324), the merchant from Venice who travelled to many places in Asia to trade.
• The Earliest Period 3.5 B years ago ➢ He would enter into a formal agreement with a capitalist to sell his goods.
• The Earliest Period 3.5 B years ago ➢ He bore all the risks of possible damage or loss of the goods.
• The Earliest Period 3.5 B years ago ➢ After everything was sold, profits were divided between the capitalist and the trader as agreed.
• The Middle Ages 500- 1500 CE ➢ The term entrepreneur was used to describe both an actor and a person who was in charge of and managed large production projects. ➢ This person merely managed the projects using the resources provided by the government.
• The Middle Ages 500- 1500 CE ➢ In this case, he did not assume any risks.
• The 17th Century 1601-1700 ➢ Entrepreneurship has become associated with risk. ➢ The entrepreneur either reaps profits or bear losses.
• The 17th Century 1601-1700 ➢ A prominent theorist during this period was Richard Cantillon (1680-1734), an economist who viewed the entrepreneur as a risk taker and a bearer of uncertainty (Van Praag, 1999)
• The 18th Century 1701- 1800 ➢ The entrepreneur was distinguished from the capitalist who simply provides money for the creation of products to be sold.
• The 18th Century 1701- 1800. ➢ Jean-Baptiste Say (1767-1832), a French economist and businessman, described the entrepreneur as a person who plays a central coordinating role both in producing and selling goods. ➢ He was someone who coordinates, leads, and manages all the activities of the firm (Van Praag, 1999)
• 19th Century (1801- 1900) 20th Century (1901- 2000) ➢ However, towards the middle of the 20th century, Joseph Schumpeter (1883-1950), an Australian-Hungarian- American economist and political scientist, refuted the idea of entrepreneur as innovator who seeks opportunities and leads “existing means of production into a new channels.”
• 19th Century (1801- 1900) 20th Century (1901- 2000) ➢ Risk and financing is relegated to the banker or to some other party whose sole aim is to provide needed capital.
• 19th Century (1801- 1900) 20th Century (1901- 2000) ➢ On the other hand it was also during this period that business expert Peter Drucker (1909-2005), came up with a behavioral concept of the entrepreneur – one who actually searches for change, responds to it, and exploits change as an opportunity.
• 21st Century 2001-2100 ➢ Entrepreneurs in the 21st century are considered the heroes of free enterprise. ➢ Creativity and innovation have made many of these entrepreneurs able to exploit high growth potentials.
• Entrepreneurship has existed in the Philippines sine the interaction of the early Filipinos with foreign trades, especially the neighboring countries like Malaysia, Indonesia and China.
• They started business transactions through the barter system wherein goods and services where the means of exchanges.
• Then countries moved towards a money economy when people used different forms of money to pay for the goods that they bought.
• However, when Spain, Japan, and America colonized the Philippines for hundred of years, they changed the structure of the society, the economy, education, and the political system
• We became a predominantly familycentered, Catholic, capitalistic, and democratic country.
• After independence, the Philippine government realized the importance of entrepreneurship to individuals, society and the country, and how it contributes to the nation’s economic development.
• The small and medium enterprises (SMEs) became the embodiment of entrepreneurship in the country
• ✓ The SME development regulatory framework and policies started in 1935 when the 1935 Philippine Constitution first recorded the national commitment to economic success through industrial and technological growth.
• The historical data show that the intensification of entrepreneurship development started in the 1970s.
• Then, the 1987 Philippine Constitution reinforced the commitment for the development reforms and reorganization.
• The Magna Carta for Small Enterprises is the landmark legislation which reflect current government policy to foster a dynamic SME sector particularly rural and agricultural-based manufacturing ventures.
• On the other hand, R.A 7882, the Act Providing Assistance to Women, recognizes the special role of women in the development and supports women entrepreneurs who are engaged in the manufacturing, processing, service and trading business.