CHAPTER 1

PERSPECTIVE OF
ENTREPRENEURSHI
P
Marianne M. Almogen

Instructor 1
Subject
Matter
1. Definition of
Entrepreneur/Entrepreneurship/entreprene
urial mind
2. Characteristics of an Entrepreneurs
3. The contributions and socio-economic
benefits to the economy
4. Advantages and drawbacks of
becoming Entrepreneur
5. Categories of Entrepreneurs
6. Distinction between Entrepreneur and
Manager

08/08/2022 Perspective of Enterpreneurship 2

 1. Define Entrepreneur/entrepreneurship/entrepreneurial mind.
LEARNING OUTCOME 2. Discuss the characteristics of an entrepreneur.
3. Identify the contributions and socio-economic benefits to the
economy.
4. Explain the advantages and drawbacks of becoming entrepreneur.
5. Distinguish entrepreneur from a manager.

8/8/2022 Perspective of Enterpreneurship 3

Definition of
Entrepreneurship
Entrepreneurship refers to the economic activity of a
person who starts, manages, and assumes the risk of
business enterprise. It is a way of thinking reasoning, and acting
that is opportunity obsessed, holistic in approach, and
leadership balanced.
 
It involves seeking opportunities for market, establishing
and operating a business out of the opportunity, and assessing
its risks and rewards through close monitoring of the operations.

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Role of Entrepreneurship
in Socio-Economic Growth
of a Country
 
Entrepreneurs play big role in driving a nation’s economic
growth and societal development. They inspire people to dream
big and to push the boundary of advancement. They initiate
change in the way we work and live for the better. And most
importantly, they create jobs and fortune for a nation.  They pull
the process of economic development through efficient use of
resources, manpower, and finance. Their role is significant in all
types of economies—undeveloped, developing, and developed. 
Let’s take a closer look at how entrepreneurship contributes
to a nation’s economic development:

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Creation Employment
 
Entrepreneurs are by nature job creators as
opposed to job seekers. When a person
becomes an entrepreneur, there is one less job
seeker in the economy. In addition to that, that
person provides employment or multiple other
job seekers. The job creation by new and
existing businesses is one of the basic goals of
economic development. 

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Encourages Better
Standard of Living
 
Entrepreneurship is a key in raising the standard of
living. Entrepreneurs not only provide means for living
through employment but they also provide people’s
needs and wants. They develop as well as adopt
innovations that lead to improvements in the quality of
lives. The boom in the high tech electronics, personal
shopping experiences, luxury cars and other products
which have made our life easier are all a result of this rise
in our standard of living, thanks to the innovators and
entrepreneurs.

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Initiate Chain of Support
and Wealth Sharing
 
While establishing the business entity,
entrepreneurs invest their own resources
and attract capital from investors, lenders
and the public. This mobilizes public wealth
and allows people to profit from the success
of entrepreneurs and growing businesses.
This kind of pooled capital results in wealth
creation and distribution.
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Expanding Exports
 
As businesses grow, they eventually want to start exporting to expand their
businesses to foreign markets. It is considered an important key factor of
economic development since it provides access to bigger markets which
ultimately leads to currency inflows and access to cutting-edge technologies and
processes being used in more developed foreign markets. 
Entrepreneurs not only invest their own capital but it also attracts capital from
the market. They make productive use of these savings and mobilize them by
turning it into a productive resource. The pooled financial resource or capital is
the basis of wealth creation in the economy, thus contributing majorly to the
socio-economic development of a country.
Conclusively, entrepreneurs play a very important role in a nation’s
development by starting new businesses, creating jobs, and contributing to
development in various key areas such as Gross Domestic Product (GDP),
exports, standard of living, skills development and community development. 
. 
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Advantages and Disadvantages
of Entrepreneurship
 To everything in life there are advantages and
disadvantages; entrepreneurship is no exception. As
a matter of fact, entrepreneurship, evolves a lot of risk
taking. Yet, it can pay off very well, with rewards such
as profits. The opportunity to be your own boss and
make your own decisions. . 
. 

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1. Excitement
Due to its high capacity for risk, there is a
lot of adventure. It develops excitement
in entrepreneurs. It also develops
positive attitude to face challenges

2. Originality
Innovative entrepreneurs tries to bring
maximum quality and natural products.
Only a creative entrepreneur can offer a
new service or product that no one else
has offered before.

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3. Independence
Some wish to be their own boss and
makes all the important decisions
themselves. Entrepreneurship
provides opportunity to think and to
act independently.

4. Rational Salary
They are not being paid on what they
doing but they earn money for their
efforts through profit. If they work hard
earnings will higher

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1. Meeting Variable Cost 2. Benefits
Starting your own business means that There are fewer benefit especially when your
you must be willing to give the security of business is just starting off.
a regular payment of cash for necessity.
3. Work Schedule
The work schedule of an entrepreneur is never
predictable—an emergency may come up in a
matter of seconds. The day to day activities of
an entrepreneur changes from time to time. 13

4. Administration
All the decisions of the business are made by
the entrepreneur, himself. In such a business,
there is a chance for wrong decisions. Such
wrong decisions will lead to loss.
5. Incompetent Staff
Most of the time, the entrepreneurs find themselves
working with employees, due to shortage of
experienced employees. It brings wastage of raw
materials and decrease in productivity.
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Definition of
Entrepreneur?
 
The word entrepreneur has a French origin and was coined
from the words entre, which means “between” and preneur
which means parts.
An entrepreneur is a unique individual who has the innate
ability and an extraordinary dedication to establish and manage
business, and acknowledging all the risks and reaping its
rewards. He is willing to take risk whether personal or financial.

An entrepreneur identifies an economic need, considers

offering economic solution, proceeds to assemble the
resources required, and assumes the risk of either
succeeding or falling.
. 
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Core Characteristics of
Entrepreneurs
 
Here are the most important or distinguishing traits or qualities that
entrepreneurs should possess.
 
1. Always takes initiative.
2. Translates opportunity into reality.
3. Determined to face the situation (optimistic).
4. Information seeking from all corners (realistic).
5. Demand for quality and efficiency (value product).
6. Risk taking – Financial, Social, and Psychological
7. Goal setting.
8. Commitment to work / long working hours.
9. Systematic planning and monitoring – organized.
10. Self-belief, persuasion and networking.
11. Independent & self-confidence but not over confident.
 
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Positive Characteristics of an Entrepreneur

Leadership Optimism 3. Hardworking 4. Creative

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Definition of
Entrepreneurial Mind
 
The business mind harnesses the potentials of
new products by creating the market space for
them. It also organizes sufficient forces and
resources to develop, launch, and
commercialize the new product in order to
maximize its market value.

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Characteristics of the
Entrepreneurial Mind
1. Creativity – the seed of entrepreneurship is the ability to see things differently. Whether it’s with new products
or new processes, entrepreneurs are driven by the uncanny knack to see holes in the marketplace and devise
innovations to fill them.
 
2. Suspicion of Predictors – entrepreneurs tend to not to labor under the assumption that data is the sole
predictor of an outcome. Especially in new markets and with new products where data is largely interpretive or
extrapolated, entrepreneurs are undaunted by the typical predictors that may put off fainter hearts.

3. Comfort with Uncertainty – a distrust of prediction and analysis creates an atmosphere where uncertainty
rules. Indeed, uncertainty rules very essence of entrepreneurship.
 
4. Functional Humility – egos can destroy the best ideas. Entrepreneurs who are committed to solving a
business problem or reinventing a product or service display a functional humility.
 
5. Openness to Experimentation – a comfort with experimentation goes beyond educated trial and error. The
ability experiment with products, processes and outcomes, no matter where the results may lead, is the key
element of this quality.
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Entrepreneurial Mind
Frame
The entrepreneurial mind frame allows the
entrepreneur to see things in a very positive and
optimistic light in the midst of crisis or difficult situations.
 
Passion is the great desire to attain a vision or fulfill
a mission. It is about wanting something so much that a
person would be willing to totally devote oneself to the
quest.
 
“People with passion can change the world for the
better.” Steve Jobs

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Entrepreneurial Mind
Frame
The entrepreneur also looks after the interests of his
or her people by motivating and encouraging them to be
the best that they can be.
 
This creates caring culture within the organization
that brings about synergy among the people working
toward a common vision.
 
The technical mind is the technology originator. The
entrepreneur may not necessarily possess the technical
mind but this is what drives him or her to convert new
knowledge into something highly functional and
operational.
 
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Entrepreneurial Gut Game
The entrepreneurial gut game refers to the ability of
the entrepreneur to sense without using five senses.
This is also known as intuition.
 
The gut game also connotes courage or, in the local
dialect, “lakas ng loob” (strong intestinal fortitude).
 

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Entrepreneurship and
Innovation
Innovation may be viewed of an important
process consisting of the following:
 
1. Invention which refers to the discovery or
devising of new products and processes.
2. Development which refers to the process by
which the ideas and principles generated from
the stage of invention are embodied in concrete
products and techniques.
3. Innovation which refers to the actual
introduction of new products or process.
 
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Enterprises
New Ventures and Long Term Enterprise
 
The transition Demand from a new venture to a successful long-term enterprise
consists of four major stages. They are as follows:

1. Pre-start stage
2. Start-up stage
3. Early growth stage
4. Late growth stage
 
In the start-up stage, the following activities are undertaken:
*formation of the business
*phase of facilities and equipment
*constructing prototype products
*testing the market
 
Examples of Innovation are the following:
*offering business services during Sundays and holidays
*manufacture and sales of new products
*selling on a deferred payment scheme

 
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 Categories/Types of Entrepreneurs
The world of entrepreneurship these days has already evolved, and new terms are
coined to suit an entrepreneurs’ field of expertise. Here as some:

TECHNOPRENEUR SOCIAL ENTREPRENEUR

• an entrepreneur who puts •one who takes advantage of the

technology core of his or her country’s social problems and turn them
to profitable institutions with the
business model. intention of helping the disadvantaged
community rather than making a profit.

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 Categories/Types of Entrepreneurs
The world of entrepreneurship these days has already evolved, and new terms are
coined to suit an entrepreneurs’ field of expertise. Here as some:

INTRAPRENEUR EXTRAPRENEUR

•an entrepreneur in large company or •an entrepreneur who hops from

corporation who is tasked to think, one company to another to act as the
establish, and run a new big idea. innovation champion, providing creative
• Intrapreneurs are usually the product and efficient solutions.
managers or the business development
managers of a company.

Tuesday, February 2, 20XX Sample Footer Text 26

 Types of Entrepreneurs
a. TRADING
ENTREPRENEUR
 They procure the finished
products from the manufacturers
and sell these to customers
directly or through a retailer.
 They serve as the middlemen,
the wholesalers, dealers, and
retailers between the
manufacturers and the
customers.
1. Based on the type of Business
B . M A N U FA C T U R I N G
ENTREPRENEUR
 They manufacture products.
 They identify the needs of the
customers, and, then, explore
the resources and technology
to be used to manufacture the
products to satisfy the
customers’ needs.
C . A G R I C U LT U R A L
ENTREPRENEUR
 The entrepreneur who undertakes
agricultural pursuits are called
agricultural entrepreneurs.
 They cover the wide spectrum of
agricultural activities like
cultivation, marketing of
agricultural produce, irrigation,
mechanization, and technology.
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 Types of Entrepreneurs
2. Based on the use of Technology

TECHNICAL NON-TECHNICAL
ENTREPRENEUR ENTREPRENEUR

These the They are concerned with the

entrepreneurs who use of alternative and imitative
make use of science methods of marketing
and technology in their distribution strategies to make
enterprise. their business survive and thrive
in the competitive market.

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 Types of Entrepreneurs
3. Based on Ownership
a. Sole proprietorship
*One who as an individual set up a business enterprise.
*sole owner of the enterprise and bears the entire risks
involved in it, gets all the profit—called unlimited liability.
*Easiest and least expensive to set up

A D VA N TA G E S D I S A D VA N TA G E S

 owner makes all the decisions,  the owner may lack the ability to buy the right
hours of business, and whom to supplies, do accounting, etc.
hire  if the business loses money, so does the
 owner is the boss owner
 any profits belong to the owner  creditors can claim the personal belongings
of the owner
 long hours of work
 if the owner is ill, the business doesn’t’ open

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 Types of Entrepreneurs
3. Based on Ownership
b. Partnership
*two or more individuals share cost and responsibilities
*terms of partnership is recorded in partnership agreement
*silent partner” - partner that will front a lot of capital, but do
participate in business decisions—receive profits in return

A D VA N TA G E S D I S A D VA N TA G E S

 two or more people share decision-  share profits

making process  partners could disagree
 One person may be better at one  friendship can be lost over time as a result
task than the other partner
 Sometimes its easier to borrow
money if two people are involved

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 Types of Entrepreneurs
3. Based on Ownership

c. Corporation d. Cooperatives
*business with legal status *business owned by workers who use it
*owned by individuals, families or small *run by the board of directors
groups *each member gets only 1 vote
*ownership often broken into small unit, *profit shared based on use
shares, which are sold
through stock exchange
*those who buy – shareholders
*since there are many owners, a board of
directors runs the corporation
*shareholders have limited liability, not
responsible for debts
*get profits as dividends.

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 Types of Entrepreneurs
4. Based on the Size of Enterprise

a. Micro entrepreneur b. Small-scale

 one who an investment in plant and machinery  one who an investment in plant and
of less than Php 3,000,001 and with less than machinery of less than Php 3,000,001 up
10 regular workers. to 15,000,000 and with 10 to 99 regular
workers.

c. Medium d. Large
 one who an investment in plant and machinery  one who an investment in plant and
of less than Php 3,000,001 up to 15,000,000 machinery above Php 100M.
and with 10 to 99 regular workers.

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 1. MOTIVE
Distinctions
Entrepreneur
between
The main motive of an
Entrepreneur and entrepreneur is to start a
Manager venture by setting up an
enterprise. He
understands the venture
for personal gratification.
Manager
But, the main motive of a
manager is to render the
services in an enterprise
already set up by someone
else i.e., the entrepreneur.
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 2. RISK BEARING
Distinctions
between Entrepreneur Manager
Entrepreneur and An entrepreneur being the A manager as an employee
Manager owner of the enterprise does not bar any risk
assumes all risks and involved in the enterprise
uncertainty involved in
running the enterprise

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 3. STATUS
Distinctions
Entrepreneur Manager
between
Entrepreneur and An entrepreneur is the owner A manager is an employee
Manager of the enterprise. in the enterprise owned by
the entrepreneur.

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 4. REWARDS
Distinctions
Entrepreneur Manager
between
Entrepreneur and The reward an entrepreneur Manager gets salary as
Manager gets for bearing risks reward for the services
involved in the enterprise is rendered by him in the
profit which is highly enterprise. Salary of a
uncertain. manager is certain and
fixed.

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 5. QUALIFICATION
Distinctions
Entrepreneur
between
Entrepreneur and An entrepreneur needs
Manager qualities and qualifications
like high achievement
motive, originality in
thinking, foresight, risk
bearing ability, and so on.
Manager
A manager needs to
possess distinct
qualifications in terms of
sound knowledge in
management theory and
practice.
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 6. INNOVATION
Distinctions
Entrepreneur
between
Entrepreneur and An entrepreneur himself
Manager thinks over what and how to
produce goods to meet the
changing demands of the
customers. Hence, he acts as
an innovator also called a
“change agent”.
Manager
On the contrary, what the
manager does is simply to
execute the plans prepared
by the entrepreneur. Thus, a
manager simply translates
the entrepreneurs’ ideas into
practice.
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Thank You
Marianne M. Almogen
almogenmarianne@gmail.com
Facebook messenger or gmail account

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