PART 1: FOUNDATIONS

OF ENTREPRENEURSHIP
CHAPTER 1: THE ENTREPRENEURIAL MINDSET
 LEARNING OBJECTIVES

Identify the different types of entrepreneurs.

Describe the entrepreneurial process.

Describe the typical characteristics of Filipino

entrepreneurs.
GUESS
THE
LOGO
 APPLE

STEVE JOBS
MICROSOFT

BILL GATES
 FACEBOOK

MARK
ZUCKERBURG
 UBER

TRAVIS
KALANICK
 PHILIPPINE
AIRLINES

LUCIO TAN
 ASIA
BREWERY

LUCIO TAN
 NATIONAL
BOOK STORE

SOCORRO
RAMOS
 ZEST-O

ALFREDO
YAO
 MANG
INASAL

EDGAR
SIA II
 JOLIBEE

TONY TAN
CAKTIONG
 LAMOIYAN
CORPORATION

CECILIO
PEDRO
ECHO STORE

PACITA
JUAN
 WHAT IS AN ENTREPRENEUR?

•Comes from the French word

“entreprendre” which means
“to undertake”.
 JOSEPH SCHUMPETER
• The Theory of Economic Development
• Entrepreneurs are individuals who have
generated substantial value and profits from
innovations in a very short period of time.
TYPES OF ENTREPRENEURS

•Mega Entrepreneurs
•Micro Entrepreneurs
 MEGA ENTREPRENEURS
•These individuals are also willing to
absorb huge risks using enormous
amounts of capital in their business
venture. (Quickmba.com)
 MICRO ENTREPRENEURS
•They engage in micro and small businesses
as an alternative to formal employment.
•They are short in funds and inadequate in
skills.
 PETER DRUCKER
• Innovation and Entrepreneurship (1985)
• Emphasized the “discipline” in the process of
starting and managing a business.
 QUESTION:
• Would you rather be an entrepreneur or a
manager in a big corporation? Explain your
answer.
ENTREPRENEURIAL PROCESS
• “entrepreneurial discipline”
• Which involves several stages from the
awareness of an opportunity to the realization of
a business idea.
 STAGES OF ENTREPRENEURIAL
PROCESS
• Discovery
• Development
• Organizing Resources
• Implementation
• Reaping the Returns
 DISCOVERY
• Refers to the recognition of a business idea
or the detection of opportunities that
could make money for the entrepreneur.
DEVELOPMENT OF CONCEPT
• Gives more details on how the general
business idea can be realized.
• It suggest the PREPARATION of a
BUSINESS PLAN.
 ORGANIZING RESOURCES
• Describes the process of identifying,
sourcing, and financing human, nonhuman,
and other resources needed for the
conduct of business.
 IMPLEMENTATION
• Is the process of carrying out the business
plan.
 REAPING THE RETURNS
• Pertains to strategies related to the
expansion of the business firm.
 CHARACTERISTICS OF AN
ENTREPRENEUR
Two Criteria
• Entrepreneurial Traits and Creation of
Value-added
• Entrepreneurial Traits and Entrepreneurial
Intentions
 ENTREPRENEURIAL TRAITS AND
CREATION OF VALUE-ADDED
• Level of Education
• Employment Status
• Entrepreneur’s Wealth
• Risk Appetite
 ENTREPRENEURIAL TRAITS AND
CREATION OF VALUE-ADDED
• Level of Education
- Studies have shown that entrepreneurs need
some formal education to be able to seize the
opportunities presented by inventions, innovations,
and other technological development.
 ENTREPRENEURIAL TRAITS AND
CREATION OF VALUE-ADDED
• Employment Status
- Individuals who become entrepreneurs in
developed countries are usually former employees
of companies in the formal sector.
 ENTREPRENEURIAL TRAITS AND
CREATION OF VALUE-ADDED
• Entrepreneur’s Wealth
- Wealth of the entrepreneur is also an important
factor.
 ENTREPRENEURIAL TRAITS AND
CREATION OF VALUE-ADDED
• Risk Appetite
- Risks are associated with uncertainties in
business operation.
 ENTREPRENEURIAL TRAITS AND
ENTREPRENEURIAL INTENTIONS
• Entrepreneurial Intentions
- Planned actions formulated in the mind of
individuals w/c are geared toward the objective
of establishing a business venture from potential
business opportunities.
ENTREPRENEURIAL TRAITS AND
ENTREPRENEURIAL INTENTIONS

“ HOW ARE THESE INTENTIONS

FORMULATED?”
 FACTORS THAT INFLUENCE
ENTREPRENEURIAL INTENTIONS
• INTERNAL FACTORS
• EXTERNAL FACTORS
 FACTORS THAT INFLUENCE
ENTREPRENEURIAL INTENTIONS
• INTERNAL FACTORS
- Include mainly the qualities of individuals such as
demographics, personal traits, psychological
characteristics, individual skills, prior knowledge
and social ties.
 FACTORS THAT INFLUENCE ENTREPRENEURIAL
INTENTIONS (INTERNAL FACTORS)

• Demographic
- Refer to gender, marital status, age, and
employment status of individuals.
 FACTORS THAT INFLUENCE ENTREPRENEURIAL
INTENTIONS (INTERNAL FACTORS)

• Personal Traits
- self-confidence, determination, and
enthusiasm, and other positive human
qualities.
 FACTORS THAT INFLUENCE ENTREPRENEURIAL
INTENTIONS (INTERNAL FACTORS)

• Psychological Traits
- Need for achievement, risk appetite,
acceptance for vagueness, self- efficacy, and
goal setting.
 FACTORS THAT INFLUENCE ENTREPRENEURIAL
INTENTIONS (INTERNAL FACTORS)

• Individual skills
• Prior Knowledge
• Social ties
 FACTORS THAT INFLUENCE
ENTREPRENEURIAL INTENTIONS

• External Factors
1. Environmental Support
2. Environmental Influence
 FACTORS THAT INFLUENCE ENTREPRENEURIAL
INTENTIONS (EXTERNAL FACTORS)

• Environmental Support
- Financial Institutions
- Training institutions in setting up
businesses.
 FACTORS THAT INFLUENCE ENTREPRENEURIAL
INTENTIONS (EXTERNAL FACTORS)

• Environmental Influence
- Regulatory Structure (Government Regulations
- Patents
- Protection of Property Rights
- Competitive Environment
 SEATWORK
• Identify the two criteria of personality
characteristics that affects the entrepreneurial
performance. Write ETCV (Entrepreneurial
Traits and Creation of Value-added) and ETEI
(Entrepreneurial Traits and Entrepreneurial
Intentions)
 ETCV / ETEI
1. Entrepreneurs Wealth 7. Employment Status
2. Demographics 8. Personal Traits
3. Level of Education 9. Risk Appetite
4. Psychological Traits 10. Patents/Protection of
5. Financial Institution Property Rights
6. Regulatory Structure
 ASSIGNMENT
• Surf the internet and find examples of Filipino
entrepreneurs whose lives have been featured in a
newspaper, a magazine, or a web blog. Based on
published data, reconstruct the process by which they
set up their businesses? Use the entrepreneurial
process as guide.
Note: Individual presentation next meeting.
THANK YOU!
MR. RICHARD MIGUEL BUTIAL, LPT