Introduction to Entrepreneurship

Introduction to Entrepreneurship

• Entrepreneurship can be challenging with unexpected obstacles
• In the past, starting a business was difficult due to lack of knowledge and resources where many entrepreneurs failed
• As of 2023, there are thousands or millions of entrepreneurs worldwide
• Entrepreneurship has grown because of the increase of available opportunities

The Role and Significance of Entrepreneurship in Society

• "Entrepreneur" originates from the French word "entreprendre", meaning "to undertake"
• Middle Ages: Traveling merchants offered goods/services in exchange for payment
• Merchants/artisans were known as "tradespeople" and specialized in specific crafts, playing an essential role in the economy
• Modern entrepreneurship involves creating, organizing, and operating a new business to generate profit while taking on financial risk

Who are the Entrepreneurs?

• Entrepreneurs take on risks/challenges of starting businesses to introduce new goods, services for profit
• Entrepreneurs generate innovative ideas to captivate a market's interest
• Business ownership advantages: flexible hours, independent decisions, autonomy
• Success requires curiosity, new knowledge, exploring the unknown
• Entrepreneurial journey involves risk, hard work, sacrifices, setbacks

Importance of Entrepreneurship in Society

• Entrepreneurship is a driving force for societal development and improvement
• Entrepreneurs influence the world and shape the future through innovative ideas, goods, and jobs
• Entrepreneurs create employment opportunities

Economic Development

• Entrepreneurial businesses drive economic growth by expanding operations
• They invest in technology/equipment
• They strengthen the workforce
• Contribute to a country's overall prosperity

Technological Advancement

• Entrepreneurs introduce new ideas/products that change lives
• Innovations range from technologies to efficient business models
• The tech industry and the Internet have created jobs and transformed communication and access to information

Market Dynamics

• New competition expands consumer options
• New competition results in better goods/services at lower costs
• Existing businesses are encouraged to enhance offerings to remain competitive

Socio-Cultural Changes

• Entrepreneurship revolutionizes how societal challenges are approached/solved
• Entrepreneurs create innovative business solutions to tackle social/cultural challenges

Types of Entrepreneurship

• Agripreneurship involves production/selling of agricultural goods/inputs
• Most profitable agribusiness ideas: crop cultivation, aquaculture, animal health, agro-bio products, biotechnical service, energy-saving/ecological agro-production systems
• Edita Aguinaldo Dacuycuy: farmer-scientist and innovator from Ilocos Region
• She established the first organic dragon fruit farm in the Northern Philippines
• Refmad-V Enterprise, her business, received awards for Business Excellence and Best Business Company at the 2015 Golden Globe Annual Awards

Buyer Entrepreneurship

• Buyer Entrepreneurship involves individuals with capital acquiring businesses or merging with smaller ones
• Acquired companies have established brand, customer base, and approved revenue-generating activities
• Tony Tan Caktiong: has expertise in acquiring brands like Greenwich, Chowking, Red Ribbon, and Mang Inasal
• He also owns Jollibee

Ecopreneurship

• Ecopreneurship involves creating a "green" business with opportunities to save the Earth, while making a profit
• Jamico Yco Jamlang: director of The Bamboo Company (social enterprise)
• He aims to solves issues by promoting bamboo production and embracing eco-friendly living

Imitator Entrepreneurship

• Imitator Entrepreneurship creates a business by copying or adapting a successful concept
• Bin Lin: co-founder/vice president of Xiaomi, which copied Apple's iPhone design
• China's smartphone company is now third-largest globally

Intrapreneurship

• Intrapreneurship is being an entrepreneur within a company
• It involves taking risks, innovation, and developing new ideas for the company
• Paul Buchheit: created web-based email with search for Google
• Buchheit's Gmail project has evolved into a component of Google's product portfolio

Large Business Entrepreneurship

• Large Business Entrepreneurship involves developing new market offerings to remain competitive
• Ernest Cua: owns Globe Telecom, leveraging its brand/customer accounts to deliver financial services

Scalable Startup Entrepreneurship

• Scalable Startup Entrepreneurship launches an enterprise intending to quickly expand and transform into a lucrative company
• Roland Navarro de Ros: Founder/President of Kumu, inviting creators to the platform
• Kumu has over seven million registered users, two million active users and does ~40,000 live streams daily

Small Business Entrepreneurship

• Small Business Entrepreneurship starts a smaller scale business
• It is easy to manage because it requires minimal employees
• Nericel Bonus: a micropreneur who live sold thrift clothes during the COVID-19 pandemic

Social Entrepreneurship

• Social Entrepreneurship innovates solutions to address pressing social issues like poverty, education, and healthcare
• Bryan Benitez McClelland: Environmental Consultant/President of Bambike
• Bambike manufactures handmade bamboo bicycles, alleviates poverty, and advocates going green
• GawadKalinga provides programs such as scholarships, teacher sponsorship, and skills training

Technopreneurship

• Technopreneurship solves complex business problems, bringing uniqueness and novelty by combining skills and technology
• Diosdado Banatao: developed the first 10-Mbit Ethernet CMOS with silicone coupler data-link control and transceiver chip and more technology

Small, Medium, and Micro-sized Enterprises (SMME)

• SMMEs are businesses engaged in industry, agribusiness, and services
• SMMEs include single proprietorships, cooperatives, partnerships, or corporations
• Total assets are inclusive of loans but exclusive of land
• Micro: Less than P50,000
• Cottage: P50,001 to P500,000
• Small: P500,001 to P5,000,000
• Medium: P5,000,001 to P20,000,000

Forms of Business Ownership

• Entrepreneurs must determine the ownership structure to adopt
• Understanding business ownership, rights, and responsibilities is essential
• Understanding ownership structures and legal frameworks is crucial for business success

Sole Proprietorship

• Easily created and terminated
• Ownership and rewards are in one person
• It is flexible to changes
• Has minimum regulation/taxation
• Unlimited personal liability
• Limitations in capital
• It ends when the owner dies or becomes seriously ill
• Has limited skills/capabilities

Partnership

• Involves pooling of resources
• Has ability to obtain capital
• Provides incentive for each partner
• Has limited regulation/taxation
• Brings unlimited liability
• Termination can happen
• There is difficulty reconciling personal/business interests
• Has problems in share liquidation

Corporation

• Has limited liability for stockholders
• It is a legal entity protected by law
• Ownership is transferable
• Is easier to obtain capital
• It offers employee benefits
• Owners have right to vote for a significant decision
• Has legal formality/regulations
• Is costly and time-consuming
• Has separate taxation
• Owners have potential loss of control

Cooperative

• Is open and has voluntary membership
• Has democratic control by members
• Education is mandated
• There is cooperation among members
• There are direct benefits to members/community
• Has tax privileges
• Has limited interest in shares
• There is inequality of profit distribution
• Pro-poor bias might deviate from the profit orientation

Entrepreneurial Competencies and Motivation

• Entrepreneurship is more accessible and feasible with confidence, dedication, and commitment to personal/professional growth
• This growth is aided by science/technology
• Possessing entrepreneurial skills, correlating risks/rewards, and devising strategies is important

Leadership

• Entrepreneurs display their passion/vision/mission in every interaction

Other Core Competencies Include

• Articulate: Facilitate communication
• Sociable: Align approach with employee's characteristics
• Adaptable: Be decisive, passionate, adaptable, willing to change
• Collaborative: Connect with managers, stakeholders as equals
• Multifaceted: Be adaptable, multi-skilled, manage all aspects
• Resilient: Embrace failure, seek motivation, view setbacks as chances to gain wisdom
• Proactive: Take initiative to address problems
• Innovative: Develop new market offerings
• Risk-taker: Mitigate potential risks
• Creative: Explore novel concepts
• Passion: Constant source of motivation

Motivation Theory

• Behavior is driven by a purpose
• Entrepreneurial motivation is the drive to engage in entrepreneurial activities
• This includes taking risks, identifying opportunities, and pursuing innovation

Extrinsic Motivation

• Extrinsic motivation offers rewards to complete a task
• This type of motivation fades when the reward is absent/not at par with their interest

Intrinsic Motivation

• People do the task at hand because are passionate about the business
• Achievement motive: motivation to succeed, achieve greatness, conquer difficulties
• Power motive: desire for control, influence, ability to impact others and change circumstances
• Affiliation motive: act of pursuing, upholding, or revitalizing an emotional connection