Entrepreneurship: Old vs. New Views

• Entrepreneurship is more than starting a business; it's a valuable life skill that helps handle uncertainty and seize opportunities.
• You don't have to run a business to think and act like an entrepreneur

Entrepreneurship Views: Old vs. New

• Old View: Entrepreneurship is a predictive, step-by-step process that sets goals, gathers resources, and bases decisions on data.
  • Large companies often use this approach.
  • Success is not guaranteed, even with planning.
• New View: This focuses on entrepreneurship as a mindset and skill used in uncertain situations.
  • It emphasizes taking action with available resources, even in uncertainty.
  • Small businesses like Habi Footwear use this approach.
• Creation is more important than prediction in the early stages of a business due to the lack of market data. Entrepreneurs should balance prediction and creation, using prediction when sufficient information is available.

Prediction (Traditional Approach)

• A step-by-step process where entrepreneurs set goals, gather resources, and make decisions based on data.
  • Big companies use this because they have clear objectives and reliable information.
  • Careful planning does not guarantee success.
• Example: A restaurant reacts to customers shifting to online food delivery by setting up an online ordering system after losing customers.

Creation (Modern Approach)

• Entrepreneurs start with available resources and take action, adapting as they learn.
  • Small businesses and startups often begin this way.
• Example: Before launching a new product, an entrepreneur conducts market research and surveys customer preferences to create a product that matches customer needs.

Entrepreneurship in the Philippines

• High poverty rates exist despite 6% economic growth.
• Entrepreneurship is a solution to poverty via job creation, wealth, and social empowerment.
• The Philippine Constitution (1987) emphasizes entrepreneurship for economic growth.
• The government aims to address poverty with the Philippine Development Plan (PDP), focusing on trade, investment, and competitiveness.
• Entrepreneurship has evolved with globalization, moving beyond supporting production factors to creating opportunities locally and internationally.
• Go Negosyo Communities are created by the Philippine Chamber of Commerce and Industry and the government to support entrepreneurship through collaboration.
• Entrepreneurship is taught in schools, including the Bachelor in Entrepreneurship program at the college level.
• Entrepreneurship is viewed as a mindset for innovating and pursuing opportunities.

Skills Needed for entrepreneurship

• The skill of play involves using imagination and creativity to enhance creativity and problem-solving.
• The ability to explore opportunities, network, and collaborate exists in the skill of play.
• The Skill of Experimentation is how entrepreneurs learn by taking action, testing ideas, gathering real-time data, and evaluating products or services.
• The Skill of Empathy involves understanding others’ feelings, situations, and needs, helping relate to stakeholders and develop relationships.

Reflection

• The Skill of Creativity involves discovering opportunities and solving problems by using effort and available resources to turn ideas into ventures and overcome fear and uncertainty.
• The Skill of Reflection involves processing experiences, learning from them, and gaining new perspectives, which helps entrepreneurs assess their actions, adjust strategies, and grow personally and professionally.
• Reflection improves decision-making and understanding during the entrepreneurial journey. There are several ways to do reflection, namely:
• Narrative describes what happened, what was said, and the people involved.
• Emotional centers on feelings and their management during a situation.
• Critical considers the role played, the approach applied, potential improvements, lessons, queries, and anticipation of the possible result.
• Evaluative concerns what went well or badly and whether the experience was useful.
• Analytical is rationalizing skills and understanding obtained from an experience and relating it to previously heard information.
• Perceptive focuses on one's insights and feedback and how views, needs, or inclinations affected the experience.

Entrepreneurship

• Entrepreneurship is not solely for start-ups.
  • A start-up is a small, new company funded by a few individuals working to find a viable business model.
  • Entrepreneurs can operate in established companies, franchises, and non-profit organizations.
• Entrepreneurs do not have exceptional personality qualities.
• No scientific evidence suggests entrepreneurs have superior personality traits, however, they are considered achievers, influencers, and risk-takers.
• Entrepreneurial thinking focuses on how entrepreneurs think and act. Anyone can develop an entrepreneurial mindset by changing how they think.
• Entrepreneurship can be taught yet entails practice
• Entrepreneurship education is thought in many universities as a linear process, however it is undpredictable.
• Skills can be learned and developed to adapt to changing situations. Entrepreneurs are not always big risk takers, they evaluate potential losses and minimize future risks.

Working Together

• Entrepreneurs work in partnership more than they compete.
• A community is important for supporting like-minded individuals, networking with other entrepreneurs, customers, investors, and bringing fresh ideas and innovation.
• Entrepreneurs are more on doing than planning

Acting vs Planning

• Focus action over having a business plan
• Engage with customers, get feedback, and adjust as you go.
• Investors value the ability to act, problem-solve, and learn from feedback.

Entrepreneurship is Truly a Life Skill

• It contains thinking methodically, identifying challenges, and solving goals.

Life Skills Needed For Entrepreneurship

• Resilience: Be able to to be boucing back from setbacks and refocusing after failure.
• Agility: Respond quickly to change, seizing new opportunities, and staying competitive.
• Negotiating: Build and maintain good relationships for business success.
• Problem-Solving: Find solutions to various challenges, from technical to financial issues.

Relationship Building

• Develop strong connections with suppliers, investors, andemployees.

Mental Health

• Mindfulness: Manage pressure and maintaining mental clarity through techniques like breathing and meditation.

Types of Entrepreneuship:

• Intrapreneurship: employees devlop high risk high reward ideas
• Entrepreneurs Inside: Applying intrapreneurship but applies to all organizations fromn gov to coopratives.

Franchise and SBusiness

• Franchise: a license from an estbalished brand with a proven system.
• A smaller business with lower risk and an existing base.

Social Entrepreneurship

• Focus on economic sustainability

Effectuation Theory

• Build innovative plans from now and adapt.

Key Principals

• Build partnerships and unexpected challenges and use controllable factors to your advantage:
• Having a desired impact is crucial
• Entrepreneurs must have strong deep motivation, not just financial gain.
• Begin with the resources at hands and assess abilities.
• They must ask who ar they, what do they know, and who do they know.

Creativity

• Start with finding calculated steps after loss.
• Be honest, network, evaluate, and adapt.

Thinking

• Managerial Thinking: best for companies that are established and structured.
• Entrepreneurial Thinking: best for uncertainty and is used for new opportunities.

Misndset

• A belief about abilities that one has and the two types of mindsets.

• Fixed and Growth

• Entrepreneurship can be challenging and rewarding with 6 characteristics:

  • Curiosity, Commitment, Optimism, Flexibility, Ownership and Leadership.