L1Q1: Entrepreneurship
Relevance of Entrepreneuship
- Development of managerial capabilities - one of the benefits an entrepreneur gets is to develop his managerial skill
- Creation of organizations - which means that because of entrepreneurship, many organizations will exist
- Improving standard of living - means that entrepreneurship can lift up the economic status
- Means of economic development - not only the life of the entrepreneur is improved but also the society where the business is located
Concept of entrepreneurship
- entreprende - to undertake; French word where entrepreneurship is derived from
- entrepreneur - the one who creates the enterprise
- entrepreneurship - the process of creating an enterprise
What is entrepreneurship?
- Entrepreneurship - the appropriation and management of human physical and financial resources for the purpose of creating, implementing, and developing solutions that meet the needs of the individual or society * Entrepreneurship is also the act of creating a business or businesses while bearing all the risks with the hopes of making a profit * Entrepreneurship - is also a very important component of a capitalist economy; it thrives in an economic system that supports innovation and hard work
- Economic development - a scheme aimed at improving the living standards of the nation’s citizenry * To achieve ED, the ff. elements are necessary:
1. Human resources - labor supply, education, discipline, motivation 2. Natural resources - land, materials, fuel, climate 3. Capital formation - machines, factories, roads 4. Technology - science, engineering, management, entrepreneurship
Entrepreneurship in a modern business
- Entrepreneurship transforms the world by solving big problems like bringing social change or creating an innovative product that challenges the status of how we live our lives on a daily basis
What is an entrepreneur?
- Entrepreneur - a person who undertakes entrepreneurial activities. They:
1. Identify an economic need 2. Considers offering a business solution 3. Proceeds to assemble the resources required 4. Assumes the risk of either succeeding or playing
| Entrepreneur’s Concern | Problem at Hand | Entrepreneur’s Action |
|---|---|---|
| Identifying an economic need | High-income families are not satisfied w/ the services provided by high schools in the area | Establish a high standard school for high school students |
| Assembling resources | Resources must be made available | Acquire funds, hire people in construct buildings, and the like |
| Assuming the risk | Venture must be made | Prepare project study, advertise, maintain good relationship with employees, and customers among them |
What are the tasks of an entrepreneur?
- Provide products and services for customers and producers
- Provide employment
- Provision of payment of taxes
- Provide for supplier’s products and services
- Provide training facilities for future entrepreneurs
What are the common traits of a successful entrepreneur?
- Risk-takers
- Good listeners and learners
- Original thinker
- Feel competent and capable
- Set high goals and enjoy working toward them
- Take responsibility for their actions
- Patience
- Self-discipline
What are the core competencies of entrepreneurship
- Core competencies - an entrepreneurship’s traits or personal attributes rather than physical assets or financial resources
- There is NO definite profile on who can become a successful entrepreneur
- Entrepreneurs come in various ages, gender, race, and social class; they even differ in education and experience
- However, research suggests that the most successful entrepreneurs share certain personal attributes
EMPRETEC
EMPRETEC Programme of UNCTAD - the promotion of entrepreneurship and MSMEs to facilitate sustainable development and inclusive growth has identifies 10 key areas competencies related entrepreneurial development
Emprendonderes and tecnologia
Personal Entrepreneurial Competencies (PECs)
- First Cluster: Achieving Behaviors - traits that are directly related to the entrepreneur’s desire to be an achiever in the field of entrepreneurship; does not settle for mediocrity but instead aspires for quality.
Traits under Achieving Behaviors
- An Opportunity seeker and initiative
- Persistent
- Committed
- Efficient and quality-oriented
- A risk taker
- Second Cluster: Planning Behaviors - traits that support the achieving behavior; a plan serves as a blueprint to be undertaken by the entrepreneur.
Traits under Planning Behaviors
- A goal-setter
- An information seeker
- Systematic in planning and monitoring
- Third Cluster: Power Behaviors - traits that reflect the degree of the interpersonal relations maintained by successful entrepreneurs in the community; ability to maintain the highest degree of interrelationship in the business community and influence others over his/her line of reasoning.
Traits under Power Behaviors
- A persuasive and positive networker
- Independent and self-confident
Self-Employed - working for oneself as a freelancer or the owner of a business rather than for an employer
Wage Employment - people who are employed to earn income through wages or salaries given by their employers
\