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INTRODUCTION TO ENTREPRENEURSHIP
The path to entrepreneurship is frequently treacherous, full of surprising turns, obstacles, and dead ends. In
the past, initiating a business was daunting, leading many aspiring entrepreneurs to fail due to their limited
understanding of product creation or inability to purchase raw materials in large quantities for resale
purposes. Despite these challenges, many people start their businesses yearly to realize their dreams and meet
societal needs. Fast-forward to 2023 — there are now thousands or even millions of entrepreneurs worldwide.
Furthermore, there is a simple reason behind this growth in entrepreneurship: the number of opportunities
has exploded and multiplied (McCreanor, 2023).

The Role and Significance of Entrepreneurship in the Society

What is Entrepreneurship?
The word “entrepreneur” came from the French word “entreprendre,” which means "to undertake." During
the Middle Ages, traveling merchants and artisans would visit different kingdoms to offer goods and services
in exchange for payment. This practice was common and played an essential role in the economy of the time.
These merchants and artisans were known as “tradespeople” and often specialized in a particular trade or
craft.

Although the core definition of entrepreneurship has mostly stayed the same over the decade, the
opportunities available to would-be business owners have advanced considerably. The modern definition of
entrepreneurship emphasizes creating, organizing, and operating a new business venture to generate profit
while taking on financial risk. (Beattie, 2022).

Who are the Entrepreneurs?

Entrepreneurs are people who take on the risks and challenges of starting new businesses. They introduce
new goods, services, or concepts to the market to make a profit. The process is often tricky, but entrepreneurs
are willing to take on the risk of failure to achieve their goals. Usually, entrepreneurs think of ideas to captivate
a particular market's interest. It could be an innovative or a re-envisioned service or product (Hayes, 2023).

As highlighted by Jonathan Scott (2022) in his book "The Entrepreneur's Guide to Building a Successful
Business," owning a business offers numerous advantages, such as the ability to work flexible hours, make
independent decisions, be free from obligation to others, and have complete autonomy and power. However,
to be a successful entrepreneur, besides having a good idea and good reasons, it is essential to be curious
about new knowledge and have the desire to explore the unknown. An entrepreneur must understand that a
journey laden with risk, hard work, sacrifices, and setbacks lies ahead.

Importance of Entrepreneurship in the Society

Entrepreneurship is one of the driving forces behind the development and improvement of society.
Entrepreneurs can influence the world and shape the future by producing everything from innovative ideas
and goods to jobs. The following are the five (5) most essential roles of entrepreneurship in society
(Guillebeau, 2023):
• Employment Creation. Entrepreneurs frequently hire employees to help with various tasks and
responsibilities when launching their businesses. As a result, employment increases and
unemployment declines, which can benefit the economy as a whole.

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• Economic Development. Entrepreneurial businesses drive economic growth by expanding

operations, investing in state-of-the-art technology and equipment, and strengthening the
workforce. These factors are all vital in contributing to a country's overall prosperity.
• Technological Advancement. Entrepreneurs often bring new ideas and products that change how
people live. These innovations range from groundbreaking technologies to more efficient and
effective business models. For example, the rise of the tech industry and the Internet has created
countless jobs and transformed how people communicate and access information.
• Market Dynamics. The emergence of new competition may expand the options accessible to
consumers and result in the provision of better goods and services at cheaper costs. As a result,
entrepreneurs with existing businesses are encouraged to enhance their products or service
offerings to remain competitive.
• Socio-Cultural Changes. Entrepreneurship is revolutionizing the way societal challenges are being
approached and solved. Entrepreneurs are taking the initiative to tackle social and cultural
challenges by creating innovative, effective, and sustainable business solutions instead of relying
on the government or big businesses to take action.

Types of Entrepreneurship
Based on the book “Entrepreneurship 101” published by Rebecca David in 2022, there are different types of
entrepreneurship, each with unique characteristics and goals. Listed below are the 10 most familiar types of
entrepreneurship and their specific characteristics.
1. Agripreneurship deals with the production and selling of various agricultural goods and inputs.
The most profitable agribusiness ideas include crop cultivation, production and processing,
aquaculture, animal health and feeds, agro-bio products, biotechnical service, energy-saving, and
ecological agro-production systems.
➢ Edita Aguinaldo Dacuycuy. She is a 73-year-old multi-awarded farmer-scientist and innovator
from the Ilocos Region. Edita established the initial organic dragon fruit farm in Northern
Philippines after being inspired by a rare type of cactus plant that brought therapeutic relief
to her daughter, who has cerebral palsy. Refmad-V Enterprise, her business, has received
awards for Business Excellence and Best Business Company at the 2015 Golden Globe Annual
Awards (Agrea, 2019).

2. Buyer Entrepreneurship involves business individuals who possess substantial capital and utilize
it to acquire established companies or merge with smaller businesses. These acquired companies
or small businesses have an established brand, customer base, and approved revenue-generating
activities.
➢ Tony Tan Caktiong. Tony Tan Caktiong has shown expertise in acquiring successful brands
such as the Greenwich pizza chain, Chowking Chinese Fast food chain, Red Ribbon Bakeshop,
and Mang Inasal grilled chicken. He also owns one of the most famous and world-
renowned original Filipino fast-food chains, Jollibee (Adalia, 2022).

3. Ecopreneurship involves people who want to create a "green" business. It comes with
opportunities to save the Earth while making a good profit.
➢ Jamico Yco Jamlang. He is a licensed Chemical Engineer and the founding director of an online
business—The Bamboo Company. It is a social enterprise that aims to solve global issues by

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promoting and enhancing bamboo production and showcasing a more human side by
embracing a more eco-friendly lifestyle (Roy, 2019).

4. Imitator Entrepreneurship creates a business by copying or adapting an existing business concept

or a successful product or service in the market.
➢ Bin Lin. He is a Chinese entrepreneur, co-founder, and vice president of Xiaomi. The company
copied Apple's iPhone design and used Google's Android system to make an easy-to-use
interface. Critics think this happened because of China's weak laws protecting intellectual
property. China's smartphone company is now the third largest in the world, after Apple and
Samsung from South Korea (Yang, 2021).

5. Intrapreneurship is the act of being an entrepreneur within a company or organization. It involves

taking risks, being innovative, and developing new ideas to improve the company's products or
services.
➢ Paul Buchheit. In 1999, he embarked on his professional journey at Google and proudly joined
the company as its 23rd employee. He had been developing a web-based email that could
provide a search engine within the existing email service. The Founders of Google, Larry Page
and Sergey Brin, supported Buchheit in his Gmail project after realizing the vast potential and
impact it could give the company. Today, Gmail has evolved from a mere experiment to a
crucial component of Google's product portfolio (Fastrecap, 2020).

6. Large Business Entrepreneurship involves taking calculated risks to develop new market offerings
to remain competitive and better respond to changing markets and customer needs.
➢ Ernest Cua. He owns Globe Telecom, a giant telecommunications company in the Philippines
with a long history in the communications industry. Through its partnership with Mynt and
Ant Financial, Globe is leveraging its trusted brand, customer accounts, and network to deliver
financial services such as mobile banking, credit scoring, and online lending (Globe, 2022).

7. Scalable Startup Entrepreneurship involves launching a small-scale enterprise intending to quickly

expand and transform into a highly lucrative company. It is focused on disruptive innovation and
can continue or renew itself indefinitely.
➢ Roland Navarro de Ros. He is the Founder and President of Kumu, the most prominent social
entertainment app in the Philippines, proudly made by Filipinos. Covering as much ground as
possible, Kumu invited creators and personalities of all stripes—chefs, basketball coaches,
spoken word artists—to get on Kumu. In its third year, Kumu has already racked up more than
seven (7) million registered users and two (2) million monthly active users and does about
40,000 live streams daily (Pascual, 2020).

8. Small Business Entrepreneurship involves starting a business on a smaller scale rather than
expanding it into a large corporation or opening multiple branches. It is easy to manage because
it employs minimal employees or is often just a one-person team.
➢ Nericel Bonus. She is a micropreneur who found major success by doing a live selling of thrift
clothes, also known as “ukay-ukay,” during the COVID-19 pandemic. After sharing her rags-to-
riches journey, her story became famous nationwide, especially on social media platforms.

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Examples of small business entrepreneurship are single-location restaurants, one grocery

shop, or a retail shop to sell goods or services. A sari-sari store business is among the most
common small businesses in the Philippines.

9. Social Entrepreneurship focuses on innovating and creating novel solutions to address pressing
social issues. Thus, they play an essential role in having innovative approaches to social issues,
such as poverty, education, and healthcare.
➢ Bryan Benitez McClelland. He is an active Environmental Consultant at GawadKalinga and the
President of Bambike. Bambike manufactures handmade bamboo bicycles. He aims to
alleviate poverty while advocating the importance of going green. Moreover, he partners with
GawadKalinga to provide programs such as scholarships, teacher sponsorship, and skills
training (BusinessMirror, 2018)

10. Technopreneurship solves complex business problems and brings uniqueness and novelty to the
business process by combining entrepreneurial skills and technology.
➢ Diosdado Banatao. He worked for different tech companies and later excelled. He developed
the first 10-Mbit Ethernet CMOS with silicone coupler data-link control and transceiver chip,
the first system logic chipset for IBM’s PC-XT and the PC-AT, and the local bus concept and the
first Windows Graphics accelerator chip for PCs (Hilotin, 2021).

Small, Medium, and Micro-sized Enterprises (SMME)

SMMEs are any business activity or enterprise engaged in industry, agribusiness, and services, whether single
proprietorship, cooperative, partnership, or corporation, whose total assets are inclusive of those arising from
a loan but exclusive of the land on which the business is situated, under the following capitalization (Arat,
2023):
Type of Enterprise Capital Requirement
Micro Less than P50,000
Cottage P50,001 to P500,000
Small P500,001 to P5,000,000
Medium P5,000,001 to P20,000,000
Table 1: Capital Requirement for Small, Medium, and Micro-sized Enterprises

Forms of Business Ownership

One of the initial obstacles entrepreneurs face is determining the ownership structure they wish to
adopt. Before setting up a business, it is essential to understand business ownership clearly. Knowing who
owns the business and their rights and responsibilities can significantly impact the decisions and actions taken
as an entrepreneur. Therefore, taking the time to properly understand ownership structures and legal
frameworks is crucial for business success (Hayes, 2023).

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Type of Ownership Advantages Disadvantages

Sole Proprietorship
– it is initiated,
organized, owned, and
managed by a single
person
Partnership
– two (2) or more
partners who co-own a
business to make a profit
Corporation
– exist in contemplation
of law; the business has
its own identity separate
and distinct from
stockholders
Cooperative
– a duly registered group
of persons with a
common interest to
voluntarily join to
achieve a lawful social
and economic end.
• Easily created and terminated
• Ownership and rewards in one
person
• Flexibility to changes
• Minimum regulation and
taxation
• Pooling of resources
• Ability to obtain capital
• Incentive for each partner
• Limited regulation and taxation
• Limited liability for stockholders
• Legal entity protected by law
• Ownership is transferrable
• Obtaining capital is easier
• Employee benefits
• Right to vote for a significant
decision
• Open and voluntary
membership
• Democratic control by members
• Education is mandated
• Cooperation among members
• Direct benefits to members and
community
• Tax privileges
Table 2: Forms of Business Ownership
• Unlimited personal liability
• Limitations in capital
• It ends when the owner dies or
becomes seriously ill
• Limited skills and capabilities
• Unlimited liability – solitarily
liable
• Termination can happen
• Difficult in reconciling personal
or business interests
• Problems in share liquidation
• Legal formality and regulations
• Costly and time-consuming
• Separate taxation
• Owner’s potential loss of
control in the business
• Limited interest in shares
• Inequality of profit distribution
• Pro-poor bias might deviate
from the profit orientation

Entrepreneurial Competencies and Motivation

According to Maryville University (2023), the idea of becoming a boss may have appeared daunting for many
people. It could be attributed to the intricate dynamics and responsibilities of leading a team or organization.
Today, entrepreneurship is becoming more accessible and feasible for some individuals. The key is
approaching this role with confidence, dedication, and a solid commitment to personal and professional
growth aided by advancements in science and technology and a more supportive business environment.

Successful businesspeople also have specific characteristics and skills that help them make it big in the business
world. Possessing a wide range of essential entrepreneurial skills is paramount. These skills entail
comprehending the correlation between the risks and rewards of the business endeavor and devising a
comprehensive strategy for contingencies as situations evolve.

Below are the core competencies that entrepreneurs need to make their businesses thrive (Scott, 2022):
• Leadership. Entrepreneurs display their passion, vision, and mission for the business in every
interaction with investors, employees, and external stakeholders.

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• Articulate. Entrepreneurs recognize the importance of facilitating communication in all directions

within an organization. Communication skills are vital in various business areas, such as closing
sales, boosting employee morale, resolving conflicts, and negotiating contracts.
• Sociable. Entrepreneurs recognize that aligning the organizational approach with the unique
characteristics of the business and its employees is crucial when managing people.
• Adaptable. Entrepreneurs must be decisive, passionate, adaptable, and willing to make changes.
• Collaborative. Entrepreneurs know it is crucial to connect with managers, investors, partners, and
stakeholders as equals. They understand the value of each person's contribution and do not focus
on a hierarchical structure.
• Multifaceted. Entrepreneurs must be adaptable and multi-skilled. They must manage all business
aspects, including sales, marketing, and client and stakeholder management.
• Resilient. Entrepreneurs embrace failure and never give up easily. They constantly seek
motivation and view setbacks as chances to gain wisdom and advance.
• Proactive. An entrepreneur should take the initiative to address problems before they happen,
whether about finances, branching into a new market, or benchmarking the competitors.
• Innovative. Entrepreneurs can grow their businesses and satisfy customers by developing new
market offerings that meet the changing demands.
• Risk-taker. Entrepreneurs are aware of the potential risks of starting a business and are proactive
in mitigating these risks.
• Creative. Entrepreneurs who succeed possess a relentless curiosity that drives them to constantly
explore novel concepts and prospects that evolve into profitable business ventures.
• Passion. Entrepreneurs' passion is a constant source of motivation and drives them to achieve
their targets of revolutionizing outdated methods and introducing innovative business concepts.

Motivation Theory
Theories of motivation suggest that behavior is not random but rather driven by a purpose to achieve specific
objectives. In other words, entrepreneurial motivation refers to an entrepreneur's drive to continue engaging
in entrepreneurial activities. Entrepreneurial behavior can encompass a variety of actions, such as taking risks,
identifying new opportunities, and pursuing innovation (McCreanor, 2023).

There are two (2) types of motivation:

1. Extrinsic Motivation. It is about motivating individuals to complete a task by offering rewards such
as money, gifts, or treats. However, this type of motivation fades away when the reward is absent
or not at par with their interest.
2. Intrinsic Motivation. People do the task at hand because they are passionate about the business.
The following are the categories of intrinsic motivation:
• Achievement motive - Have a strong motivation to succeed, achieve greatness, and conquer
any difficulties and hurdles in the quest for objectives.
• Power motive - The desire for control, influence, and the ability to impact others and change
circumstances.
• Affiliation motive - The act of pursuing, upholding, or revitalizing an emotional connection
with others.

References
Adalia, J. (2022). Rags to Riches Story of Jollibee’s Tony Tan Caktiong. https://www.businessnews.com.ph/rags-to-riches-story-of-
jollibees-tony-tan-caktiong-20210202/

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Agrea (2019.) Women Empowerment Must Be Our Legacy: Drago Fruit Queen of The Philippines. https://agrea.ph/news/women-
empowerment-must-be-our-legacy-dragonfruit-queen-of-the-philippines
Beattie, A. (2022). Who Coined the Term 'Entrepreneur'? https://www.investopedia.com/ask/answers/08/origin-of-entrepreneur.asp
BusinessMirror (2018). Social entrepreneur rides on sustainable, scalable revolutions through the Bambike.
https://businessmirror.com.ph/2018/05/09/social-entrepreneur-rides-on-sustainable-scalable-revolutions-through-the-
bambike/
David, R. (2022) Entrepreneurship 101. Florida. R. Davids & Associates LLC.
Fastrecap (2020) The Path to $100B, by Gmail creator Paul Buchheit. https://medium.com/fastrecap/the-path-to-100b-by-gmail-
creator-paul-buchheit-85e022e1a4a3
Globe (2022). Globe’s Ernest CU Hailed as Best Telco CEO by the Global Economics. https://www.globe.com.ph/about-
us/newsroom/corporate/ernest-cu-hailed-best-ceo-global-economics.html#gref
Guillebeau, C. (2023) Gonzo Capitalism: Discover New Radical Ways to Monetize Your Creativity, Talents, and Time. New York. Little
Brown Company.
Hayes, A. (2023) Entrepreneur: What It Means to Be One and How to Get Started. https://www.investopedia.com/entrepreneur.asp
Hilotin (2021). Filipino tech billionaire Dado Banatao: From farm boy to billionaire, a rags-to-riches story in Silicon Valley.
https://gulfnews.com/photos/business/filipino-tech-billionaire-dado-banatao-from-farm-boy-to-billionaire-a-rags-to-riches-
story-in-silicon-valley-1.1623339047491
MaryVille University (2023). Importance of Entrepreneurship: Types, Benefits, and Styles https://maryville.edu/entrepreneurship/
McCreanor, N. (2023). Brilliant Business – Entrepreneurship. Notthingham. Dagda Publishing.
Pascual, J. (2020). How did Kumu get so huge? https://www.rappler.com/life-and-style/arts-culture/kumu-streaming-philippines/
Prater (2023). 70 Small Business Ideas for Anyone Who Wants to Run Their Own Business. https://blog.hubspot.com/sales/small-
business-ideas
Roy (2019). The Bamboo Company: the business for the eco-friendly millennial.
https://beta.entrepreneurship.org.ph/2019/09/24/the-bamboo-company-the-business-for-the-eco-friendly-millennial/
Scott,J. (2022). The Entrepreneur's Guide to Building a Successful Business. Brussels. EFMD Publishing.
Yang (2021) How Xiaomi Became an Internet-of-Things Powerhouse. https://hbr.org/2021/04/how-xiaomi-became-an-internet-of-
things-powerhouse

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