Origin And Nature Of Entrepreneurship Lecture Notes PDF

Origin and Nature of Entrepreneurship ELAINE BERNARDO, MBA,LPT,CTP Faculty INSTITUTE OF BUSINESS AND MANAGEMENT School of Tourism & Hospitality Management  ENTREPRENEURS ARE DOERS, NOT THINKERS FACT OR BLUFF? ENTREPRENEURS ARE BORN,...

Origin and Nature of Entrepreneurship ELAINE BERNARDO, MBA,LPT,CTP Faculty INSTITUTE OF BUSINESS AND MANAGEMENT School of Tourism & Hospitality Management  ENTREPRENEURS ARE DOERS, NOT THINKERS FACT OR BLUFF? ENTREPRENEURS ARE BORN, NOT MADE  MYTH 1: ENTREPRENEURS ARE DOERS, NOT THINKERS Entrepreneurs are actually doers at the same time that they are thinkers. We need entrepreneurs who lead us with clear vision and serve as role models in achieving the company’s aims and MYTHS purposes. OF ENTREPRENEURSHIP MYTH 2: ENTREPRENEURS ARE BORN, NOT MADE Entrepreneurs are either born or made. There are innate traits that entrepreneurs are born with. Likewise, there are models and processes that need to be studied and knowledge that are to be acquired; hence, the purpose why entrepreneurship is taught.  ENTREPRENEURS ARE ALWAYS INVENTORS. FACT OR BLUFF? ENTREPRENEURS ARE ACADEMIC AND SOCIAL MISFITS  MYTH 3: ENTREPRENEURS ARE ALWAYS INVENTORS. Not all inventors end as entrepreneurs; not all entrepreneurs are inventors. Entrepreneurs are innovators, MYTHS though OF ENTREPRENEURSHIP MYTH 4: ENTREPRENEURS ARE ACADEMIC AND SOCIAL MISFITS Not all drop outs are successful entrepreneurs; not all successful entrepreneurs are drop outs. Likewise, entrepreneurs are recognized in and by society due to their enormous contributions. Today, entrepreneurs are considered as heroes –socially, economically and academically.  ENTREPRENEURS MUST FIT THE “PROFILE” FACT OR BLUFF? ALL ENTREPRENEURS NEED IS MONEY  MYTH 5: ENTREPRENEURS MUST FIT THE “PROFILE” There is no such profile of an entrepreneur. Entrepreneurs are as varied as they come. MYTHS OF ENTREPRENEURS MYTH 6: ALL ENTREPRENEURS NEED IS MONEY HIP We need ideas to start with an entrepreneurial undertaking, not only money. There are other factors contributing to the failure of a business, such as poor financial planning, managerial incompetence, poor investments and poor planning.  ALL ENTREPRENEURS NEED IS LUCK FACT OR BLUFF? IGNORANCE IS BLISS FOR ENTREPRENEURS  MYTH 7: ALL ENTREPRENEURS NEED IS LUCK You need hard work to be successful. Actually, luck happens with preparation, determination, desire, knowledge and innovativeness. MYTHS OF ENTREPRENEURSHIP MYTH 8: IGNORANCE IS BLISS FOR ENTREPRENEURS You need the right information/data when making decisions.  ENTREPRENEURS SEEK SUCCESS BUT EXPERIENCE HIGH FAILURE RATES FACT OR BLUFF? ENTREPRENEURS ARE EXTREME RISK TAKERS  MYTH 9: ENTREPRENEURS SEEK SUCCESS BUT EXPERIENCE HIGH FAILURE RATES Not all experience failure. Some succeed after some failure, and some fail because they are yet learning how to succeed. MYTHS OF ENTREPRENEURSHIP MYTH 10: ENTREPRENEURS ARE EXTREME RISK TAKERS Entrepreneurs are calculated or moderate risk takers; neither low risk taker nor high risk taker (gambler). As a moderate risk taker, the entrepreneur weigh chances of failure or success before taking action. ORIGIN AND NATURE OF ENTREPRENEURSHIP An entrepreneur is an inventor and developer of ideas, change agent, creative, persistent, and a class of his own having his own value system. There is no controversy that the word entrepreneur is of French origin. from the word Entreprendre, which simply means "to undertake“  Evolution of Entrepreneurship There are indications that the term entrepreneur or entrepreneurship originated in Europe sometime in the Middle Ages. The concept of Entrepreneurship has gone through an evolution or process that commenced with providing service in a feudalistic society. From the literature available, it was reported that early entrepreneurs provided men and materials needed by feudal lords to wage war against their enemies.  Evolution of Entrepreneurship there are also other terms an entrepreneur has, that it can also be translated to mean "betweentaker" or "go-between". The twentieth century saw a number of scholars focusing their research and studies on the concept of entrepreneurship.  Contemporary Views on Entrepreneurship Lloyd Shefsky, in his book entitled, Entrepreneurs are Made Not Born, defined entrepreneur – entre means to enter – pre means before; and – neur means nerve center (the central point of activity) Together, these elements imply that an entrepreneur is someone who steps in early to create or organize something new, often starting businesses or projects that lead to new opportunities and innovations.  Contemporary Views on Entrepreneurship Karl Vesper describes an entrepreneur in a broader perspective by postulating that entrepreneurship is now a concern of various professions. – to an economist, an entrepreneur is one who brings resources, labor, materials, and other assets into combinations that make their value greater than before, and also one who introduces changes, innovation, and a new order.  Contemporary Views on Entrepreneurship Professor Robert Nelson of the University of Illinois defines entrepreneur as "a person who is able to look at the environment, identify opportunities to improve the environment, marshal resources, and implement action to maximize those opportunities."  Contemporary Views on Entrepreneurship Author Albert Shapero has opined that in all of the definitions of entrepreneurship, there is an agreement about a kind of behavior that includes the following: initiative taking the organizing and recognizing of social/ economic mechanisms to turn resources and situations to practical account the acceptance of risks and failure  Entrepreneurship is a process and approach As an approach, the entrepreneur considers the business opportunity as a chance to solve the problem rather than solving the problem itself. Albert Shapero pointed out that entrepreneurship is a dynamic process or innovation and new-venture creation through five major dimensions- individuals, organization, environment, process, and institutions.  Contemporary Views on Entrepreneurship Dr. Nestor. A. Orcullo, Jr., in his book Contemporary Entrepreneurship mentioned William Bygrave about his recent studies on the last decade of the 20th century as the entrepreneurial age. His idea of entrepreneurship revolves around the notion that: First, an entrepreneur is someone who perceives an opportunity creates an organization to pursue it. Second, the entrepreneurial process involves all the functions, activities, actions associated with perceiving opportunities and creating organizations to pursue them.  PERSONAL VALUES WHAT DOES HE DISCOVERY MEAN? “Your vision will become Living without perusing what is in clear only when you can look your heart is just like living in a dream—somebody else’s dream. To into your own heart. be awake is to look inside your Who looks outside, dreams; heart. who looks inside, awakes”. When you look inside your heart, you will discover a lot about yourself—who you are, what you want, what you believe in. CARL JUNG Hence, when you look inside your heart, your vision becomes clear.  Personal values are the foundation of your vision. These values describe your core as a person. Moreover, values give you clarity and help you build up your self- awareness. Your highest values will serve as a guide WHY HAVING A VISION in creating better decisions SIGNIFICANT? and results leading to a more balanced life. Vision gives you a sense of purpose & direction. Your vision will help you define your short and long-term goals, and guide Implication to entrepreneurship. To create a successful enterprise, the decisions you make along the way. you need to have clear view of Having a vision will direct you to a sound, your inner self. The personal intelligent decision to take. discovery is a conscious route to self discernment. Understanding one’s self is a critical step in creating a meaningful enterprise. Thus, find time for your personal values discovery.  SELF DISCOVERY GROWTH PROBLEM DISCOVERY DISCOVERY BUSINESS MODEL SOLUTION DISCOVERY DISCOVERY ENTREPRENEURIAL JOURNEY  standardizing the current programs of schools on REPUBLIC ACT NO entrepreneursh ip and financial 10679 literacy, Youth Entrepreneurship Act (2015) providing government to promote the sustained development of assistance and training programs young Filipinos in the areas of finance and to students entrepreneurship. Through this Act, the government intends to change the mindset of Filipinos – from wanting to be employees developing to being business owners mentoring and coaching programs for young entrepreneur s  MICRO VIEW ENTREPRENEURIAL SCHOOLS OF THOUGHT perspectives on what factors influence one to entertain entrepreneurial thoughts; factors that relate to the success or failure of entrepreneurial ventures. 2 viewpoints the macro and the micro views. MACRO VIEW THE ENVIRONMENTAL SCHOOL OF THOUGHT Considers the external factors MACRO VIEW OF that influence a potential ENTREPRENEURSHIP entrepreneur’s lifestyle. THE FINANCIAL SCHOOL OF includes external factors that THOUGHT are beyond the control of the Based on the capital-seeking entrepreneur, but could affect process — the search for seed him/her. and growth capital. The availability of funds needed for a potential business venture may influence one to be an entrepreneur. THE DISPLACEMENT SCHOOL OF THOUGHT Alienation drives entrepreneurial § Political displacement. pursuits. Displacement focuses § Cultural displacement. on the negative factors. Frustrations will drive you to § Economic displacement. your entrepreneurial pursuits.  THE ENTREPRENEURIAL TRAIT SCHOOL OF THOUGHT Focuses on identifying traits common to successful entrepreneurs. Believing that entrepreneurs have traits common to them and that if you have these traits, you could be a successful entrepreneur MICRO VIEW OF THE VENTURE OPPORTUNITY SCHOOL OF THOUGHT ENTREPRENEURSHIP Focuses on the opportunity aspect of venture development. The more idea sources and resources that are available for The micro view of the development of business concepts and their implementation to take advantage of entrepreneurship venture opportunities, the more people are examines the factors that motivated to be entrepreneurs. are specific to entrepreneurship. THE STRATEGIC FORMULATION SCHOOL OF THOUGHT Emphasizes the planning process in successful venture management and development. Involves establishing a business venture with all its internal factors aligned with each other and with the external forces as the entrepreneur pursues the venture’s vision and mission, its dream and purpose.  KEY PERSONAL ATTRIBUTES FORMULA OF A S T RO NG M A NA G E R I A L SUCCESSFUL CO M P E T E N C IE S ENTREPRENEUR GOOD TECHNICAL SKILLS SUCCESSFUL ENTREPRENEUR  The Challenge to Entrepreneurs According to Dr. Orcullo, Jr., is where the real challenge for the entrepreneuristic persons and organizations in the so-called "borderless world" is both a challenge and opportunity. The resurgence and constantly improving information technology sector is a development to watch, and its benefits is for entrepreneurs to grab and exploit.  Socio-economic benefits from Entrepreneurship a. Promotes self-help and unemployment. b. Mobilizes capital c. Provides taxes to the economy. d. Empower individuals e. Enhance national identity and pride f. Enhance competitive consciousness g. Improves quality of life h. Enhances equitable distribution of income and wealth  Social entrepreneurship CATEGORIES OF Corporate entrepreneurship ENTREPRENEURSHIP Ecopreneurship Technopreneurship  CATEGORIES OF ENTREPRENEURSHIP It is also referred to as intrapreneurship. This is entrepreneurship WITHIN existing organizations or companies. It is observed when the company organizes its structure to instigate innovation within the company. Corporate entrepreneurs are managers Corporate or employees who lead the company in entrepreneurship NEW directions. Companies that encourage an intrapreneurial environment motivate their employees to take initiative, commitment, and risk-taking.  CATEGORIES OF ENTREPRENEURSHIP This involves doing business with the use of technology in transforming ideas into products; use of new technology in the enhancement of the existing operations. It is said that the first use of term technopreneur Technopreneurship was in 1987.  CATEGORIES OF ENTREPRENEURSHIP Ecopreneurship involves the use of entrepreneurship principles in crafting businesses that solve environmental problems or that operate sustainably. (Wikipedia) An ecopreneur is an entrepreneur whose business efforts are Ecopreneurship not only driven by profit, but also by a concern for the environment (Schuyler, 1998).  CATEGORIES OF ENTREPRENEURSHIP This is a new form of entrepreneurship, which focuses on solving social problems through innovation and risk taking; venturing into business in pursuit of a social mission. This is different from the concept of corporate social responsibility. Social entrepreneurship KEY POINTS: IT IS ABOUT CHANGE AND DEVELOPMENT. It is about Entrepreneurship CONSTRUCTION and is a MINDSET. VALUE CREATION. It is about INNOVATION and CREATIVITY It embraces RISK and UNCERTAINTY  Bruce R. and R. Duane Ireland. (2006). Entrepreneurship Successfully Launching New Ventures. New Jersey, Pearson Education, Inc. Dess, G., Lumpkin, G.T., and Eisner, A.B. (2010). Strategic Management: creating Competitive Advantages. McGraw-Hill. Diaz, P., Fajardo, H., (2015). Entrepreneurship Study and Practice. Small Enterprise and REFERENCES Research Development Foundation, Manila. Kuratko D. (2017). Entrepreneurship Theory, Process, Practice. Cengage Learning. 10th edition, 2017 Kuratko D. Corporate Entrepreneurship Small Enterprise and Research Development Foundation and UPISSI. (2007). Introduction to Entrepreneurship. revised edition, Manila 2007. Small Enterprise and Research Development Foundation and UPISSI. (2013). Windows to Entrepreneurship A teaching Guide. Manila, 2013. Pontifical Council Thank You!