Pathways To Entrepreneurship PDF

PATHWAYS TO ENTREPRENEURSHIP Passions + Hard Work + Business = Wealth "Passion, creativity, and resilience are the most crucial skills in business. If you’ve got those, you’re ready to embark on the journey." -Jo Malone, Founder of Jo Malo...

PATHWAYS TO ENTREPRENEURSHIP Passions + Hard Work + Business = Wealth "Passion, creativity, and resilience are the most crucial skills in business. If you’ve got those, you’re ready to embark on the journey." -Jo Malone, Founder of Jo Malone 2  Define the concept of entrepreneurship Identify the different types of entrepreneurs Describe the entrepreneurial process Describe the typical characteristics of Filipino entrepreneurs Learning Explain the factors that influence individuals to pursue entrepreneurial outcomes Objectives Explain how entrepreneurs think and how they make decision Explain the role of risk and failure in the entrepreneurial process 3 Guess the Logo Apple Microsoft Facebook Uber Steve Jobs Bill Gates Mark Zuckerburg Travis Kalanick 4 Guess the Logo Tesla Philippine SM "ShoeMart" Mang Inasal Elon Musk Airlines Henry Sy Edgar Sia II Lucio Tan 5 Guess the Logo National Book Zest-O Oishi Jollibee Store Alfredo Yao Carlos Chan Tony Tan Caktiong Socorro Ramos 6 Introduction What is ENTREPRENEURSHIP? 7 Entrepreneurship is a process of initiating a business or expanding an existing enterprise for providing goods or services to the market and in realizing profit for the firm. Through entrepreneurship, new products, new processes, new markets, and new organizations are introduced. 8 What is Entrepreneurship? Part I - Foundations of Entrepreneurship Chapter 1 Entrepreneurial Mindset Presentation title 10  WHAT IS AN ENTREPRENEUR? Entrepreneur JOSEPH SCHUMPETER Comes from the French The Theory of Economic word “entreprendre” Development which means “to Entrepreneurs are undertake”. individuals who have generated substantial value and profits from innovations in a very short period of time. 11 WHO ARE ENTREPRENEURS WHO ARE ENTREPRENEURS WHO ARE ENTREPRENEURS WHO ARE ENTREPRENEURS ▫ You can be an entrepreneur as long as you have the passion and willingness to risk in your product.  TYPES OF ENTREPRENEURS Mega Entrepreneurs Micro Entrepreneurs These individuals are also They engage in micro and willing to absorb huge risks small businesses as an using enormous amounts of alternative to formal capital in their business employment. venture. They are short in funds and inadequate in skills 16  ENTREPRENEURIAL PROCESS Peter Drucker Question Innovation and Would you rather be an Entrepreneurship (1985) entrepreneur or a manager Emphasized the “discipline” in a big corporation? in the process of starting and managing a business. 17  ENTREPRENEURIAL PROCESS “entrepreneurial discipline” Which involves several stages from the awareness of an opportunity to the realization of a business idea. 18  STAGES OF ENTREPRENEURIAL PROCESS Development Organizing Implementatio Reaping The Discovery of Concept n Returns Resources Refers to the Gives more Describes the Is the process Pertains to recognition of a details on how process of of carrying out strategies business idea or the general identifying, the business related to the the detection of business idea sourcing, and plan. expansion of the opportunities can be realized. financing business firm that could make It suggest the PREPARATION of a BUSINESS PLAN. human, money for the nonhuman, and entrepreneur. other resources needed for the conduct of business. 19  CHARACTERISTICS OF AN ENTREPRENEUR Two Criteria Entrepreneurial Traits and Creation of Value- added Entrepreneurial Traits and Entrepreneurial Intentions 20 ENTREPRENEURIAL TRAITS AND CREATION OF VALUE- ADDED Level of Employment Entrepreneur's Risk Appetite Education Status Wealth Studies have shown Individuals who Wealth of the Risks are associated that entrepreneurs become entrepreneur is also with uncertainties in need some formal entrepreneurs in an important factor. business operation. education to be able developed countries to seize the are usually former opportunities employees of presented by companies in the inventions, formal sector. innovations, and other technological development. 21  ENTREPRENEURIAL TRAITS AND ENTREPRENEURIAL INTENTIONS Entrepreneurial Question Intentions “ HOW ARE THESE INTENTIONS Planned actions formulated FORMULATED?” in the mind of individuals w/c are geared toward the objective of establishing a business venture from potential business opportunities. 22 FACTORS THAT INFLUENCE ENTREPRENEURIAL INTENTIONS INTERNAL FACTORS EXTERNAL FACTORS 23 FACTORS THAT INFLUENCE ENTREPRENEURIAL INTENTIONS INTERNAL FACTORS - Include mainly the qualities of individuals such as demographics, personal traits, psychological characteristics, individual skills, prior knowledge and social ties. 24  FACTORS THAT INFLUENCE ENTREPRENEURIAL INTENTIONS (INTERNAL FACTORS) Demographic Personal Traits Psychological Refer to gender, Self-confidence, Traits marital status, determination, and Need for age, and enthusiasm, and achievement, risk employment other positive appetite, status of human qualities. acceptance for individuals. vagueness, self- efficacy, and goal setting. 25 FACTORS THAT INFLUENCE ENTREPRENEURIAL INTENTIONS EXTERNAL FACTORS 1. Environmental Support 2. Environmental Influence 26 FACTORS THAT INFLUENCE ENTREPRENEURIAL INTENTIONS (EXTERNAL FACTORS) Environmental Support Environmental Influence Many studies have affirmed Regulatory Structure the positive effects of Patents government, financial Protection of Property institutions and training Rights institutions in setting up businesses. Competitive Environment 27 CHARACTERISTICS OF FILIPINO ENTREPRENEUR A number of Positive exposure There are more Filipinos go into given by the females than entrepreneurship various forms of males that are because they see media to engaged in the it as an successful early stage entrepreneurs. opportunity for entrepreneurial However, this income creation attitude is activities in the and employment. tempered by a Philippines. fear of business failure. 28 CHARACTERISTICS OF FILIPINO ENTREPRENEUR In the more In terms of age, In terms of advanced stages entrepreneurship educational of entrepreneurial in the country attainment, almost activity, the gender attracts more half of proportion of young individuals. entrepreneurs in entrepreneurs and the early stage managers become development have more even finished secondary school. 29 CHARACTERISTICS OF FILIPINO ENTREPRENEUR Majority of those engaged in early stage entrepreneurial activities in the Philippines are in consumer services including retail, food, personal beauty care, appliance and electronic repair, cleaning services and laundry services. 30 ENTREPRENEURIAL DECISION-MAKING Critical Thinking Creative Thinking Strategic Thinking “refers to the systematic and “refers to thought process that “involves thought processes that rational way of providing an bring about discovery of new assess a current situation, which answer to a question.” ideas. The intent of creative can be useful in the formulation of It is systematic since it follows steps in responding to an inquiry. It is rational because it adheres to the rules of logic in connecting the relationships of variables and in making conclusions. thinking is not to provide an plans for the future.” answer but to ask questions that can lead to discovery and change.” 31  RISKS, COGNITIVE ADAPTIBILITY AND ENTREPRENEURIAL DECISIONS Risks Internal Risks Can be described as Pertain to dangers coming from uncertain situations and the management of resources of developments that can a business enterprise that may increase the probability of imperil its operation loss or business failure. (for example: liquidity and financial risks, failing to hire the best talents, damage to reputation and failure to innovate) 32  RISKS, COGNITIVE ADAPTIBILITY AND ENTREPRENEURIAL DECISIONS External Risks Cognitive Adaptability Are threats coming from Refers to the ability of individuals various environments to be involved in the process of outside the business firm. producing several ways of These can endanger the decision making based on the operations and profitability of a firm identification and management of (for example: lethargic economy, changes in their environment. increased competition, commodity It requires qualities of flexibility, price risks, regulatory risks, business interruptions and political risks) dynamism and self-control on the part of the entrepreneur. 33  Chapter 1 Entrepreneurial Mindset By Teacher Clares Thank you 34