Entrepreneurship Definition, Origin & Concepts (University of Cebu)

UNIVERSITY OF CEBU - METC Alumnos, Mambaling, Cebu City ORIGIN AND NATURE OF ENTREPRENEURSHIP MRS. MA. VENUS A. ALBANDIAInstructor OBJECTIVES: Identify the origin and nature of Entrepreneurship Learn the basic concepts of Entrepreneurship and its importance. Determine conte...

UNIVERSITY OF CEBU - METC Alumnos, Mambaling, Cebu City ORIGIN AND NATURE OF ENTREPRENEURSHIP MRS. MA. VENUS A. ALBANDIAInstructor OBJECTIVES: Identify the origin and nature of Entrepreneurship Learn the basic concepts of Entrepreneurship and its importance. Determine contemporary views on Entrepreneurship.  Entrepreneurship is defined as the process of starting a business. It is a vital activity to bring about changes in the economy and society not only in a country but also of those in the world. The concept of entrepreneurship is understood in different manners by different scholars and authors. There is no one consensual definition of the term among the experts.  “Entrepreneurship entails bearing the risk of buying at a certain price and selling at uncertain prices.”- Ricardo Cantillon “Entrepreneurship is any kind of innovative function that could have a bearing on the welfare of an entrepreneur.”-Joseph A. Schumpeter (1934).  “Entrepreneurship is that form of social decision making performed by economic innovators.” -Robert K. Lamb (1952). “Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic and social risks and receiving the resulting rewards of monetary and personal satisfaction and independence.” -Robert D. Hisrich and Michael P. Peters (1998 ORIGIN and NATURE OF ENTREPRENEURSHIP  “Entrepreneurship” derived from a French word ‘Entreprendre’ which means ‘to undertake’, ‘to pursue opportunities’, or ‘to fulfill needs and wants through innovation and starring businesses’. The word first appeared in the French dictionary in 1723.  Lloyd Shefsky - in his book, entitled Entreprenreurs are Made Not Born, define entrepreneur by dissecting the word entrepreneur into three parts: entre means to enter pre means before; and neur means nerve center  Karl Vesper - describes an entrepreneur in a broader perspective by postulating that entrepreneurship is now a concern of various professions.  Author Albert Shapero - there is an agreement that we are talking about a kind of behavior that includes the following: initiative taking the organizing and recognizing of social/economic mechanisms to turn resources and situations to practical account the acceptance of risks and failure  ENTREPRENEURSHIP is a Entrepreneurship is defined as the process of starting a business. Today, entrepreneurs are PROCESS romanticized as being the cornerstones of a successful capitalist economy. and APPROACH Entrepreneurship is a Process and Approach  Entrepreneurship is a Process and Approach As a process: As an approach: it emphasizes the actions of the entrepreneur considers the entrepreneurs rather than the business opportunity as a their personalities and traits. chance to solve the problem An entrepreneur goes through rather than solving the a stage that is nurtured by his problem itself. It is focused on immediate environment and growth and expansion the kind of scenarios and orientation. experiences he has gone through. The entrepreneurial event focuses on the process of entrepreneurial activity and includes the following factors: a) Initiative: An individual or group takes the initiative. b) Organization: Resources are brought together in organization to accomplish some objective (or the resources in existing organization are reorganized.  Socio-economic benefits from Entrepreneurship a. Promotes self-help and employment b. Mobilizes capital c. Provides taxes to the economy d. Empower individuals e. Enhance national identity and pride f. Enhance competitive consciousness g. Improves quality of life h. Enhances equitable distribution of income and wealth Thank You!