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Relevance of the

course;ENTREPRENEURSHIP
Prepared by: Crisanta A. Antonio
CONTENT
1. Relevance of the course
2. Key concepts and common competencies
3. Core competency in Entrepreneurship
4. Career opportunities
CONTENT STANDARD PERFORMANCE
STANDARD
The learner demonstrates
understanding of key concepts,
underlying principles, and core
competencies in
Entrepreneurship.
The learner independently
creates/provides a quality
and marketable product and/or
service in
Entrepreneurship as prescribed in the
TESDA Training Regulation
LEARNING COMPETENCIES
1. Discuss the relevance of the course;
2. Explain the key concepts of common competencies;
3. Explain the core competencies in Entrepreneurship;
4. Explore job opportunities for Entrepreneurship as a
career.
ACTIVITY OF MAKING, BUYING,SELLING
NEW IDEA,DEVICE, METHOD

AWARENESS OF SOMETHING

UNPLEASANT TO HAPPEN
GROUP OF PEOPLE WHO WORK TOGETHER
CONFIDENT
POWER AND ABILITY TO LEAD OTHER PEOPLE
ENTREPTENEUR

A person who start the


business and is willing to
risk lost in order to make
money.
Peter Drucker

“The entrepreneur always searches for


change, responds to it and exploits it as an
opportunity.”
• 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.
• Entrepreneurship has an enormous impact on the
economy and in the society.
• Globally, the level of entrepreneurial activity has
contributed significantly to the national level of
economic growth of many countries.
ENTREPRENEURIAL ACTIVITIES
• Entrepreneurial activity responds to policies that ensure the
protection of new ideas, facilitate access to capital and talent,
allow the management of risks
• There are many efforts in various countries to uplift the lives of
its citizens.
• Entrepreneurship is one of the key engines of economic growth
• Entrepreneurship is perceived to be the symbol of business
innovation, determination, perseverance and achievement.
ENTREPRENEURIAL ACTIVITIES
• It is a catchword in this era of globalized
economy
• It is a foundation and catalyst for economic
growth and innovation across nation
• Small and Medium Enterprises (SMEs) are
concrete manifestations of entrepreneurship.
Joseph Schumpeter
• An Austrian economist, was the one
who first articulated the importance of
entrepreneurship to the economy and
in the society in 1934.
DEFINITION OF
ENTREPRENEURSHIP FROM
EARLY ON TO PRESENT
ENTREPRENEURSHIP
• 1. Knight 1921 – having profits from bearing uncertainty and
risk
• 2. Schumpeter 1934 – carrying out of new combinations of firm
organization—new products, new services, new sources of raw
material, new methods of production, new markets, new forms
of organization
• 3. Hoselitz 1952 – uncertainty bearing… coordination of
productive resources… introduction of innovations and
provision of capital.
• 4. Cole 1959 – purposeful activity to initiate and
develop a profit oriented business.
• 5. McClelland 1961 – taking moderate risk
• 6. Shapero 1975 – a kind of behavior that includes :
initiative taking, organizing or reorganizing of social
economic mechanisms to turn resources and situations
to practical account and the acceptance of risk failure
• 7. Casson 1982 – decisions and judgements about the
coordination of scarce resources.
• 8. Ronstadt 1984 – dynamic process of creating incremental
wealth. This wealth is created by individuals who assume the
major risks in terms of equity, time and/or career commitment
of providing value for some product or service. The product or
service itself may or may not be new or unique, but value must
somehow be infused by the entrepreneur by securing and
allocating the necessary skills and resources.
• 9.Drucker 1985 – behavior rather than
personality trait. Its foundation lies in concept
and theory rather than in intuition.
• 10. Gartner 1985 – creation of new organizations
11. Hisrich & Brush 1985
• process of creating something new with value by
devoting the necessary time and effort; assuming the
accompanying financial, psychic and social risks and
uncertainties; and receiving the resulting rewards of
monetary and personal satisfaction.
• 12. Stevenson & Grousebeck 1989 – pursuit of
opportunity without regard to resources currently
controlled.
• 13. Hart, Stevenson and Dial 1995 – pursuit of
opportunity without regard to resources currently
controlled, but constrained by the founders’ previous
choices and industry related experience.
• 14. Shane 2003 – an activity that involves the
discovery, evaluation and exploitation of
opportunities to introduce new goods and services,
ways of organizing, markets, processes and raw
materials thorough organizing efforts that previously
had not existed.
• 15. Kuratko 2009 – dynamic process of vision, change
and creation that requires an application of energy
and passion toward the creation and implementation
of new ideas and creative solutions.
• 16. Dyck and Neubert 2012 – conceiving an
opportunity to offer new or improved goods or
services, showing the initiative to pursue that
opportunity, making plans, mobilizing the resources
necessary to convert the opportunity into reality.
CONTRIBUTIONS OF
ENTREPRENEURSHIP TO
THE ECONOMY AND
SOCIETY
CONTRIBUTIONS OF ENTREPRENEURSHIP TO THE
ECONOMY AND SOCIETY

• 1.Create employment
• 2.Develop new markets
• 3.Introduces innovation
• 4.Generates new sources of materials
• 5.Stimulates investment interest in the new
business ventures being created
CONTRIBUTIONS OF ENTREPRENEURSHIP TO THE ECONOMY AND SOCIETY

• 6. Improves the quality of life


• 7. Serves as role models
• 8. Brings social benefits to the people
• 9. Utilizes and mobilizes indigenous resources
• 10. Provides more alternatives for consumers
EXAMPLES OF
ENTREPRENEURSHIP IN
10 COUNTRIES
United States
• Noted to be one of the friendliest countries for
entrepreneurs,
• Home to Apple, Google, Starbucks, Walmart and
Walt Disney
Singapore
• Literally a small country that controls a
significant portion of the economy in Asia,
• Home to entrepreneurs who innovate on
existing services for local and international
use.
China
• Home to budding entrepreneurs who
manufacture different products that range
from toys, gadgets, electronics and cars;
• A lot of products have generic brand names
Canada
• Entrepreneurs here are exploring opportunities over
the internet such as the people from a region called
Sanikiluag,
• Sanikiluag known for their wood carving skills and
entrepreneurs are selling their products online.
India
• One of the countries in the Asia Pacific
rim with a strong base of
entrepreneur organizations led by the
youth and women.
Taiwan
• Entrepreneurship here is encouraged
through the small and medium enterprise
incubation centers for the purpose of
nurturing young firms, new products and
technologies.
• incubators – provide space, facilities,
hands on management assistance and
access to technologies and financing to
clients, helping them to survive and grow
during the start-up period.
Hongkong
• With the knowledge based economy, it utilizes its
human resources to make its economy the best
possible through entrepreneurship such as activities
related to tourism and agricultural exports which
receives strong support from government and private
sector.
Thailand
• the extent of government support to entrepreneurs is
very evident, in its international airport in Bangkok, a
huge section is subsidized by the Bureau of Small and
Medium Enterprises for the promotion of local
products.
• Tourism for the international markets and agricultural
exports are two major sources of income of Thai
entrepreneurs.
Malaysia
• This country is becoming friendlier to
entrepreneurs which is apparent in the
growing numbers of businesses which
decided to locate here.
South Korea
• It emerged from the Asian financial
crisis better than any other country
in the region,
• Home to Samsung and Kia.
FACTORS THAT INFLUENCE THE FRIENDLINESS OF A
COUNTRY TO ENTREPRENEURS

• Employment regulations
• Bankruptcy laws
• Tax policies of a country
Did you agree ???
• Skills are better than theoretical knowledge of
things, thus giving one an edge of the others if
one possesses the skills of innovation.
• The entrepreneurs always wanting to befriend
with other countries so as to expand its horizon
SEAT WORK
• Move around in your barangay. Record 5
either micro, small or medium enterprises
that have been established there for at
least five years. Find out the effects of
their presence in your community.
Assignment
• Look for a woman entrepreneur in
your community. Ask her about the
reasons for her engaging in
entrepreneurship.
• Report in class what you have
gathered.
DEFINITION OF ENTREPRENEUR
1. From an economist’s point of view
• It is someone who brings resources, labor,
materials and other assets into combinations
that make their value greater than before
• It is also someone who introduces changes,
innovations and a new order
DEFINITION OF ENTREPRENEUR
2. From a psychologist’s point of view
• A person who is typically driven by
certain forces such as the need to obtain
or attain something, to experiment, to
accomplish or perhaps to escape the
authority of others
DEFINITION OF ENTREPRENEUR

3. From a management perspective


• It is someone who identifies
opportunities, plans, mobilizes resources,
manages and assumes the risks of a
business to have a positive impact on
society.
PERSONAL CHARACTERISTICS ATTRIBUTEDTO ENTREPRENEURS

• Confidence
• Flexibility
• Need to achieve
• Responsibility
• Commitment
• Creativity
• Persevering
• Goal-oriented
PERSONAL CHARACTERISTICS ATTRIBUTEDTO ENTREPRENEURS

• Realistic
• Sincere
• Hardworking
• Visionary
• Disciplined
• Feedback seeking
• Moderate risk-taker
COMMON PROFILE DIMENSIONS OF
ENTREPRENEUR APPLICABLE EVEN AMONG
FILIPINO ENTREPRENEURS

• Calculated risk-taking is doing everything possible to


get the odds in their favor, often avoiding taking
unnecessary risks.
• Commitment is the unwavering dedication to work
for the common good of the society through one’s
business
COMMON PROFILE DIMENSIONS OF
ENTREPRENEUR APPLICABLE EVEN AMONG
FILIPINO ENTREPRENEURS
• Feedback-seeking is the taking of steps to
know how well they are doing and how
they might improve their performance.
• Perseverance is the determination to
succeed by overcoming obstacles and
setbacks
COMMON PROFILE DIMENSIONS OF ENTREPRENEUR APPLICABLE EVEN AMONG FILIPINO
ENTREPRENEURS

• Drive to achieve is the internal desire to pursue and


attain challenging goals
• Self-confidence is the belief that together with the
other people, things can be done in the business.
• Opportunity orientation is the constant awareness of
opportunities that exist in everyday life.
COMMON PROFILE DIMENSIONS OF ENTREPRENEUR
APPLICABLE EVEN AMONG FILIPINO ENTREPRENEURS

• Innovativeness is the ability to come up with


something different or unique every time.
• Responsibility is their willingness to put themselves in
situations where they are personally responsible for
the success or failure of the business operation.
• Tolerance for failure is using it as a learning
experience
HOW ENTREPRENEURS THINK
• Actuate self-assessment and
choose course of action
• Generate multiple decision models
• Learn from failure
All these definition contains the following common elements:

• Innovation
• Opportunity seeking and exploitation
• Resource mobilizing
• Encountering risks and uncertainties
• Economic and personal rewards
“What is emerging today is a class of
professional entrepreneurs who rely more upon
their brains than their guts---and who have been
trained to use both methods and technology to
analyze the business environment.” (Dollinger)
ENTREPRENEURIAL COMPETENCIES

• Facilitate opportunity recognition,


• help adapt rapidly to changes,
• enhance business performance,
• strengthen the firm’s competitive position
• stir the achievement of organizational success.
ENTREPRENEURIAL COMPETENCIES

• The sum total of the personality, skills


and knowledge that the entrepreneur
possesses which are necessary to
effectively perform their functions and
responsibilities
ENTREPRENEURIAL COMPETENCIES

• According to Lau, Man and Chan (1999),


entrepreneurial competencies are considered a
higher level characteristic encompassing personality
traits, skills and knowledge.
• Can be seen as the total ability of the
entrepreneur to perform a job role
successfully.
ENTREPRENEURS’
COMPETENCIES
PORTFOLIO
The Functional Competencies
• skills,
• organized into clusters,
• regarding the main areas of managerial knowledge
such as accountancy,
• finance,
• control,
• marketing,
The Functional Competencies

• HR management,
• organization,
• operations,
• internationalization,
• strategy and other capabilities that enable the
entrepreneur to manage the organization.
The Emotional Competencies are those specific behaviors grouped
into five clusters namely:

• self-awareness,
• self-management,
• social awareness,
• relationship management and
• cognitive competencies.
• The Cross-Functional Competencies
are those broad overall skills that are
grouped into goal and action
management cluster, people
management cluster and analytical
reasoning cluster
THE SIX COMPETENCIES
• Opportunity competencies
• Relationship competencies
• Conceptual competencies
• Organizing competencies
• Strategic competencies
• Commitment competencies
Opportunity competencies
• Related to recognizing and
developing market opportunities
through various means
Conceptual competencies
• Related to different conceptual abilities
which are reflected in the behaviors of the
entrepreneur,
• i.e., decision skills, absorbing and
understanding complex information, risk-
taking and innovativeness
Organizing competencies
• Related to the organization of different
internal and external human, physical,
financial and technological resources,
including team building, leading
employees, training and controlling
Strategic competencies
• Related to setting, evaluating and
implementing the strategies of
the firm
Commitment competencies
• Competencies that drive the
entrepreneur to move ahead
with the business.
Relationship competencies
• Related to person to person or individual to grouped
based interactions,
• i.e., building a context of cooperation and trust,
using contacts and connections, persuasive ability,
communication and interpersonal skill.
• Entrepreneurs makes sense of complex
situations more quickly and take more
conventional approaches in making
decisions.
• Entrepreneurs’ critical and creative skills
are utilized in decision making.
FACTORS THAT DETERMINE THE ENTREPRENEURIAL DECISION-
MAKING PROCESS
1. Rational/scientific method in decision making
• this involves the use of standard six-step process to
arrive at a decision.
Identify the problem
Gather data
Analyze data
Formulate alternative solutions
Select the best alternative
Implement the decision
This scientific method requires the use of management quantitative
techniques such as
 forecasting using time series or growth rate analysis,
 sensitivity analysis of financial data regression and
 correlation for market demands and
 PERT-CPM (Program Evaluation Review Technique =
Critical Path Method) for production
 distribution data.
2.Use of intuition in decision-making
• This pertains to the use of
“gut-feel” to arrive at a decision
3. Affect infusion –
• This suggests that entrepreneurs’ current
moods influence judgments or decisions by
influencing the ease with which information
consistent with positive or negative moods
can be brought to mind.
4. Attribution style
• This refers to the entrepreneurs’ self-serving bias
which are related to:
• Strong tendency on the part of most entrepreneurs
to attribute positive outcomes to internal causes, i.e.,
skill, talent, good judgment or hard work
• Corresponding tendency of the entrepreneurs to
attribute negative outcomes to external cause, i.e.,
high inflation rate, obsolete machine, unavailability of
raw materials or unreliable suppliers.
5. Counterfactual thinking
• This is understood as an “afterthought in decision
making in which the procedures followed to perform
the task are discussed and various alternatives that
could have been followed are considered.”
6.Over-confidence
• This refers to the tendency of the
entrepreneurs to think that they know more
than what they really know when they make
the decision
7. Knowing style
• This is the combination of ‘analytical and
conceptual thinking”, where the
entrepreneurs look for facts and data before
they make decisions
8. Creative style
• This is characterized by “holistic and conceptual
thinking, entrepreneurs who uses this style tend to
be creative and enjoy experimentation before making
decisions.
“Entrepreneurship is the best
means for youth to adapt to a
changing and highly competitive
job market in both rural and urban
areas around the world” (OECD)
ENTREPRENEURSHIP CAREER OPPORTUNITIES
FOR THE ACADEMIC TRACK
1.Business Consultant
2.Sales
3. Research and Development
4. Not-for-profit-fundraiser
5. Teacher
6. Talent recruiter
7. Business reporter
8. New Venture Creation
9. Careers in existing entrepreneurial ventures
1.Business Consultant
• – people who can go to a client site, identify
problems and fix them
2.Sales
• – knows how to represent a company, manage
accounts and follow up on leads.
3.Research and Development
• – the need to understand business concepts, systems,
procedures and practices.
4.Not-for-profit-fundraiser
• – understanding the importance of business and
networking relationships
5.Teacher
• – teach students how to increase their
entrepreneurial intention through acquiring the
attitude towards entrepreneurship
6.Talent recruiter
• – someone being not just people savvy but having an
in-depth business sense as well.
7.Business reporter
• – one can write articles is in a prime position to take
the lead on covering a local business beat.
8.New Venture Creation
• – launching a company, buying a business or
franchise, starting a new venture in a family
enterprise or commercializing a technology
9. Careers in existing entrepreneurial ventures


– working for a
startup, small
business,
LONG QUIZ

Identification
DEFINITION OF
ENTREPRENEURSHIP FROM
EARLY ON TO PRESENT
ENTREPRENEURSHIP
1. Carrying out of new combinations
of firm organization—new products,
new services, new sources of raw
material, new methods of
production, new markets, new forms
of organization
2.Taking
moderate risk
3. Decisions and
judgements about the
coordination of scarce
resources.
4. Behavior rather than
personality trait. Its
foundation lies in concept and
theory rather than in intuition.
5. Dynamic process of vision,
change and creation that
requires an application of
energy and passion toward the
creation and implementation
of new ideas and creative
solutions.
6.Having profits from
bearing uncertainty
and risk
7. An activity that involves the discovery,
evaluation and exploitation of opportunities
to introduce new goods and services, ways of
organizing, markets, processes and raw
materials thorough organizing efforts that
previously had not existed
8. Pursuit of opportunity
without regard to
resources currently
controlled.
9. Conceiving an opportunity to offer new
or improved goods or services, showing
the initiative to pursue that opportunity,
making plans, mobilizing the resources
necessary to convert the opportunity into
reality.
10. Process of creating something new with
value by devoting the necessary time and
effort; assuming the accompanying financial,
psychic and social risks and uncertainties; and
receiving the resulting rewards of monetary
and personal satisfaction.
Identify the
Country
United States,China,Singapore,Canada,India

1. One of the countries in the Asia


Pacific rim with a strong base of
entrepreneur organizations led by the
youth and women.
Taiwan,Hongkong,Thailand,Malaysia,South Korea
United States,China,Singapore,Canada,India

2. It emerged from the Asian


financial crisis better than any
other country in the region
Taiwan,Hongkong,Thailand,Malaysia,South Korea
United States,China,Singapore,Canada,India

3. Noted to be one of the friendliest


countries for entrepreneurs, home to
Apple, Google, Starbucks, Walmart
and Walt Disney
Taiwan,Hongkong,Thailand,Malaysia,South Korea
United States,China,Singapore,Canada,India

4.Entrepreneurship here is encouraged


through the small and medium enterprise
incubation centers for the purpose of
nurturing young firms, new products and
technologies
Taiwan,Hongkong,Thailand,Malaysia,South Korea
United States,China,Singapore,Canada,India

5. Entrepreneurs here are exploring


opportunities over the internet such
as the people from a region called
Sanikiluag
Taiwan,Hongkong,Thailand,Malaysia,South Korea
United States,China,Singapore,Canada,India

6. This country is becoming friendlier


to entrepreneurs which is apparent in
the growing numbers of businesses
which decided to locate here.
Taiwan,Hongkong,Thailand,Malaysia,South Korea
United States,China,Singapore,Canada,India

7. Home to budding entrepreneurs who


manufacture different products that range
from toys, gadgets, electronics and cars; a
lot of products have generic brand names

Taiwan,Hongkong,Thailand,Malaysia,South Korea
United States,China,Singapore,Canada,India
8. With the knowledge based economy, it utilizes its
human resources to make its economy the best
possible through entrepreneurship such as activities
related to tourism and agricultural exports which
receives strong support from government and private
sector.

Taiwan,Hongkong,Thailand,Malaysia,South Korea
United States,China,Singapore,Canada,India

9. literally a small country that controls a


significant portion of the economy in Asia,
home to entrepreneurs who innovate on
existing services for local and international
use.
Taiwan,Hongkong,Thailand,Malaysia,South Korea
United States,China,Singapore,Canada,India
10. The extent of government support to
entrepreneurs is very evident, in its international
airport in Bangkok, a huge section is subsidized by
the Bureau of Small and Medium Enterprises for
the promotion of local products.

Taiwan,Hongkong,Thailand,Malaysia,South Korea
ENUMERATE ATLEAST FIVE (5)
CONTRIBUTIONS OF
ENTREPRENEURSHIP TO THE
ECONOMY AND SOCIETY
ENUMERATE FIVE (5)
PERSONAL CHARACTERISTICS
ATTRIBUTED TO
ENTREPRENEURS
THE SIX COMPETENCIES
• Opportunity competencies
• Relationship competencies
• Conceptual competencies
• Organizing competencies
• Strategic competencies
• Commitment competencies
Opportunity,Relationship,Conceptual

1. Related to setting, evaluating and


implementing the strategies of the firm

Organizing,Strategic,Commitment
Opportunity,Relationship,Conceptual

2.Related to person to person or


individual to grouped based interactions

Organizing,Strategic,Commitment
Opportunity,Relationship,Conceptual

3. Related to recognizing and


developing market opportunities
through various mean
Organizing,Strategic,Commitment
Opportunity,Relationship,Conceptual
4.Related to the organization of different internal and
external human, physical, financial and technological
resources, including team building, leading employees,
training and controlling

Organizing,Strategic,Commitment
Opportunity,Relationship,Conceptual
5. Related to different conceptual abilities which are
reflected in the behaviors of the entrepreneur, i.e.,
decision skills, absorbing and understanding complex
information, risk-taking and innovativeness

Organizing,Strategic,Commitment
Opportunity,Relationship,Conceptual

6.Competencies that drive the


entrepreneur to move ahead with the
business
Organizing,Strategic,Commitment
ENUMERATE NINE (9)
ENTREPRENEURSHIP CAREER
OPPORTUNITIES FOR THE
ACADEMIC TRACK