ENTH311

MR. ROMAN BENITO

OVERVIEW OF ENTREPRENEURSHIP IN 3. Profit Potential - Profit potential is

the possible rate of return and reward
TOURISM AND HOSPITALITY
to the investor for taking the risk of
Entrepreneurship is all around us, turning an innovation into a real
from the recent emergence of business enterprise.
Instagrammable restaurants and Absence of this, the activities of the
cafes, farm attractions, fast-growing entrepreneur will remain a
lodging, transportation, retail, and hypothetical and imaginary leisure
manufacturing industries and as activity
well as service-providers of leisure,
recreation and entertainment needs 4. Risk Bearing - Risk is an inherent
of the tourist. Thus, and inseparable element of
entrepreneurship is the driving force entrepreneurship. An entrepreneur Entrepreneurship in Hospitality
works under uncertainties and
behind any productive business and Industry
society. assumes the uncertainty of future and
also the possibility of loss. Above all, Entrepreneurship is a catalyst of growth,
What is Entrepreneurship? an entrepreneur must have
creativity and opportunities in these
markets and is critical to satisfying the
There is a plethora and evolving persistence to see that his endeavors
rapidly changing demands of the
definitions of the term bear fruit. In the interim period such as
customers in hospitality, entertainment,
"entrepreneurship", and they are cited the time gap between the recreation, sports and tourism industry.
below. development and execution of the
Refers to the economic activity of a
project and its results, an entrepreneur Vis-a-vis with Tourism industry, the
person who starts, manages and
should assume the risk hospitality industry is facing some of
assumes the risk of a business
enterprise. (Medina, 2015) the most dramatic shifts in its history
The ability and willingness to develop, 5. Implies Growth - One major from changing costumers to digital or
plan and maintain a business venture difference between entrepreneurial online bookings, to new industry
along with any of its risks for profit. ventures and other small businesses entrants including such Airbnb evolving
It is an act of starting or running one's travel habits, bringing new challenges
is the emphasis on growth.
own business or a willingness to be and various business opportunities to
Entrepreneurship is about growing
innovative and a desire to work in its'
business and pursuing opportunities entrepreneurs in the world of
own business.
as they arise. It's not about standing hospitality. A changing landscape,
It is a pursuit of a solution which aims
to do something better than ever still or being content to stay in one coupled with a new investment
before and to pursue constant market or with one product. opportunity, suggests that the role of
improvement. (Hutchinson, 2019) entrepreneurship is at the core of the
6. Based on Principles, not on growing industry.
Nature and Characteristics of Intuition:
Entrepreneurship is therefore
necessary in order to solve these
Entrepreneurship - Entrepreneurship is not based on
obstacles in these markets and to do
inner feeling or intuition. Rather, it is
this the consequences are different
1. An Economic and Dynamic Activity - developed through certain principles.
forms of innovation. Overall, the
Entrepreneurship is an economic activity It is improved with the knowledge of
because it includes the formation and successes and failures of the
economics, sociology, psychology,
management of a business with a view to hospitality industry point to the need for
and various other subjects.
creating value and profit by ensuring entrepreneurship as a key factor in the
maximum use of scarce resources. Role of Entrepreneurship in future of the industry.

2. Related to Innovation -
Tourism Scope of Entrepreneurship
Entrepreneurship involves an ongoing Enterprises play a key role in tourism and
1. It has the capacity to stimulate the
search for new ideas. Entrepreneurship hospitality, with increased interest in the
economy.
empowers entities to continuously development of small businesses. Tourism
- New and improved products, services
evaluate existing modes of business business can be set up in any field related
or technology from entrepreneurs permit
operations so that more efficient and to the service industry, such as hotel
business, tour operations, travel agency, the emergence of new markets and the
effective systems can be developed and
shop assistants, adventure facilitators, acquisition of new wealth. In addition,
tested. In other words, innovation is a
accommodation and any other needs for the increased employment and higher
continuous effort for collaboration of
tourism industry. Tourism and travel are productivity contribute to better national
performances in businesses.
significantly important since it provides income through higher tax revenues and
economic activities in most countries. increased government spending.
 5. Create New Venture. Once all the
Scope of Entrepreneurship 1. Identify the opportunity.
resources are gathered, creation and
It is considered as the first step to be
2. It enables great societal change. establishing of the new venture
taken as an entrepreneur. Listing of
—Through providing innovative goods ideas based on wants, needs, problems successfully. This requires enthusiasm,
and services, entrepreneurs gain and challenges that are not dealt or met perseverance, patience and passion from
independence from tradition and through effectively. the entrepreneur.
dependency on outdated programs and
technologies. This results in a better 2. Establish a vision. It involves 6. Change/Adapt with Time. It pertains to
quality of life, better morality and greater generation of ideas based on creativity the process of monitoring and upgrading
economic freedom. the organization competitively as the
to develop and new and innovative
market condition changes. This requires
ways to satisfy a need and innovative
3. It can fulfil a need. availability of funds to make changes and
ways to solve a problem. Only the best
- Entrepreneurship provides an adaptability of its manpower towards
and most feasible ideas will be selected
opportunity to achieve what makes life growth.
and narrowed down to one best. It is
worth living to the great majority of an
individual's life. Through entrepreneurs'
when opportunities will be assessed Roles of Entrepreneurship in
based on its perceived value of the
viable business idea combined with product or service risks and rewards Economic Development of a
available resources will turn these into a associated with the products or services Country
new product or service that serves a and the (c) differential advantage in its
need or purpose to every human being. competitive environment. Entrepreneurship, as we know, is the
gateway to new innovations that bring
4. It generates revenue for entrepreneurs. 3. Persuading Others. The entrepreneur our society to momentum and growth.
- As the business grows, the same goes forms a team or a group of individuals
with entrepreneur his earning and this 1. Wealth Creation and Sharing: Upon
who will work together that will aid in
signifies as the perks of being an establishing up a business company,
setting the idea into reality. It may be
entrepreneur. Once the entrepreneur family members, friends, colleagues, entrepreneurs spend their own money
earn it can continue to provide jobs, pay financers, or partners. and raise capital (in the form of debt,
taxes and improve the life of the equity, etc.) from investors, creditors
community benefitting from 4. Gathering Resources. It is the and the public. This mobilizes
entrepreneurs. process wherein the use of business collective resources and enables
plan is important in order to attract people to profit from the growth of
5. It provides jobs and develops the investors, capitalists, financial companies and through enterprises.
community. institutions, and promoters. The main This type of redistributed capital that
- Economist perceived that goal in this process is to identify other
entrepreneurship is an engine for job results in the production and sale of
resources to assist in turning the
creation and considered as a factor for wealth is one of the basic imperatives
business idea into a viable venture.
"inclusive growth of one country. and objectives of economic
Globally, entrepreneurs and small and development.
Resources are categorized below:
medium-sized enterprises (SMEs) are
widely viewed as essential to national
a. Financial Resources: Personal 2. Create Jobs: Entrepreneurs are, by
economies, especially because they nature and purpose, are job creators,
savings, loans, government institutions,
generate a higher share of total workforce rather than job-seekers. The basic
borrowed money from friends and
than other employers. Moreover, explanation is that when you become
family, and partnership.
inclusive growth happens when economic
an entrepreneur there is one less job-
stability is long-term, sustainable, and
b. Operating Resources: These refer to seeker in the market, and then you
reaches a wide range of populations.
tangible and intangible. have jobs to many other job-seekers.
b.1 Tangible = land, building, raw This kind of job creation by new and
materials, machines, office equipment existing enterprises is again one of the
THE PROCESS OF ENTREPRENEURSHIP and transportation. These can be
fundamental objectives of economic
bought, rented or lease out,
development.
b.2 Intangible company's image,
operating procedures, and
management.
3. Balanced Regional Development:
b.3 Human it pertains to the number of Growth of businesses and industries in
manpower needed, skills they these regions corresponds to
possessed, and organization culture. improvements to facilities such as
b.4 Information an effective and clear enhanced infrastructure and rail links,
information management system is airports, reliable electricity and water
needed in order to have timely info supplies, schools, hospitals, shopping
about customers, markets and malls and other public and private
competitors, and external environment. amenities that would otherwise not be
available.
Roles of Entrepreneurship in Barriers to Entrepreneurship DEVELOPING THE GROWTH MINDSET
Economic Development of a Country Entrepreneurship has long been
considered one of the best key OF AN ENTREPRENEUR
4. GDP and Per Capita Income: Every components contributing towards
new addition to these 36 million units Behavior Focused Strategies
advancement. In spite of this, financial
enables the use of even more resources • Methods to increase self-awareness
growth and job creation is stagnant all
such as capital, land and labor to and manage behaviors particularly
over the world. Barriers vary from one
produce products and services that economy to the other, and from
when dealing with necessary but
contribute to the country's national availability of resources. Below are the unpleasant tasks. These strategies
revenue, gross product and per capita common barriers that constitute to the include: self-observation, self-goal
income. This growth in GDP and per pursuit of entrepreneurial endeavour setting, self-reward, self-punishment,
capita income is again one of the key and self cueing.
objectives of economic development.
Self-Observation
5. Standard of Living: The improvement • A process that raises our awareness
in the standard of living for individuals in of how, when, and why we behave the
a society is yet another key objective of way we do in certain circumstance.
economic development. Entrepreneurs
also play a key role in raising the Self-Goal Setting
standard of living in a society. They do
THE MINDSET OF TOURISM AND • The process of setting individual
this not only by creating jobs, but also by
HOSPITALITY ENTREPRENEUR goals for ourselves.
developing and adopting innovations
that lead to improvements in the quality
To keep pace with emerging technologies
and evolving skill sets. people will need to
Self-Reward
of life of their employees, customers and
beflexible and adaptable, and be • A process that involves compensating
other community stakeholders.
committed to continuous growth and
Automation, for instance, which lowers ourselves when we achieve our goals.
production costs and allows higher development. Whether they work for These rewards can be tangible or
themselves or others, they will need an intangible.
production, would make the business
'entrepreneurial mindset', which can be
company more competitive, while also
defined as "a growth-oriented perspective
supplying the consumers with the same Self-Punishment (or Self Correcting
through which individuals promote
products at lower prices Feedback)
flexibility, creativity, continuous
innovation, and renewal" (Ireland et al.,
• A process that allows us to examine
6. Exports: Every growing business 2003) our own behaviors in a constructive
would inevitably want to continue with way in order to reshape these
exports in order to expand the industry The entrepreneurial mindset is composed behaviors.
to foreign markets. This is an important of the following two elements:
ingredient in economic development as Self-Cueing
The Element of Passion
it provides access to larger markets and • The process of prompting that acts as
Passion is a simple yet profoundly all-
contributes to cash inflows and links to a reminder of desired goals and keeps
the new state-of-the-art technology andencompassing narrative to describe the
your attention on what you are trying to
processes used in more advanced essence of a true entrepreneur. Passion,
is the chief driver of successful. Passion achieve.
foreign markets. Another key benefit is
is the fuel that entrepreneurs need to
that this growth will lead to more stable
keep going. Research shows that passion
ROLE OF SOCIAL ENTREPRENEURSHIP
business revenues during the recession
is a key predictor of entrepreneurs' Social entrepreneurship is all about
in the national economy.
creativity, persistence, and venture recognizing the social problems and
performance. In other words, the more achieving a social change by employing
7. Community Development: Community passionate the entrepreneur, the more entrepreneurial principles, processes and
development entails infrastructure for likely they are to succeed. operations.
training and education, healthcare and It may be a lifetime process focusing on
other government services. For the improvement of the existing
The Element of Habit
circumstances.
example, in a community, is in need of Aristotle said "We are what we repeatedly
highly skilled and educated workers to do. Excellence then, is not an act, but a
CHARACTERISTICS OF SOCIAL
encourage new businesses. If there are habit." And it's true our habits are
educational institutions, vocational powerful things. They shape our lives and ENTREPRENEURSHIP
training schools and internship define our personalities. Successful
Social Entrepreneurship meets the
programs, doing so will help create a entrepreneurs have developed habits to
needs unmet by government or the
help them achieve success over and over
pool of qualified and skilled workers. commercial markets
again. The habits entrepreneurs have
Social entrepreneurship is
require patience, consistency and
motivated by social benefit
determination.
Social entrepreneurs usually work
with, not against markets.
 CORPORATE SOCIAL RESPONSIBILITY
Corporate Social Responsibility also called
corporate conscience, corporate citizenship
etc... is a form of self regulation integrated into
a business model.

A socially responsible business monitors. and

ensures its active compliance with the spirit of
the law, ethical standards, and international
norms. The goal of CRS for a company to
take accountability for its actions and achieve
and encourage a positive impact on the
environment as well as its consumers,
ALLISON GIBSON (EP#06) employees, communities, and other
Putting Your Employees First to Serve the stakeholders.
Community Above and Beyond
What is CSR?
Allison Gibson is part owner and Operational
Corporate Social Responsibility is the
Director of Paintbox Catering and Bistro, a B
continuing commitment by business to behave
Corporation located in Toronto dedicated to ethically and contribute to economic
creating healthy and delicious food that supports a development while improving the quality of life
sustainable food economy. of the workforce and their families as well as
Allison and the Paintbox team put all of their effort of the local community and society at large.
into providing creative food offerings while striving The World Business Council for Sustainable Development
to fight poverty, promote environmental
sustainability, and build a better future. Paintbox
uses their bistro to help provide employment to
those that need it most, and with every dish they
serve they are committed to reducing their
environmental footprint. With impact at the heart of
everything they stand for, Paintbox truly hopes to
become a model to others in the food service
industry for social justice, profitability, and
sustainability
TIM LARA (EP#14) Tourism With a Purpose: Building An Eco- Tour B-Corporations
Tim Lara isthe Owner of Hawai an Padle Spors, an Eco-Tour cried Corporation located
on the island of Maui. Tim has atremendous passion and respectfor the natural lie, and
culture of Maui as well as an engine thatjust wont stop.
It was then that I started Hawaiian Paddle Sports, an eco-tour company providing
cultural and educational experiences for guests through intimate outrigger canoe tours,
kayak tours, surf lessons, and stand up paddle board lessons on Maui. All tours and
lessons are private or limited to small groups, inspiring guests to develop a deep
connection and respect for the Island of Maui.
In 2015, Hawaiian Paddle Sports proudly became a Certified B Corporation. We are
the first company on Maui and one of only seven statewide to receive this prestigious
designation, which demonstrates our leadership in sustainable practices, support of
our local community, and strong employee