UNDERSTADING TO

ENTPREPRENEURIAL
MANAGEMENT
Ms. Judichel B.
Mollejon
WHAT IS
ENTREP. MGT.
Entrepreneurial management is the concept
of utilizing the creative and innovative
abilities, skills and expertise to efficiently
open and manage a startup organization. It is
a means of solving a mass problem through a
unique and profitable business solution.

An entrepreneur is always seen as a problem-

solver. He/she considers a macro problem and
finds out an innovative solution to it.
• Well, as we know that people would pay fairly if
the business idea provides a solution to their
crucial issues, entrepreneurial management is
highly fruitful.
There are three main roles of entrepreneurial
management:
Innovation - Experimenting, changing, transforming and
revolutionizing entrepreneurial activities is an important role of
entrepreneurial management.

Job Creation. This is another aspect that states the importance of

entrepreneurship. New start-ups may require new staff, so the
outcome will be much more beneficial for unemployed applicants.

Growth and Profitability. Entrepreneurial management focuses on

growth and profit as well as they are important components for any
business to be successful
Elements of
Entrepreneurial
Management

Entrepreneurial management is a means creatively

finding a solution to a specific problem. It stands
over the following four pillars:
 • Pain or Problem: Without a problem, no innovation is
possible. Thus, the entrepreneur identifies an unsolved issue
for which the consumers are ready to pay a certain amount.

• Idea: To resolve the consumers’ pain, the entrepreneur

develops a suitable, profitable, feasible and enviable plan.

Four Pillars • Experiment: The idea so worked out needs to be tested first,
thus experiment is another crucial element of entrepreneurial
management.

• Solution: If the experiment succeeds, then it becomes the

solution and a profitable business idea for the entrepreneur.
Entrepreneurial
Management Process
A business can be identical to many
others. However, its effective
management makes it stand apart from
the rest.
BASIC
ENTREPRENEURIAL
CONCEPT
Here in the Philippines, entrepreneurship is
viewed as important to empowering the
poor, enhancing production, and as an
impetus to innovation. The 1987 Philippine
Constitution recognizes entrepreneurship as
an engine of economic growth. Article XII
Section 1 highlights the role of private
enterprises in supporting equitable
distribution of income and wealth, sustaining
production of goods and services and
expanding productivity, therefore raising the
quality of life.
I welcome you all to become the reason for
the economic growth of this country!
THE MANAGER VS. THE
ENTREPRENEUR

• Key Difference: An Entrepreneur is

basically a person who set up their
own business. A manager is a person
who manages things. The primary
difference between an entrepreneur
and a manager is that while an
entrepreneur works for themselves,
a manager works for someone else.
THE MANAGER VS. THE
ENTREPRENEUR
Meaning of Entrepreneur
Entrepreneurs establish a new organisation by
assembling inputs, i.e., labour, land and capital, for
production purposes. They assume risk and business
uncertainty to achieve growth and profit of the
business venture by combining resources and
identifying new opportunities to capitalise on them.
They innovate new business processes and ideas. They
are persons responsible for building an organisation
and taking business risks for profits.

Example: An entrepreneur is the company’s CEO who

establishes the company and takes business risks to
gain profits.
THE MANAGER VS.
THE ENTREPRENEUR

Meaning of Manager
Managers are responsible for the administration and
management of a group of people or a department of the
company. Their day-to-day job is to manage employees
and ensure the smooth running of the organisation. They
must possess similar qualities of an entrepreneur, like
accountability, leadership, decisiveness, etc. They must
also have qualities such as empathy and warmth. They
may direct supervisors who will command workers or
directly command workers. They are responsible for
supervising subordinates, who report to and work under
them.

Example: A manager is the head of a department in a

company, such as a director or a team leader, who
administers the group of people under him/her and
ensures the company runs smoothly.
 THE MANAGER VS. THE ENTREPRENEUR
Particulars Entrepreneur Manager

It refers to persons who establish a company or enterprise and takes a They are individuals responsible for administering and controlling a group of
Meaning
financial risk to get profits. people in the company or enterprise.

Position in the They are visionaries who convert an idea into a business. They are the
They are the employees of the company.
company owners of the company.

Focus They focus on business startups. They focus on ongoing operations.

Risk They bear all financial and other risks. They do not bear any risks.

Focus They focus on starting the business and expanding the company. They focus on the daily smooth functioning of the company.

Motivation Their key motivation is the achievements of the company. Their motivation comes from the power that comes with the position.

Reward Their reward is the profit they earn from the company. Their reward is the salary they draw from the company.

Their approach to every problem is formal, and they take a scientific

Approach They can be casual in their role and have an informal approach.
approach.

Nature of decisions They are risk-takers. They take calculated risks to drive the company. They are risk-averse. Their job is to maintain the status quo of the company.

Decision making The decisions tend to be intuitive. The decisions are calculative.

Specialisation They do not need to be specialised in any particular trade. They are trained to perform tasks and are specialists in their domain.
 An entrepreneur and a
manager are two different
persons in a
company/organisation.
While managers are
concerned with managing
the available resources,
entrepreneurs focus on
capitalising on
opportunities.
Question: What
characteristic do you
possess that belongs to
a manager and to an
Entrepreneur.
ETHICS AND SOCIAL
RESPONSIBILITY OF
ENTREPRENEUR
An enterprise must earn profits for its own
survival, for expansion, for bearing the risks
and finally for the prestige of its
management. But profit cannot be the sole
objective of the entrepreneur. It is a means
and not an end. No enterprise can last long
unless along with earning profits, it continues
to fulfil its obligations to the society. The
ultimate objective of every enterprise has to
be the good of the people. Business must be
run by the people through the people and for
the people. An entrepreneur must take risks
with his or her own capital in order to sell
and deliver products and services while
expending greater energy than the average
businessperson in order to innovate.
• An entrepreneur is very much linked with society.
Since any venture owes its existence to society, it
has to function under the overall control and
discipline of the society. Any business, which is
injurious to any segment of the society, can neither
be tolerated nor allowed to continue. Every
enterprise is required to perform and satisfy certain
obligations which it owes to the society and the ETHICS AND SOCIAL
performance of which is essential for its own
survival and the well-being of the society. It is the RESPONSIBILITY OF
obligation of an enterprise which it owes to the ENTREPRENEUR
different segments of the society that determine its
objectives. Besides earning profit, an entrepreneur
has to satisfy the requirements of various other
groups of people
ETHICS AND SOCIAL RESPONSIBILITY
OF ENTREPRENEUR
• Faced with daily stressful situations and other difficulties, the possibility exists that the
entrepreneur will establish a balance between ethical exigencies, economic expediency, and
social responsibility, a balance that differs from the point at which the general business
manager takes his or her moral stance. How much and what type of social responsibility an
organization should pursue has been a topic of heated debate for a number of years. Social
responsibility is the obligation of organizational decision makers to act in ways that
recognize the interrelatedness of business and society. Social responsibility assumes the
existence of stakeholders, individuals or groups of individuals who have a stake in or are
significantly influenced by an organization’s actions and who, in turn, can influence the
organization.
• According to H.R. Brown, an entrepreneur, today,
has an obligation ‘to pursue those policies, to make
those decisions or to follow those lines of action
which are desirable, in terms of the objectives and
values of the society. The entrepreneur, therefore,
has to include his social obligations and social
values as inputs into the decision and action ETHICS AND SOCIAL
process, along with organizational, economic, RESPONSIBILITY OF
technological and other relevant values and
variables. According to Koontz O’ Donnell “Social ENTREPRENEUR
responsibility is the personal obligation of everyone
as he acts for his own interests, to assume that the
rights and legitimate interests of all others are not
impugned.”
• The traditional view of social responsibility
was that organizations existed solely to
serve the interests of one stakeholder
group: Stockholder. However, the
traditional - and purely economic - view of ETHICS AND SOCIAL
social responsibility has given way to a RESPONSIBILITY OF
belief that organizations have larger social ENTREPRENEUR
role to play and a broader constituency to
serve than stock holders alone.
QUESTION

• As you can observe in your

community what ethical conduct
should an entrepreneur uphold and
what do think is their social
responsibility in the community and
to others. (All content must be base
in you observation to the
community)
ROLE OF ENTREPRENEUR
IN ECONOMIC
DEVELOPMENT

• The entrepreneur is the key to the

creation of new enterprises that
energize the economy and rejuvenate
the established enterprises that make up
the economic structure.
Entrepreneurs initiate and sustain the process of
economic development in the following ways:

Improvement in Per Capita Income -

Capital Formation - Entrepreneurs
Entrepreneurs locate and exploit
mobilize the idle savings of the public
opportunities. They convert the latent and
through the issues of industrial securities.
idle resources like land, labor and capital
Investment of public savings in industry
into national income and wealth in the
results in productive utilization of national
form of goods and services. They help to
resources. Rate of capital formation
increase net national product and per
increases which is essential for rapid
capita income in the country, which are
economic growth. Thus, an entrepreneur is
important yardsticks for measuring
the creator of wealth.
economic growth.
Entrepreneurs initiate and sustain the process of
economic development in the following ways:

Balanced Regional Development -

Generation of Employment - Entrepreneurs
Entrepreneurs in the public and private sectors
generate employment both directly and
help to remove regional disparities in economic
indirectly. Directly, self-employment as an
development. They set up industries in
entrepreneur offers the best way for
backward areas to avail various concessions
independent and honorable life. Indirectly, by
and subsidies offered by the central and state
setting up large and small scale business units
governments. Public sector steel plants and
they offer jobs to millions. Thus,
private sector industries by Modis, Tatas, Birlas
entrepreneurship helps to reduce the
and others have put the hitherto unknown
unemployment problem in the country.
places on the international map.
Entrepreneurs initiate and sustain the process of
economic development in the following ways:
Improvement in Living Standards - Entrepreneurs set up
industries which remove scarcity of essential commodities and
introduce new products. Production of goods on mass scale
and manufacture of handicrafts, etc., in the small scale sector
help to improve the standards of life of a common man. These
offer goods at lower costs and increase variety in consumption.

Economic Independence - Entrepreneurship is essential for national self-

reliance. Industrialists help to manufacture indigenous substitutes of
hitherto imported products thereby reducing dependence on foreign
countries. Businessmen also export goods and services on a large scale
and thereby earn the scarce foreign exchange for the country. Such import
substitution and export promotion help to ensure the economic
independence of the country without which political independence has
little meaning
Entrepreneurs initiate and sustain
the process of economic
development in the following ways:
• Backward and Forward Linkages- An entrepreneur
initiates change which has a chain reaction. Setting
up of an enterprise has several backward and
forward linkages. For example- the establishment of
a steel plant generates several ancillary units and
expands the demand for iron ore, coal, etc. These
are backward linkages. By increasing the supply of
steel, the plant facilitates the growth of machine
building, tube making, utensil manufacturing and
such other units. Entrepreneurs create an
atmosphere of enthusiasm and convey a sense of
purpose. They give an organization its momentum.
Entrepreneurial behavior is critical to the long term
vitality of every economy. The practice of
entrepreneurship is as important to established
firms as it is to new ones.
 • Question: During this
pandemic, what do you
think is the role of an
QUESTION entrepreneur in uplifting the
economy of the country?
Write in 1 to 3 paragraphs.
THE NATURE OF ENTREPRENEURSHIP
Environment
Risk Bearing Ability to
A Lifestyle Oriented
Spirit Innovate
Activity

Practice-
Universal Motivational Creation of
Based on
Activity Activity Resource
Knowledge

Creative
Activity
THE NATURE OF ENTREPRENEURSHIP

Management is the It is based on

Result of Different Business Oriented
Tool of Principles, Not on
Changes Attitude
Entrepreneurship Intuition

Process of
Result Oriented Personality It is not a Personality
Professional Activity
Behavior Development and Trait but a Behavior
Role Transformation

Equal Essential for

all Businesses and
Economics
 • List down at least 5
pros and cons of an
entrepreneurship base
Question: on your learning and
observation