ENTREPRENEURIAL MIND (MGT 222)

PRELIMINARY COVERAGE

Introduction to Entrepreneurship
 Has the capacity to recognize the
ENTREPRENEURSHIP market potential of creativity and
organize the resources needed
It is the process of creating, launching {capital, talent & other resources
and managing: → turn creation into a beautiful
● Creating business operation market innovation}
○ Creating new businesses
○ Creating new ideas  Someone who establishes a new
○ Creating goods & Services entity to offer a new or existing
○ Creating procedures product or service into a new or
existing market, whether it is for a
● Launching business operation profitable or non-profitable
○ Launch the new businesses, ideas, outcome.
goods & services and
procedures
 An individual who is able to
perceive an opportunity for a
● Managing business operation
business and create an
○ Managing of the new businesses,
organization to develop and
ideas, goods & services
manage that business
and procedures
successfully.
● The “act” of being an entrepreneur
THEORIES OF ENTREPRENEURSHIP
ENTREPRENEUR
1. The Economic Theory
 comes from the French word
“entreprendre” means to
- Entrepreneurs as a Risk Taker
undertake, to set about, “to
undertake or to try”; to start off or
2. The Sociological Theory
to begin (Richard Cantallion
- Entrepreneurs as an Organizer
1775)
3. Entrepreneurship Innovation
 Individual that develops new
Theory
creations and assumes the risk of
- Entrepreneurs as an Innovator
business to produce products that
satisfies the customers need
4. Psychological Theory
(essential) and wants (desires)
- Entrepreneurs are formed during the
individual’s upbringing,
 Has the ability to find, act on
the need to achieve and prove
opportunities, translate these
something
opportunities into products that
would satisfy the market.
5. Theory of Achievement
Motivation/Achievement Theory
- Entrepreneurship can be developed
and traditional beliefs do
not inhibit entrepreneurs.
THE ENTREPRENEURIAL PROCESS
1. Self-Discovery. Learning what
you are doing, examining your
strengths and weaknesses.
2. Identifying Opportunities. Looking
for needs, wants, problems and
challenges that are not yet being
met or dealt with effectively.
3. Generating and Evaluating Ideas.
Using creativity and past
experiences to devise new and
innovative ways to solve a
problem and narrowing the field
to one best idea.
4. Planning. Researching and
identifying resources needed to
turn idea into a viable venture.
5. Raising Start Up Capital. Using
the business plan to attract
investors, venture capitalists’
partners.
6. Start-Up. Launching the venture,
developing a customer base and
adjusting marketing and
operational plans.
7. Growth. Growing the business,
developing and following strategic
plans and adapting to new
circumstances.
8. Harvest. Selling the business and
harvesting the rewards. This also
means moving on to the new
ventures and challenges.
THE ENTREPRENEURIAL MIND:
SUPPLEMENTARY LESSONS
DEFINE ENTREPRENEUR
An entrepreneur is an individual
who creates a new business,
bearing most of the risks and
enjoying most of the rewards.
The entrepreneur is commonly
seen as an innovator, a source of
new ideas, goods, services and
business/or procedures.
ORIGIN OF ENTREPRENEURSHIP
The term “entrepreneur” likely comes
from the French word "entreprendre,"
meaning to start something.
Richard Cantillon, an 18th-century Irish-
French economist, is widely credited
with defining entrepreneurship — and
entrepreneurs — as an economic force
that drives development
The earliest definition of
entrepreneurship, dating from the
eighteenth century, used it as an
economic term describing the process of
bearing the risk of buying at certain
prices and selling at uncertain prices.
The contemporary view is that
entrepreneurs are driven by motivational
forces outside the strict orientation of
market capitalism (McDaniel 2005)

NATURE OF ENTREPRENEURSHIP
Understanding an Entrepreneurial
Nature
The tendency to take on projects or
create opportunities of a commercial or
humanitarian nature, using a high
degree of independence, where the
reward may be monetary or involves
self-satisfaction. People with a strong
Entrepreneurial Nature have a natural
flair for business.
ENTREPRENEURSHIP PROCESS
APPROACHES
It is useful to break the entrepreneurial
process into five phases:
1. Idea generation
2. Opportunity evaluation
3. Planning
4. Company formation/launch
5. Growth.
WHAT IS IDEA GENERATION?
 Idea generation or ideation is the
act of forming ideas.
 It is a creative process that
encompasses the generation,
 development and communication
of new thoughts and concepts,
which become the basis of your
innovation strategy.
Example: Brainstorming, Role -Playing,
Visioning
OPPORTUNITY EVALUATION is
essentially a process of judgment based
on cognition (Shepherd et al., 2007;
Wood and McKelvie, 2015).
Why is there a need to evaluate
opportunities?
Use of models for evaluation of business
opportunities allows entrepreneurs to
"open their eyes" in order to avoid risks
of a future venture, but also helps them
transform existing ideas into business
opportunities by modifying them.
PLANNING is the process of thinking
regarding the activities required to
achieve a desired goal.
The entrepreneur who plans will be
more likely to face the difficulties of
running a business with more
confidence and ease.
COMPANY FORMATION AND
LAUNCH
What is the definition of formation of a
company?
Formation of a company is a complex
activity involving completion of legal
formalities and procedures.
Company formation is the process of
incorporating (registering) a business in
the form of a limited company
Company formation is the process of
incorporating a business. Upon
incorporation, a private limited company
becomes a separate legal entity; an
'individual' that is completely distinct
from its owners and responsible for its
own finances, assets and liabilities.
GROWTH. The process of improving
entrepreneurial skills and knowledge
among individuals with the help of
providing well-organized training and
developing supporting institutions is
called entrepreneurial growth or
development
What is an example of a growth-oriented
business?
Google (GOOGL), Tesla (TSLA), and
Amazon (AMZN) are three classic
examples of growth companies because
they continue to focus on investing in
innovative technologies, sales growth,
and expansion into new businesses.
ENTREPRENEUR vs
ENTREPRENEURSHIP
An entrepreneur is someone who has
an idea and who works to create a
product or service that people will buy
as well as an organization to support
that effort. An entrepreneur takes on
most of the risk and initiative for their
new business, and is often seen as a
visionary or innovator.
Entrepreneurship is the process of
developing, organizing, and running a
new business to generate profit while
taking on financial risk
ENTREPRENEURSHIP SKILLS
1. CREATIVE THINKING.
Creativity leads to invention, which leads
to opportunity.
Why is creative thinking important for
entrepreneurs?
Competitive advantage: Creativity leads
to innovative ways of doing business.
Exploring new niches and generating
new ideas lead to efficiency and
eventually give an entrepreneur the
required edge over the competition.
2. CRITICAL THINKING
What is critical thinking in
entrepreneurship?
Critical thinking in the workplace
guarantees objective and efficient
problem-solving, ultimately reducing
costly errors and ensuring that your
organization's resources are used
wisely.
3. EFFECTIVE COMMUNICATION.
It helps in enhancing customer
experience and satisfaction. Remember,
happy customers, are key to
entrepreneurial success.
Effective communication strategies and
execution facilitates enterprise decision
making to be faster and mature. Good
decisions boost business agility and
offer a competitive edge to the
company.
4. FINANCIAL KNOWLEDGE.
What is meant by financial knowledge?
Strong financial knowledge and
decision-making skills help people weigh
options and make informed choices for
their financial situations, such as
deciding how and when to save and
spend, comparing costs before a big
purchase, and planning for retirement or
other long-term savings.
5. SMART BUSINESS
MANAGEMENT.
What is business SMART in
entrepreneurship?
SMART is an acronym for the 5
elements of Specific, Measurable,
Achievable, Relevant, and Time-based
goals. It's a simple tool used by
businesses to go beyond the realm of
fuzzy goal-setting (malabo na layunin)
into an actionable plan for results.
Examples of Business Smart Goals
Reduce overtime in the department from
150 hours per month to 50 hours per
month by the end of the fiscal year with
no increase in incident reports. Ensure
that the 90%+ of the team has
completed training on the new inventory
management software by the end of the
quarter.
6. VALIANT.
Possessing or showing courage or
determination.
"She made a valiant effort to hold her
anger in check"
7. STRESS MANAGEMENT.
Business stress management
incorporates workplace tools, strategies,
or techniques that reduce stress and its
negative impact on employee wellbeing.
You can implement a variety of
emotional, mental, and behavioral stress
management strategies.
8. TIME MANAGEMENT.
Time management is the coordination
of tasks and activities to maximize the
effectiveness of an individual's efforts.
Essentially, the purpose of time
management is enabling people to get
more and better work done in less time.
SOCIO-ECONOMIC BENEFITS FROM
ENTREPRENEURSHIP
1. PROMOTE SELF-HELP AND
UNEMPLOYMENT
Every entrepreneur helps or assist the
government not only by providing
employment
2. MOBILIZES CAPITAL
How does entrepreneurship mobilize
capital?
To exploit opportunities, entrepreneurs
mobilize and recombine a variety of
resources, such as financial capital
(e.g., cash or loans from a bank), human
capital (e.g., skills from an employee),
and social capital (e.g., information
obtained from social contacts).
3. PROVIDE TAXES TO THE
ECONOMY
Taxes generally contribute to the gross
domestic product (GDP) of a country.
Because of this contribution, taxes help
spur economic growth which in turn has
a ripple effect on the country's economy;
raising the standard of living, increasing
job creation, etc.
4. EMPOWER INDIVIDUALS
It means having a level of control over
yourself and the world around you and
being comfortable with what you cannot
control. It's about thinking for yourself
and being true to yourself.
5. ENHANCE NATIONAL IDENTITY
AND PRIDE
How does entrepreneurship enhance
national identity and pride?
Enhance National Identity and Pride The
quality and quantity of products and
services produced by every
entrepreneur is a source of pride and
identity for a country.
6.
ENHANCE COMPETITIVE
CONSCIOUSNESS
How does entrepreneurship increase
competition?
By establishing new businesses,
entrepreneurs intensify competition for
existing businesses. Consumers benefit
from the resulting lower prices and
greater product variety.
7. IMPROVES QUALITY OF LIFE
How can entrepreneurs help in
improving the quality of life of people in
society?
Entrepreneurs provide access to
employment, food, affordable energy
and other critical services to those who
are struggling. It is estimated that
businesses partnering with and
supporting social entrepreneurs could
have a positive impact on the lives of
nearly 1 billion people around the world.
8. ENHANCES EQUITABLE
IMPACT
Rectifying these inequities represents a
significant opportunity: More-effective
entrepreneurial support has the potential
to improve wealth accumulation
ATTRIBUTES, QUALITIES AND
CHARACTERISTICS OF AN
ENTREPRENEUR
Traits and Characteristics of an
Entrepreneur
 Vision and Passion.
An entrepreneur must have a
very clear vision of his business.
 Innovative.
One of the main characteristics of
entrepreneurship is innovation.
 Risk Taker.
A risk is an integral part of any
new business.
 A person who is willing to do
things that involve danger or risk
in order to achieve a goal.
 Leader.
Entrepreneurial leadership
involves organizing and
motivating a group of people to
achieve a common objective
through innovation, risk
optimization, taking advantage of
opportunities, and managing the
 Persistent.
Entrepreneurial persistence is
demonstrated by an
entrepreneur's continued positive
maintenance of entrepreneurial
motivation and constantly-
renewed active engagement in a
new business venture despite
counter forces or enticing
alternatives.
 Ethical.
They keep their word.
They establish genuine
accountability in their lives.
They avoid compromising
situations.
They don't make decisions based
on personal cost or gain.
They confront injustice and
unethical behavior.
They make mistakes just like
everyone else.
 Competitive Spirit.
What is competitive spirit in
business?
Individuals and teams who
demonstrate a 'competitive spirit'
display this by pushing harder
than others, demonstrating a
higher level of skill, consistently
performing at an elevated level,
and are the people that others
look up to as leaders and role
models.
 Resilient.
Why should an entrepreneur be
resilient?
Being resilient might be a
prerequisite for having an
entrepreneurial mindset. Several
studies show that resilient people
are more likely to launch new
ventures, take over existing
businesses and pivot their
business during a crisis like the
COVID-19 pandemic.
DEVELOPING YOURSELF FOR
ENTREPRENEURSHIP
PERSONAL DEVELOPMENT LEADS
TO BUSINESS GROWTH
If you gain knowledge and acquire skills
through personal development, you are
empowering yourself to produce better
results. It boosts work motivation and
job satisfaction. Working on personal
development will motivate you to work
harder. You'll experience higher
satisfaction when you have a clear path
to follow
WAYS TO PROACTIVELY DEVELOP
YOUR ENTREPRENEURIAL SKILLS
1. Refine your interpersonal skills
Be confident, friendly and
approachable–consistently. Practice
these things daily and they’ll become
habitual.
2. Connect with other entrepreneurs
Twitter is a great place to start. As a
real-time platform, it’s perfect for
eyeballing what others are up to and
discovering key people.
3. Join communities in your industry
Example online platform via different
means. Content Strategy is the name of
the platform.
4. Make a book list
There are many great books people
mention in passing conversation. Make
a list. Then slowly work your way
through reading–or listening to–them.
5. Practice resilience
Learn from things that don’t work.
Challenges happen, and if things don’t
go to plan you need to work out why so
you don’t fail at the same thing twice.
6. Ringfence time to de-stress
Your learning rate as a proactive
entrepreneur is going to rocket. Catch a
film, or take time out to read a book
that’s on your personal rather than
professional list.
7. Keep your learning active
The need for continuous learning is high
as an entrepreneur. Look for courses in
your field (think about your strengths
and weaknesses to spot gaps).
Conferences and events, seminars, and
meetups offer easy ways to upskill and
make new connections at the same
time.
WHAT IS THE CONCEPT OF
INNOVATION AND CREATIVITY IN
BUSINESS?
Innovation is the process of turning a
new concept into commercial success or
widespread use. Invention is the
creation of a new idea or concept.
Creativity is the act of turning new and
imaginative ideas into reality
ENTREPRENEURSHIP TREND AND
ISSUES
The Biggest Trends in
Entrepreneurship
1. Everyone is doing it. It seems like
everyone calls themselves an
entrepreneur. The barriers to
entrepreneurship are technically low.
You don’t need a ton of capital. It is
generally fairly easy to go through the
bureaucratic steps to be an
entrepreneur.
2. Intrapreneurs are becoming more
common. Many established companies
are promoting innovation through
internal entrepreneurs. These are
employees that are allowed to work like
entrepreneurs.
3. Solopreneurs are increasing. A
solopreneur is an entrepreneur who runs
their business alone. They don’t have
employees, but may have contractors.
4. Marketers are becoming
Entrepreneurs. More and more people
with marketing ability are taking up
entrepreneurship. With the rise of social
media, it’s increasingly marketing ability
that sells any product.
5. Hiring contract workers is the thing
to do. Since it is getting more expensive
to hire and retain experienced staff, a
common solution is to find term
contractors. It’s a win-win for both the
contractor and start-ups/small
enterprises.
6. Entrepreneurs are laser-focused on
revenue. More entrepreneurs are
seeing the need to focus on revenue,
first and foremost. Funding is limited.
The entrepreneur is forced to gain early
viability and near instant revenue.
7. Few entrepreneurs are starting big
companies. Most companies are digital.
They focus on digital technology. The
ideal entrepreneurial venture now
happens with a laptop and a vision.
8. Technology is becoming more and
more disruptive. Take the examples of
Uber. These startups have redefined
hotel industry and transportation
industry.
9. Working from home. Almost every
startup is leveraging the power of
remote work. And many startups are
taking that to the next level and going
completely online.
10. Marketing is getting more
interactive. Twitter/Facebook is an
example. Users comment or retweet.
Social media marketing is making
marketing a two-way conversation.
11. Consumers are in control. You
can’t manipulate or trick people into
buying your product. That just doesn’t
work today. Being honest works. They
can also easily give feedback. Negative
feedback instantly ruins your reputation.
12. The Internet of Things is here.
Internet of Things (or IoT) connects
devices to the Internet to open up new
possibilities for using those devices.
Apps to control those devices through
IoT are in demand. Data from wearable
devices or even your fridge
13. Automation is rising. Chatbots and
digital assistants are increasing. They
are also getting intelligent. Some even
answer like a human would do.
Biggest Challenges/Issues
1. Difficulty Keeping up with innovations
or being the visionary. With the large
number of competitors emerging, it is
becoming increasingly difficult to keep
up innovating. On top of that, investors
want a better product. Knowing when to
change is becoming key.
2. Harder navigating regulation and
compliance. More and more regulations
and bureaucratic red tapes have
emerged. Many startups are bringing in
a consultant to help with these areas
rather than trying to understand the
complexities themselves.

3. Exploding data. With 90% of the

world’s data was created in the past two
years and managing, keeping safe and
extracting insights from the ever-
increasing amounts of data your
company produces is becoming difficult.

4. Maintaining reputation is getting

tougher. With sites like Yelp or
TripAdvisor, customers can voice any
displeasure so much more publicly and
loudly than ever before. Businesses
need to continually monitor and maintain
their online reputations.

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