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Entrepreneur or Entrepreneurship

originated in Europe sometime in the Middle Ages.

Entrepreneur

originated from the French word Entreprendre.

Entreprendre

which means to undertake.

ENTREPRENEURSHIP

is the ability of the individual to determine and come up with the proper combination of the resources available in his environment and transform this into an output of either goods or services and obtain a fair profit at the price the entrepreneur sets.

Jean Baptiste Say (1800)

Entrepreneurship involves shifting economic resources from lower to higher productivity and greater yield.

Carl Menger (1871)

Entrepreneurship involves obtaining information, calculation, an act of will, and supervision.

Joseph Schumpeter (1910)

Entrepreneurship is the finding and promoting of new combinations of productive factors.

Harvey Liebenstein (1970)

Entrepreneurship is a reduction of organizational efficiency.

Israel Kirzner (1975)

Entrepreneurship is the identification of market arbitrage opportunities.

Albert Shapiro (1975)

Entrepreneurship involves initiative taking, organizing, recognizing social mechanisms, and accepting risks and failures.

Karl Vesper (1980)

Entrepreneurship is the dynamic process of creating incremental wealth.

W. Ed McMullan and Wayne A. Long (1990)

Entrepreneurship is the building of new growth organizations.

Howard Stevenson (1992)

Entrepreneurship is the pursuit of opportunity beyond the resources currently under one’s control.

Jeffrey Timmons (1994)

Entrepreneurship is the ability to create and build a vision from practically nothing.

Peter Drucker (1998)

Entrepreneurship is the process of starting one’s own new and small business, involving innovation and new venture creation through four major dimensions.

Robert Hisrisch (2001)

Entrepreneurship involves the creation process, requires devotion of time and effort, assumes financial, psychic, and social risks, and receives rewards of monetary and personal satisfaction and independence.

APPROACH

The entrepreneur considers the opportunity to solve the problem rather than solving the problem itself.

PROCESS

Entrepreneurship is a dynamic process of innovation and new- venture creation

individuals,organizations, environment, process and intuitions

FIVE MAJOR DIMENSIONS

“Borderless World”

globalized trading system

“CYBER SPACE OR INFORMATION HIGHWAY”

The resurgence and constantly improving information technology sector is a development to watch and its benefit for entrepreneurs to grab and exploit.

entrepreneur

is someone who jumps off a cliff and builds a plane on the way down.

ENTREPRENEURIAL OPPORTUNITY, ENTREPRENEURIAL ACTION

TWO IMPORTANT FEATURES FOR ENTREPRENEURS

ENTREPRENEURIAL OPPORTUNITY

Situations in which new goods, services, raw materials and organising methods can be introduced and sold at greater than their cost of production.

ENTREPRENEURIAL ACTION

Action through the creation of new products/ processes and/or the entry into new markets, which may occur through a newly created organization or within an established organization.

ENTREPRENEUR’S PRIOR KNOWLEDGE, ENTREPRENEUR’S MOTIVATION/WILLINGNESS TO BEAR UNCERTAINTY

ENTREPRENEUR’S PRIOR KNOWLEDGE

can detect changes in external environment.

ENTREPRENEUR’S MOTIVATION/WILLINGNESS TO BEAR UNCERTAINTY

can allocate further attention to process information.

ENTREPRENEURIAL THINKING

Individuals’ mental processes of overcoming ignorance to decide whether a signal represents an opportunity for someone and/or reducing doubt

THINK STRUCTURALLY,BRICOLAGE,EFFECTUATION,COGNITIVE ADAPTABILITY

HOW ENTREPRENEURS THINK?

COMPREHENSIVE QUESTIONS,CONNECTION TASK, STRATEGIC TASK,REFLACTION TASK

WHAT DO YOU NEED TO ACHIEVE COGNITIVE ADAPTABILITY???

Comprehension questions

Understanding the nature of the environment before advertising an entrepreneurial challenge.

Connection tasks

Stimulates thinking the current situation in terms of similarities and differences in situation previously faced and solved.

Strategic tasks

Stimulates thoughts about which strategies are appropriate for solving the problems and why, or pursuing the opportunity and how.

Reflection Tasks

Stimulates thinking about their understanding and feelings as they progress through the entrepreneurial process.

FROM BUSINESS FAILURE, GAIN MOTIVATION TO TRY AGAIN

ENTREPNEURS NEED TO LEARN

INNOVATION

is depicted as the key to economic development.

Ordinary,Technological,Breakthrough

3 types of innovation

Ordinary

New products with little technological change.

Technological

New products with some technological advancement.

Breakthrough

New products with significant technological change.

Entrepreneurial Intentions

The motivational factors that influence individuals to pursue entrepreneurial outcomes.

Entrepreneurial self-efficacy

The conviction that one can successfully execute the entrepreneurial process.

Perceived desirability

The degree to which an individual has a favorable or unfavorable evaluation of the potential entrepreneurial outcomes.

EDUCATION, AGE,WORK HISTORY

ENTREPRENEUR'S BACKGROUND & CHARACTERISTICS

Role model

Whose example an entrepreneur aspires to and copy.

Moral support system

Psychological support comes from family, friends.

Professional support network

Advise & counselling from a mentor, business associates, personal affiliation.

Moral support system,Professional support network

ROLE MODELS CAN BE A SOURCE OF TWO SUPPORT SYSTEMS

1.SEEKING OPPORTUNITIES 2.TAKING RISKS BEYOND SECURITY3.TENACITY TO PUSH AN IDEA THROUGH TO REALITY

THE CHARACTERISTICS OF ENTREPRENEURS

ENTREPRENEURIAL MINDSET

can be shown in and out of an organization (non-profit or profit/business or non-business activities) bringing out creative ideas and innovations.

ENTREPRENEURIAL MINDSET

It has revolutionized business and social venture’s way of conducting.

ENTERPRISE

The process of identifying, developing and bring a vision to life.

ENTERPRISE

An innovative idea, a better way of doing something.

ENTERPRISE

Applies also to political and social decisions, business ventures.

ENTERPRISING

Marked by imagination, initiative and readiness to undertake new projects.

ENTREPRENEURIAL

Willing to take risks in order to create value.

ENTREPRENEURSHIP

Symbol of business determination and achievement.

ENTREPRENEURS

Pioneers of business successes.

Sense of opportunity, Drive to innovate, Capacity for accomplishment

Standard of free enterprise

ENTREPRENEURS CREATE NEW BUSINESSES,ENTREPRENEURS CONTRIBUTE GREATLY TO NATIONAL DEVELOPMENT,ENTREPRENEURS CREATE SOCIAL CHANGE

ENTREPRENEURS THREE INDISPENSABLE CONTRIBUTIONS TO THE ECONOMY

ENTREPRENEURS ON STARTING BUSINESS FROM SCRATCH,ENTREPRENEURS ON STARTING A FAMILY BUSINESS,ENTREPRENEURS ON ENTERING A PARTNERSHIP,ENTREPRENEURS ON BUYING AN EXISTING BUSINESS

ENTREPRENEURSHIP SPECTRUM

INDUSTRIAL AGE SYSTEM

Many still see the world from this view.Largest and most important circle is economy.Smaller domains are the society and environment within the economy.

MODERN AGE SYSTEM

Biggest circle is the environment, within it is the human society which are

TRIPLE BOTTOM LINE

Also referred to as the practical framework of sustainability

TRIPLE BOTTOM LINE

This aims to measure financial, social and environmental performances of a corporation over a period of time.

TRIPLE BOTTOM LINE

Producing TBL is taking account of the full cost involved in doing business

TRIPLE BOTTOM LINE

Provides a framework for measuring performance and success of the organization.

TRIPLE BOTTOM LINE

Puts a consistent and balanced focus.

PROFIT AND LOSS ACCOUNT ,COMPANY’S PEOPLE ACCOUNT,COMPANY’S PLANET ACCOUNT

THREE DIFFERENT BOTTOM LINES

PROFIT AND LOSS ACCOUNT

traditional measure of corporate outfit.

COMPANY’S PEOPLE ACCOUNT

measure in some shape or form of how socially responsible an organization has been throughout its operation.

COMPANY’S PLANET ACCOUNT

measure of how environmentally responsible it has been.

PROFIT

Real economic value created by the business and enjoyed by the society.

PEOPLE

Impact that a business has on people within business and outside of it.

PLANET

Enhances the natural order and minimizes environmental impact which is cost-effective and easy to implement and adapt.

ECONOMY

the proper use and distribution of resources to avoid waste.

ECONOMIC DEVELOPMENT

is the process focusing on both qualitative and quantitative growth of the economy.

Economic growth

is the increase in goods & Services produced by an economy or nation, considered for a specific period of time.

Keynesian Theory (John Maynard Keynes)

intensive projects to generate employment

Ricardian Theory (David Ricardo)

land or agriculture

Kaldor Theory (Nicholas Kaldor)

Technology

Innovation Theory (Joseph Schumpeter)

Entrepreneurs or innovators

WEALTH CREATION AND SHARING,CREATE JOBS,BALANCED REGIONAL DEVELOPMENT,GDP AND PER CAPITA INCOME,STANDARD OF LIVING,EXPORTS,COMMUNITY DEVELOPMENT

WHAT ARE THE ROLES OF ENTREPRENEURS TO ECONOMIC DEVELOPMENT?

ENTREPRENEURSHIP

Refers to the economic activity of a person who starts, manages and assumes the risk of a business enterprise.

ENTREPRENEUR

the person who undertakes entrepreneurial activity

LAND (Natural Resources),LABOR (Human resources),CAPITAL (Financial Resources)

ENTREPRENEURS TASKS

INNOVATION

defined as the production of a new method support, procedure, custom, device among others.

1. The prestart-up-stage2. The start-up-stage3. The early growth stages.4. The late growth stages

FOUR MAJOR STAGES FROM NEW VENTURE TO LONG TERM ENTERPRISE

1. MARKET SHARE2. TOTAL ASSETS

SMALL BUSINESS IS DEFINED BY USING ANY OF THE 2 APPROACHES

MARKET SHARE APPROACH

small business may be defined as one which is independently of owned and operated and which is not dominant in its field of operation.

TOTAL ASSET APPROACH

as one having total assets that fall within a certain bracket, if a firm must have total assets valued at above 1.5 million to 15 million to be considered small business.

1. Manufacturing 2. service3. wholesaling4. retailing5. general construction firms

TYPES OF SMALL BUSINESS

BUSINESS SERVICES,PERSONAL SERVICES,REPAIR SERVICES,ENTERTAINMENT AND RECREATION,EDUCATION SERVICES

Small business is classified into the following

BUSINESS SERVICES

those that provide service to other business.

PERSONAL SERVICES

those that provide service to the person.

REPAIR SERVICES

those that provide repair services to owners of various machinery and appliances.

ENTERTAINMENT AND RECREATION

includes movie houses, resorts, billiard pool centers

EDUCATION SERVICES

include Montessori schools for children, high school, correspondence schools, among others.

1. independent management2. small capital requirement Mostly local operation

CHARACTERISTICS OF SMALL BUSINESS