Entrepreneurial Mind

·       Entrepreneurs seeks opportunities, take risk beyond their security, and have the drive to push an idea to reality.

·       Enterprise or enterprising is used as an “attitude to life, an attitude of exploring, developing, leading and taking initiatives.”

·       Enterprise is identifying, developing, and bringing vision to life, be it an innovative idea or a better way of understanding.

·       Enterprise means “marked by imagination, initiative, and readiness to undertake new projects.”

·       Entrepreneurial means “willing to take risks and create more value.”

 Entrepreneurs make three (3) indisp ensable contributions to the economy:

1.)    Entrepreneurs create new businesses. The goods and services offered by the entrepreneurs can produce a cascading effect by stimulating related industries or sectors supporting the new venture to further economic development.

·       Example:

Sarah, an entrepreneur, starts a sustainable bamboo furniture company in a small town. Her business:

1.       Creates jobs for local craftspeople and office staff

Cascading Effect

2.       Offers eco-friendly furniture to consumers

·       Cascading Effects:

1.       Local bamboo farmers increase production to meet demand.

2.       Shipping companies see more business transporting raw materials and finished products.

3.       Marketing firms gain a new client, boosting their revenue.

4.       Local restaurants benefit from increased foot traffic from Sarah's employees and business visitors.

5.       The town gains recognition as a hub for sustainable manufacturing, attracting more eco-conscious businesses and tourists.

2.)    Entrepreneurs contributing greatly to national development. Entrepreneurial ventures generate new wealth. Existing businesses may remain confined to the scope of existing markets and may hit a entrepreneurs enable new markets to be developed and new wealth to be created.    

·       Example:

Amina, an entrepreneur in a developing country, creates a mobile app that connects small-scale farmers directly with urban consumers. Her venture:

1.       Generates new wealth by creating a previously non-existent market

2.       Improves farmers' incomes by eliminating middlemen

3.       Provides urban consumers with fresher, cheaper produce

·       This entrepreneurial venture contributes to national development:

1.       It creates a new market that did not exist before, generating new economic activity

2.       The app's success attracts investment in rural internet infrastructure

3.       Increased farmer profits lead to reinvestment in agricultural technology

4.       Urban consumers save money, which they can spend in other sectors of the economy

5.       The innovative model inspires other entrepreneurs to create similar platforms for different industries

3.)    Entrepreneurs create social change. Through their unique offerings of new goods and services, entrepreneurs break away from tradition and indirectly support freedom by reducing dependence on obsolete systems and technologies. This results in an improved quality of life, morale, and economic freedom.

·       Example:

Raj, an entrepreneur in a rural area, develops an affordable, portable water purification device. His innovation:

1.       Provides clean drinking water to communities lacking access to safe water sources

2.       Reduces reliance on bottled water or traditional boiling methods

·       This entrepreneurial venture creates social change:

1.       Health improvements: Reduced waterborne diseases in the community

2.       Time savings: People spend less time collecting and treating water

3.       Environmental impact: Decreased plastic waste from water bottles

4.       Education: More children, especially girls, attend school instead of fetching water

5.       Economic freedom: Families save money previously spent on medical treatments or bottled water

·       Raj's invention breaks away from traditional water treatment methods, reducing dependence on:

1.       Centralized water systems that may not reach remote areas

2.       Time-consuming and fuel-intensive boiling processes

3.       Expensive and environmentally harmful bottled water

·       The social change resulting from this innovation includes:

1.       Improved quality of life through better health and more free time

2.       Higher morale as communities become more self-reliant

3.       Increased economic freedom as families can redirect savings to other needs or investments

Entrepreneurship on Spectrum

·       Entrepreneurs on starting business from scratch. Many entrepreneurs start their business with a vision. Starting business from scratch enables the entrepreneur to be productive. The entrepreneur can do what s/he wants and needs to do effectively, and the results will be up to his/her standards.

·       Entrepreneurs on starting a family business.  Entrepreneurs choose to start a family business due to its long-term orientation. Most family businesses aim to maximize the well-being of current and future generations from a transgenerational perspective. Thus, they focus on the potential for growth and investment projects. This orientation results from the willingness of family members to pass down their heirs a healthy and competitive firm.

·       Entrepreneurs on entering a partnership. A partnership is an excellent way for entrepreneurs to leverage existing resources between parties. Having partnership can allocate multiple cash, which will benefit business during the start-up and growth phases. The investment risk will be spread among others, which can protect the entrepreneur if the business does not work out as planned. By having a partner may lead to an expanded customer base, increasing earning potential. Partners can also be an additional source of creativity during brainstorming and problem-solving.

·       Entrepreneurs on buying an existing business. The idea is that buying an existing business is less risky than starting from the scratch, however expensive it is. In buying a business, the entrepreneur takes over an operation already generating cash flow and profits. There is already an established customer base, reputation, and employees familiar with all aspects of the business. The business already has a procedures, systems, and policies. In addition, it is often easier to get financing to buy an existing business because bankers and investors generally feel more comfortable buying an existing business than to start a new one.

Entrepreneurship and Sustainable Development

In Industrial Age System point of view: the most important is the economy, with society and environment much smaller domains within. This perspective prioritizes economic growth above all else, viewing society and the environment as less significant, contained within the larger domain of the economy. This mindset often led to environmental degradation and social inequalities, as the pursuit of economic progress sometimes came at the expense of other important values. 

In Modern Age System point of view: the most important is the environment; within that is society. The economy, industries, and individual businesses are just a small scale within society and environment.

Triple Bottom Line (TBL)

The phrase “Triple Bottom Line” was coined in 1994 by John Elkington, the founder of a British consultancy called Sustainability. He argued that companies should prepare 3 different bottom lines.

·       One is the traditional measure of a corporate profit – the “bottom line” of the profit and loss account.

·       Second is the bottom line of a company “people account” – a measure in some shape or form of how socially responsible an organization throughout its operation.

·       Third bottom line is the “planet” account – measure of its environmental responsibility.

TBL provides a framework for measuring the business’s performance and the organization’s success using the economic, social, and environmental lines. It also called sustainability. 

·     Profit refers to the real economic value created by the business and enjoyed by the host society. It is the income and expenditures, taxes, business climate factors, employment, and business diversity factors, as well as the business’s economic and impact on society.

·    People refer to a business’s impact on employees and people outside the business (community). A business that promotes triple bottom line addresses the well-being of and benefits the people in which the business operates.

·    Planet refers to environmental stewardship. Entrepreneurs enhance the natural order and minimize their ecological impact in a wide variety of ways that are cost-effective and easy to implement and adopt. It can be done through a small effort such as managing energy consumption, employing eco-friendly materials, managing water consumption, and minimizing waste in landfills.