Entrep (Module 1)

Blackburn (2011) 

• claims, that whilst there is no universally accepted definition of entrepreneurship, it is fair to say that it is multi-dimensional. It involves analyzing people and their actions together with the ways in which they interact with their environments, be these social, economic, or political, and the institutional, policy, and legal frameworks that help define and legitimize human activities.

• It is therefore necessary that we fully understand what entrepreneurship means before we study it. 

Richard Cantillon

• Irish-French economist associated entrepreneurs with “risk-bearing” activity in the economy. According to him, an entrepreneur is the agent who buys means of production at certain prices in order to combine them into a product that he going to sell at prices that are uncertain at the moment at which he commits himself to his costs. He emphasized the entrepreneur’s function of taking risks and bearing the uncertainties.

Jean-Baptiste Say

• A renowned economist 

• “The entrepreneur is the economic agent who unites all means of production, the labour force of the one and the capital or the land of the others and who finds in the value of products his results from their employment reconstitution of the entire capital that he utilizes and the value of the wages, the interest and the rent which he pays as well as profits belonging to himself.” 

• He further contends that an entrepreneur is someone who shifts economic resources out of an area of lower productivity into an area of higher productivity and greater yield

Joseph Schumpeter

• defines an entrepreneur as, “… an individual who carries out new combinations of means of production by which there occurs disequilibrium.” 

• He further puts forth that entrepreneurs, an especially talented and motivated class of people, are key individuals in development.

• an entrepreneur is basically an innovator and innovator is one who introduces new combinations.

Howard Stevenson

• Harvard Business School professor

• “Entrepreneurship is the pursuit of opportunity beyond resources controlled.

Zimmerer & Scarborough, 2008, p. 5

• An entrepreneur can be described as “one who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying significant opportunities and assembling the necessary resources to capitalize on them.”

Entrepreneur, n.d.

• An entrepreneur is “one who organizes, manages, and assumes the risks of a business or enterprise.”

Baron, Shane, & Reuber, 2008, p. 4

• Entrepreneurship can be defined as a field of business that “seeks to understand how opportunities to create something new (e.g., new products or services, new markets, new production processes or raw materials, new ways of organizing existing technologies) arise and are discovered or created by specific persons, who then use various means to exploit or develop them, thus producing a wide range of effects” 

Brooks, 2009, p. 3

• is that it is the process of pursuing opportunities without limitation by resources currently in hand” 

Kao, 1993, p. 70

• “the process of doing something new and something different for the purpose of creating wealth for the individual and adding value to society” 

Frederick, Kuratko, and O’Connor

“Entrepreneurship is a dynamic process of vision, change and creation. It requires an application of energy and passion towards the creation and implementation of new value-adding ideas and creative solutions. Essential ingredients include the willingness to take calculated risks in terms of time, equity or career; the ability to formulate an effective venture team; the creative skill to marshal needed resources; and, finally, the vision to recognise opportunity where others see chaos, contradiction and confusion.” 

Process

denotes that a procedure has several steps or stages to be taken. In the same manner, the practice of entrepreneurship involves several steps of stages to be taken. 

Creating something new

this is innovation with resources (resource bundling – more on that later), and then you start building---creating that something new (innovation).

Value

refers to the worth attributed to something. Value creates demand (the amount people are willing and are able to buy), and in turn demand creates revenue.

Assuming the risk

uncertainty

Entrepreneurship creates opportunity.

• Entrepreneurship is an engine for favorable outcomes to be created. Through entrepreneurship, jobs are created, providing livelihood for people in the community

Entrepreneurship ensures social justice

• Not everyone is born into a wealthy family, or has access to resources, or is privileged. Entrepreneurship makes sure that we all can get into an equal footing. 

Entrepreneurship instills in us confidence

• ntrepreneurship teaches us to be independent. It teaches us to take charge of our own lives, be our own bosses, and take control of our own destiny.

Entrepreneurship stimulates the economy

• Entrepreneurship creates demand. In turn, demand stimulates consumer spending.

 Entrepreneurship teaches us to fail and to persevere

the rewards of perseverance are worth taking the risk.

Entrepreneurship teaches us to become creative, innovative, and inventive

• Entrepreneurship stimulates our minds to think of new solutions to problems, new ways we can do things, and new products for efficient living.

Required Education

• educational requirements are non-specific. 

• Entrepreneurs come from all sorts of educational backgrounds: college drop-outs, engineers, teachers, farmers, etc. All entrepreneurs need capital, so the ability to write an effective business plan is vital. 

• A certain degree of business acumen is required, but it can be learned through some hours of training. 

Required Skills

• Entrepreneurs must have a tolerance for risk taking and a willingness to leave the security of a conventional and tedious job, and a regular paycheck. Also, the ability to multi-task is a key as you will be handling several responsibilities at any given time. 

Career Outlook 

• earnings for entrepreneurs vary drastically, and income is often unstable, especially in the early days of a new business

Corporate Entrepreneurship

employees and people within organizations that engage in entrepreneurship

Frederick, O’Connor, and Kuratko refer to it as intrapreneurship

(entrepreneurship within organizations)--- intra: inside, within.

Intrapreneurship

is a process whereby an individual (or a group of individuals), in association with an existing organization, creates a new organization or instigates renewal or innovation within the organization.

Shared Traits of Entrepreneurs and Intrapreneurs

1. Leadership

2. Intelligence and vision

3. Adaptability

Trading Entrepreneur

• undertakes the trading activities. 

• procure the finished products from the manufacturers and sell these to the customers directly or through a retailer. 

• serve as the middlemen as wholesalers, dealers, and retailers between the manufacturers and customers.

Manufacturing Entrepreneur

• manufacture products. 

• -dentify the needs of the customers and then explore the resources and technology to be used to manufacture the products to satisfy the customers’ needs.

• convert raw materials into finished products.

Agricultural Entrepreneur

• entrepreneurs who undertake agricultural pursuits

• cover a wide spectrum of agricultural activities like cultivation, marketing of agricultural produce, irrigation, mechanization, and technology.

Technical Entrepreneur

• entrepreneurs who establish and run science and technology-based industries.

• who make use of science and technology in their enterprises

Non-Technical Entrepreneu

• entrepreneurs 

• forte of their enterprises is not science and technology

• concerned with the use of alternative and imitative methods of marketing and distribution strategies to make their business

Private Entrepreneur

• A private entrepreneur is one who as an individual sets up a business enterprise. He/she is the sole owner of the enterprise and bears the entire risk involved in it.

State Entrepreneur 

• When the trading or industrial venture is undertaken by the State or the Government.

Joint Entrepreneur

• When a private entrepreneur and the Government jointly run a business enterprise.

Small-Scale Entrepreneur

• An entrepreneur who has made investment in plant and machinery up to Php. 15M. 

 Medium-Scale Entrepreneur

• The entrepreneur who has made investment in plant and machinery above Php. 15M to Php. 100M 

Large-Scale Entrepreneur

• The entrepreneur who has made more investments in plants and machinery than Php. 100M.

Innovating Entrepreneurs

• are one who introduce new goods, inaugurate new method of production, discover new market and re-organize the enterprise. 

Imitative Entrepreneurs

• These are characterized by readiness to adopt successful innovations inaugurated by innovating entrepreneurs. 

• do not innovate the changes themselves they only imitate techniques and technology innovated by others. 

Fabian Entrepreneurs

• characterized by very great caution and skepticism in experimenting any change in their enterprises. 

• They imitate only when it becomes perfectly clear that failure to do so would result in a loss of the relative position in the enterprise.

Drone Entrepreneurs

• These are characterized by a refusal to adopt opportunities to make changes in production formulae even at the cost of severely reduced returns relative to other like producers. 

• Such entrepreneurs may even suffer from losses but they are not ready to make changes in their existing production methods. They are laggards as they continue to operate in their traditional way and resist changes. 

 Socorro Ramos

 entered the publishing and retail industry by working as a salesgirl at a bookstore. At the age of 19, she opened National Book Store in Escolta with her husband with a capital of P200, selling books and school supplies to students.

Tony Tan Caktiong

 used to operate an ice cream parlor, before converting it into a fastfood restaurant called Jollibee. With a starting capital of P350,000

Edgar Sia

decided to open the barbecue fast food restaurant Mang Inasal—Ilonggo for “Mr. Barbecue.”

Cresida Tueres

started Greenwich as a small over-the-counter pizza store in Greenhills.

Milagros, Clarita, and Doris Leelin

 started Goldilocks at a 70-sq-m building space in Makati.

Joe Magsaysay

 left school to bust tables, wash plates, and work on the cash register at a fast food chain. In a few years, he became a manager, handling five stores. With his background and skills in store management, Magsaysay’s friends asked him to handle Potato Corner,

Asiang Reyes

tarted The Aristocrat as a mobile canteen in Luneta, serving sandwiches filled with adobo and other Filipino viands.

The Biggest Challenges Faced by the Entrepreneurs Journey

1. Money

2. The Menace of Multitasking

3. Standing Out From the Crowd

4. Few Resources

5. Sensible Scaling

Article XII Section 1

highlights the role of private enterprises in supporting equitable distribution of income and wealth, sustaining production of goods and services and expanding productivity, therefore raising the quality of life.

Development and Competitiveness

Enterprise development in the context of competitiveness not only entails the ability to produce products that can be accepted globally but also the level of support given to enterprises to help them produce, innovate, and gain market access. If the challenges remain unresolved, gaps in enterprise development have the potential to thwart the country’s competitiveness and ability to effectively function within global production networks.

Access to credit

An enterprise survey conducted by the Universal Access to Competitiveness and Trade (U-ACT) in 2008 revealed that access to capital and financing are two of the most problematic issues for enterprises, primarily MSMEs. 

Internationalization and global production networks

Taking advantage of liberalized trading environments is an emerging challenge for Philippine enterprises. This is compounded by the reality of limited opportunities for productivity and innovation. Enterprises need to be supported by strong social and physical infrastructure, which include among others, labor productivity, laboratories, business incubators, business planning, marketing and branding, and conformance to international standards. All these should be linked to the supply chain while at the same time economic clusters found in local economies need to be developed to allow specialization and product complementarity. 

Role of enterprise networks

In the Philippines, apart from institutions like chambers of commerce and industry clubs, entrepreneurship advocacy is mainstreamed by the creation of enterprise networks like the Philippine Center for Entrepreneurship (PCE). PCE’s concrete goal is to spawn the creation of so-called “Go Negosyo Communities” everywhere. These are communities where the academic, business and government sectors are drawn into a triangle of almost seamless collaboration. In such an ecosystem, there is constant networking, mentoring and cooperation among professors, entrepreneurs, industry experts and venture capitalists, with the government providing support through a viable policy infrastructure. Every “Go Negosyo” community is distinguished by its ability to produce a continuous stream of start-up ventures.

The Entrepreneurship Paradigm

Entrepreneurship is more than just an economic term — it is a way of thinking. Creating jobs, empowering people, and giving individuals access to better lives for themselves and their children is a wonderful gift. Today, it has become a dynamic, developing part of the economy promoting inclusive growth.