Module 1 BSOA 3 Entrepreneurship (Camarines Sur Polytechnic Colleges)

Republic of the Philippines CAMARINES SUR POLYTECHNIC COLLEGES Nabua, Camarines Sur College of Tourism, Hospitality and Business Management Module in OAC 1113- Entrepreneurship...

Republic of the Philippines CAMARINES SUR POLYTECHNIC COLLEGES Nabua, Camarines Sur College of Tourism, Hospitality and Business Management Module in OAC 1113- Entrepreneurship 1st Semester, SY 2024-2025 I.Lesson Chapter 1- Introduction to Entrepreneurship II. Content Summary The content of entrepreneurship is very old. The development of a civilization is largely an outcome of its trade, commerce and industrialization. The infrastructure is developed and employment opportunities are created through these core economic activities. Entrepreneurs play crucial role in this economic development. They are responsible for arranging the capital, exploring natural resources, creating markets and to carry on trade. It is appropriate to say that it is the entrepreneurial contribution that is responsible for prosperity or poverty of a country. The term entrepreneur however has become common since last two decades. In a layman’s language, anyone who has his own business is an entrepreneur. Whereas an entrepreneur is the one who builds his own business by organizing, operating and bearing the risk of a business venture. He identifies the need of a specific product or service in the society, generates resources and makes a business plan to materialize the process of meeting that need. Entrepreneurs thus are vision driven; mostly self-motivated individuals who take great risk to attain their goals. They generate employment opportunities in the society. Many ancillary units also develop in order to provide the support to activities of the entrepreneur. Thus, economic development of a country depends on its entrepreneurs to a large extent. The concept of entrepreneurship revolves around the vision and its implementation by an entrepreneur. Entrepreneurship is a creative and innovative response to the environment. It is a skill that is characterized by unique traits including imagination, ability to perceive the existing/future/latent needs of the society, ability to take calculated risk, assembling and utilizing resources to produce the requisite product/ service and offer it to the target market. Thus entrepreneurship includes the process of setting up a new business venture. III. Learning Outcomes At the end of this module, you will: 1. Understand the concept of entrepreneurship and explain the entrepreneurial action 2. Conduct self-assessment to determine entrepreneurial personal traits 3. Exhibit entrepreneurial characteristics and attitudes in problem solving/case study or simulation activities 4. Exhibit acceptable human relations skills in a diverse environment MELANY C. FEDERIS, MBM Assistant Professor IV Page 1 of 19 IV. Lecture Notes Topic 1- Definition of Entrepreneur There is no single accepted definition of term entrepreneur. Different thinkers have defined it in different ways. The French economist Cantillon, defines the entrepreneur, as an agent who purchases the means of production to manufacture saleable products. He takes a calculated risk as at the time of starting this (earlier nonexistent product in the market), he is not sure of market receptivity and hence returns for these products. Dewing associates entrepreneur with business promoter. He opined that this business promoter in reality transforms ideas into a profitable business. He also mentioned various qualities of an entrepreneur namely imagination, initiative, judgment and restraint. International Labor Organization describes that entrepreneur as the person having ability to see a potential business opportunity, visualize building business around it by assembling the necessary resources and managing actions carefully and shrewdly to ensure success. Casson describes entrepreneur as “someone who specializes in taking judgmental decisions about the co-ordination of scarce resources”. Danhof’s writes that an entrepreneur is a person who is involved in bringing change in the prevalent procedures of production while retaining the full control over his venture. He changes his formula of doing business as per the need of the market and performs three key functions: gathering important and relevant information, analysis and evaluation of this information with respect to returns in future and strategizing and implementing all these plans. Thus decision making and choosing the best alternative among available choices are the key characteristics of an entrepreneur. According to Say, the entrepreneur is responsible to combine the productive factors, by bringing them together. And this task of experimenting with new combination of productive factors is called “enterprise”. Harbinson describes an entrepreneur as an organization builder with the unique skill set that helps him to utilize the innovative ideas of different people to achieve best of the financial outcomes. Peter Drucker defines entrepreneur as the one who senses and responds to change and is eager to use it as an opportunity by applying innovation. Similarly, Frank Young defines entrepreneur as a change agent. Hagen proposes that an entrepreneur is an innovative person who tries to maximize financial benefits by problem solving. According to Akhouri, and entrepreneur senses potential opportunity, takes risks, mobilizes resources, applies innovativeness and is persistent in achieving these preset goals. According to Joseph Schumpeter, an entrepreneur is an innovator who brings economic development through new combinations of factors of production. Thus by going through above definitions, we can define entrepreneur as “a person who senses opportunities in the market environment, is not averse to change, takes risk, mobilizes the resources (human as well as production resources, organizes all functions, offers bundle of satisfaction to customers (in the form of a product or service) and makes profit out of this venture (enterprise)”. Page 2 of 42 Definition of Business What Is a Business? The term business refers to an organization or enterprising entity engaged in commercial, industrial, or professional activities. The purpose of a business is to organize some sort of economic production (of goods or services). Businesses can be for-profit entities or non-profit organizations fulfilling a charitable mission or furthering a social cause. Businesses range in scale and scope from sole proprietorships to large, international corporations. Business is also defined as any lawful economic activity that involves rendering of service effectively and efficiently in acquiring and utilizing funds. Business also refers to the efforts and activities undertaken by individuals to produce and sell goods and services for profit. Businesses often require business plans before operations begin. A business plan is a formal document that outlines the company's goals and objectives and lists the strategies and plans to achieve these goals and objectives. Business plans are essential when you want to borrow capital to begin operations. Determining the legal structure of the business is an important factor to consider, since business owners may need to secure permits and licenses and follow registration requirements to begin legal operations. Most businesses operate to generate a profit, commonly called for-profit. However, some businesses that have a goal to advance a certain cause without profit are referred to as not-for- profit or nonprofit. These entities may operate as charities, arts, culture, educational, and recreational enterprises, political and advocacy groups, or social services organizations. Business activities often include the sale and purchase of goods and services. Business activity can take place anywhere, whether that's in a physical storefront, online, or on a roadside. Anyone who conducts business activity with financial earnings must report this income to the Bureau of Internal Revenue (BIR). Page 3 of 42 Page 4 of 42 Definition of Entrepreneurship Page 5 of 42 Page 6 of 42 Page 7 of 42 Topic 2- The Entrepreneurial Mindset Page 8 of 42 Page 9 of 42 Page 10 of 42 Page 11 of 42 Page 12 of 42 Page 13 of 42 Page 14 of 42 Topic 3- The Cultural Diversity of Entrepreneurship Page 15 of 42 Page 16 of 42 Page 17 of 42 Page 18 of 42 Page 19 of 42 Page 20 of 42 Page 21 of 42 Topic 4- Characteristics of an Entrepreneur Self-assessment—evaluating your strengths and weaknesses—is an important part of becoming an entrepreneur. Self-assessment helps you maximize your strong points and strengthen your weaker ones. The key thing to remember is that everybody has strengths and weaknesses. It’s what you do with what you have that counts. Also, entrepreneurs who are self- aware are able to focus on hiring employees with characteristics that complement their own. Aptitudes and Attitudes An aptitude is a natural ability to do a particular type of work or activity well. For example, you may find math very easy, or you may naturally be good at sports. Aptitudes can sometimes be developed through hard work. An attitude is a way of viewing or thinking about something that affects how you feel about it. Entrepreneurs tend to be people with positive attitudes. Instead of seeing a situation as a problem, they look at it as an opportunity. This helps them find solutions more easily than people who think negatively. Think about your own experience. Positive thinking and talking tends to make you feel happier and have more energy. You feel motivated to take steps toward accomplishing your goals. In contrast, negative thinking and talking tends to make you feel less happy and reduce your energy. You will be much less likely to take action to solve a problem. Even though you didn’t get to choose which aptitudes you’d inherit, you do have the power to choose your attitude. An entrepreneur needs to have self-esteem. Entrepreneurs need to view themselves in a positive way. A positive attitude can make the difference between failure and success. Someone with a strong aptitude but a negative attitude will probably achieve less than someone who has less natural ability but a positive attitude. Throughout history, entrepreneurs have proved that thoughts have power. But only you can ultimately decide who you will become. Personal Characteristics No one is born with all the characteristics needed to be a successful entrepreneur. But if you keep a positive attitude and believe in yourself, you can develop many of them. In the following list, notice the personality traits you already possess. Then focus on the ones you think you need to develop.  Courage: A willingness to take risks in spite of possible losses.  Creativity: Inventing new ways of doing things; thinking outside the box.  Curiosity: The desire to learn and ask questions. Page 22 of 42   Desire to succeed: An entrepreneur has a strong desire to succeed in life. Their dreams are not just limited to achieving one single goal but they constantly work to achieve higher goals.  Determination: Refusing to quit in spite of obstacles.  Discipline: The ability to stay focused and follows a schedule to meet deadlines.  Empathy: Being sensitive to the thoughts and feelings of others.  Enthusiasm: Being passionate about something; the ability to see problems as opportunities.  Flexibility: The ability to adapt to new situations; a willingness to change.  Hardworking: At times they are workaholics. Work is worship for them. They put in continuous efforts to achieve success and know that there is no substitute for hard work  Honesty: A commitment to being truthful and sincere with others.  Knowledge: An entrepreneur has sound conceptual knowledge about all the technicalities of his business- be it technological, operational, financial or market dynamics.  Independence: An entrepreneur needs independence in work and decision-making. They don’t follow the rules of thumb but make their own rules and destiny  Leadership: An entrepreneur exhibits the qualities of leader. They are good planners, organizers, have good communication skills, are emphatic towards their employees, are good decision-makers, take initiatives to implement plans and are result-oriented.  Optimism: Entrepreneurs are highly optimistic about achieving their vision  Patience: Recognizing that most goals are not reached overnight.  Responsibility: Being accountable for your decisions and actions; not passing the buck.  Value addition: Entrepreneurs do not follow the conventional rule of thumb. They have a constant desire to introduce something new to the existing business. They create, innovate or even add value to the existing products/services and therefore, stand out in the market.  Vision: An entrepreneur has a dream and he visualizes the ways and means to achieve that dream. In doing so he visualizes market demands, socio-economic and the technological environment and then based on these dynamics, he visualizes a future for his business venture. Skills A skill is an ability that’s learned through training and practice. For example, you didn’t know how to tie a shoe when you were born. You learned this skill through practice and the help of adults. Some of the basic skills entrepreneurs need are:  Business Skills: Understanding how to create and manage a business.  Communication Skills: The ability to listen well, write well, and speak well.  Computer Skills: The ability to use technological tools effectively.  Decision-Making and Problem-Solving Skills: Knowing how to apply logic, information, and past experiences to new decisions and problems.  Mathematical Skills: Using math to create budgets, keep accurate records, and analyze financial statements.  Organizational Skills: The knack of keeping tasks and information in order; the ability to plan well and manage your time.  People Skills: The ability to persuade and motivate people; knowing both how to be a leader and work in a team. Page 23 of 42 Increasing Your Potential Don’t be discouraged from becoming an entrepreneur just because you don’t yet have all the traits and skills you will need. You can increase your business and entrepreneurial potential by focusing on six specific areas. Even if you never become an entrepreneur, paying attention to these areas will help you be more successful in life.  Business Knowledge Make a habit of reading magazine and newspaper articles on business topics. Use the Internet to research business subjects. Watch films or television programs about successful entrepreneurs. This can help you learn more about business. If you know someone who owns a business, discuss the business with that individual.  Financial Skills Strengthen your math skills by taking a course in accounting, personal finance, or investing. If math is a difficult subject, ask a teacher to spend a little extra time with you before or after school. Team up with a friend who is good at math. Play math games or do math homework together.  Career Exploration First, evaluate your strengths and weaknesses. Be as honest as you can about your characteristics without being too easy or too hard on yourself. Remember, nobody is perfect, but everyone has something to contribute to the world. Practice thinking and acting as if you already have the characteristics you want to develop. A positive attitude will keep you on the right track. Next, explore career areas that interest you. Include fields that match with aptitudes and skills you have or are developing. There are many books, magazines, and Internet sites on careers. Ask a career or guidance counselor at your school for research suggestions. Think about putting together a career portfolio that summarizes your achievements and lists your activities. Keep your résumé in your portfolio, along with any cover letters you’ve written and any letters of reference that you may have received. This way, everything related to your future career will be in one place. If you plan to go to college, your career portfolio would be an ideal location for keeping college scholarship information. Finally, talk with people who have a career you think you’d like. Some companies have programs that allow employees to bring someone to work with them for a day. During that time, you get to observe what that particular job is like.  Community Awareness Look for volunteering opportunities in your community. Also, find out if any companies in your area provide internships where you can get some practical, on-the-job experience. If you know of a particular problem in your community, consider how you can help improve the situation.  Education Learning is a lifetime occupation, no matter what career you choose. Take advantage of chances to learn new things, ask lots of questions, and strive to do your best in whatever you do. Obtaining an educational certificate, diploma, or degree not only benefits you personally, it can also help open doors to more career opportunities. Whether in school or working in a job, remember that you are responsible for what you learn—and no one else.  Relationships Spend time with people who believe in you and inspire you. Being around positive people will help you stay positive and accomplish more. People who are negative and complain all the time will influence you to be the same way. Some organizations have programs in which experienced people volunteer to share their knowledge. This mentor will provide free guidance, tutoring, and suggestions for achieving your goals. Page 24 of 42 Creativity Creativity is the capability of conceiving something original or unusual/ a novelty. It is the ability to make or otherwise bring into existences something new, whether a new solution to a problem, a new method or device, or a new artistic object or form. Creativity is a process by which a symbolic domain in the culture is changed. Creativity is moving from the known to unknown. No entrepreneur or enterprise, however successful and big, can continue to hold a place of leadership unless it recognizes that modern business operates in a world of constant change which creates new problems, risk and opportunities and for which entrepreneurs have mobilize the enterprise’s resources before changes make their impact felt. Principles of Creativity Creativity is an outcome of motivation felt primarily by the best interest, satisfaction, and challenge of the situation and not by external pressures; the passion and interest- an individual’s internal desire to do something unique; his/her sense of challenge, or a drive to prove something no one else has been able to. In an individual, creativity is a function of three components: 1. Expertise: It encompasses everything that a person knows and can do in the broad domain of his or her work-knowledge and technology ability 2. Creative thinking skills: Creative thinking refers to how one approach problems and solutions- the capacity to put existing ideas together in new combinations. This skill itself depends quite a bit on personality as well as on how a person thinks and works. Expertise and creative thinking are the entrepreneur’s raw materials or natural resources. 3. Motivation: Motivation is the drive and desire to do something, an inner passion and interest. When people are intrinsically motivated, they engage in their work to the challenge and enjoyment of it. Entrepreneurial activity depends on the process of innovation following creativity. Role of Creativity in Entrepreneurship 1. Optimal utilization of employee potential. An entrepreneur utilizes full employee potential by encouraging creativity in workplace. There might be an ocean of ideas which are being dormant and ready to be utilized. By tapping on such creativities, an entrepreneur can reap results in the form of profitability, financial strength, and effective decision making. 2. Competitive advantage. Creativity leads to generation of novel and innovative ways of doing business. Exploring new niches and generating new ideas lead to efficiency and eventually give an entrepreneur the required edge over the competition. 3. Product development. Creativity encourages new ways of developing an existing product or service, thereby optimizing business activities in the organization. A creative entrepreneur knows how to make improvements in the deliverables of an enterprise. Page 25 of 42  4. Changing the status quo. Creativity enables an entrepreneur to get new perspectives towards business processes or financial/operational problems. It is creativity that helps an entrepreneur to abandon status quo and follow a path of immense discoveries. Creativity ignores ‘’usual’’ or ‘’normal’’, and lets an entrepreneur think outside of the box. Traditional solutions are shut and new, interesting, & versatile options are explored. It leads to ‘’Thinking the Unthinkable’’. 5. Developing new niches. It is also very important for an entrepreneur to analyze the traditional business approach and come up with new aspects of doing business activities. This can lead to a change in the methods of manufacturing or service delivery or supply chain, and so on. This all generates new niches for a potential business and leads to success. Topic 5- Characteristics of Entrepreneurship Entrepreneurs also need practical skills such as problem-solving and critical thinking, and they must be ready to handle the inherent financial risks of starting a new venture. Developing these traits and skills over time can significantly enhance an entrepreneur's chances of success, helping them bring innovative products and services to market that meet customer needs and create value. There’s an entrepreneurial spirit that runs through anyone who’s ever dreamed of starting their own business. That spark is the catalyst for taking a great idea and making it a reality. Beyond launching, a founder requires a certain set of skills and personality traits to run a thriving business. While each entrepreneur is unique, there is a set of characteristics common to those who find success. The entrepreneurial mindset describes an attitude toward calculated risk taking, critical thinking, and long-term planning. Page 26 of 42 Page 27 of 42 Page 28 of 42 Topic 6- Major Barriers to Creativity in Entrepreneurship The Behaviour of the entrepreneurs starts right from the imagination of some new idea. But, he does not limit himself to the imagination of the idea alone but also attempts to give it material shape. Hence, he is regarded as creativity and barriers to creativity. But, such activities are possible only in a good and free atmosphere. But, the question arises, why he is not able to do so? In the replay to it, the main reasons to be started are, the dictatorial management system in large scale industries and organizations, rights since birth, not encouraging dialogues and interactions and dirty politics, etc. All these factors push back, creative behavior. In brief following are the main barriers to creativity in entrepreneurship: 1. Fear of Failure. The foremost barrier to creativity in entrepreneurship is his fear of failure. He feels apprehended that his new ideas or commodities may not be accepted by society. If it so happens, the power utilized for thinking will be wastage. 2. Lack of Adequate Motivation. Why a person should feel motivated for creative behavior and thinking? If he finds a lack of adequate motivation all the levels of the industry, then he will also not undertake any sort of thinking, nor he will develop new things. In such a situation, creative behaviors will come to end. 3. Lack of Commitment. For the creative person, the special quality of fulfilling the commitments is essential. With this quality, he will fulfill his commitment. But, except for a few entrepreneurs, it lacks in most of the entrepreneurs and they do not generate any new ideas for doing something new. Page 29 of 42  4. Lack of Sufficient Funds. We all know that the use of creativity is possible, only when these are given material shape. But, for doing that, the entrepreneur should have sufficient funds. Without that, all aspects remain neglected, including innovations, experiments, and creative thinking. So, the lack of sufficient funds causes several hurdles in creative behavior. 5. Tendency of Permanency in Person. It is commonly observed that till a person does not enter into the work security category, like, becomes a permanent employee, he fully utilizes his physical, mental, and individual capacities. Besides that, he also offers suitable suggestions, new ideas and information about new commodities to his superiors. But, as he goes on acquiring the tendency of permanency, he goes on reducing his imaginations, does not generate new thinking and wants to be away from the struggle. Such conditions do not encourage creative behavior. 6. Fear of Being Laughed At. In the organizations, few people neither give their own ideas nor they have the imaginative power. On the contrary, what to talk about appreciating the ideas, thinkings, and contribution of others, they make fun of those persons. Such behavior is a barrier to creativity in entrepreneurship. Due to the apprehension of being laughed at, the subordinates and managers do not get inspired for creativity. 7. Lack of Knowledge. The creative person should essentially have knowledge of various subjects, time, circumstances, market, production methods, and production process. The creative person should essentially have knowledge of various subjects, time, circumstances, market, production methods, and production process. If he lacks it, the person will not be able to understand the importance of Creative Behavior. Then, how he can do such behavior? 8. Irrational and Partial Decisions. In small scale organizations, the managers and their subordinates take decisions on various issues, without giving proper thought to the issue, or adopt the partial attitude in the decisions. In such conditions, creativity is altogether lost and for the future also, good imaginative power is not expected. Thus, several barriers start arising to creativity in entrepreneurship. 9. Laziness. Laziness is a serious demerit, which stops a man to do something to make advancement in life. Such persons avoid all types of Thinkings, new imaginations and doing work properly. He goes on to work with the routine by using obsolete methods and techniques. Hence, such tendencies create barriers to creativity in entrepreneurship. 10. Insecurity of Work. By creativity and creative behavior, new thinkings, new ideas, development of new commodities and applications of new constitutions create an apprehension of being unsecured (by surplus working, or do not have work) in the employees, which disturb creative behavior in his future, no creativity is undertaken. 11. Excess Dependence. Some people do not use their own wisdom, qualities, and abilities and intelligence and considers others’ knowledge and ability more perfect and depend upon them, and no creativity and creative behavior emerge in such person. 12. Tendency of Jealousy and Envy. Whenever any person presents new ideas, other people did not regard those ideas as good, due to suffering from the feeling of jealousy and Envy. In such conditions, he will not present good and new ideas in the future even others will get discouraged. As a result, creative behavior gets hurt and the barrier to creativity in entrepreneurship. Page 30 of 42  13. Negative Feelings. Negative feelings of the persons also pose barriers in creative behavior, the reason being that people having inferiority Complex, lacking positive ideas, not having Optimus in nature and always having sadness on their faces will never feel inspired for doing the work nicely and having creative behavior. 14. Doubts and Confusions. Often, most of the managers and their subordinates are in doubt and confusion and think and say, whether the new ideas will be applicable in practice, or not, new products will be developed or not, this will be accepted by the consumers or not, etc. Besides it, in the dictatorial system of Management, the managers and subordinates have to do that only, which is directed by the owners. In these conditions, they neglect self-wisdom, new ideas, new thinking, and creative behavior. 15. Group Dominance. The entrepreneurs may have one or several organizations. Out of them if some organizations are under the special influence of a particular group, then the common man will not be inspired for doing something new, the reason being that they have the fear that it will not be possible to sustain, before that particular group, and hence do not feel inspired for creativity. Thus, now you know the barriers to creativity in entrepreneurship. Topic 7- Common Mistakes Made by Entrepreneur An entrepreneur is also prone to make mistakes in running his venture just like all human beings. But making mistakes in business can prove to be an expensive affair as lot of money is involved. Organizing a business venture requires skills and talent to ensure that profits flow in easily. A businessman requires a sharp mind, willing to take risks and intelligent enough to ensure that his product is saleable in the market to fetch high money returns. But business is not always a smooth affair there being many ups and downs. An entrepreneur at times makes mistakes, which can cost a lot:  Using business money for personal works: This must be avoided at all costs. Many times entrepreneurs are in need of money for personal use. And borrow this amount from the amount set aside for business. Such habits can lead to losses. One must be strict in money matters   Bad staff relations: Often an entrepreneur fails to meet up to the expectations of staff/team. The team has to be taken care of in terms of good salary and other work- related benefits. An unhappy team cannot perform well. Many times, an entrepreneur fails to appreciate the sentiments of his employees and does not share profits with them. In fact, they may be even treated badly.   Wrong investment: Although this is rare, at times an entrepreneur fails to make the right investment. His products may not be very saleable in the market. The competition may be so still that his product may not be of superior enough to face up the competition or his calculation may not be right. Small ventures face this problem often as they are unable to compete with the larger establishments. The latter have more money, technology and manpower to run their business successfully. Page 31 of 42     Selection of team members may not be right: A business may fail if team members are not productive. Often the employer may fail to select the right candidates for work. They may be lacking in skills and education. Perhaps the employer wants to pay less and may compromise on quality. Such decisions can affect profits.   Not adopting new technology: An entrepreneur may fail to adopt new technology either due to lack of funds or sheer lack of initiative. This would also lower the profit level. Topic 8- Types of Entrepreneurs Researchers who have studied entrepreneurial behaviour suggest that there are different types of entrepreneurs. Classifying entrepreneurs into various categories is a tricky issue. The taxonomy of entrepreneurs can be carried out in various ways. Entrepreneurs can be classified on various basis. Clarence Denhof Classifies entrepreneurs on the basis of stage of economic development: some others have classified on the basis of their functions and characteristics. In the initial stages of economic development, entrepreneurs tend to have less initiative and drive. As development proceeds, they become more innovating and enthusiastic. The various types of entrepreneurs are classified on certain parameters. Some important classifications are described below. 1. On the Basis of Economic Development: Clarence Danhof classified entrepreneurs into four groups on the basis of economic development. A. Innovating Entrepreneurs: This type of entrepreneurship is characterized by aggressive assemblage of information and the analysis of results deriving from novel combination of factors of production. Entrepreneurs falling in this class are generally aggressive in experimentation and exhibited shrewdness in putting attractive possibilities into practice. They are the entrepreneurs who have creative and innovative ideas of starting a new business. An innovating entrepreneur sees the opportunity for introducing a new technique or a new product or a new market. He may raise money to launch an enterprise, assemble the various factors, and choose top executives and the set the organization going. Schumpeter’s entrepreneur was of this type. Innovative entrepreneurs thus, results in the creation of something new. They are the contributors to the economic development of a country. Innovating entrepreneurs are very commonly frond in undeveloped countries. There is dearth of such entrepreneurs in developed countries. Innovating entrepreneurs played the key role in the rise of modern capitalism, through their enterprising sprit, hope of moneymaking, ability to recognize and exploit opportunities, etc. B. Adoptive or Imitative Entrepreneur: There is a second group of entrepreneurs generally referred as imitative entrepreneurs. The imitative entrepreneurs copy or adopt suitable innovations made by the innovative entrepreneurs. They does not innovate the changes himself. They only imitates technology innovated by others. Such entrepreneurs are particularly important in developing courtiers because they contribute significantly to the development of such economies. Imitative entrepreneurs are most suitable for the developing regions because in such countries people prefer to imitate the Page 32 of 42 technology, knowledge and skill already available in more advanced countries. In highly backward countries there is shortage of imitative entrepreneurs also. People who can imitate the technologies and products to the particular conditions prevailing in these countries are needed. Sometimes, there is a need to adjust and adopt the new technologies to their special conditions. Imitative entrepreneurs help to transform the system with the limited resources available. However; these entrepreneurs face lesser risks and uncertainty then innovative entrepreneurs. While innovative entrepreneurs are creative, imitative entrepreneurs are adoptive. C. Fabian Entrepreneur: The third type is Fabian entrepreneur. By nature these entrepreneurs are shy and lazy. This type of entrepreneurs have neither will to introduce new changes nor desire to adopt new methods of production innovated by the most entrepreneurs. They follow the set procedures, customs, traditions and religions. They are not much interested in taking risk and they try to follow the footsteps of their predecessors. Usually they are second generation entrepreneur in a business family enterprise. D. Drone Entrepreneur: The fourth type is Drone entrepreneurs who refuse to copy or use opportunities that come on their way. They are conventional in their approach and stick to their set practices products, production methods and ideas. They struggle to survive not to grow. They may be termed as Laggards. In such cases the organization loses market, their operations become uneconomical and they may be pushed out of the market. 2. On the Basis of Type of Business: Under this category we can classify entrepreneurs as described below: A. Business Entrepreneurs: They are the entrepreneurs who conceive an idea for a new product or service and then create a business to materialize their idea into reality. They tap the entire factor of production to develop a new business opportunity. They may set up a big enterprise or a small scale business. When they establish small business units they are called small business entrepreneurs. In a majority of cases, entrepreneurs are found in small trading and manufacturing business. B. Trading Entrepreneur: There entrepreneurs undertake trading activities and are not concerned with the manufacturing work. They identifies potentiality of their product in markets, stimulates demand for their product line among buyers. They may go for both domestic and overseas trade. These entrepreneurs demonstrated their ability in pushing many ideas ahead which promoted their business. C. Industrial Entrepreneur: Industrial entrepreneur is essentially a manufacturer who identifies the needs of customers and creates products or services to serve them. He is product- oriented who starts through an industrial unit to create a product like electronic industry, textile unit, machine tools. D. Corporate Entrepreneur: These entrepreneurs used his innovative skill in organizing and managing a corporate undertaking. A corporate undertaking is a form of business organisation which is registered under some statute or Act like a trust registered under the Trust Act, or a company registered under the Companies Act. These corporate work as separate legal entity. He is thus an individual who plans, develops and manages a corporate body. Page 33 of 42  E. Agricultural Entrepreneur: Agricultural entrepreneurs are those who undertake agricultural activities as through mechanization, irrigation and application of technologies to produce the crop. They cover a broad spectrum of the agricultural sector and include agriculture and allied occupations 3. According to the Use of Technology: The application of new technology in various sectors of the national economy is essential for the future growth of business. We may broadly classify these entrepreneurs on the basis of the use of technology as follows: A. Technical Entrepreneurs: With the decline of joint family business and the rise of scientific and technical institutions, technically qualified persons have entered the field of business. These entrepreneurs may enter business to commercially exploit their inventions and discoveries. Their main asset is technical expertise. They raise the necessary capital and employ experts in financial, legal- marketing and other areas of business. Their success depends upon how they start production and on the acceptance of their products in the market. B. Non-technical Entrepreneur: Non-technical entrepreneurs are those who are not concerned with the technical aspects of the product or service in which they deal. They are concerned only with developing alternative marketing and promotional strategies for their product or service. C. Professional Entrepreneur: Professional entrepreneur is an entrepreneur who is interested in establishing a business but does not have interest in managing it after establishment. A professional entrepreneur sells out the existing business on good returns and starts another business with a new idea. Such an entrepreneur is dynamic and conceives new ideas to develop alternative projects. 4. According to Motivation: Motivation is the main force that promotes the efforts of the entrepreneur to achieve his goals. An entrepreneur is motivated to achieve or prove his excellence in their performance. According to motivation we can classify entrepreneur as:. A. Pure Entrepreneur: A pure entrepreneur is the one who is motivated by psychological economical, ethical considerations. He undertakes an entrepreneurial activity for his personal satisfaction in work, ego or status. B. Induced Entrepreneur: This type of entrepreneur is one who induced to take up an entrepreneurial task due to the policy reforms of the government that provides assistance, incentives, concessions and other facilities to start a venture. Most of the small scale entrepreneurs belong to this category and enter business due to financial, technical and several other facilities provided to them by the various agency of Govt. to promote entrepreneurship. Today, import restrictions and allocation of production quotas to small units have induced many people to start a small scale unit. C. Motivated Entrepreneur: New entrepreneurs are motivated by the desire for self- fulfillment. They come into being because of the possibility of making and marketing some new products for the use of consumers. They are motivated through reward like profit. Page 34 of 42 5. According to Growth: The industrial units are identified as high growth, medium growth and low growth industries and as such we have ‘Growth Entrepreneur’ and ‘Super Growth Entrepreneur.’ A. Growth Entrepreneur: He necessarily takes up a high growth industry and chooses an industry which has sustained growth prospects. Growth entrepreneurs have both the desire and ability to grow as fast as large as possible. B. Super-Growth Entrepreneur: This category of entrepreneurs is those who have shown enormous growth of performance in their venture. The growth performance is identified by the high turnover of sales, liquidity of funds, and profitability. 6. According to Entrepreneurial Activity: Based on entrepreneurial activity, entrepreneurs are classified as novice, serial, and portfolio entrepreneur. A. Novice Entrepreneur: A novice is someone who has started his/her first entrepreneurial venture. A novice entrepreneur is an individual who has no prior business ownership experience as a business founder, inheritor of a business, or a purchaser of a business. It is not similar to early starter; a novice can also be a 50 year old with over 25 years of experience in the industry. B. A Serial Entrepreneur: A Serial Entrepreneur is someone who is devoted to one venture at a time but ultimately starts many. It is the process of starting that excites the starter. Once the business is established, the serial entrepreneur may lose interest and think of selling and moving on. C. Portfolio Entrepreneur: A portfolio entrepreneur is an individual who retains an original business and builds a portfolio of additional businesses through inheriting, establishing, or purchasing them. A portfolio entrepreneur starts and runs a number of businesses. It may be a strategy of spreading risk or it may be that the entrepreneur is simultaneously excited by a variety of opportunities. Also, the entrepreneur may see some synergies between the ventures. 7. Other Entrepreneurs: A. First-Generation Entrepreneurs: This category consists of those entrepreneurs whose parents or family had not been into business and was into salaried service. Also, with a change in the mindset of the middle class, it is now more acceptable to become an entrepreneur. A first- generation entrepreneur is one who starts an industrial unit by means of an innovative skill. He is essentially an innovator, combining different technologies to produce a marketable product or service. B. Modern Entrepreneur: A modern entrepreneur is one who undertakes those businesses which go well along with the changing scenario in the market and suits the current marketing needs. C. Women Entrepreneurs: Progressive laws and other incentives have boosted the presence of women in entrepreneurial activity in diverse fields. D. Nascent Entrepreneur: A nascent entrepreneur is an individual who is in the process of starting a new business. E. Habitual Entrepreneur: A habitual entrepreneur is an individual who has prior business ownership experience. The nascent entrepreneur can either be a novice or a habitual entrepreneur. Page 35 of 42  F. Lifestyle Entrepreneurs: Lifestyle entrepreneurs have developed an enterprise that fits their individual circumstances and style of life. Their basic intention is to ear an income for themselves and their families. G. Copreneurs: It is related to the married couples working together in a business. When a married couple share ownership, commitment and responsibility for a’ business, they are called “copreneurs”. As copreneurs, couples struggle in ventures to establish equality in. their relationships. Such couples represent the dynamic interaction of the systems of love and work. H. IT Entrepreneurs: IT entrepreneurs are creating a new business platform that takes them straight to the top. They are confident, ambitious innovative and acquired creativity in the competitive global environment and created a niche of their self. They are the brave new bunch of entrepreneurs who are raring to take on the world of information technology. I. Social Entrepreneur: Social entrepreneur is one who recognizes the part of society which is stuck and provides new ways to get it unstuck. Be it dedicated efforts for child upliftment, fighting for the conservation of rainforests, working for the betterment of the blind or initiatives to empower women, the entrepreneur’s passion is very strong. Freedom, wealth, exposure, social mobility and greater individual confidence are driving this huge wave of social innovation and entrepreneurship. After all are tired with the Inefficiency of governments and the indifference of corporate, and want to make a change and this is the case everywhere. J. Forced Entrepreneurs: The money-lenders of yesterday, who are thrown out of their family business because of government legislation, individuals returning from abroad and the educated unemployed seeking self-employment form this class of entrepreneurs. K. Individual and Institutional Entrepreneurs: In the small scale sector individual entrepreneurs are dominant. Small enterprises outnumber the large ones in every country. Such entrepreneurs have the advantage of flexibility, quick decision making. But a single individual can establish, operate and control an organization up to a limit. Thereafter, it becomes necessary to institutionalize entrepreneurship. The business will have to acquire a number of new entrepreneurial skills through a corporate body. A group of entrepreneurs has to be developed to handle the increasingly complex network of decision making. The central function of the entrepreneur remains the same but the basic decisions like the line of business, the amount of capital employed, etc. are taken collectively by the promoters at the helm of affairs. Thus, individual entrepreneur and institutional entrepreneur coexist and support each other. Corporate sector the symbol of institutionalized entrepreneurship. L. Entrepreneurs by Inheritance: At times, people become entrepreneurs when they inherit the family business. Firms are passed from one generation to another. Page 36 of 42 Topic 9- The Entrepreneurial Process Page 37 of 42 Topic 10- Why be an Entrepreneur? Page 38 of 42 V. Teaching Methods and Activities The teaching method is based on the presumption of a maximum level of independence of thought and work. The course requires a high level of commitment, diligent and continuous work, as well as dedication to work as an individual as well as member of the course. One should display an attitude of strong professionalism when it comes to sticking to agreed assignments, deadlines, and quality of work. The teaching may be done using lectures, tutorials, powerpoint slides, case studies/videos whenever available. The course material may consists of powerpoint presentations, lecture notes and readings from the textbook. Course material marked as ‘suggested readings’ and ‘additional sources’ is helpful for research and to gain further understanding of the module/chapter lessons. All recommended materials can be found/search using the internet. VI. Assessment & Rubric/s Description of Activities, Grading Criteria and Deadlines: The nature of this course does not lend itself to objective questions; there is no "right" or "wrong" answer per se. There is no specific presentation on how your work will look like. However, there are different levels of quality. Just as a venture capitalist ranks the attractiveness of proposals, I will rank your work against that of your peers and assign an appropriate grade. Find your preferred presentation incorporating the terms and conditions cited hereunder, for your kind reference and perusal. Likewise, include the references in the last part of your paper. Please submit hard copy of your answers in a whole bond paper not later than September 13, 2024 to the class mayor. Format: - Font – Arial - Font size – 12 - Size of paper – Short - Header – college header - Cover letter – Course code & title, semester and school year, your group number, name of members and course/year/section, and name of instructor. GROUP ACTIVITY- Note: Group yourselves into 4 - of your own choice. Page 39 of 42 1. Let us take an exercise: The Ring Toss Exercise  Suppose there are three rows of gifts and prizes. The first row is closest and with least attractive gifts followed by the second row with more attractive gifts, but placed at a greater distance than the first row and the third with the most attractive gifts, but placed farthest of the three rows. You have a ring to throw. Which row will you target? Why? 2. Critical Thinking Inferring  Why do you think an entrepreneur might choose to keep a business small rather than expand it? Applying Concept  Why does supplier competition make it harder for an entrepreneur to be successful? Business Ethics  You are walking to work with one of your employees. On the way, you stop to get a newspaper at a self-pay newspaper box. You insert the required number of coins, open the door, and pick up a newspaper. Before closing the door, you ask your employee if he would like a newspaper too. “Two for the price of one,” you say. First, resolve whether this is an ethical action. Then describe the impact it could have on your employee. Finally, consider whether this action could have a larger impact on your company Science (Conserving Natural Resources)  Some natural resources, such as oil and water, are becoming harder and harder to obtain in many parts of the world. Trees are being cut down faster than people can plant and grow new ones. Use the internet to research ways that entrepreneurs, and the employees that work for them, can help conserve our natural resources. Present your findings in a report form. Page 40 of 42 Page 41 of 42 INDIVIDUAL ACTIVITY  Copy the result of your Entrepreneurial potential self-assessment in a long sized bond paper and submit the interpretation/result on or before September 12, 2024. Just copy the link indicated below and answer the survey. After which comment and defend the results you received. https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/business-assessments/self- assessment- test-your-entrepreneurial-potential VII. Additional Data or Looking Ahead ‘Suggested readings’ and ‘additional sources’ (These are just additional information/input/knowledge that you can search/read AND is not a required activity to answer) 1. Difference between creativity and innovation (https://www.youtube.com/watch?v=kn_Z30NzyNM} 2. The Elephant, The Rider and the Path - A Tale of Behavior Change (https://www.youtube.com/watch?v=X9KP8uiGZTs) 3. Animanimals: Ant (https://www.youtube.com/watch?v=pCxY70kPDnM) 4. Creativity and Innovation (https://www.youtube.com/watch?v=FXJUDyqobbM) 5. What does innovation mean to you? (https://www.youtube.com/watch?v=6GBZ3csX7lQ) 6. Innovation (https://www.youtube.com/watch?v=5Uh1KxcpWz0) 7. Creativity, Entrepreneurship, and Innovation. (https://www.youtube.com/watch?v=jjJ9pQ10FXo) 8. All about Learning. Creativity, Innovation and Change. (https://www.youtube.com/watch?v=LAFZSL4DMXY) 9. https://www.googlesir.com/barriers-to-creativity-in-entrepreneurship/ 10. https://www.youtube.com/watch?v=n2POtHdTNPE A TALE OF USER INNOVATION 11. https://ebsedu.org/blog/why-creativity-is-crucial-for-entrepreneurship/ VIII. References Entrepreneurship Skills for New Ventures 4 th Edition, published 2021 by Routledge, New York. David C. Kimball and Robert N. Lussier Entrepreneurship, published 2019 Society Publishing, Canada. Dr. Radha Kanwal Sharma Entrepreneurship 10th Edition, published 2017 by McGraw-Hill Education, New York Entrepreneurship The Practice and Mindset published 2018 by SAGE Publication Inc., California Prepared by: MELANY C. FEDERIS, MBM Assistant Professor IV Page 42 of 42