THE ENTREPRENEURIAL MIND.pdf

ENTREPRENEURIAL BEHAVIOR Christian P. Tan  Table of Contents Module 1: Nature of Entrepreneurial Behavior 1 Introduction Learning Objectives Lesson 1. Historical Development of Entrepreneurship 2 Lesson 2. Evolution of Entrepreneurship...

ENTREPRENEURIAL BEHAVIOR Christian P. Tan  Table of Contents Module 1: Nature of Entrepreneurial Behavior 1 Introduction Learning Objectives Lesson 1. Historical Development of Entrepreneurship 2 Lesson 2. Evolution of Entrepreneurship 3 Lesson 3. Concept and Contribution Thought to Entrepreneurship 5 Lesson 4. The Entrepreneur 6 Lesson 5. The Importance of Entrepreneurship 7 Assessment Task 1 11 Summary 11 References 12 Module 2: Entrepreneur and Entrepreneurial Activities 14 Introduction Learning Objectives Lesson 1. Theories of Entrepreneurship 15 Lesson 2. Entrepreneurial Activities 23 Lesson 3. Attributes of Entrepreneurial Behavior 24 Assessment Task 2 30 Summary 32 References 33 Module 3: Variation in Entrepreneurship 34 Introduction Learning Objectives Lesson 1. Advantages of becoming Entrepreneur 35 Lesson 2. Drawbacks of being an Entrepreneur 36 Lesson 3. Common Myth about Entrepreneurs 37 Lesson 4. Categories and Types of Entrepreneurs 39 Lesson 5. Entrepreneurial Governance 43 Assessment Task 3 45 Summary 46 References 48 Module 4: Female Entrepreneurship 49 Introduction Learning Objectives Lesson 1. Female Entrepreneurship 50 Lesson 2. Female Entrepreneurship in the Philippines 50 Lesson 3. Modern Trend in Female Entrepreneurship 51 Lesson 4. The Roles and Positions of Women through Centuries54 Lesson 5. Differences between Men and Women in Business 56 Lesson 6. Characteristics of Women Entrepreneurship 56 Lesson 7. Contributions by Women Entrepreneurs to Sustainable Economic Growth 58 Lesson 8. Challenges faced by Women Entrepreneurs 60 Lesson 9. New Leadership Development Paradigm in Women 62 Assessment Task 4 64 Summary 64 References 65 Course Code: ENT. 1 Course Description: This course enables the students to enumerate and identify entrepreneurial traits, behavior and competencies. During the course, the student should be able to perform self- assessment to determine their level of predisposition to entrepreneurs. It also includes personal entrepreneurial competencies, management styles, business ethics, responsibilities, and duties of entrepreneurs. Course Intended Learning Outcomes (CILO): At the end of the course, students should be able to: 1. Recognize entrepreneurial traits, behavior and competencies. 2. Analyze personal entrepreneurial competencies. 3. Evaluate management styles, business ethics, responsibilities and duties of an entrepreneur. Course Requirements: ▪ Assessment Tasks 60% ▪ Major Exams 40% Periodic Grade 100% PRELIM GRADE : 60% Assessment Task + 40% Prelim Exam MIDTERM GRADE : 30% Prelim Grade + 70 % (60% Assessment Task + 40% Midterm Exam) FINAL GRADE : 30% Midterm Grade + 70 % (60% Assessment Task + 40% Final exam)  MODULE 1 THE NATURE OF ENTREPRENEURIAL BEHAVIOR Introduction Entrepreneurial behavior has long been a core of entrepreneurial education which investigates various aspects of entrepreneurship development, competencies and business ventures. This module will review the background of the entrepreneurship and its growth. Entrepreneurs and the small business sector have become recognized as important factors that determines an economy's fundamentals. Essentially, the lessons will help students understand the essence of entrepreneurship and will ultimately help them improve their entrepreneurial skills. Learning Outcomes At the end of this module, students should be able to: 1. Outline the historical origin, context, and evolvement of entrepreneur. 2. Emphasize the impact of entrepreneurship and its significance to entrepreneurial behavior. 3. Characterize who the entrepreneur is and highlight his significant contribution. 5 Lesson 1. Historical Development of Entrepreneurship Although the exact beginning of entrepreneurship is unknown, there are some signs that it may have started during the European Middle Ages. The French term "entreprendre," which essentially means "to undertake," is the source of the English word "entrepreneur." In Malay, this is equivalent to the verb "to take over." Wealth creation through entrepreneurship is a dynamic process. A person who takes on the risk of "equity," dedicates their time and profession, or gives value to a good or service creates wealth. It is the concept of creating something new while taking the time and effort to adjust to the current dangers in the areas of finance, society, and psychology and gain advantages in terms of money, fulfillment, and independence. The following timeline shows several of the most prominent entrepreneurship academics and think tanks (French, English, American, German, and Austrian) whose perspectives have helped to shape and from which their ideas have developed. Schools of thought are simply groups of people who may or may not have known each other personally, but who hold similar views or philosophies. Figure 1. Historical Development of Entrepreneurship 6 Lesson 2. Evolution of Entrepreneurship (Terentyeva and Korneyko, 2017) Table 1. The evolution of views on the economic nature of entrepreneurship Date Author of definition Content of entrepreneurship 1725 Richard Cantillon An entrepreneur is a subject of market relations, able to (1959) predict, to take risks, to take responsibility for decisions in standard and risky situations. 1776 Adam Smith (2007) An entrepreneur is guided by his own benefit. Pursuing his own interest, he serves the public interest best. 1830 Jean-Baptiste Say An entrepreneur promotes a rational combination of factors of (1896) production on the basis of transfer of resources to the sphere of higher productivity. 1912 Josef Schumpeter The main thing in entrepreneurship is the implementation of (1936) new combinations, while the independence and the ownership are not the fundamental characteristics of entrepreneurship. 1964 Peter Drucker Entrepreneurship is a concrete activity, practice, the content of (1985) which is the innovation in all spheres, including in management. Profit is not the main objective of entrepreneurship. 1975 Israel Kirtsner The entrepreneurial element is the vigilance of the individuals (1998) to potentially profitable opportunities. He considers entrepreneurship as arbitration or as an activity leading to equilibrium. The essence of entrepreneurship, as shown in Table 1, relates to the sense of production relations and socio-economic ties. At each point of the development of the market economy, businessmen have sought to achieve their objectives and roles. In short, the key concern of entrepreneurship was the field of trade, since it was the initial accumulation of capital and the conception of a market economy took place. 7 2.a Definitions in 16th, 17th and 18th Century Earliest period, stated that the concept of entrepreneurship began as early as Marco Polo, who is coming to the Middle East for business. Marco Polo has signed an agreement with the capitalists to market their products. Under the deal, the merchant adventurer lent at a rate of 22.5 percent, including insurance. “Capitalist was a passive risk carrier, and a merchant adventurer took an active part in trade, taking both emotional and physical threats.” Whenever the merchant adventurer managed to sell the goods and completed the journey, the proceeds are shared with the capitalist taking most of them up to 75%, while the merchant adventurer settled for the remaining 25%. In the 17th century, the evolution of entrepreneurship can be linked to the relationship between risk and entrepreneurship. Entrepreneur is a person who has entered a contractual agreement to provide a business or to provide the goods that have been agreed upon. The price of the contract shall be set. The businessmen are then solely responsible for the company's gains and losses. The monopoly of French trade eventually led to the failure of the company. Merchants, farmers, craftsmen, and so is an entrepreneur, they buy products at a certain price and sell them at a price that is unknown, with risks. Throughout the 18th century, the person with capital was separated from the person who required money. The entrepreneur was distinguished from the provider of money. Another explanation for this distinction was that industrialization was taking place all over the world. Thomas Edison, founder of a variety of inventions. He was designing new innovations and was unable to fund his own inventions. Edison was a resource consumer or an entrepreneur, not a manufacturer or a venture capitalist. 2.b Definitions in the 19th and 20th Century Entrepreneurs are not always aligned with management in the 19th and 20th centuries. The entrepreneur organizes and manages a firm for personal benefit. Materials consumed in the sector, for the use of land, for the services that it employs and for the resources that it needs. The role of entrepreneurs in the middle of the 20th century is to reinvent or fundamentally change the pattern of production through innovations. For example, Edward Harriman, who rearranged the U.S. railroad, and John Morgan, who set up his large banking house by restructuring and financing the country's enterprises. 8 2.c Definitions in the 21st Century Entrepreneurs is considered as the symbol of the Free Enterprise economy in the 21st century. Entrepreneur of the century has created many goods and services and is able to face a lot of market risks. In 1995, Hisrich, Peter and Shepherd found an entrepreneur to be the manager who monitors, systematizes, orders raw materials, arranges services, deploys his own inventiveness, skills, designs and manages the company. Lesson 3. The Concept and Contribution Thought to Entrepreneurship (Kuratko, 2019) Key Concepts of Entrepreneurship Innovative and imaginative approach to the market and the manner in which a new company is created. Such a response can actually occur in any realm of social activity, enterprise, agriculture, education, social work, etc. Main drivers of economic growth and job creation. This offers many people job options that suit their needs better than wage jobs. In addition, self-employment or start-up is the reaction of large numbers of people to job losses in the ongoing global economic crisis. Entrepreneurship is the act of becoming an entrepreneur- a French word meaning one who undertakes an undertaking. Entrepreneurs pool capital, including technology, finance and business skills, in an attempt to turn inventions into economic goods. Table 2. Concept and Contribution Thought to Entrepreneurship 9 Lesson 4. The Entrepreneur (Kuratko, 2019) The Entrepreneur The entrepreneur is a 'heart of entrepreneurship' profession. The entrepreneur can be described as the agent by whom the spirit of enterprise is expressed. The role of entrepreneurship in economic growth provides a company with a competitive advantage, absorbs human capital and contributes to socio - economic development. Entrepreneurs are the key drivers that foster economic and social development in community. Entrepreneurs are the designers of creation who conceive of the possibilities with strong determination and the capacity to sustain development. In simple terms, an entrepreneur is "a person who creates and manages a business for profit and growth." Significant Definition of Entrepreneur Entrepreneurs are often seen as state resources to be promoted, encouraged and compensated to the fullest possible extent. Entrepreneurs will make a difference in our way of living and working. In essence, in addition to creating income from their business operations, they also establish employment and the opportunities for a fair economy. Entrepreneurs are people who turn dreams to reality. They are the producers of wealth. This self-created wealth isolating the economy from downturn and helping to improve the local economy. The Oxford Dictionary defines an entrepreneur as “A person who sets up a business or businesses, taking on financial risks in the hope of profit”. International Encyclopedia defines an entrepreneur as “An individual who bears the risk of operating a business in the face of uncertainty about the future conditions”. An entrepreneur is the one who always searches for change, responds to it and exploits it as an opportunity. Innovation is the specific tool of entrepreneurs, the means by which they exploit changes as an opportunity for a different business or different service Entrepreneur is a person who pays certain price for a product to resell it at an uncertain price thereby making decision about obtaining and using resources while assuming the risk of enterprise.” 10 Lesson 5. The Importance of Entrepreneurship (Butler, 2020) Entrepreneurship is much more than just formation of a company. It's a continuous process of vision, transition, and development. This requires a commitment of enthusiasm and energy to the development of new concepts and new products. An environment where creativity can flourish and where entrepreneurs can seek out new ideas and encourage many ought to be maintained. The following are the important contribution of entrepreneurship Helps in the creation of capital by putting together people's savings and investments; Offers large-scale job opportunities and raises people's buying power; Helps to reduce the accumulation of economic right (right to control the output factor in a few hands). Entrepreneurial Significance Beginning a small business unit to set up large business concerns. The introduction of new entrepreneurship frameworks into the existing education system not only paves the way for economic growth, but also offers more work opportunities to young entrepreneurs who are starting small projects. Entrepreneurship capital Described as "the regional endowment of factors conducive to the creation of new enterprises" and has a significant impact on the economic stability of the economy. Nations with higher levels of entrepreneurship capital have higher rates of production and yield, while those without entrepreneurship capital continue to produce lower production levels and performance. The following are reasons why entrepreneurship capital is essential to the economy 1. It Develop New Company Path-breaking business transactions, in the context of new products and services, lead to new employment that can have a descending or virtuoso effect on the economy. Stimulating related companies or sectors that finance the new venture will lead to more 11 economic development. For example, in the 1990s, a few IT companies established the Indian IT industry as a backend programmer hub. The industry soon gained pace in the domain of its own programmers. More importantly, millions many others have benefited from it. Businesses in associated sectors, such as call center operations, network repair firms and hardware vendors, thrived. Education and training programs have nurtured a new generation of IT workers promising better, higher- paying jobs. Infrastructure construction organizations and even real estate firms capitalized on this increase as workers moved to job centers seeking new, better lives. 2. Add to National Income Entrepreneurships create new capital. Established companies may stay restricted to the limits of existing markets and can, in terms of sales, collapse below the glass ceiling. New and improved business models, products or innovations allow new markets to be built and new wealth to be generated. In turn, the ripple effect of increasing employment and higher earnings contributes to better national incomes in the form of higher taxation revenues and higher government spending. This revenue can be used by the government to invest in other, failing sectors and human resources. Although some current players may be out of date, the government can ease the impact by diverting surplus resources to retraining workers. 3. Create Social Change By their innovative introduction of new products and services, entrepreneurs break away from tradition and implicitly encourage democracy by growing reliance on outdated systems and technologies. Ultimately, this results in a higher quality of living, more values and more economic prosperity. Water availability in a water-scarce area, for example, can often cause people to stop working to obtain water. It will have an impact on their businesses, their competitiveness and their earnings. Imagine a groundbreaking, compact, low-cost, flow- based pump that can automatically fill people's home water containers. More space for jobs means economic growth. 12  For a more modern example, smartphones and their smart apps have revolutionized work and play around the globe. Smartphones are not just for rich countries or rich people. As China's smartphone market and smartphone industry prove, technological entrepreneurship will have significant, long-lasting impacts on the entire human race. In fact, technology globalization ensures that entrepreneurs in less developed countries have access to the same resources as their counterparts in wealthier countries. They do have the advantage of a lower cost of living, so that a young person entrepreneur from an underdeveloped country can take advantage of the multi-million-dollar potential of an established company from a developed world. 4. Community Development Entrepreneurs actively endorse business projects by other like-minded individuals. We also participate in community-based initiatives and provide financial assistance to local charities. This allows further advancement beyond the reach of their own undertakings. Many successful businessmen, such as Bill Gates, have used their money to fund good causes, from education to public health. The attributes that make an entrepreneur are the same attributes that inspire an entrepreneur to move things forward. 5. The Role of States Regulations play a crucial role in identifying business opportunities, but regulation involves a fine balancing act on the part of the regulatory authority. Unregulated entrepreneurial activity could even lead to unwanted social outcomes, including unfair market practices, widespread corruption, financial crisis, and even criminal activity. The fascinating relationship between entrepreneurship and economic growth has critical insights and inferences for policy makers, development agencies, business owners, change agents and charitable donors. When we consider the advantages and disadvantages, a pragmatic approach to entrepreneurship would certainly have a positive effect on the economy and society. 13  Assessment Task 1 Reflection Activity: Write a reflection about your reason of choosing to become an entrepreneur. Summary The word entrepreneur is of French origin- from the word “entreprendre” which simply means “to undertake”. The key concepts of entrepreneurship are: the creative and innovative response to the environment and the process of giving birth to a new business, the key driver of economic growth and job creation, entrepreneurship is the act of being an entrepreneur. The definition of entrepreneurship has undergone considerable change for more than two and a half centuries. However, the definition of entrepreneurship is not simple. As the idea of entrepreneurship is complex in its substance, it is affected not only by economic factors, but also by sociological, psychological, legal, cultural and religious values. Over the years, social scientistshave interpreted the theory of entrepreneurship differently in line with their expectations and the economic climate. References Butler, E. (2020). An Introduction to Entrepreneurship Institute of Economic Affairs Burton, G. (2017). Entrepreneurship and Small Business Management Library Press Kuratko, D. (2019). Entrepreneurship Theory, Process, and Practice Cengage Terentyeva, T. & Korneyko, O. (2017). The evolution of views on the economic nature of entrepreneurship Revista https://www.revistaespacios.com/a17v38n62/a17v38n62p33.pdf 14  MODULE 2 ENTREPRENEUR AND ENTREPRENEURIAL ACTIVITIES Introduction The concept of entrepreneurship includes the development of value through the convergence of resources, risk-taking, technology and human talent. It's a multifaceted term. The distinctive characteristics of entrepreneurship over the years are: creativity, high- performance flexibility, organizational development, group-level operations, management skills and leadership, entrepreneurship filling holes. There are some entrepreneurship hypotheses that can be explained from the point of view of economists, sociologists and psychologists, which will be explored in this section. Over a period of more than two and a half centuries, these ideas have been endorsed and promoted by numerous thinkers. Let us understand the historical context of entrepreneurship, entrepreneurial spirit and the skills of entrepreneurs that they'd have in order to succeed. Learning Outcomes At the end of this module, students should be able to: 1. Outline the various theories of entrepreneurship that highlight its functions. 2. Identify the personality traits and characteristic of successful entrepreneurs. 3. Analyze the roles of an entrepreneur objectively. 4. Identify the key competencies of an entrepreneur. 15 Lesson 1. Theories of Entrepreneurship (Kuratko, 2019) Joseph Massie observes, “However, because of the diversity of approaches to the study of entrepreneurship, there is difficulty in defining just what entrepreneurship is and identifying just who is an entrepreneur.” There are differences of opinion regarding the growth of entrepreneurship. These views can be categorized into three parts: A. Economist’s view Entrepreneurship and the entrepreneur had already been a point of interest to the economy since 1755. The term "entrepreneur" was presented into economics by Cantillon, but the entrepreneur was first given prominence by Say. It has been translated into English as 'merchant,' 'adventurer' and 'employer,' although the precise meaning is 'the project entrepreneur,' James Stuart Mill popularized the term in England. B. Sociologist’s view: Sociologists claim that entrepreneurship is more likely to arise from a particular social community. According to them, social pressures are accountable for growing entrepreneurship through societal norms and role expectations. Social-cultural ideals are the driving force of economic activity that gives rise to entrepreneurship. In this sense, Weber's and Cocharan 's theories are primarily sociological in nature and worth noting. C. Psychologist’s view: The definition of entrepreneurship growth has been introduced, explained and interpreted differently. Many of those who have highlighted the psychological dimensions that lead to entrepreneurial performance are Joseph Schumpeter, McClelland, Hagen and Kunkal. According to psychologists, entrepreneurship is more likely to occur when a culture has an ample supply of individuals with specific psychological characteristics. The primary features are the following: systemic ability to view things in a different way; the strength of will and mind to conquer the set patterns of thought; the desire to do something about it, 16  To fulfill a dream, Ability to endure social objections; The strong need for results. Theory of Innovation The dynamic theory of entrepreneurship was first proposed by Schumpeter who believed entrepreneurship to be a catalyst that disrupts the steady circular flow of the economy and thus initiates and sustains the cycle of growth. Joseph Schumpeter has developed a well- known innovative entrepreneurship theory. Starting with 'fresh combinations' of the factors of production-which he concisely explains as innovation-the entrepreneur stimulates the economy to a fresh stage of growth. Entrepreneur inventions are responsible for the rapid economic growth of any country. He referred to different combinations of factors of output, and Schumpeter attributed the position of innovator to an entrepreneur who is not a man of ordinary managerial skill, but one who creates something entirely new. Innovation may involve any of the following: Innovation of new products: the launch of a new product that customers are not yet familiar with or the creation of a new version to an existing product. Innovation in novel techniques or production methods: the implementation of a new method of production which has not yet been checked by practice in the manufacturing sector involved, which must by no means be based on a technically new invention and which may also operate in a new way for the commercial handling of a commodity; The opening up of a new market: the opening up of a new market which is a market in which the relevant branch of the producer of the country concerned has not yet entered, whether or not such a market existed until the opening of the market. Entrepreneurs can find a new source of supply of raw materials: the acquisition of a new source of supply of raw materials and Management innovation-reorganization of the industry: the implementation of a new organization of any industry. 17  Figure 2. Innovation Theory of Entrepreneurship Need for Achievement Theory of McClelland According to McClelland, the characteristics of the entrepreneur have two characteristics: first, to do things in a different and improved way, and second, to make decisions under uncertainty. McClelland stresses achievement focus as a primary element for entrepreneurs. Individuals with a high-performance mindset are not impacted by value of money or any other external motivation. Profits and incentives are merely benchmarks for measuring the success of high-performance entrepreneurs. People with high achievement (N-Ach) are not affected by money incentives compared to people with low achievement. Such latter styles are prepared to work harder on money or other external rewards. On the opposite, income is merely a measure of progress and competence for people with a strong desire for achievement. According to him, as a result of one's life experience, a person acquires three types of needs. Such three requirements are as follows: Achievement Required. A desire to succeed, to progress, and to expand. The need of strength. A desire to dominate or manipulate others and circumstances. Want to be associated. A desire for fun and near interpersonal relationships. McClelland 's analysis has shown that there are five main components to the N-ach trait: (a) responsibility for problem solving, (b) setting goals, 18  (c) reaching goals through one’s own effort, (d) the need for and use of feedback, and (e) a preference for moderate levels of risk-taking. The person with a high level of need is a potential entrepreneur. The basic attributes of a high-achieving (entrepreneur) can be summarized as follows: They set moderately realistic and attainable goals for them. They are taking calculated risks. They prefer circumstances in which they can take full responsibility for solving problems. They need clear input on how well they're doing. Their desire for accomplishment exists not only for the sake of economic incentives or social recognition, but also for the sake of personal achievement. Leibenstein’s X-Efficiency Theory This theory, originally formulated for another reason, and has recently been used to examine the position of an entrepreneur. X- efficiency The degree of inefficiency in the use of capital within the firm: tests the extent to which the firm does not understand its competitive potential. According to Leibenstein, the difference between the real output and the average output due to that input is an indicator of the degree of X-efficiency when the input is not used effectively. Leibenstein identifies two main roles for the entrepreneur: 1. a gap filler and 2. an input completer Such functions are based on the fundamental principles of the X-efficiency principle. Therefore, it is clear that "if not all factors of production are sold or if there are market 19 imperfections, the entrepreneur will fill the demand gaps. The entrepreneur should fill enough of the gaps to set the company in motion.” The second function is the completion of inputs, which includes making available inputs that increase the efficiency of existing production methods or encourage the implementation of new ones. The role of the entrepreneur is to optimize the flow of knowledge on the market. Figure 3. Leibenstein’s X-Efficiency Theory The theory suggests that if market imperfections exist, an entrepreneur will serve as a gap filler and an input completer. In order to use their unique abilities, they earn benefits as well as a range of individual-peculiar benefits. There are two forms of entrepreneurship, according to him. Routine entrepreneurship Deals with usual business tasks, such as coordinating business operations. Innovative entrepreneurship In his approach, an entrepreneur is creative. It includes the activities necessary to set up an enterprise where not all markets are well-established or clearly outlined. The Uncertainty-Bearing Theory of Knight In his book Risk, Uncertainty and Profit, Frank H. Knight sees the profit of the entrepreneur as a reward for bearing uninsurable risks and uncertainties. Entrepreneurship is directly related to risk-taking. Knight distinguished risk from insurable and non-insurable 20 risks. The following are some important features of this theory: 1. Risk creates Profit: Due to the risk-bearing principle, the entrepreneur is making money because he is taking risks. 2. More Risk More Gain: The degree of risk varies from one industry to another. Entrepreneurs take varying degrees of risk depending on their willingness to do so by instinct. The risk hypothesis implies that the riskier the design of the market, the greater the profit it produces. Entrepreneurs take chances to varying degrees depending on their ability to tilt. The theory suggests that the riskier the nature of the company is, the higher the level of profits generated by the entrepreneurs. 3. Profit as Reward and Cost: Profit is an entrepreneur's reward for taking risks. It is therefore also treated as part of the normal cost of production. 4. Entrepreneur’s Income is Uncertain: It identifies uncertainty with a situation where the probability of alterative outcomes cannot be determined either by an evidently due or statistical inference. The reward of the contractor is uncertain. Entrepreneur guarantees interest to the lender of capital, wages to employees and rent to the landlord. The level of uncertainty in business can be reduced by applying the consolidation technique. By pooling individual instances, the overall level of uncertainty can be reduced. Max Weber’s Theory of Social Change (Emphasis on Impact of Religion) In his theory of social change, Max Weber advocated a sociological explanation for the growth of entrepreneurship. He thought that religion had a profound effect on the growth of entrepreneurship. The religious belief and ethical value of society play a vital role in determining an entrepreneurial culture. 21  According to Weber, some religions have basic beliefs about earning and acquiring money, and some have less. He calls them 'the spirit of capitalism' and 'the adventurous spirit.' The spirit of capitalism will be created when the mental attitude of society is favorable to capitalism. According to Max Weber, driving entrepreneurial energies are created by the adoption of exogenous religious forces. Figure 4. Max Weber’s Theory Economic Theory of Entrepreneurship Economic gains naturally increase the ability of entrepreneurs to pursue diverse entrepreneurial initiatives. The relationship between the individual's inner urge and the desired economic gains has a profound impact on the development of entrepreneurial skills. Business development and economic growth take place whenever certain economic conditions are favorable. According to them, economic incentives are the main drivers of entrepreneurial activity in any country. There are several economic factors that encourage or reduce entrepreneurship in a country. Those following factors are: (a) The availability of bank credit (b) High capital formation with a good flow of savings and investments (c) Supply for loanable funds with a lower rate of interest. (d) Increased demand for consumer goods and services (e) Availability of productive resources. 22  (f) Efficient economic policies like fiscal and monetary policies (g) Communication and transportation facilities Exposure Theory of Entrepreneurship Many studies have shown that access to fresh ideas and incentives for creativity and innovation contributes to the development of a new company. Relevant inferential proof exists to support its validity. 'Tripathi, noted that access to new ideas and values was a common factor between Parsi and Hindu entrepreneurs that led them to enterprising. Education has played a very important role in introducing Indian entrepreneurs to Western ideas that lead them to entrepreneurship. The differentiated responses of the social classes to the incentives presented by the dedication of the political system to industrialization have also contributed to a phase of entrepreneurial spread. Figure 5. Exposure Theory of Entrepreneurship Political System Theory of Entrepreneurial Growth The political system can create adequate infrastructure, favorable legislation, a favorable system of taxation and procedures, provide incentives and subsidies, provide security for entrepreneurs, set up policies to promote entrepreneurship and can encourage people to enter into entrepreneurship. The Government can also set up a support system for aspiring entrepreneurs. The engagement of the political system may therefore make a major contribution to entrepreneurial growth. 23  Figure 6. Political System Theory of Entrepreneurial Growth Lesson 2. Entrepreneurial Activities (Burton, 2017) Entrepreneurial activity Enterprising human activity in pursuit of value generation, through the creation or expansion of economic activity, through the identification and exploitation of new products, processes or markets. Core Definition of Entrepreneurial Activities Entrepreneurial activities involve the entry of new markets, the creation of new products or services and/or innovations related to different business operations (new markets, innovative technologies, new products / services). Entrepreneurship can therefore be linked to both organic and acquisitive decisions. Entrepreneurial activity does not result in economic impacts alone. The cultural and social effects of entrepreneurial activity are important. These impacts may affect the smaller business environment or industry, as well as the wider natural, social and cultural environments. If we look a little more closely at the definition of entrepreneurship, we can identify three characteristics of entrepreneurial activity: Innovation. Entrepreneurship usually involves selling a new product, implementing a new technique or technology, opening up a new market or creating a new type of organization for the development or enhancement of a product. Running a business. A firm, combines resources for the production of products or services. 24 Entrepreneurship implies to set up a company to make a profit. Risk taking. The term risk means that the outcome of an entrepreneurial venture cannot be known. Entrepreneurs, therefore, are still operating under a certain degree of doubt, so they cannot know the result of many of the decisions they have to make. As a result, many of the actions they take are guided primarily by their faith in creativity and their awareness of the market climate in which they work. Lesson 3. Attributes of Entrepreneurial Behavior: Essential Characteristics of Entrepreneur that Contribute to Business Success (Burton, 2017) Convincing Factors Why We Need Entrepreneurs 90% of the world’s jobs are created by Entrepreneurs. They are Problem Solvers, Source of New Products and Innovation. It’s the Entrepreneurs- not the Central Bank - that keeps the ECONOMY moving. Personal Entrepreneurial Competencies (PECS) The qualities, characteristics, skills, abilities, knowledge and behavior that a person must possess in order to become a successful entrepreneur. Attitudinal Entrepreneurial Competencies Optimistic. Entrepreneurship is about getting up if the company fails, and improving from the loss. An entrepreneur recognizes that failure is part of an entrepreneurial phase, and that without it, progress would not have been possible. An optimistic attitude is crucial for an entrepreneur who learns to see setbacks as bargain-priced schooling for valuable business lessons learned through first-hand experience. Focus. Entrepreneurs prefer to trust in their own ability to influence the results of their actions by manipulating the social environment, rather than leaving it to chance. The successful entrepreneur is self-disciplined and has the ability to stick to schedules and deadlines. Locus of control is an individual's belief system that perceives the outcome of an occurrence as either within or beyond his personal control Grateful. Entrepreneurs know not to take anything for granted in this world. This gives 25 them the strength and versatility to respond to changes and demands, while at the same time maintaining in them the humility that teaches them that success and prosperity are not "necessary," but the fulfillment, happiness, and enjoyment that comes from one's achievements and contributions. Behavioral Competency Attributes Determination. The successful entrepreneur must be completely dedicated to succeed even if it means taking the risk. Motivation. A good entrepreneur has a passion to work hard and leaves very little in the way of making dream a reality. Devotion. A good entrepreneur needs a strong commitment to the principles and ideals on which the strategy is based. Skills. A good entrepreneur must have the skills needed to produce a product or service, or to get an idea and work it out. Perseverance. A good entrepreneur must be able to keep goals in sight and to work in it despite obstacles. Adaptation. A successful entrepreneur must be able to face up to new challenges and find creative solutions. Passion. A good entrepreneur must really enjoy what he or she is doing. Original thinking. A good entrepreneur should be able to think about a novel idea and deal with the many variables facing the business. Risk-Taker. Entrepreneurs aren't safe from fear. But they give priority to their attitude toward issues, so that lack of confidence, frustration, discontent, monotony and dissatisfaction far surpasses the constant fear of change. Managerial Competency Attributes 26 Able to Communicate The entrepreneur focuses on the development of effective communication, through written, spoken or non-verbal messages are conveyed through body language. Above all, the entrepreneur has a strong patience to hear and understand what someone else is attempting to say, and the best communicators are the first to be the best listeners. Feels a Sense of Ownership Accepting responsibility for doing things – and doing them with care and attention – means behaving like a person. Rather than viewing the problem as someone else's, the entrepreneur sees it as his or her own and takes pleasure in coming up with a solution, leaving things in better shape than they were before they met, and improving situations rather than leaving them unattended. Rather than manipulating circumstances in an effort to own them, the entrepreneur shows other people how to take care of them. In this way, the smart entrepreneur uses individual responsibility in the relentless pursuit of productivity, collaboration and overall progress. Passionate about Learning Entrepreneurs are often "self-taught" learners, which means that they learn much of what they know, not in a formal classroom setting, but on their own, by searching for information, asking questions, and doing personal research on the matter. Because of a focus on learning, true entrepreneurs are surrounded by people who either know more than they do or know things that are different from what they know. They represent the opinions of others and viewpoints that might be different from their own, for example, in order to be better students of human nature. Team Player Team players learn how to survive by using the mechanics of strategic teamwork and complex relationships. One twig can be easily snapped, but the bundle of these small twigs is stronger than the sum of its individual parts, and it can be impossible to bend, much less to break. The same goes for companies, and successful businessmen exploit teamwork to get the heavy lifting done without breaking the pace. System-Oriented Before depending on individuals, entrepreneurs focus on processes and look for 27 system- based solutions before looking for human resource solutions. When the individual does the work but falls ill or leaves, the work is under pressure. But if a program is built to do the job, everyone can step in and follow the blueprint to get the desired result. Design, implementation and development of systems is one of the most useful and rewarding skills of an entrepreneur. Gregarious Since business is all about people, entrepreneurs prefer to be outgoing socially. They are excited to share ideas, products, and services, and that excitement is contagious to their employees, clients, friends, and other contacts within and beyond the business sphere. Entrepreneurs know that firsthand, from their own experience, and they tend to be a fun- loving group of people on both sides. A Leader by Example Entrepreneurs not only lead themselves through self-motivation as self-starters who jump into tasks with enthusiasm, but are also capable of leading others. They know the importance of teamwork and understand the need to appreciate others, support them, and reward them accordingly. Real leaders should not become ineffective, because things will fall apart in their absence and they will never be able to rise to the highest degree of entrepreneurial independence and prosperity. Nor do they squander the ability of those working under their direction. Organization The successful leader knows his or her own strengths and limitations and puts together the right team and tools to achieve his or her goals. The True Entrepreneur The real entrepreneur is a dreamer whose dreams come true, an income earner whose wealth is passive. Money comes automatically from profitable ventures that deliver more success but do not require extraneous work. The money made does all the work for an entrepreneur to make more money with a snowball impact. Such women and men benefit in any situation and add to their wealth by gaining more paper properties, more profit centers and more entrepreneurial capacity. 28 Idealization Imagine the gigantic, all-encompassing dreams of creating the ideal world. Visualization Picture the ideal world as a reality and begin to clarify this vision on a daily basis, filling in more details each day. Imagine the perfect world as a reality and continue to explain this dream on a regular basis, filling in more information every day. Verbalization Start putting words into a dream, and think about it as though it had already happened. Talk to others about it as if it were real and continue to have a personal dialog with the ideal to make it happen. Materialization Through the desire and purpose to create and believe in the vision and the dream, events begin to fall into place and happen in a normal and automatic way. The vision becomes a true and concrete reality that materializes in the world and affects others, thus opening new doors to new possibilities and the birth of more dreams. Important traits for entrepreneurs to have, according to Startup Nation: 1. Vision Vision is the ability to see the dreams come to life precisely. When you start a company, you can basically see that your project is successful. A good entrepreneur has the opportunity to see the end results of the goals while striving to reach them and is fully committed to making this dream a reality 2. Passion There is very little motivation without passion. If you genuinely believe that your company will do amazing things to the world, and you love doing them, you will be successful. 29 3. Tenacity Tenacity is the idea that people can unceasingly pursue their dreams regardless of the obstacles they face. The ability to meet and resolve these obstacles is a significant factor in the success of an entrepreneur. 4. Strong work ethic Without constant supervision and direction, entrepreneurs must be able to motivate themselves and put in the time and effort necessary to be successful. 5. Confidence Entrepreneurs cannot be anxious or uncertain of themselves or their company when beginning a new venture. Confidence is a characteristic of an entrepreneur gaining power and self-confidence by achieving success and receiving recognition and admiration for others. Self- confidence is an important characteristic of an entrepreneur, as he is constantly called upon to undertake tasks and to make decisions that require a great deal of trust in himself. 6. Flexibility If you’re an entrepreneur, there isn’t a 9-to-5 working day. You have to get your business to work whenever it's needed. The effective entrepreneur must be adaptable to the changing needs of companies, workers and customers. 7. Salesmanship Entrepreneurs need to feel confident selling their goods. You 're not going to get a company if you just want the money to come through the house. 8. Money sense Entrepreneurs must be able to handle the revenues and expenses of their companies. 9. Willingness to ask for help and accept help You're not going to be able to do it all on your own. In reality, asking for help and receiving support will make you more effective in running your own company. 30 10. Resilience Being willing to step on and grow from a tough time is a hallmark of becoming a successful entrepreneur. Assessment Task 2 Entrepreneurial Quiz: Choose and encircle the best answer Personal Entrepreneurial Competencies 1. Your Mama and Granny expect you to do chores to get you ready for adulthood. Does this teach? A. Caring B. Trustworthiness C. Respect D. Responsibility 2. Monica let her teacher know she was late because she was busy finishing up homework for the previous class. A. Responsibility B. Caring C. Respect D. Trustworthiness 3. Liam takes accountability for his actions when he is running late to school. A. Responsibility B. Respect C. Trustworthiness D. Caring 4. Sonia always calls her friend Rebecca in the morning so Rebecca isn’t late for school. A. Trustworthiness B. Respect C. Fairness D. Caring 5. Justin is very considerate of his teacher’s class time. He is always on time. A. Fairness B. Respect C. Caring D. Trustworthiness 6. Fred noticed that tardiness is frequent in his school. So, he put together a club that helps motivates his classmates to be on time for school. A. Citizenship B. Respect C. Responsibility D. Caring 7. Jorge only missed one day of school, but he understands why Mary received the 31  Perfect Attendance Award. A. Respect B. Trustworthiness C. Responsibility D. Caring 8. Eddie paid the amount P416.00 restaurant check with a P500 bill. The waitress gave him P94 back. He called the waitress and gave her P10 back. A. Caring B. Fairness C. Trustworthiness D. Respect 9. Your manager asks you to provide incorrect information in a company's financial statements to support a loan application at the local bank. The manager insists it is a one- time request but you did not obey the order. A. Trustworthiness B. Caring C. Fairness D. Respect 10. Jason is the fastest worker on the audit of a company for the firm Zits LLP. Other Zits workers take twice as long to complete the equivalent amount of work as Jason. One day Jason is approached by the other workers and is asked to slow down “You are exceeding the time budget for the audit and making the rest of us look bad,” said one staff member. A. Respect B. Citizenship C. Responsibility D. Caring Summary A coordinated and comprehensive theory of entrepreneurship are propounded by the different eminent social thinkers: 1. Innovation Theory of Schumpeter; 2. Need for Achievement Theory of McClelland; 3. Leibenstein’s X-efficiency Theory; 4. Risk Bearing Theory of knight; 5. Max Weber’s Theory of Entrepreneurial Growth; 6. Hagen’s Theory of Entrepreneurship; 7. Thomas Cochran’s Theory of Cultural Values; 8. Theory of Change in Group Level Pattern; 9. Economic Theory of Entrepreneurship; 10. Exposure Theory of Entrepreneurship; 11. Political System Theory for Entrepreneurial Growth. There are different opinions on the emergence of entrepreneurship. These opinions may be classified into three categories: 1) Economist’s view, 2) Sociologist’s view, 3) Psychologist’s view. 32  Entrepreneurial activity means; the enterprising human action in pursuit of the generation of value, through the creation or expansion of economic activity, by identifying and exploiting new products, processes or markets. The basic attributes of entrepreneurial behavior: Essential characteristics of entrepreneur that contribute to business success can be divided into three: 1) Attitudinal Entrepreneurial Competencies: Optimistic, Focus, Grateful; 2) Behavioral Competency Attributes: Determination, Motivation, Devotion, Skills, Perseverance, Adaptability, Passion, Creative thinking, Not Afraid of Risk or Success; 3) Managerial Competency Attributes: Able to Communicate, Feels a Sense of Ownership, Passionate about Learning, Team Player, System-Oriented, Gregarious, A Leader by Example, Organization The true entrepreneur is a dreamer whose dreams come true, and an income earner whose income is passive. References Burton, G. (2017). Entrepreneurship and Small Business Management Library Press Kuratko, D. (2019). Entrepreneurship Theory, Process, and Practice Cengage 33  MODULE 3 VARIATION IN ENTREPRENEURSHIP Introduction In this module the students will have a better understanding on the variations of entrepreneurship, particularly on the pros and cons of being an entrepreneur. Misconceptions about what it’s like to be an entrepreneur will be tackled as well. In addition to this, students will have a better understanding on the types and categories of entrepreneurs and the concept of entrepreneurial governance. Learning Outcomes 1. Explain why people want to be an entrepreneur. 2. Identify the various kinds of prospects for entrepreneurs. 3. Distinguish between businessmen, small business owners and managers. 34 Lesson 1. Advantages of becoming Entrepreneur (Burton, 2017) Why Start Your Own Business? 1. A flexible schedule – both in terms of when and where you work. With today's technology, it's important that you're with your family all day, that you can run your business from home. It's not only the freedom to tell what hours you 're going to work, but it also includes every aspect of the way a company runs. These can include environmental awareness, social responsibility and, in certain cases, the value of your own culture. 2. Satisfaction of the ego Company leaders have great ways to get involved in their communities. Membership of chambers of commerce, industry awards, civic panels and other board members reflects the personal respect and satisfaction of certain businessmen. 3. Learning Opportunities Not only in the field, as well as in the fields of accounting, marketing, public speaking, website design, search engine optimization, how to delegate, how to take risks, how to be more creative and think of issues in other ways. Perhaps significantly, when to fight, what it’s like to be refused, and also get life back on track again. This provides a range of incentives for a comprehensive understanding of the various business functions. 4. It's fun and satisfying. It's fun to build anything from nothing. Particularly if you're in love in what you're doing. It's such a wonderful feeling to do something out of none. It's so pleasant to hire excellent talent to work for a firm. 5. Equity Building If you have a company, you own all the factors of production that could turn into substantial value. This leverage is capital that can be sold to someone else or passed down to the offspring. You would have the freedom to add other family members to the business 35 and prepare the transfer among families. It's much more rewarding than having a gold watch to retire from work. 6. The salary makes sense for greater financial success. You get paid extra when you make money. You're going to get the money. Entrepreneurs have been shown to have a huge and even personal wealth through the growth of their businesses. Despite a high financial risk, running your own business gives you a chance to make more money than if you were working for someone else. 7. You are viewed as a leader that creates the opportunity for philanthropy. This increases confidence. Customers say, "You've got a great business model" and all kinds of other congratulations that are really cool. If you are financially wealthy, you can choose to give away some of your wealth in the way you want to support your community or your favorite organizations. Seeing the ability to change people's lives through your work is professionally satisfying and inspiring for entrepreneurs Lesson 2. Drawbacks of being an Entrepreneur (Burton, 2017) Unguaranteed Income. A guaranteed paycheck is one of the biggest advantages that workers have as opposed to those in search of entrepreneurialism. It ensures that businessmen work with lower rates of financial stability for themselves and their families. You are the one required to do all of your updates. Once you start, you will certainly be accountable for either doing or managing all that needs to be done. When you're an entrepreneur, there's a fair chance that you're using technology to make things happen. Financial risk. There are a few new opportunities which can be launched from none. Most entrepreneurs start debt because they need to fund initial start-up costs. The financial resources needed to set up and grow a business can be extensive. There will be times, particularly in the first few years, when the business does not produce sufficient money for you to thrive. Taxes to Pay. When you earn money as an entrepreneur, you will become your own boss in the light of the tax laws of the Philippines. That ensures that, in addition to your own, you are 36 accountable for the employer's share of Social Security and Healthcare. Time. People launch a business so that they have plenty of time to spend with their love ones. Sadly, handling a business firm is very time consuming. Stress. As a business owner, you are the business. There are a variety of items to think about, competition, staff, bills, equipment breakdowns. Being the shareholder, you are always responsible for the well-being of your workers. Lesson 3. Common Myth about Entrepreneurs (Kuratko, 2019) Myth 1: Entrepreneurs Are Born Not Made This myth is based on the idea that certain people are genetically predisposed to be entrepreneurs. The opinion of several studies is that no one is "born" to be an entrepreneur; everyone has the ability to be one. If or not someone is an entrepreneur is a feature of the environment, life experiences, and personal choices. Myth 2: Entrepreneurs Are Gamblers Many entrepreneurs are cautious risk-takers. The belief that businessmen are gamblers is based on two sources: 1. Entrepreneurs tend to have employment that are less organized and thus face a more unpredictable range of prospects than people in conventional jobs. 2. Most entrepreneurs have a deep desire to succeed and set ambitious goals, a trait that is frequently associated with risk-taking. Myth 3: Entrepreneurs Are Motivated Primarily by Money. Although it is naive to believe that entrepreneurs are not pursuing financial incentives, money is rarely the reason why entrepreneurs start new businesses. In reality, some businessmen warn that the pursuit of money may be distracting. Myth 4: Entrepreneurs Should Be Young and Energetic. The most active age for company ownership is 35 to 45 years of age. Although it is important to be enthusiastic, investors also point to the power of an entrepreneur as their most important criterion for making investment decisions. What makes an entrepreneur "big" in 37 the eyes of an investor is experience, maturity, a good reputation, and a record of success. These requirements favor older businessmen rather than younger ones. Myth 5: All responsibility falls on the entrepreneur. Another myth about running a new venture is that it all depends entirely on the entrepreneur. It may be valid at the earliest stage, but taking it theory too seriously is often the best way to avoid burnout. Collaboration and the art of delegation have a strong role in the health of an organization. No one can do it all on their own. Myth 6: There’s a secret, “silver bullet” key to success. In industry, many successful entrepreneurs have the illusion that they have discovered some sort of hidden key to success. Nevertheless, this does not take into account the previous plans of the entrepreneur that have failed; the old-fashioned hard work and persistence they have put in; or any of the many other considerations that are required to create a successful business. The truth is that there is no single key to success. If anything, entrepreneurial success involves a key chain of ideas, individuals, and capital that must come together at the right time and place. Myth 7: Quitting is for losers. One last myth is that businessmen need to stick it out — no matter what. The reality is, however, that not every concept can bloom into a sustainable business. Successful entrepreneurs often cycle through and try out a lot of ideas before they find one with their legs. Quitting may sound like failure, but actually, it's a normal part of an entrepreneur's journey and can provide extremely valuable lessons. It is also important to know when to go away and move on to the next concept. Lesson 4. Categories and Types of Entrepreneurs (Butler, 2020) Categories of Entrepreneur Classic Entrepreneur. A classic entrepreneur is a type of entrepreneur who discovers a need that they feel they can solve and focuses on supporting themselves through their marketing campaign. Serial Entrepreneur. An entrepreneur who is always coming up with fresh ideas and 38 launching fresh companies. Serial entrepreneurs are more likely to encounter multiple entrepreneurial achievements. They are more likely to take chances and rebound from company failures. Social Entrepreneur. An entrepreneur who is motivated by a desire to help, improve and transform social, environmental, educational and economic conditions. They are motivated by an overwhelming urge to fix some of the world's main social and economic challenges, such as poverty, depravity in education, rather than an urge for benefit. Lifestyle Entrepreneur. An entrepreneur who puts passion before profit when beginning a venture in order to combine personal desire and creativity with the opportunity to make a living. Lifestyle entrepreneur deliberately selects a business model designed to grow and extend their business in order to create a long-term, sustainable and profitable working atmosphere in which they have a special interest, passion, skill, experience or high level of expertise. The types of entrepreneurs vary depending on background, country and even sector but the 5 most common types are: Innovators Hustlers Imitators Researchers Buyers Every of these various types of entrepreneurs has its own rules for business success, but most entrepreneurs have very similar challenges in terms of financing, marketing, people and even self-management. Types of Entrepreneurs According to the types of business: Trading Entrepreneur – Industrial Entrepreneur – Agricultural Entrepreneur – Service Entrepreneur According to the use of technology: Technical Entrepreneur – Non-technical Entrepreneur 39  According the Area: Urban Entrepreneur – Rural Entrepreneur According to gender: Men Entrepreneur – Women Entrepreneur Take a look at a variety of different types of entrepreneurs, their positions, and how each type affects the success of the business: 1. Innovators Innovators are the forms of entrepreneurs who come up with entirely new ideas and transform them into successful businesses. Innovative companies can also find new ways to sell their products by selecting product differentiation tactics that make their business stand out from the crowd. And sometimes it doesn't only stand out from the crowd, but actually generates a new audience. It would be an understatement to suggest that innovators like Steve Jobs, Google's Larry Page and Microsoft founder Bill Gates were obsessed with their companies. Advantages of Being an Innovate Entrepreneur: Get all the glory for the success of your business (and take all the arrows) Establish laws Minimal rivalry during the initial days Disadvantages of Being an Innovate Entrepreneur: You'll need a lot of money to bring a new idea to life Shareholders through face opposition The period of success is longer The capacity of an innovative entrepreneur to foresee a new way of thinking makes them stand out from the crowd and, in many cases, highly competitive, but it requires tremendous money, persistence and determination to bring true creativity to life. 2. The Hustler Entrepreneur Unlike innovators whose dream is gas in their car, hustlers are only working harder and eager to get their hands dirty. Hustlers often start small and think about efforts – rather than raising capital to grow their businesses. These types of entrepreneurs concentrate on small start-ups with the goal of being larger in the future. Hustlers are inspired by their aspirations and are going to work incredibly hard to achieve them. They tend to be very 40 focused and to get rid of all forms of distraction, favoring risks over short-term comfort. Mark Cuban is the prime example of a hustler. He began selling trash bags, newspapers and even postage stamps at a very young age, and later this hustle created a gold mine that was purchased by internet giant Yahoo! Advantages of Being a Hustler They will outwork most Tend to have thick skin – they don’t give up easily See disappointment and rejection as just a step in the process Disadvantages of Being a Hustler Usually prone to burn out Wear out their team members who don’t have the same work ethic Often don’t see the value of raising capital as opposed to just working harder Even though a lot of hustlers never give up, a lot of them are willing to do anything to succeed, which sadly means they have a lot of hits and misses. It takes a lot longer to fulfill their goals than any other forms of entrepreneurs. 3. Imitators Imitators are the forms of entrepreneurs that copy and improve other business concepts. They are also searching for ways to make a specific product better in order to gain an upper hand in the business. Imitators are part innovators and part hustlers who do not stick to the terms set by other people and have a lot of self-confidence. Advantages of Imitators Refining a business idea is easier and less stressful You can easily benchmark your performance with the original idea Can learn and avoid mistakes that were made by the originator Disadvantages of Imitators Their ideas are always compared to the original idea Always have to play catch-up 4. Researcher 41  Researchers will take their time to collect all the relevant information. Failure is not an option to them, since they have studied the concept from all angles. Researcher entrepreneurs generally believe in launching a company that has a high chance of success because they have worked hard to learn all facets of it. As a result, these types of entrepreneurs typically take a lot of time to launch their products and make judgments because they need a base of deep understanding. Advantages of Being a Researcher Entrepreneur Prepare for as many contingencies as possible; Write detailed, well-considered business and financial plans Focus on data and knowledge rather than on feeling the gut Do not start until they feel like they know the market Minimizes the probability of a company loss Disadvantages of Being a Researcher Entrepreneur Usually moves slowly Does not like risk and this may impede progress in a new venture Although though these types of entrepreneurs spend a lot of time studying and digging into data to ensure the sustainability of their company, they may fall into the trap of obsessing numbers and concentrating less on the operation of their business. Jeff Bezos spoke about this in a recent letter to the shareholders, saying, "All decisions will probably be made with about 70% of the knowledge you wish to provide." 5. Buyers One of the items that distinguishes buyers is their money. Such groups of businessmen have the capital and specialize in purchasing promising businesses. Buyer entrepreneurs can locate a company and determine its feasibility, continue to buy it and find the most suitable individual to manage and develop it. Advantages of being a Buyer Buying a successful company is less risky Doesn't have to think about creativity too much Should concentrate on constructing something that has already gone through the construction of a base. 42  There is already a demand for your goods Disadvantages of being a Buyer Typically, it charges a high price for good businesses Must face the possibility of buying companies that have issues you think you can turn around. Lesson 5. Entrepreneurial Governance (Burton, 2017) The goal of governance is to achieve value creation in the short and long term. The recognition of this principle is an act of balancing between change and stability. The essence of entrepreneurship is having a smart and fast response to developments in the market and the environment. This dynamic feature is the strength of any successful SME. Besides structure and discipline, successful entrepreneurs require a clear view on the fast- changing laws of value creation. Especially in SMEs, this means that the person of the entrepreneur plays a distinctive role. Entrepreneurship is a balancing act between working in the company and working on the company. These elements also form the foundation of entrepreneurial governance. To elaborate on the essence of entrepreneurial governance and explain the differences and similarities with corporate governance and clarify the impact on day-to-day SME management, paying particular attention to the fundamental changes in the area of value creation. Entrepreneurial Governance. Balance between and the optimization of the various mechanisms of good governance. The concept of corporate governance is that it allows small and medium-sized businesses to build value creation on three levels. First-order governance: based on how the organization, roles and procedures are organized; the creation of codes and guidelines; the administration of government, accounting and supervision. Second-order governance: based on success and achievement of goals and efficient implementation and mobilization of resources; managing change and improving the adaptive capacity of stakeholders; advances (e.g., financial, marketing, technical, process, chain). Third order governance: the nature of (social) law and the sources of interest for the 43  development of an organization or network; the sustainable sustainability of the business model; connective drivers; shared confidence and insight into the motivation of key stakeholders. Main corporate governance issues for small and medium-sized companies. The following are the reasons for the value of good governance: 1. Poor governance puts stability at risk; 2. Good governance would strengthen ties with stakeholders through improved strategy and better image; 3. Stability raises the likelihood of foreign financing; 4. Good governance improves internal support and participation mechanisms, which are critical for the success of the organization. Assessment Task 3 Kindly discuss your best answer to the following questions. Exercise 1: Characteristics of the contractor. Upon considering the characteristics of an entrepreneur, consider which of these characteristics may be identified. Think of how you could have displayed some of the entrepreneurial features of your classwork, extracurricular activities sports, or part-time work. Share your personal entrepreneurial characteristics. Exercise 2: Your company, look at the reasons anyone may want to open a business. Share some of the reasons why you might consider starting your own company and what sort of business you would like to buy. Summary Entrepreneurs are turning bold ideas into truth. They build jobs and contribute to the economy, but there are various types of entrepreneurs, and they prefer to follow their own direction depending on their temperament, skills and surroundings. To be a good entrepreneur, you will need to think creatively and make the right choices, such as understanding when and how to locate business advisors, marketing their goods online, 44 educating the workers and communicating efficiently. The following are the pros of being an entrepreneur: A flexible schedule – both in terms of when and where you work, Ego satisfaction, Learning Opportunities, it’s exciting and fulfilling, Opportunity to build equity, the salary makes sense for greater financial success, you are viewed as a leader that creates the opportunity for philanthropy. The following are the drawbacks of being an entrepreneur: You do not have a guaranteed income as an entrepreneur, you are the one required to do all of your updates, financial risk, there are tax implications to consider, time commitment, and stress. The essence of entrepreneurship is having a smart and fast response to developments in the market and the environment. This dynamic feature is the strength of any successful SME. Besides structure and discipline, successful entrepreneurs require a clear view on the fast- changing laws of value creation. Especially in SMEs, this means that the person of the entrepreneur plays a distinctive role. Entrepreneurship is a balancing act between working in the company and working on the company. References Butler, E. (2020). An Introduction to Entrepreneurship Institute of Economic Affairs Burton, G. (2017). Entrepreneurship and Small Business Management Library Press Kuratko, D. (2019). Entrepreneurship Theory, Process, and Practice Cengage 45  MODULE 4 FEMALE ENTREPRENEURSHIP Introduction The advent of entrepreneurship in community greatly depends on the economic, financial, religious, psychological and social factors that circulate in community. There has been a phenomenal increase in the number of self-employed women in the advanced countries of the world since the Second World War. Economic changes and the transformation of labor markets in terms of job skills, the essence of job tasks and employment contracts have given rise to the profile and value of entrepreneurship in the world economy. In particular, this module aims to clearly discussed the emergence and importance of female entrepreneurship. This chapter discusses the importance of female entrepreneurship to the economy, along with a few of the potential hurdles faced by women in starting up a firm, including such financing, managerial skills, connectivity and confidence. Learning Outcomes 1. Illustrate the significance of female entrepreneurship 2. Evaluate the factors that inspire women to venture into entrepreneurship 3. Identify the obstacles women face in the growth of entrepreneurship. 4. Evaluate the contribution of women to the growth of entrepreneurship 46 Lesson 1. Female Entrepreneurship (Carranza et al., 2018) In recent years, a growing number of women have broken out of corporate life and embraced entrepreneurial professions as an alternative to traditional work processes and obsolete structures. There has been a rising degree of interest in female entrepreneurship in recent years. Originally, there was knowledge of the lower involvement of women than men in the development and growth of new enterprises. More importantly, it has been recognized that women entrepreneurship has a significant relationship with economic growth. Despite the growing popularity of women in technical and managerial jobs, the gender gap in entrepreneurship remains important. Women are much less likely than men to start new companies, although the gap seems to be decreasing. It is clear that female entrepreneurship is a cross-cultural phenomenon with different cultural aspects. Women entrepreneur. The section of the female population engaged in industrial activities, i.e., manufacturing, assembly, job, repairs/services and other enterprises. Women entrepreneurs may be defined as women or groups of women who set up, coordinate and run a business enterprise. Women are to innovate, imitate or engage in economic activities to be named female entrepreneurs. Lesson 2. Female Entrepreneurship in the Philippines (Alday, 2017) The Philippines currently sits at the top of the list, out of 31 other countries surveyed, with the highest number of women executives in the top leadership positions. This was stated in the 2020 Women in Business study of Grant Thornton International. One very good example of this is the vast number of women who have run their own companies successfully. In fact, the majority of the 99.6% of micro, small and medium-sized enterprises (MSMEs) present in the country are women. MSMEs are of great importance to our gross domestic product, which makes the role of female entrepreneurs crucial to the growth of our economy. Go Negosyo, a non-profit and non-profit organization that supports entrepreneurship 47 in the country, annually celebrates women entrepreneurs through a summit that aims to bring together entrepreneurs to increase their visibility, skills and network with the guidance of well- established entrepreneurs. Best practices in the operation of a company Women are said to have a natural propensity towards entrepreneurship because of their craftsmanship and their ability to work under pressure. Starting a company from the ground up needs only a lot of attention. To women who have been in the industry to ten years, hard work, perseverance and faith have always been required to get to where they are today. Providing access to allocation of working capital We face the same obstacles with all companies when it comes to obtaining credit. Just after they have broken into their industries and made a name for themselves, consumers are eager to set up well-respected companies. The typical situation that follows is that these firms are unable to finance the opportunities that emerge as their working capital cash is either connected to current ventures or has not been paid for recently completed ventures. What's the funding of working capital? They're loans for business' day-to-day operating expenses. Widely known as business financing, many small and medium-sized businesses need access to this form of loan, especially when they face negative cash flow spikes. Banks are the traditional solution to cash flow issues, but they typically take time to review and authorize your papers. They will also try to cap the sum of the loan on the basis of the collateral that you can offer, and that's if you would have any collateral to give. Lesson 3. Modern Trend in Female Entrepreneurship (Khan, 2021) Women's businesses are growing rapidly all over the world, adding to household incomes and the development of national economies. Women, however, face time, financial, physical and social constraints that hinder their ability to expand their businesses. 48  Worldwide, at least 30 percent of women in non-agricultural work force are self- employed in the informal sector; in Africa, this number is 63 per cent. Women-owned businesses tend to be informal, home-based and focused in the areas of small-scale entrepreneurship and conventional industries, including mainly retail and service. Operating from home helps women to meet conflicting demands for their resources while they maintain a disproportionate share of homework and childcare obligations. Yet social expectations are also at stake. In communities where women are forced to stay at home or where travel outside the home can be risky, women have no choice but to run these types of businesses. Elements that contribute to women-owned businesses in other invaluable ways, such as: Soft knowledge and life skills. Client service and negotiation are soft skills that women entrepreneurs also need to help their businesses run smoothly, while life skills such as family planning, fitness and self-confidence make it easier for women to keep their businesses going. In reality, personal problems inside the home can impede business growth. Flexibility Programs should consider constraints on childcare for women, family obligations, transportation, and other cultural factors that may prevent them from participating in training. Sex perception of the family and the culture. Much of the success of female entrepreneurs depends on acceptance within their societies and families. When these organizations have a better understanding of their challenges and help their business activities, they will have a greater chance of success. Networking. If women are partnered with mentors and coaches or have access to other women entrepreneurs with similar backgrounds, they benefit from exposure to valuable public, private and peer tools. Cluster networking helps women gain an edge by labor pooling, bulk sales of raw materials, joint lobbying by municipal authorities, or joint access to finance. For women entrepreneurs, becoming part of a cluster can grow their businesses faster and help to counter cultural expectations that can restrict women's 49 income-earning opportunities. Accessibility of Financial Programs. Access to finance is one of the most common challenges that entrepreneurs face, and this is especially true of women who are further hindered by lack of personal identification, lack of property on their own behalf, and the need for their husband's signature on many documents. Efforts to promote women entrepreneurs' access to finance usually include programs that overhaul restrictive banking and regulatory policies. These changes embrace less conventional types of collateral, look at the lender's ability to repay and simplify the business register. They also help financial institutions create creative loans and investment products for female entrepreneurs. In order to ensure the sustainability of women's access to funding, program designers should consider: Check the women's organizations. Until designing new financial products, evaluate the need and reach of these products with the aid of women in the community who will be the key consumers. Ensure the collection of gender-disaggregated data. Make sure that financial institutions include gender in the study and data evaluation of their policies, as well as cash flow analysis, credit history and less traditional types of collateral. Respect the importance of gender. Promote the training of the financial sector to close any gaps in gender access to finance and ensure that female clients are handled equally and fairly. Build the network. Women entrepreneurs often lack a supportive network, so building partnerships with local organizations helps open communication channels between entrepreneurs and lenders to increase access to capital. Access to ICT With the explosion of smartphones and cell phone use across the globe, the inclusion of information and communications technology (ICT) in any program is a must. Female entrepreneurs should receive training on how to use ICTs, not just for business needs like online banking and recordkeeping, but also as a means to access health and education information to benefit their families and lives overall. These services should also introduce women to ICT as new business ventures in and of themselves. 50 ICT management programs will be: Provide equal access. Female entrepreneurs should be able to access and connect to the Internet or interact in a cost-effective manner. Tackle restricted exposures. Women's ICT services may need to take a slower pace to provide basic literacy training, including basic communication through the use of text messaging and email. Lesson 4. Differences between Men and Women in Business (Meunier et al., 2017) In spite of this, the lack of information on female entrepreneurs is particularly evident. Namely, many scientists are still focused on men's work as entrepreneurs. The reason for this can be found in the fact that there are fewer female entrepreneurs than male entrepreneurs and that women do not progress in their careers at the same rate as men. There are also several other significant distinctions that differentiate women from men in this field. The following are the most influential ones 1. Women start companies with the goal of gaining autonomy, equality and liberation from corporate boundaries. In addition, many women pursue personal fulfillment by running a company independently and creating space for career advancement. In addition, one of the basic driving factors that drive women to start their own company is the development of a stable future and the prospect of a choice of lifestyle and work style. 2. Women are also inspired to start their own company because they are unhappy with their job status and because they feel that their career is much slower than men, and that they can never attain the position that their expert and other qualities belong to them. 3. More than half of women owners (53 percent) are driven by intuition when they start and run a company, while men (71 percent) are led by logic alone. 4. Two thirds of women (60 percent) relative to male business owners, evaluate all options before making decisions and take action. Women also prefer to collect knowledge from 51 consultants and industry groups rather than men do. We strive to weigh up any possibility effectively and to balance the various tasks and goals. Lesson 5. Contributions by Women Entrepreneurs to Sustainable Economic Growth (Sajjad et al., 2020) Entrepreneurship has no regard for age, color, height, person, race or culture. Women in different countries play an equal role in economic growth through entrepreneurship with their male counterparts. An entrepreneur, whether male or female, plays an important role in a specific economy. Women's advancement of entrepreneurship has been recognized as significant because of the contribution of women entrepreneurs to economic growth in both developed countries and developing countries. Women entrepreneurs therefore improve economic growth by: Creation of employment. Growth of women's entrepreneurship will help Women owned companies produce more revenue, which can then be used to support their families and boost their family welfare efficiency. This income will help women start and expand their businesses, which in turn would allow them to provide jobs to those in their communities. Reduction of poverty. Women are now more interested in the organization of initiatives aimed at motivating women and youth to alleviate poverty through the income they earn through their entrepreneurial activities. Economic prosperity. The critical condition for social growth vitality that improves the quality of living of the people of the country. The easiest path to economic prosperity is through entrepreneurship among women. Women have become recognized for their ability to incorporate a number of activities that have the potential to increase the standard of living and quality of life of people. Economic and socio-political equality. Women now have access to cultural equality, power over wages and working conditions. This encouraged them to engage fully and participate fully in cultural, social and political policy making, which could lead to changes in gender inequality and discrimination, especially in the labor market. 52 Financial sustainability. Small businesses strive to be agile, sustainable, innovative which is important to business needs in the emerging economy. When women shape micro and macro businesses and put their values, goods and services to market, they become active in changing the face of the nation's industry. They combine economic strategies such as job preparation, job creation, marketing and work place management with technologies such as flexible scheduling, childcare, language workshops for immigrants. Economic growth. Rising the value of women in entrepreneurship has positive contribution to Gross Domestic Product (GDP) and Gross National Product (GNP). Statistically, more than 30% of the country's GDP output comes from women who are self-employed, especially in micro and small enterprises. Statistically, more than 30% of the country's GDP output comes from women who are self-employed, especially in micro and small enterprises. Development of wealth. The development of wealth and social prosperity are the economic goals of both men and women entrepreneurs. In order to accomplish this, women entrepreneurs typically combine their efforts to build a strong foundation, either in rural or urban areas, and to channel the same energies into economic growth. Teamwork, networking and organizational expertise have been suggested as effective promotional tactics that women entrepreneurs should follow to pool their resources into best business practices, connections and references. Economic. Job creation for both women and others can be a panacea for increasing unemployment/lower employment in the country. Women have the opportunity to set up their own businesses and make good use of their learned skills and training. Social. Women make a huge contribution to both their families and communities. Many women-owned businesses represent not only the families, but also broader business organizations. They also give women the ability to successfully handle their dual function as professional women and mothers at home. Lesson 6. Challenges faced by Women Entrepreneurs (Rohaila, 2022) 53  Being a woman and an entrepreneur is a difficult combination. One of the most challenging aspects of being a woman is having to demonstrate at every stage that she is capable enough to make the impossible feasible. Despite the difficulties and obstacles, many of these successful enterprises are run by women, but the point is that they have faced many obstacles. In our male-dominated world, it is extremely difficult for women to thrive, yet some of them don't care about the critics and remain focused on their work and ambitions. If people doubt how far you can go, move so far away from them that you can no longer hear them. This is an excellent piece of advice for ladies. This century gave birth to a women's business environment and allowed women's voices to be heard. The most interesting thing is that it is increasing at a surprisingly massive rate and there are so many case studies of successful women entrepreneurs. But still, there are some common Challenges Faced by Entrepreneurs. No one takes them and their Idea Seriously. This is one of the main obstacles female entrepreneurs encounter while starting a business at the beginning of their journey, when so much courage is required. People rarely consider or take seriously the ideas of women since they are typically viewed as fools and ignorant people in male-dominated societies. They have to fight so hard to be taken seriously because, for the most part, both they and their ideas are assumed to be true. They must strive very hard to convince individuals that they can achieve it, instead of focusing more on their proposal. At this early time, women are bombarded with criticism from everyone around them rather than being shown admiration. The best female entrepreneurs are those that put up with the negative remarks and casual attitude of those around them and show them otherwise via their hard work. Funding Issues for Business. When compared to men, funding a woman's business is relatively more difficult for them. Since nobody takes them or their proposal seriously in the first place, convincing individuals to fund her company is the next major challenge. If no one is ready to take their proposal into consideration, no one will ever agree to invest in their firm. The business can typically be financed by three types of people: friends, family, and fools. The main problem for women is that their loved ones do not support their company idea, which makes it difficult for them to secure money. Because investors never trust in and do not consider women-led firms to be worthy enough, female entrepreneurs have very 54 limited access to capital. In order to address this problem, women must agree to make investments in companies run by women because doing so will not just to help the firms expand but will also inspire women to take their careers to the next level. However, it will only be achievable if you put your all into your proposal; only then will o