The document discusses entrepreneurs and entrepreneurship. It defines an entrepreneur as an individual who creates a new business and bears most risks and rewards. Entrepreneurs play a key role in any economy by anticipating needs and bringing innovations. They are rewarded for successful startups with profits but suffer losses if they fail. Entrepreneurship is the process of starting a business or organization for profit or social needs. Entrepreneurs develop business models and are responsible for business success or failure. They drive economic growth by creating jobs, goods, and services.

3. • What Is an Entrepreneur?
An entrepreneur is an individual who creates a
new business, bearing most of the risks and
enjoying most of the rewards. The
entrepreneur is commonly seen as an
innovator, a source of new ideas, goods,
services, and business/or procedures.

4. • Entrepreneurs play a key role in any
economy. These are the people who have
the skills and initiative necessary to
anticipate current and future needs and
bring good new ideas to market.
Entrepreneurs who prove to be successful
in taking on the risks of a startup are
rewarded with profits, fame, and continued
growth opportunities. Those who fail,
suffer losses and become less prevalent in
the markets.

5. Entrepreneurship - Entrepreneur
• Entrepreneurship is that it is the process of
starting a business or an organization for profit
or for social needs.
• Entrepreneurship is the act of creating a
business or businesses while building and
scaling it to generate a profit.
• Entrepreneur is someone who develops a
business model, acquires the necessary physical
and human capital to start a new venture, and
operationalizes it and is responsible for its
success or failure.

6. • Entrepreneurs play a key role in any economy.
These are the people who have the skills and
initiative necessary to anticipate current and
future needs and bring good new ideas to
market. Entrepreneurs who prove to be
successful in taking on the risks of
a startup are rewarded with profits, fame and
continued growth opportunities. Those who
fail, suffer losses and become less prevalent in
the markets.

7. Entrepreneurship - Entrepreneur
• Entrepreneurship is that it is the process of starting
a business or an organization for profit or for social
needs.
• Entrepreneurship is the act of creating a
business or businesses while building and
scaling it to generate a profit.
• Entrepreneur is someone who develops a business
model, acquires the necessary physical and human
capital to start a new venture, and operationalizes it
and is responsible for its success or failure.

16. Inside the
Entrepreneurial Mind
from ideas to reality

17. Creativity, Innovation, and
Entrepreneurship

18. Creativity
The ability to develop new ideas and to
discover new ways of looking at problems
and opportunities.

19. Innovation
The ability to apply
creative solutions to
problems and
opportunities to
enhance or to enrich
people’s lives

26. Appraising yourself for an
Entrepreneurial Career
PEC’s Self-Rating Questionnaire

27. Activity #2
• Answer the following and be prepared to share:
– What are your interests?
– What are your hobbies?
– What are your talents?
– List at least 3 possible business start-up ideas that would
incorporate the above
– What personal talents and skills are needed to start these
businesses?
– What kind of training or education would you need?
– What would be your duties and responsibilities.
– What are the top 3 rewards of entrepreneurship for you
personally?

28. Contemporary Views on
Entrepreneurship
• Lloyd Shefsky, in his book entitled,
Entrepreneurs are Made not Born, defined
entrepreneur by dissecting the word
entrepreneur into three parts as follows:
 entre means to enter
 pre means before
 neur means nerve center
The term entrepreneur leads to a definition of
the word as someone who enters a business.

29. The Filipino Entrepreneur
• With the influence of western culture, having
been previously colonized by Spain who
introduced trading business, as well as having
been colonized too by Americans.
• According to Dr. Orcullo Jr. as reported by
Peter Drucker- Entrepreneurship is essentially
starting a business of his own, new and small
scale business.

30. The Challenge to Entrepreneurship
• Unlike the previous decades where
technology, globalization and trade
liberalization did not play a dominant role, the
third millennium is mainly characterized by
globalized trading system and the
predominance of the revolutionary
information technology.

31. • The scenario, according to Dr. Orcullo is where
the real challenge for entrepreneuristic
persons and in the so called “borderless
world” is both a challenge and opportunity.

32.  Filipino entrepreneur used to develop and
market his products locally, he is now faced with
local competition not anymore with Filipino
entrepreneurs themselves, but also with
imported products and services now available in
the local market.
Filipino entrepreneurs have to contend with
casting out the colonial mentality of the local
market with its preference with imported brands.

33. Difficult to export a locally made product.

34. Entrepreneurship and Philippine
Education
 with the perennial problem on
unemployment, a self- employment and
livelihood opportunity for every citizen is the
cry of politicians and the unemployed.
The continuing dilemma on the lack of job for
everyone that entrepreneurship as self
employment option has become popular in
recent years.

35. Socio-economic benefits from
Entrepreneurship
 Entrepreneurs play a major role as a provider
of employment for the entrepreneur himself
and his immediate environment.
a. Promotes self- help and unemployment-
assist government not only by providing
employment for himself, but also for providing
employment to those employed by the firm.

36. b. Mobilizes capital-every person that goes into
entrepreneurship or puts up his own business
means releasing or mobilizing capital that
should fire up the economy.
c. Provides taxes to the economy- the entry of
entrepreneur into the world of business means
tax sources for the government.

37. d. Empower individuals- the high income
earning of entrepreneurs as compare to those
employed, the possibility of wealth
accumulation is enhanced
e. Enhance national identity and pride- the
quantity and quality of products and services
produced by every entrepreneur is a source of
pride and identity for a country.

38. f. Enhance competitive consciousness-
innovation, being the essence of
entrepreneurship, is a catalyst to consciousness
and culture of competition. (products &
services)
g. Improves quality of life- innovation and
development of new product, as well as creation
of new market, betterment of products and
services

39. h. Enhances equitable distribution of income
and wealth- with entrepreneurs succeeding in
their respective endeavors, chances are that
equitable distribution of income and wealth can
be likewise expected.

40. The role of Entrepreneurship in
Economic Development
1. Entrepreneurship offers an economical and
faster method of distributing goods and
services that accelerates economic
development.
2. Entrepreneurship is capable of generating
more jobs, income, goods and services.
3. Entrepreneurship improves the quality of life.

41. 4. Entrepreneurship contributes to more
equitable distribution of income and therefore
eases social unrest.
5. entrepreneurship utilizes and mobilizes
resources to make the country productive,
6. Entrepreneurship brings social benefits
through the government.

42. 7. Entrepreneurship has several definitions. Any
person who takes the risks and invest his
resources to make something new.
8. Economic development is a process, while
economic growth is a product of economic
development.

43. The role of Entrepreneurship in
Economic development
 Support for the Economy- Entrepreneurs not
only create jobs in their own companies but
also contribute to improving their local
economies. Example- when people are
employed , they spend money in local
businesses, such as clothing stores and
restaurants which keeps those businesses
flourishing.

44. The role of Entrepreneurship in Economic
development
 Giving Back – entrepreneurs contribute to
their communities with their charitable
contributions. In some cases, entrepreneurs
start businesses that focus equally on profit
and charitable goals. Example- a financial
company might start a program that provides
loan to low income business owners. Some
Entrepreneurs do not restrict their charitable
activities to providing money but work directly
with the organizations.

45. The role of Entrepreneurship in Economic
development
The following describes the significant role of
Entrepreneur play in our economy:
1. As an agent of change- an Entrepreneur is an
individual who is able to create new products
and sell them in the market.
- introduces innovation on existing product
or service
-creating new solution to an old problem

46. 2. As a Resource-User or Employer – combines
and employs different types of resources to
produce a new good or service
- putting up own business
- help prevent unemployment by creating jobs
and generating income for other people.

47. 3. As a driving force for Economic Growth and
Development- more and more goods and
services are produced, more and more income
are generated.

48. 9. Development and Growth of Theories
a. Laissez faire Theory (leave alone or allow to
do)- explains that the government should not
interfere in economic activities. (associated
with Adam Smith)
b. Keynesian theory (John Maynard Keynes)-
explains that the government should play the
key role in economic activity.

49. c. Ricardian theory- this is the theory of David
Ricardo focusing on agriculture playing the
major role in economic development.
d. Harrod Domar Theory- conceptualized by Sir
Harrod of England and Prof Domar of U.S claims
that more products can be produced through
the use of machines.

50. e. Kaldor Theory- by Nichols Kaldor, maintains
that the key factor is technology. This theory
explains that the application of modern
technology in the production of goods and
services has been responsible for economic
success of the highly developed countries.
f. Innovation theory- developed by Joseph
Schumpeter, stresses the role of innovators or
entrepreneurs in economic development.

51. 10. The contributions of entrepreneurship are:
1. development of new markets 2. discovery of
new sources of materials 3. mobilization of
capital resources 4. introduction of new
technologies and 5. creation of employment.
11. There is a need for a Filipino entrepreneurial
economy. This means our productive resources
should be in the hands of Filipinos for their
benefits.

52. 12. The government can support entrepreneurs
from their various assistance programs on the
following: Peace and Order, Political Stability, Taxes,
Infrastructures, Education, Public Administration,
production technology, Marketing assistance and
financial assistance.
13. Entrepreneurship directly affects the social and
economic development of People. The more society
engages in entrepreneurial undertakings the more
is likely to develop economically and socially.

53. How does an economy grow?
A. Theories of economic growth may be
classified into three broad groups. 1. Economic
growth as a natural and inevitable process 2.
economic development as a rational process
brought about when men respond to
opportunities in the environment 3. economic
development as a result of seemingly
economically irrational yet psychologically
satisfying activities of enterprising men.

54. B. General explanations of economic
development
1. Economic development proceeds according
to a master plan or Law of nature.
2. Economic development is brought about by
an “Invisible Hand” (The unobservable
market force that helps the demand and
supply of goods in a free market to reach
equilibrium automatically)

55. 3. Economic development is brought about by “
Cultural Diffusion”. (the spread of cultural beliefs
and social activities from one group of people to
another. The mixing of world cultures through
different ethnicities, religions, and nationalities
has only increased with advanced
communication, transportation, and
technology).

56. 4. Racial Heritage determines the economic
development of people.
5. Climate conditions determine the energy
levels of people and in turn its rate of
development.
6. The challenge of the natural environment is
responsible for the rise of civilization.

57. C. Economic explanations of economic
development
1. Technology improvements and division of
labor lead to development.
2. Population changes affect development
3. Entrepreneurship is an important factor in
development

58. D. Socio Psychological explanations of economic
development
1. According to the work of Talcott Parsons,
individuals in modern societies are:
a. unemotional
b. interested in themselves
c. able to relate to others in terms of their
social roles or their ability to do a job.

59. Search for Business Opportunity,
Ideation, Innovation and Creativity
• In discovering business opportunities, the
following factors on resources have to be
evaluated:
1. Market- this refers to the number of
prospective buyers, competitors, the price, and
the quality of goods and services. Business
opportunities exist in areas where satisfaction is
weak or incomplete.

60. 2. Individual Interests- business interest of
individuals should match business
opportunities. For example, if one is a good
cook, he could venture in the food business.
3. Capital- this serves as the fuel that keeps the
business operating. The availability of funds
should fit the type of business to organize.

61. 4. Skills- the entrepreneur should have the
proper skills in the business he is going to
undertake.
5. Supplier of inputs- it is important that there
are steady suppliers of raw material and other
inputs to the business.

62. 6. Manpower- the success of any business also
depends on the efficiency of its employees.
7. technology- entrepreneurs should be aware
of the presence of technology to improve their
products or services, or introduce new
innovations in the market.

63.  other opportunity-seeking processes that can
guide a prospective entrepreneur as to what
kind of business to establish are as follows:
1. Look at other successful
business/entrepreneurs- looking up at other
entrepreneurs as a role model that could be an
inspiration

64. 2. Respond to a problem area- the solution to a
problem might be a transformed into a business
venture.
3. Home based business option- these must not
be taken for granted, for there are some big
businesses that started as a small at home.
4. Linkage of Resources- the entrepreneur can
produce his own input instead of buying them.

65. • The best way to evaluate business opportunity
is through Market Research which is defined
as the study of all problems in marketing a
product.
• Steps in Market Research:
 defining the problem
Making a preliminary investigation
Planning the research

66.  Gathering the data
Analyzing the data
Reaching a conclusion
Implementation and evaluating decision