The document discusses the origins and nature of entrepreneurship. It traces entrepreneurship back to medieval Europe and defines it as undertaking or creating new economic organizations. The document then explores various definitions of entrepreneurship provided by scholars as creating value under conditions of risk and uncertainty. It differentiates between forms of entrepreneurship such as social, business, and tech entrepreneurship. The document also examines the importance of entrepreneurs for job creation and economic growth. Finally, it discusses the characteristics and competencies needed in an entrepreneur such as opportunity seeking, risk-taking, and leadership.

1. Entrepreneurship

2. Origin and nature of Entrepreneurship
•Evolution
 originated in Europe in
the Middle Ages
 French origin from the
word entreprendre,
which means to
“undertake”

3.  20th century saw a number of scholars focusing their
research studies on the concept of entrepreneurship so
with the growth of academic offerings in the field of
business, management, and finance, it has been added
to the of curricular directions among schools
 Literature: an indication that the kind of activity is
“provision of services” and there was even no hint at the
time that entrepreneurs were doing it for personal gain
or profit

4. •What is
entrepreneurship?
The ability to create and
build an enterprise from
practically nothing,
fundamentally a creative
act.
Donald F. Kuratko
Origin and nature of Entrepreneurship

5. Origin and nature of Entrepreneurship
•What is
entrepreneurship?
The creation of an
innovative economic
organization for the purpose
of gain or growth under
conditions of risk and
uncertainty.
Marc J. Dollinger

6. Origin and nature of Entrepreneurship
OWhat is entrepreneurship?
 “It is making the world forever new. It
is taking aggressive actions.” The
Spirit of the Enterprise
 CREATION OF WEALTH UNDER
CONDITIONS OF RISK
*creating new business
*modifying an existing business
*creating new uses, users, usage
of a product

7. •The Various Degrees of
Creation
New Concept/new Business –
create an entirely new industry
Existing Concept/ Different
Approach – old concepts but
there is something new or
different or better which is a
result of creativity

8. •Entrepreneurial Framework
Origin and nature of Entrepreneurship
Entrepreneur
Opportunity
Organization
Resources
Identification
Attraction and
Management
Leadership and
Direction

9. •Entrepreneurship as a process and approach
As an approach: considers the business opportunity as a
chance to solve the problem than solving the problem itself,
“The entrepreneur differs from the manager or small
business, not so much on goals or activities, but in approach in
doing business.” Camposano
As a process: a dynamic process of innovation and new-
venture creation through dimensions-individuals,
organization, environment, process and institutions
Origin and nature of
Entrepreneurship

10. •Forms of Entrepreneurship
Social Entrepreneurship
―Any creative and innovative solution applied to
solve social problems
―Involves social mission
―Search for approaches to move poor people out of
poverty
―Bottom line: people, profit, planet
Origin and nature of Entrepreneurship

11. Business Entrepreneurship
―For profit
―study of systems, structure, and staffing to make a
corporation stay competitive, innovative, and profitable
on a sustainable basis through 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

12. Origin and nature of Entrepreneurship
•Forms of Entrepreneurship
Techno Entrepreneurship
―an investment in a project that assembles and
deploys specialized individuals and
heterogeneous assets that are intricately related
to advances in scientific and technological
knowledge for the purpose of creating and
capturing value for a firm

13. •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 that keep the economy
moving
 Lessens the dilemma on the lack of job, self-
employment
 Ensuring the welfare of a free enterprise economic
system
Impact of Entrepreneurship on the economy

14. •Socio Economic Benefits
Promotes self-help and unemployment
Mobilizes capital
Provide taxes to the economy
Empower individuals
Enhance national identity and pride
Improves the quality of life
Enhances equitable distribution of income and
wealth
Impact of Entrepreneurship on the
economy

15. The Entrepreneur
•Who is an Entrepreneur?
Common Understanding:
The boss, The business owner, The risk taker, One
who starts a small business, The resourceful guy
What Entrepreneurs do: build new organization,
bring innovations to market, identify market
opportunity, apply expertise, provide leadership,
accepts risk

16. •Who is an Entrepreneur?
Types of Entrepreneurs
―Classic Entrepreneurs- who have grown their initially small enterprise
into a large enterprise
―Corporate Entrepreneurs- individuals who do not own the firm they
work for but use the entrepreneurial mindset to increase the
profitability, productivity and professionalism
―Social Entrepreneur- individuals who use the entrepreneurial mindset
not only to improve profitability and productivity but also improve
social equality and environment sustainability
The Entrepreneur

17. •Challenges to Entrepreneur
 “borderless world”- predominance of info technologies
and globalized trading system
 Competition is not anymore with Filipino entrepreneurs’
products and services but imported products and services
 Highly competitive market due to advancement wherein
one can easily network with foreign markets and an
environment that is highly conducive to developing and
marketing export-quality products owing to various
incentives and supports available
The Entrepreneur

18. • Competencies of an Entrepreneur
The Entrepreneur

19. •Competencies of an Entrepreneur
Originator: opportunity seeking, information seeking
―Invent – new product or services
―Extend – new use or different application to an already existing product
―Duplicate – creative replication of an existing concept
―Synthesize - combination of existing and factors into a new formulation
Inspirer: self-confidence, persistence, risk tasking abilities,
initiative
Implementer: goal setting, demand for efficiency and quality
Operator: persuasion and networking, promote
Organizer: planning and monitoring skills, control
The Entrepreneur

20. MSEE Approach

21. A sequence of activities that describes the linking
and coordinating relationships among the sub
components (self, environment, enterprise) that the
entrepreneur will have to master to succeed.

22. MEANING OF MSEE
•M=MASTERY
•S=SELF
•E=ENVIRONMENT
•E=ENTERPRISE

23. I. SELF MASTERY:
Personal Entrepreneurial
Competency
(PEC)

24. COMPETENCY CLUSTER
Achievement Cluster
Opportunity Seeking
Persistence
Commitment to the work contract
Risk -Taking Abilities
Demand for Efficiency and Quality

25. PLANNING CLUSTER
*Goal setting Abilities
*Information Seeking Abilities
*Systematic Planning and Monitoring Skills

26. POWER CLUSTER
*Persuasion and Networking Abilities
*Self Confidence

27. II MASTERY OF THE ENVIRONMENT
SEEK OPPORTUNITIES
* Complaints/irritants
* Un-served (underserved)Needs and Wants
* Talents/hobbies
* Political/Economic/socio-cultural aspects
* Technological developments

30. QUESTION:
WHAT OPPORTUNITY
EXISTS
WHEN YOU SEE THAT
PICTURE?

31. III. MASTERY OF ENTERPRISE MANAGEMENT
The Business Development Cycle
*New Product Development
*Commercialization
*Growth
*Maturity
*Decline

33. BUSINESS PLAN
It is a written narrative
that describes what a
new business intends
to accomplish and
how it plans to
achieve its goals.

34. Reasons for Writing a Business Plan
1. Internal Reason
• It forces the entrepreneurs to systematically think
through every aspect of their new venture.
2. External Reason
• It communicates the merits of a new venture to
outsiders, such as investors and bankers
• To solicit opinions and advice from experts/mentors who
can freely give invaluable advice regarding the proposed
business.

35. Important Factors Which will
Produce a Successful Business
1. A sound business concept
• Picking the right business to begin with
2. Understanding of your market
• Test market your product to service before you start
3. A healthy, growing and stable industry
• Find businesses with great economics and not necessarily
great inventions or advances to mankind

36. 4. Capable management
• Look for people with complementary skills
• Plan to hire people who have skills that you lack
5. Able financial management and control
• Have knowledge on financial tools to keep track of your
financial performance such as income statement, balance
sheet, cash flow, and fund management
6. A consistent business focus
• Focus on something you can do so well

37. BUSINESS PLAN OUTLINE
Guide Questions
Executive Summary
• What is the nature of the project?
• What are the entrepreneur’s
competencies and qualifications?
• What are the project’s
contributions to the local and
national economy?

38. Section 1: Marketing Plan
• What is the product?
• How does it compare in quality and price with its
competitors?
• Where will be the business be located?
• What geographical areas will be covered by the
project?

39. • Within the market area, to whom will the
business sell its products?
• Is it possible to estimate how much of the
product is currently being sold?
• What share or percent of this market can be
captured by the business?
• What is the selling price of the product?
• How much of the product will be sold?

40. • What promotional measures will be
used to sell the product?
• What marketing strategy is needed to
ensure that sales forecast is achieved?
• How much do you need to promote
and distribute your product?

41. Section 2: Production Plan
o What is the production process?
o What buildings and machinery (fixed assets) are
needed and what will be their cost?
o What is the useful life of the building and
machinery?
o How will maintenance be done and are spare
parts available locally?

42. oWhen and where can the machinery be
obtained?
oHow much capacity will be used?
oWhat are the plans for using spare
capacity?
oWhen and how will the machinery be paid
for?
oWhere will the factory be located and how
will the factory be arranged?

43. o How much raw materials are required?
o How much will the raw materials cost?
o What are the new sources of raw
materials? Are they available
throughout the year?
o How many direct and indirect labor are
needed and what skills should they
have?

44. o What will be the cost of labor?
o Are workers available throughout the year?
If not, what effect will this have on
production?
o How will the workers be motivated?
o What factory overhead expenses are
involved?
o What is the production cost per unit?

45. Section 3: Organization and
Management Plan
How will the business be organized?
How will the business be managed and
operated?
What is the business experience and
qualifications of the entrepreneur?

46. What pre-operating activities must be
undertaken before the business can
operate?
What pre-operating expenses will be
incurred?
What fixed assets will be required for the
office?
What administrative cost will be incurred?

47. Section 4: Financial Plan
• What is the total capital requirement?
• Is a loan needed? What will be the equity
contribution of the entrepreneur? And how
much?
• What security (collateral) can be given to the
bank?
• What does the Profit and Loss Statement
indicate?

48. • What does the Balance Sheet indicate?
• What is the loan repayment schedule?
• What is the break-even point (BEP)?
• What is the return of investment (ROI)?
• Is the project feasible?

50. WHAT MAKES YOUR PRODUCT
DIFFERENT FROM OTHERS?
•BENEFITS
•QUALITY
•FEATURES
•SIZE
•COLOR

53. PRICE
•On-going pricing
•Mark-up pricing

54. • Is it worth buying?
• Is service /product affordable
to the target market?
• Are the prices competitive?

55. PLACE
•Distribution
•Where to sell?
•In the community? Town?
City?
•Why there?
•Where else to go?

56. PROMOTION
• Informing the customer about the
product
• advertising
• personal selling

57. PEOPLE
•WHO WILL SELL THE PRODUCT?
•WHO ARE THE WORKERS?

58. PACKAGING
•CONVEY A MESSAGE
•PROTECT

59. POSITIONING
• WHAT IS THE COMPETITIVE
ADVANTAGE?
• “companies that think of what they can give
to people far better than those that think of
what they can get”