entrepreneurship

• Entrepreneur


  A person who strongly advocates and correctly practices the concepts and principles of entrepreneurship in operating and managing a self-owned business venture
• Entrepreneurship


  A particular field of practices or process that comes from the word entrepreneur
• Manager


  A person who correctly practices the concept of management
• Small Business


  A business or enterprise that correctly adopts and practices the principles of entrepreneurship
• Ordinary Small Business


  A business enterprise operated and managed by an owner who is not an advocate and does not practice the concepts and principles of entrepreneurship
• Salient features of entrepreneurship

  • Providing values to customers
  • Opening and self-owned business
  • Risk-taking venture
  • Art of correct practices
  • Wealth-creating venture
• Creativity


  Resulting in new ideas which are the backbone of entrepreneurship
• Profit


  The excess income or revenue from the cost and expenses, does not equate to wealth
• Wealth


  The abundance of money, property, or possessions
• Self-owned enterprise


  The person managing its daily activities is also its owner
• Intrapreneur


  Includes the business practices of franchising and buyout
• Business Risk


  Risk in entrepreneurship
• Wealth-creating venture


  Entrepreneurial undertaking wherein wealth is created
• Value


  The opposite of waste, they provide additional benefits to buyers and users
• Theories of Entrepreneurship

  • Innovation Theory
  • Keynesian theory
  • Alfred Marshall Theory
  • Risk and Uncertainty-bearing theory
  • Other theories on entrepreneurship
• Innovation Theory


  Regards economic development as the product of structural change or innovation, contributed by Joseph Schumpeter
• Keynesian Theory


  Puts emphasis on the role of the government in entrepreneurial and economic development, especially when the economy is experiencing depression, developed by John Maynard Keynes
• Alfred Marshall Theory


  Organization plays the most important role, land, labor, capital and organization are the four factors in the production of goods and services
• Risk and Uncertainty-bearing Theory

  Risk-taking is an important dimension that will differentiate an entrepreneur from a worker, uncertainty is an important factor in the production of goods and services, contributed by Frank Hyneman Knight
• Weber's Sociological Theory


  Culture is the primary driving element of entrepreneurship, contributed by Max Weber
• Kaldor's Technical Theory


  Modern technology is an essential factor in production, contributed by Nicholas Kaldor
• Leibenstein Gap-Filling Theory


  The primary role of entrepreneurship in any economic industry is to fill any existing gap, contributed by Henry Leibenstein
• Kirzner's Learning-Alertness Theory


  Spontaneous learning and alertness are the 2 major attributes of entrepreneurship in any given economy, contributed by Israel Kirzner
• Differences between entrepreneurship and ordinary small business activities

  • Motive in opening a business
  • Perception of risk in the business
  • Reactions to changes in the environment
  • View on competition
  • Vision for development and growth
  • Horizon of business operation
  • Sources of business fund
• Misconceptions of entrepreneurship


  • Applies only to manufacturing businesses
  • Applies only to small businesses
  • Applies mostly to persons with a good educational background in business courses
  • Applies only to a good economy
  • Is simply opening a small business
• Contributions of entrepreneurship to the lives of Filipinos


  • Provides guidelines in their wealth-creating ventures
  • Helps improve their financial and social life
  • Helps broaden their creativity
  • Helps make their lives happy, fruitful, and successful
• Contributions of entrepreneurship to the local community

  • Provides employment
  • Creates new demand in the market
  • Makes substantial contributions to the raising and collection of taxes
  • Facilitates the movement of the factors of production
  • Creates new business opportunities
  • Promotes a peaceful and loving community
  • Increases constructive competition
• Contributions of entrepreneurship to the Philippine economy

  • Encourages competitiveness and thereby challenges entrepreneurs to keep improving their products and services
  • Helps find an entrepreneurial niche in the world market
  • Helps hasten the economic recovery process of the Philippines during financial turmoil or crisis
  • Facilitates the smooth flow of money in the market
  • Assists the national government in its desire to have favorable economic ratings in the world market
• The Entrepreneurial Process Of Creating A New Venture

  1. Creation Of Entrepreneurial Idea

  2. Identification Of Entrepreneurial Opportunities

  3. Opening Of Entrepreneurial Venture
• Sources of entrepreneurial ideas

  • Changes in the environment
  • Technological discovery and advancement
  • Governments's thrust, programs, and policies
  • People's interest
  • Past experiences
• Entrepreneurial character traits grouped into 3 major clusters

  • Achievement cluster: opportunity-seeker, committed, persistent, a risk-taker, and efficient and quality-oriented
  • Planning cluster: a goal-setter, an information-seeker, and systematic in planning and monitoring
  • Power cluster: a persuasive and positive networker, and self-confident
• Cognitive skills


  The mental ability of the entrepreneur to learn new things
• Problem-solving skills


  The skills the entrepreneur uses as he or she manages the day-to-day operations in business
• Technical Skills


  Advanced computer and information technology, equipped with technical skills
• Interpersonal skills


  The interaction of the entrepreneur with the workers, suppliers, and creditors
• Entrepreneurial core competency


  The combination of entrepreneurial concepts and principles, and character traits
• Competitive advantage


  The strategic position and condition of the entrepreneurial venture that provides the necessary attributes to outperform competitors, distinguishes the ventures from competitors, achieves superior performance in the industry, and produces a product or develops production methods that can hardly be copied by competitors
• Important elements of the physical environment

  • Climate
  • Physical Resources
  • Wildlife
• Economic forces in the societal environment

  • Interest rates
  • Inflation rates
  • Fiscal policy
  • Monetary policy
  • Income
  • Exchange rates
  • Employees
  • Customer confidence
• Cultural forces in the societal environment

  • Religion
  • Language
  • Beliefs
  • Customs
  • Education