ENTREP REVIEWER • The scholars who provided the definition

for entrepreneurship are largely

STEM 12 CURIE
influenced by their own individual
personal beliefs.
INTRODUCTION TO • The entrepreneurial models introduced
ENTREPRENEURSHIP by scholars are predominantly
influenced by the prevailing economic
What is Entrepreneurship? situations during specific periods in
• It’s the art of observing correct practices history.
in managing and operating a self-owned • The frameworks and methodologies of
and wealth-creating business enterprise research on entrepreneurship are highly
by providing goods and services that are dependent on the theories and the
valuable to the customers. contexts of the research endeavors.
• Entrepreneurship refers to an individual
or a small group of partners who strike
out on an original path to create a new JOSEPH SCHUMPETER
business.
Joseph Schumpeter, an Austrian economist,
• pursuits often involve innovation. and political scientist, emphasized the
significance of product innovation,
ENTREPRENEURS’ VISION marketing, and production methods. He
To be a company that inspires and fulfills uniquely characterized entrepreneurs as
your curiosity. individuals with distinct social attributes,
noting that only a few among the population
ENTREPRENEURS’ MISSION can be considered true entrepreneurs. While
To reimagine commerce in ways that build a some scholars supported Schumpeter's
more fulfilling and lasting world. We are views, others disagreed. Various sources,
building a human, authentic and community- including books and research on
centric global and local marketplace. entrepreneurship, offer diverse definitions of
the term. To avoid confusion, this lesson
provides an operational definition based on
OVERVIEW OF THE DEFINITION the concept's ultimate objective and
expected future direction. The formulation
• There’s is no universally accepted of this definition takes into account the
definition of entrepreneurship, even various activities of small businesses in the
among universities and colleges offering Philippines.
entrepreneurships program in the
Philippines and abroad. Here are some
reasons why: Ordinary small businesses in the Philippines,
• Different views and theories have been managed by individuals who don't embrace
developed in the field of entrepreneurial concepts, are widespread
entrepreneurship. across various locations. These businesses,
whether simple stalls or pushcarts, serve as a - Additionally, it can provide extra
practical means for Filipino families to stability and a better quality of life to the
supplement their income. However, opening community.
such businesses doesn't automatically make • Boosts Standard of Living
the owners entrepreneurs; they are - If you don’t know, the living standards
businesspeople. Many of these owners may are calculated based on the consumption
not even be familiar with the term of goods and services in a certain time
"entrepreneurship" and view their ventures by a household. It greatly depends on the
as a livelihood source rather than a strategic presence of diversified units.
endeavor. Unfortunately, a significant - So, there are great types of products
number of these ordinary small businesses provided by entrepreneurship. On top of
struggle to progress and, in some cases, face that, they increase the income of
bankruptcy and collapse over time. individuals who work for them.

THE IMPORTANT ROLE OF SKILLS ENTREPRENEURS’ MUST

ENTREPRENEURSHIP HAVE
The role of entrepreneurship in the 1. Good Communication Skills
development of an economy of a nation is
Business owners and entrepreneurs should
explained under the below headings. Let us
also develop effective communication skills.
have a look at these below.
From active listening to discussions during
• New Job Creation meetings, being able to communicate
- There is a great share of jobs created by effectively can help you work with others to
Entrepreneurship companies all across build your business. Likewise, effective
the globe. They provide lots of entry- communication can also translate to how
level jobs that allow the unskilled you promote awareness of your brand. For
workers to get training & necessary instance, effective and clear messages
experience. through emails, content marketing, social
- In fact, a large portion of employment is media and other advertising methods can
created by small companies annually. positively influence how you reach your
That’s not all; they create and provide target market.
experience workers to the large scale
2. Critical thinking skills
companies.
• Community Development Critical thinking skills, like analytical skills,
- A community can work pretty brilliantly can be necessary for developing your overall
if the employment base gets divided into entrepreneurial skills. Being able to look at
lots of small entrepreneurial companies. problems, situations, projects and operations
It helps in making sanitation standards from different perspectives can help in
better and boosts the top level of home decision-making and problem solving.
ownership. Critical thinking skills can also be necessary
for strategic planning and evaluating the
approaches you're using to make changes or advocates and correctly practices
improve your business strategies as needed. entrepreneurship concepts in managing a
self-owned business venture, also known
as an enterprise. This operational definition
3. Teamwork and leadership skills highlights advocacy and correct practices.

Becoming a successful entrepreneur can also Emphasizing the concepts of advocacy and
mean taking on leadership roles and working correct practices, this operational definition
as part of a team. Being a business owner distinguishes an entrepreneur from the
means you will most likely act as both a owner of an ordinary small business.
supervisor and as part of a team, and you Another key feature is that an entrepreneur
will need to rely on effective leadership not only owns but also manages the small
skills to help motivate your team. entrepreneurial endeavor or small business.

4. Financial skills
Owning a business can also mean taking ENTREPRENEURSHIP
care of the financial aspects of your
- Entrepreneurship refers to the concept of
organization. You can develop financial
developing and managing a business
skills by learning from a financial planner,
venture in order to gain profit by taking
reading financial guidebooks and using
several risks in the corporate world.
financial software to help you organize and
Simply put, entrepreneurship is the
keep track of the financial processes in your
willingness to start a new business.
business.
Entrepreneurship has played a vital role
in the economic development of the
expanding global marketplace.
ENTREPRENEUR
The term "entrepreneur" is derived from
the French word "entreprendre," meaning ECONOMIC DEVELOPMENT
"to undertake," signaling the initiation of a
A scheme aimed at improving the living
new business venture. "Entrepreneurship"
standards of the nation’s citizenry. To
is related to this term and denotes a field of
achieve economic development goals,
practice, distinct from an entrepreneur
proper management of the following
who is an individual engaged in
elements is necessary:
entrepreneurship, similar to the
relationship between a manager and 1. human resource
management.
2. natural resources
3. capital formation
The American Heritage Desk Dictionary
4. technology
defines an entrepreneur as someone
organizing, operating, and assuming
business risks. However, this book defines
an entrepreneur as someone who
 The gut game also connotes courage.

ENTREPRENEUR Entrepreneurship vs. Livelihood

 The term “entrepreneur” originates from
the French word entreprende which
means “to undertake”.
 Entrepreneurs are innovative opportunity
seekers. They have endless curiosity to
discover new or different ideas and see
whether these ideas will work in the
marketplace.
Entrepreneur vs. Businessman

ENTREPRENEURIAL MIND FRAME,

HEART FLAME AND GUT GAME

ENTREPRENEURIAL MIND FRAME

- It allows the entrepreneur to see things
in a very positive and optimistic light in
the midst of crisis or difficult situations.

ENTREPRENEURIAL HEART FLAME

-Driven by passion, they are drawn to find
fulfillment in the act of and process of
discovery.
-The heart flame is also about emotional
intelligence, which often manifested in the
entrepreneur’s effort to nurture relationships
SALIENT FEATURES OF
with customers, employee, and suppliers.
ENTREPRENEURSHIP
NATURE AND CONCEPT
ENTREPRENEURIAL GUT GAME
1. It is an art of correct practices.
This refers to the ability of the entrepreneur 2. It is a wealth-creative venture.
to sense without using the five sense. This is 3. It provides valuable goods and
also known as intuition. services.
4. It entails opening and managing self- o The wealth created by the business must
owned enterprise. improve the life of the owner and
5. It is risk taking venture. cascade to the development of the local
economy and eventually of the whole
country.
SALIENT FEATURES OF
ENTREPRENEURSHIP 3. Providing values to customers
1. Art of correct practices a. Valuable goods and services highly
satisfy the target buyers in terms of
a. Entrepreneurship is an art and not a
quality and price.
science. It is not governed by fixed and
absolute rules. b. The entrepreneur defines value from the
perspective of the buyers and not only
b. It continuously grows, develops,
from his/her own.
improves, and expands; the change does
not stop. c. Value is subjective.
c. As an art, it is dynamic. It is closely 4. Risk-taking ventures
related to creativity which results to new
a. This feature highlights two important
ideas which are the backbone of
elements: (1) the concept of opening a
entrepreneurship.
self-owned enterprise, and (2) the
2. Wealth-creating venture concept of managing it.
- Entrepreneurship is operating within the
b. A business is considered self-owned
concept of wealth creation rather than
when the person managing its daily
profit generation.
activities is also its owner.
- According to Random House Webster's c. Intrapreneurship is a concept where a
Dictionary, wealth is defined as the business is being managed by others for
abundance of money, property, or the benefit of the owner.
possession.
d. In entrepreneurship, the owner of the
o An entrepreneur looks at his/her own business must also be the manager of the
daily operations of the entrepreneurial
business as a wealth- creating venture,
venture.
while an ordinary businessperson
regards his/her business basically as a 5. Opening and managing self-owned
source of income. business.

o Wealth is created when the benefits a. Risk cannot be detached from any
entrepreneurial venture and the only way
derived by the owner in providing goods
to remove it is to close the venture.
and services to the customers are
abundant enough to cover the costs b. The risk in entrepreneurship is called a
incurred by the business. business risk.
c. Wherever the business goes, there will • British economist
always be business risks.
• He included his book " The General
Theory of Employment, Interest,
Money" in his theory.

THEORIES OF ENTREPRENEURSHIP
About:
There are several theories of
entrepreneurship, HERE ARE SOME OF The theory highlights the crucial role of
THEM: government in entrepreneurial and economic
development, particularly during economic
1. Innovation Theory
downturns. It posits that the prospects for
JOSEPH SCHUMPETER entrepreneurial activities in the future may
be compromised unless the government
• an economist and political scientist. actively addresses short-term economic
• He wrote about it in his book “The disequilibrium.
Theory of Economic Development”.
About: HIGHLIGHTS OF KEYNESIAN
This theory regards economic development THEORY:
as the product of structural change. • During this period the economy was
Schumpeter believed that innovation is experiencing depression
the force that will propel revolutionary
change and cause creative destruction. If • The government plays the critical role.
there is no innovation, the status quo will
remain.
3. Alfred Marshall Theory
ALFRED MARSHALL
FORMS OF INNOVATION:
• an english economist
• NEW PRODUCT
• The theory introduce on his book
• NEW PRODUCTION METHOD
“Principles of economics"
• NEW MARKET
About:
• NEW SUPPLIES
Marshall strongly suggested that there are
• NEW INDUSTRY four factors in production of goods and
services in the economy. Without active
participation of organization, the other
2. Keynesian Theory factors of production will remain inactive in
their role for economic development.
JOHN MAYNARD KEYNES
FOUR FACTORS IN THE
PRODUCTION
• Land
• Labor
• Capital
• Organization
KALDOR'S TECHNOLOGICAL
4. Risk and Uncertainty Theory THEORY
FRANK HYNEMAN KNIGHT - Nicholas Kaldor developed
technological theory, which
• American economist
considers modern technology
• Conceptualized his theory using his as a crucial production factor.
book “Risk, Uncetainty and Profit”.
- Without the application of
modern technology in entrepreneurship,
economic development would be slow, and
About: growth could be compromised.
Knight viewed an entrepreneur as an agent - Entrepreneurs are expected to stay updated
of the production process where they with modern technology and find ways to
connect the producers and consumers. incorporate it into their entrepreneurial
• Knight considered uncertainty an activities.
important factor in the production of - Proper application of modern technology
goods and services. can lead to increased efficiency in the
• He believed that the entrepreneur must production of goods and services.
anticipate possible random events to
happen shouldering the risk at the same
time. LEIBENSTEIN'S GAP-FILLING
THEORY
- Primary role of
5. Other Theories on Entrepreneurship entrepreneurship is to fill the
WEBER'S SOCIOLOGICAL THEORY existing gap in any
economic activity.
- Max Weber emphasized the
importance of cultural - Entrepreneurship is
influences on entrepreneurship. responsible for recognizing trends in the
market.
- Entrepreneurs are expected to
align their activities with - Entrepreneur is expected to possess
customs, traditions, religious beliefs, and abilities to consume a different market.
morals.
- Entrepreneur must extend assistance to
entrepreneurial ventures experiencing
failures and deficiencies.

KIRZNER'S LEARNING-ALERTNESS
THEORY
- Israel Kirzner was the main
proponent of the theory.
- Spontaneous learning and
alertness are the two major
attributes of entrepreneurship.
- The entrepreneur must be
alert in recognizing entrepreneurial
opportunities and the ignorance of
consumers.
- The entrepreneur must immediately find an
appropriate remedy to correct errors or
wrong perceptions.