HEADQUARTERS

CIVIC WELFARE TRAINING SERVICE COMPONENT

SOUTHERN LUZON STATE UNIVERSITY
Lucban, Quezon

ENTREPRENEURSHIP

CONCEPT OF ENTREPRENEURSHIP
• Entrepreneurship is the ability and readiness to develop, organize and
run a business enterprise, along with any of its uncertainties in order to
make a profit. The most prominent example of entrepreneurship is the
starting of new business.
• In economics, entrepreneurship is connected with land, labor and
natural resources and capital can generate a profit. The entrepreneurial
vision is defined by discovery and risk-taking and is an indispensable
part of nation’s capacity to succeed in an ever-changing and more
competitive global marketplace.

ENTREPRENEURSHIP
• It is a philosophy or process through which an entrepreneur seeks
innovation and employment.

Entrepreneur Entrepreneurship Enterprise

Person ---→ Process of Philosophy ---→ Object
Entre – enter Pre – before Neur – Nerve Centre

Entrepreneurship can be described as a creative and innovative response to

the environment.

ENTREPRENEUR
• Is defined as someone who has the ability and desire to establish,
administer and succeed in a startup venture along with the risk entitled
to it, to make profits. The best example of entrepreneurship is the
starting of new business venture. The entrepreneurs are often known
as a source of new ideas or innovators, and bring new ideas or
innovators, and bring new ideas in the market by replacing old with a
new invention.
• It can be classified into small or home business to multinational
companies. In economics, the profits that an entrepreneur makes is
with a combination of land, natural resources, labor and capital.
• In a nutshell, anyone who has the will and determination to start a new
company and deals with all the risks that go with it can become
entrepreneur.

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 HEADQUARTERS
CIVIC WELFARE TRAINING SERVICE COMPONENT
SOUTHERN LUZON STATE UNIVERSITY
Lucban, Quezon

ENTREPRENEURSHIP IN THE 21ST CENTURY

• Is the process of creating something different with value by devoting
the necessary time and effort, assuming the accompanying financial,
psychic, social risks and receiving the resulting rewards of monetary
and personal satisfaction and independence.

NATURE AND DEVELOPMENT OF ENTREPRENEURSHIP

• Stems from French verb “Entreprendre” means in between-taker or go
between.

NEW DEFINITION INVOLVES FOUR ASPECTS:

1. The creation process
2. The devotion of time and efforts
3. The assumption of risks
4. Rewards of independence, satisfaction and money

ADVANTAGES OF ENTREPRENEURSHIP

TO AN INDIVIDUAL
❖ Self-Employment
❖ Employment for near and dear
❖ Prolonged career for next generations
❖ Freedom to use own ideas – Innovation and creativy
❖ Unlimited income/ higher retained income
❖ Independence
❖ Satisfaction

TO THE NATION
❖ Provides larger employment
❖ Results in wider distribution of wealth
❖ Mobilizes local resources, skills and savings
❖ Accelerates the pace of economic development
❖ Stimulates innovation and efficiency

FACTORS FAVORING ENTREPRENEURSHIP

• Growth of education – science, technology & management
• Developed infrastructure facilities
• Financial assistance
• Training facilities
• Protective and promotional policies
• Globalization

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 HEADQUARTERS
CIVIC WELFARE TRAINING SERVICE COMPONENT
SOUTHERN LUZON STATE UNIVERSITY
Lucban, Quezon

WHAT MAKES A SUCCESSFUL ENTREPRENEUR?

• The urge for achievement
• Determination to win
• Win-Win Personality
• Willingness to take moderate risks
• Ability to identify and explore opportunities
• Analytical ability to take strategic decisions
• Perseverance
• Flexibility
• Capacity to plan and organized
• Preparedness to undergo physical and emotional stress
• Positive self-concept
• Future orientation: Vision
• Ethics and Values: Mission

WHO CAN BE ENTREPRENEUR?

• Who can take moderate risks?
• Who has ability to work hard?
• Who can capitalize on opportunities?
• Who has some financial strength?
• Who feels the need for achievement?
• Who has desire for responsibility?
• Who has perception of probability of success?
• Who gets stimulation by feedback?
• Who possess skills in organizing
• Who can be male or female
• Who may not have previous experience?

THREE STAGES THAT WILL ALLOW YOU TO CREATE AND

COMMERCIALIZE YOUR PRODUCT AND MAKE YOU BUSINESS GROW
AND SUCCEED

1. Creativity - is the act of channeling imagination into something

concrete. It is the very first stage of design, where ideas start to
actually take form, and a plan can be developed.
Examples of Creativity:
In the case of Uber, creativity was necessary in producing the concept of ride
sharing and of making driving jobs accessible to any individual. Another
example can be the Google Glass, innovative (monetary return over
investment made by the company).
2. Invention - is the physical creation of a new concept and idea. Also,
from Nesta’s innovation policy took it, it is defined as The creation of an idea
to do or make something without verification that it works, or is commercially
valuable. Invention cannot occur without creativity, but just creativity is not
enough to properly develop an idea.
Examples of Invention:
Product designs, business models, or working prototypes.

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 HEADQUARTERS
CIVIC WELFARE TRAINING SERVICE COMPONENT
SOUTHERN LUZON STATE UNIVERSITY
Lucban, Quezon

Uber channeled invention in creating a solid and working business model,

based upon the ideas they had formed in the creation stage.
3. Innovation - ties everything together in business. According to British
Standards, innovation is the successful exploitation of new ideas. It involves
turning an invention into a commercial success and encouraging its
widespread use. This is the stage where bold ideas, once properly developed,
are brought to the public eye. This is what Uber has achieved, now that its
product is in use all over the world and benefits people everywhere.
Examples of Innovation
Successful products and services like care of Amazon scout, impossible food,
google’s self-driving taxis and Etc.
Successful process innovations like Amazon predictive orders, or additive
manufacturing process.

CHARACTERISTICS OF ENTREPRENEUR
Not all entrepreneurs are successful; There are definite characteristics that
make entrepreneurship successful. A few of them are mentioned below:

1. Ability to take a risk – starting any new venture involves a

considerable amount of failure risk. Therefore, an entrepreneur needs
to be courageous and able to evaluate and take risks, which is an
essential part of being an entrepreneur.
2. Innovation – it should be highly innovative to generate new ideas, start
a company and earn profits out of it. Change can be the launching of a
product that is new to the market or a process that does the same thing
but in a more efficient and economical way.
3. Visionary and leadership quality – to be successful, the entrepreneur
should have a clear vision of his new venture. However to turn the idea
into reality, a lot of resources and employees are required. Here,
leadership quality is a paramount because leaders impart and guide
their employees towards the right path of success.
4. Open-Minded – in a business, every circumstance can be an
opportunity and used for the benefit of a company. For example, Paytm
recognized the gravity of demonetization and acknowledge the need
for online transactions would be more, so it utilized the situation and
expanded massively during this time.
5. Flexible – an entrepreneur should be flexible and open to change
according to the situation. To be on top, a business person should be
equipped to embrace change in a product and service, as and when
needed.
6. Know your product – a company owner should know the product
offerings and also be aware of the latest trend in the market. It is
essential to know if the available product or service meets the
demands of the current market, whether it is time to tweak it a little.
Being able to be accountable and then alter as needed is a vital part of
entrepreneurship.

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 HEADQUARTERS
CIVIC WELFARE TRAINING SERVICE COMPONENT
SOUTHERN LUZON STATE UNIVERSITY
Lucban, Quezon

FOUR TYPES OF ENTREPRENEURSHIP

1. Small Business Entrepreneurship

• This businesses are hairdresser, grocery store, travel agent,
consultant, carpenter, plumber, electrician, etc. These people run or
own their own business and hire family members or local employee.
For them, the profit would be able to feed their family and not making
100 million business or taking over an industry. They fund their
business by taking small business loans or loans from friends and
family.
2. Scalable Startup Entrepreneurship
• This start-up entrepreneur starts a business knowing that their vision
can change the world. They attract investors who think and encourage
people who think out of the box. The research focuses on scalable
business and experimental models, so, they hire the best and the
brightest employees. They require more venture capital to fuel and
back their project or business.

3. Large Company Entrepreneurship

• This huge companies have defined life-cycle. Most of these companies
grow and sustain by offering new and innovative products that revolve
around their main products. The change in technology, costumer
preferences, new competition, etc., build pressure for the large
companies to create an innovative product and sell it to the new set of
costumers to the new market. To cope with the rapid technological
changes, the existing organizations either buy innovation enterprises or
attempt to construct the product internally.

4. Social Entrepreneurship
• This type of entrepreneurship focuses on producing product and
services that resolve social needs and problems. Their only motto and
goal is to work for society and not make any profits.

IMPORTANCE OF ENTREPRENEURSHIP

• Creation of employment
- Entrepreneurship generates employment. It provides an entry-level job,
required for gaining experience and training for unskilled workers.
• Innovation
- It is the hub of innovation that provides new product ventures, market,
technology and quality of goods, etc., and increase the standard of
living of people.
• Impact on Society and Community Development
- A society becomes greater if the employment base is large and
diversified. It brings about changes in the society and promotes
facilities like higher expenditure on education, better sanitation, fewer

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 HEADQUARTERS
CIVIC WELFARE TRAINING SERVICE COMPONENT
SOUTHERN LUZON STATE UNIVERSITY
Lucban, Quezon

slums, a higher level of homeownership. Therefore, entrepreneurship

assists the organization towards a more stable and high quality of
community life.
• Increase standard of living
- Entrepreneurship helps to improve the standard of living of a person by
increasing the income. The standard of living means, increase in the
consumption of various goods and services by a household for a
particular period.
• Supports research and development
- New products and services need to be researched and tested before
launching in the market. Therefore, an entrepreneur also dispenses
finance for research and development with research institutions and
universities. This promotes research, general construction, and
development in the economy.

Entrepreneurs Spur Economic Growth

New products and services created by entrepreneurs can produce a
cascading effect, where it stimulates related businesses or sectors that need
to support the new venture, furthering economic development.
For example, a few information technology companies made up the IT
industry in India during the 1990’s. The industry quickly expanded and many
other sectors benefited from it. Businesses in associated industries such as
call center operations, network maintenance companies, and hardware
providers flourished.
Education and training institutes nurtured a new class of IT workers
who were offered better, high paying jobs. Infrastructure development
organizations and even real estate companies capitalized on this growth as
workers migrated to cities where employment was growing.
Similarly, future development efforts in underdeveloped countries
require robust logistics support, capital investments and a qualified workforce.
From the highly qualified programmer to the construction worker,
entrepreneurship benefits a large part of the economy.

Entrepreneurs Add to National Income

Entrepreneurial ventures help generate new wealth. Existing
businesses may remain confined to existing markets and may hit the glass
ceiling in terms of income. New and improved products, services or
technology from entrepreneurs enable new markets to be developed and new
wealth to be created.
Additionally, increased employment and higher earnings contribute to
better national income in the form of higher tax revenue and higher
government spending. This revenue can be used by the government to invest
in other, struggling sectors and human capital. Although it may make a new
few existing players redundant, the government can soften the blow by
redirecting surplus wealth to retrain workers.

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 HEADQUARTERS
CIVIC WELFARE TRAINING SERVICE COMPONENT
SOUTHERN LUZON STATE UNIVERSITY
Lucban, Quezon

Entrepreneurs Create Social Change

Through offering unique goods and services, entrepreneurs break
away from tradition and reduce dependence on obsolete systems and
technologies. This results in an improved quality of life, improved morale, and
greater economic freedom.
For example, the water supply in a water-scarce region will, at times,
force people to stop working to collect water. This will impact their business,
productivity and income. Imagine an innovative and automatic pump that can
fill people’s water containers automatically. This type of innovation ensures
people are able to focus on their jobs without worrying about a basic necessity
like water. More time to devote to work translates to economic growth.
For a more contemporary example, smart phones and apps have
revolutionized work and play across the globe. Smartphones are not exclusive
to wealthy countries or people. As the growth of the smartphone market
continues, technological entrepreneurship can have a profound, long lasting
impact in the world.
Moreover, the globalization of technology means entrepreneurs in a
lesser-developed countries have access to the same tools as their
counterparts in richer countries. They also have the advantage of a lower cost
of living, so a young entrepreneur from an underdeveloped country can
compete with a multi-million-dollar existing product from a developed country.

Community Development
Entrepreneurs regularly nurture ventures by other like-minded
individuals. They also invest in community projects and provide financial
support to local charities. This enables further development beyond their own
ventures.
Some famous entrepreneurs, such as Bill Gates, have used their
money to finances good causes, from education to public health. The qualities
that make one an entrepreneur are the same qualities that motivate
entrepreneurs to pay it forward.

This are some entrepreneurs who help community development by building

community charities:

Mark Zuckerberg Warren Buffett Bill Gates

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 HEADQUARTERS
CIVIC WELFARE TRAINING SERVICE COMPONENT
SOUTHERN LUZON STATE UNIVERSITY
Lucban, Quezon

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 HEADQUARTERS
CIVIC WELFARE TRAINING SERVICE COMPONENT
SOUTHERN LUZON STATE UNIVERSITY
Lucban, Quezon

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