Entrepreneurship Approaches & the Philippine Context

• Entrepreneurship is now being considered an important life skill, not just a way to launch new businesses.
• It's about having the right mindset and skills to identify and act on opportunities.
• You don't need to start a business to think like an entrepreneur.

Entrepreneurship Views

• There are two main ways to approach entrepreneurship: predictive and creation.
• The predictive approach sees entrepreneurship as a linear process with predictable steps and outcomes.
  • Entrepreneurs identify goals and seek resources to achieve them.
  • This works best when there's enough information for decision-making.
  • Well-established companies often use this approach because they have clear goals, problems, dependable information,San Miguel Corporation and PLDT are examples of companies that use a predictive approach.
• The creation approach views entrepreneurship as a mindset that requires practice, used when the future is uncertain.
  • Goals are defined based on available resources.
  • Action is taken despite limited resources, often seen in small businesses.
  • Creation is vital over prediction early on. Habi Footwear is an example

Entrepreneurship in the Philippines

• Entrepreneurship viewed as a solution to poverty, job creation, wealth creation and empowerment.
• The 1987 Constitution recognizes entrepreneurship as key for economic growth.
• The government supports entrepreneurship through trade and investment via the Philippine Development Plan (PDP)
• The Philippine Chamber of Commerce and Industry advocates for entrepreneurship. PCE created the "Go Negosyo Communities”.
• Entrepreneurship is being integrated into school curricula.

Essential Skills in Entrepreneurship

• Entrepreneurs using the creation approach learn through action and manage uncertainty by developing five skills.
• The Skill of Play involves imagination, exploring opportunities, and innovation.
• The Skill of Experimentation means acting to learn, structuring learning, and making action.
• The Skill of Empathy includes understanding others' perspectives and building meaningful relationships.
• The Skill of Creativity comprises being open-minded and discovering/creating opportunities.
• The Skill of Reflection involves several methods for reflection:
  • Narrative: Describing what happened.
  • Emotional: Understanding the feelings involved.
  • Perceptive: Considering insights and feedback.
  • Analytical: Rationalizing skills learned.
  • Evaluative: Assessing what went well or badly.
  • Critical: Considering the role played and lessons learned.

Truths About Entrepreneurship

• There are no shortcuts to entrepreneurship
• There is no formula for success and entrepreneurs must understand that it is a hard commitment
• Entrepreneurship goes beyond startups, including companies, franchises, and non-profit organizations.
• Entrepreneurs don't need exceptional personality qualities, but there's a focus on how they think and act.
• Entrepreneurship can be taught, but requires a set of skills improved through practice.
• Entrepreneurs are not just risk-takers but make calculated decisions.
• Entrepreneurs thrive in partnerships, learning from others and working with consumers, investors, and support groups.
• Entrepreneurs focus more on doing than planning, gathering data through action and forming solid networks.
• Entrepreneurship is a life skill that is useful in every human's life offering a way of thinking and the ability of problem-solving and adapting
• These life skills of an entreprenuer include:
  • Resilience: Deals with setbacks
  • Agility: Responds speedility to change
  • Negotiating: Establishing rapport for success
  • Problem Solving: Creating solutions
  • Relationship Building: Connecting with stakeholders
  • Mindfulness: Disconnecting from pressure

Types of Entrepreneurship

• Intrapreneurship encourages high-risk, high-reward concepts within large organizations like Google (Paul Buchheit of Gmail)
• Entrepreneurs Inside produce things of value in any organization (government, non-profit, etc.) with resistance from management to novel ideas.
• Buying a Franchise involves an entrepreneur buying a license using a well-known brand (7-11, Pizza Hut, etc.) from an existing business
• Buying a Small Business involves buying out the existing owner with more upfront costs.
• Social Entrepreneurship applies innovative solutions to community-based problems such as environmental issues.
• Bayani Brew* is a good example
• Family Business is owned and managed by family members over generations. ShoeMart, Metrobank are examples
• Serial Entrepreneurs constantly create new businesses. Oprah Winfrey is an example who only focus on the start of the buisness .

Entrepreneurship as a Method

• Entrepreneurship shifted from viewing of a process to a method to manage confusion
• “The Entrepreneurial Method by Professor Saras Sarasvathy, is one concept that stands out, describing a logic of thinking to new ventures
• The entrepreneurial method consists of five effectual principles based on effectuation theory
  • Bird in Hand: Creating solutions using available resources, not just focusing on goals. Socorro C. Ramos of National Bookstore is the example
  • Affordable Loss: Limiting risk and investing only what one can afford to lose. Mariano Que of Mercury Drug is an example
  • Crazy Quilt: Forming partnerships to gain opportunities and reduce uncertainty. *Jollibee Foods Corporation is the example
  • Lemonade: Seeing new opportunities in mistakes and surprises. Dr. Cecilio Pedro of Aluminum Containers, Inc is the example
  • Pilot in The Plane: Focusing on controllable entrepreneurial activities. Corazon D. Ong of CDO Foods is the example

Components of the Entrepreneurship Method

• Identify Desired Impact: Pursue beyond the bounds of himself with curiosity and drive
• Begin with Means at Hand: To accomplish immediate action
• Describe the Idea Today: Combine with means to fully describe the idea
• Estimate Affordable Loss: Instead of estimating risk, entrepreneurs think about the things they are willing to lose
• Reflect and Be Honest: Determine if to quit or sustain the venture
• Take Small Action: Small steps and affordable loss is estimated
• Network and Enjoin Others in the Journey: Collaboration and co-creation
• Build and Learn from What Has Been Learned: Evaluate performance to embrace failures

Managerial vs. Entrepreneurial Thinking:

• Managerial thinking applies during certainty and uses data for decision-making.

  • Manage and Mitigate risk
  • Safeguard inventions and insights
  • Avoid failing
  • Work within the confines of the current environment
  • Increase bottom line

• Entrepreneurial thinking identifies opportunities.

  • Evaluate and embrace risk
  • Exchange ideas and share feelings
  • Fail fast and try again -Think in terms of possiblities
  • Create Value and make a difference

• Entrepreneurship is a mindset and a practice that requires deliberate practice to have the experience people spend lots of time repeating to be experts. Malcolm Gladwell “In Outliers: The Story of Success. Bill Gates, Microsoft co-founder started his access to a computer laboratory since he was in Grade 8th

Explore entrepreneurial approaches suited for scarce resources and immediate action. Understand the importance of creation over prediction in early business phases. Learn why the Philippines views entrepreneurship as a solution to poverty and its constitutional support for economic growth.