Origin & Nature of Entrepreneurship

Reported by: Rowena Esteban & Diane Gervacio

..from..
French
entreprendre means to undertake

Literature
Provided men and materials needed by feudal lords to wage war against their enemies (service)

Connotation by other authors and scholars

between-taker or -go-between

DEVELOPMENT OF ENTREPRENEURSHIP THEORY AND THE TERM ENTREPRENEUR

actor (war like action) and person in charge of large-scale production projects person bearing risks of profit (loss) in a fixed price contract with the 17th Century government Middle Ages 1725 1797 1803 Richard Cantillon - person bearing risks is different from one supplying capital Beaudeau - person being risks, planning, supervising, organizing and owning Jean Baptiste Say - separated profits of entrepreneur from profits of capital Francis Walker - distinguished between those who supplied funds and received interest and those who received profit from managerial capabilities Joseph Schumpeter - entrepreneur is an innovator and develops untried technology

1876

1934

1961 1964 1975

David McClelland - entrepreneur is an energetic, moderate risk taker Peter Drucker - entrepreneur maximizes opportunities Albert Shapero - entrepreneur takes initiatives, organizes some socialeconomic mechanisms and accept risk of failure

1980

Karl Vesper - entrepreneur seen differently by economics, psychologists, business persons and politicians

1983

Gifford Pinchot - intrapreneur is an entrepreneur within an already establsihed organization

1985

Robert Hisrich - entrepreneurship is the process of creating something different with value by devoting the necessary time and effort, assuming the accompanying financial, psychological, and social risks, and receiving the resulting rewards of monetary and personal satisfaction

 Author Lloyd Shefsky disected the entrepreneur into: entre means to enter pre means before neur means nerve center Which leads to defining entrepreneur as someone who enters a business in time to form or change substantially that business nerve center

 The dynamic process of creating incremental wealth. Karl Vesper A person who is able to look at the environment, identify opportunities to improve the environment, marshall resources, and implement action to maximize those opportunities. Professor
Robert Nelson

Doing things that are not generally done in the ordinary courses of business routine. Joseph
Schumpeter

The ability to create and build a vision from practically nothing. Jeffry Timmons & co-authors on
New Ventures Creation

 Behaviors of an Entrepreneur (Albert Shapero) Initiative taking The organizing and reorganizing of social/economic mechanisms to turn resources and situations to practical account The acceptance of risk and failure

 The process of creating something different with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, and social risks, and receiving the resulting rewards of monetary and personal satisfaction.
Hisrich and Peter

The process of identifying opportunities in the marketplace, marshalling the resources to pursue those opportunities, and committing actions and resources necessary to exploit the opportunities for long-term personal gain. Sexton and BowmanUpton

 In Sociology, Max Weber refers to entrepreneur as the ultimate source of power and authority in an economic organization. In Psychology, they defined traits that make up an entrepreneur like flexibility, sociability, independence and aggressiveness.

William Bygrave s Concept

1. An entrepreneur is someone who perceives an opportunity and creates an organization to pursue it. 2. The entrepreneurial process involves all the functions, activities and actions associated with perceiving opportunities and creating organizations to pursue them.

Entrepreneurship as an APPROACH
Adapter
- Employs a discipline, precise methodical approach - Is concerned with solving, rather that finding problems - Attempts to refine current practices - Tends to be means-oriented - Is capable of extended detail work - Is sensitive to group cohesion and cooperation

Innovator
- Approaches tasks from unusual angles - Discovers problems and avenue of solutions - Questions basic assumptions related to current practices - Has little regard for means, is more interested in ends - Has little tolerance for routine work - Has little or more need for consensus; often is sensitive to others

Entrepreneurship as a PROCESS
1. 2. 3. 4. 5. Initiative Organization Administration Relative autonomy Risk taking

The Filipino Entrepreneur

Influence by both Spanish and American colonizers Entrepreneurship is essentially starting a business of his own, new and small-scale business Peter Drucker Entrepreneurship means or refers to that of being engaged in small and medium enterprises (SMEs) or establishing and managing a business of his own.

The Filipino Entrepreneur

Highly influenced by Spaniards and Americans We define it as starting a new, small-scale business of our own

The Challenge to Entrepreneurs

Be able to compete in a Borderless World Before, local producers compete with local companies Now, they have to compete with International, Multinational and Giant corporations present in the local market Challenge to cast out colonial mentality

The Challenge to Entrepreneurs

Borderless World should not be taken as a threat but an opportunity Challenge to create EXPORT QUALITY products
There are available incentives and support from government and business groups

Information Technology, Cyberspace and information highway

Must be closely watched for its benefits can be exploited by entrepreneurs

The Challenge to Entrepreneurs

3rd millenium posts a great challenge to business minded persons with entrepreneurial orientation.
There is room for innovation, ventures creation, strategic position and business alliances No more room for traditional management systems

Entrepreneurship and Education

Schools train students for employmentship unmindful of the benefits of entrepreneurship Some schools, who now include entrep in their curriculim, now calls for a paradigm shift

Entrepreneurship and Education

Entrepreneurship is an alternative to college education Brother Andrew Gonzales
The country s drop out rate in elementary, secondary and college education is very high. Of the 100 students, only about 48 graduate. Of this number, only 26 enroll and only 16 earn a degree Not necessarily bad because many drop-outs did good, even better than college graduates.

Entrepreneurship and Education

Dep Ed created the Bureau of NonFormalEducation Institutions like DLSU, PSBA, PLM, PCU, NTC and TUP offered courses leading to specialization on entrepreneurship AIM opened its Asian Center for Entrepreneurship, a innovative masteral degree program itself with combined classroom sessions and workplace.

Entrepreneurship and Education

AIM Program is anchored on:
Self-mastery control of self to control one s environment Situation Mastery assess situations and find opportunities where other see problems Entreprise Mastery techniques of developing the enterprise from birth to maturity

Entrepreneurship and Education

AIM degree looks at entrepreneur in this context:
Opportunity finder who sees a need, assess the situation, ventures a risk to fulfill the need and makes a profit Innovator who creates new products and services or expands existing markets Facilitates enterprise productivity, push sales thru schemes and strategies Driven by a strong desire to be successful and consumed by motivation to excel

Socio-Economic Benefits
entrepreneur have proven over and over again to be pioneers who convert ideas into products and dreams into reality. Entrepreneurs blend creativity, innovation and risk taking with hard work to form and nurture new ventures Entrep = job providers! SME coexist with giant corps

Socio-Economic Benefits
Promotes self-help and employment Mobilizes Capital Provides taxes to the economy Empowers individual Enhance national identity and pride Enhance competitive consciousness Improves quality of life Enhances equitable distribution of income and wealth

 Entrep has gone through evolution Coming from service orientation, it has no definite bias as to whether it exists for personal gain or simply providing services in general Contemporary views on entrep refers to it as a kind of culture, traits and attributes of doing business orrientation someohow in a different of innovative way and by assuming some level of risks