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Entrep CHPTR4

The document discusses the roles and tasks of entrepreneurs and managers at different stages of a business venture's development. It notes that entrepreneurs focus on developing the initial business idea, securing funding and resources, and getting the business operational in the early stages. Managers become more involved as the business grows and requires ongoing structured management, with entrepreneurs stepping back as managers take on more responsibility in later growth and stable stages. The personality traits and motivations that drive individuals to become entrepreneurs are also outlined.

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Jed Demegillo
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© © All Rights Reserved
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Download as PPTX, PDF, TXT or read online on Scribd
121 views

Entrep CHPTR4

The document discusses the roles and tasks of entrepreneurs and managers at different stages of a business venture's development. It notes that entrepreneurs focus on developing the initial business idea, securing funding and resources, and getting the business operational in the early stages. Managers become more involved as the business grows and requires ongoing structured management, with entrepreneurs stepping back as managers take on more responsibility in later growth and stable stages. The personality traits and motivations that drive individuals to become entrepreneurs are also outlined.

Uploaded by

Jed Demegillo
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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CHAPTER 4

ENTREPRENEURIAL
PERSONALITY
THE ENVIRONMENT AS A FACTOR

Entrepreneurships will survive and grow only in economic


environments of free enterprise. In terms of support to
entrepreneurships, economic environments differ from place
to place. To facilitate discussion, economic environments
may be classified as:
Fully supportive of entrepreneurships;
Moderately supportive of entrepreneurships; and
Not supportive of entrepreneurships
THE
TYPES OF ECONOMIC
ENTREPRENEURSHIP’S
ENVIRONMENT
TASK

Those fully supportive of easy


entrepreneurships

Those moderately
supportive of less easy
entrepreneurships

Those not supportive of


hard
entrepreneurships
THE ENTREPRENEUR’S PERSONALITY
 Every person has a personality that is unique and different from others. Each
personality type has a corresponding type of a job that fits it. A certain
personality, however, may fit in more than one type of job, although the
level of fitness will be different with each job.

ENTREPRENEUR’S ENGINEER’S
PERSONALITY TYPES TEACHER’S JOB
JOB JOB
A Perfect fit Moderate fit Unfit
B Unfit Perfect fit Moderate fit
C Moderate fit Unfit Perfect fit
WHAT IS PERSONALITY?

1. REALISTIC This individual prefers activities involving aggressive behaviour and physical exertion
requiring skill, strength, and coordination. Examples: farming and mining

2. INVESTIGATIVE This individual prefers to be analytical, curious, methodical, and precise. Examples:
crime investigator and arson investigator

3. ARTISTIC This person is expressive, non-comforting, original, and introspective. Examples:


songwriter and novelist

4. SOCIAL This person enjoys working with and helping others and purposefully avoids
systematic activities involving tools and machinery. Examples: social workers

5. ENTERPRISING This person enjoys verbal activities to influence others and to attain power and
status. Examples: manager and entrepreneur

6. CONVENTIONAL This person enjoys the systematic manipulation of data, filing of records, or
reproducing materials. Examples: accounting, finance
CHARACTERISTICS OF ENTREPRENEURS
 DRIVE- success in entrepreneurship becomes possible when the entrepreneur is self-
motivated enough to pursue his chosen course without relenting even in the face of
adversity.
 THINKING ABILITY- the entrepreneur’s job involves solving problems and making decisions.
When he finds the correct solutions to problems that confront and then makes decisions
that are implemented, he comes closer to realizing his goals.
 HUMAN RELATIONS ABILITY- 3 types of persons will determine the survival and growth of
business firms: (1)the customer,(2)the employee, and(3)the third party with interest in the
firm.
 The customer makes the decision whether to patronize the firm or not. His decision, however, will
depend on what he thinks of the firm.
 The employee can be productive and loyal to the firm. He can help avoid production delays and
shortages, wasteful consumption of company resources, dissatisfied customers and the like. He
can be an asset depending on what his superior do to him.
 Third parties with various interests regarding the firm can also be made to be more cooperative
and accommodating. This will depend on how the company relates to them.
 ABILITY TO COMMUNICATE- community skills is very important characteristic an entrepreneur must
have if success is expected. The ability to understand and be understood will makes it easier for the
entrepreneur to transact business with customers, bankers, and government officials.
 TECHNICAL KNOWLEDGE- operating an entrepreneurship requires the performance of major and
minor tasks.
 REASONABLE RISK-TAKER- when a person starts a new venture, he has already begun to assume the
risk of business failure. Entrepreneurs, however, normally do not assume unreasonable risks.

EXPECTED LEVEL OF
TYPES OF RISK TAKER LEVEL OF RISK TAKEN
BENEFITS

Salaried employee low Low


Entrepreneur Moderate Moderate
Gambler high High
 SELF CONFIDENT- a good person achieve much unless he has sufficient confidence in
himself. In any undertaking including entrepreneurship, a person’s belief in his ability leads
him to actual performance and eventual success.
 GOAL SETTER- goals are very useful motivation tools, especially those related to
accomplishing the objectives of the entrepreneurs. A goal performs the following functions:
 It directs one’s attention to a specific target.
 It encourages one to exert effort toward achieving something specific;
 It encourages persistence; and
 It fosters the creation of strategies and action plans.
 ACCOUNTABLE- the success of an enterprise will depend much on the willingness of
subordinates to comply with the wishes of the entrepreneur. Compliance can be expected
if the entrepreneur is accountable enough to take responsibility for whatever happens to
the firm.
 INNOVATIVE- a free enterprise economy like ours allows business enterprises to flourish. This will
depend, however, on how well the public is convinced to patronize them. Buyers will have to be
persuaded to buy from the entrepreneur’s firm rather than from competitors. The innovate
entrepreneur, however, will be able to handle this problem.
 Innovation may be the only way the entrepreneur can achieve the ff:
 Penetrate the market;
 Improve employee turnover;
 Reduce manufacturing cost; and
 Improve collection rate
 WHAT MOTIVATES PEOPLE TO BECOME ENTERPRENEURS- not everyone desires to be an entrepreneur.
Those who do, however, are motivated by any or all of the ff:
 Desire to be one’s own boss;
 Desire for financial rewards;
 Desire to create one’s own job security; and
 Desire to improve one’s quality of life.
 DESIRE TO BE ONE’S OWN BOSS- there are times when an employee sees some good
opportunities for his employer’s business. When he recommends action to be undertaken
and is ignored, the employee may just proceed to take the opportunity and organize his
own business.
 DESIRE FOR FINANCIAL REWARDS- getting employed is the desire of most people. This is
understandable because many people want sure monthly income.
 DESIRE TO CREATE ONE’S OWN JOB SECURITY- some employees feel that their jobs are not
secure. They think they could be fired for a variety of reasons.
 DESIRE TO IMPROVE ONE’S QUALITY OF LIFE- oftentimes, employees do not have control over
their work schedules. As a result, they could not fulfil some important family responsibilities.
 THE ENTERPRENEUR AND THE MANAGER DISTINGUISHED- the terms “entrepreneur” and
“manager” are sometimes used interchangeably. Although both jobs are useful to the
economy, each performs distinct functions.
ACTIVITY EMPHASIS OF NEW VENTURES

ENTERPRISE STAGE FACTOR EMPHASIS

I. Prestart-up Business idea full


Human resource None
Capital None

II. Start-up Business idea None


Human resource Limited
Capital Limited

III. Early growth Business idea None


Human resource Escalating
Capital Escalating

IV. Later growth Business idea None


Human resource Full
Capital Full

V. Stable growth Business idea None


Human resource Full
Capital full
THE ENTREPRENEUR’S TASK VS. THE MANAGER’S TASK

ENTERPISE STAGE ACTIVITY ENTREPRENEUR’S MANAGER’S


INVOLVEMENT INVOLVEMENT
I. Prestart-up Feasibility of an idea, product or full none
service, among others, is scrutinized.

II. Start-up Business is formed, necessary capital full none


is generated, facilities and
equipment are purchased,
prototype of products are built,
market is tested.
III. Early growth With limited resources, selling is full none
undertaken in limited markets.
IV. Later growth Structured management, long-term declining partial
financing, and facilities planning are
established
V. Stable growth With bigger resources, recurring none full
sales and profits, selling is
undertaken in bigger markets.

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