Introduction to

Entrepreneurship
Businesses are the backbone of the economy. Entrepreneurs play an important role in developing the
economy through providing the needed products and services including the solution to the problem of
unemployment.

Entrepreneurship is encouraged by the economy because it can provide a lot of opportunities for the
unemployed people. It will increase per capita income, improve standard of living and increase individual
savings, provide revenue to the government in the form of income tax, value added tax, export duties,
import duties, and balanced regional development.

• Entrepreneurship

- Is an integrated concept that permeates an individual’s business in an innovative manner.

- A dynamic process of vision, change, and creation.

• Entrepreneur

- is derived from the French entreprendre, meaning “to undertake.”

BUSINESSMAN VS ENTREPRENEUR

Businessman

- A businessman is someone who sets up a business with an existing idea offering products and
services to the customers.
- Starts a business from an existing idea or concept
- Has many business rivals
- Focuses on competition
- Is always busy on his business “busy-ness
- Don’t have enough time for his family and personal life
- His business gives him a living
- Traditional
- Stays safe
- Worried
- Profit oriented
- Has an active income or profit
- Hire people to increase business productivity
- A market player
- Has not yet achieved financial freedom
- Only gives importance to a part of the business world (atomistic)

Entrepreneur

- An entrepreneur is a person who starts an enterprise with a new idea or concept, undertaking
commercial activities.
- Starts a business from his own unique idea or concept
- His business rival is himself
- Focuses on cooperation
- Is only busy in preparing his new enterprise
- Have a lot of time for his family and personal life
- He gives life to his business
- Innovative and revolutionary
- Risk taker and accountable
- Excited
- People (i.e., employee, customer, public) oriented
 - Has a passive income or profit
- Hire people to give them productivity
- A market leader
- Has achieved financial freedom
- Gives importance to the business world as a whole (holistic)

RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION

1. Development of Managerial Capabilities - this means that one of the benefits an entrepreneur gets is
to develop his managerial skills.

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

3. Improving Standard of Living - this means that entrepreneurship can lift up the economic status of an
individual.

4. Means of Economic Development - this means that not only the life of the entrepreneur is improved
but also the society where the business is located.

Concept of Entrepreneurship

The word “entrepreneur” was derived from the French verb enterprendre, which means “to undertake.”
This is pinpointing to those who “undertake” the risk of enterprise. The enterprise is created by an
entrepreneur and the process is called “Entrepreneurship.”

Entrepreneurs are innovators. They are willing to take the risks and generate unique ideas that can
provide profitable solutions to the needs of the market and the society.

Factors Affecting Entrepreneurship

1. Personality Factors which include:
a. Initiative - doing things even before being told.
b. Proactive - which means he can classify opportunities and seize it.

c. Problem Solver - which means he can retain good relations with other people.

d. Perseverance - meaning he will pursue things to get done regardless of challenges.

e. Persuasion - means that he can entice people to buy even if they don’t want to.

f. A Planner - he makes plans before doing things and does not fail to monitor it.

g. Risk-taker - which means that he is willing to gamble but he will calculate it first.
2. Environmental Factors which include political, climate, legal system, economic and
social conditions and market situations.

Common Competencies in Entrepreneurship

1. Decisive - an entrepreneur must be firm in making decisions.
2. Communicator - an entrepreneur must have a convincing power.
3. Leader - an entrepreneur must have the charisma to be obeyed by his employees.
4. Opportunity seeker - an entrepreneur must have the ability to be the first to see
business chances.
5. Proactive – an entrepreneur can control a situation by making things happen or by
preparing for possible future problems.
6. Risk Taker – an entrepreneur has the courage to pursue business ideas.
7. Innovative - the entrepreneur has big business ideas and he does not stop improving
and thinking of new worthwhile ideas for his business.

Types of Entrepreneurs
1. Innovative Entrepreneurs - They are those who always make new things by thinking of
new ideas. They have the ability to think newer, better and more economical ideas.
2. Imitating Entrepreneurs - They are those who don’t create new things but only

follow the ideas of other entrepreneurs.

3. Fabian Entrepreneurs - They are skeptical about changes to be made in the
organization. They don’t initiate but follow only after they are satisfied.
4. Drone Entrepreneurs - They are those who live on the labor of others. They are die-
hard conservatives even ready to suffer the loss of business.
5. Social Entrepreneurs - They are those who initiate changes and drive social innovation
and transformation in the various fields such as education, health, human rights,
environment and enterprise development.