St.

Paul University surigao

(St Paul University system)
Cor. San Nicolas & Rizal Streets
Surigao City

Entrepreneurship

Edradan, John Rel E.

STAGES OF EVOLUTION OF ENTREPRENEURSHIP

According to scribd.com, the evolutionary process of entrepreneurship activities may be divided into the
following broad stages:
1. Hunting Stage - The primary stage of the evolution of the economic life of man was hunting stage.
Wants were limited and very few in numbers. The family members themselves satisfied problems of food,
clothing and shelter. Producers were the consumers also. Robinson Crusoe, living in the
desertedi s l a n d , s a t i s f y i n g h i s o w n r e q u i r e m e n t s h a d n o k n o w l e d g e o f b u s i n e s s . Peo
ple in some parts of Africa and India still lead this type of life. In this stage problems of
production and distribution were not completed since wants were simple and limited.
2. Pastoral Stage - With the progress of mankind gradually mental
understanding developed and people started realizing that instead of killing animals, they should breed
and rear them. Thus cattle breeding encouraged t h e u s e o f m i l k , a n d t h e y h a d t o t h i n k
in terms of grazing areas for their cattle. The surplus milk, meat and other
related products were spared
of e x c h a n g e . T h i s s t a g e c a n b e t e r m e d a s t h e f i r s t s t a g e o f e c o n
o m i c development and the beginning of commerce.
3. Agricultural Stage - In search of grazing areas, they further realized that they should grow plants as
food for animals. They started testing some grain products and slowly developed a taste in plants
and the land was used for cultivation. Groups of persons started living together on their
agricultural f i e l d s , w h i c h w e r e s u b s e q u e n t l y c o n v e r t e d i n t o s m a l l v i l l a g e s w i t h
their farms. Free exchange of goods was started and the activities were also
divided to the extent of division of labor at the village level to complement the needs of each other.
Initially each village was self-sufficient, but later they began small trading activities on barter
basis.
4. Handicraft Stage - In the agricultural stage, people started learning the use of cloth made of cotton
products, and they developed the segments of the workers for different activities. Cottage scale
setup was developed at the village level to nearby villages, and in exchange they brought requirements
either to consume themselves or for their village friends. Since the demand f o r g o l d
c o i n s , s i l v e r c o i n s , s k i n a n d h i d e e t c . i n c r e a s e d t h e a c t i v i t i e s o f cobblers, gold
smiths, and blacksmiths, laborers also rapidly increased, and caste system was also formed on the basis of
activities they did. Everybody selected their job according to their own choice and taste.
5. Present Industrial Stage - T h e u s e o f m e c h a n i c a l d e v i c e s a n d t h e commonly
acceptable form of monetary system accelerated the growth of entrepreneurship activities.
The progress of science and the increase in the means of transportation and communication
enabled to travel widely and the markets were developed in the country and abroad.
Entrepreneurship
Entrepreneurship, is the process of designing, launching and running a new business, which is often
initially a small business. The people who create these businesses are called entrepreneurs
Entrepreneurship has been described as the "capacity and willingness to develop, organize and
manage a business venture along with any of its risks in order to make a profit. While definitions of
entrepreneurship typically focus on the launching and running of businesses, due to the high risks
involved in launching a start-up, a significant proportion of start-up businesses have to close due to
"lack of funding, bad business decisions, an economic crisis, lack of market demand—or a
combination of all of these.
A broader definition of the term is sometimes used, especially in the field of Economics. In this
usage, an Entrepreneur is an entity which has the ability to find and act upon opportunities to
translate inventions or technology into new products: "The entrepreneur is able to recognize the
commercial potential of the invention and organize the capital, talent, and other resources that turn
an invention into a commercially viable innovation. In this sense, the term "Entrepreneurship" also
captures innovative activities on the part of established firms, in addition to similar activities on the
part of new businesses.

Socio-economic benefits of entrepreneurship

According to entrepreneur.com, there are 7 ways that entrepreneur drive our economic development and
here are the seven ways:
1. Investing in products and services people need.
What motivates a person to start a new business? According to traditional models, entrepreneurs
create new businesses in response to unmet needs and demands in the market. That is, there is
an opportunity to provide a product or service that is not currently in existence, or otherwise
available. Economists refer to these business-starters as “opportunity” entrepreneurs in order to
distinguish these individuals from those who start businesses for lack of better work opportunities.
So-called “opportunity” entrepreneurs, who launch new enterprises in response to market needs,
are key players when it comes to fostering economic growth in a region. They enable access to
goods and services that populations require in order to be productive. This is not to ignore
“necessity” entrepreneurs that launch enterprises because they have no other options. Both can
and do contribute to economic growth.

2. Providing employment opportunities.

New businesses need to hire employees. They create jobs and these economic opportunities uplift and
support communities through increasing the quality of life and overall standard of living.

3. Commerce and regional economic integration.

Technology has made it possible for small, entrepreneur-led businesses to expand into regional and
global markets. When new businesses export goods and services to nearby regions, these enterprises
contribute directly to a region’s productivity and earnings. This increase in revenue strengthens an
economy and promotes the overall welfare of a population. Economies that trade with one another are
almost always better off. Politics aside, engaging in regional and international trade promotes investment in
regional transportation and infrastructure, which also strengthens economies. This has never been truer
than it is today, as we live in an increasingly interconnected global economy. Even for a large and
advanced economy like the United States, foreign markets have a significant role. Foreign trade, according
to some estimates, is responsible for over 90 percent of our economic growth.

4. New technologies promote efficiency.

The ability to turn ideas into new products and services that people need is the fount of prosperity for any
developed country. Economic growth, generally speaking, is driven by new technologies and their creative
applications. Periods of rapid innovation historically have been accompanied by periods of strong economic
growth. The impetus of innovation is the greatest natural resource of all: the human mind. Creating
innovative products and solutions requires an educated population and an environment where collaborative
work can take place. In addition to being good for business, education increases workforce creativity and
quality of life.

5. Addressing environmental challenges.

Innovation is (and will continue to be) crucial when it comes to addressing the enormous environmental
challenges we face today: combating climate change, lowering global greenhouse gas emissions, and
preserving biodiversity in the environment. Without power for extended periods of time, commerce comes
to a halt. Without water, we cannot live. Reliable access to these innovations (such as irrigation
technology, electricity, and urban infrastructure) increases productivity and enhances economic
development.

6. Innovation impacts socio-economic objectives.

Innovative business practices create efficiency and conserve resources. Innovation in agriculture is
especially relevant for addressing socioeconomic challenges (in addition to encouraging economic growth).
In the U.S., for instance, we waste billions of dollars annually due to inefficiencies and uncompetitive
practices in our healthcare system. Hopefully, new ideas and innovations in the future will address these
problems, resulting in further reforms. When this occurs, Americans’ overall health and quality of life will
benefit, and so will our economy if our wasteful healthcare costs also decrease.

7. Innovation happens where there is competition.

In essence, there is a positive feedback loop among innovation, entrepreneurship, and economic
development. New and growing businesses represent the principal sources of job creation and innovative
activity in an economy, two factors that generally result in the rising standards of living for all.
The Role of entrepreneurship in the economic development

According to Berna Opines, “It involves often what has aptly been called ‘subjective innovation’, that is, the
ability to do things which have not been done before by the particular industrialists, even though unknown
to him, the problem may have been solved in the same way by the others.” These imitative entrepreneurs
constitute the main spring of development of underdeveloped regions.

Further, India which itself is an underdeveloped country aims at decentralized industrial structure to militate
the regional imbalances in levels of economic development, small-scale entrepreneurship in such industrial
structure plays an important role to achieve balanced regional development.

It is unequivocally believed that small-scale industries provide immediate large- scale employment, ensure
a more equitable distribution of national income and also facilitate an effective resource mobilization of
capital and skill which might otherwise remain unutilized.

Lastly, the establishment of Entrepreneurship Development Institutes and alike by the Indian Government
during the last decades is a good testimony to her strong realization about the premium mobile role of
entrepreneurship plays in economic development of the country.

The important role that entrepreneurship plays in the economic development of an economy can
now be put in a more systematic and orderly manner as follows:

1. Entrepreneurship promotes capital formation by mobilising the idle saving of the public.

2. It provides immediate large-scale employment. Thus, it helps reduce the unemployment problem in the
country, i.e., the root of all socio-economic problems.

3. It promotes balanced regional development.

4. It helps reduce the concentration of economic power.

5. It stimulates the equitable redistribution of wealth, income and even political power in the interest of the
country.

6. It encourages effective resource mobilization of capital and skill which might otherwise remain unutilized
and idle.

7. It also induces backward and forward linkages which stimulate the process of economic development in
the country.

8. Last but no means the least, it also promotes country’s export trade i.e., an important ingredient to
economic development.
Successful entrepreneurs in Philippines

Henry Sy

SM is more than just a shopping mall. It is a beloved institution. Many of my favorite memories happened in
SM. From shopping, watching blockbuster movies, date night, ice skating to food tripping, SM has it all.

However, this gigantic chain of more than 44 large-scale shopping centers in the Philippines and
throughout Asia has very humble beginnings.

Henry Sy came from an impoverished family in Jinjiang, a town near Xiamen, China. The entire family left
China in 1936 to help the family patriarch manage a thriving convenience store in Manila.

Unfortunately for the family, their store was burned down during World War II. However, business-minded
Henry saw an opportunity selling used military combat boots and other postwar goods from supportive
American soldiers!

His success led to the opening of his first shoe store, the SM in Avenida, Manila. Henry had problems
finding shoe manufacturers who could design shoes according to what he had in mind, but he persisted. He
spoke to customers and built his own network of suppliers and manufacturers.

That never-say-die attitude got Henry Sy to where he is now: one of the richest men in the world and a
world-class commercial center developer who provides opportunities to both entrepreneurs and the working
class!

John Gokongwei Jr., JG Holdings

John’s life story is a “rich-to-rags-to riches” story. John Jr. was born in China to the scion of one of the
wealthiest families in Cebu.

When the father died, so did the business and the family fortune was soon gone. John Jr. supported his
family by peddling items along the streets of Cebu by bike. Soon, he was trading items by boat to Lucena
City and to Manila by truck. Eventually, he started importing items from the US.

John Jr. soon realized that importing carried too much risk and low margins. Thus, in 1957, he borrowed
Php 500,000 from China Bank and started a corn milling business named Universal Corn Products.

By 1961, Universal started diversifying its products and launched several popular brands such as Blend 45.
Universal Corn Products was renamed Universal Robina Corporation.

Today, the Gokongwei family owns several successful and highly diversified businesses. Among these
are Robina Land Corporation and Cebu Pacific.
Qualities demonstrated and practices that influence the success of my admired entrepreneurs in
the Philippines

The qualities that I like in Henry Sy and John Gokongwei is that they are both determined about their self
and also hardworking, even though that they are down from the start they are still willing to go up and thrive
to reach their success. The practices that influence their success are the same, all their family business
went bankrupt and burned down so they find a way to get back at in business, using only what they have
they try to utilize their resources so that they could find their own success.