01 Introduction to Entrepreneurship

• French word of entrepreneurship - entreprendre
• entreprendre - to undertake
• Entrepreneurs - are people who take on the risks and challenges of starting new businesses.
• Entrepreneurship - is one of the driving forces behind the development and improvement of society.
• The five (5) most essential roles of entrepreneurship in society (Guillebeau, 2023):

  • Employment Creation
  • Economic Development
  • Technological Advancement
  • Market Dynamics
  • Socio-Cultural Changes
• Types of Entrepreneurship:

  • Agripreneurship - Edita Aguinaldo Dacuycuy
  • Buyer Entrepreneurship - Tony Tan Caktiong
  • Ecopreneurship - Jamico Yco Jamlang
  • Imitator Entrepreneurship - Bin Lin
  • Intrapreneurship - Paul Buchheit
  • Large Business Entrepreneurship - Ernest Cua
  • Scalable Startup Entrepreneurship - Roland Navarro de Ros
  • Small Business Entrepreneurship - Nericel Bonus
  • Social Entrepreneurship - Bryan Benitez McClelland
  • Technopreneurship - Diosdado Banatao
• Small, Medium, and Micro-sized Enterprises (SMME) - are any business activity or enterprise engaged in industry, agribusiness, and services, whether single proprietorship, cooperative, partnership, or corporation, whose total assets are inclusive of those arising from a loan but exclusive of the land on which the business is situated, under the following capitalization (Arat, 2023)
• • Less than P50,000 - Micro
  • P50,001 to P500,000 - Cottage
  • P500,001 to P5,000,000 - Small
  • P5,000,001 to P20,000,000 - Medium
• Forms of Business Ownership:

  • Sole Proprietorship
  • Partnership
  • Corporation
  • Cooperative
• Sole Proprietorship - it is initiated, organized, owned, and managed by a single person
• Partnership - two (2) or more partners who co-own a business to make a profit
• Corporation - exist in contemplation of law; the business has its own identity separate and distinct from stockholders
• Cooperative – a duly registered group of persons with a common interest to voluntarily join to achieve a lawful social and economic end.
• Core competencies that entrepreneurs need:

  • Leadership
  • Articulate
  • Sociable
  • Adaptable.
  • Collaborative.
  • Multifaceted.
  • Resilient
  • Proactive
  • Innovative
  • Risk-taker
  • Creative
  • Passion
• Leadership - Entrepreneurs display their passion, vision, and mission for the business in every interaction with investors, employees, and external stakeholders.
• Sociable - Entrepreneurs recognize that aligning the organizational approach with the unique characteristics of the business and its employees is crucial when managing people.
• Adaptable - Entrepreneurs must be decisive, passionate, adaptable, and willing to make changes.
• Collaborative - Entrepreneurs know it is crucial to connect with managers, investors, partners, and stakeholders as equals. They understand the value of each person's contribution and do not focus on a hierarchical structure.
• Multifaceted - Entrepreneurs must be adaptable and multi-skilled. They must manage all business aspects, including sales, marketing, and client and stakeholder management.
• Resilient - Entrepreneurs embrace failure and never give up easily. They constantly seek motivation and view setbacks as chances to gain wisdom and advance.
• Proactive - An entrepreneur should take the initiative to address problems before they happen, whether about finances, branching into a new market, or benchmarking the competitors.
• Innovative - Entrepreneurs can grow their businesses and satisfy customers by developing new market offerings that meet the changing demands.
• Risk-taker - Entrepreneurs are aware of the potential risks of starting a business and are proactive in mitigating these risks.
• Creative - Entrepreneurs who succeed possess a relentless curiosity that drives them to constantly explore novel concepts and prospects that evolve into profitable business ventures.
• Passion - Entrepreneurs' passion is a constant source of motivation and drives them to achieve their targets of revolutionizing outdated methods and introducing innovative business concepts.
• Motivation Theory - suggest that behavior is not random but rather driven by a purpose to achieve specific objectives. In other words, entrepreneurial motivation refers to an entrepreneur's drive to continue engaging in entrepreneurial activities.
• Two (2) types of motivation:

  • Extrinsic Motivation
  • Intrinsic Motivation
• Extrinsic Motivation - It is about motivating individuals to complete a task by offering rewards such as money, gifts, or treats. However, this type of motivation fades away when the reward is absent or not at par with their interest.
• Intrinsic Motivation - People do the task at hand because they are passionate about the business.
• Categories of intrinsic motivation:

  • Achievement Motive
  • Power Motive
  • Affiliation Motive
• Achievement motive - Have a strong motivation to succeed, achieve greatness, and conquer any difficulties and hurdles in the quest for objectives.
• Power motive - The desire for control, influence, and the ability to impact others and change circumstances.
• Affiliation motive - The act of pursuing, upholding, or revitalizing an emotional connection with others.