TRENDS AND ISSUES
Motivate and inspire students to be future entrepreneurs.
[Link] the readers to apply the theories discussed, thereby,
providing them the opportunity to become self-reliant.
[Link] the entrepreneurial qualities demonstrated by successful
entrepreneurs.
[Link] managerial skills and practices exercised by the successful
entrepreneurs
Challenges of Entrepreneurship
1. Teamwork and delegation.
One of the biggest challenges of entrepreneurship is
transitioning from that “job” to a “company” that runs by itself and is no
longer dependent on you. And to do that, you need a team, and you
need to be able to delegate to them.
There are two primary challenges with teamwork and entrepreneurship:
[Link] get hung up on how they’re going to do something
[Link] hit a roadblock when they don’t have the capabilities or
resources
to do it themselves.
• Hiring a team member is
not a “cost”; it’s an
investment in your
company’s future.
Focus and productivity.
No matter what
industry you’re in or what your
business model is, the key to
success in entrepreneurship is
staying focused on the right things
on a daily basis.
This will make everything in your
business simpler
and allow you to put your full focus
on one challenge
at a time.
3. Work-life balance issues.
The average entrepreneur works 48 hours
weekly, and many work far more than that. When it feels
like everything relies on you, it can be difficult to step
away. This is one of the most distressing challenges of
entrepreneurship, as it can cause burnout, affect
relationships, and even harm your health.
4. Developing good habits and achieving goals.
If you want to achieve progress in your business,
you need to set goals and achieve them. Doing that is harder
than it might sound. It’s one of the most common challenges
of entrepreneurship.
What habits would the person I want to be a year from now
have that I don’t have?
What habits would it be worth doing every day so that I can
become more successful?
Procrastination and time management.
Many entrepreneurs struggle with time
management, and one of the root causes is
procrastination. When you’re forced to do everything in
your business yourself, there will inevitably be activities
that you dread, which will cause you to procrastinate.
Procrastination is the act of delaying or postponing a
task or set of tasks.
Business growth and scaling.
Figuring out how to grow your business is the
most obvious and daunting challenge of
entrepreneurship. There are thousands of ways to grow a
business, and deciding which way is best for you can feel
like an impossible challenge.
What should they focus on to grow their business?
1. Identify all the ways you’re making money in your business right
now.
2. Ask yourself the following four questions for each revenue
stream:
-If you stay with this activity, can it go 10x?
-Does this activity fascinate and motivate you?
-Is this an activity that would last 25 years?
-Is this an activity that would present the possibility of
constant new
innovation?
Successful Entrepreneurship
1. An entrepreneur should be excited by the prospect of work.
2. A successful entrepreneur always has a strong sense of
self-confidence and a healthy opinion of their skills and
abilities.
3. An entrepreneur should always be on the lookout for new
innovations and ideas in order to emerge as a winner.
4. A successful entrepreneur is open to adopting change.
5. Competition should never scare an entrepreneur.
6. An entrepreneur should be highly energetic and motivated.
7. Accepting rejection or constructive criticism can go a long
way in making an entrepreneur successful.
Management skills required to become an
entrepreneur.
Entrepreneurs are individuals who have
the courage to take several risks and
operate their businesses alone. They
are leaders, innovators, thinkers, and
motivators for their teams.
Time Management
The most valuable asset for young entrepreneurs is
their time. As an entrepreneur, you have to manage so
many things simultaneously, and time management is
the key to keeping everything on track.
Eliminating interruptions, prioritizing tasks, and
increasing effectiveness and productivity are vital to
getting more work done in less time.
2. Business Planning
Every entrepreneur needs to develop a business
plan or a blueprint for his new business.
A good business plan is a single document divided
into several sections, including a description of the
organization, market research, sales
strategies, competitive analysis, and financial data.
3. Employee Management
An entrepreneur must know how to manage people.
He should be a good judge of the character and abilities
of an individual such as hiring the right employee is the
foremost step for the success of a company.
4. Customer Management
An entrepreneur must know how to manage his
relationships with existing customers, focusing on
creating loyalty to his business.
5. Sales Management
Selling or sales management is an essential skill
every entrepreneur must master.
6. Financial Management
Even if your business’s finance is handled by an
accountant or a finance professional, you must know how
to plan, organize, direct, and control financial activities
such as procurement and utilization of funds.
7. Business Management
Being a successful entrepreneur involves more than
enthusiasm and a good eye for new opportunities. A
thorough understanding of the essential business
functions is a prerequisite for entrepreneurs who want to
take their business to the next level.
Case Analysis: Successful Stories of Nanay Coring
[Link]
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Based on the story given:
1. What are the struggles of Nanay Coring?
2. What makes Nanay Coring becomes successful ?
3. What lesson can you get from her that can apply into
your life?
Origin/Roots
Theories/Paradigms
Meaning/Meanings
The entrepreneur
LEARNING OBJECTIVES
At the end of the lesson, you should be able to:
1. Identify the origin and nature of entrepreneurship.
2. Distinguish newness from innovation,
3. Enumerate the broad impact of Entrepreneurship on
the economy.
4. Determine contemporary views on entrepreneurship.
ETYMOLOGY
"entrepreneur" comes from the
French word "entreprendre," which
means "to undertake."
The French word is derived from the
Latin word "interprendere," which
means "to take on" or "to
undertake."
MAKE A LIST OF THIS:
WHAT ONE HAS TO UNDERTAKE….
What are the elements that one has to undertake (what
do you need to prepare):
IDEA/S-needs, gaps, plan/roles
INTENTION—steps/procedures
RESOURCES-action, goal, skills
Components of what has been undertaken (what do
you need to assess):
PROGRESS/STATUS/MONITORING/CHALLENGES
RE-CHECK THE PLAN-READINESS-
EFFECTIVENESS(learned process, training)
ACTION-revise/improve/adjust the process/plan
Paper on undertaking
(entrepreneur)
RUBRIC:
---CONTENT/SIGNIFICANCE
---12, TNR (FONT)
--- SINGLE SPACE
--- SHORT BOND PAPER
---2-3 OR MORE REFERENCES
MAXIMIZATION OF RESOURCES
As an entrepreneur how do you do this:
ROOTS
An entrepreneur ----- organizes, manages, and assumes
the risks of a business or enterprise with the goal of
making a profit.
• "entrepreneur" ------ 18th century ----- French
economist Richard Cantillon (1755)
• Cantillon defined an entrepreneur as someone who
"buys the means of production at certain prices in
order to sell their produce at uncertain prices.“
• modern—theory of entrepreneurship (Cantillon, 1755)
• introduction of the term “entrepreneur” was
originally attributed to Jean-Baptiste Lamarck (1829)
• removed the ethical and political
concerns in order to focus specifically on
“the economic features of human action”
(Rothbard, 1995, p. 348).
• more scientific, systematic discipline,
scientific foundations (Thornton, 1998
and 2007b).
• an analysis of the property rights of
landowners and the establishment of
villages, market towns, and cities;
• provided an analysis of labor and wage
rate differentials that concludes with the
remarkable finding that the true cost or
“intrinsic value” of something is its
opportunity cost.
• mutual interdependence among the
economic classes and that the economy
would be self-regulating because
entrepreneurs would obey the command of
price signals.
• provided a population theory that predates
and exceeds that of Malthus and integrated
it into his theory of wealth.
• analyzed barter, market prices, money and
its velocity, and changes in the quantity of
money and its relation to changes in the
interest rate.
• explains foreign trade, exchange rates,
banking, inflation, and the business cycle.
• including location theory, population theory, the
price-specie flow mechanism, the circular-flow
model, business cycle theory, methodological
individualism and subjectivism, abstraction, the
ceteris paribus (all other things being equal);
• assumption, closed- and open-economy models,
as well as methodological innovations like the
separation of positive and normative economics.
• Cantillon’s wide-ranging experience as an
entrepreneur led him to a theory of the
entrepreneur that he then used to construct
economic theory. It is in his theory of
entrepreneurship that Cantillon seems to have
had no prior influence (Brown and Thornton,
2013).
Three main actors in
Cantillon’s economy
• Property owners are the main consumers and all
production in the economy (supply) is an attempt
to meet their desires (demand);
• Nature of their income, which leads to the major
characteristic of Cantillon’s entrepreneur: living
on uncertain income, rather than on fixed
income;
• Wage laborers are on fixed wages, entrepreneurs
have no guaranteed income--- the entrepreneur
is responsible for the production, circulation, and
exchange of goods in the economy as they
attempt to meet the demands of property owners
and other consumers.
Cantillon’s theory of the
entrepreneur is distinctly supply-
side (Hébert and Link, 2006).
• ---- capacity the entrepreneur acts on
perceived arbitrage opportunities:
“[entrepreneurs] will buy at a low price the
products of the villages and will [transport
them] to the Capital to be sold there at a
higher price” (Cantillon, 1931, p. 151).
• Cantillon’s theory of entrepreneurship
is that entrepreneurs function by
bearing risk under uncertainty. They
buy goods at known (fixed) prices in
the present to sell at unknown prices in
the future, (Hebert & Link,1988, p. 21)
as cited by Brown and Thorton, 2013.
• An important aspect of Cantillon’s theory
is that it stresses the function, not the
personality of the entrepreneur-----cutting
across production, distribution, and
exchange.
• 19th century---"entrepreneur" became more widely used in the
United States.
• American economists such as Henry Carey and J.B. Say--
entrepreneurship as a key driver of economic growth.
• Scholars recognize that entrepreneurship is the driver of
economic growth and progress (Bosma, Wennekers & Amorós,
2011), Holcombe (2007) as cited by Brown and Thorton
(2013)----creates information, knowledge, and even economic
wisdom.
The problem, then, is not that no economists recognize the role
of entrepreneurship, but rather that entrepreneurship remains
outside the basic framework of mainstream economic analysis,
and especially the mainstream economic analysis of growth.
(Holcombe, 2007, p. 5) as cited by Brown and Thorton (2013)
THINKERS IN THE DEVELOPMENT OF ECONOMICS
• Religious thinkers and philosophers---Spanish
Scholastics---systematically incorporated economic
issues into their philosophical and religious
paradigms;
• Mercantilists----motivated by their self-interest in
business and trade.
HOW ENTREPRENEURSHIP DEVELOPED
ECONOMICS
• entrepreneurship plays a pivotal and
necessary role in his theoretical
constructions;
• illustrates his theoretical constructions with
examples of entrepreneurial plans, actions,
and constraints;
• absent the entrepreneur the theoretical
constructions or models would fail.
Contemporary Entrepreneurship
To an economist, an entrepreneur is one who
brings resources, labor, materials, and other
assets into combinations that make their value
greater than before, and also one who
introduces changes, innovation, and a new
order.
To a psychologist, an entrepreneur could refer
to such a person as typically driven by certain
forces: the need to obtain or attain something,
to experiment, to accomplish, or perhaps to
escape from the authority of others
CONCEPTS RELATED TO ENTREPRENEURSHIP and
INDIVIDUAL ENTREPRENEUR
• Modern capitalism ---- an analysis of
economic, occupational, and social
dynamics.
• Economy
• Economic development
• Iconomy, or cloud working, which
transports ideas of economic and social
progress and prosperity
ENTREPRENEURIAL ACTORS--- INDIVIDUAL
AND SOCIAL MOBILITY
Entrepreneurship is regarded as the
essence of dynamics in modern capitalism
referred to as an entrepreneurial society
(Audretsch, 2007a, b).
Competition is one of the keywords of
market capitalism in the public discussion
of economic affairs, and it is regarded as a
driving force of economic dynamics, which
leads to wealth and prosperity. According
to the idea of perfect capitalism, the
institutions of market and competition go
hand in hand as two sides of the same
medal.
The classic idea already provided
by Adam Smith is that individual
companies and the global
economy both profit when
individual companies try to
realize competitive advantages
by following their aims (Offer,
2012).
Smith’s famous argument and formulation of the “invisible
hand” is mentioned by name in the Wealth of Nations
only once: The individual “generally, indeed,
neither intends to promote the public interest, nor
knows how much he is promoting it. ... he intends
only his gain, and he is in this, as in many other
cases, led by an invisible hand to promote an end
which was no part of his intention. Nor is it always
the worse for the society that it was no part of it.
By pursuing his interest he frequently promotes
that of the society more effectually than when he
intends to promote it. I have never known much
good done by those who were affected to trade
for the public good. It is an affectation, indeed,
not very common among merchants, and very
few words need be employed in dissuading them
from it” (Smith 1910 [1790], 400).
What are your responses on the
following:
• What is “invisible hand? Who/what are
these in Philippine economy? Please give
examples.
• How are the promotion of public interest
and public good be realized in the
context of economic policies? Provide
situations to explain these.
• Explain the possibility of number 2 in
Philippine setting.
Entrepreneur as process and approach
1. Identifying an opportunity
2. Understanding resource requirements
3. Acquiring resources
4. Planning
5. Implementing
Entrepreneur vs. Entrepreneurship
Founder of a Single to multiple
business projects
- An individual or
team of people who - Is the art of turning an idea
not only generate into a venture.
profits but also solve
societal challenges
through products
And services.
Coordinates the Is the process of
essential coordination that allows
requirements of individuals to streamline
an organization. their efforts and
resources.
Entrepreneur Skills
1. Communication
Every entrepreneur needs to be an effective
communicator. Whether a person is a solo
entrepreneur or runs a Fortune 500 company,
they need to understand how to communicate
effectively to all stakeholders and potential
stakeholders that touch the business.
. Sales
The soft skill of sales goes hand-in-hand with
the communication necessary to be successful.
As an entrepreneur, this person needs to be
able to sell anything and everything. An
entrepreneur needs to sell the business idea to
potential investors, the product or service to
customers, and themselves to employees.
Focus
The path to successful entrepreneurship is
riddled with ups and downs. There are the highs
of successes and the despairs of setbacks.
Successful entrepreneur needs to be able to
focus so they can stay the course when the
going gets tough.
. Ability to Learn
The ability to learn is one of the most important
skills to have in life, let alone in
entrepreneurship. If someone is building a
business, however, the ability to learn is
required for success.
Business Strategy
While a successful entrepreneur has, by
definition, built a successful company, the skill
of business strategy is actually the fifth most
important skill that an entrepreneur needs.
Often, entrepreneurs achieve success in their
businesses through their own sheer strength of
will.
Socio-Economic Benefits from Entrepreneurship
1. Entrepreneurship creates employment.
2. Entrepreneurship improves the quality
of life.
3. Entrepreneurship contributes to a
more equitable distribution of income.
4. Entrepreneurship utilizes resources.
5. Entrepreneurship brings social benefits
through the government.
Traits and Characteristics
of an Entrepreneur
1. Vision and
Passion
2. Innovative
3. Risk Taker
4. Leader
5. Persistent
6. Ethical
7. Competitive
Spirit
8. Resilient
Takeaway
What is the importance of
entrepreneurship to me and
to society?
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