Entrepreneurship: Predictive vs Creation Approach

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Entrepreneurship Views

• Older/Predictive approach considers entrepreneurship a linear process with predictable results through structured paths like business planning and forecasting.
• Recent/Creation approach sees entrepreneurship as a mindset and method adaptable to unpredictable futures, focusing on innovation and responding to changing conditions.

Entrepreneurship in the Philippines

• The Philippines faces challenges due to a high poverty rate compared to other Asian countries.
• The Philippine government views entrepreneurship as a key solution to address poverty issues.
• The 1987 Philippine Constitution recognizes entrepreneurship as essential for economic growth.
• Entrepreneurship lessons are integrated into the school curriculum to foster a culture of enterprise for future competitive entrepreneurs.

Essential Entrepreneurial Skills

• The Skill of Play (Creativity and Innovation) involves using imagination for exploration, exposing one's mind to opportunities and potentials, which leads to innovation.
• The Skill of Experimentation (Learning from trial and error) encourages entrepreneurs to act to learn by attempting, gaining insights, and applying that learning to future situations.
• The Skill of Empathy (Understanding customer needs) is being sympathetic to the feelings, situations, purposes, opinions, and wants of other people.
• The Skill of Creativity (Developing unique solutions) means being open-minded and able to create, discover opportunities, and resolve problems.
• The Skill of Reflection (Learning from experience) helps make sense of previously discussed skills. It organizes the other four skills.

Several Ways to do Reflection

• Narrative reflection is describing events, statements, and people involved.
• Emotional reflection centers on feelings and their management during a situation.
• Perceptive reflection focuses on insights and feedback related to how different viewpoints impact the experience.
• Critical reflection considers the role played in a situation, the approach used, potential future actions, and anticipated results.
• Analytical reflection identifies skills and understanding gained from an experience, noting both successes and failures.
• Evaluative reflection assesses what went well, what went poorly, and the overall usefulness of the experience.

Truths About Entrepreneurship

• Entrepreneurship is not solely for startups; it exists in big businesses too.
• A business does not remain a startup because it can develop and progress into a bigger entity.
• Entrepreneurs do not have exceptional personality qualities; anyone can learn entrepreneurship.
• Entrepreneurship can be taught, but it requires practice and learning by doing through continuous skill improvement.
• Entrepreneurs minimize risks instead of taking extreme gambles
• Entrepreneurship involves more partnership and collaboration than competition, and entrepreneurs learn from the shared experiences of others.
• Entrepreneurs focus more on execution than planning.
• While many believe a business plan is crucial for success, entrepreneurs prioritize action.
• Entrepreneurship is a life skill that is useful beyond just business.

Life Skills for Entrepreneurs

• Resilience (Overcoming failures) is the ability to deal with setbacks, bounce back, and refocus after failure.
• Agility (Adapting to changes) involves responding quickly and decisively to adjust to a dynamic changing environment.
• Negotiating (Building strong partnerships) involves setting boundaries and ensuring a good rapport for business success.
• Problem Solving (Finding creative solutions) involves creating solutions for issues ranging from minor technical difficulties to major financial headaches.
• Relationship building (Networking and Collaboration) involves positive interactions between the entrepreneur and their supplier, investor, or employee.
• Mindfulness (Managing stress and staying focused) involves disconnecting from pressure and focusing on the present through techniques like breathing and meditation.

Types of Entrepreneurship

• Intrapreneurship (Innovating inside a company) encourages employees to discover high-risk, high-reward concepts with the backing of a large corporation.
• Entrepreneurs Inside (Innovating in non-business settings) function within organizations like government agencies, non-profits, or religious entities, whether large or small.
• Buying a Franchise (Using an established brand) involves an entrepreneur (franchisee) purchasing a license from a franchisor to operate under their brand.
• Buying a Small Business (Taking over an existing business) involves purchasing the existing business and managing its operations.
• Social Entrepreneurship (Solving community problems) is pursuing innovative applications that solve community-based issues.
• Family Business (Running a business with family) involves a business owned and managed by family members, handed down through generations.
• Serial Entrepreneurs (Constantly starting new businesses) consistently come up with fresh ideas and launch new ventures.

Key Entrepreneur Examples and Types

• Elon Musk (Tesla, SpaceX, Neuralink) is a Serial Entrepreneur who launches new innovative businesses.
• Jeff Bezos (Amazon) is an Entrepreneur Inside who transformed an online bookstore into a global e-commerce empire.
• Steve Jobs (Apple) demonstrated Intrapreneurship by innovating within Apple to create revolutionary products like the iPhone.
• Mark Zuckerberg (Facebook/Meta) is an Entrepreneur Inside who founded a company in a university setting and grew it into a global business.
• Ray Kroc (McDonald's) used Buying a Franchise to turn a small burger stand into the world's largest fast-food franchise.
• Oprah Winfrey (OWN Network, Harpo Productions) is a Social Entrepreneur who uses media and business to empower communities and support social causes.
• Tony Tan Caktiong (Jollibee) represents a Family Business that started as an ice cream parlor and grew into a successful fast-food chain.
• Vicki Belo (Belo Medical Group) is a Small Business Owner who founded and manages her own expanding beauty and dermatology clinic.
• Blake Mycoskie (TOMS Shoes) is a Social Entrepreneur who created a business that donates a pair of shoes for every pair sold.

The Entrepreneurial Method

• "The Entrepreneurial Method" by Profesors Saras Sarasvathi consists of five effectual principles based on the idea that entrepreneurship means the future is unpredictable yet controllable:

Five Principles Behind Effectuation

• Bird in Hand (Use what you already have): Creating solutions using available resources rather than predefined goals.
• Affordable Loss (Only risk what you can afford to lose): Investing only what the entrepreneur is willing and able to lose.
• Crazy Quilt (Build strong partnerships): Entering into new partnerships that bring new opportunities while reducing uncertainties.
• Lemonade (Turn unexpected problems into opportunities): Viewing bad surprises and unexpected turns as new possibilities.
• Pilot in the Plane (Focus on what you can control): Focusing on entrepreneurial activities within one's control.

Conclusion

• Entrepreneurial thinking is valuable for solving problems, creating opportunities, and building a better future.