This is a revised and updated version of intro to entrepreneurship published earlier last April 2016.

1. Introduction to
Entrepreneurship
Unlocking the Secrets of Wealth Creation
April 27, 2012

2. A. General Concepts

3. The ENTREPRENEUR

4. Our common understanding
 The boss
 The business owner
 The risk taker
 One who starts a small
business
 The resourceful guy?

5. No single definition

6. French word origin
Entependre – an
undertaker

7. For this course:
 Walt Disney’s definition
“….to do things and
make things which will
give pleasure to people
in new and amazing
ways. ….It is magic!
*From the lecture given by Larry Farrel at SBMA, August 7, 2002
and at UAP, October 30, 2009.

8. Walt Disney and
entrepreneurship
Simply amazing!
Magical

9. Entrepreneurship involves:
 MAGIC – soft issues
 LOGIC – hard issues

10. According to George Gilder –
from “The Spirit of the Enterprise”*
 “It is making the world forever new.
It is taking aggressive actions.”
According to Joseph Schumpeter -*
 “It is destroying the old order and creating
new ones.”
*From “Business as a Calling” by Michael Novak

11. It is about:
 NEW:
 Business ideas
 Products
 Processes
 ENTREPRENEURS
HIP
 A MINDSET
 About a forever
innovating mindset

12. Timmons
 “It is creating something from
practically nothing”
 “ It is doing something vs. just
talking”

13. It is about:
 Action
 Strategy
 Courage
 Wise use of resources
 Start with what he has

14. THE THREE MASTERIES FOR
AN ENTREPRENEUR:
 Mastery of Self
 Mastery of
Opportunity
 Mastery of the
Enterprise

15. Entrepreneurial
Leadership
Enterprise
Mastery Mastery
of Self of
Organization
Corporate
Corporate
Leadership

16. Aspects of
Self-Mastery

17. Traits of an Entrepreneur
- D’s and F’s
Is it better to drop out?
Is it better to get F as a grade?

18. D’s
 Dream
 Determined
 Details
 Dollar (Peso, in our case)
 Decision
 Doer
 Distribute
 Destiny
 Devotion
 Dedication

19. F’s
 Founder
 Faith
 Focused
 Frugal
 Fast
 Fun
 Flexible
 Flat
 Forever Improving

20. Anatomy of the
Entrepreneur
The Entrepreneurial
Mind Frame
The Entrepreneurial
Heart Flame
The Entrepreneurial
Gut Game

21. Anatomy of the
Entrepreneur
WISDOM
 What lies
behind us,
what lies
HEART
before us, is
nothing
GUTS
compared to
what lies
HANDS
within us.

22. Self Analysis:
 Gifted minds
 Steely Guts
 Ability to intuit
 Courage
 Patriotic Hearts
 Hands that truly care
Do I possess all of the above?

23. The Entrepreneur’s
Brain
Let us do a brain
surgery…

24. “I have 4 brains:
left cerebral,
left limbic,
right limbic,
Right cerebral.”

25. The HBDI developed by Hermann yielded a
brain dominance profile
Logical
Factual
Critical
Technical
Analytical
Quantitative
Interpersonal
Kinesthetic
Emotional
Spiritual
Sensory
Feeling

26. PREFERRED SUBJECTS
 Arithmetic  Arts
 Algebra
 Geometry
 Calculus  Design
 Logic  Poetry
 Science  Architecture
 Technology
 Finance A D  Marketing
B C  Social Sciences
 Programming
 Psychology
 Accounting  Dance
 Technical  Drama
Management  High-Skilled Sports
 Production
 People-Management

27. PREFERRED PROFESSIONS
 Lawyers  Entrepreneurs
 Engineers  Explorers
 Computer Systems Analysts  Artists
 Financial Analysts  Playwrights
 Technicians  Scientists in R&D
 Advertising
 Physicians
A D  Composers
 Statisticians  Jazz Musicians
 Bureaucrats  Guidance Counselors
 Administrators B C
 Public Relations
 Bookkeepers
 Planners-Programmers  Nurses
 Elementary Teachers  Social Workers
 Policemen  Entertainers
 Cashiers  HRD
 Production Supervisors  Salesmen
 Maintenance People  Priests
 Classical Musicians

28. Cerebral
Left mode Right mode
CEO’s
male or female
Limbic

29. Cerebral
Left mode Right mode
Entrepreneurs
Limbic

30. B. Forms of
Entrepreneurship
1. Social Entrepreneurship
2. Business Entrepreneurship
3. Techno Entrepreneurship

31. 1. Social
Entrepreneurship

32. 1. Social Business Mix
Social Profit
NGO NGO Enterprise Business Maximization
(non-profit) (for-profit) Enterprise Business
(PMB)
Social CSR Business
Business Enterprise

33. Social Entrepreneurship
 “Any creative and innovative
solution applied to solve social
problems” (Mohammad Yunus,
2007)
 It involves social mission
 Profit and/or entrepreneurial
processes

34. Banker to the poor

35. Social Entrepreneurship
 “Search for approaches to move
poor people out of poverty beyond
welfare-based safety nets.”
 No more charities
 Sustainability
 Profits for non profits

36. Social Entrepreneurship
 CSR – corporate social
responsibility
 CSV – corporate shared value
 Human Nature

37. Social Business
 The triple bottom line
 PEOPLE
 PROFIT
 PLANET
 BOP – Bottom of the Pyramid

38. BOP – Bottom of Pyramid
A-B 9%
Above poverty
C 20% threshold
D-E 31%
Living on less
than $2 per day
Living on less
F 40% than $1 per day

39.  Mother
Teresa did
what no other
person has
done before –
to take care of
the poor,
destitute and
lepers

40.  Lance Armstrong
 7 times Tour de
France champion
 His real victory is
with the LAF where
he helps hundreds
of cancer victims

41.  Sir Edmund Hillary was
first to conquer Mt. Everest

42.  Sir Edmund Hillary came back to
Nepal and helped the Sherpas
improve their living conditions.

43. Mohammad Yunus
 Taught Developmental Economics at
the University of Chitagoong in
Bangladesh.
 Economics, right at the outskirt of the
University, poverty was everywhere.
 He found out that all that was needed
by the poor was a loan of 27 chakas.
That’s how the Grameen Bank started.

44. Why are they
entrepreneurs?
 They had little or
no resources at all
but they survived
and achieved what
they wanted in life

45. 2. Business
Entrepreneurship
Business for profit

46. Business Entrepreneurship
 It’s about the study of systems,
structure, and staffing to make a
large corporation stay competitive,
innovative, and profitable on a
sustainable basis.

47. 2 types of business
entrepreneurship

48. The business cycle according to Larry
Farrel – int’l expert on entrepreneurship
Growth Decline
Start Survival /
Failure
ENTREPRENEURIAL MANAGERIAL

49. No longer excellent!...
 In 1983, there was the book In
Search of Excellence by Tom
Peters and Waterman. It sold 6
million copies. Then...
 Something went wrong...

50.  33% of the “Excellent” Companies
vanished
 Too big to fail companies
 Where are they now?:
Washington Mutual
Bear Stearns
Pacific Bank
Banco Filipino

51. Vanishing giants
Dinosaurs of the corporate
world

52. ENTREPRENEURIAL
COMPANIES
 Keeping the Sense of
Mission alive as you grow
 Re-instilling
customer/product vision in
every employee
 Fostering high-speed
innovation
 Making self-inspired behavior
the organization standard

53. BUSINESS
ENTREPRENEURSHIP
Entrepreneur (Self)
IDEA REALITY
TIME
Resources Opportunity

54. Growth
Differentiation Strategic direction

55. Three Competencies of the
Complete Entrepreneur
ORIGINATOR
or
ins
at
pi r
ov
inn
er
OPERATOR implementor ORGANIZER

56. Compelling Reasons
Why We Need
Entrepreneurs
 90% of the world’s jobs are created by
entrepreneurs
 Source of new products and innovation
 In the third-world countries, the entrepreneurs
keep the sagging economies alive
 It’s the entrepreneurs – not the central bank –
that keep the economy moving
 Finally...

57. ...in the Philippines
 It’s not GMA nor the government
that was responsible for sheltering
the Philippines against bad times.
 GUESS WHO?!

58.  In the GEM report of 2006-2007, RP is
No. 2 in the world for entrepreneurial
activity.
 Peru is No. 1

59. RP is a HOTBED OF
ENTREPRENEURSHIP!
 4 out of 10 adult Filipinos are into
business
 Highest in Northern Luzon – 54%
 Lowest in Metro Manila – 30%
 In the early stages, it is highest in
Mindanao, at 73%

60. Entrepreneurship in the Philippines:
Issues from a Global Perspective

61. Other trivia:
 Battle of the sexes:
 51% of all businesses
are started by women
 55% of all businesses
are run by men
 Of the nascent
businesses, 60% are
run by women

62. Entrepreneurial “ION”
(Process)
InspiratION (idea)
AmbitION PerspiratION (past jobs)
PassION
+ RecreatION (hobbies) =
Idea FruitION
FrustratION (what pisses you off)
Enterprise
CreatION
Sea of Opportunity

63. Is Entrepreneurship easy?
 We choose to go to the moon in this decade
and do all the other things to get there, not
because they are easy but because they are
hard, because that goal will serve to
measure the best of our energies and skills,
because that challenge is one we are willing
to accept and we are unwilling to postpone,
and which we intend to win and others too.
-- JFK, 1962

64. So you want to be a billionaire
Put your name here:
__________________________________
THE NEXT MILLIONAIRE / WINNER