7 essential characteristics to become a successful entrepreneur: Vision Passion Motivation Risk-taking Curiosity Creativity Confidence Entrepreneurial Decision-Making Entrepreneurial decision-making can be defined as choice that entrepreneurs make when seeking to exploit identified chances for market success. Types of thinking that influence entrepreneurial decision-making Critical thinking Creative thinking Strategic thinking Critical thinking – refers to then systematic and rational way of providing an answer to a question. Systematic since it follows steps in responding to an inquiry. Rational because it adheres to the rules of logic in connecting the relationships of variables and in making conclusions. Critical thinking What is the difference between critical thinking and creative thinking? Critical Thinking vs. Creative Thinking Certain Closed to new information Demanding respect Isolating and analyzing ideas Using tried and true methods Seeing failure as failure Flexible Open to learning Respecting others Connecting ideas Discovering new ways Seeing failure as learning Creative thinking Creative thinking – refers to thought processes that bring about discovery of new ideas. Unlike critical thinking, it does not follow a systematic or analytical process since it looks at things from different perspectives. Where did creative ideas start? Creative thinking Sometimes, creative ideas start from A dream An insight Observation Creative thinking The intent of creative thing is not to provide an answer but to ask questions that can lead to discovery and change. Since creative thinking stresses growth, it encourages discontinuity rather than stability. Strategic thinking Strategic Thinking – it involves thought processes that assess a current situation, which can be useful in the formulation of plans for the future. It is similar to critical thinking since it uses an orderly and logical system in its assessment. But it also resembles creative thinking in its growth and future orientation. Porter's Five Forces of Competitive Position Analysis Supplier Power Buyer Power Threat of New Entry Threat of Substitution Competitive Rivalry Poster’s 5 Forces Risks, Cognitive Adaptability, and Entrepreneurial Decisions Risks Risks – can be described as uncertain situations and developments that can increase probability of loss or business failure. Business risks can be categorized into two Internal Risks External Risks Risks Examples Internal Risks – pertain to dangers coming from the management of resources of a business enterprise that may imperil its operation. Liquidity and financial risks Failure to hire best talents (compensation package is unattractive) Damage to reputation Failure to innovate (using the business model of 20th century vintage) Think like you are already an entrepreneur, how can you avoid internal risks? Risks Examples External Risks – are threats coming from various environments outside the business firm. Economy Increased

1. Characteristics of
Filipino
Entrepreneurs

2. 7 essential characteristics to become
a successful entrepreneur:
1. Vision
2. Passion
3. Motivation
4. Risk-taking
5. Curiosity
6. Creativity
7. Confidence
Filipino Entrepreneurs

3. Entrepreneurial
Decision-Making

5. Entrepreneurial decision-making can
be defined as choice that entrepreneurs
make when seeking to exploit identified
chances for market success.

6. Types of thinking that influence
entrepreneurial decision-making
Critical thinking
Creative thinking
Strategic thinking

7. Critical thinking
Critical thinking – refers to then systematic and
rational way of providing an answer to a
question.
• Systematic since it follows steps in responding to an
inquiry.
• Rational because it adheres to the rules of logic in
connecting the relationships of variables and in
making conclusions.

8. What is the difference
between critical
thinking and creative
thinking?

9. Critical Thinking vs. Creative Thinking
• Certain
• Closed to new information
• Demanding respect
• Isolating and analyzing ideas
• Using tried and true methods
• Seeing failure as failure
• Flexible
• Open to learning
• Respecting others
• Connecting ideas
• Discovering new ways
• Seeing failure as learning
Critical Thinking Creative Thinking

10. Creative thinking
Creative thinking – refers to thought processes
that bring about discovery of new ideas.
• Unlike critical thinking, it does not follow a systematic
or analytical process since it looks at things from
different perspectives.

11. Where did creative
ideas start?

12. Creative thinking
Sometimes, creative ideas start from
A dream
An insight
Observation

13. Creative thinking
The intent of creative thing is not to
provide an answer but to ask questions that can
lead to discovery and change.
Since creative thinking stresses growth,
it encourages discontinuity rather than stability.

14. Strategic thinking
Strategic Thinking – it involves thought
processes that assess a current situation, which
can be useful in the formulation of plans for the
future.
• It is similar to critical thinking since it uses an
orderly and logical system in its assessment.
• But it also resembles creative thinking in its
growth and future orientation.

15. Porter's Five Forces of Competitive
Position Analysis
Poster’s 5
Forces
Supplier
Power
Buyer
Power
Competitive
Rivalry
Threat of
New Entry
Threat of
Substitution

16. Risks, Cognitive Adaptability, and
Entrepreneurial Decisions

17. Risks
Risks – can be described as uncertain situations and
developments that can increase probability of loss or business
failure.
Business risks can be categorized into two
1. Internal Risks
2. External Risks

18. Risks Examples
Liquidity and financial risks
Failure to hire best talents
(compensation package is unattractive)
Damage to reputation
Failure to innovate (using the
business model of 20th century vintage)
Internal Risks –
pertain to dangers
coming from the
management of
resources of a
business enterprise
that may imperil its
operation.

19. Think like you are
already an entrepreneur, how
can you avoid internal risks?

20. Risks Examples
Economy
Increased competition
Commodity price risks
Regulatory risks
Business interruptions
Political risks
External Risks – are
threats coming from
various environments
outside the business
firm.

21. Think like you are
already an entrepreneur, how
can you prevent external
risks?

22. Cognitive Adaptability
Cognitive adaptability –
refers to how entrepreneurs
give feedback by embedding
cognitive processes into the
environment and adjusting
their decision-making
approach effectively and
adequately, which emphasizes
the effect of entrepreneurs'
self-reflection and self-
adjustment on cognitive
process and ability

23. Entrepreneurial Decisions
7 Decisions Every Entrepreneur Must
Make
1. Whether to act on their idea. ...
2. Whether to give up or persist in
the face of failure. ...
3. Which experts to consult. ...
4. What the core values of their
company will be. ...
5. Whether to seek external
investment or not. ...
6. Their ideal customer. ...
7. How they'll price their products.

24. Study the whole chapter
1, next meeting we are going
to have a chapter test or
exam. Good luck!