Tem C1 PDF

CHAPTER 1: THE PRACTICE OF ENTREPRENEURSHIP
ENTREPRENEURSHIP • Entrepreneurship as a solution to poverty.

- Job Formation
• An important life skill that is beyond just starting - Wealth Creation
a venture. - Social Empowerment
• Readies a person to manage the vague and • Philippine Government
undefined future (Business Environment). - sees entrepreneurship as the sole means
• Composed of collective mindsets and skillsets to address the poverty problem.
that can empower an individual to create and • The 1987 Philippine Constitution
act on opportunities of any kind for himself. - Identifies entrepreneurship as an
• An innovative procedure that has a wide range instrument of economic growth.
of activities offering new things to society as - Article 12 Section 1 – Emphasized the
well as civilization. role of private enterprises in supporting fair
• Nonlinear, unpredictable, unstructured, and distribution of income and wealth,
complex. satisfying production of goods and
ENTREPRENEURSHIP VIEWS services, and escalating productivity.
• Philippine Development Plan (PDP)
• Predictive Approach (Older View) - Includes the government’s objective of
- Considers entrepreneurship as a linear economic development and job formation
process where there are steps to do and which strengthens the thrust on
the results are usually predictable. entrepreneurship by way of trade and
- Supports the Traditional investment.
Entrepreneurship. - Strengthening the Philippines’
- Identify the goals and search for available competitiveness and contribute to job
resources. formation.
- Work best during times of ambiguity and • Philippine Chamber of Commerce and
when there is enough information where to Industry
base decisions. - Agency under the Office of the President is
- Most well-known and established an advocate of entrepreneurship.
companies make use of this approach. - Philippine Center for Entrepreneurship
• Creation Approach (Recent View) (PCE)- created “Go Negosyo
- Sees entrepreneurship as a mindset and a Communities” everywhere.
method that needs practice and used only
when the future is unpredictable and not THE SKILLS IMPORTANT IN ENTREPRENEURSHIP
certain. (Putting An Idea Into Action- Is the most important
- Define their goals based on the resources thing to live a more entrepreneurial and influencing life.)
available at hand.
- Do not delay actions. 1. The Skill of Play
- Small businesses always begin with this - Allows imagination to explore, exposes his
approach. mind to a treasure of opportunities and
- Habi Footwear- started as a thesis project potentials and is very innovative.
and grew into a real business later. - Piaget- Well-known child psychologist who
✓ Ateneo de Manila University had been commending the benefits of play
✓ Chiong, Paola Savillo, and Bernadee for decades.
Uy – visited a small community in 2. The Skill if Experimentation
Quezon City. - Calls for entrepreneurs to act so as to
learn.
THE START OF ENTREPRENEURSHIP - Acting to Learn- Means attempting to do
IN THE PHILIPPINES something, learning from such attempts
and structuring said learning when the next
• Philippines is always challenged by high
thing similar happens.
poverty rate compared against countries in
- Done by asking questions, confirming
Asia.
assumptions and noting every detail in
- Growing average of 6% Economic
considerations.
Growth.
3. The Skill of Empathy
- Poverty Prevalence is beyond 20% of the
- Means being sympathetic with the feeling,
total population.
situation, purposes, opinions, and wants of
other people.
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-Empathy- Putting ones’ shoes in the 2. Entrepreneurship Do Not Have Exceptional
shoes of others like relating to the feelings Personality Qualities
of others when placed in the same - There is really no evidence to prove that
situation. entrepreneurs possess special personality
✓ Vital to an entrepreneur in order to qualities above others.
completely understand the reality of - 4 Recognized Qualities of Entrepreneur:
becoming an entrepreneur. ✓ Achiever
✓ Needed when evaluating oneself in ✓ Influencer
terms of the ability to be an ✓ Risk-Taker
entrepreneur. ✓ Open-minded
4. The Skill of Creativity 3. Entrepreneurship Can Be Taught Yet Entails
- Means being open-minded and letting Practice
loose ones’ ability to create, discover - Most schools teach entrepreneurship as a
opportunities and resolve problems. linear process (manufacturing business).
5. The Skill of Reflection - Linear Process- Consist of identification of
- Organizes all the four skills. Most vital skill opportunity, knowing resources needed,
of all skills. Gives new perspectives and obtaining resources, planning,
allow for more assessment of the results implementing, and harvesting once the
and forming of conclusion. business has been in place.
- Ways To Do Reflection: ✓ Teach entrepreneurship as
a. Narrative- what happened in terms of something predictable.
what took place, what was said, and 4. Entrepreneurship Are Not So Much
the people involved. Risk-Taker
b. Emotional- Centers on the feelings - There is really no valid proof that
and the management of these feelings entrepreneurs are gamblers because they
during a certain situation. take more risks compared to anyone.
c. Perceptive- Focuses on ones’ insights - Entrepreneurs are really risk-takers but
and feedbacks as well as the others in they normally would make calculations first
addition to how various views, needs, prior to taking the next step.
or inclinations affected the experience. 5. Entrepreneurs Work In Partnership More
d. Analytical- Rationalizing about the Than They Compete
skills and understanding obtained from - Community- Vital partner of most
an experience and relating what has entrepreneurs.
been learned to anything heard about - Working in partnership with prospective
before. investors and with family and friends.
e. Evaluative- Concerns on what went - Partnership- Brings about more efficiency,
well as well as what went bad or additional fresh ideas, and produce
whether the experience was useful or ingenuity and innovation.
not. 6. Entrepreneurs Are More On Doing Than
f. Critical- Considering the role played in Planning
a situation, the approach applied, what - Not all successful companies had wrote a
could still be done, the lessons from formal business plan. Instead, they had
the experience, queries in mind and acted to become successful.
the anticipation of the possible result. ✓ They went out of the streets
✓ Talked to people
THE TRUTHS ABOUT ENTREPRENEURSHIP ✓ Relate with customers
1. Entrepreneurship is Not Solely for Startups ✓ Buzz about their offerings
- Startup- A new company that is just ✓ Form a solid networking
starting to progress and looking for a - Investors are more fascinated with the
feasible business model. ability of an entrepreneur to deal with a
✓ Typically, small and primarily funded series of difficult situations, able to sole
and operated by a few founders or one problems and take positive feedbacks.
person. 7. Entrepreneurship is Truly a Life Skill
- A business does not remain to be a startup, - A skill that is useful in every human’s life.
because it can always develop and - Can offer the methodological way of
progress into something bigger. thinking, opportunity identification, specific
way of problem-solving, adapting to new
situations and governing ones’ goals and
ambitions.
- Life Skills: -The Franchisee just needs to “turnkey”
a. Resilience- Able to deal with setbacks the operation to start the business.
through bouncing back and refocus - Royalties- A share of the proceeds of the
after failure. business paid by the franchisee to the
b. Agility- Responding speedily and franchisor.
conclusively to adjust to dynamic - Example: 7/11, Ace Hardware, Pizza Hut,
changing environment and situations. Jollibee, McDonalds, etc.
c. Negotiating- Setting boundaries, 4. Buying a Small Business
ensuring good relationship, and - The entrepreneur buys out the existing
understanding that good rapport is owner and takes the management and
necessary. operations of the small business.
d. Problem Solving- Concerns creating - Involves more upfront cost and also
solutions from minor technical present less risk than starting from zero.
difficulties to major financial - Advantages of Buying Small Business:
headaches. ✓ Able to take over an operation that has
e. Relationship Building- Involves the already making cash flow and profits.
give and take relationship of the ✓ Has an established customer base,
entrepreneur with a supplier, investor and reputation.
or even his employees. ✓ The employees are familiar with all
f. Mindfulness- Ability to disconnect aspects of the business.
from the pressure and focus on being 5. Social Entrepreneurship
in the moment. (Breathing and - Means pursuing innovative applications
Meditation manage ones’ thoughts that have the likelihood of solving
and feelings.) community-based and social problems.
✓ Water Shortages
TYPES OF ENTREPRENEURSHIP ✓ Education
1. Intrapreneurship ✓ Poverty
- Refers to encouraging people to discover ✓ Global Warming
high-risk, high-reward concepts with - Produce environmentally friendly products,
support of a big corporate organization. serve an underserved community, and
- Google- Supports its employees to provide focus on philanthropic activities.
the 20% of their time for innovative - Bayani Brew- Iced tea products that use
projects. indigenous ingredients such as
✓ Paul Buchheit- creator of the original lemongrass, pandan, and sweet potato
template for Gmail (Search Functions). tops.
✓ Search Functions- First of its kind ✓ Supplied by subsidence farmers to
among Email service providers help them in their livelihood.
because it has improved storage 6. Family Business
capacity. - Owned and managed by members of the
✓ Gmail- Most popular used platforms family that is usually handed down from
on the internet. generation to generation.
2. Entrepreneurs Inside - Prevalent worldwide
- Almost similar with intrapreneurship and - Examples: ShoeMart, Metrobank, The
must be supported by management. Aboitiz Group, and D.M. Consunji, Inc.
- Works with any type of organizations like - Harvard Business School:
government agencies, non-profit ✓ Family firms account for two-thirds of
organizations, religious entities, self- all businesses around the world.
employed and even cooperatives (big or - Philippines
small). ✓ 80% of the businesses are family
- Puregold- Popular trader of consumer owned and controlled.
products on a wholesale or retail basis. - Fu Pu Kuo San Tai- Wealth does not pass
✓ Popularized the “Palengke Day”- three generations.
Where fruits and vegetables are sold ✓ First Generation- Works hard to
on everyday prices for budget construct the business.
conscious customers. ✓ Second Generation- Becomes the
3. Buying a Franchise heir to it.
- Franchise- A type of license brought by an ✓ Third Generation- Wastes it and puts
entrepreneur as the franchisee from an an end to the business.
existing branded business (franchisor).
7. Serial Entrepreneurs 3. Crazy Quilt- Entering new partnership
- Constantly crops up with fresh ideas and that can bring in new opportunities and
starts new businesses. reduce uncertainty.
- A Habitual one who takes the challenge of ➢ Jollibee Foods Corporation
repeatedly initiating on putting up a o The largest fast-food chain in
business. the Philippines.
- Oprah Winfrey- A famous American o Partnered with Globe
philanthropist, media leader, and Business- the enterprise
entrepreneur, best known for her award and information and
winning talk show “The Oprah Winfrey communications technology
Show”. arm of Globe Telecom to
✓ 1986- She created the Harpo centralize its express
Productions, Inc. delivery service to one
✓ Oprah Winfrey Leadership Academy convenient number: #87000.
Foundation 4. Lemonade- Entrepreneurs always
✓ 1990’s- She was the wealthiest expect these surprises, must welcome
woman in show business contingencies, and see opportunities
✓ 2011- Launched the Oprah Winfrey arising during unforeseen
Network (OWN). consequences.
✓ 2018- Net worth of $ 2.8 Billion ➢ Dr. Cecilio Pedro
o Aluminum Containers, Inc.
ENTREPRENEURSHIP AS A METHOD – The main supplier of
• Method- A systematic way of doing a task. aluminum collapsible
toothpaste tubes to Colgate-
• Process- A sequence of steps to take to attain
something. Palmolive Co. and the
✓ Entrepreneurship As A Process- Philippine Refining
focuses on planning and making Company (Unilever Group).
forecasts. o 1985- These companies
started to use plastic
• The Entrepreneurial Method
laminated tubes and Mr.
- Concept by Professor Saras Sarasvathi
Pedro was left a stockpile of
- Describes a logical thinking that is usually
his products with no use for
used by some of the most successful
them.
entrepreneurs to form their venture.
o Lamoiyan Corporation- The
- Today is said much more of effectuation
first Filipino company to
theory.
enter the toothpaste industry.
• Effectuation- The idea in entrepreneurship that
- 20 Employees
the future is unpredictable yet controllable.
- Hapee and Kutitap
- Create a future instead of predicting it.
5. Pilot in The Plane- Entrepreneurs
- Five Principles of Effectuation:
believe that the future is really
1. Bird in Hand- Creating solutions using
something that needs to be controlled
the resources available at the disposal
and not try to predict and the focus
of entrepreneurs instead of having
should be those on entrepreneurial
goals in mind.
activities that are within the bounds of
➢ Socorro C. Ramos
one’s control.
o National Bookstore (1942)
➢ Corazon D. Ong
o Php 211 (2015=Php 15,047)
o CDO Foods
o Escolta Bridge in Santa
o Using her profession as a
Cruz, Manila
dietician who understood
2. Affordable Loss- Only investing much
the fondness of Filipinos in
that an entrepreneur is willing and can
processed foods.
afford to lose.
o Nutritious Foods which can
➢ Mariano Que
be cooked easily.
o Mercury Drug- first worked
in a drugstore before the
war.
o Invested Php 100 in
Sulfathiazole Tablets.
o Sold his products using
Wooden Pushcarts.
COMPONENTS OF ENTREPRENEURSHIP METHOD MANAGERIAL AND ENTREPRENEURIAL THINKING
• Identify Desired Impact • Managerial Thinking

- An entrepreneur must combine his - Best to apply during times of uncertainties.
curiosity, drive, and motivation to achieve - Uses information and data as basis for
something beyond the bounds of himself. decision making.
• Begins with Means at Hand - Used primarily by big and well-established
- The current resources at hand is an companies.
important component that need to be ready • Entrepreneurial Thinking
for use to accomplish immediate action. - Ability to identify opportunities in the
- Answers Three Essential Questions: marketplace and discover the most fitting
✓ Who Am I? ways and time to take advantage of them.
✓ What Do I Know? - Ability to discover and pursue the problem-
✓ Whom Do I Know? solution fits.
• Describe the Idea Today - Mindset that opens ones’ eyes to fresh
- The desired impact and the means at hand learning opportunities and helps
should be combined to fully describe the entrepreneurs grow in their roles.
idea today.
Managerial Thinking Entrepreneurial
• Estimate Affordable Loss
Thinking
- Entrepreneurs think about the things they
Manage and mitigate Evaluate and embrace
are willing to lose. risk risk
✓ Money Safeguard inventions Exchange ideas and
✓ Reputation and insights share learnings
✓ Time Avoid failing Fall fast and try again
✓ Opportunity Cost Work within the Think in terms of
- Risk is apparently relative. confines of the current possibilities
- Risk is difficult to calculate and be used as environment
an effective criterion for decision making. Increase the bottom Create value and
• Reflect and Be Honest line make difference
- The entrepreneur must think of the next
step to do to sustain his venture.
• Take Small Action ENTREPRENEURSHIP REQUIRES
- The first action is just a small step to get DELIBERATE PRACTICE
going. • Entrepreneurship is both mindset and
- It must not be extreme and should be practice.
properly calculated. • Practice is usually linked with repetition and of
- The affordable loss also must be estimated course experience.
so that the entrepreneur can control his
• Malcolm Gladwell
risk.
✓ In Outliners: The Story of Success
• Network and Enjoin Others in The Journey ✓ Claims that successful performers spent
- The practice of entrepreneurship is about 10,000 hours in practicing their craft.
collaboration and co-creation to increase ✓ It commands hard work, together with
the entrepreneur’s resources, expand the unique opportunities to reach this big
possibilities available as well as confirm his number.
idea.
• Bill Gates
• Build and Learn from What Has Been ✓ Microsoft (Co-Founder)
Learned ✓ Started his access to a computer laboratory
- Evaluating performance is improving ones’ since he was in Grade 8th.
idea. ✓ Made him to master in programming even
- Nothing is right or wrong, just making things prior to computers becoming ordinary
better. things.
- Embrace failures because of it also comes
• Repetition of a certain practice create moderate
with learnings.
outcomes.
• Any basic abilities that have been deliberately
practiced turn to be spontaneous already.
• Deliberate Practice becomes a discipline,
because it has been mastered and needs to be
done every day.
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CHAPTER 1: THE PRACTICE OF ENTREPRENEURSHIP

ENTREPRENEURSHIP • Entrepreneurship as a solution to poverty.

• Identify Desired Impact • Managerial Thinking

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