Introduction to Entrepreneurship Course

Course Orientation

• The course will discuss the characteristics of an entrepreneurial mindset and how aspiring entrepreneurs should think.
• The module will also cover the resources entrepreneurs use for idea transformation and knowledge pursuit, essential for successful entrepreneurship.

Classroom Rules

• Attendance is mandatory; five absences will lead to dropping out.
• Punctuality is crucial; a 15-minute grace period applies.
• Three tardiness instances equal one absence.
• One-person speaking policy: raise your hand to speak.

Requirements

• Case Analysis
• Quizzes
• Major Examinations
• Business Proposal

Grading System

• Major Examinations: 40% (Midterm and Finals)
• Class Standing: 60%
• Quizzes: 20%
• Recitation: 25%
• Discussion/Paper Outputs/Seatworks: 15%

Self Introduction

• State your name, age, and residence.
• Briefly introduce yourself.

Lesson 1: Introduction to Entrepreneurship

• This is an introductory lesson about entrepreneurship.

Why Study Entrepreneurship?

• The Philippine government aims to change the mindset of Filipinos from wanting to be employees to being business owners through initiatives like the Youth Entrepreneurship Act of 2015.
• This act aims at promoting the sustained development of young Filipino entrepreneurs in finance and other relevant areas.
• Initiatives include standardizing current programs, financial literacy, government assistance and training, mentoring/coaching programs for young entrepreneurs, and the creation of incubation/creative spaces in schools.

Wealth Creation, Management, and Its Value

• Wealth creation involves building a stable source of tangible (cars, houses, machinery) or intangible (goodwill, copyrights, patents, trademarks) assets.
• Employees are resources, not assets, because companies don't own them.
• Mr. Robert Kiyosaki argues that anything generating profit is an asset, while other items are liabilities.

What is Entrepreneurship?

• "Entrepreneur" originates from the French word "entreprendre," meaning "to undertake."
• Richard Cantillon, a French economist, coined this term.
• Entrepreneurship involves creating or extracting value, often viewed as change encompassing economic and other aspects.
• An entrepreneur designs new ideas and business processes relevant to market needs and personal passions.

Theories of Entrepreneurship

• Various thinkers have proposed theories and models of entrepreneurial development.

Innovation Theory

• Joseph A. Schumpeter proposed this theory, suggesting entrepreneurs are born with the desire to establish new industries or businesses, taking pleasure in creativity and gaining experience in skills.

Need for Achievement Theory

• David McClelland proposed this theory, arguing that a desire for high achievement and reaching excellence drives entrepreneurial tendencies.

Behavior Theory

• John Kunkel propounded this theory, focusing on the influence of past and existing economic/social aspirations on entrepreneurial development in a society.

Five Dimensions of Entrepreneurial Development.

• Need for high achievement.
• Self-control, not luck, drives entrepreneurs.
• Anticipating returns and assets drive entrepreneurs.
• Entrepreneurs are prepared to handle uncertainties/ambiguitites.
• Entrepreneurship behavior may include haste, feeling pressure, and hyperactivity/aggressiveness.

Theories of Entrepreneurship (Cont)

• Entrepreneurial Group Theory (Frank W. Young): Entrepreneurial activities occur through groups to grow.
• Social Change Theory (Max Weber): Ethical values in a society affect the start of entrepreneurship.
• Cultural Theory (B. F. Hauslin): Entrepreneurial development occurs where social procedures are unstable and employment alternatives exist, supporting personality development of entrepreneurs.

Cultural Value Theory

• Kroken emphasized the importance of culture, expectations, and approval related to entrepreneurship.

Socio-Cultural Value Theory

• Stokes focused on the impact of socio-cultural values during economic transition periods on entrepreneurial development.

Economic Theory

• Pepuek and Hassis emphasized the role of physiological motivation for economic gains (increased real income) in every society, impacting entrepreneurial drives.

Entrepreneurial Disposition Theory

• T.V.S. Rao's theory highlights the importance of courageous entrepreneurial disposition for development.

Entrepreneurial Disposition Theory(Cont)

• Venkat Rao’s concept of Entrepreneurial Stage Theory describes the process through stages such as simulation, ability identification, development and expansion, and promotion/follow-up.

Myths of Entrepreneurship

• Entrepreneurs are born, not made.
• A good idea is the sole need.
• Starting a business guarantees freedom.
• Launching a company quickly leads to wealth.
• Only money motivates employees.
• Business success or failure is pre-determined.
• All responsibility falls on the entrepreneur.
• A secret "silver bullet" exists for success.
• Businesses need an MBA leader (misconception).
• Quitting is for losers (misconception).

Types of Entrepreneurial Ventures

• Survival Ventures: provide basic subsistence for the entrepreneur and family.
• Lifestyle Ventures: provide relatively stable income for owners, with a maintenance approach, no growth focus.
• Managed Growth Ventures: seek stable growth over time (occasional new products, entry into new markets).

Essential Characteristics of Entrepreneurs

• Good listening skills.
• Positive attitude.
• Collaborative/helping nature.
• Sincere and authentic.
• Follows up (proactive communication).
• Trustworthiness.
• Approachable.

The Entrepreneurial Process

• Innovation stage: idea generation, market opportunity analysis, market research.
• Triggering event stage: gestation, business motivations.
• Implementation stage: infancy to business launch and growth.
• Growth stage: business maximizing profits & growth.

Importance of Ethics in Key Areas of Business

• Integrity in business.
• Labor practices.
• Clientele relationship.
• Environmental awareness.
• Ethical standards in all business dealings.

This course provides an overview of entrepreneurship, focusing on the entrepreneurial mindset and the resources necessary for successful idea transformation. Students will engage in case analysis, quizzes, major examinations, and business proposal development. Understanding classroom policies and grading will set the foundation for effective participation.