Relevance of Entrepreneuship

1. Development of managerial capabilities - one of the benefits an entrepreneur gets is to develop his managerial skill

2. Creation of organizations - which means that because of entrepreneurship, many organizations will exist

3. Improving standard of living - means that entrepreneurship can lift up the economic status

4. Means of economic development - not only the life of the entrepreneur is improved but also the society where the business is located

Concept of entrepreneurship

• entreprende - to undertake; French word where entrepreneurship is derived from

• entrepreneur - the one who creates the enterprise

• entrepreneurship - the process of creating an enterprise

What is entrepreneurship?

• Entrepreneurship - the appropriation and management of human physical and financial resources for the purpose of creating, implementing, and developing solutions that meet the needs of the individual or society

  • Entrepreneurship is also the act of creating a business or businesses while bearing all the risks with the hopes of making a profit

  • Entrepreneurship - is also a very important component of a capitalist economy; it thrives in an economic system that supports innovation and hard work

• Economic development - a scheme aimed at improving the living standards of the nation’s citizenry

  • To achieve ED, the ff. elements are necessary:

    1. Human resources - labor supply, education, discipline, motivation

    2. Natural resources - land, materials, fuel, climate

    3. Capital formation - machines, factories, roads

    4. Technology - science, engineering, management, entrepreneurship

Entrepreneurship in a modern business

• Entrepreneurship transforms the world by solving big problems like bringing social change or creating an innovative product that challenges the status of how we live our lives on a daily basis

What is an entrepreneur?

• Entrepreneur - a person who undertakes entrepreneurial activities. They:

  1. Identify an economic need

  2. Considers offering a business solution

  3. Proceeds to assemble the resources required

  4. Assumes the risk of either succeeding or playing

What are the tasks of an entrepreneur?

1. Provide products and services for customers and producers

2. Provide employment

3. Provision of payment of taxes

4. Provide for supplier’s products and services

5. Provide training facilities for future entrepreneurs

What are the common traits of a successful entrepreneur?

1. Risk-takers

2. Good listeners and learners

3. Original thinker

4. Feel competent and capable

5. Set high goals and enjoy working toward them

6. Take responsibility for their actions

7. Patience

8. Self-discipline

What are the core competencies of entrepreneurship

• Core competencies - an entrepreneurship’s traits or personal attributes rather than physical assets or financial resources

• There is NO definite profile on who can become a successful entrepreneur

• Entrepreneurs come in various ages, gender, race, and social class; they even differ in education and experience

• However, research suggests that the most successful entrepreneurs share certain personal attributes

EMPRETEC

• EMPRETEC Programme of UNCTAD - the promotion of entrepreneurship and MSMEs to facilitate sustainable development and inclusive growth has identifies 10 key areas competencies related entrepreneurial development

• Emprendonderes and tecnologia

Personal Entrepreneurial Competencies (PECs)

• First Cluster: Achieving Behaviors - traits that are directly related to the entrepreneur’s desire to be an achiever in the field of entrepreneurship; does not settle for mediocrity but instead aspires for quality.

Traits under Achieving Behaviors

1. An Opportunity seeker and initiative

2. Persistent

3. Committed

4. Efficient and quality-oriented

5. A risk taker

• Second Cluster: Planning Behaviors - traits that support the achieving behavior; a plan serves as a blueprint to be undertaken by the entrepreneur.

Traits under Planning Behaviors

1. A goal-setter

2. An information seeker

3. Systematic in planning and monitoring

• Third Cluster: Power Behaviors - traits that reflect the degree of the interpersonal relations maintained by successful entrepreneurs in the community; ability to maintain the highest degree of interrelationship in the business community and influence others over his/her line of reasoning.

Traits under Power Behaviors

1. A persuasive and positive networker

2. Independent and self-confident

Self-Employed - working for oneself as a freelancer or the owner of a business rather than for an employer

Wage Employment - people who are employed to earn income through wages or salaries given by their employers