Introduction to Entrepreneurship

Concepts of Entrepreneurship
Entrepreneur”- French verb entreprendre which means to undertake
An enterprise is created by an entrepreneur and the process of its creation is called
Entrepreneurship
Entrepreneurship - process of actions of an entrepreneur who is always in search of
something to exploit new ideas into gainful opportunities by accepting the risk and
uncertainty of the enterprise
Entrepreneur are innovators, willing to take risks and generate new ideas to create
unique and potential profitable solutions to modern-day problems.
Intrapreneurship - activities within a firm or large organization

Entrepreneurship employs the“gale of creative destruction”

Entrepreneurial activities can be incremental or disruptive.

Incremental innovations - are a number of small changes that transform process flows
Disruptive Innovations - are entirely new approach
Factors Affecting Entrepreneurship

1. Personality Factors: 2. Environmental Factors:

[core competencies] [conditions in the work]
a.) Initiative a.) political climate, legal system,
b.) Proactive economic and social conditions and
c.) Perseverance market situations- contribute significantly
d.) Problem-solver to the growth of entrepreneurship
e.) Persuation
f.) Self-confidence
g.) Self-critical
h.) A Planner
i.) Risk-taker
CORE COMPETENCIES IN ENTREPRENEURSHIP

1. Economic and Dynamic Activity 3. Profit Potential

 activity  the level of return for taking risk

 Value creation  without profit potential, its merely
 Dynamic force an abstract leisure activity
2. Innovation 4. Risk- Bearing
 continuous search for new ideas  the essence is to assume risk
 synergy for optimization of  entrepreneur has to assume risk
performance
 Functions of an Entrepreneur

1. Innovation

The following are important functions performed by an entrepreneur.

 entrepreneur is an innovator
 uses creative faculties to do new things; Exploit opportunities in the market
Example: Ernest C. Cu
“Transformed a simple data entry service company into becoming one of the country's
largest outsourcing service providers”

2. Assumption of Risk

 a risk-taker which allows an entrepreneur to take initiatives in doing new things

Example: Corazon D. Ong

“Dietitian by profession; used her knowledge to create affordable processed meat
products that could compete whit already well known and established processed
meat brands”
3. Research
 does a lot of ground-work before taking a leap
 Considers a lot of variety of options before finalizing an idea and putting in
practice.
Example: Gregorio G. Sanchez
“A civil engineer; went into research and performed experiments using pots and pans
and a small tank. His persistence finally led to the development of a food supplement-
LactoPAFI Probiotic Bacteria”
4. Development of Management Skills

 involves the use of managerial skills - planning, organizing, staffing, directing,

controlling and coordinating
Example: Socorro Ramos
“...hands on in negotiating with local and foreign publishers as well as suppliers...”
5. Overcoming resistance to change
 Entrepreneurs always first tries new ideas at his/her level.
 helps a society's overcome resistance to change
Example: Diosdado Banatao
 “...saw opportunity of setting-up his own company by designing chip
sets...successfully developed the first system logic chip set...build Chips and
Technologies company ”
6. Catalyst of economic development

 plays important role in accelerating the pace of economic development of a

country
Example: Mariano Que
“Mercury Drug created a reputation that every Filipino could rely on...the goal of
making safe medication available and accessible to every Filipino community”
 Types of Entrepreneurs
Depending upon the level of willingness to create innovative ideas, here are the
following types of entrepreneurs:
1. Innovative Entrepreneurs
 has the ability to think newer, better and more economical ideas of business
organization and management
 business leaders; contributors to economic development
2. Imitating Entrepreneurs
 people who follow the path shown by innovative entrepreneurs
 The environment does not permit them to have creative and innovative ideas
on their own.
3. Fabian entrepreneurs
 Sceptical about the changes to be made in the organization.
 Do not initiate any inventions but follow only after they are satisfied with its
success rate.
4. Drone entrepreneurs

 Drone is “a person who lives on the labour of others”.

 Satisfied with the existing mode and speed of business.
 die-hard conservative
5. Social Entrepreneurs
 Drives social innovation and transformation in various fields.
 Undertake poverty alleviation objectives and dare to overcome traditional
business and innovate.
Example: Cecilio Pedro
* low-priced toothpaste of Lamoiyan Corporation
* lauded as “Most Outstanding Program for Equal Employment Opportunity”