INTRODUCTION TO

ENTREPRENEURSHIP

LECTURE 1

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 Teaching Team
• Finance Department
– Mr. Hung: Associate Dean of FMT
Head of Accounting Department
• Marketing Department
– Mr. Duong: Marketing department
• Management
– Ms. An: Tourism Department
– Mr. Quan: Management Department
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 Assessment Details
• Class Participation – 10%
• Innovation Report – 10% - W4
• Human Resource Report – 10% - W6
• Marketing Report – 10% - W8
• Financial Report – 10% - W10
• Final report and Presentation – 50%

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 Assessment Details
• Group of 5 members
• Should have at least ONE member from
Finance/ Accounting major
• All assignments will be submitted by ONE
member in each group.

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 Lecture outline
• Examine the historical development of
Entrepreneurship
• Explore the major school thought of
entrepreneurial thought.
• Perspective on Entrepreneurship

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DEFINING ENTREPRENEURSHIP
• Entrepreneurship: “the creation of an
innovative economic organisation for the
purpose of gain or growth under conditions
of risk and uncertainty”
Entrepreneurship: The process brought
about by individuals of identifying new
opportunities and converting them into
marketable products or services.
• It is a process, that is, entrepreneurship is a
never ending journey
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 ENTREPRENEURSHIP: A MINDSET

• Entrepreneurship is more than the mere creation

of business:
– Seeking opportunities
– Taking risks beyond security
– Having the tenacity to push an idea through to
reality

• Entrepreneurship is an integrated concept that

permeates an individual’s business in an
innovative manner.
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The key elements of entrepreneurship

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 DEFINING ENTREPRENEUR
 Entrepreneur: derived from French word
“entreprendre” meaning to undertake
 The entrepreneur is one who undertakes to
organize, manage, and assume the risks of a
business.
 Entrepreneur : individual who takes risks and
starts something new
 Entrepreneur: innovator or developer who seizes
opportunities and convert opportunities into
workable ideas, adds values, assumes risks and
realizes rewards.
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 DEFINING ENTREPRENEUR
Small Businesses Owners
– Manage their businesses by expecting stable
sales, profits
Entrepreneurs
– Focus their efforts on innovation, profitability
and sustainable growth
Entrepreneurs cause entrepreneurship.
– Entrepreneurship is a function of the
entrepreneur

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 CHARACTERISTICS OF
ENTREPRENEURS
• Strong commitment to succeed
• Need to achieve and grow
• Opportunity obsession
• Tolerance for ambiguity, uncertainty and failure
• Leadership
• Vision
• Self-confidence and optimistic
• Creativeness

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ENTREPRENEURIAL SHCHOOLS
OF THOUGHT

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 MACRO VIEW

The Environmental School of Thought

Considers the external factors that affect a potential
entrepreneur’s lifestyle.

The Financial/Capital School of Thought

Based on the capital-seeking process—the search for
seed and growth capital.

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 MACRO VIEW

The Displacement School of Thought

Alienation drives entrepreneurial pursuits
• Political displacement (laws, policies, and regulations)

• Cultural displacement (preclusion of social groups)

• Economic displacement (economic variations)

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 MIRCO VIEW
The Entrepreneurial Trait School of Thought
Focuses on identifying traits common to successful
entrepreneurs.

The Venture Opportunity School of Thought

Focuses on the opportunity aspect of venture
development—the search for idea sources, the
development of concepts, and the implementation of
venture opportunities. Right idea at the right time for the
right market.

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 MIRCO VIEW
The Strategic Formulation School of Thought
Emphasizes the planning process in successful venture
development. Unique markets – Unique people –
Unique products – Unique resources.

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 BENEFITS OF
ENTREPRENEURSHIP
• You – your own boss
• Control your time and work
• Create your own future
• Earn reputation
• Do what you enjoy, follow your passion
• Earn extraordinary profits

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 DARK SIDES OF
ENTREPRENEURSHIP
• Life balance – family, friends, yourself
• Long working hours
• Risks of losing everything that you have
• Stress and mental illness
• Income fluctuates
• Responsibility

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 PERSPECTIVE ON
ENTREPRENEURSHIP
• Statistical: numbers that emphasize the
importance of entrepreneurs to the
economy.
• Academic: trends in entrepreneurial
research and education.

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 SMALL BUSINESS IN VIETNAM
• August 2023 (estimated): 785,000 SMEs (97%
of total enterprises in Vietnam)
• Contribute more than 50% to GDP
• 30% of state budget contributions,
• Create 70% of the national workforce
(General Statistics Office of Vientam, 2023)

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 SMALL BUSINESS IN VIETNAM
• 50,000 new registred enterprises in 2018
• 49,900 new registred enterprises in first 4
months of 2023
(General Statistics Office of Vientam, 2023)

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TRENDS IN ENTREPRENEURSHIP
RESEARCH
Venture
Financing

Corporate Social
Entrepreneurship Entrepreneurship

Trends in Women
Entrepreneurial
Entrepreneurship and Minority
Cognition
Research Entrepreneurs

Global
Entrepreneurial
Entrepreneurial
Education
Movement
Family
Businesses

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 TRENDS IN ENTREPRENEURSHIP
RESEARCH
 Venture Financing: venture capital and angel capital financing and
other financing techniques strengthened in the 1990s.

 Corporate Entrepreneurship and the need for entrepreneurial

cultures has drawn increased attention.

 Social Entrepreneurship has unprecedented strength within the

new generation of entrepreneurs.

 Entrepreneurial Cognition is providing new insights into the

psychological aspects of the entrepreneurial process.

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 TRENDS IN ENTREPRENEURSHIP
RESEARCH
 Women and Minority Entrepreneurs appear to face obstacles and
difficulties different from those that other entrepreneurs face.

 The Global Entrepreneurial Movement is increasing.

 Family Businesses have become a stronger focus of research.

 Entrepreneurial Education has become one of the hottest topics in

business and engineering schools throughout the world.

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 Social Entrepreneurship
Social change entrepreneurs:
 Organise appropriate resources to solve social
problems
 A person who establishes enterprises primarily
to meet social objectives.
 Please watch an example of a social enterprise
at
https://www.youtube.com/watch?v=3d7TqT1kS
A4
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 Three types of Social enterprises
Leveraged non-profit ventures

– The entrepreneur sets up a non-profit organisation to drive the

adoption of an innovation addressing a market or government failure.

– Depends on outside funding for survival, but its longer term.

sustainability is enhanced because of commitment of a multiplicity of
actors to the visions and objectives of the organisation.

(Frederick, O’Connor and Kuratko, 2013)

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 Three types of Social enterprises
Hybrid non-profit ventures

A non-for-profit venture but includes some degrees of cost recovery through

the sales of goods and services, as well as to target population groups of
clients who are poor or otherwise marginalised from society.

Social business ventures

While profits are generated, the main aim is not to maximise financial
returns but to grow the social venture and reach more people in need
effectively.

(Frederick, O’Connor and Kuratko, 2013)

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Value creation continuum

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