ENTREPRENEUR --> person 5 SALIENT FEATURES OF ENTREPRENEURSHIP .

ENTREPRENEURSHIP --> process 1.) It is an art of correct practices

ENTERPRISE --> outcome - is an art not a science

- not static or stagnant
- continuously grows, develops, improves, expands; the
change doesn’t stop.
ENTREPRENEUR
- Dynamic
- Locates the need of society and tries to meet it it with - Closely related to creativity
his/her innovative ideas.
2.) It is a wealth creating venture
ENTREPRENEURSHIP
WEALTH
- Process of establishing a business to gain profit.
- profit: excess income or revenue from the cost and
JOSEPH SCHUMPETER expenses
- : way of measuring the operating performance
- Concept of product innovation, marketing and of a business
production methods -
- Entrepreneur: has distinct characteristics or attributes - Abundance of money, property, or possession.
- : only few in a million - Not even refer to business profit
- Is created when the value of business has increased
ENTREPRENEUR abundantly and the life of its owner has improved
considerably.
- “entreprendre” : to undertake
- Business paradigm: start of a new business
3.) It provides goods and services
ENTREPRENEURSHIP
- Creates economic wealth
- “entrepreneur” - Essential principle: “not to sell waste to consumers
- Practice or process but only valuable goods and services”
- Waste: anything of no value to anybody
AMERICAN HERITAGE DESK DICTIONARY - To satisfy consumers, they get more benefits than what
they pay
- Entrepreneur: a person who organizes, operates and - Not every person considers the same things as
assumes the risk of business venture (enterprise) valuable
ENTREPRENEURSHIP
4.) It entails opening and managing self-owned enterprise.
- Art of observing correct practices in managing and - Two important elements: opening a self-owned
operating business enterprise to provide goods and enterprise and managing it
services that are valuable to customers. - Intrapreneurship: businesses that are being managed
by others for the benefit of the owners, not
SMALL BUSINESS entrepreneurship
- Includes all types of business operations:
- Business/enterprise that adopts and practices the manufacturing, merchandising, and services.
principles of entrepreneurship. - Owner must also be the manager
- owned by one person with limited workforce of not more - 1.) planning
than 20 persons - = making specific ways to achieve goals
- includes SME promoted by NGOs in their desire to - 2.) organizing
improve the lives of the filipino people through - = includes staffing
entrepreneurship. - 3.) influencing
- a.) Carrot Approach- giving incentives
- b.) Stick Approach - strict
-
ORDINARY SMALL BUSINESS
- 4.) controlling
- pertains to a business enterprise managed and - = monitoring the staffs and problems
operated by an owner who is not an advocate of and 5.) It is a risk-taking venture.
does not practice the concepts and principles of
entrepreneurship. - Risk: inherent in an entrepreneurial venture
- Easiest and most practical way to augment their : cannot be detached from EV
income. - entrepreneurial venture: born because of new ideas
or opportunities
- business risk: risk in entrepreneurship
-
THEORIES IN ENTREPRENEURSHIP . - Risk-taking: an important dimension that will
differentiate entrepreneur from a worker
THEORY - Uncertainty: important factor in production
- Insurable risk- naipapasa, predictable, insurance
- A generalization that explains a set of facts or - Non-insurable risk- hindi, depression phase,
phenomena. fluctuation of demand, technological changes
- Not an absolute truth
- Can be supported by another observation or proven to
be otherwise OTHER THEORIES IN ENTREPRENEURSHIP .

INOVATION THEORY 1.) Weber’s sociological theory

- Max Weber
- Joseph Schumpeter: Austrian economist and political - Social cultures: primary driving elements of
scientist entrepreneurship
- “The Theory of Economic Development”
- Development is the product of structural change or 2.) Kaldor’s technological theory
innovation. - Nicholas Kaldor
- no development in an economic equilibrium or status - Modern technology: an essential factor in production
quo
- innovation: force that propel revolutionary change 3.) Leibenstein’s gap-filling theory
: new product - Henry Leibenstein
: new production method - The primary role of entrepreneurship in any economic
: new market activity is to fill the existing gap (untapped market)
TARGET MARKET - Connect different markets
1.) captured market - Trends
2.) untapped market
: new supplier 4.) Kirzner’s learning-alertness theory
: new industry structure - Izrael Kirzner
1.) primary- agricultural industry - Spontaneous learning and alertness are the two
2.) secondary- manufacturing industry major attributes of entrepreneurship in any given
3.) tertiary- food industry economy.

KEYNESIAN THEORY

- John Maynard Keynes- British economist

- “The General Theory of Employment, Interest and
Money” published under Great Depression in 1936
- Role of government in entrepreneurial and economic
development, most especially when the economy was
experiencing depression.
- Private sector only perform when there is money so the
government has to provide
- Price floor (lowest possible price)
- Price ceiling (highest possible price)

ALFRED MARSHAL THEORY

- Alfred Marshall: English economist

- “Principles of Economics”
- 4 FACTORS IN PRODUCTION OF GOODS AND
SERVICES
1.) Land
2.) Labor- employee is the most important
3.) Capital
4.) Organization- coordinating element
- Entrepreneurs: prime movers in organization
: must be able to foresee possible
changes in the future supply
: w/o this development will be slow and
limited

RISK AND UNCERTATINTY-BEARING THEORY

- Frank Hyneman Knight: an American economist

: conceptualized risk and
uncertainty
- “Risk, Uncertainty and Profit”
- Entrepreneur: agent of production process where
he/she connects with the producers and consumers
- :anticipate possible random events to
happen while shouldering the
risk at the same time