CHAPTER 7:
GLOBAL ENTREPRENEURSHIP
AND INTRAPRENEURSHIP
INTRODUCTION:
It is overwhelming and enlightening to
know that the Philippines is bent on
encouraging entrepreneurship in the
country. The Department of Trade and
Industry (DTI) is taking the lead as is
continues to promote entrepreneurship as
related by Kris Crismundo (Aug. 2, 2018) in
her Philippine NEws Agency (PNA) account:
INTRODUCTION:
The DTI said it will continue to promote
entrepreneurship among Filipinos through
education and assistance. Three out of its “7Ms”
to create smarter and more successful
entrepreneurs, are related to education and
helping Filipinos kick off their own livelihood.
These include mindset change, mastery, and
mentoring.
LESSON 7.1: ENTREPRENEURSHIP
VERSUS INTRAPRENERUSHIP
The entrepreneur, the linchpin of the economy,
is an important part of our economic systems.
Linchpin is a person or thing that holds something
together: the most important part of a complex
situation or system. Entrepreneur is a French word
that means “to undertake”.
The webster dictionary defines an entrepreneur
as “the organizer of an economic venture,
especially one who organizes, own manages, and
assumes the risks of a business”.
Entrepreneurship is concerned with
starting new business. Entrepreneurs start
on their own, while intrapreneurs are
working for companies. Entrepreneurs do
not have a guaranteed monthly paycheck
and failure means complete failure and no
fall back. Intrapreneurs can fail, but will not
be worried as they are likely to still have a job
and receive a paycheck.
Entrepreneurship is “the recognition of opportunities (needs,
wants, problems, and challenges and the use or creation of resources to
implement innovative ideas for new, thoughtfully planned ventures.”
Entrepreneurship is concerned with the new ideas connected with new
markets.
Entrepreneurs are distinct from small business owners.
Entrepreneurs rely on creativity and innovation - new products, new
methods, or new market. Small business owners typically enter
established markets, providing a more traditional product or traditional
service to a local market.
Intrapreneurship is a
grade/type of entrepreneurship
within a given system or entity.
Balanced dimensions of the
right level assure graded
sustainable intrapreneuring
(GSI) for optimal output.
Entrepreneurship is not always for
profit. There are entrepreneurial
ventures that are nonprofit. Social
Entrepreneurs look for and implement
innovative solutions to societal
problems; their focus is to solve a
social problem or create a benefit to
humanity.
THERE ARE A LOT OF MYTHS ABOUT
ENTREPRENEURSHIP:
ENTREPRENEURS ARE BORN, NOT MADE.
-this means entrepreneurship is innate, not learned; that you
are borne in to business family and you can carry the genes
of an entrepreneur. You cannot study how to be an
entrepreneur.
ENTREPRENEURS ARE AGGRESIVE RISK TAKERS
02 -they are certainly an adventurous group, but not aggressive
risk takers. Most entrepreneurs are more comfortable with
managed risk.
ENTREPRENEURS MUST INVENT SOMETHING NEW
03 -Entrepreneurship is all about solving problems and providing
an answer to a problem, which nobody thought was possible.
ENTREPRENEURS MAKE MORE MONEY
04 -the typical entrepreneur earns less that he would earn if
working as an employee at the very start of his
entrepreneurial endeavor.
THERE ARE A LOT OF MYTHS ABOUT
ENTREPRENEURSHIP:
BEING FIRST IS ESSENTIAL
There is a saying that who gets to the market first gain the most,
because as the old cliche goes, “the early bird catches the worm.”
A GOOD PRODUCT MEANS A SUCCESSFUL BUSINESS
06 A good product is nice, but not everything, because, as we have
studied, marketing needs 7Ps. A successful business greatly
depends on how capable and good the entrepreneur is, because
he/she is the one running the business
IT TAKES A LOT OF MONEY TO START A BUSINESS
07 It is impractical to think that a business can be started with no
money, it is also not true that you need a huge amount of money
to start your own business.
AGE IS LIMIT
08 Being young and restless to become a successful entrepreneur is
a misconception. There is a long list of successful people to prove
that age does not matter.
Lesson 7.2: The Environment
of Entrepreneurship and
Intrapreneurship
As entrepreneurs are an important part of the economic
system, entrepreneurship plays a key role in economic
development.
Environment refers to the
surroundings in which a person, animal,
or plant lives or the conditions under
which a business operates.
Entrepreneurship/intrapreneurship
environment refers to the various
facets within which entrepreneurship
and intrapreneurship operate and
survive.
The entrepreneurial environment should be conducive to the
entrepreneurial venture for the venture to succeed and thrive. As
expected, the environment covers the political, socioeconomic,
technological, legal, and infrastructural spheres that influence
entrepreneurship. Business environment has a positive
relationship with the development of entrepreneurship.
1. Political - the work “politics” come from the Greek
work “polis” which means “city-state”. What
transpires in the “polis” is politics. Politics,
therefore, is a term encompassing the totality of
human activities transpiring within the city-state
(intrastate), as well as among states (interstate).
Politics is a science. It is a systematic body of
knowledge that deals with the government and
the regulation, maintenance and development, and
defense and augmentation of the state. It also
deals with the protection of the rights of its
citizens, safeguarding the enhancement of morals,
harmony, and peace of human relations.
Some of the biggest ways that political activity can shape
entrepreneurial decisions and outlook include the following:
• any political change in government or in congress represents
Demographic insights
the rise or fall of a particular demography.
Periods of activity or inactivity in • the creation, change, or removal of legislation could have a
legislation huge impact on business, especially for start-ups.
• political tumult often leads to fear and fear leads to the rise of
Fears on new development
new needs.
• similarly, new developments stir people’s excitement and
Excitement over new developments
their needs may change in different ways.
Cultural attitudes and buying • politician’s leadership has the potential to shape an entire
decisions generation of cultural attitudes and beliefs.
2. Socioeconomic means the interaction of
social and economic factors. Economic
relates to the trade, industry and the
creation of wealth.
An economic system is an organized way in which a country
allocates resources and distributes goods and services across
the whole nation, a type of social sytem.
Socioeconomic factor are the social and economic
experiences and realities that help mold one’s personality,
attitudes and lifestyle; the factors that define regions and
neighborhood and the lifestyle components and measurements
of both financial viability and social standing.
Among the socioeconomic factors that will affect entrepreneurship
are the following (classroom.synonym.com 2021):
• Educational level influence economic social status
a. Level of Education as higher paying jobs tend to require advanced or
specialized education.
• the creation, change, or removal of legislation could
b. Income and Occupation have a huge impact on business, especially for start-
ups.
• political tumult often leads to fear and fear leads to
c. Health and Lifestyle
the rise of new needs.
• similarly, new developments stir people’s excitement
d. Quality of neighborhood
and their needs may change in different ways.
3. Technology advancement has significantly
allowed efficient use of resources, including
the need to use renewable resources and
utilize nonrenewable resources within
planned limits.
If an economy is made up of a large number of
entrepreneurial units, risks can be diversified. Even
though some enterprises may fail, others will be
successful and the economy as a whole can grow rapidly.
4. Legal. For legal environment to efficient to
support entrepreneurship, it should provide
entrepreneurs with right and protections and simple
legal procedures for start-ups.
Intellectual property (IP) and the IP protection
measures need to strengthen and enhance
entrepreneur trust. A proper dispute resolution
system that fits the new nature or entrepreneurship
need to be implemented. Adequate insolvency laws
are needed. A proper entrepreneurial ecosystem
needs to be established by minimizing obstacles that
restrain and prevent entrepreneurial engagement.
5. Infra means “below”, so infrastructure is the “underlying
structure” of a country and its economy, the fixed installations
that it needs in order to function. Infrastructure can enhance
connectivity and linkages allowing the recognition of
entrepreneurial opportunities and the ability of entrepreneurs to
actualize those opportunities.
infrastructure does not simply apply to the physical systems a
country has. Van de Ven (1993) says it includes the following:
a. Institutional arrangements to legitimate, regulate and
standardized a new technology
b. Public resource endownments of basic scientific
knowledge, financing mechanisms, and a pool of
competent labor; and
c. Proprietary research and development (R&D),
manufacturing, marketing, and distribution function by
private entrepreneurial firms to commercialize the
innovation for profit.
Lesson3.2
INTRAPRENEURIAL ENVIRONMENT
REQUISITES
We all know that entrepreneurship works in a wider, bigger
environment than intrapreneurship. Entrepreneurship exist in
the international market. On the other hand, intrepreneruship
Intrapreneurship ensures that the company will never run out of
ideas, ideas that push for new product development, new services, or new
technology. Supporting intrapreneurial behaviors within the company
culture will increase the number of innovations developed leading to new
products and services launched into both established and new markets.
Entrepreneurship exists in a sector
other than the company, in the industry, in
the country, or even in the international
market. On the other hand, intrapreneurship
is concentrated in the single and inside a
particular company. Intrapreneurs are the
company’s employees.
For an intrapreneur to succeed, he/she should be working in an
environment that will encourage, promote, and instill in him the drive to
pursue his innovative ideas to reality. These include the following:
1. Innovation. An innovative working approach appeals to employees
with higher levels of creativity and lateral thinking, helping
companies to hold on to their best talents. Also, because of
innovation brings together wider groups of staff, innovation
processes contribute significantly to a company’s social
development, making staff fell valued, engaged, and more cohesive.
2. Originality and experimentation. The spirit of
the intrapreneurship cannot be force on individuals,
but should originate. Ideas are “spur of the
moment” thing and belongs to no one else but to
the person who got the idea.
The intrapreneur should be free to alter plans in
order to achieve success. Creating smart solutions,
slick products, or simple but unique processes, a
business needs enterprising minds, full of ideas
and hungry to experiment.
3. Top management support. The
support and encouragement from top
management is critical for
intrapreneurial activities to prosper and
succeed. Without management support,
a successful intrapreneurial environment
cannot be created in a company. Such
support is very important, particularly in
providing the needed resources.
4. Availability of resources. For any endeavor to progress and
succeed, it should have the needed resources available. The
different M’s of management - men, money, methods, materials,
markets, media, and moment (time) - should be made available to
intrapreneurs.
5. Teamwork. The teamwork
approach needs to be encourage for
success of intrapreneurial activities.
As we have said, even the office
layout can encourage teamwork. Top
management support is
overwhelmingly important.
6. Evaluation and reward. The company should set a longtime horizon
for evaluating success of intrapreneurial ideas and activities. More
importantly, the company should institute a reward program for
rewarding intrapreneurs so that they become more motivated to
contribute to the growth of the company.
7. Nurture an innovative company culture. The intrapreneurs’
personal drive helps to foster productive and highly engaged
teams, develop other employees, and as a result, drive impressive
growth for the company. The intrapreneurial spitir is contagious.
Intrapreneurship is then ingrained in the organizational culture.
