Entrepreneurial Mind PDF

# A Module in The Entrepreneurial Mind ## Preface ## Table of Contents ### I. Entrepreneurship: Basic Concept - **Lesson 1. Definition of Entrepreneur and Entrepreneurship** - Exercise 1.1 - Exercise 1.2 - Exercise 1.3 - Exercise 1.4 - **Lesson 2. Competing Theories of Entreprene...

# A Module in The Entrepreneurial Mind ## Preface ## Table of Contents ### I. Entrepreneurship: Basic Concept - **Lesson 1. Definition of Entrepreneur and Entrepreneurship** - Exercise 1.1 - Exercise 1.2 - Exercise 1.3 - Exercise 1.4 - **Lesson 2. Competing Theories of Entrepreneurship** - Exercise 1.5 - **Lesson 3. Entrepreneurial Skills** - Exercise 1.6 - **Lesson 4. Attributes, Qualities, and Characteristics of an Entrepreneur** - Exercise 1.7 - **Lesson 5. Types of Entrepreneur** - Exercise 1.8 - **Lesson 6. Entrepreneurial Input** - Exercise 1.9 ### II: Innovation and Entrepreneurship - **Lesson 1: Entrepreneur as an Innovator and Change-Maker** - Exercise 2.1 - **Lesson 2: Concept of Innovation** - Exercise 2.2 - **Lesson 3: Challenges and Myths in Innovation** - Exercise 2.3 ## Introduction This introductory lesson in entrepreneurship is intended for students from all disciplines. This chapter will provide students with an overview of entrepreneurship and its definition, understanding the origin and nature of entrepreneurship will also be given focus in order to establish a better understanding of the subject. In the Philippines, the government encourages citizens to start businesses because it believes that doing so will assist to alleviate poverty. We begin the chapter by explaining entrepreneurship so that students can comprehend the features and traits of an entrepreneur. The more we understand about entrepreneurship, the more we can see its socioeconomic impact on a country. Successful entrepreneurs are considered heroes of the Philippine economy since they are the driving force behind a capitalist economy. ## Target Learning Outcomes * LO1. Explain the nature and importance of Entrepreneurship. * LO2. Describe the attributes, qualities, and characteristics of an entrepreneur. * LO3. Define entrepreneur and entrepreneurship. * LO4. Apply different entrepreneurial skills. ## Warm-up Activity Go to this Youtube link and watch the video: https://www.youtube.com/watch?v=CyTAQRslbAs If you were the person from the video, would you take the risk in entrepreneurship? Explain your answer. Place your hand-written answer on a separate sheet of paper. ## Lesson 1. Definition of Entrepreneur and Entrepreneurship **Lesson Learning Outcomes** At the end of this lesson, you are expected to: * identify the origin and nature of entrepreneurship; * define entrepreneur and entrepreneurship by making a poster; and * give the significance of entrepreneurship in your everyday life ### 1.1 Who is the Entrepreneur? Do you know anyone from the pictures above? If yes, how did you know about them? How are they relevant in the field of Entrepreneurship? If you know them all, then good for you! That means you are following the people who made an impact in their line of business/chosen field. Tony Tan Caktiong (pictured extreme left), the founder of Jollibee Foods Corporation, is an entrepreneur. He revolutionized the fast food industry in the Philippines by introducing the loved bee in the world, Jollibee. So, the question now is, **WHAT IS AN ENTREPRENEUR?** How is an entrepreneur different from a businessman? Or are they the same? As defined by C. Banastao & S. Frias (2008), an entrepreneur is a person who develops and/or runs a business. A person who is both creative and imaginative is an entrepreneur. He is someone who is embarking on a new endeavor. He is an owner-manager willing to take risks. So many definitions, right? Definitions for entrepreneur and businessman have evolved throughout the years, but always remember that an entrepreneur is a businessman, but not all businessmen are entrepreneurs. Makes sense? Let's look at this graphic example.... **Businessman** Our business [cave] man right here saw a mango tree. He had the idea to sell the fruits from the tree to his fellow cavemen for Php20 a piece. **Entrepreneur** On the other hand, another cave man (our entrepreneur) also saw this mango tree. He thought of selling the fruits from the tree but decided that it was too boring, and instead, thought of a different way to sell mangoes. So, he developed a refreshment that he called "Mango Shake", which he made by crushing the mangoes with stone while shaking his arm...hence, the name. He sold it for Php50 to compensate for the effort he has exerted to make the refreshment. > *Disclaimer: No cavemen were harmed and no mango trees were cut down during the presentation of this example. It's not as if cavemen were the ones who discovered mango shake, nor they had mangoes during those times with the dinosaurs. Haha!* _"It is the entrepreneurs' actions that differentiate them from businessmen, managers, investors, and the like"_ (J. Camposano, 2010). I hope that example explained well how an entrepreneur is different from a businessman. Now that we have established what an entrepreneur is, let us look at his tasks. ## Entrepreneur's Task | Land (Natural Resources) | Labor (Human Resources) | Entrepreneur | Production Process | Finished Goods and Services | Capital (Financial Resources) | |---|---|---|---|---|---| | | | | | | | In order to make a profit, the entrepreneur must perform the following specific tasks: 1. provide the necessary capital; 2. organize production by purchasing and combining inputs such as materials and labor; 3. determine the rate of output based on demand expectations; and 4. bear the risk inherent in the venture. ### Exercise 1.1 Name at least 3 successful local entrepreneurs. Why do you consider them as successful entrepreneurs? Site 2 lessons you learned from their stories. Place your hand-written answer on a separate sheet of paper. ### 1.2 What is Entrepreneurship? Entrepreneurship is a very essential element of a country's economic performance, not only by the means of income and making innovation for improved standard of living but also on creating employment opportunities specially here in the Philippines. It is an economic activity by which an individual or an organization develops and manages a business venture, either, by bringing an innovative product or services to the market or by significantly improving an existing good, services or method of production. As defined in the textbook "Entrepreneurship" by C. Banastao and S. Frias (2008), Entrepreneurship is the process of producing something worthwhile by devoting the time and effort required, accepting the financial, psychological, and social risks that come with it, and reaping the financial and personal satisfaction and independence that comes as a result. But, Entrepreneurship does not only deal with creating something new, but rather, creating value by recognizing opportunities and capitalizing on it. Another goal of Entrepreneurship is to improve the lives of people by the product, service, or method of production they provide. There is no exact definition for entrepreneurship, as it is dynamic and fluid. Many textbooks would have different views on its definition, but we can all agree that it is continuously evolving and bringing change to everyone's lives. ### Exercise 1.2 Using a short bond paper, discuss the definition and concept of entrepreneurship by making a poster. ### 1.2 The Origin and Nature of Entrepreneurship The concept of entrepreneurship evolved through a process that began with providing service in a feudalistic society. Even in its early stages, there was no indication that entrepreneurship was anything other than a business activity with profit as the primary motive or purpose. It has evolved from a service orientation to a type of endeavor that is still without definite bias as to whether an entrepreneur exists in a business that is purely for personal gain or simply providing services in general. There was also no distinction between an entrepreneur and a capitalist or a business owner who is also the manager, or between entrepreneurship and business ownership. The term and ideas about entrepreneurship appear to be well-known, but there is much more to it than what is commonly perceived. The name's origin is unknown, however it is assumed to have originated during the Middle Ages in Europe. The word "entrepreneur" is clearly derived from the French word entreprendre, which simply means "to take on." However, experts and scholars have agreed that entrepreneurship refers to the act of creating a business, however no mention was made of whether the business was founded for himself or for someone else. Early entrepreneurs, according to historical literature, supplied feudal lords with soldiers and materials for fighting their adversaries. The term "entrepreneur" or "entrepreneurship" first appeared in France during the height of feudal conflict, indicating that the type of activity was "supply of services," with no suggestion that entrepreneurs were doing it for personal gain or profit at the time. ### Exercise 1.3 Make a research paper about the nature and origin of entrepreneurship. Write down and discuss the timeline of entrepreneurship's evolution. Use a short bond paper for this activity. ### 1.4 Benefits of Entrepreneurship Here are some possible benefits that one can drive from undertaking entrepreneurship as their life-long career: | Opportunity to make a difference | Opportunity to reach your full potential | Opportunity to get unlimited profits | Opportunity to do what you want to do | Opportunity to contribute to society and be recognized for your efforts | |---|---|---|---|---| |   |   |   |   |   | 1. **Opportunity to make a difference.** Any person can make a difference, don't get me wrong. But in entrepreneurship, you can reach more people and improve their lives for the better through your product, service, or method of production. 2. **Opportunity to reach your full potential.** There are a lot of opportunities in entrepreneurship to improve yourself. You own your time and you do not necessarily answer to anyone. Being your own boss gives you a sense of freedom and space for self-improvement. 3. **Opportunity to get unlimited profit.** Though profit is not the main purpose of an entrepreneur, consider it a reward for your hard work. Being able to see opportunities that others cannot gives you an edge. 4. **Opportunity to do what you want.** As mentioned earlier, you are your own boss, therefore, you can do what you deem is necessary for your business. 5. **Opportunity to contribute to the society and be recognized for your efforts.** This should be the main focus of every entrepreneur - to contribute to the community and society. For the rewards (profit) that we receive through our own efforts, it is right and just to give back to the community through generation of jobs, among others. Every successful entrepreneur benefits not just himself or herself, but the entire community, region, or country. In the book entitled **_The Entrepreneur_** by Saidali (2015), advantages of entrepreneurship was listed. 1. Enormous personal financial gain 2. Self-employment, offering more job satisfaction and flexibility of the work force 3. Employment for others, often in better jobs 4. Development of more industries, especially in rural areas or region 5. Encouragement of the processing of local materials into finished goods for domestic consumption as well as for export 6. Income generation and increased economic growth 7. Healthy competition thus encourages higher quality products 8. More goods and services available 9. Development of new markets 10. Promotion of the use of modern technology in small-scale manufacturing to enhance higher productivity 11. Encouragement of more researches/ studies and development of modern machines and equipment for domestic consumption 12. Development of entrepreneurial qualities and attitude among potential entrepreneurs to bring about significant changes in the rural areas 13. Freedom from the dependency on the jobs offered by others 14. The ability to have great accomplishments 15. Reduction of the informal economy 16. Emigration of talent may be stopped by a better domestic entrepreneurship climate. ### Exercise 1.4 Among the benefits listed above, which one suits you the most? Explain your answer. Place your hand-written answer on a separate sheet of paper. ## Lesson 2. Competing Theories of Entrepreneurship **Lesson Learning Outcomes:** At the end of this lesson, you are expected to: * discuss how the different entrepreneurial theories may help you as a future entrepreneur. The process through which an entrepreneur establishes his business is referred to as entrepreneurship. It is an environmentally conscious and inventive response. Entrepreneurship can also be defined as the capacity to perceive, create, or uncover opportunities that benefit society and result in financial success for the entrepreneur and his organization. The following are the main entrepreneurial theories: ### 1. Entrepreneurship Function of Innovation In his theory of economic growth, he first place the human agent at the heart of the economic growth process and accorded entrepreneurship a key role. He thought about money. Economic development, he believed, was a discrete technological shift. Five different sorts of events can be used to describe the development process: * First, it might be the result of a new product being introduced to the market. * Second, it could be the outcome of a new manufacturing technique. * Third, it could arise as a result of a new market. * Fourth, it could be the result of a new supply source. * Fifth, it might be related to any industry's new organization. ### 2. In Schumpeter's opinion Development is not a natural process; it necessitates the deliberate and active promotion of a system entity, which Schumpeter referred to as an entrepreneur. * He is the agent in charge of the economy, generating discontinuous dynamic changes in the economy's basic conditions. * He is neither a technical nor a banker by nature, yet he is regarded as an inventor. * Because entrepreneurship cannot be classified as a profession or a normal occupation, constitute a social class in the same way that capitalists may. * Entrepreneurs are not simply motivated by profit from a psychological standpoint. ### 3. Entrepreneurship as a Function of Organizational Development The ability to "organize," according to Fredrick Harbison, is the most vital skill for industrial advancement. He says that entrepreneurship is defined by one's ability to expand oneself by skillfully entrusting others with responsibility. The main features are: * Unlike Schumpeter, Harbison's entrepreneur is a "constructor" who must be capable of harnessing and transmit the innovative ideas of numerous innovators to the rest of the enterprise. * These individuals may just be good leaders and administrators, rather than individuals with innovative ideas or men who try out fresh resource combinations. * In terms of structure, Harbison's concept of entrepreneurship places a greater emphasis on managerial abilities and ingenuity. ### 4. Entrepreneurship The Role of Managerial and Leadership Skills A person who wants to be an industrial entrepreneur must have additional qualities. Profit expectations must inspire him, but he must also have managerial abilities and, more significantly, the ability to take charge. Financial capabilities, according to Hoselitz, are only a secondary issue in entrepreneurship. The most important qualities of entrepreneurship, according to him, are managerial ability and leadership. He defines three forms of corporate leadership in his study of the emerging countries' economic development: * The type of merchant money lender * The sort of management * Entrepreneurial personality ### 5. High-Achievement Entrepreneurship Function A businessman that simply follows the regulations, according to Mc Clelland, is not an entrepreneur. Furthermore, in the face of uncertainty, the entrepreneurial function appears to demand adversarial decision-making. According to Mc Clelland, entrepreneurship consists of two characteristics: "finding new and better ways to accomplish things" and "making decisions in the midst of uncertainty." Individuals who have achieved a high level of success would accept moderate risks. They wouldn't act as they usually do (no risk). High achievement is linked to superior performance in activities that require some imagination, mental manipulation, or creative techniques for putting things together, and these are the activities that require the most imagination, mental manipulation, or creative techniques for putting things together, and these are the activities that require the most imagination, mental manipulation, or creative techniques for putting things together and these individuals excel at non-routine tasks that demand initiative or innovation. ### 6. Entrepreneurship Function of Social, Political and Economic Structure According to John Kunkel, industrial entrepreneurship is dependent on four structures found in society or community. * **Limitation Structure:** Distinct activities are restricted to members of specific subcultures. The members of a society are all affected by this limiting framework. * **Demand Structure:** The majority of the demand structure is economic, whereas the majority of the limitation structure is social and cultural. The demand structure is dynamic, changing in response to changes in the economy and government policy. Material incentives can aid in improving demand structure. * **Opportunities Structures:** Structures for Opportunities: This structure is required in order to boost the chances of entrepreneurship. The availability of capital, managerial and technology capabilities, and information about production processes, labors, and markets make up the opportunity structure. All actions related to the proper planning and operation of an industrial enterprise. * **Labors Structures:** According to Kunkel, the supply of labor cannot be compared to the supply of other material factors such as capital. He claims that labors is a function of various variables and means "men." Factory labor supply is influenced by the availability of other sources of income, traditionalism, and life aspirations. ### 7. The 'Input Completing' and 'Gap Filling' Functions in Entrepreneurship Gap filling is a fundamental trait of entrepreneurship, according to Liebenstein. In economic theory, the function of production is regarded to be well-known and well-defined. The custodian of production function knowledge, on the other hand, is not mentioned in the concept. This information is never stated where or to whom it is supposed to be provided within the organization. It is the entrepreneur's responsibility to compensate for any deficiencies or weaknesses. All of the inputs in the manufacturing function cannot be marketed since some of them, such as leadership and motivation, are ambiguous in nature and have a low output. This "gap-filling" procedure has a significant impact. The activity of "gap-filling" gives rise to "Input-Completing," a critical function in entrepreneurship. He has marshaled all inputs in order to achieve the desired results. ### 8. Entrepreneurship Function of Group Level Patters At the individual level, Frank W. Young was hesitant to adopt qualities of entrepreneurship. Instead of individuals, he claims, one must seek out clusters that can be classified as entrepreneurial groupings, as groups with greater differentiation, we can react. He defined 'creativeness' or 'solidarity' as the extent to which group members generate, preserve, and present a coherent description of their position; and 'diversity' as 'differentiation', rather than coherence, of the group's social meanings. In comparison to its acceptance, a group with a larger institutional degree and vocational variety likely to be more innovative. ### Exercise 1.5 Among the different theories, which would you choose to apply if you engage in entrepreneurship? Explain your answer. Place your hand-written answer in a separate sheet of paper. ## Lesson 3. Entrepreneurial Skills **Lesson Learning Outcomes:** At the end of this lesson, you are expected to: * apply the different entrepreneurial skills in different context of your personal life; * elaborate the interconnectedness of the entrepreneurial skills in a concept map; and * show the different entrepreneurial skills by making a video presentation. ## Warm-up Activity Draw the image below in a separate paper and write inside the image your talents and capabilities. Underline or highlight the one that you think stands out the most. ## Analysis Which of your identified talents and attributes do you believe will be most valuable in your career as an entrepreneur? ## What are entrepreneurial skills? Technical expertise, leadership and business management skills, as well as creative thinking, are all examples of entrepreneurial abilities. Because entrepreneurial talents can be applied to a wide range of professions and sectors, refining your entrepreneurial abilities may involve the development of a diverse set of skills. | Customer Service Skills| Financial Skills | Critical Thinking Skills | Business Management | Teamwork and Leadership | Time Management and Organizational Skills |Branding, Marketing and Networking Skills | Communication and Listening | Analytical and Problem-Solving Skills | Strategic Thinking and Planning | Technical Skills | |---|---|---|---|---|---|---|---|---|---|---| |   |   |   |   |   |   |   |   |   |   |   | ### 1. Business management skills Successful entrepreneurs frequently rely on their business talents to run and expand a business or brand. Improving your capacity to multitask, distribute work to subordinates, and make decisions about your company's health and profitability are all part of developing your business management skills. ### 2. Teamwork and leadership skills Assuming leadership roles and working as part of a team can also assist you in becoming a successful entrepreneur. You will almost probably operate as both a supervisor and a team member as a business owner, and you will need to rely on solid leadership skills to motivate your employees. ### 3. Communication and listening Entrepreneurs and business owners should focus on their communication skills as well. From active listening to talks during meetings, being able to communicate effectively can help you cooperate with people to improve your business. In the same way, excellent communication can help you boost brand recognition. Effective and clear messaging sent via email, content marketing, social media, and other advertising channels, for example, can have a favorable impact on how you reach your target market. ### 4. Customer service skills Regardless of the type of business you start as an entrepreneur, you may need to develop great customer service skills. From talking with potential clients to exploring partnership prospects, effective customer service skills may help you connect with your consumer base and ensure your brand is providing the items or services your market need. ### 5. Financial skills Managing your company's finances is a crucial aspect of being a business owner. Working with a financial planner, reading financial guidebooks, and using financial software to organize and track your business's financial procedures are all ways to improve your financial skills. ### 6. Analytical and problem-solving skills Critical thinking skills, like analytical skills, may be essential for the growth of your overall entrepreneurial ability. Decision-making and problem-solving can be aided by the ability to analyze problems, conditions, projects, and activities from several perspectives. Critical thinking abilities may be required for strategic planning and assessing the techniques you're using to make changes or improve your business strategy as needed. ### 7. Critical thinking skills Critical thinking skills, like analytical skills, may be essential for the growth of your overall entrepreneurial ability. Decision-making and problem-solving can be aided by the ability to analyze problems, conditions, projects, and activities from several perspectives. Critical thinking abilities may be required for strategic planning and assessing the techniques you're using to make changes or improve your business strategy as needed. ### 8. Strategic thinking and planning skills Strategic thinking can benefit from critical thinking skills. Entrepreneurs who have built brands and businesses are likely to have devised growth and development strategies for their enterprises using their strategic planning talents. Being a successful entrepreneur necessitates preparation, and being able to think strategically can assist you in identifying ways to outsmart your competitors, expand your market reach, or implement effective techniques to meet your goals. ### 9. Technical skills Software solutions for financial analysis, planning, marketing, and other company tasks are easily available, so strengthening your technology abilities can be really beneficial. Entrepreneurs with excellent technological skills may manage projects, track sales and revenue, and evaluate business growth using software and other digital tools. ### 10. Time management and organizational skills Entrepreneurs must also be able to organize and manage their time. Two tactics that can help you develop these skill sets include breaking down work into manageable to-do lists and setting deadlines and fair objectives for yourself and your team. You might also employ technology to organize your business files or hire an office assistant to assist you with paperwork, business documents, and customer files. ### 11. Branding, marketing and networking skills Entrepreneurs may spend the majority of their time marketing and networking with other professionals in order to promote and build their businesses. Being able to create and implement effective branding and marketing strategies is a crucial component of becoming an entrepreneur. You can begin by taking a free online course on branding and marketing essentials and networking with other companies. As you build these skill sets, you'll be able to see more success as an entrepreneur. (Team, 2021) ### Exercise 1.6 1. Elaborate the interconnectedness of the entrepreneurial skills in a concept map. Will an entrepreneur succeed if one of two of these entrepreneurial skills are absent? Explain your answer. Use a short bond paper in this activity. 2. Make a video presentation of the different entrepreneurial skills. Send the soft copy of your video through email or messenger. ## Lesson 4. Attributes, Qualities, and Characteristics of an Entrepreneur **Lesson Learning Outcomes:** At the end of this lesson, you are expected to: * explain through life experiences the attributes, qualities and characteristics of an entrepreneur; * make a slogan about the attribute, qualities and characteristics of an entrepreneurship; and * write a journal reflection how the attributes, qualities and characteristics may affect an entrepreneur. According to J. Camposano (2010), here are the different attributes of an entrepreneur: 1. **Self-awareness.** An entrepreneur knows himself. His business is based on his expertise in a certain field and definitely enjoys doing things that he's good at. 2. **Self-motivated.** It is considered one of the most important trait of an entrepreneur. It is the will and conscious decision to move forward and keep improving oneself and refusing to take a "NO" as a hindrance. 3. **Risk-taker.** Entrepreneurs are risk-takers. They work harder when they are challenged, and is not afraid to get out of their comforts zones. However, being a risk taker does not mean that one has to be careless. For an entrepreneur, all risks are calculated, and assessed for possibility of success or failure. They study and analyze every situation before making any decision. 4. **Courage.** An entrepreneur should be a risk-taker, therefore, he should be willing to take on risks. 5. **Innovative.** Entrepreneurs are considered creative, having the eye to see any opportunity and ideas from everyday things. Exploring the unknown is their forte and will do things in new or different ways. 6. **Opportunity-seeking.** A real entrepreneur sees opportunities in every situation and acts on these opportunities. He also seeks to fill the gaps in the market. 7. **Confident.** As entrepreneurs, one should be confident in everything he does. He believes that he can, in return, his customers believes he will. He has no room for doubts and believes in his capabilities as an innovator. 8. **Positive Thinkers.** Entrepreneurs always look on the bright side of things, however, avoids toxic positivity. Like how a certain song goes, “there's a rainbow always after the rain", that's how he looks at every problems and hurdles that life throws at him. In all aspects of his life, an entrepreneur radiates positivity. 9. **Patient.** With the devastation brought about by this COVID-19 pandemic, a lot of businesses has closed down. For the faint of heart, this has been a greatest challenge to the point of closing business operations for good. However, an entrepreneur should be patient. He knows that all these will come to an end, and it all takes patience and perseverance in order to survive this ordeal. For entrepreneurs who have just started, patience is also the key. 10. **Demand for efficiency and quality.** An entrepreneur has a standard, and he always aims for high, but realistic, results in every undertaking especially in providing the best product/service that he offers. In the book entitled **_The Achievement Challenge_** by Don Beveridge, characteristics of an entrepreneur was enumerated. 1. **Entrepreneurs are in Good Physical Health** Entrepreneurial processes takes a lot of energy and effort to accomplish, therefore, one should on top of his health. 2. **Entrepreneurs have Superior Conceptual Abilities** In addition to basic skills, entrepreneurs should be able to look at things from a broad perspective. The ability of the entrepreneur to recognize and relate various concepts so that he or she can meet the requirements and see potentials is critical to the success of innovations and inventions. 3. **Entrepreneurs need to Control and Direct** Being an entrepreneur entails a great deal of responsibility and accountability. As a result, there may come a time when the entrepreneur must seize complete control and steer the venture to a much better position. 4. **Entrepreneurs have the Broad Thinking of the Generalist** Entrepreneurship necessitates familiarity with a variety of business tasks. It is not the same as working in a company where specialization is required. There are other departments in the company that can assist the employee. In contrast, in entrepreneurship, a person must be prepared to face the various tasks that the business necessitates. ### Exercise 1.7 1. Open the link below, download and print the PEC Questionnaire and Score Sheet 1. Answer it. https://kupdf.net/download/pec-questionnaire-and-score-sheet-1_5967633bdc0d60bf4fa88e93.pdf Examine your PEC profile. Identify and tabulate your strongest PEC's and your weakest ones. Write your answer at the back of your Score Sheet. 2. Make a slogan about the attribute, qualities and characteristics of an entrepreneurship. Use a short bond paper in this activity. 3. Write a journal reflection how the attributes, qualities and characteristics may affect an entrepreneur. Use a short bond paper in this activity. ## Lesson 5. Types of Entrepreneur **Lesson Learning Outcomes:** At the end of this lesson, you are expected to: * determine what type of entrepreneur are you; and * explain the different characteristics you possess which made you that type of entrepreneur An entrepreneur is someone who sees a need and then gathers the necessary labor, materials, and capital to fill it. In other terms, an entrepreneur is an individual or a group who recognizes a business opportunity, accumulates the required resources, develops a plan, and is ultimately accountable for the organization's success. ### Types of Entrepreneurs | The Dreamers | The Real Deal | The All-Talk-No-Work | The Serial | |---|---|---|---| |   |   |   |   | Following are the types of entrepreneurs: #### Classification on the Basis of Ownership * **Founder of "Pure Entrepreneurs":** Those who started the company and are its founders. They are the people who come up with a company proposal and then work hard to make it a reality. * **Second Generation Operators of Family-Owned Business:** They are those who inherited the company from their dads and forefathers. * **Franchise:** It's a business strategy in which a franchisee licenses a parent's trademarks and tried-and-true business models in exchange for recurring payments. * **Owner-Manager:** refers to a person who acquires a firm from the founder and then invests his time and resources in it. #### Classification on the Basis of Personality Traits and their style of running the Business * **The Achiever:** These entrepreneurs are driven by a passionate desire to succeed. Desire is the only thing that motivates them to achieve anything in life, to make a mark in society, and to demonstrate their superiority. They are self-driven and do not require any external stimuli. #### The Induced Entrepreneur These type of entrepreneurs are induced by some external factors to start a business. The external factors could be like: * Government Policies * Unemployment * Family Support * Facilitating Institutional Support etc. * **The Idea Generator:** These entrepreneurs are highly creative individuals who are constantly on the lookout for new company opportunities to start. They benefit from the First Movers' advantage and can profit more from the market. * **The Real Manager:** The business is operated in a systematic manner by the real managers. They examine the current business condition, assess future demands in terms of both opportunities and dangers, and then take action based on their findings. * **The Real Achievers:** The really achievers are vibrant. They want to see not just their own goals met, but also the goals of those who work for them, such as employees, suppliers, and distributors. #### Classifications based on the Type of Business * **Industrial Entrepreneur:** An industrial entrepreneur is a businessperson who is involved in the production of goods. He determines what people want and needs, and then creates products to meet their requirements and wants. * **Trading Entrepreneurs:** A trade entrepreneur is someone who engages in trading activities but is not involved in product manufacture. He locates potential markets, stimulates demand, and piques buyers' interest in purchasing a product. * **Corporate Entrepreneur:** A corporate entrepreneur is a person who uses his or her innovative skills to organize and manage a corporate endeavor that is registered under a law that gives it legal status. * **Agricultural Entrepreneur:** Agricultural entrepreneurs are persons who run businesses that are related to agriculture. Fertilizers and other agricultural inputs, for example. #### Classification on the Stage of Development * **First Generation Entrepreneur:** A first-generation entrepreneur is someone who establishes a business through inventive thinking. He's essentially a technologist who combines many technologies to create a commercial product or service. * **Modern Entrepreneur:** A modern entrepreneur is someone who starts a firm to meet the market's current needs. They engage in business endeavors that are in line with contemporary socio-cultural trends. * **Classical Entrepreneur:** A classical entrepreneur, also known as a prototypical entrepreneur, is someone whose purpose is to maximize economic returns at a level consistent with the firm's existence, regardless of expansion. #### Others * **Innovative Entrepreneur:** Entrepreneurs who are inventive are full of new ideas and provide society with novel products. Many crucial changes in our society occur as a result of these innovative entrepreneurs. An entrepreneur who offers new goods, establishes new manufacturing processes, uncovers new markets, and acknowledges the company. It's crucial to recognize that such entrepreneurs can only succeed if there has previously been some level of progress and people are yearning for change and improvement. * **Imitative Entrepreneurs:** A successful innovation is imitated by an imitative entrepreneur. They are fearful of taking risks, thus they avoid experimenting with new ideas or goods. These entrepreneurs cleverly duplicate another company's groundbreaking technological feat. Imitative entrepreneurs are appropriate for developing countries since they cannot afford the high costs of innovation. * **Drone Entrepreneurs:** Drone business owners are resistant to innovation and change. They are averse to modifying the way organizations operate in response to changing circumstances. They are defined by their unwillingness to accept change, even if it means a significant loss of profit. * **Copreneurs:** Copreneurs are husband and wife business partners that start and run a firm jointly. * **Fabian Entrepreneurs:** Fabian entrepreneurs are known for their extreme caution and skepticism when it comes to implementing any changes in their businesses. They don't usually accept new challenges. They only imitate when it is clear that not doing so will result in a loss of relative position within the company. * **Solo Operators:** These are the self-employed entrepreneurs who, if necessary, hire a few employees. Most entrepreneurs started their business in the same way they did. * **Active Partners:** Active partners are entrepreneurs who create a joint venture to carry on a business. It is critical that they all actively participate in the company's activities. * **Innovators:** Such entrepreneurs develop new items as a result of their expertise and ingenuity. Their primary focus is on research and new projects. * **Buyer's Entrepreneurs:** These are the entrepreneurs who prefer not to take on a lot of risk. Wholesalers and retailers, for example, do not assume the risk of production but do take the risk of selling a product. * **Life Timers:** These entrepreneurs consider their work to be a vital aspect of their lives. These business owners take over their family's trade, such as goldsmith or pottering. * **Challengers:** These are the people who start a business because of the difficulties it presents. They think that there is no benefit without risk. They start looking for new difficulties whenever one appears to have been met. #### Social Entrepreneur The primary motivation for a social entrepreneur is a strong desire to improve or fundamentally modify current and harmful socioeconomic, educational, environmental, or health conditions. Social entrepreneurs are innovators who specialize in developing products and services that address social issues. Their purpose, unlike that of scalable startups, is to benefit the founders. They could be non-profit, for-profit, or a combination of the two. #### Serial Entrepreneur The serial entrepreneur develops and implements business models that she or he wants to sell to shareholders, investors, or other businesses in the future. Serial entrepreneurs are known for taking on a high level of risk, demonstrating a capacity to efficiently manage the stress that comes with it because they are usually very adaptive to changing situations, and more often than not displaying a pattern of long-term success (despite some failures). Serial entrepreneurs have a strong tendency to bounce back from company and personal failures, both financially and psychologically. ### Exercise 1.8 Choose a type of entrepreneur you want to be. Explain the reason why you choose it. Place your hand-written answer in a separate sheet of paper. ## Lesson 6. Entrepreneurial Input **Lesson Learning Outcomes:** At the end of this lesson, you are expected to: * discuss the significance of entrepreneurial input to entrepreneurship. Entrepreneurial is a process with inputs and outputs that can be thought about as a series of steps. It is characterized by actions such as launching new businesses, inventing, exploring opportunities, taking risks, and managing and creating value. The following are some of the several entrepreneurial inputs that influence entrepreneurship: ### 1. Economic Inputs: The most direct and immediate impact on entrepreneurship is the economic environment. * **Capital:** It is one of the most significant requirements for starting a business. Affordability of capital for an entrepreneur to bring together land from one, machinery from another, and raw materials from yet another to make commodities. As a result, capital is viewed as a lubricant for the industrial process. This leads to a rise in profit, which is then used to boost capital formation. This shows that as