DEFINITION, ORIGIN AND

NATURE OF
ENTREPRENEURSHIP
MODULE 1
 OVERVIEW
• The concept of Entrepreneurship has gone through an
evolution or process that commenced with providing service in a
feudalistic society. Module I is focused on the definitions of
entrepreneurship and entrepreneur, the origin, and the nature of
entrepreneurship as an approach and a dynamic process.

• Entrepreneurship is a culture that is not fad, but a very

promising career option that can prepare a person for a
prosperous future and a nation that is progressive and
prosperous as well.
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 LEARNING OBJECTIVES
At the end of this module, the students should be
able to:
• Define entrepreneurship and entrepreneur
• Discuss the origin of the word entrepreneurship
• Explain the concepts of entrepreneurial process
and approach
• Apply opportunity seeking and needs assessment
in their communities
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 DEFINITION OF
ENTREPRENEURSHIP

Entrepreneurship is a process of
creating something different with value by
devoting necessary time and effort,
assuming the accompanying financial,
psychic, and social risks and receiving the
resulting rewards of monetary and personal
satisfaction.
MODULE 1
 WHO IS AN
ENTREPRENEUR?
WHO IS AN ENTREPRENEUR?

It cannot be denied that there are still some

who are confused with the difference between
entrepreneur and entrepreneurship. To further
differentiate the two, different definitions of
entrepreneur from various authors are summarized
below, as follows:

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WHO IS AN ENTREPRENEUR?

Karl Vesper describes an entrepreneur in a broader perspective

by postulating that entrepreneurship is now a concern of
various professions:

ECONOMIST: An entrepreneur is one who brings

resources, labors, materials and other assets into combinations
that make their value greater than before and also, one who
introduces changes, innovation and a new order.

MODULE 1
WHO IS AN ENTREPRENEUR?

PSYCHOLOGIST: Entrepreneur could refer to such a

person as typically driven by certain forces: need to obtain or
attain something, to experiment, to accomplish or perhaps to
escape from authority of others.

BUSINESSMAN: An entrepreneur appears as a threat,

an aggressive competitor. The entrepreneur maybe an ally, a
source of supply, a customer, or someone good to invest in.

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WHO IS AN ENTREPRENEUR?

CAPITALIST PHILOSOPHER: Entrepreneur is one who

creates wealth for others as well, who finds better ways to
utilize resources, and reduce waste, and who produces jobs
others are glad to get.

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WHO IS AN ENTREPRENEUR?

ROBERT NELSON, a professor from the University of

Illinois, defines entrepreneur as a person who is able to look at
the environment, identify opportunities to improve the
environment, marshal resources and implement action to
maximize those opportunities.
DR. N. A. ORCULLO, JR. said that an entrepreneur is
someone who perceives an opportunity and creates an
organization to pursue it.

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ORIGIN OF
ENTREPRENEURSHIP

• Its origin remains to be unclear, but there are indications that

the term entrepreneur or entrepreneurship originated from
the French verb “entreprendre” which means “to undertake”.
• There are also other terms an entrepreneur has, that it can
also be translated to mean, “between-taker” or “go-between”.
Cited as typical example reflective of the term entrepreneur
as “go-between” or “between-taker” is Marco Polo who attempted
to establish trade routes to the Far East during his time.

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ORIGIN OF
ENTREPRENEURSHIP

• Shefsky (1993), in his book Entrepreneurs Are Made Not

Born, defined ENTREPRENEUR by dissecting the word
into three parts: entre means “to enter”, pre means
“before”, and neur means “nerve center”. It leads to a
definition of the word as SOMEONE WHO ENTERS A
BUSINESS – ANY BUSINESS – IN TIME TO FORM OR
CHANGE SUBSTANTIALLY THAT BUSINESS NERVE CENTER.

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MODULE 1
 ENTREPRENEURSHIP AS AN
APPROACH
• As an approach, the entrepreneur considers the business
opportunity as a chance to solve the problem rather than solving
the problem itself. This further gives an emphasis to the
relationship between entrepreneurship and economics.
• The problem refers to the so-called “The Economic Problem”
which is scarcity. To deal with this economic problem, we must use
efficiently and effectively the limited resources to satisfy human
needs and wants. In this case, the job of entrepreneurs is
becoming more significant.
• They should be able to scan the environment, identify
opportunities, generate ideas, create something different, and
venture into economic activities that are beneficial to the socio-
economic development of the country.
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 ENTREPRENEURSHIP AS A
PROCESS
On the other hand, entrepreneurial process is supported by two factors according to
Albert Shapero:

INITIATIVE ORGANIZATION

• An individual or group • Resources are brought

takes the initiative.This together in organization to
may refer to the accomplish some objective
entrepreneurial attributes (or the resources in some
an individual need to work organizations are
for the available resources. recognized).
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 SOCIO-ECONOMIC BENEFITS
FROM ENTREPRENEURSHIP

Entrepreneurs have proven over and over again to

be the pioneers who convert ideas into products and
dreams into reality and eventually help the economy.
There are eight (8) socio-economic benefits from
entrepreneurship, as follows:

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 SOCIO-ECONOMIC BENEFITS
FROM ENTREPRENEURSHIP

• Promotes self-help and provides employment.

Through entrepreneurship, the spirit and culture of self-help, self-reliance, and self-sufficiency among
citizens of nations is addressed.
• Mobilizes capital.
Venturing into business means releasing or mobilizing capital that would fire up the economy.
• Provides taxes to the economy.
The entry of entrepreneur into the world of business means tax sources for the government.
• Empower individuals.
The real indicator of economic well-being among citizens and the masses are in some ways gauged
by the amount of financial resources that every citizen accumulates.

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 SOCIO-ECONOMIC BENEFITS
FROM ENTREPRENEURSHIP
• Enhance national identity and pride.
It is not only the entrepreneur that directly benefits from his/her entrepreneurial endeavors, but the
country also takes pride in the honor that goes with it.
• Enhance competitive consciousness.
Innovation, being the essence of entrepreneurship is a catalyst to a consciousness and culture of
competition, which, in the long term breeds quality and global competitiveness.
• Improves quality of life.
The entrepreneur’s penchant for innovation and development of new product, as well as creation of
new markets, redounds to the betterment of the products and services.
• Enhances equitable distribution of income and wealth.
With the entrepreneurs succeeding in their respective endeavors, chances are that equitable
distribution of income and wealth can be likewise expected.
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 REFERENCES
BOOKS
• Asor, W. 2009. Entrepreneurship in the Philippine
Setting. Quezon City: Rex Bookstore

• Kuratko, D. 2011. Entrepreneurship: An Introduction.

Pasig City: Cengage Learning Asia Pte Ltd.