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• Entrepreneurship

  The process of designing, launching and running a new business, which is often initially a small business, or as the "capacity and willingness to develop, organize and manage a business venture along with any of its risks to make a profit."
• Economists have never had a consistent definition of "entrepreneur" or "entrepreneurship"
• The word "entrepreneur" comes from the French verb entreprendre, meaning "to undertake"
• The concept of an entrepreneur existed and was known for centuries, but the theorists left entrepreneurs out of their formal models
• They assumed that perfect information would be known to fully rational actors, leaving no room for risk-taking or discovery
• Risks of entrepreneurship


  • Financial risk
  • Strategic risk
  • Technology risk
  • Market risk
  • Competitive risk
  • Reputational risk
  • Environmental, political, and economic risk
• Financial risk

  An entrepreneur will need funds to launch a business either in the form of loans from investors, their own savings, or funds from family. The founder will have to put their own "skin in the game." Any new business should have a financial plan within the overall business plan showing income projections, how much cash will be required to break-even, and the expected return for investors in the first five-year timeframe. Failure to accurately plan could mean that the entrepreneur risks bankruptcy, and investors get nothing.
• Strategic risk


  An impressive business plan will appeal to investors. However, we live in a dynamic and fast-paced world where strategies can become outdated quickly. Changes in the market or the business environment can mean that a chosen strategy is the wrong one, and a company might struggle to reach its benchmarks and key performance indicators (KPIs).
• Technology risk


  New technologies are constantly emerging, particularly in the era of the Fourth Industrial Revolution. Some of these changes are characterized as "paradigm shifts" or "disruptive" technologies. To be competitive, a new company may have to invest heavily in new systems and processes, which could drastically affect the bottom line.
• Market risk


  Many factors can affect the market for a product or service. The ups and downs of the economy and new market trends pose a risk to new businesses, and a certain product might be popular one year but not the next. For example, if the economy slumps, people are less inclined to buy luxury products or nonessentials. If a competitor launches a similar product at a lower price, the competitor might steal market share. Entrepreneurs should perform a market analysis that assesses market factors, the demand for a product or service, and customer behavior.
• Competitive risk

  An entrepreneur should always be aware of its competitors. If there are no competitors at all, this could indicate that there is no demand for a product. If there are a few larger competitors, the market might be saturated, or, the company might struggle to compete. Additionally, entrepreneurs with new ideas and innovations should protect intellectual property by seeking patents to protect themselves from competitors.
• Reputational risk


  A business's reputation is everything, and this can be particularly so when a new business is launched and customers have preconceived expectations. If a new company disappoints consumers in the initial stages, it may never gain traction. Social media plays a huge role in business reputation and word-of-mouth marketing. One tweet or negative posting from a disgruntled customer can mean huge losses in revenue. Reputational risk can be managed with a strategy that communicates product information and builds relationships with consumers and other stakeholders.
• Environmental, political, and economic risk

  Some things cannot be controlled by a good business plan or the right insurance. Earthquakes, tornadoes, hurricanes, wars, and recessions are all risks that companies and new entrepreneurs may face. There may be a strong market for a product in an under-developed country, but these countries can be unstable and unsafe, or logistics, tax rates, or tariffs might make trade difficult depending on the political climate at any point in time. Also, some business sectors have historically high failure rates, and entrepreneurs in these sectors may find it difficult to find investors. These sectors include food service, retail, and consulting.
• Rewards of entrepreneurship


  • Job satisfaction
  • Higher wages
  • Greater control
• Job satisfaction


  Many entrepreneurs start businesses because they have a passion for it. Striving for success means prolonging the life of the business and staying in touch with your passion long term. This sense of personal satisfaction is what drives many entrepreneurs.
• Higher wages


  Although a third of all business fail in the first two years, according to the Small Business Administration, business owners who are still in business are financially better off than employees. According to a 2004 Gallup survey, only 52 percent of small business owners say they earn more by hour than they would if they were employed by a company in their industry. However, 70 percent said they were doing better financially as their own bosses than working for someone else.
• Greater control


  Being your own boss or not having a boss is probably the greatest advantage of having your own business. It provides you with more control over your life. The profits you generate from your work benefit you, not someone else. You don't have to ask for time off, you decide when to have a vacation, how many hours to work and you can choose to do work you enjoy and find fulfilling. Being you own boss is also exciting; although it has special challenges, no day is the same and you have more flexibility and you will never stop learning.
• Types of entrepreneurship

  • Small business entrepreneurship
  • Large company entrepreneurship
  • Scalable startup entrepreneurship
  • Social entrepreneurship
  • Innovative entrepreneurship
  • Hustler entrepreneurship
  • Imitator entrepreneurship
  • Researcher entrepreneurship
  • Buyer entrepreneurship
• Small business entrepreneurship


  When a person owns and runs their own business. They typically hire local employees and family members. Local grocery stores, hairdressers, small boutiques, consultants and plumbers are a part of this category of entrepreneurship.
• Large company entrepreneurship


  When a company has a finite amount of life cycles. This type of entrepreneurship is for an advanced professional who knows how to sustain innovation. Companies such as Microsoft, Google and Disney are examples of this kind of entrepreneurship.
• Scalable startup entrepreneurship


  When entrepreneurs believe that their company can change the world. They often receive funding from venture capitalists and hire specialized employees. Scalable startups look for things that are missing in the market and create solutions for them. Many of these types of businesses start in Silicon Valley and are technology-focused. They seek rapid expansion and big profit returns. Examples of scalable startups are Facebook, Instagram and Uber.
• Social entrepreneurship


  An entrepreneur who wants to solve social problems with their products and services is in this category of entrepreneurship. Their main goal is to make the world a better place. They don't work to make big profits or wealth. Instead, these kinds of entrepreneurs tend to start nonprofits or companies that dedicate themselves to working toward social good.
• Innovative entrepreneurship


  People who are constantly coming up with new ideas and inventions. They take these ideas and turn them into business ventures. They often aim to change the way people live for the better. Innovators tend to be very motivated and passionate people. They look for ways to make their products and services stand out from other things on the market. People like Steve Jobs and Bill Gates are examples of innovative entrepreneurs.
• Hustler entrepreneurship


  People who are willing to work hard and put in constant effort are considered hustler entrepreneurs. They often start small and work toward growing a bigger business with hard work rather than capital. Their aspirations are what motivates them, and they are willing to do what it takes to achieve their goals. They do not give up easily and are willing to experience challenges to get what they want. For example, someone who is a hustler is willing to cold call many people in order to make one sale.
• Imitator entrepreneurship

  Imitators are entrepreneurs who use others' business ideas as inspiration but work to improve them. They look to make certain products and services better and more profitable. An imitator is a combination between an innovator and a hustler. They are willing to think of new ideas and work hard, yet they start by copying others. People who are imitators have a lot of self-confidence and determination. They can learn from others' mistakes when making their own business.
• Researcher entrepreneurship


  Researchers take their time when starting their own business. They want to do as much research as possible before offering a product or service. They believe that with the right preparation and information, they have a higher chance of being successful. A researcher makes sure they understand every aspect of their business and have an in-depth understanding of what they are doing. They tend to rely on facts, data and logic rather than their intuition. Detailed business plans are important to them and minimize their chances of failure.
• Buyer entrepreneurship


  Who uses their wealth to fuel their business ventures. Their specialty is to use their fortunes to buy businesses that they think will be successful. They identify promising businesses and look to acquire them. Then, they make any management or structural changes they feel are necessary. Their goal is to grow the businesses they acquire and expand their profits. This kind of entrepreneurship is less risky because they are purchasing already well-established companies.
• The 2018 List of Establishments of the Philippine Statistics Authority (PSA) recorded a total of 1,003,111 business enterprises operating in the country
• Of these, 998,342 (99.52%) are MSMEs and 4,769 (0.48%) are large enterprises
• Micro enterprises constitute 88.45% (887,272) of total MSME establishments, followed by small enterprises at 10.58% (106,175) and medium enterprises at 0.49% (4,895)
• Top 5 industry sectors by number of MSMEs in 2018

  • Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles
  • Accommodation and Food Service Activities
  • Manufacturing
  • Other Service Activities
  • Financial and Insurance Activities
• These top 5 industries accounted for about 83.62% of the total number of MSME establishments
• SMEs alone have managed to create over 2.5 million jobs in the Philippines, further signifying the vitality of these establishments to the country's development
• Due to the fact that SMEs greatly influence the country's income rate and development, they must be able to constantly meet the global industrial demands, evolve alongside the new globalization standards and catch up with the digital world
• The wave of digital disruption has hit the Philippines' SMEs, so business leaders must respond proactively by embracing technology solutions and be more digitally-enabled
• As the country gains new digital capabilities and advances its technology development, it is imperative that SMEs go digital
• New and emerging technologies can be a threat to businesses that fail to innovate and keep up with the latest advancements
• Capabilities like digital payment systems are core to SMEs as they are increasingly sought after
• There are 4,895 medium enterprises and 887,272 units of micro business establishments in the Philippines
• SMEs in the Philippines have managed to create over 2.5 million jobs