Origin & Nature of Entrepreneurship

8/6/2019 Origin & Nature of Entrepreneurship

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Origin & Nature ofOrigin & Nature of

EntrepreneurshipEntrepreneurship

Reported by:

Rowena Esteban &

Diane Gervacio


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..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


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DEVELOPMENT OF ENTREPRENEURSHIP THEORY AND THE

TERM ENTREPRENEUR

Middle Agesactor (war like action) and person in charge of large-scale production

projects

17th Centuryperson bearing risks of profit (loss) in a fixed price contract with the

government

1725Richard Cantillon - person bearing risks is different from one supplying

capital

1797Beaudeau - person being risks, planning, supervising, organizing and

owning

1803Jean Baptiste Say - separated profits of entrepreneur from profits of

capital

1876

F

rancis Walker - distinguished between those who supplied funds andreceived interest and those who received profit from managerial

capabilities

1934Joseph Schumpeter - entrepreneur is an innovator and develops untried

technology


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1961 David McClelland - entrepreneur is an energetic, moderate risk taker

1964 Peter Drucker - entrepreneur maximizes opportunities

1975Albert Shapero - entrepreneur takes initiatives, organizes some social-

economic mechanisms and accept risk of failure

1980Karl Vesper - entrepreneur seen differently by economics, psychologists,

business persons and politicians

1983Gifford 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


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Author Lloyd Shefsky disected the

entrepreneurinto:

entremeans to enter

pre means before

neurmeans nerve center

Which leads to defining entrepreneur as

someone who enters a business in time toform or change substantially that businessnerve center


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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. ProfessorRobert 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 onNew Ventures Creation


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Behaviors of an Entrepreneur (Albert Shapero)

Initiative taking

The organizing andreorganizing of

social/economic mechanisms to turn

resources and situations to practical account

The acceptance ofrisk andfailure


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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 Bowman-Upton


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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.


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WilliamWilliam BygravesBygraves ConceptConcept

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.


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Entrepreneurship as anEntrepreneurship as an APPROACHAPPROACH

Adapter- Employs a discipline, precise

methodical approach

- Is concerned with solving,rather that finding problems

- Attempts to refine currentpractices

- Tends to be means-oriented

- Is capable of extended detailwork

- Is sensitive to groupcohesion 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, ismore interested in ends

- Has little tolerance for routinework

- Has little or more need forconsensus; often is sensitive toothers


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Entrepreneurship as aEntrepreneurship as a PROCESSPROCESS

1. Initiative

2. Organization

3. Administration

4. Relative autonomy

5. Risk taking


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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.


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The Filipino Entrepreneur

Highly influenced by

Spaniards and Americans

We define it as starting anew, small-scale business of

our own


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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


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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


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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


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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


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Entrepreneurship is an alternative to college

education Brother Andrew Gonzales

The countrys 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.


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AIM Program is anchored on:

Self-mastery control of self to control ones

environment

Situation Mastery assess situations and find

opportunities where other see problems

Entreprise Mastery techniques of developing

the enterprise from birth to maturity


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AIM degree looks at entrepreneur in this

context:

Opportunity finder who sees a need, assess the

situation, ventures a risk to fulfill the need andmakes 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


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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


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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


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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

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Origin & Nature of Entrepreneurship

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