ENTREPRENEURIAL

MIND
ENTREPRENEURSHIP
Refers to the economic
activity of a person who
starts, manages & assumes
the risk of a business
enterprise.
ENTREPRENEUR
is the person who undertakes
entrepreneurial activities. -
identifies an economic need,
considers offering a business
solution, proceeds to assemble
the resources required, &
assumes the risk of either
succeeding or failing.
The Entrepreneur’s Task
products & services for customers & producers;
employment;
taxes;
demand for suppliers’ products & services;
training facilities for future entrepreneurs.
 The Entrepreneur’s Task
In the attempt to make profits, the entrepreneur performs
the ff. specific functions:
To supply the necessary capital;
To organize production by buying & combining inputs
like materials & labor;
To decide on the rate of output, in the light of his
expectation about demand;
To bear the risk inherent to the venture.
Entrepreneurship and Innovation
Innovation – defined as the introduction of a new method,
procedure, custom, device, among others.
New product;
New process of production;
Substitution of a cheaper material in an unaltered
product;
Reorganization of production, internal function, or
distribution arrangement leading to increased efficiency,
better support for a given product, or lower cost; or
Improvement in instruments or methods of doing
innovation.
Entrepreneurship and Innovation
Invention – refers to the discovery or devising of new
products and processes;
Development – refers to the process by which the
ideas and principles generated from the stage of
invention are embodied in concrete products and
techniques;
Innovation – refers to the actual introduction of a new
product or process.
 Entrepreneurship and Business
Idea
To compete effectively (innovations):
Offering business services during Sundays and holidays;
Manufacture and sale of new products; and
Selling on a deferred payment scheme.
 Entrepreneurship and Business
Idea
Distinct Characteristics of Entrepreneurs:
Have the competence to organize factors of production.
Entrepreneurs have the skills to mix the right amount of land,
labor, & capital in establishing an enterprise.
Know how to make business decision. They can easily answer the
three basic economic questions.
Risk takers .They have the ability & courage to face uncertainties
involved in business activities. eg. Fortuitous event
Innovators. They have the ability to introduce or improve a
product that already exists in the market &/or create new ways of
organizing business.