Entrepreneurship Basics

Entrepreneurship

• Entrepreneurship is a proactive process of developing a business venture to make a profit, involving seeking opportunities, establishing and opening a business, and assessing its risk and rewards.
• It occurs when a person or entrepreneur identifies an opportunity to make a profit.

The Entrepreneur

• An entrepreneur is a person responsible for setting up a business or an enterprise, with initiative, skill for innovation, and a desire for high achievements.
• They are catalytic agents of change, working for the good of people, and creating wealth, employment opportunities, and growth in other sectors.

The Enterprise

• An enterprise is a business organization that provides goods and services, creates jobs, contributes to national income, exports, and contributes to overall economic development.

The Origins of Entrepreneurship

• The roots of entrepreneurship can be traced to capitalism, which is an economic, political, and social system that has its roots in the desire of private citizens to produce goods and services that the public need.
• The word "entrepreneur" has a French origin, derived from the words "entre" (meaning "between") and "prendre" (meaning "to take").

Entrepreneurship Models

• Henry Sy: one of the 15 billionaires in the Philippines, the richest man in the Philippines, and the founder of SM Supermalls.
• Julie Gandionco: the founder of Julie's Bakeshop, a simple housewife and mother from Cebu.
• Tony Tan Caktiong: the founder of Jollibee Foods Corporation, a global fast food chain, and known as the "Jollibee Man."

Entrepreneurial Characteristics

• Passion for business
• Tenacity despite failure
• Confidence
• Self-determination
• Management of risk
• Seeing changes and opportunities
• Tolerance for ambiguity
• Initiative and need for achievement
• Eye for detail
• Creativity
• Seeing the big picture
• Having several motivating factors
• Goal setting
• Flexibility

Clusters

• The 10 personal Entrepreneurial Characteristics (PEC's) that lead to success can be grouped into 3 areas:
  • Achievement Cluster
  • Planning Cluster
  • Power Cluster

The Achievement Cluster

• Consists of entrepreneurial character traits directly related to the entrepreneur's desire to be an achiever in the field of entrepreneurship.
• Successful entrepreneurs constantly set and achieve goals.

The Planning Cluster

• A set of characteristics of successful entrepreneurs that support the achievement cluster.
• Goal setting: setting clear, specific, and well-defined short-and-long term goals and objectives guided by the SMART principle.
• Information-seeking: making decisions based on specific and relevant economic, financial, and industry data.